[Federal Register Volume 79, Number 28 (Tuesday, February 11, 2014)]
[Notices]
[Pages 8242-8243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-02882]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY


Proposed Data Collection; Comment Request

AGENCY: Community Development Financial Institutions Fund, Treasury.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: The U.S. 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, Public Law 104-13 (44 U.S.C. 
3506(c)(2)(A)). Currently, the Community Development Financial 
Institutions (CDFI) Fund, Department of the Treasury, is soliciting 
comments concerning the Secondary Loan Monitoring Report, Financial 
Condition Monitoring Report, and Program Impact Monitoring Report for 
the CDFI Bond Guarantee Program. These reporting forms propose the 
collection of vital financial performance data and program related 
information for institutions participating in the CDFI Bond Guarantee 
Program consistent with the requirements for Portfolio Management and 
Loan Monitoring (PMLM) and pursuant to 12 CFR part 1808 (Interim Rule). 
The process for data collection and reporting is expected to take place 
via electronic submission to the CDFI Fund pending the implementation 
of an electronic submission process. Hard copies will also be accepted. 
The reporting forms for the CDFI Bond Guarantee Program may be obtained 
from the CDFI Bond Guarantee Program page of the CDFI Fund's Web site 
at http://www.cdfifund.gov. Unless otherwise defined in this notice, 
the capitalized terms herein are as defined in the Interim Rule.

DATES: Written comments should be received on or before April 14, 2014 
to be assured of consideration. These comments will be considered 
before the CDFI Fund submits a request for Office of Management and 
Budget (OMB) review of the data reporting forms described in this 
notice.

ADDRESSES: Direct all comments to Lisa Jones, CDFI Bond Guarantee 
Program Manager, at the Community Development Financial Institutions 
Fund, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW., 
Washington, DC 20020 by email to [email protected] or by facsimile to 
(202) 508-0083. Please note this is not a toll free number.

FOR FURTHER INFORMATION CONTACT: The Secondary Loan Monitoring Report, 
Financial Condition Monitoring Report, and Program Impact Monitoring 
Report, may be obtained from the CDFI Bond Guarantee Program page of 
the CDFI Fund's Web site at http://www.cdfifund.gov. Requests for 
additional information should be directed to Lisa Jones, CDFI Bond 
Guarantee Program Manager, at the Community Development Financial 
Institutions Fund, U.S. Department of the Treasury, 1500 Pennsylvania 
Avenue NW., Washington, DC 20020 by email to [email protected].

SUPPLEMENTARY INFORMATION: 
    Title: CDFI Bond Guarantee Program Reporting Forms.
    OMB Number: 1559-0044.
    Abstact: The purpose of the CDFI Bond Guarantee Program is to 
support CDFI lending by providing Guarantees for Bonds issued by 
Qualified Issuers as part of a Bond Issue for Eligible Community or 
Economic Development Purposes. The CDFI Bond Guarantee Program provides 
CDFIs with a new source of long-term capital and furthers the mission 
of the CDFI Fund to increase economic opportunity and promote community 
development investments for underserved populations and in distressed 
communities in the United States. The CDFI Fund achieves its mission by 
promoting access to capital and local economic growth by investing in, 
supporting, and training CDFIs.
    The CDFI Fund held two-day application workshops on June 18-19, 
2013 and June 20-21, 2013 in Washington, DC. During these workshops, 
representatives of the Bond Guarantee Program met with potential 
applicants regarding the FY 2013 Qualified Issuer and Guarantee 
Application requirements. Specifically, the workshops explored the 
financial structure of the program, including roles

[[Page 8243]]

of the Qualified Issuer, Program Administrator, and Servicer; reporting 
requirements; and compliance-related activities. Although participants 
in these workshops expressed overall enthusiasm and support for 
conforming to the CDFI Fund's reporting process, they noted a lack of 
substantive data in this area and recommended that the CDFI Fund 
describe and specify its post-issuance information collection practices 
for the CDFI Bond Guarantee Program.
    In compliance with OMB Circular A-129, the CDFI Bond Guarantee 
Program will collect all necessary information to manage the portfolio 
effectively and track progress towards policy goals. The proposed 
reporting forms will add significantly to the Department of the 
Treasury's review and impact analysis on the use of Bond Proceeds in 
underserved communities and support the CDFI Fund in proactively 
managing portfolio risks and performance. Risk detection and mitigation 
are crucial activities for the long-term operation and viability of the 
CDFI Bond Guarantee Program. The Department of the Treasury's authority 
to collect this information and the specified data collection areas and 
parameters are consistent with the annual and periodic financial 
reporting requirements for the CDFI Bond Guarantee Program as defined 
in 12 CFR 1808.619 of the Interim Rule.
    The CDFI Fund currently utilizes its Community Investment Impact 
System (CIIS), which collects data from CDFIs that have received 
monetary awards from the CDFI Fund through several of its other 
programs. CDFI Program and Native American CDFI Assistance (NACA) 
Program awardees are required to report total portfolio and financial 
data for three years. However, there is no standardized data on the 
full universe of Certified CDFIs, especially unregulated loan funds 
that do not have award reporting history. Moreover, non-regulated 
Certified CDFIs frequently utilize disparate accounting methodologies 
and report certain data points, such as borrower defaults and 
delinquencies, in ways that are difficult to compare across 
organizations. Nonprofit Certified CDFIs are yet more difficult to 
compare due to the variety of reporting options available to nonprofit 
institutions under generally accepted accounting principles (GAAP). The 
proposed reports of the CDFI Bond Guarantee Program address this 
challenge in standardized data collection and allow Certified CDFIs to: 
(i) Demonstrate the ability to deploy long-term debt successfully with 
reporting requirements similar to those required of regulated financial 
institutions; (ii) provide a mechanism for accurately assessing 
Certified CDFI credit risk; and (iii) provide capital markets with a 
record of accomplishment on which to base future lending and 
investment.
    Current Actions: New collection.
    Type of Review: Regular review.
    Affected Public: Secondary borrowers, certified CDFIs, and 
qualified issuers.
    Estimated Number of Secondary Borrower Respondents: 75
    Estimated Annual Time per Secondary Borrower Respondent: 5 hours.
    Estimated Number Certified CDFI Respondents: 10.
    Estimated Annual Time per Certified CDFI Respondent: 35 hours.
    Estimated Number of Qualified Issuer Respondents: 10.
    Estimated Annual Time Per Qualified Issuer Respondent: 50 hours.
    Estimated Total Annual Burden Hours: 1225 hours.
    Requests for Comments: Comments submitted in response to this 
notice will be summarized and/or included in the request for Office of 
Management and Budget approval. All comments will become a matter of 
public record and may be published on the CDFI Fund Web site at http://www.cdfifund.gov. Comments are invited on: (a) Whether the collection 
of information is consistent with the stated background and proposed 
use necessary for the proper performance of the functions of the CDFI 
Fund; (b) the accuracy of the CDFI Fund's estimate of the burden of the 
collection of information; (c) ways to enhance the quality, utility, 
and clarity of the information to be collected; (d) ways to minimize 
the burden of the collection of information on respondents, including 
through the use of technology; and (e) estimates of operational or 
maintenance costs to provide information.
    Because standardized information collection similar to the 
reporting requirements of regulated financial institutions will provide 
a more complete picture of program impact and risk and prepare CDFIs 
for access to mainstream capital markets, the CDFI Fund proposes that 
the collection of information be directed to address the following 
questions:
    (1) How are Eligible CDFIs performing in comparison with their 
Capital Distribution Plans and the requirements of the CDFI Bond 
Guarantee Program?
    (2) How does the Secondary Lending activity increase economic 
opportunity and promote community development investments for 
underserved populations and distressed communities in the United 
States?
    (3) What types of Secondary Lending are more prevalent both across 
and within distinct geographical Investment Area(s)? What are the 
trends and impact of such lending?
    (4) What types of borrower entities (based on the compilation of 
race, ethnicity, and other customer profile and socioeconomic 
information) utilize the products and services of Eligible CDFIs? Which 
members of Targeted Population(s) and/or Investment Areas(s) are being 
served? What are the trends and impact of such lending?
    (5) What types of risk are being introduced to the Bond portfolio 
based on the payment history of Secondary Loans and Secondary 
Borrowers?
    (6) What are the financial conditions of Eligible CDFIs and what is 
the result of their operations?
    (7) Are Eligible CDFIs mitigating their financial risks and 
demonstrating compliance with the financial terms and conditions of 
their respective Bond Loan agreements?

    Authority:  12 CFR part 1808.

    Dated: February 5, 2014.
Dennis Nolan,
Deputy Director, Community Development Financial Institutions Fund.
[FR Doc. 2014-02882 Filed 2-10-14; 8:45 am]
BILLING CODE 4810-70-P