[Federal Register Volume 71, Number 47 (Friday, March 10, 2006)]
[Notices]
[Pages 12423-12424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3372]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Amendment of Notice of Allocation Availability (NOAA) for the CY 
2006 Allocation Round of the New Markets Tax Credit Program

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

ACTION: Additional information regarding the administration of New 
Markets Tax Credit allocation authority created by the Gulf Opportunity 
Zone Act of 2005.

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SUMMARY: The Gulf Opportunity Zone Act of 2005 (GO Zone Act or Act) was 
signed into law on December 21, 2005 (Pub. L. 109-135). The GO Zone Act 
provides $1 billion of additional New Markets Tax Credit (NMTC) 
allocation authority for use by Community Development Entities (CDEs) 
with a significant mission of recovery and redevelopment of the Gulf 
Opportunity Zone (GO Zone). The Act makes available an additional $300 
million in allocation authority for each of the calendar year (CY) 2005 
and 2006 allocation rounds and an additional $400 million in allocation 
authority for the CY 2007 allocation round. Pursuant to Section 
45D(f)(3) of the Internal Revenue Code, the Community Development 
Financial Institutions (CDFI) Fund will carry over the CY 2005 
allocation authority to the CY 2006 allocation round that was announced 
by the Notice of Allocation Availability published on July 15, 2005 (70 
FR 41075), as amended on September 14, 2005 (70 FR 54446) (together, 
the NOAA), such that an additional $600 million in allocation authority 
will be available for allocation to applicants in the CY 2006 round of 
the NMTC Program that satisfy the GO Zone allocation eligibility 
requirements set forth below.
    Go Zone Allocation Eligibility: Through this notice, the CDFI Fund 
is not soliciting, nor will it accept, any new applications for the CY 
2006 NMTC Program allocation round. To be eligible to receive an 
allocation from the $600 million of GO Zone allocation authority 
available in the CY 2006 NMTC Program allocation round, an applicant 
must meet all of the following criteria:
    (i) The applicant must have submitted an allocation application by 
the deadline required by the NOAA (or by any deadline extension 
authorized by the CDFI Fund);
    (ii) The applicant must have satisfied all eligibility requirements 
contained in the NOAA (including minimum scoring thresholds set forth 
in section V.B of the NOAA); and
    (iii) The applicant must have a significant mission of recovery and 
redevelopment of the GO Zone. In order to demonstrate a ``significant 
mission of recovery and redevelopment of the GO Zone,'' a CDE must 
have, at a minimum: (A) Indicated (in its response to Question 
12 of the allocation application) that the GO Zone is included 
within its particular geographic service area; (B) specified (in its 
response to Question 29 of the allocation application) that it 
intends to target activities to Low-Income Communities in certain 
Federal Emergency Management Agency (FEMA)-declared disaster areas; and 
(C) demonstrated to the satisfaction of the CDFI Fund that it has 
significant resources in the GO Zone to support its recovery and 
redevelopment efforts and a significant track record of providing 
financing and related services in the GO Zone.

[[Page 12424]]

    The GO Zone is defined in the GO Zone Act as ``that portion of the 
Hurricane Katrina disaster area determined by the President to warrant 
individual or individual and public assistance from the Federal 
Government under the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act by reason of Hurricane Katrina'' (Pub. L. 109-135, 
Section 101). The Hurricane Katrina Disaster Area is defined as ``an 
area with respect to which a major disaster has been declared by the 
President before September 14, 2005, under section 401 of such Act by 
reason of Hurricane Katrina'' (Pub. L. 109-135, Section 101).
    The CDFI Fund will contact each CY 2006 NMTC applicant that 
satisfies items (iii)(A) and (B) above, and ask each such applicant to 
submit responses to a supplemental questionnaire that will help the 
CDFI Fund evaluate whether the applicant has a significant mission of 
recovery and redevelopment in the GO Zone. Such applicants must provide 
the CDFI Fund with responses to the supplemental questionnaire by the 
deadlines established by the CDFI Fund; failure to meet said deadlines 
will result in a determination of ineligibility for a GO Zone 
allocation.
    After the CDFI Fund confirms that the GO Zone is included within an 
applicant's particular geographic service area and that the applicant 
intends to target activities to Low-Income Communities in certain FEMA-
declared disaster areas, then the CDFI Fund reviewers will rate (i) 
whether the applicant has significant resources in the GO Zone to 
support its recovery and redevelopment efforts and (ii) the applicant's 
track record of providing financing and related services in the GO 
Zone.
    In assessing whether the applicant has significant resources in the 
GO Zone to support its recovery and redevelopment efforts, reviewers 
will consider, among other things, the applicant's (or its Controlling 
Entity's) current physical presence in the GO Zone. In assessing an 
applicant's track record of providing financing and related services in 
the GO Zone, reviewers will consider, among other things, the 
applicant's (or its Controlling Entity's) track record of providing 
financing products and services in the GO Zone over the past five 
years.
    Go Zone Allocation Determinations: The CDFI Fund will evaluate and 
score all applications, rank all applicants, and make final allocation 
determinations in accordance with the policies and procedures set forth 
in section V.B of the NOAA and this amendment. Final allocation 
determinations for the $3.5 billion in allocation authority described 
in the NOAA will be awarded prior to allocation determinations for the 
$600 million in GO Zone allocation authority. After the CDFI Fund has 
made its final allocation determinations for the $3.5 billion 
allocation authority, it will make final allocation determinations for 
the GO Zone allocation authority in rank order of score, with priority 
to those applicants that were rated as having the strongest significant 
mission of recovery and redevelopment of the GO Zone but were not 
selected to receive an allocation under the initial $3.5 billion of 
allocation authority. If allocation authority is still available, the 
CDFI Fund may provide additional GO Zone allocation authority to 
eligible applicants that were selected to receive an allocation from 
the initial $3.5 billion, provided the CDFI Fund determines that they 
have the capacity to administer additional allocation authority in the 
GO Zone. Unallocated GO Zone allocation authority, if any, will be 
carried over to the CY 2007 round of the NMTC Program, pursuant to IRC 
45D(f)(3).
    Go Zone Allocation Agreement Terms: All CDEs that are awarded GO 
Zone allocation authority will be required, as a condition of their 
allocation agreements with the CDFI Fund, to invest 100 percent of the 
Qualified Low-Income Community Investments (QLICIs) from the GO Zone 
allocation in the GO Zone. In addition, GO Zone CDEs will be required 
to maintain accountability to the GO Zone through their advisory or 
governing board representation. Additional terms and conditions for GO 
Zone allocation authority will be set forth in the allocation 
agreements.
    All other information and requirements set forth in the NOAA shall 
remain effective, as published.

FOR FURTHER INFORMATION, CONTACT: Applications and other information 
regarding the Fund and its programs may be obtained from the Fund's Web 
site at http://www.cdfifund.gov. The Fund may post on its website 
additional information regarding the special GO Zone allocation 
authority. Applicants may contact the CDFI Fund with questions or to 
obtain technical assistance regarding the GO Zone allocation authority 
as follows:
    A. Information technology support: Technical support can be 
obtained by calling (202) 622-2455 or by e-mail at 
[email protected]. These are not toll free numbers.
    B. Programmatic support: If you have any questions about the 
programmatic requirements of this NOAA amendment, contact the Fund's 
NMTC Program Manager 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.
    C. Administrative support: If you have any questions regarding the 
administrative requirements of this NOAA amendment, contact the Fund's 
Grants Manager by e-mail at [email protected], by 
telephone at (202) 622-8226, by facsimile at (202) 622-6453, or by mail 
at CDFI Fund, 601 13th Street, NW., Suite 200 South, Washington, DC 
20005. These are not toll free numbers.
    D. IRS support: For questions regarding the tax aspects of the NMTC 
Program, contact Branch Five, Office of the Associate Chief Counsel 
(Passthroughs and Special Industries), IRS, by telephone at (202) 622-
3040, by facsimile at (202) 622-4753, or by mail at 1111 Constitution 
Avenue, NW., Attn: CC:PSI:5, Washington, DC 20224. These are not toll 
free numbers.
    E. Legal counsel support: If you have any questions or matters that 
you believe require response by the Fund's Office of Legal Counsel, 
please refer to the document titled ``How to Request a Legal Review,'' 
found on the Fund's Web site at http://www.cdfifund.gov.

    Authority: 26 U.S.C. 45D; 31 U.S.C. 321; 26 CFR 1.45D-1.

    Dated: March 3, 2006.
Arthur A. Garcia,
Director, Community Development Financial Institutions Fund.
[FR Doc. E6-3372 Filed 3-9-06; 8:45 am]
BILLING CODE 4810-70-P