[Federal Register Volume 68, Number 23 (Tuesday, February 4, 2003)]
[Notices]
[Pages 5731-5735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2338]


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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--Native American 
CDFI Development Program

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

ACTION: Notice of funds availability (``NOFA'') inviting applications 
for the FY 2003 and FY 2004 funding rounds of the Native American CDFI 
Development (``NACD'') Program.

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SUMMARY: This NOFA is issued in connection with the FY 2003 and FY 2004 
funding rounds of the NACD Program. Through the NACD Program and 
subject to appropriation of funding for the purposes enumerated in this 
NOFA, the Community Development Financial Institutions Fund (the 
``Fund'') will provide technical assistance (``TA'') grants to 
organizations that plan to create community development financial 
institutions (CDFIs) to serve Native American, Alaska Native and/or 
Native Hawaiian communities.
    Interested parties should be aware that implementation of the FY 
2003/04 NOFA for the NACD Program is contingent on the appropriation of 
funds for the purposes enumerated in this NOFA; as of the date of this 
NOFA, said appropriation is pending with Congress. The Fund will issue 
a notice on its Web site, at http://www.cdfifund.gov, at such time that 
the Fund has the authority to implement the FY 2003/04 NOFA for the 
NACD Program. Applicants may submit applications pursuant to this NOFA 
as set forth herein; however, the Fund will not review applications or 
make awards unless and until funds are appropriated for the purposes 
and uses set forth in this NOFA.
    The Preamble to the Fund's NOFAs, published in this issue of the 
Federal Register also specifies other program information, including 
eligibility requirements, for each of the Fund's programs. The Fund 
encourages applicants to review the revised interim rule and the 
Preamble to the NOFAs.
    The FY 2003 and FY 2004 Technical Assistance Component and the NACD 
Program together replace the Native American CDFI Technical Assistance 
(``NACTA'') Component that was made available in FY 2002.
    Subject to funding availability, the Fund expects that it may award 
approximately $3 million for FY 2003 awards, and approximately $1.5 
million for FY 2004 awards, in appropriated funds under this NACD 
Program NOFA. The Fund reserves the right to award in excess of said 
funds under this NOFA provided that the appropriated funds are 
available and the Fund deems it appropriate. The Fund intends to make 
information available on its website about the level of dollars 
remaining available on a regular basis.
    Applicants should note that the Fund expects that the funding round 
for this NOFA (and the NOFA for the Technical Assistance Component of 
the CDFI Program, also published in the Federal Register on this date) 
will extend over a two year funding round, subject to funding 
availability and Fiscal Year 2004 appropriations.
    Under this NOFA, the Fund anticipates making TA grants up to 
$100,000 per awardee. The Fund, in its sole discretion, reserves the 
right to award amounts in excess of the anticipated maximum award if 
the Fund deems it appropriate. The Fund reserves

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the right to fund, in whole or in part, any, all, or none of the 
applications submitted in response to this NOFA.

DATES: Shortly following the publication of this NOFA, the Fund will 
make available the FY 2003 funding application on its Web site at 
http://www.cdfifund.gov. Applicants may download the application from 
the Fund's Web site or request application packages by contacting the 
Fund, as described below.
    The Fund will accept and review applications under this NACD 
Program NOFA as they are submitted and in the order in which they are 
submitted. Applications may be submitted at any time, commencing with 
the date of the publication of this NOFA. Applications must be received 
in the specific Bureau of the Public Debt--Franchise Services (BPD) 
office designated below not later than 5:00 p.m. ET on May 31, 2004. 
Any applicant whose application is declined may submit a new 
application before May 31, 2004. Applications received in the specific 
BPD office designated below after that date and time will be rejected 
and returned to the sender.
    Applications sent by facsimile or e-mail will not be accepted; 
however, an electronic application may be made available for this NOFA 
at a later date and, if so, its availability and related guidance will 
be announced on the Fund's Web site.

ADDRESSES: Applications must be sent to: CDFI Fund Awards Manager, NACD 
Program, Bureau of Public Debt--Franchising, 200 Third Street, Room 
211, Parkersburg, WV 26101. The telephone number to be used in 
conjunction with overnight mailings to this address is (304) 480-5450. 
Applications will not be accepted at the Fund's offices. Applications 
received in the Fund's offices will be rejected and returned to the 
sender.

FOR FURTHER INFORMATION CONTACT: If you have any questions about the 
programmatic requirements for this program, contact the Fund's Program 
Operations Manager. If you have questions regarding administrative 
requirements, contact the Fund's Awards Manager. The Program Operations 
Manager and the Awards Manager may be reached by e-mail at 
[email protected], by telephone at (202) 622-6355, 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. 
Applications and other information regarding the Fund and its programs 
may be downloaded and printed from the Fund's Web site at http://www.cdfifund.gov or requested by contacting the Fund, as described 
above. Allow at least one to two weeks from the date the Fund receives 
the request for receipt of the application.

SUPPLEMENTARY INFORMATION: 

I. Eligibility

    The NACD Program application specifies the eligibility requirements 
that each applicant must meet in order to be eligible to apply for 
assistance under this NOFA. The following sets forth some additional 
detail and certain additional dates that relate to the submission of 
applications under this NOFA:
    (1) Eligible Applicants: Eligible applicants for the NACD Program 
consist of:
    (a) Category I, meaning Tribes, Tribal entities and nonprofit 
organizations that primarily (at least 50 percent of activities 
directed toward) serve Native American, Alaska Native and/or Native 
Hawaiian populations including:
    (i) Tribes, Tribal entities, Alaska Native Villages, Village 
Corporations, Regional Corporations, Non-Profit Regional Corporations/
Associations, or Inter-Tribal or Inter-Village organizations; and
    (ii) non-profit community organizations engaged in related 
activities, including, but not limited to: Community development 
corporations (CDCs), training or educational organizations, Tribally-
Controlled Community Colleges, Chambers of Commerce, or Urban Indian 
Centers that serve primarily a Native American, Alaska Native or Native 
Hawaiian Community (such entities were referred to as Category II 
applicants under the FY 2002 NACTA Component); and
    (b) Category II, meaning TA providers or other suitable providers, 
including:
    (i) TA providers such as firms that provide training or TA in 
community development finance or that specialize in economic 
development in Native American, Alaska Native and/or Native Hawaiian 
communities, and
    (ii) other suitable providers, as defined by the Fund, that 
include, but are not limited to: CDCs, certified CDFIs, or 
organizations with experience and expertise in banking and lending in 
Native American, Alaska Native and/or Native Hawaiian communities) 
(such entities were referred to as Category III applicants under the FY 
2002 NACTA Component).
    Any applicant, under Category II above, including CDFIs, that does 
not serve primarily a Native American, Alaska Native and/or Native 
Hawaiian community must identify a Native American Partner that serves 
primarily a Native American, Alaska Native and/or Native Hawaiian 
community and with which the applicant will work with to establish a 
CDFI in the Native American Partner's community or service area that in 
turn will serve primarily a Native American, Alaska Native and/or 
Native Hawaiian community. The Native American Partner must be a party 
to both the application for funding and the Assistance Agreement, if 
the applicant is selected for funding. Category II applicants may 
propose to serve more than one Native American, Alaska Native and/or 
Native Hawaiian community. If more than one such communities are to be 
served, then more than one Native American Partner may be a party to 
the application and the Assistance Agreement, as long as such Native 
American Partner(s) is representative of the predominance (plurality) 
of the market to be served by the proposed CDFI. If not, the Fund may 
require that the applicant obtain additional Native American 
Partner(s).
    (2) Certification: For purposes of this NACD Program NOFA, eligible 
applicants must establish entities that will become Fund-certified 
CDFIs by January 31, 2006 (for applications received by May 31, 2003) 
or by January 31, 2007 (for applications received between June 1, 2003 
and May 31, 2004). Applicants may obtain CDFI certification 
applications through the Fund's Web site at http://www.cdfifund.gov.
    (3) Designation of Targeted Population: 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; and
    (b) Native Hawaiian: a person having origins in any of the original 
peoples of Hawaii.
    (4) Previous Awardees: Applicants must be aware that success in a 
previous round of the CDFI Program or the NACTA Program is not 
indicative of success under this NOFA. Previous awardees are eligible 
to apply under this NOFA, except as follows:
    (a) the Fund is generally prohibited from obligating more than $5 
million in assistance, in the aggregate, to any one CDFI and its 
Subsidiaries and Affiliates during any three-year period (further 
guidance on the calculation of the $5

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million cap is available on the Fund's Web site at http://www.cdfifund.gov);
    (b) the Fund will not consider an application submitted by an 
applicant that is a previous Fund awardee under any Fund program or 
component of the CDFI Program if the applicant has failed to meet its 
reporting requirements, set forth in the previously executed assistance 
or award agreement(s), as of the date an application for funding under 
this NOFA is received by the CDFI Fund; and
    (c) the Fund will not consider an application submitted by an 
applicant that is a previous Fund awardee under any Fund program or 
component of the CDFI Program that has a balance of undisbursed funds 
under said previous award, as of the date an application for funding 
under this NOFA is received by the CDFI Fund. Accordingly, applicants 
that are previous awardees are advised to:
    (i) submit all required reports by the deadlines specified in the 
assistance or award agreements governing said prior awards and to 
comply with all requirements found therein, and
    (ii) contact the appropriate Program Operations representative of 
the Fund to ensure that actions are underway for the disbursement of 
any outstanding balance of said prior award.

II. Types of Assistance

    An applicant may only submit an application for a TA grant under 
this NOFA. The Fund reserves the right, in its sole discretion, to 
provide a TA grant for uses other than that which is requested by an 
applicant.
    Applicants for TA grants 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 description of how the TA will 
enhance their community development impact by creating a CDFI. Eligible 
types of TA grant uses include, but are not limited to, the following:
    (1) Acquiring consulting services;
    (2) Paying staff salary for the limited purposes of completing 
tasks and/or fulfilling functions that are otherwise eligible TA grant 
uses under this NOFA;
    (3) Acquiring/enhancing technology items; and
    (4) Acquiring training for staff or management (under Category I 
only).
    The Fund will generally not consider requests for TA grants under 
this NOFA for expenses that, in the determination of the Fund, are 
deemed to be ongoing operating expenses rather than non-recurring 
expenses. The Fund will consider requests for the use of TA to pay for 
staff salary only when the applicant demonstrates to the satisfaction 
of the Fund that:
    (a) The staff salary relates directly to building the applicant's 
capacity to serve its target market;
    (b) The proposed staff time to be paid for by the TA grant will be 
used for a non-recurring activity or the staff salary will build the 
applicant's capacity to achieve its objectives as set forth in its 
application;
    (c) The proposed activity would otherwise be contracted to a 
consultant or not be undertaken; and
    (d) The staff person assigned to the proposed task has the 
competence to successfully complete the activity. Further guidance on 
the limited uses of TA grants for staff salary expenditures is 
available on the Fund's Web site at http://www.cdfifund.gov.

III. Application Packet

    Applicants under this NOFA must submit all materials described in 
the applicable application. An application must include a valid and 
current Employer Identification Number, issued by the Internal Revenue 
Service, or the application will be rejected as incomplete and returned 
to the sender.

IV. Evaluation

    For purposes of this NACD Program NOFA, the Fund will evaluate 
applications through a merit-based, qualitative application process, in 
the order in which they are submitted, until such point as all 
appropriated funds allocated for this NOFA are obligated or May 31, 
2004, whichever occurs first. Applications submitted after that point 
will not be considered for funding; said applications will be rejected 
and returned to the sender.
    All applications will be reviewed for eligibility and completeness. 
If determined to be eligible and complete, the Fund will conduct the 
substantive review of each application in accordance with the criteria 
and procedures described in the interim regulations, this NOFA and the 
application. In the first part of the substantive review, the Fund will 
evaluate each application on a 100-point scale, comprising the four 
criteria categories set forth below, and assign numeric scores. 
Applicants whose applications are assigned 60 points or more will be 
considered for TA awards.
    (1) Market Need and CDFI Strategy: including a review of the 
applicant's understanding of the market context, the prospective 
customers, the extent of economic distress within the likely Investment 
Area(s) or the extent of need within the likely Targeted Population(s), 
the extent of need for the proposed CDFI, the level of support from the 
Target Market, and the appropriateness of the proposed products and 
services to meet the needs in the market of the proposed CDFI, 
appropriateness of the proposed organizational structure. For any 
entity that has already received an award from the Fund, the applicant 
also will be evaluated on the extent to which it proposes to create 
greater community development impact than to be achieved through the 
prior award and its track record in meeting previous performance goals 
and other Assistance Agreement requirements (maximum 25 points; minimum 
of 12 points required to be considered for an award);
    (2) Management: including a review of the applicant's current and 
proposed management team, governing board, and key staff, its policies 
and procedures for financial management, and its track record in 
underwriting and portfolio management, if applicable, and its ability 
to create the proposed CDFI and to successfully use the requested TA. 
For any applicant that has received one or more prior awards through 
the CDFI Program, the Fund will consider the extent to which the 
applicant has submitted required reports in a timely manner and 
otherwise complied with the Fund's requirements (maximum 25 points; 
minimum of 12 points required to be considered for an award);
    (3) Financial Health and Resources: including a review of the 
applicant's financial strength, its liquidity, and the likelihood of 
obtaining resources to initiate and sustain operations of the proposed 
CDFI, and a clear indication that the proposed CDFI will not be 
fiscally dependent on the Fund (maximum 10 points; minimum of 5 points 
required to be considered for an award);
    (4) Community Development Performance and Effective Use of TA: 
including the projected level of activity within the Target Market of 
the proposed CDFI; the extent to which the applicant needs the Fund's 
assistance to achieve the objectives set forth in its application; and 
the likelihood that the Fund's assistance will enhance the applicant's 
ability to effectively serve its Target Market by creating a CDFI and 
achieve community development impact (maximum 40 points; minimum of 20 
points required to be considered for an award).
    Fund reviewers will evaluate and score each application and make 
recommendations for funding to the Fund's selecting official. As part 
of the substantive review process, applicants may receive a telephone 
interview or an on-site visit by Fund reviewers for the purpose of 
obtaining, clarifying, or

[[Page 5734]]

confirming application information. During the review process, the 
applicant may be required to submit additional information about its 
application in order to assist the Fund in its final evaluation 
process. Such requests must be responded to within the time parameters 
set by the Fund.
    In the case of an applicant that has previously received funding 
from the Fund under the Bank Enterprise Award (BEA) Program, the CDFI 
Program or the NACTA Component, the Fund will consider, as appropriate:
    (a) The applicant's level of success and extent of compliance in 
meeting its performance goals, financial soundness covenants (if 
applicable) and other requirements set forth in the assistance or award 
agreement(s) with the Fund;
    (b) The benefits that will be created with new Fund assistance over 
and above benefits created by previous Fund assistance; and
    (c) The extent and effectiveness to which the applicant has used 
previous assistance from the Fund.
    The Fund's selecting official will make a final funding 
determination based on the applicant's file, reviewer scores and 
recommendations, and the amount of funds available. In the case of 
regulated CDFIs, the selecting official will take into consideration 
the views of the appropriate Federal banking agencies.
    Each applicant will be informed of the Fund's award decision either 
through a Notice of Award if selected for an award (see Notice of Award 
section, below) or a declination letter, if not selected for an award, 
which may be for reasons of application incompleteness, ineligibility 
or substantive issues. Any applicant that is not selected for an award 
due to application incompleteness or ineligibility, and that believes 
that such decision was made in error, may appeal said decision by 
notifying the Fund's Awards Manager in writing or by e-mail (at 
[email protected], Attention: Awards Manager); such appeals must 
be received by the Fund within five business days of the date of the 
declination letter. Such appeal requests will be reviewed by the Fund's 
Deputy Director for Management and the Deputy Director for Policy and 
Programs, as appropriate, whose decision will be final. All applicants 
that are not selected for awards based on substantive issues, will be 
given the opportunity to request feedback on the strengths and 
weaknesses of their applications. This feedback will be provided in a 
format and within a timeframe to be determined by the Fund.
    The Fund reserves the right to change these evaluation procedures 
if the Fund deems it appropriate; if said procedural changes materially 
affect the Fund's award decisions, the Fund will provide information 
regarding the procedural changes through the Fund's Web site.

V. Notice of Award

    The Fund will signify its selection of an applicant as an awardee 
by delivering a signed Notice of Award to the applicant. The Notice of 
Award will contain the general terms and conditions underlying the 
Fund's provision of assistance including, but not limited to, the 
requirement that an awardee and the Fund enter into an Assistance 
Agreement. The applicant shall execute the Notice of Award and return 
it to the Fund. By executing a Notice of Award, the awardee agrees 
that, if prior to entering into an Assistance Agreement with the Fund, 
information comes to the attention of the Fund that either adversely 
affects the awardee's eligibility for an award, or adversely affects 
the Fund's evaluation of the awardee's application, or indicates fraud 
or mismanagement on the part of the awardee, the Fund may, in its 
discretion and without advance notice to the awardee, terminate the 
Notice of Award or take such other actions as it deems appropriate. 
Moreover, by executing a Notice of Award, an awardee agrees that, if 
prior to entering into an Assistance Agreement with the Fund, the Fund 
determines that the awardee is not in compliance with the terms of any 
previous Assistance Agreement entered into with the Fund, the Fund may, 
in its discretion and without advance notice to the awardee, either 
terminate the Notice of Award or take such other actions as it deems 
appropriate. The Fund reserves the right, in its sole discretion, to 
rescind its award if the awardee fails to return the Notice of Award, 
signed by the authorized representative of the awardee, along with any 
other requested documentation, within the deadline set by the Fund.

VI. Assistance Agreement

    Each applicant that is selected to receive an award under this NOFA 
must enter into an Assistance Agreement with the Fund. The Assistance 
Agreement will set forth certain required terms and conditions of the 
award, which may include, but not be limited to:
    (a) The amount of the award;
    (b) The approved uses of the award;
    (c) The approved Target Market to which the award must be targeted;
    (d) Performance goals and measures; and
    (e) Reporting requirements for all awardees.
    Assistance Agreements under this NOFA will generally have three-
year performance periods. The Fund reserves the right, in its sole 
discretion, to rescind its award if the awardee fails to return the 
Assistance Agreement, signed by the authorized representative of the 
awardee, along with any other requested documentation, within the 
deadline set by the Fund.

VII. Reporting and Monitoring

    The Fund will collect information, on at least an annual basis, 
from NACD Program awardees, including:
    (a) Annual reports related to, among other matters, awardee 
compliance with the performance goals and measures set forth in the 
Assistance Agreement; and
    (b) Such other information as the Fund may require. The Fund will 
use such information to monitor each awardee's compliance with the 
requirements set forth in the Assistance Agreement. The Fund will also 
use such information to assess the impact of the NACD Program. The Fund 
reserves the right, in its sole discretion, to modify these reporting 
requirements if it determines it to be appropriate and necessary; 
however, such reporting requirements will be modified only after due 
notice to the awardee.
    The Fund reserves the right, in accordance with applicable Federal 
law and if authorized, to charge award reservation and/or compliance 
monitoring fees to all entities receiving NACD Program awards. Prior to 
imposing any such fee, the Fund will publish additional information 
concerning the nature and amount of the fee.

VIII. Information Sessions

    In connection with the Fiscal Year 2003 funding rounds of its 
programs, the Fund may conduct Information Sessions to disseminate 
information to organizations contemplating applying to, and other 
organizations interested in learning about, the Technical Assistance 
and Financial Assistance Components of the CDFI Program, the NACD 
Program, and the BEA Program. For further information on the Fund's 
Information Sessions, dates and locations, or to register online to 
attend an Information Session, please visit the Fund's Web site at 
http://www.cdfifund.gov or call the Fund at (202) 622-8401.

(Catalog of Federal Domestic Assistance: 21.020)


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

    Dated: January 27, 2003.
Tony T. Brown,
Director, Community Development Financial Institutions Fund.
[FR Doc. 03-2338 Filed 2-3-03; 8:45 am]
BILLING CODE 4810-70-P