[Federal Register Volume 65, Number 2 (Tuesday, January 4, 2000)]
[Notices]
[Pages 342-344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33727]



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Part III





Department of the Treasury





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Community Development Financial Institutions Fund



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Notice of Funds Availability (NOFA) Inviting Applications for the 
Community Development Financial Institutions Program--Technical 
Assistance (TA) Component; Notice

  Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / 
Notices  

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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funds Availability (NOFA) Inviting Applications for the 
Community Development Financial Institutions Program--Technical 
Assistance (TA) Component

AGENCY: Community Development Financial Institutions Fund, Department 
of the Treasury.

ACTION: Notice of Funds Availability (NOFA) inviting applications.

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SUMMARY: The Community Development Banking and Financial Institutions 
Act of 1994 (12 U.S.C. 4701 et seq.) (the ``Act'') authorizes the 
Community Development Financial Institutions Fund (the ``Fund'') of the 
U.S. Department of the Treasury to select and provide financial and 
technical assistance to eligible applicants under the Community 
Development Financial Institutions (``CDFI'') Program. The interim rule 
(12 CFR part 1805), most recently revised and published in the Federal 
Register on November 1, 1999, provides guidance on the contents of the 
necessary application materials, evaluation criteria, and other program 
requirements. More detailed application content requirements are found 
in the application packet. While the Fund encourages applicants to 
review the interim rule, all of the application content requirements 
and the evaluation criteria contained in the interim rule are also 
contained in the application packet. Subject to funding availability, 
the Fund intends to award up to $4.5 million in appropriated funds 
under this NOFA and expects to issue approximately 80 to 90 awards. The 
Fund reserves the right to award in excess of $4.5 million in 
appropriated funds under this NOFA provided that funds are available 
and the Fund deems it appropriate. The Fund reserves the right to fund, 
in whole or in part, any, all, or none of the applications submitted in 
response to this NOFA.
    This NOFA is issued in connection with the TA Component of the CDFI 
Program. The TA Component provides direct assistance to CDFIs, and in 
some circumstances, other entities that propose to become CDFIs, to 
enhance their capacity to serve their Target Markets.

DATES: Applications may be submitted at any time following January 4, 
2000. Applications will be received and reviewed on a rolling basis, as 
described below. The final deadline for receipt of an application, 
however, is 6 p.m. EDT on May 31, 2000. Applications received in the 
offices of the Fund after that date and time will be rejected and 
returned to the sender.

ADDRESSES: Applications shall be sent to: Awards Manager, Community 
Development Financial Institutions Fund, U.S. Department of the 
Treasury, 601 13th Street, NW, Suite 200 South, Washington, DC 20005. 
Applications sent electronically or by facsimile will not be accepted.

FOR FURTHER INFORMATION CONTACT: If you have any questions about 
programmatic requirements, contact the TA Program Manager. Should you 
wish to request an application package or have questions regarding 
application procedures, contact the Awards Manager. The TA Program 
Manager and the Awards Manager may be reached by e-mail at 
[email protected], by telephone at (202) 622-8662, by facsimile 
at (202) 622-7754 (these are not toll free numbers), or by mail at CDFI 
Fund, 601 13th Street, NW, Suite 200 South, Washington, DC 20005. Allow 
at least one to two weeks from the date the Fund receives a request for 
receipt of the application package. Applications and other information 
regarding the Fund and its programs may be downloaded from the Fund's 
web site at http://www.treas.gov/cdfi.

SUPPLEMENTARY INFORMATION:

I. Background

    Credit and investment capital are essential ingredients for 
developing affordable housing, starting or expanding businesses, 
creating and retaining jobs from these businesses, revitalizing 
neighborhoods, and empowering people. As a key urban and rural policy 
initiative, the CDFI Program funds and supports a national network of 
financial institutions that is specifically dedicated to funding and 
supporting community development. This strategy builds strong 
institutions that make loans and investments and provide services to 
economically distressed investment areas and economically disadvantaged 
targeted populations. The Act authorizes the Fund to select entities to 
receive financial and technical assistance. This NOFA invites 
applications from eligible organizations for technical assistance for 
the purpose of promoting community development activities.
    The program connected with this NOFA constitutes the TA Component 
of the CDFI Program, involving direct technical assistance (TA) to 
CDFIs that provide loans, investments and other activities to their 
target markets. Under this TA Component NOFA, the Fund anticipates 
making a maximum award amount of $50,000 to any one applicant. However, 
the Fund, in its sole discretion, reserves the right to award amounts 
in excess of the anticipated maximum amount if the Fund deems it 
appropriate.
    Previous awardees under the CDFI Program are eligible to apply 
under this NOFA, but such applicants must be aware that success in a 
previous round should not be considered indicative of success under 
this NOFA. In addition, organizations will not be penalized for having 
previously received awards from the Fund, except to the extent that:
    (1) The Fund is generally prohibited from obligating more than $5 
million in assistance, in the aggregate, to any one organization and 
its subsidiaries and affiliates during any three year period; and
    (2) The Fund will not make an award to a previous awardee that has 
failed to meet its performance goals, financial soundness covenants (if 
applicable), and/or other certain requirements contained in the 
previously executed assistance agreement(s).

II. Eligibility

    The Act and the interim rule specify the eligibility requirements 
that each applicant must meet in order to be eligible to apply for 
assistance under this TA Component NOFA. At the time an entity submits 
its application, the entity must be a duly organized and validly 
existing legal entity under the laws of the jurisdiction in which it is 
incorporated or otherwise established. An entity must meet, or propose 
to meet, CDFI eligibility requirements.
    If the applicant does not meet the CDFI eligibility requirements, 
the application shall include a realistic plan for the applicant to 
meet the criteria by September 30, 2002 (the deadline may be extended 
at the sole discretion of the Fund). In no event will the Fund disburse 
technical assistance to the applicant until the applicant can be 
certified as a CDFI, except in such circumstances when, in the judgment 
of the Fund, the use of technical assistance will help the applicant 
meet a certification requirement(s). Further details regarding 
eligibility and other program requirements are found in the application 
packet.
    In general, a CDFI and its affiliates must collectively have a 
primary mission of promoting community development. In addition, the 
applicant organization must: provide loans or equity investments, serve 
an investment area or a targeted population, provide development 
services, maintain community accountability, and be a

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non-governmental entity. If an applicant is a depository institution 
holding company or an affiliate of a depository institution holding 
company, the applicant and its affiliates must collectively meet all of 
the aforementioned requirements. If an applicant is a subsidiary of an 
insured depository institution, the insured depository institution and 
all of its subsidiaries must collectively meet all of the 
aforementioned requirements.

III. Types of Assistance

    An applicant under this NOFA may only submit one application for a 
TA grant.

IV. Application Packet

    An applicant under this NOFA must submit the materials described in 
the application packet.

V. Evaluation

    With the exception of applications received by the Fund during 
January 2000, applications received under this NOFA will be reviewed 
monthly on a rolling basis. All applications received by the Fund from 
the date of this NOFA through 6 p.m. EST, February 29, 2000, will be 
reviewed together; provided that funds are available, applications 
received after 6 p.m. EST, February 29, 2000, through 6 p.m. EST, March 
31, 2000 will be reviewed together; provided that funds are available, 
applications received after 6 p.m. EST, March 31, 2000, through 6 p.m. 
EDT, April 28, 2000, will be reviewed together; and, provided that 
funds are available, applications received after 6 p.m. EDT, April 28, 
2000, through 6 p.m. EDT, May 31, 2000, will be reviewed together. 
Applications received in the offices of the Fund after 6 p.m. EDT, May 
31, 2000, will be rejected and returned to the sender.
    An entity may submit only one application under this NOFA. If a 
subsequent application is received, the Fund will reject it and return 
it to the sender. Potential applicants should note that, as the Fund 
intends to review and select award applications on a rolling basis, it 
is possible that funding decisions made early during the rolling review 
period may obligate all of the funds made available under this NOFA. 
The amount available for awards will decrease each month as the Fund 
reviews applications and makes award selections. After each submission 
date, applications received will first be reviewed for eligibility and 
completeness. If determined to be eligible and complete, applications 
will be evaluated by the Fund on a competitive basis in accordance with 
the criteria described in this NOFA. In conducting its substantive 
review, the Fund will evaluate applications according to the criteria 
in, and use the procedure described in, this NOFA.

Phase One

    In Phase One of the substantive review, each Fund reader will 
evaluate applications using a 100-point scale, using the following 
criteria and allocation of points:
    (a) Comprehensive Business Plan, 60 points, with a minimum score of 
30 points required to advance to Phase Two review. The score for the 
Comprehensive Business Plan is based on a composite assessment of an 
applicant's strength and weaknesses under six sub-criteria. Such 
scoring reflects different weighting of the sub-criteria depending on 
whether the applicant is a start-up organization or an established 
organization. The Fund defines a start-up organization as an entity 
that has been in operation two years or less, as of the date of this 
NOFA (meaning, for purposes of this NOFA, having incurred initial 
operating expenses on or after January 4, 1998).
    The six sub-criteria are:
    (1) Community development track record (established organizations 
only): 10 point maximum;
    (2) Financial and operational capacity: 10 point maximum 
(established organizations); 4 point maximum (start-ups);
    (3) Capacity, skills and experience of the management team: 14 
point maximum (established organizations); and 30 point maximum (start-
ups);
    (4) Market analysis, program design and implementation plan: 12 
point maximum;
    (5) Projected activities and community development impact: 10 point 
maximum; and
    (6) Funding sources: 4 point maximum.
    In the case of an applicant that has previously received assistance 
from the Fund under the CDFI Program, the Fund will consider whether 
the applicant will expand its operations into a new target market, 
offer more products or services, and/or increase the volume of its 
activities. The Fund will consider the applicant's level of success in 
meeting its performance goals, financial soundness covenants (if 
applicable), and other requirements contained in the assistance 
agreement(s) with the Fund, and the benefits that will be created with 
new Fund assistance over and above benefits created by previous Fund 
assistance.
    (b) Technical Assistance Proposal (TAP), 40 point maximum, with a 
20 point minimum to advance to Phase Two review. The TAP provides the 
applicant with an opportunity to assess and address the organizational 
improvements needed to achieve the objectives of its comprehensive 
business plan. Such assessment is accompanied by a budget and a TA 
award request. In the TAP, the applicant should describe how improving 
its organization will translate to community development impact within 
its Target Market. The budget and accompanying narrative will be 
evaluated for the eligibility of proposed uses of the TA award. 
Eligible types of TA award uses include, but are not limited to, the 
following: (1) Consulting services; (2) technology items; and (3) 
training for staff or management. The Fund will not consider requests 
under this NOFA for expenses that, in the interpretation of the Fund, 
are deemed to be ongoing operating expenses rather than non-recurring 
expenses (for example, the cost of designing marketing materials for a 
loan product through a consulting contract is a non-recurring expense, 
but the cost of producing or distributing printed marketing materials 
is an ongoing expense; salary expenses for staff are ongoing, but the 
cost of a consulting contract for a discrete scope of services is a 
non-recurring expense). Further, a TA award may not be used to assist 
an awardee to prepare an application for funding to the Fund or to any 
other source.

Phase Two

    Once the initial evaluation is complete, the Fund will determine 
which applications will receive further consideration for funding. The 
Fund will make that determination based on application scores 
(standardized if deemed appropriate), recommendations of individuals 
performing initial reviews, and the amount of funds available. 
Applicants that advance to Phase Two may receive a telephone 
interview(s) conducted by a Fund reviewer for the purpose of obtaining 
clarifying or confirming information. At this point in the process, 
applicants may be required to submit additional information about their 
application in order to assist the Fund with its final evaluation. 
After conducting such telephone interview(s), the Fund reviewer will 
evaluate applications in accordance with the criteria outlined above 
and will prepare a recommendation memorandum regarding the uses and 
amount of assistance that should be provided to the applicant.
    A panel comprised of Fund staff will review the reviewer's 
recommendation

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memorandum and make a final recommendation to the Fund's selecting 
official, who will make the final funding decision. In making the 
funding decision, the Fund's selecting official also may consider the 
institutional diversity and geographic diversity of applicants (e.g., 
recommending a CDFI from a State in which the Fund has not previously 
made an award over a CDFI in a State in which the Fund has already made 
numerous awards).
    The Fund's selecting official will make a final funding 
determination based on the applicant's file, including, without 
limitation, recommendations of the Phase One reader(s), the Phase Two 
reviewer, and the panel, and the amount of funds available. In the case 
of regulated CDFIs, the selecting official will also take into 
consideration the views of the appropriate Federal banking agencies. In 
the case of recommendations for TA awards over $50,000, the Fund will 
seek to ensure that there is a likelihood of significant community 
development impact resulting from such awards.
    The Fund reserves the right to change these evaluation procedures 
if the Fund deems it appropriate.

VI. Information Sessions

    In connection with this NOFA, the Fund will conduct Information 
Sessions to disseminate information to organizations contemplating 
applying for, and other organizations interested in learning about, the 
TA Component of the CDFI Program. Registration is required and 
registration in advance is preferred. The Fund will conduct six in-
person Information Sessions, beginning January 26, 2000, as follows:

Albuquerque, NM, Monday, February 14, 2000;
Des Moines, IA, Monday, February 7, 2000;
Laramie, WY, Tuesday, February 1, 2000;
Nashville, TN, Wednesday, February 9, 2000;
Seattle, WA, Friday, February 11, 2000; and
Washington, DC, Wednesday, January 26, 2000.

    In addition to the in-person sessions listed above, the Fund will 
broadcast an Information Session using interactive video-
teleconferencing technology on Friday, February 4, 2000 from 1 p.m. to 
4 p.m. EST. Registration is required and registration in advance is 
preferred. This Information Session will be produced in Washington, DC, 
and will be downlinked via satellite or pic-tel to the local Department 
of Housing and Urban Development (HUD) offices located in the following 
81 cities: Albany, NY; Albuquerque, NM; Anchorage, AK; Atlanta, GA; 
Baltimore, MD; Bangor, ME; Birmingham, AL; Boise, ID; Boston, MA; 
Buffalo, NY; Burlington, VT; Camden, NJ; Casper, WY; Charleston, WV; 
Chicago, IL; Cincinnati, OH; Cleveland, OH; Columbia, SC; Columbus, OH; 
Dallas, TX; Denver, CO; Des Moines, IA; Detroit, MI; Fargo, ND; Flint, 
MI; Fort Worth, TX; Fresno, CA; Grand Rapids, MI; Greensboro, NC; 
Hartford, CT; Helena, MT; Honolulu, HI; Houston, TX; Indianapolis, IN; 
Jackson, MS; Jacksonville, FL; Kansas City, KS; Knoxville, TN; Las 
Vegas, NV; Little Rock, AR; Los Angeles, CA; Louisville, KY; Lubbock, 
TX; Manchester, NH; Memphis, TN; Miami, FL; Milwaukee, WI; Minneapolis/
St. Paul, MN; Nashville, TN; New Orleans, LA; New York, NY; Newark, NJ; 
Oklahoma City, OK; Omaha, NE; Orlando, FL; Philadelphia, PA; Phoenix, 
AZ; Pittsburgh, PA; Portland, OR; Providence, RI; Reno, NV; Richmond, 
VA; Sacramento, CA; St. Louis, MO; Salt Lake City, UT; San Antonio, TX; 
San Diego, CA; San Francisco, CA; San Juan, PR; Santa Ana, CA; Seattle, 
WA; Shreveport, LA; Sioux Falls, SD; Spokane, WA; Springfield, IL; 
Syracuse, NY; Tampa, FL; Tucson, AZ; Tulsa, OK; Washington, DC; and 
Wilmington, DE.
    For more information, or to register for an Information Session, 
please contact the Fund at (202) 622-8662 or visit the Fund's web site 
at www.treas.gov/cdfi.

    Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, and 
4717; 12 CFR part 1805.

    Dated: December 22, 1999.
Maurice A. Jones,
Deputy Director for Policy and Programs, Community Development 
Financial Institutions Fund.
[FR Doc. 99-33727 Filed 12-28-99; 8:45 am]
BILLING CODE 4810-70-P