[Federal Register Volume 65, Number 157 (Monday, August 14, 2000)]
[Notices]
[Pages 49657-49660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20268]



  Federal Register / Vol. 65, No. 157 / Monday, August 14, 2000 / 
Notices  

[[Page 49657]]


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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--Core 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 published in the Federal Register on 
November 1, 1999 (64 FR 59076), and now revised and published elsewhere 
in this issue of the Federal Register, 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 $50 
million in appropriated funds under this NOFA and expects to issue 
approximately 45 to 65 awards. The Fund reserves the right to award in 
excess of $50 million in appropriated funds under this NOFA provided 
that the 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 Core Component of the 
CDFI Program. The Core Component provides direct assistance to CDFIs 
that serve their target markets through loans, investments and other 
activities. (These activities generally do not include the financing of 
other CDFIs. Elsewhere in this issue of the Federal Register, the Fund 
is publishing a separate NOFA for the fifth round of the Intermediary 
Component of the CDFI Program. The Intermediary Component provides 
financial assistance and technical assistance to CDFIs that provide 
financing primarily to other CDFIs and/or to support the formation of 
CDFIs.)

DATES: Applications may be submitted at any time, commencing August 14, 
2000. The deadline for receipt of an application is 6:00 p.m. EST on 
December 21, 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 the 
programmatic requirements for this program, contact the CDFI Program 
Manager. Should you wish to request an application package or have 
questions regarding application procedures, contact the Awards Manager. 
The CDFI 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, or by mail at CDFI Fund, 601 13th Street, 
NW, Suite 200 South, Washington, DC 20005. These are not toll free 
numbers. 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 
creating and retaining jobs, developing affordable housing, starting or 
expanding businesses, revitalizing neighborhoods, and empowering 
people. Access to financial services is critical to helping bring more 
Americans into the economic mainstream. 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 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 financial assistance, technical assistance, 
or both, for the purpose of promoting community development activities.
    The program connected with this NOFA constitutes the Core Component 
of the CDFI Program, involving direct financial assistance and 
technical assistance (TA) to CDFIs that serve their target markets 
through loans, investments and other activities. Under this Core 
Component NOFA, the Fund anticipates a maximum award amount of $2.5 
million per applicant. However, the Fund, in its sole discretion, 
reserves the right to award amounts in excess of the anticipated 
maximum award 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 
received awards in previous funding rounds, 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. Thus, for 
purposes of ascertaining whether an awardee under this NOFA is at or 
near the $5 million limit, the Fund will consider the amount of money 
obligated on behalf of said awardee pursuant to this NOFA and any other 
CDFI Program NOFAs published in 1998, 1999 and 2000; and
    (2) An applicant that is a previous awardee that has failed to meet 
its performance goals, financial soundness covenants (if applicable) 
and/or other requirements contained in the previously executed 
assistance agreement(s).
    This NOFA is not intended to support Intermediary CDFIs (those 
CDFIs that primarily fund other CDFIs). Elsewhere in this issue of the 
Federal Register, the Fund is publishing a separate NOFA for the fifth 
round of the Intermediary Component of the CDFI Program. The 
Intermediary Component NOFA is issued in recognition of the fact that 
Intermediary CDFIs may reach specialized niches in their financing of 
CDFIs that the Fund, by itself, may not be able to reach as effectively 
under the Core Component.
    In addition, the Fund anticipates promulgating a NOFA in 2001 
implementing a new Small and Emerging CDFI Assistance (SECA)

[[Page 49658]]

Component of the CDFI Program, designed to provide limited amounts of 
technical assistance and financial assistance to small and emerging 
CDFIs. The Fund encourages small and emerging CDFIs to consider 
applying through this upcoming program.
    This NOFA invites applications from eligible organizations for 
financial assistance, technical assistance, or both, for the purpose of 
promoting community development activities, including relatively new 
approaches to meeting the needs of underserved populations. These 
efforts may include designing and implementing innovative financial 
services for low- and moderate-income people who do not currently have 
a deposit account. Additional guidance from the Treasury Department's 
Office of Community Development Policy on the design of such accounts 
can be found on the Fund's website at http://www.treas.gov/cdfi.

II. Eligibility

    The Act and the interim rule, as revised, specify the eligibility 
requirements that each applicant must meet in order to be eligible to 
apply for assistance under this Core 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. In general, an 
applicant, individually and collectively with its affiliates, must have 
a primary mission of promoting community development. In addition, the 
applicant must: be an insured depository institution, a depository 
institution holding company or an insured credit union; or provide 
lending or equity investments; serve an investment area or a targeted 
population; provide development services; maintain community 
accountability; and be a non-government entity. If an applicant is a 
depository institution holding company or an affiliate of a depository 
institution holding company, the applicant individually and 
collectively with its affiliates must meet all of the aforementioned 
requirements.
    CDFI intermediaries are not eligible to apply for assistance under 
this Core Component NOFA. Instead, such institutions should refer to 
the Intermediary Component NOFA published elsewhere in this issue of 
the Federal Register.
    The application accompanying this NOFA specifies that, with some 
exceptions, applicants seeking to designate an Other Targeted 
Population must provide a brief analytical narrative with information 
demonstrating that the designated group of individuals in the 
applicant's service area lacks adequate access to loans, Equity 
Investments or Financial Services. For purposes of this NOFA, the Fund 
has determined that credible evidence exists on a national level 
demonstrating that Blacks or African Americans, Native Americans or 
American Indians, and Hispanics or Latinos lack adequate access to 
loans, Equity Investments or Financial Services. To the extent that an 
applicant's service area is national and it is serving such 
population(s), it is not required to provide the above-referenced 
analytical narrative describing its population's unmet loan, Equity 
Investment or Financial Service needs. However, the Fund believes it is 
important to ensure that organizations serving these Other Targeted 
Population(s) in regional or local service areas provide information 
from those service areas that is consistent with the national data. In 
addition, for the purpose of this NOFA, the Fund has determined that 
credible evidence exists that Alaska Natives residing in Alaska and 
Native Hawaiians or Other Pacific Islanders residing in Hawaii or other 
Pacific Islands lack adequate access to loans, Equity Investments or 
Financial Services. To the extent that an applicant is serving such 
population(s), it is not required to provide the analytical narrative 
describing these populations' unmet loan, Equity Investment or 
Financial Services needs.
    For purposes of this NOFA, the Fund will use the following 
definitions, set forth in the Office of Management and Budget (OMB) 
Notice, Revisions to the Standards for the Classification of Federal 
Data on Race and Ethnicity (October 30, 1997):
    (a) American Indian, Native American or Alaska Native: a person 
having origins in any of the original peoples of North and South 
America (including Central America) and who maintains tribal 
affiliation or community attachment;
    (b) Black or African American: a person having origins in any of 
the black racial groups of Africa (terms such as ``Haitian'' or 
``Negro'' can be used in addition to ``Black or African American'');
    (c) Hispanic or Latino: a person of Cuban, Mexican, Puerto Rican, 
South or Central American or other Spanish culture or origin, 
regardless of race (the term ``Spanish origin'' can be used in addition 
to ``Hispanic or Latino''); and
    (d) Native Hawaiian or Other Pacific Islander: a person having 
origins in any of the original peoples of Hawaii, Guam, Samoa or other 
Pacific Islands.
    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 December 31, 2002 (which period may be extended at 
the sole discretion of the Fund). In no event will the Fund disburse 
financial assistance to the applicant until the applicant is certified 
as a CDFI. Further details regarding eligibility and other program 
requirements are found in the application packet.

III. Types of Assistance

    An applicant may submit an application for financial assistance, 
TA, or both, under this Core Component NOFA. Financial assistance may 
be provided through an equity investment (including, in the case of 
certain insured credit unions, secondary capital accounts), a grant, 
loan, deposit, credit union shares, or any combination thereof. 
Applicants for financial assistance shall indicate the dollar amount, 
form, and terms and conditions of the assistance requested. Applicants 
for TA under this NOFA shall describe the type(s) of TA requested, when 
the TA will be acquired, the provider(s) of the TA, the cost of the TA, 
and a narrative explanation of how the TA will enhance their community 
development impact.

IV. Application Packet

    An applicant under this NOFA, whether applying for financial 
assistance, TA, or both, must submit the materials described in the 
application packet.

V. Matching Funds

    Applicants responding to this NOFA must obtain matching funds from 
sources other than the Federal government on the basis of not less than 
one dollar for each dollar of financial assistance provided by the Fund 
(matching funds are not required for TA). Matching funds must be at 
least comparable in form and value to the financial assistance provided 
by the Fund. Non-Federal funds obtained or legally committed on or 
after January 1, 1999, and before August 31, 2002, may be considered 
when determining matching funds availability. The Fund reserves the 
right to recapture and reprogram funds if an applicant fails to raise 
the required matching funds by August 31, 2002, or to grant an 
extension of such matching funds deadline for specific applicants 
selected for assistance, if the Fund deems it appropriate. Funds used 
by an applicant

[[Page 49659]]

as matching funds for a previous award under the CDFI Program or under 
another Federal grant or award program cannot be used to satisfy the 
matching funds requirement.

VI. Evaluation

    All applications will 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 the following criteria:
    (1) The applicant's ability to carry out its Comprehensive Business 
Plan and create community development impact (the Ability criterion);
    (2) The quality of the applicant's strategy for carrying out its 
Comprehensive Business Plan and for creating community development 
impact (the Strategy criterion); and
    (3) The extent to which an award to the applicant will maximize the 
effective use of the Fund's resources (the Effective Use criterion).
    In addition, the Fund will consider the institutional and 
geographic diversity of applicants in making its funding 
determinations.

Phase One

    In Phase One of the substantive review, each Fund reader(s) will 
evaluate applications using a 100-point scale, as follows:
    (a) Ability to Carry Out the Comprehensive Business Plan and Create 
Community Development Impact: 50-point maximum, with a minimum score of 
25 points required to be passed on for Phase Two review. The score of 
the Ability criterion is based on a composite assessment of an 
applicant's organizational strengths and weaknesses under the four sub-
criteria listed below. Such scoring reflects different weighting of the 
sub-criteria depending on whether an 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 August 14, 
1998). For purposes of this NOFA, start-up organizations will not be 
evaluated under the Ability criterion on their previous community 
development and financial track records. Instead, start-up 
organizations will be scored entirely on operational and management 
capacity.
    Under the Ability section of the application, the Fund will 
evaluate the following four sub-criteria:
    (1) Community development track record: 12-point maximum 
(established organizations only);
    (2) Operational capacity and risk mitigation strategies: 12-point 
maximum (established organizations), 20-point maximum (start-ups);
    (3) Financial track record and strength: 12-point maximum 
(established organizations only); and
    (4) Capacity, skills and experience of the management team: 14-
point maximum (established organizations), 30-point maximum (start-
ups).
    (b) Quality of the Strategy for Carrying out the Comprehensive 
Business Plan and for Creating Community Development Impact: 40-point 
maximum with a minimum of 20 points required to be passed on for Phase 
Two review. Under the Strategy section of the application, the Fund 
will evaluate the following four sub-criteria:
    (1) The applicant's understanding of its market: 10-point maximum;
    (2) Program design and implementation plan: 10-point maximum;
    (3) Projections for financial performance and raising needed 
resources: 10-point maximum; and
    (4) Projections for generating, measuring and evaluating community 
development impact: 10-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.
    (c) Maximizing Effective Use of Fund Resources: 10-point maximum, 
with no minimum score required to be passed on for Phase Two review. 
The Fund will consider:
    (1) The extent to which the applicant needs the Fund's assistance 
to carry out its Comprehensive Business Plan; and
    (2) The extent of economic distress in the applicant's target 
market.
    In addition, in the case of an applicant that has previously 
received assistance from the Fund under the CDFI Program, 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.

Phase Two

    Once the initial evaluation is completed, the Fund will determine 
which applications will receive further consideration for funding 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 site visit and/or telephone interview(s) conducted by a Fund 
reviewer for the purpose of obtaining clarifying or confirming 
information. At this point in the process, applicants will be required 
to submit additional information, as set forth in detail in the 
application packet. After conducting such site visits/telephone 
interview(s), the Fund reviewers will evaluate all applications in 
accordance with all of the evaluation criteria outlined above and 
prepare recommendation memoranda containing recommendations on the type 
and amount of assistance, if any, that should be provided to each 
applicant.
    A final review panel comprised of Fund staff will consider the Fund 
reviewers' recommendation memoranda and make final recommendations to 
the Fund's selecting official. In making its recommendations, the final 
review panel 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, reader(s) and reviewer(s) recommendations and the panel's 
recommendation, 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.
    The Fund reserves the right to change these evaluation procedures 
if the Fund deems it appropriate.

VII. Information Sessions

    In connection with this NOFA, the Fund is conducting Information 
Sessions to disseminate information to organizations contemplating 
applying to, and other organizations interested in learning about, the 
Core and Intermediary Components of the CDFI Program. Registration is 
required, as the Information Sessions will be held in secured federal 
facilities. The Fund will conduct 12 in-person Information

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Sessions, beginning September 20, 2000, as follows:

Los Angeles, CA, September 20, 2000;
San Francisco, CA, September 22, 2000;
Chicago, IL, September 25, 2000;
Miami, FL, September 26, 2000;
Salt Lake City, UT, September 29, 2000;
Kansas City, MO, October 2, 2000;
Memphis, TN, October 3, 2000;
Charlotte, NC, October 4, 2000;
Minneapolis, MN, October 4, 2000;
Boston, MA, October 5, 2000;
San Antonio, TX, October 5, 2000; and
New York, NY, October 6, 2000.

    In addition to the in-person sessions listed above, the Fund will 
broadcast an Information Session using interactive video-
teleconferencing technology on October 12, 2000, 1:00 p.m. to 4:00 p.m. 
EST. Registration is required, as these sessions will be held in 
secured federal facilities. This Information Session will be produced 
in Washington, DC, and will be downlinked via satellite 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, 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.
    To register online for an Information Session, please visit the 
Fund's website at www.treas.gov/cdfi. If you do not have Internet 
access, you may register by calling the Fund at (202) 622-8662.

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

    Dated: August 7, 2000.
Maurice A. Jones,
Deputy Director for Policy and Programs, Community Development 
Financial Institutions Fund.
[FR Doc. 00-20268 Filed 8-11-00; 8:45 am]
BILLING CODE 4810-70-P