[Federal Register Volume 68, Number 136 (Wednesday, July 16, 2003)]
[Notices]
[Pages 42167-42168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17993]


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DEPARTMENT OF THE TREASURY


Community Development Financial Institutions Fund; Proposed 
Collection; Comment Request

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, as part of its continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on proposed and/or continuing information collections, as required by 
the Paperwork Reduction Act of 1995, Pub. L. 104-13 (44 U.S.C. 
3506(c)(2)(A)). Currently, the Fund within the Department of the 
Treasury is soliciting comments concerning the Fund's reporting 
requirement for: a) the CDFI Program Annual Survey (comprising an 
Institution-Level Report and a Transaction-Level Report) from CDFI 
Program awardees; and b) the NMTC Program Institution-Level Report 
(including IRS Compliance Questions) and Transaction-Level Report from 
NMTC Program allocatees. The Fund is also soliciting comments on 
certain other information collections required by the allocation 
agreement for NMTC Program allocatees.

DATES: Written comments should be received on or before September 15, 
2003 to be assured of consideration.

ADDRESSES: Direct all comments on the IRS Compliance Questions (found 
on the last page of the NMTC Program Institution-Level Report) to: John 
Bickford, Senior Program Analyst, SB/SE Compliance Policy, Internal 
Revenue Service, 5000 Ellin Road, C9-465, Lanham, MD 20706, Facsimile 
Number (202) 283-2240.
    Direct all other comments on the CDFI Program Annual Survey and the 
NMTC Program Institution Level and Transaction Level Reports to: Donna 
Fabiani, Manager for Financial Strategies and Research, Community 
Development Financial Institutions Fund, U.S. Department of the 
Treasury, 601 13th Street, NW., Suite 200 South, Washington, DC 20005, 
[email protected], Facsimile Number (202) 622-
3569.
    Direct all comments on the information collections related to the 
specified sections of the NMTC Program Allocation Agreement to: Jeffrey 
C. Berg, Legal Counsel, Community Development Financial Institutions 
Fund, U.S. Department of the Treasury, 601 13th Street, NW., Suite 200 
South, Washington, DC 20005, [email protected], Facsimile Number (202) 622-7754.

FOR FURTHER INFORMATION CONTACT: A draft of the information collections 
may be obtained from the Fund's Web site at http://www.cdfifund.gov gov. 
Requests for additional information regarding the IRS Compliance 
Questions should be directed to: John Bickford, Senior Program Analyst, 
SB/SE Compliance Policy, Internal Revenue Service, 5000 Ellin Road, C9-
465, Lanham, MD 20706, or call (202)-283-2515.
    Requests for additional information regarding all other reports 
should be directed to: Donna Fabiani, Manager for Financial Strategies 
and Research, Community Development Financial Institutions Fund, U.S. 
Department of the Treasury, 601 13th Street, NW., Suite 200 South, 
Washington, DC 20005, [email protected], or fax 
(202) 622-3569.
    Requests for additional information regarding the specified 
sections of the NMTC Program Allocation Agreement should be directed 
to: Jeffrey C. Berg, Legal Counsel, Community Development Financial 
Institutions Fund, U.S. Department of the Treasury, 601 13th Street, 
NW., Suite 200 South, Washington, DC 20005, [email protected], or fax (202) 622-7754.

SUPPLEMENTARY INFORMATION:
    Title: Performance and Compliance Data and Other Information 
Collection
    OMB Number: 1559-0006 (for Annual Survey only)
    Abstract: Since 1996, the Fund has certified more than 700 
Community Development Financial Institutions (CDFIs) and more than 
1,200 Community Development Entities (CDEs), and made approximately 
$3.1 billion in awards and tax credit allocations. The CDFI/CDE 
industry boasts collective assets in excess of $5 billion and a 
combined loan/investment portfolio of nearly $6 billion (exclusive of 
the equity to be raised with the recent $2.5 billion in New Markets Tax 
Credit allocations).
    What has the industry accomplished? What is it capable of 
accomplishing? Answers to these questions could help catalyze new 
investment that may be required for the industry to reach its full 
market potential and achieve long-term sustainability through greater 
access to the financial markets.
    The Fund plans to create a repository of data to help the industry 
conduct peer analyses and self-assessments on its products and 
institutional performance. This data will aid the Fund in conducting 
financial risk and socio-economic impact analyses.
    The Fund network of more than 1,900 certified CDFIs and CDEs is an 
integral part of our nation's financial system. The Fund's vision is to 
electronically link the nation's community development financing 
industry as a powerful, reliable and stable network within the U.S. 
financial system. The Fund is re-designing its electronic platform to 
facilitate the flow of information between the Fund and the field and 
to create a repository of data to aid CDFI self-assessments through 
peer analyses, as well as aid the Fund in conducting its own assessment 
of CDFI financial risk and community development impact. To that end, 
the Fund will collect:
    From All CDFI Program awardees, an annual survey consisting of two 
parts: (a) an Institution-Level Report on the CDFI and its financial 
performance; and (b) a Transaction-Level Report providing precise 
information on the socio-economic characteristics of investees, loan 
and investment terms, repayment status, and community development 
impacts. The Transaction-Level Report complements the Institution-Level 
Report and, together, the two pieces comprise the annual survey 
requirement under CDFI Program assistance agreements.
    From NMTC Program allocatees, an Institution-Level Report 
(including IRS Compliance Questions) and a Transaction-Level Report.
    These reports are used to demonstrate how CDFIs and CDEs are 
performing and the impact they are having in underserved communities. 
The data from the reports will be used in compliance reviews for 
awardees and allocatees, in the development and implementation of PLUM 
(described below), and the measurement of financing activities in the 
most distressed communities in the nation, including Hot Zones.
    In anticipation of these changes, the Fund is making major 
investments in technology to collect, store, and analyze this large 
volume of data. Two of these investments are:
    [sbull] Community Investment Intelligence System (CIIS): This new 
data collection system and repository will collect and store CDFI and 
CDE transaction-level and institution-level data. The system is being 
designed to communicate, where possible, with the technology CDFIs and 
CDEs currently use, thereby facilitating the transfer of large volumes 
of data to the Fund. The Fund's contractor, E F

[[Page 42168]]

Kearney, will work with CDFIs and CDEs in the system design phase with 
the goal of developing a sophisticated yet user-friendly web-based data 
transmission process. CIIS is expected to be implemented in December 
2003.
    [sbull] PLUM: PLUM is an automated CDFI performance rating system 
that will analyze the data collected through CIIS to rate a CDFI's 
Performance/community development impact, Liquidity/financial strength, 
Underwriting/portfolio quality, and Management. The Fund will publish a 
separate notice seeking public comment on PLUM.
    To view the proposed data collection reports, visit the Fund's 
website www.cdfifund.gov gov and click on ``Fund seeking comments on Data 
Collection.'' This will link to the following reports: 1. CDFI Program 
Annual Survey--Institution-Level Report; 2. CDFI Program Annual 
Survey--Transaction-Level Report; 3. NMTC Program Institution-Level 
Report (including IRS Compliance Questions); and 4. NMTC Program 
Transaction-Level Report.
    NMTC Program Allocation Agreement: In order to qualify for an 
allocation of tax credits under the NMTC Program, an entity must be 
certified as a qualified community development entity and submit an 
allocation application to the Fund. Upon receipt of such applications, 
the Fund will conduct a competitive review process to evaluate 
applications for the receipt of NMTC allocations. Entities receiving an 
NMTC allocation must enter into an allocation agreement with the Fund. 
The allocation agreement contains the terms and conditions associated 
with the receipt of an NMTC allocation. Comment are requested on 
certain disclosure requirements contained in the allocation agreement 
as well as the requirement for the submission of a copy of the 
allocatee's audited financial statements. The specific sections of the 
allocation agreement for which comments are sought may be obtained from 
the Fund's Web site at http://www.cdfifund.gov gov.
    Current Action: N/A.
    Type of review:

CDFI Program Annual Survey: Renewal
NMTC Program Institution-Level and Transaction-Level Reports: New
NMTC Program Allocation Agreement sections: New
    Affected Public: Not-for-profit institutions, businesses or other 
for-profit institutions and tribal entities.
    Estimated Number of Respondents:
CDFI Program Annual Survey: 350
NMTC Program Institution-Level and Transaction-Level Reports: 66
Allocation Agreement (section 4.9): 66
Allocation Agreement (sections 6.2 and 6.9): 5

    Estimated Annual Time Per Respondent:

CDFI Program Annual Survey: 24 hours
NMTC Program Institution-Level and Transaction-Level Reports: 24 hours
Allocation Agreement (section 4.9): 1 hour
Allocation Agreement (sections 6.2 and 6.9): 2 hours
    Estimated Total Annual Burden Hours:

CDFI Program Annual Survey: 8,400 hours
NMTC Program Institution-Level and Transaction-Level Reports: 1,584 
hours
Allocation Agreement (section 4.9): 66 hours
Allocation Agreement (sections 6.2 and 6.9): 10 hours

    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for OMB approval. All 
comments will become a matter of public record. Comments are invited on 
all aspects of the information collections, but commentators may wish 
to focus particular attention on: (a) For NMTC Program allocatees, the 
types of data that allocatees that purchase loans should be required to 
report to demonstrate the community development impact of the loan 
purchase; (b) for NMTC Program allocatees, the types of data that 
allocatees that invest in other CDEs should be required to report to 
demonstrate the community development impact of the second-tier CDE's 
Qualified Active Low-Income Community Business (QALICB) borrowers/
investees; (c) for NMTC allocatees, for which entity (allocatee, 
subsidiary CDE receiving an allocation transfer, and/or CDE investee) 
should the following types of information be reported: characteristics 
of QALICB borrowers/investees, staffing, revenue and expenses, assets 
and liabilities, and capital under management; (d) for NMTC allocatees, 
should information such as characteristics of QALICB borrowers/
investees, staffing, revenue and expenses, assets and liabilities, and 
capital under management be reported for an entity's entire operations 
or only its NMTC-related activities; (e) the portion of the requested 
information that CDFIs and CDEs currently collect and track 
electronically; (f) the effort and cost for CDFIs and CDEs to begin 
collecting and electronically tracking any required information not 
currently collected and tracked electronically (e.g., enhancing 
systems, purchasing new systems); (g) the cost for CDFIs and CDEs to 
operate and maintain the services/systems required to provide the 
required information; (h) the frequency with which the Fund should 
collect transaction-level data (quarterly, semi-annually, or annually); 
(i) ways to enhance the quality, utility, and clarity of the 
information to be collected; (j) whether the collection of information 
is necessary for the proper evaluation of the effectiveness and impact 
of the Fund's programs, including whether the information shall have 
practical utility; (k) ways to minimize the burden of the collection of 
information and (l) the accuracy of the Fund's estimate of the burden 
of the collection of information.
    Comments are also requested on sections 4.9, 6.2, 6.5(c) and 6.9 of 
the draft NMTC Program Allocation Agreement (please note that there is 
no burden anticipated for section 6.5(c) since this collection of 
information is usual and customary for the respondents).

    Authority: 12 U.S.C. 4703, 4703 note, 4707, 4710, 4714, 4717; 26 
U.S.C. 45D; 31 U.S.C. 321; and 12 CFR part 1805.

    Dated: July 9, 2003.
Tony T. Brown,
Director, Community Development Financial Institutions Fund.
[FR Doc. 03-17993 Filed 7-15-03; 8:45 am]
BILLING CODE 4810-70-P