[Federal Register Volume 66, Number 185 (Monday, September 24, 2001)]
[Notices]
[Pages 48934-48939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23672]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funds Availability (NOFA) Inviting Applications for the 
Bank Enterprise Award Program

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

ACTION: Notice of funds availability (NOFA) inviting applications for 
the FY 2002 funding round of the Bank Enterprise Award Program.

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SUMMARY: The Community Development Banking and Financial Institutions 
Act of 1994 (12 U.S.C. 4701 et seq.) authorizes the Community 
Development Financial Institutions Fund (hereafter referred to as ``the 
Fund'') to provide incentives, through the Bank Enterprise Award 
(``BEA'') Program, to Insured Depository Institutions for the purposes 
of promoting investments in or other support to Community Development 
Financial Institutions (``CDFIs'') and facilitating increased lending 
and provision of financial and other services in economically 
distressed communities. Insured depository institutions and CDFIs are 
defined terms in 12 CFR part 1805 and part 1806, the regulations that 
govern the CDFI Program (the ``CDFI Program Regulations'') and the BEA 
Program (the ``BEA Program Regulations''), respectively.
    This NOFA is issued in connection with the Fiscal Year 2002 funding 
round of the BEA Program. Subject to funding availability, the Fund 
expects that it may award approximately $16.5 million in appropriated 
funds under this BEA Program NOFA. The Fund reserves the right to award 
in excess of $16.5 million in appropriated funds under this NOFA 
provided that the funds are available and the Fund deems it 
appropriate. Under this NOFA, the Fund anticipates a maximum award 
amount of $2.0 million per applicant. 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 and the right to award amounts in 
excess of the anticipated maximum award amount, if the Fund deems it 
appropriate.
    Published elsewhere in this issue of the Federal Register are (i) 
The Fund's NOFA for the combined Core and Intermediary Components of 
the CDFI Program, through which CDFIs may apply directly to the Fund 
for financial assistance and/or technical assistance awards, (ii) the 
Fund's NOFA for the Small and Emerging CDFI Assistance (``SECA'') 
Component of the CDFI Program, through which CDFIs may apply directly 
to the Fund for technical assistance awards and Small and Emerging 
CDFIs, as defined therein, may apply directly to the Fund for financial 
assistance and technical assistance awards, and (iii) the Fund's NOFA 
for the Native American CDFI Technical Assistance (``NACTA'') Component 
of the CDFI Program, through which organizations that serve or wish to 
serve Native American communities through the provision of loans, 
investments and financial services, may apply directly to the Fund for 
TA awards. In addition, the Fund expects to issue, at a later date, a 
Notice of Allocation Availability (``NOAA'') for the New Markets Tax 
Credit (``NMTC'') Program, inviting applications from eligible entities 
for allocations of tax credits. As set forth in the Fund's Guidance, 
published in the Federal Register on May 1, 2001 at 66 FR 21846, the 
NMTC Program will provide an incentive to investors in the form of a 
tax credit over seven years, which is expected to stimulate investment 
in new private capital that, in turn, will facilitate economic and 
community development in distressed communities.

DATES: The BEA Program has a two-part application. For the FY 2002 
funding round, Part One (the ``Initial Application'') may be submitted 
at any time, commencing September 24, 2001. The deadline for the 
Initial Application is 5:00 p.m. EST on November 13, 2001. Initial 
Applications received in the specific Bureau of the Public Debt--
Franchise Services (BPD) office designated below after that date and 
time will be rejected and returned to the sender, except as follows. An 
Initial Application mailed via United States Postal Service will be 
considered as having met the deadline if it is clearly postmarked on or 
before midnight November 12, 2001. An Initial Application sent by 
overnight/express delivery will be considered as having met the 
deadline if it is placed in transit with an overnight/express delivery 
service by no later than November 12, 2001. An Initial Application that 
is hand-carried will be considered as having met the deadline if it is 
received in the specific BPD office designated below by 5:00 pm EST on 
November 13, 2001.
    The deadline for Part Two of the Application (the ``Final Report'') 
is 5:00 p.m. EST on August 1, 2002. Final Reports received in the 
specific BPD office designated below after that date and time will be 
rejected and returned to the sender, except as follows. A Final Report 
mailed via United States Postal Service will be considered as having 
met the deadline if it is clearly postmarked on or before midnight July 
31, 2002. A Final Report sent by overnight/express delivery will be 
considered as having met the deadline if it is placed in transit with 
an overnight/express delivery service by no later than July 31, 2002. A 
Final Report that is hand-carried will be considered as having met the 
deadline if it is received in the specific BPD office designated below 
by 5:00 pm EST on August 1, 2002.
    In each case, it is advisable to obtain documentation from the 
carrier showing the date and time the Initial Application or the Final 
Report was placed in transit or hand-delivered, as the case may be. A 
single, clear date and time stamp will help in determining whether the 
delivery of an Initial Application or a Final Report has met the 
applicable deadline requirements set forth above.
    Initial Applications or Final Reports sent by facsimile will not be 
accepted. Final Reports (but not Initial Applications) may be submitted

[[Page 48935]]

electronically through the Fund's website at www.treas.gov/cdfi.
    Any entity seeking certification as a CDFI (as described in 12 CFR 
1805.200) for the purpose of the BEA Program (either as an Applicant or 
a CDFI Partner) is strongly encouraged to submit the Application Form 
for Certification (the contents of which are described in 12 CFR 
1805.201(b)(1) through (7)), by Tuesday, November 20, 2001. If an 
entity fails to submit such application by this deadline, the Fund may 
not have sufficient time to timely complete a certification review for 
the purpose of the current funding round of the BEA Program. With 
respect to all requests for certification, the Fund reserves the right 
to request clarifying or technical information after reviewing 
materials submitted as described in 12 CFR 1805.201(b)(1) through (7). 
If the entity seeking certification does not respond to such requests 
in a timely manner, the Fund may not have sufficient time to complete a 
certification review for the purposes of the current funding round of 
the BEA Program.

ADDRESSES: Both the Initial Application and the Final Report shall be 
sent to: CDFI Fund Awards Manager, Bureau of Public Debt--Franchising, 
200 Third Street, Room 211, Parkersburg, WV 26101. Initial Applications 
and Final Reports will not be accepted in the Fund's offices.

FOR FURTHER INFORMATION CONTACT: If you have any questions about the 
programmatic requirements of the BEA Program, contact the BEA Program 
Manager. Should you wish to request an application package or have 
questions regarding application procedures, contact the Awards Manager. 
The BEA 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

    As part of a national strategy to facilitate revitalization and 
increase the availability of credit, investment capital and financial 
services in distressed communities, the Community Development Banking 
and Financial Institutions Act of 1994 (``Act'') authorizes a portion 
of funds appropriated to the Fund to be made available for distribution 
through the BEA Program. The BEA Program is largely based on the Bank 
Enterprise Act of 1991, although Congress significantly amended the 
program to facilitate greater coordination with other activities of the 
Fund. The BEA Program and the CDFI Program are complementary 
initiatives that support a wide range of community development 
activities and facilitate partnerships between traditional lenders and 
CDFIs. This NOFA invites applications from Insured Depository 
Institutions for the purpose of promoting community development 
activities and revitalization.

II. Eligibility

    The Act specifies that eligible Applicants for the BEA Program must 
be Insured Depository Institutions, as defined in 12 U.S.C. 1813(c)(2). 
An Applicant must be FDIC-insured by the deadline for submission of the 
Initial Application (i.e., November 13, 2001) to be eligible for 
consideration for a BEA Program award under this NOFA.

III. Designation of Distressed Community

    In accordance with 12 CFR 1806.200(d), in the case of Applicants 
carrying out Qualified Activities requiring the designation of a 
Distressed Community (as said terms are defined in 12 CFR 1806.103(r)), 
the Fund will provide Applicants with data and other information to 
help identify areas that are eligible to be designated as Distressed 
Communities. Specifically, the Fund will provide such information 
through the CDFI Fund Help Desk website (the ``Help Desk''). The Help 
Desk is found at www.treas.gov/cdfi. The Fund requires all Applicants 
to use the Help Desk to produce the Distressed Community worksheets and 
corresponding maps. The Help Desk provides step-by-step instructions on 
how to designate a Distressed Community and allows an Applicant to 
create and print instantly a Distressed Community designation 
worksheet(s) and corresponding map(s). For purposes of determining 
whether an Applicant is serving an eligible Distressed Community, the 
Fund will continue to use 1990 Census data, as 2000 Census data will 
not be available in sufficient detail for use under this NOFA.

IV. Designation Factors

    The BEA Program Regulations describe the Fund's processes for 
rating and selecting Applicants to receive assistance and for 
determining award amounts. Award amounts will be calculated by the Fund 
based on increases in Qualified Activities that occur during a 6-month 
Assessment Period in excess of activities that occurred during a 6-
month Baseline Period. In general, award amount for Applicants making 
Equity Investments in CDFIs will be equal to 15 percent of the increase 
in such activities. An Applicant may choose to accept less than the 
maximum amount of 15 percent (but no less that 12 percent) in order to 
increase the ranking of its Application within the Equity Investment 
category. Award amounts for CDFI Applicants carrying out CDFI Support 
Activities will be equal to 33 percent of the increase in such 
activities. Award amounts for non-CDFI Applicants for carrying out CDFI 
Support Activities will be equal to 11 percent of the increase in such 
activities.
    For Applicants pursuing Development and Service Activities, a 
multiple step procedure is outlined in the BEA Program Regulations that 
will be used to calculate the estimated award amounts. In general, if 
an Applicant is a CDFI, such estimated award amount will be equal to 15 
percent of the total score calculated in the multiple step procedure. 
If an Applicant is not a CDFI, such estimated award amount will be 
equal to 5 percent of the total score calculated in the multiple step 
procedure.
    If the amount of funds available during a funding round is 
insufficient for all estimated award amounts, awardees will be selected 
based on the process described at 12 CFR 1806.204. This process gives 
priority to Applicants in the following order: (1) Equity Investments 
in CDFIs serving Distressed Communities; (2) Equity Investments in 
CDFIs not serving Distressed Communities; (3) CDFI Support Activities; 
and (4) Development and Service Activities (as defined in 12 CFR 
1806.103). Beginning with this NOFA, in addition to ranking Applicants 
within the Development and Service Activity category by the ratio of 
the total score to the asset size of the Applicant, the Fund will give 
Applicants that are certified CDFIs first priority within the 
Development and Service Activity category.
    The Fund, in its sole discretion: (1) May adjust the estimated 
award amount that an Applicant may receive; (2) may establish a maximum 
amount that may be awarded to an Applicant; and (3) reserves the right 
to limit the amount of

[[Page 48936]]

an award to any Applicant if the Fund deems it appropriate.

V. Baseline Period and Assessment Period Dates

    As part of its Initial Application, an Applicant shall report the 
Qualified Activities that it actually carried out during the 6-month 
Baseline Period beginning January 1, 2001 and ending June 30, 2001. An 
Applicant shall also project the Qualified Activities that it expects 
to carry out during the 6-month Assessment Period beginning January 1, 
2002 and ending June 30, 2002. Applicants participating in the BEA 
Program must submit to the Fund a Final Report (Part II of the 
Application) of Qualified Activities actually carried out during the 
Assessment Period. The Fund will evaluate the performance of Applicants 
in carrying out projected activities to determine actual award amounts. 
The Fund may request clarifying or technical information after 
receiving an Applicant's Final Report.

VI. Compliance With Other CDFI Fund Awards

    In the event that an FY 2002 BEA Program Awardee or its subsidiary 
or affiliate is not in compliance with the terms and conditions of any 
other award under any component of the CDFI Program, the Fund may, in 
its sole discretion, withhold disbursement (either initial or 
subsequent) on the FY 2002 BEA Program award. Moreover, noncompliance 
with any other award shall be considered an event of default under the 
FY 2002 BEA Program award. This policy will take effect with regard to 
compliance issues arising in calendar year 2002.

VII. Certification Status

    For purposes of determining BEA Program awards, the BEA Program 
Regulations define a CDFI as `` an entity whose certification under 
Sec. 1805.201 of this chapter is in effect as of the end of the 
applicable Assessment Period * * *'' 12 CFR 1806.103(m). Accordingly, 
in order for a BEA Program Applicant to receive credit for CDFI Related 
Activities, the CDFI partner(s) that receives financial or technical 
assistance must be certified as a CDFI by the Fund as of the end of the 
Assessment Period for the particular BEA Program funding round. 
Moreover, the CDFI partner's certification must not have lapsed (i.e., 
expired without the prior submission to the Fund of a recertification 
Application). If a BEA Program Applicant provides assistance to an 
organization that is not certified as a CDFI as of the end of the 
Assessment Period, then the transaction shall not be considered 
assistance to a CDFI and shall not be a Qualified Activity. Such 
activity would not be eligible to count toward a BEA Program award.
    If the BEA Program Applicant is considering providing assistance to 
an organization that the Fund has not yet certified, the activity will 
qualify--provided the organization is certified by the Fund by the end 
of the Assessment Period. However, Applicants should be advised that 
the Fund cannot guarantee certification before the end of the 
Assessment Period of those organizations that have submitted 
certification Applications after the Initial Application Due date 
(November 13, 2001 for the FY 2002 funding round).
    If the CDFI partner submits its recertification Application by no 
later than the certification expiration date evidencing that it can be 
recertified, then the Fund will deem the CDFI's certification to be 
continued on an interim basis until the Fund makes its final 
determination. In the interim, any assistance by a BEA Program 
Applicant to a CDFI that submitted a recertification Application by its 
expiration date would be considered a CDFI Qualified Activity (provided 
the activity meets all other applicable requirements).
    If an Applicant is itself seeking certification as a CDFI, then it 
must be certified as a CDFI by the Fund as of the end of the Assessment 
Period for the particular BEA Program funding round in order to be 
eligible for the higher award percentage and ranking priority afforded 
CDFIs. If an Applicant is not certified as a CDFI by the end of the 
applicable Assessment Period, then it shall not be treated as a CDFI 
for purposes of determining award amounts. In addition, if the 
Applicant's certification is due to expire on or before the end of the 
Assessment Period (June 30, 2002 for the FY 2002 fund round of the BEA 
Program Round)--and allows its certification to lapse--the Applicant 
will not be treated as a CDFI for purposes of determining award amounts 
and ranking. If the CDFI Applicant submits a recertification 
Application evidencing that it can be recertified--by no later than the 
certification expiration date--then the Fund will deem the CDFI 
Applicant's certification to be continued on an interim basis until the 
Fund makes its final determination. A CDFI that submitted a 
recertification Application by its expiration date would be treated as 
a CDFI for purposes of calculating an award amounts and ranking.
    Information on the certification status and certification 
expiration date of each CDFI can be found on the Fund's list of 
certified CDFIs, which may be obtained on the Fund's website: 
www.treas.gov/cdfi.

VIII. Loan Participations

    On January 31, 2001, the Fund issued policy guidance clarifying the 
types of transactions it will consider to be eligible Participation 
Loans for the purpose of calculating BEA Program awards. Specifically, 
the guidance stated that a Participation Loan may qualify as either a 
CDFI Support Activity or a Development Activity like any other loan 
under the BEA Program. In order for a participation loan to be 
considered a CDFI Support Activity, the borrower must be a CDFI, and 
the monies drawn must be used to support the CDFI's activities. In 
order for a participation loan to be considered a Development Activity, 
the borrower or activity financed must be located within or integrally 
involved in a designated Distressed Community.
    The January 31, 2001 guidance further clarified that, as with other 
loans, for a participation loan to be considered a Qualified Activity 
under the BEA Program, the loan must be closed and an initial 
disbursement made during the applicable Assessment Period. While a 
participation agreement among lenders may be executed prior to an 
applicable Assessment Period, a BEA Program Applicant shall receive an 
award only for a loan funding a particular Qualified Activity that is 
closed during the Assessment Period. In the case of a participation 
loan that involves one of the lenders serving as a ``lead lender'' or 
``agent'' for this group, the disbursement of funds to the ``lead 
lender'' or ``agent'' to fund loans to third parties does not 
necessarily constitute a loan by one or more participating lenders to 
the lead lender or agent. In particular, if such lead lender or agent 
is a CDFI, the above-described disbursement may not constitute a loan 
to a CDFI for purposes of calculating a BEA Program Award.

IX. Lines of Credit

    Given current demand for the BEA Program's resources, concerns have 
been raised about the current method of calculating BEA Program awards 
applicable to lines of credit (i.e., based upon the maximum amount of 
the line). Specifically, with large lines of credit (e.g., $10 million 
and above), the borrower often does not fully draw down the entire line 
of credit within the three-year period. A BEA Program award based on 
the full amount of the line may require the Fund to obligate more funds 
than the Awardee will disburse.

[[Page 48937]]

    As provided in the BEA Program Regulations at 12 CFR 1806.205(d), 
the Fund has the discretion to limit the amount of an award for any 
reason. Given the strong demand for BEA Program resources, beginning 
with the FY 2002 round of the BEA Program, the Fund will limit the 
amount of resources it will obligate toward Lines of Credit. In the 
case of lines of credit for commercial real estate loans that are 
secured by real estate and which have a permanent take out source, 
Applicants may count the full amount of the line (consistent with 
current practices). For all other lines of credit, Applicant may only 
count the amount of monies expected to be disbursed on the line within 
12 months of closing, but in no event shall the amount obligated exceed 
the greater of: (a) The face amount of the line, or (b) $2 million in 
the case of CDFI Support Activities and $1 million in the case of 
Development and Service Activities.

X. Equity Like Loans

    For purposes of calculating BEA Program awards, the Fund will treat 
certain loans, ``made on such terms that they have characteristics of 
equity,'' to be Equity Investments. The Fund refers to such loans as 
Equity-Like Loans. Prior to the FY 2001 funding round of the BEA 
Program, the Fund stated (in general guidance) that an Equity-Like Loan 
must meet all three of the following criteria to be considered a 
Qualified Activity: (1) The loan must have a ``soft,'' flexible 
maturity (i.e., a rolling maturity such as when the maturity date is 
extended annually by one year, or a maturity in which repayment is 
required only when the CDFI borrower has resources available to make 
the payment); (2) payment of interest and/or principal may only be made 
out of the CDFI borrower's available cash flow and non-payment of 
principal or interest will not automatically trigger a default; and (3) 
the loan must be subordinate to all other debt of the CDFI borrower.
    In recent years, BEA Program Applicants have developed new loan and 
investment instruments and the use of Equity-Like Loans has become more 
common in the financial services industry. In response to these trends, 
the Fund issued guidance updating and clarifying its policy on the 
types of instruments it will consider to be Equity-Like Loans for the 
purpose of calculating BEA Program awards.
    Specifically, the January 2001 guidance states that, beginning with 
the FY 2001 funding round of the BEA Program, the Fund will require an 
instrument to have each of the following characteristics in order to be 
considered an Equity-Like Loan:
    (1) The initial term of the loan at the time of origination must be 
a minimum of ten years.
    (2) The maturity date at the end of the initial ten year term must 
be a ``soft'' or indefinite, rolling maturity that is extended, subject 
to the following sentence, in annual increments after the initial 
maturity date so long as the CDFI borrower continues to be financially 
sound and carry out a community development mission. The period of the 
extended rolling maturity must be a minimum of five years after the 
initial ten-year term. In other words, as long as the CDFI borrower 
remains fiscally sound and pursues a community development mission, the 
effective term of the loan must be at least 15 years.
    (3) There shall be no periodic payments of principal during the 
initial term of the loan. The CDFI borrower may pay principal, in whole 
or in part, during the extended term of the loan or at maturity. Any 
such payment shall be made in accordance with the provisions of this 
policy.
    (4) Any payment of principal and/or interest on the loan (except at 
maturity) shall be required to be made only out of the CDFI borrower's 
available cash flow after satisfying all other obligations, including 
all other non-subordinated and non-equity-like debt, and operating 
expenses. Furthermore, failure to make payment of principal and/or 
interest shall not automatically result in a default. However, nothing 
in the foregoing shall be construed as a requirement to forego any 
right to any payment of principal or interest.
    (5) The loan must be subordinate to all other debt of the CDFI 
borrower except for other Equity-Like Loans.
    Notwithstanding the foregoing, the Fund reserves the right to 
determine, on a case-by-case basis, if an instrument evidences an 
Equity-Like Loan.
    As specified in the January 2001 guidance, the Fund requests that 
Applicants submit to the Fund for review, not later than 45 days prior 
to the end of the Assessment Period, all documents evidencing loans 
that they wish to be considered Equity-Like Loans. The purpose for this 
request is to enhance the Fund's ability to provide feedback to 
Applicants as to whether a transaction meets the Equity-Like Loan 
requirements prior to the end of the applicable Assessment Period. Such 
information will allow Applicants, if they so choose, to modify the 
instruments to conform to the requirements prior to the end of the 
Assessment Period. This process is intended to prevent circumstances in 
which an Applicant executes loan documents without review by the Fund 
only to learn after the close of the Assessment Period that the 
transaction is ineligible. The Fund cannot guarantee timely feedback to 
Applicants that submit the aforementioned documentation less than 45 
days prior to the end of the applicable Assessment Period.

XI. Deposits in CDFIs

    As provided in the BEA Program Regulations at 12 CFR 1806.205(d), 
the Fund has the discretion to limit the amount of an award for any 
reason. Given the strong demand for BEA Program resources and concerns 
about over-subscription, the Fund has decided to cap the maximum 
applicable award for deposits in certified CDFIs. Specifically, 
effective with the FY 2002 funding round of the BEA Program, for the 
purposes of determining the award amount attributed to deposits in 
CDFIs, the Fund will count only the first $1,000,000 deposited in 
certified CDFIs. Furthermore, the Fund will only count a deposit in a 
CDFI if the CDFI receiving the deposit has not made a corresponding 
deposit in the Applicant making the deposit.
    The Fund also wishes to clarify how Applicants should calculate a 
``Materially Below Market'' interest rate on a Certificate of Deposit. 
The BEA Program Regulations state that any Certificate of Deposit 
placed by an Applicant in a CDFI that is bank, thrift, or credit union 
must be: (1) Uninsured; or (2) insured if it earns a rate of interest 
that is determined by the Fund to be Materially Below Market. The Fund 
has interpreted a ``Materially Below Market'' interest rate to be an 
Annual Percentage Rate that does not exceed 80 percent of the rate on a 
U.S. Treasury bill of comparable maturity as of the date the deposit is 
placed. For a three-year deposit, use the three-year rate posted for 
U.S. Government securities, Treasury Constant Maturity on the Federal 
Reserve website at www.federalreserve.gov/releases/H15/update. The rate 
on the website is updated daily at approximately 4:00 p.m. Eastern 
Time. Certificates of Deposit closed prior to that time may use the 
rate posted for the previous day. The Fund also wishes to clarify that 
the Annual Percentage Rate on a Certificate of Deposit should be 
compounded quarterly, semi-annually, or annually. In addition, the Fund 
wishes to clarify that Applicants should determine whether a 
Certificate of Deposit is insured based on the total amount the 
Applicant has on deposit on the day the Certificate of Deposit is 
placed. For example, if an

[[Page 48938]]

Applicant purchased a $100,000 Certificate of Deposit from a CDFI in 
April, 2000 and purchases another $100,000 Certificate of Deposit from 
the same CDFI in May, 2002, then the second Certificate of Deposit 
should be treated as uninsured for purposes of calculating the Annual 
Percentage Rate. The Applicant must make note of this in its BEA 
Program Application.

XII. Waivers

    First, for the purpose of streamlining the Application process and 
reducing burdens on Applicants, and pursuant to the BEA Program 
Regulations at 12 CFR 1806.104, the Fund hereby waives the regulatory 
requirement that Applicants submit the items described at 12 CFR 
1806.206(b)(1), (4) and (7). Specifically, for the purpose of this 
NOFA, an Applicant is not required to submit: (1) Copies of its 
certificate of insurance issued by the Federal Deposit Insurance 
Corporation, articles of incorporation, Federal or state-issued bank or 
thrift charter, by-laws and other establishing documents for the 
purpose of establishing eligibility for an award; (2) a copy of its 
most recent Report of Condition or Thrift Financial Report; or (3) a 
copy of its most recent annual report. The Fund has waived the 
requirement that these items be submitted with the Application because 
the Federal Deposit Insurance Corporation will conduct a verification 
of eligibility for the Fund based on information it has collected from 
insured depository institutions. Further, each Applicant's total asset 
size will be obtained by the Fund through other publicly available data 
sources (specifically, the Fund will use data reported through the 
Federal Deposit Insurance Corporation's website).
    Second, for the purpose of this NOFA and the NOFA published in the 
Federal Register on September 1, 1999 (64 FR 48062), the Fund is 
waiving two of the requirements set forth in 12 CFR 1806.103(m) of the 
BEA Program Regulations. Section 1806.103(m) provides that an Applicant 
may receive an award under the BEA Program for assistance provided to 
an uncertified CDFI that, at the time of the Qualified Activity, does 
not meet the CDFI eligibility requirements if: (1) The Applicant 
requires the uncertified CDFI to refrain from using the assistance 
provided until the entity is certified; (2) the uncertified CDFI is 
certified by the end of the applicable Assessment Period; and (3) the 
Applicant retains the option of recapturing said assistance in the 
event the uncertified CDFI is not certified by the end of the 
applicable Assessment Period.
    The Fund believes that waiving the first requirement will further 
the purposes of the Act. Specifically, the Conference Report underlying 
the Act provides that Congress intended the BEA Program to affect 
immediately economically distressed communities through infusion of 
private dollars as loans, services, and technical assistance to, and 
equity investments in, CDFIs. The Fund believes the requirement that an 
uncertified CDFI refrain from using the assistance would defeat the 
purposes of the Act by delaying the uncertified CDFI's ability to use 
such capital for projects that are intended to catalyze urban and rural 
economic revitalization.
    The Fund also believes that there is good cause to waive the third 
requirement. Requiring an Applicant to retain the option of recapturing 
assistance in the event the uncertified CDFI is not certified by the 
end of the applicable Assessment Period is a matter of business 
judgment best left to the Applicants themselves. This requirement also 
potentially imposes added paperwork burdens on Applicants that use 
standardized loan or investment agreements.
    As a result, if an Applicant provides assistance to an uncertified 
CDFI during the applicable Assessment Period, such assistance may be 
eligible for an award under the BEA Program if the Fund certifies the 
entity by the end of the applicable Assessment Period.
    Third, as provided in Sec. 1806.200 (a) of the BEA Program 
Regulations, if an Applicant proposes to carry out CDFI Support 
Activities or Development and Service Activities, the Applicant shall 
designate one or more Distressed Communities in which it proposes to 
carry out those activities. For those Applicants proposing to carry out 
CDFI Support Activities only (or CDFI Support Activities and Equity 
Investments in CDFIs) the Fund hereby waives the requirement that an 
Applicant designate one or more Distressed Communities in which it 
proposes to carry out the CDFI Support Activities. Instead, the 
Applicant must sign and submit with its Initial Application, a 
certification (included in the Initial Application) that it is 
designating the same Distressed Community as its CDFI partner.

XIII. Information Sessions

    In connection with the Fiscal Year 2002 funding rounds of its 
programs, the Fund will conduct In-Person Information Sessions to 
disseminate information to organizations contemplating applying to, and 
other organizations interested in learning about, the Core, 
Intermediary, SECA and NACTA Components of the CDFI Program, and the 
BEA Program. Registration is required, as the In-Person Information 
Sessions will be held in secured federal facilities. The Fund 
anticipates conducting up to 17 In-Person Information Sessions, through 
October 31, 2001, in the following cities: Anchorage, AK; Boston, MA; 
Chicago, IL; Dallas, TX; Denver, CO; Honolulu, HI; Los Angeles, CA; 
Memphis, TN; Miami, FL; Minneapolis, MN; Philadelphia, PA; Seattle, WA; 
and Washington, DC.
    In addition to the In-Person Information Sessions listed above, the 
Fund will broadcast a Televideo Information Session, using interactive 
video-teleconferencing technology, on November 8, 2001 (tentative 
date), 1 p.m. to 4 p.m. EST. Registration is required, as the Televideo 
Information Session will be held in secured federal facilities. The 
Televideo 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.
    For further information on the Fund's Information Sessions, dates 
and locations, or to register online for an Information Session, please 
visit the Fund's website at www.treas.gov/cdfi. If

[[Page 48939]]

you do not have Internet access, you may register by calling the Fund 
at (202) 622-8662.

Catalog of Federal Domestic Assistance: 21.021


    Authority: 12 U.S.C. 1834a, 4703, 4703 note, 4713; 12 CFR part 
1806.

Jeffrey C. Berg,
Acting Deputy Director for Policy and Programs, Community Development 
Financial Institutions Fund.
[FR Doc. 01-23672 Filed 9-21-01; 8:45 am]
BILLING CODE 4810-70-P