[Federal Register Volume 80, Number 205 (Friday, October 23, 2015)]
[Notices]
[Pages 64495-64505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26971]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Funding Opportunity Title: Notice of Allocation Availability 
(NOAA) Inviting Applications for the Calendar Year (CY) 2015 Allocation 
Round of the New Markets Tax Credit (NMTC) Program

    Announcement Type: Announcement of NMTC allocation availability.

DATES: Electronic applications must be received by 5:00 p.m. ET on 
December 16, 2015. Applications sent by mail, facsimile or other form 
will not be accepted. Please note the Community Development Financial 
Institutions Fund (CDFI Fund) will only accept applications and 
attachments (i.e., the CDE's authorized representative signature page, 
the Controlling Entity's representative signature page, investor 
letters and organizational charts) in electronic form (see Section IV.C 
of this NOAA for more details). Applications must meet all eligibility 
and other requirements and deadlines, as applicable, set forth in this 
NOAA. Any Applicant that is not yet certified as a Community 
Development Entity (CDE) must submit an application for CDE 
certification through the CDFI Fund's Awards Management Information 
System (AMIS) on or before 5:00 p.m. ET on November 6, 2015 (see 
Section III.A.1 of this NOAA for more details on CDE certification).
    Executive Summary: This NOAA is issued in connection with the CY 
2015 allocation round (Allocation Round) of the New Markets Tax Credit 
(NMTC) Program, as authorized by Title I, subtitle C, section 121 of 
the Community Renewal Tax Relief Act of 2000 (Pub. L. 106-554) and 
amended by section 221 of the American Jobs Creation Act of 2004 (Pub. 
L. 108-357), section 101 of the Gulf Opportunity Zone Act of 2005 (Pub. 
L. 108-357), Division A, section 102 of the Tax Relief and Health Care 
Act of 2006 (Pub. L. 109-432), section 733 of the Tax Relief, 
Unemployment Insurance Reauthorization and Job Creation Act of 2010 
(Pub. L. 111-312), section 305 of the American Taxpayer Relief Act of 
2012 (Pub. L. 112-240), and section 115 of the Tax Increase Prevention 
Act of 2014 (Pub. L. 113-295). Through the NMTC Program, the CDFI Fund 
provides authority to CDEs to offer an incentive to investors in the 
form of tax credits over seven years, which is expected to stimulate 
the provision of private investment capital that, in turn, will 
facilitate economic and community development in Low-Income 
Communities. Through this NOAA, the CDFI Fund announces the 
availability of up to $5.0 billion of NMTC investment authority in this 
Allocation Round, subject to Congressional authorization.
    In this NOAA, the CDFI Fund specifically addresses how a CDE may 
apply to receive an allocation of NMTCs, the competitive procedure 
through which NMTC allocations will be made, and the actions that will 
be taken to ensure that proper allocations are made to appropriate 
entities.

I. Allocation Availability Description

    A. Programmatic changes from CY 2014 allocation round:
    1. As a condition of eligibility for this Allocation Round, the 
Applicant will not be permitted the use of the proceeds of Qualified 
Equity Investments (QEIs) to make Qualified Low-Income Community 
Investments (QLICIs) in Qualified Active Low-Income Community 
Businesses (QALICBs) where QLICI proceeds are used to repay or 
refinance any debt or equity provider or a party related to any debt or 
equity provider whose capital was used to fund the QEI except if: (i) 
The QLICI proceeds are used to repay documented reasonable expenditures 
that are directly attributable to the qualified business of the QALICB, 
and such past expenditures were incurred no more than 24 months prior 
to the QLICI closing date; or (ii) no more than five percent of the 
QLICI proceeds are used to repay or refinance prior investment in the 
QALICB. Refinance includes transferring cash or property directly to

[[Page 64496]]

any debt or equity provider or indirectly to a party related to any 
debt or equity provider.
    2. Prior QEI Issuance Requirements: In order to be eligible to 
apply for a NMTC allocation in this Allocation Round, as described in 
Section III.A.3(a), any Applicant that received a NMTC allocation award 
in a previous Allocation round is required to meet the corresponding 
minimum Qualified Equity Investment (QEI) issuance threshold with 
respect to its prior-year allocation. These thresholds and deadlines 
have been revised in comparison to the CY 2014 NOAA.
    B. Program guidance and regulations: This NOAA describes 
application and allocation requirements for this Allocation Round of 
the NMTC Program and should be read in conjunction with: (i) Guidance 
published by the CDFI Fund on how an entity may apply to become 
certified as a CDE (66 Federal Register 65806, December 20, 2001); (ii) 
the final regulations issued by the Internal Revenue Service (the IRS) 
(26 CFR 1.45D-1, published on December 28, 2004), as amended and 
related guidance, notices and other publications; and (iii) the 
application and related materials for this Allocation Round. All such 
materials may be found on the CDFI Fund's Web site at https://www.cdfifund.gov. The CDFI Fund encourages Applicants to review these 
documents. Capitalized terms used, but not defined, in this NOAA have 
the respective meanings assigned to them in the NMTC Program Allocation 
application, IRC Sec.  45D or the IRS regulations. In the event of any 
inconsistency between this NOAA, the allocation application, and 
guidance issued by the CDFI Fund thereto, IRC Sec.  45D or the IRS 
regulations, the provisions of IRC Sec.  45D and the IRS regulations 
shall govern.

II. Allocation Information

    A. Allocation amounts: Pursuant to the Act, the CDFI Fund expects 
that it may allocate to CDEs the authority to issue to their investors 
up to the aggregate amount of $5.0 billion in equity as to which NMTCs 
may be claimed, as permitted under IRC Sec.  45D(f)(1)(D). Pursuant to 
this NOAA, the CDFI Fund anticipates that it will not issue more than 
$125 million in tax credit investment authority per Allocatee. The CDFI 
Fund, in its sole discretion, reserves the right to allocate amounts in 
excess of or less than the anticipated maximum allocation amount should 
the CDFI Fund deem it appropriate. In order to receive an allocation in 
excess of the $125 million cap, an Applicant, at a minimum, must 
demonstrate that: (i) No part of its strategy can be successfully 
implemented without an allocation in excess of the applicable cap; and/
or (ii) its strategy will produce extraordinary community outcomes. The 
CDFI Fund reserves the right to allocate NMTC authority to any, all, or 
none of the entities that submit applications in response to this NOAA, 
and in any amounts it deems appropriate.
    B. Type of award: NMTC Program awards are made in the form of 
allocations of tax credit investment authority.
    C. Allocation Agreement: Each Allocatee must sign an Allocation 
Agreement, which must be countersigned by the CDFI Fund, before the 
NMTC allocation is effective. The Allocation Agreement contains the 
terms and conditions of the NMTC allocation. For further information, 
see Section VI of this NOAA.

III. Eligibility

    A. Eligible Applicants: IRC Sec.  45D specifies certain eligibility 
requirements that each Applicant must meet to be eligible to apply for 
an allocation of NMTCs. The following sets forth additional detail and 
certain additional dates that relate to the submission of applications 
under this NOAA for the available NMTC investment authority.
    1. CDE certification: For purposes of this NOAA, the CDFI Fund will 
not consider an application for an allocation of NMTCs unless: (a) The 
Applicant is certified as a CDE at the time the CDFI Fund receives its 
NMTC Program allocation application; or (b) the Applicant submits an 
application for certification as a CDE through the CDFI Fund's Awards 
Management Information System (AMIS) on or before 5:00 p.m. ET on 
November 6, 2015. Applicants for CDE certification may obtain 
information regarding CDE certification and the CDE certification 
application process in AMIS on the CDFI Fund's Web site at https://www.cdfifund.gov. Applications for CDE certification must be submitted 
in AMIS. Paper versions of the CDE certification application will not 
be accepted.
    The CDFI Fund will not provide NMTC allocation authority to 
Applicants that are not certified as CDEs or to entities that are 
certified as Subsidiary CDEs.
    If an Applicant that has already been certified as a CDE wishes to 
change its designated CDE Service Area, it must submit its request for 
such change to the CDFI Fund, and the request must be received by the 
CDFI Fund by 5:00 p.m. ET on November 6, 2015. A request to change a 
CDE's Service Area must be submitted through the CDFI Fund's Awards 
Management Information System (AMIS) as a Service Request. Such 
requests will need to include, at a minimum, the applicable CDE control 
number, the revised service area designation, and updated 
accountability information that demonstrates that the CDE has the 
required representation from Low-Income Communities in the revised 
Service Area.
    2. As a condition of eligibility for this Allocation Round, the 
Applicant will not be permitted the use of the proceeds of Qualified 
Equity Investments (QEIs) to make Qualified Low-Income Community 
Investments (QLICIs) in Qualified Active Low-Income Community 
Businesses (QALICBs) where QLICI proceeds are used to repay or 
refinance any debt or equity provider or a party related to any debt or 
equity provider whose capital was used to fund the QEI except if: (i) 
The QLICI proceeds are used to repay documented reasonable expenditures 
that are directly attributable to the qualified business of the QALICB, 
and such past expenditures were incurred no more than 24 months prior 
to the QLICI closing date; or (ii) no more than five percent of the 
QLICI proceeds are used to repay or refinance prior investment in the 
QALICB. Refinance includes transferring cash or property directly to 
any debt or equity provider or indirectly to a party related to any 
debt or equity provider.
    3. Prior award recipients or Allocatees: Applicants must be aware 
that success in a prior application or allocation round of any of the 
CDFI Fund's programs is not indicative of success under this NOAA. For 
purposes of this section, the CDFI Fund will consider an Affiliate to 
be any entity that meets the definition of Affiliate as defined in the 
NMTC allocation application materials, or any entity otherwise 
identified as an Affiliate by the Applicant in its NMTC allocation 
application materials. Prior award recipients of any CDFI Fund program 
are eligible to apply under this NOAA, except as follows:
    (a) Prior Allocatees and Qualified Equity Investment (QEI) issuance 
requirements: The following describes the QEI issuance requirements 
applicable to prior Allocatees.
    An Allocatee in the CY 2010 allocation round of the NMTC Program is 
not eligible to receive a NMTC allocation pursuant to this NOAA unless 
the Allocatee is able to affirmatively demonstrate that, as of 11:59 
p.m. ET on January 29, 2016, it has finalized at least 95 percent of 
its

[[Page 64497]]

QEIs relating to its CY 2010 NMTC allocation.
    An Allocatee in the CY 2011 allocation round of the NMTC Program is 
not eligible to receive a NMTC allocation pursuant to this NOAA unless 
the Allocatee is able to affirmatively demonstrate that, as of 11:59 
p.m. ET on January 29, 2016, it has: (i) Finalized at least 80 percent 
of its QEIs relating to its CY 2011 NMTC allocation; or (ii) it has 
finalized at least 70 percent of its QEIs and that at least 100 percent 
of its total CY 2011 NMTC allocation has been finalized, or has been 
committed by its investors.
    An Allocatee in the CY 2012 allocation round of the NMTC Program is 
not eligible to receive a NMTC allocation pursuant to this NOAA unless 
the Allocatee is able to affirmatively demonstrate that, as of 11:59 
p.m. ET on January 29, 2016, it has: (i) Finalized at least 70 percent 
of its QEIs relating to its CY 2012 NMTC allocation; or (ii) it has 
finalized at least 60 percent of its QEIs and that at least 80 percent 
of its total CY 2012 NMTC allocation has been finalized, or has been 
committed by its investors.
    An Allocatee (with the exception of a Rural CDE Allocatee) in the 
CY 2013 allocation round of the NMTC Program is not eligible to receive 
a NMTC allocation pursuant to this NOAA unless the Allocatee is able to 
affirmatively demonstrate that, as of 11:59 p.m. ET on January 29, 
2016, it has: (i) Finalized at least 50 percent of its QEIs relating to 
its CY 2013 NMTC allocation; or (ii) it has finalized at least 40 
percent of its QEIs and that at least 60 percent of its total CY 2013 
NMTC allocation has been finalized, or has been committed by its 
investors. A prior Rural CDE Allocatee in the CY 2013 is not eligible 
to receive a NMTC allocation pursuant to this NOAA unless the Allocatee 
can demonstrate that, as of 11:59 p.m. ET on January 29, 2016, it has 
finalized at least 30 percent of its CY 2013 NMTC Allocation.
    An Allocatee (with the exception of a Rural CDE Allocatee) in the 
CY 2014 allocation round of the NMTC Program is not eligible to receive 
a NMTC allocation pursuant to this NOAA unless the Allocatee is able to 
affirmatively demonstrate that, as of 11:59 p.m. ET on January 29, 
2016, it has: (i) Finalized at least 30 percent of its QEIs relating to 
its CY 2014 NMTC allocation; or (ii) finalized at least 20 percent of 
its QEIs and that at least 50 percent of its total CY 2014 NMTC 
allocation has been finalized, or has been committed by its investors. 
A Rural CDE is not required to meet the above QEI issuance and 
commitment thresholds with regard to its CY 2014 NMTC allocation award.
    Alternatively, an Applicant that has received multiple NMTC 
allocations between CY 2010 and CY 2014 can also meet the QEI issuance 
requirements on a cumulative basis. If an Applicant has received 
multiple NMTC allocation awards between CY 2010 and CY 2014, the 
Applicant shall be deemed to be eligible to apply for a NMTC allocation 
pursuant to this NOAA if the Applicant is able to affirmatively 
demonstrate that, as of 11:59 p.m. ET on January 29, 2016, it has 
finalized at least 90 percent of its QEIs relating to its cumulative 
allocation amounts from these prior NMTC Program rounds. Rural CDEs 
that received allocations under the CY 2013 allocation round may choose 
to exclude such allocations from this cumulative calculation, provided 
that the Allocatee has finalized at least 20 percent of its QEIs 
relating to its CY 2013 allocation. Rural CDEs that received 
allocations under the CY 2014 allocation round may choose to exclude 
such allocation from this cumulative calculation.
    In addition to the requirements described above, an entity is not 
eligible to receive a NMTC allocation pursuant to this NOAA if an 
Affiliate of the Applicant is a prior Allocatee and has not met the 
requirements for the issuance and/or commitment of QEIs as set forth 
above for the Allocatees in the prior allocation rounds of the NMTC 
Program.
    For purposes of this section of the NOAA, the CDFI Fund will only 
recognize as ``finalized'' those QEIs that have been properly reported 
in the CDFI Fund's Allocation Tracking System (ATS) by the deadlines 
specified above. Allocatees and their Subsidiary Allocatees, if any, 
are advised to access ATS to record each QEI that they issue to an 
investor in exchange for funds in-hand. For purposes of this section of 
the NOAA, ``committed'' QEIs are only those Equity Investments that are 
evidenced by a written, signed document in which an investor: (i) 
Commits to make a QEI in the Allocatee in a specified amount and on 
specified terms; (ii) has made an initial disbursement of the 
investment proceeds to the Allocatee, and such initial disbursement has 
been recorded in ATS as a QEI; (iii) commits to disburse the remaining 
investment proceeds to the Allocatee based on specified amounts and 
payment dates; and (iv) commits to make the final disbursement to the 
Allocatee no later than January 29, 2018.
    The Applicant will be required, upon notification from the CDFI 
Fund, to submit adequate documentation to substantiate the required 
issuances of and commitments for QEIs.
    Applicants should be aware that these QEI issuance requirements 
represent the minimum threshold requirements that must be met in order 
to submit an application for assistance under this NOAA. As stated in 
Section V.C.1 of this NOAA, the CDFI Fund reserves the right to reject 
an application and/or adjust award amounts as appropriate based on 
information obtained during the review process--including an 
Applicant's track record of raising QEIs and/or deploying its Qualified 
Low Income Community Investments (QLICIs).
    Any prior Allocatees that requires any action by the CDFI Fund 
(i.e., certifying a subsidiary entity as a CDE; adding a subsidiary CDE 
to an Allocation Agreement; etc.) in order to meet the QEI issuance 
requirements above must submit a Certification Application for 
subsidiary CDEs by no later than November 6, 2015 and Allocation 
Agreement Amendment requests by no later than December 31, 2015 in 
order to guarantee that the CDFI Fund completes all necessary approvals 
prior to January 29, 2016. Applicants for CDE certification may obtain 
information regarding CDE certification and the CDE certification 
application process in AMIS on the CDFI Fund's Web site at https://www.cdfifund.gov. Applications for CDE certification must be submitted 
in AMIS. Paper versions of the CDE certification application will not 
be accepted.
    (b) Pending determination of noncompliance or default: If an 
Applicant is a prior award recipient or Allocatee under any CDFI Fund 
program and if: (i) It has submitted reports to the CDFI Fund that 
demonstrate potential noncompliance with or default under a previous 
assistance, award or Allocation Agreement; and (ii) the CDFI Fund has 
yet to make a final determination as to whether the entity is in 
noncompliance or default of its previous assistance, award or 
Allocation Agreement, the CDFI Fund will consider the Applicant's 
application under this NOAA pending final determination of whether the 
entity is in noncompliance or default, in the sole determination of the 
CDFI Fund. Further, if an Affiliate of the Applicant is a prior CDFI 
Fund award recipient or Allocatee and if such entity: (i) Has submitted 
reports to the CDFI Fund that demonstrate potential noncompliance with 
or default under a previous assistance, award or Allocation Agreement; 
and (ii) the CDFI Fund has yet to make a final determination as to 
whether the entity is in noncompliance

[[Page 64498]]

or default of its previous assistance, award or Allocation Agreement, 
the CDFI Fund will consider the Applicant's application under this NOAA 
pending final determination of whether the entity is in noncompliance 
or default, in the sole determination of the CDFI Fund.
    Any Applicant or Affiliate that is in default of its previously 
executed Allocation Agreement is deemed ineligible under this NOAA if: 
(i) The CDFI Fund has made a determination that such Applicant is in 
default of a previously executed Allocation Agreement and (ii) the CDFI 
Fund has provided written notification of such determination to the 
Applicant. Moreover, any Applicant that is otherwise eligible as of the 
application deadline must continue to be compliant with its Allocation 
Agreement(s) after the application deadline, in order for the CDFI Fund 
to continue evaluating its application. If an Applicant fails to do 
such, the CDFI Fund will no longer deem the Applicant eligible.
    (c) Default status: The CDFI Fund will not consider an application 
submitted by an Applicant that is a prior CDFI Fund award recipient or 
Allocatee under any CDFI Fund program if, as of the application 
deadline of this NOAA: (i) The CDFI Fund has made a determination that 
such Applicant is in default of a previously executed assistance, 
allocation, or award agreement; (ii) the CDFI Fund has provided written 
notification of such determination to the Applicant; and (iii) the 
application deadline of the NOAA is within a period of time specified 
in the CDFI Fund's notification to the prior CDFI Fund award recipient 
or Allocatee for which any new application from the Applicant to the 
CDFI Fund for an award, allocation, or assistance is prohibited. 
Further, the CDFI Fund will not consider an application submitted by an 
Applicant for which there is an Affiliate that is a prior award 
recipient or Allocatee under any CDFI Fund Program if, as of the 
application deadline of this NOAA: (i) The CDFI Fund has made a 
determination that such Affiliate is in default of a previously 
executed assistance, allocation, or award agreement; (ii) the CDFI Fund 
has provided written notification of such determination to the 
Affiliate; and (iii) the application deadline of the NOAA is within a 
period of time specified in a notification to the prior CDFI Fund award 
recipient or Allocatee for which any new application from the Affiliate 
to the CDFI Fund for an award, allocation, or assistance is prohibited.
    (d) Undisbursed award funds: The CDFI Fund will not consider an 
application submitted by an Applicant that is a prior award recipient 
under the CDFI Program (CDFI), Native Initiatives (NI), and Bank 
Enterprise Award (BEA) Program if the Applicant has a balance of 
undisbursed award funds (defined below) under said prior award(s), as 
of the applicable application deadline of this NOAA. Furthermore, an 
entity is not eligible to apply for an award pursuant to this NOAA if 
an Affiliate of the Applicant is a prior award recipient under any CDFI 
Fund program, and has a balance of undisbursed award funds under said 
prior award(s), as of the applicable application deadline of this NOAA. 
In a case where an Affiliate of the Applicant is a prior award 
recipient under any CDFI Fund program and has a balance of undisbursed 
award funds under said prior award(s) as of the applicable application 
deadline of this NOAA, the CDFI Fund will include the combined awards 
of the Applicant and such Affiliated entities when calculating the 
amount of undisbursed award funds.
    For purposes of the calculation of undisbursed award funds for the 
BEA Program, only awards made to the Applicant (and any Affiliates) 
three to five calendar years prior to the end of the calendar year of 
the application deadline of this NOAA are included (``includable BEA 
awards''). Thus, for purposes of this NOAA, undisbursed BEA Program 
award funds are the amount of FYs 2010, 2011, 2012 awards that remain 
undisbursed as of the application deadline of this NOAA.
    For purposes of the calculation of undisbursed award funds for the 
CDFI Program and the NI, only awards made to the Applicant (and any 
entity that Controls the Applicant, is Controlled by the Applicant or 
shares common management officials with the Applicant, as determined by 
the CDFI Fund) two to five calendar years prior to the end of the 
calendar year of the application deadline of this NOAA are included 
(``includable CDFI/NI awards''). Thus, for purposes of this NOAA, 
undisbursed CDFI Program and NI awards are the amount of FYs 2010, 
2011, 2012, and 2013 awards that remain undisbursed as of the 
application deadline of this NOAA.
    To calculate total includable BEA/CDFI/NI awards: Amounts that are 
undisbursed as of the application deadline of this NOAA cannot exceed 
five percent (5%) of the total includable awards. Please refer to an 
example of this calculation in the Round Allocation Application Q&A 
document, available on the CDFI Fund's Web site.
    The ``undisbursed award funds'' calculation does not include: (i) 
NMTC allocation authority; (ii) any award funds for which the CDFI Fund 
received a full and complete disbursement request from the award 
recipient by the applicable application deadline of this NOAA; (iii) 
any award funds for an award that has been terminated, in writing, by 
the CDFI Fund or de-obligated by the CDFI Fund; or (iv) any award funds 
for an award that does not have a fully executed assistance or award 
agreement. The CDFI Fund strongly encourages Applicants requesting 
disbursements of ``undisbursed funds'' from prior awards to provide the 
CDFI Fund with a complete disbursement request at least 30 business 
days prior to the application deadline of this NOAA.
    (e) Contact the CDFI Fund: Accordingly, Applicants that are prior 
award recipients and/or Allocatees under any other CDFI Fund program 
are advised to: (i) Comply with the requirements specified in 
assistance, allocation and/or award agreement(s), and (ii) contact the 
CDFI Fund as necessary to ensure that all required actions are underway 
for the disbursement of any outstanding balance of a prior award(s). 
All outstanding reports and compliance questions should be directed to 
the Office of Certification, Compliance Monitoring, and Evaluation 
through a Service Request initiated in AMIS. All disbursement questions 
related to the CDFI and NACA Programs should be directed to the CDFI 
Fund Help Desk by telephone at (202) 653-0421 (Option 1 for CDFI 
Program, Option 2 for the NACA Program) or via email at 
[email protected]. All disbursement questions related to the BEA 
Program should be directed to the CDFI Fund Help Desk by telephone at 
(202) 653-0421 (Option 4 for BEA Program) or via email at 
[email protected]. Requests submitted less than thirty calendar 
days prior to the application deadline may not receive a response 
before the application deadline.
    The CDFI Fund will respond to Applicants' reporting, compliance or 
disbursement questions between the hours of 9:00 a.m. and 5:00 p.m. ET, 
starting the date of publication of this NOAA through December 14, 2015 
(two days before the application deadline). The CDFI Fund will not 
respond to Applicants' reporting, compliance, CDE certification, or 
disbursement phone calls or email inquiries that are received after 
5:00 p.m. ET on December 14, 2015 until after the funding application 
deadline of December 16, 2015.

[[Page 64499]]

    4. Failure to accurately respond to a question in the Assurances 
and Certifications section of the application and submit the required 
written explanation: In its sole discretion, the CDFI Fund may deem the 
Applicant's application ineligible, if the CDFI Fund determines that 
the Applicant inaccurately responded to a question and failed to submit 
a required written explanation, or accurately answered a question yet 
failed to submit a required written explanation, with respect to the 
application Assurances and Certifications. In making this 
determination, the CDFI Fund will take into consideration, among other 
factors, the materiality of the question, the substance of any 
supplemental responses provided, and whether the information in the 
Applicant's supplemental responses will have a material adverse effect 
on the Applicant, its financial condition or its ability to perform 
under an allocation agreement, should the Applicant receive an 
allocation.
    5. Entities that propose to transfer NMTCs to Subsidiaries: Both 
for-profit and non-profit CDEs may apply for NMTC allocation authority, 
but only a for-profit CDE is permitted to provide NMTCs to its 
investors. A non-profit Applicant wishing to apply for a NMTC 
allocation must demonstrate, prior to entering into an Allocation 
Agreement with the CDFI Fund, that: (i) It controls one or more 
Subsidiaries that are for-profit entities; and (ii) it intends to 
transfer the full amount of any NMTC allocation it receives to said 
Subsidiaries.
    An Applicant wishing to transfer all or a portion of its NMTC 
allocation to a Subsidiary is not required to create the Subsidiary 
prior to submitting a NMTC allocation application to the CDFI Fund. 
However, the Subsidiary entities must be certified as CDEs by the CDFI 
Fund, and enjoined as parties to the Allocation Agreement at closing or 
by amendment to the Allocation Agreement after closing. Before the NMTC 
allocation transfer may occur it must be pre-approved by the CDFI Fund, 
in its sole discretion.
    The CDFI Fund strongly encourages a non-profit Applicant to submit 
a CDE certification application to the CDFI Fund on behalf of at least 
one Subsidiary within 60 days after the non-profit Applicant receives 
the Notice of Allocation (NOA) from the CDFI Fund, as such Subsidiary 
must be certified as a CDE prior to entering into an Allocation 
Agreement with the CDFI Fund. A non-profit Applicant that does not 
already have a certified for-profit Subsidiary and that fails to submit 
a certification application for one or more for-profit Subsidiaries 
within 60 days of the date of the NOA from the CDFI Fund is subject to 
the CDFI Fund rescinding the award.
    6. Entities that submit applications together with Affiliates; 
applications from common enterprises:
    (a) As part of the allocation application review process, the CDFI 
Fund will evaluate whether Applicants are Affiliates, as such term is 
defined in the allocation application. If an Applicant and its 
Affiliate(s) wish to submit allocation applications, they must do so 
collectively, in one application; an Applicant and its Affiliate(s) may 
not submit separate allocation applications. If Affiliated entities 
submit multiple applications, the CDFI Fund will reject all such 
applications received, except for those State-owned or State-controlled 
governmental Affiliated entities. In the case of State-owned or State-
controlled governmental entities, the CDFI Fund may accept applications 
submitted by different government bodies within the same State, but 
only to the extent the CDFI Fund determines that the business 
strategies and/or activities described in such applications, submitted 
by separate entities, are distinctly dissimilar and/or are operated 
and/or managed by distinctly dissimilar personnel, including staff, 
board members or identified consultants. If the CDFI Fund determines 
that the applications submitted by different government bodies in the 
same State are not distinctly dissimilar and/or operated and/or managed 
by distinctly dissimilar personnel, it will reject all such 
applications. In such cases, the CDFI Fund reserves the right to limit 
award amounts to such entities to ensure that the entities do not 
collectively receive more than the $125 million cap.
    (b) For purposes of this NOAA, the CDFI Fund will also evaluate 
whether each Applicant is operated or managed as a ``common 
enterprise'' with another Applicant in this Allocation Round using the 
following indicia, among others: (i) Whether different Applicants have 
the same individual(s), including the Authorized Representative, staff, 
board members and/or consultants, involved in day-to-day management, 
operations and/or investment responsibilities; (ii) whether the 
Applicants have business strategies and/or proposed activities that are 
so similar or so closely related that, in fact or effect, they may be 
viewed as a single entity; and/or (iii) whether the applications 
submitted by separate Applicants contain significant narrative, textual 
or other similarities such that they may, in fact or effect, be viewed 
as substantially identical applications. In such cases, the CDFI Fund 
will reject all applications received from such entities.
    (c) Furthermore, an Applicant that receives an allocation in this 
Allocation Round (or its Subsidiary Allocatee) may not become an 
Affiliate of or member of a common enterprise (as defined above) with 
another Applicant that receives an allocation in this Allocation Round 
(or its Subsidiary Allocatee) at any time after the submission of an 
allocation application under this NOAA. This prohibition, however, 
generally does not apply to entities that are commonly Controlled 
solely because of common ownership by QEI investors. This requirement 
will also be a term and condition of the Allocation Agreement (see 
Section VI.B of this NOAA and additional application guidance materials 
on the CDFI Fund's Web site at https://www.cdfifund.gov for more 
details).
    7. Entities created as a series of funds: An Applicant whose 
business structure consists of an entity with a series of funds must 
apply for CDE certification for each fund. If such an Applicant 
represents that it is properly classified for Federal tax purposes as a 
single partnership or corporation, it may apply for CDE certification 
as a single entity. If an Applicant represents that it is properly 
classified for Federal tax purposes as multiple partnerships or 
corporations, then it must submit a CDE certification application for 
the Applicant and each fund it would like to participate in the NMTC 
Program, and each fund must be separately certified as a CDE. 
Applicants should note, however, that receipt of CDE certification as a 
single entity or as multiple entities is not a determination that an 
Applicant and its related funds are properly classified as a single 
entity or as multiple entities for Federal tax purposes. Regardless of 
whether the series of funds is classified as a single partnership or 
corporation or as multiple partnerships or corporations, an Applicant 
may not transfer any NMTC allocations it receives to one or more of its 
funds unless the fund is a certified CDE that is a Subsidiary of the 
Applicant, enjoined to the Allocation Agreement as a Subsidiary 
Allocatee.
    8. Entities that are BEA Program award recipients: An insured 
depository institution investor (and its Affiliates and Subsidiaries) 
may not receive a NMTC allocation in addition to a BEA Program award 
for the same investment in a CDE. Likewise, an insured depository 
institution investor (and its Affiliates and Subsidiaries) may not 
receive a BEA Program award in

[[Page 64500]]

addition to a NMTC allocation for the same investment in a CDE.

IV. Application and Submission Information

    A. Address to request application package: Applicants must submit 
applications electronically under this NOAA, through the CDFI Fund Web 
site. Following the publication of this NOAA, the CDFI Fund will make 
the electronic allocation application available on its Web site at 
https://www.cdfifund.gov. Applications sent by mail, facsimile or other 
form will not be accepted. Please note the CDFI Fund will only accept 
the application and attachments (i.e., the Applicant's authorized 
representative signature page, the Controlling Entity's representative 
signature page, investor letters and organizational charts) in 
electronic form.
    B. Application content requirements: Detailed application content 
requirements are found in the application related to this NOAA. 
Applicants must submit all materials described in and required by the 
application by the applicable deadlines. Applicants will not be 
afforded an opportunity to provide any missing materials or 
documentation, except, if necessary and at the request of the CDFI 
Fund. Electronic applications must be submitted solely by using the 
format made available at the CDFI Fund's Web site. Additional 
information, including instructions relating to the submission of 
supporting information (i.e., the Applicant's authorized representative 
signature page, the Controlling Entity's representative signature page, 
investor letters and organizational charts), is set forth in further 
detail in the electronic application. An application must include a 
valid and current Employer Identification Number (EIN) issued by the 
Internal Revenue Service (IRS) and assigned to the Applicant and, if 
applicable, its Controlling Entity. Electronic applications without a 
valid EIN are incomplete and cannot be transmitted to the CDFI Fund. 
For more information on obtaining an EIN, please contact the IRS at 
(800) 829-4933 or www.irs.gov. Do not include any personal Social 
Security Numbers as part of the application.
    An Applicant may not submit more than one application in response 
to this NOAA. In addition, as stated in Section III.A.6 of this NOAA, 
an Applicant and its Affiliates must collectively submit only one 
allocation application; an Applicant and its Affiliates may not submit 
separate allocation applications except as outlined in Section III.A.6 
above. Once an application is submitted, an Applicant will not be 
allowed to change any element of its application.
    C. Form of application submission: Applicants may only submit 
applications under this NOAA electronically. Applications sent by 
facsimile or by email will not be accepted. Submission of an electronic 
application will facilitate the processing and review of applications 
and the selection of Allocatees; further, it will assist the CDFI Fund 
in the implementation of electronic reporting requirements.
    1. Electronic applications: Electronic applications must be 
submitted solely by using the CDFI Fund's Web site and must be sent in 
accordance with the submission instructions provided in the electronic 
application form. The CDFI Fund recommends use of Internet Explorer 
version 8 or higher on a Microsoft Windows-based computer (Windows 
Vista or higher), and optimally at least a 56Kbps Internet connection 
in order to meet the electronic application submission requirements. 
Use of other browsers (i.e., Firefox, Chrome, Safari), other versions 
of Internet Explorer, or other systems (i.e., Mac) might result in 
problems during submission of the application. The CDFI Fund's 
electronic application system will only permit the submission of 
applications in which all required questions and tables are fully 
completed. Additional information, including instructions relating to 
the submission of supporting information (i.e., the Applicant's 
authorized representative signature page, the Controlling Entity's 
representative signature page, investor letters and organizational 
charts) is set forth in further detail in the electronic application 
and the Online Application Instructions for this Allocation Round.
    D. Application submission dates and times:
    1. Application deadlines:
    (a) Electronic applications: Must be received by 5:00 p.m. ET on 
December 16, 2015. Electronic applications cannot be transmitted or 
received after 5:00 p.m. ET on December 16, 2015. In addition, 
Applicants must separately submit supporting information (i.e., the 
Applicant's authorized representative signature page, the Controlling 
Entity's representative signature page, investor letters and 
organizational charts) via their myCDFIFund account. The Applicant's 
authorized representative signature page, the Controlling Entity's 
representative signature page, investor letters and organizational 
charts must be submitted on or before 11:59 p.m. on December 18, 2015. 
Attachments may not exceed a size limit of 5 megabytes (MB). See 
application instructions, provided in the electronic application and 
the Round Allocation Application Q&A, for further detail. Applications 
and other required documents received after this date and time will be 
rejected. If the Applicant's authorized representative signature page 
is not received by the deadline specified above, the CDFI Fund reserves 
the right to reject the application. Please note that the document 
submission deadlines in this NOAA and/or the allocation application are 
strictly enforced.
    E. Intergovernmental Review: Not applicable.
    F. Funding Restrictions: For allowable uses of investment proceeds 
related to a NMTC allocation, please see 26 U.S.C. 45D and the final 
regulations issued by the Internal Revenue Service (26 CFR 1.45D-1, 
published December 28, 2004 and as amended) and related guidance. 
Please see Section I, above, for the Programmatic Changes of this NOAA.
    G. Paperwork Reduction: Under the Paperwork Reduction Act (44 
U.S.C. chapter 35), an agency may not conduct or sponsor a collection 
of information, and an individual is not required to respond to a 
collection of information, unless it displays a valid OMB control 
number. Pursuant to the Paperwork Reduction Act, the application has 
been assigned the following control number: 1559-0016.

V. Application Review Information

    A. Review and selection process: All allocation applications will 
be reviewed for eligibility and completeness. To be complete, the 
application must contain, at a minimum, all information described as 
required in the application form. An incomplete application will be 
rejected. Once the application has been determined to be eligible and 
complete, the CDFI Fund will conduct the substantive review of each 
application in two parts (Phase 1 and Phase 2) in accordance with the 
criteria and procedures generally described in this NOAA and the 
allocation application.
    In Phase 1, three reviewers will evaluate and score the Business 
Strategy and Community Outcomes sections of each application. An 
Applicant must exceed a minimum overall aggregate base score threshold 
and exceed a minimum aggregate section score threshold in each scored 
section in order to advance from the Phase 1 to the Phase 2 part of the 
substantive review process. In Phase 2, the CDFI Fund will rank 
Applicants and determine the dollar amount of allocation authority 
awarded in accordance with the procedures set forth below.

[[Page 64501]]

    B. Criteria:
    1. Business Strategy (25-point maximum):
    (a) When assessing an Applicant's business strategy, reviewers will 
consider, among other things: The Applicant's products, services and 
investment criteria; the prior performance of the Applicant or its 
Controlling Entity, particularly as it relates to making similar kinds 
of investments as those it proposes to make with the proceeds of QEIs; 
the Applicant's prior performance in providing capital or technical 
assistance to disadvantaged businesses or communities; the projected 
level of the Applicant's pipeline of potential investments; the extent 
to which the Applicant intends to make QLICIs in one or more businesses 
in which persons unrelated to the entity hold a majority equity 
interest; and the extent to which Applicants that otherwise have 
notable relationships with the Qualified Active Low Income Community 
Businesses (QALICBs) financed will create benefits (beyond those 
created in the normal course of a NMTC transaction) to Low-Income 
Communities.
    Under the Business Strategy criterion, an Applicant will generally 
score well to the extent that it will deploy debt or investment capital 
in products or services which are flexible or non-traditional in form 
and on better terms than available in the marketplace. An Applicant 
will also score well to the extent that, among other things: (i) It has 
a track record of successfully deploying loans or equity investments 
and providing services similar to those it intends to provide with the 
proceeds of QEIs; (ii) it has identified a set of clearly-defined 
potential borrowers or investees; (iii) its projected dollar volume of 
NMTC deployment is supported by its track record of deployment; (iv) in 
the case of an Applicant proposing to purchase loans from CDEs, the 
Applicant will require the CDE selling such loans to re-invest the 
proceeds of the loan sale to provide additional products and services 
to Low-Income Communities.
    (b) Priority Points: In addition, as provided by IRC Sec.  
45D(f)(2), the CDFI Fund will ascribe additional points to entities 
that meet one or both of the statutory priorities. First, the CDFI Fund 
will give up to five (5) additional points to any Applicant that has a 
record of having successfully provided capital or technical assistance 
to disadvantaged businesses or communities. Second, the CDFI Fund will 
give five (5) additional points to any Applicant that intends to 
satisfy the requirement of IRC Sec.  45D(b)(1)(B) by making QLICIs in 
one or more businesses in which persons unrelated (within the meaning 
of IRC Sec.  267(b) or IRC Sec.  707(b)(1)) to an Applicant (or the 
Applicant's subsidiary CDEs) hold the majority equity interest. 
Applicants may earn points for one or both statutory priorities. Thus, 
Applicants that meet the requirements of both priority categories can 
receive up to a total of ten (10) additional points. A record of having 
successfully provided capital or technical assistance to disadvantaged 
businesses or communities may be demonstrated either by the past 
actions of an Applicant itself or by its Controlling Entity (i.e., 
where a new CDE is established by a nonprofit corporation with a 
history of providing assistance to disadvantaged communities). An 
Applicant that receives additional points for intending to make 
investments in unrelated businesses and is awarded a NMTC allocation 
must meet the requirements of IRC Sec.  45D(b)(1)(B) by investing 
substantially all of the proceeds from its QEIs in unrelated 
businesses. The CDFI Fund will factor in an Applicant's priority points 
when ranking Applicants during Phase 2 of the review process, as 
described below.
    2. Community Outcomes (25-point maximum): In assessing the 
potential benefits to Low-Income Communities that may result from the 
Applicant's proposed investments, reviewers will consider, among other 
things, the degree to which the Applicant is likely to: (i) Achieve 
significant and measurable community development outcomes in its Low-
Income Communities; (ii) invest in particularly economically distressed 
markets: (iii) Engage with local communities regarding investments; 
(iv) the level of involvement of community representatives in the 
Governing Board and/or Advisory Board in approving investment criteria 
or decisions; and (v) demonstrate a track record of investing in 
businesses that spur additional private capital investment in Low-
Income Communities.
    An Applicant will generally score well under this section to the 
extent that, among other things: (a) It has a track record of producing 
quantitative and qualitative community outcomes that are similar to 
those projected to be achieved with an NMTC allocation; (b) it is 
working in particularly economically distressed or otherwise 
underserved communities; (c) its activities are part of a broader 
community or economic development strategy; (d) it demonstrates a track 
record of community engagement around past investment decisions; (e) it 
ensures that an NMTC investment into a project or business is supported 
by and will be beneficial to Low-Income Persons and residents of Low-
Income Communities (LICs); and (f) it is likely to engage in activities 
that will spur additional private capital investment.
    C. Phase 2 Evaluation.
    1. Final Rank Score
    (a). Anomaly Reviews: Using the numeric scores from Phase 1, 
Applicants are ranked on the basis of each Applicant's combined scores 
in the Business Strategy and Community Outcomes sections of the 
application plus one half of the priority points. If, in the case of a 
particular application, a reviewer's total base score or section 
score(s) (in one or more of the two application scored sections) varies 
significantly from the median of the three reviewers' total base scores 
or section scores for such application, the CDFI Fund may, in its sole 
discretion, obtain the evaluation and numeric scoring of an additional 
fourth reviewer to determine whether the anomalous score should be 
replaced with the score of the additional fourth reviewer.
    (b). Late Reports: In the case of an Applicant or any Affiliates 
that has previously received an award or allocation from the CDFI Fund 
through any CDFI Fund program, the CDFI Fund will deduct points from 
the Applicant's ``Final Rank Score'' for the Applicant's (or its 
Affiliate's) failure to meet any of the reporting deadlines set forth 
in any assistance, award or Allocation Agreement(s), if the reporting 
deadlines occurred during the period from October 1, 2014 to the 
application deadline in this NOAA (December 16, 2015).
    (c). Prior Year Allocatees: In the case of Applicants (or their 
Affiliates) that are prior year Allocatees, the CDFI Fund will review 
the activities of the prior year Allocatee to determine whether the 
entity has: (i) Effectively utilized its prior-year allocations in a 
manner generally consistent with the representations made in the 
relevant allocation application; and (ii) substantiated a need for 
additional allocation authority.
    The CDFI Fund will award allocations in the order of the ``Final 
Rank Score,'' subject to Applicants meeting all other eligibility 
requirements; provided, however, that the CDFI Fund, in its sole 
discretion, reserves the right to reject an application and/or adjust 
award amounts as appropriate based on information obtained during the 
review process.
    2. Management Capacity: In assessing an Applicant's management 
capacity, CDFI Fund will consider, among other

[[Page 64502]]

things, the qualifications of the Applicant's Principals, its board 
members, its management team, and other essential staff or contractors, 
with specific focus on: Experience in deploying capital or technical 
assistance, including activities similar to those described in the 
Applicant's business strategy; asset management and risk management 
experience; experience with fulfilling compliance requirements of other 
governmental programs, including other tax programs; and the 
Applicant's (or its Controlling Entity's) financial health. CDFI Fund 
evaluators will also consider the extent to which an Applicant has 
protocols in place to ensure ongoing compliance with NMTC Program 
requirements and the Applicant's projected income and expenses related 
to managing an NMTC allocation.
    An Applicant will be generally evaluated more favorably under this 
section to the extent that its management team or other essential 
personnel have experience in: (a) Deploying capital or technical 
assistance in Low-Income Communities, particularly those likely to be 
served by the Applicant with the proceeds of QEIs; (b) asset and risk 
management; and (c) fulfilling government compliance requirements, 
particularly tax credit program compliance. An Applicant will also be 
evaluated favorably to the extent it demonstrates strong financial 
health and a high likelihood of remaining a going-concern; it clearly 
explains levels of income and expenses; has policies and systems in 
place to ensure ongoing compliance with NMTC Program requirements; and, 
if it is a Federally-insured financial institution, its most recent 
Community Reinvestment Act (CRA) rating was ``outstanding.''
    3. Capitalization Strategy: When assessing an Applicant's 
capitalization strategy, CDFI Fund will consider, among other things: 
The key personnel of the Applicant (or Controlling Entity) and their 
track record of raising capital, particularly from for-profit 
investors; the extent to which the Applicant has secured investments or 
commitments to invest in NMTC (if applicable), or indications of 
investor interest commensurate with its requested amount of tax credit 
allocations, or, if a prior Allocatee, the track record of the 
Applicant or its Affiliates in raising Qualified Equity Investments in 
the past five years; the Applicant's strategy for identifying 
additional investors, if necessary, including the Applicant's (or its 
Controlling Entity's) prior performance with raising equity from 
investors, particularly for-profit investors; the distribution of the 
economic benefits of the tax credit; and the extent to which the 
Applicant intends to invest the proceeds from the aggregate amount of 
its QEIs at a level that exceeds the requirements of IRC Sec.  
45D(b)(1)(B) and the IRS regulations.
    An Applicant will be evaluated more favorably under this section to 
the extent that: (a) It or its Controlling Entity demonstrate a track 
record of raising investment capital; (b) it has secured investor 
commitments, or has a reasonable strategy for obtaining such 
commitments, or, if it or its Affiliates is a prior Allocatee with a 
track record in the past five years of raising Qualified Equity 
Investments or; (c) it generally demonstrates that the economic 
benefits of the tax credit will be passed through to a QALICB; and (d) 
it intends to invest the proceeds from the aggregate amount of its QEIs 
at a level that exceeds the requirements of IRC Sec.  45D(b)(1)(B) and 
the IRS regulations. In the case of an Applicant proposing to raise 
investor funds from organizations that also will identify or originate 
transactions for the Applicant or from Affiliated entities, said 
Applicant will be evaluated more favorably to the extent that it will 
offer products with more favorable rates or terms than those currently 
offered by its investor(s) or Affiliated entities and/or will target 
its activities to areas of greater economic distress than those 
currently targeted by the investor or Affiliated entities.
    D. Allocations serving Non-Metropolitan counties: As provided for 
under Section 102(b) of the Tax Relief and Health Care Act of 2006 (P. 
L. 109-432), the CDFI Fund shall ensure that Non-Metropolitan counties 
receive a proportional allocation of QEIs under the NMTC Program. To 
this end, the CDFI Fund will ensure that the proportion of Allocatees 
that are Rural CDEs is, at a minimum, equal to the proportion of 
Applicants in the highly qualified pool that are Rural CDEs. The CDFI 
Fund will also endeavor to ensure that 20 percent of the QLICIs to be 
made using QEI proceeds are invested in Non-Metropolitan counties. A 
Rural CDE is one that has a track record of at least three years of 
direct financing experience, has dedicated at least 50 percent of its 
direct financing dollars to Non-Metropolitan counties over the past 
five years, and has committed that at least 50 percent of its NMTC 
financing dollars with this Allocation will be deployed in such areas. 
Non-Metropolitan counties are counties not contained within a 
Metropolitan Statistical Area, as such term is defined in OMB Bulletin 
No. 10-02 (Update of Statistical Area Definitions and Guidance on Their 
Uses) and applied using 2010 census tracts.
    Applicants that meet the minimum scoring thresholds will be 
advanced to Phase 2 review and will be provided with ``preliminary'' 
awards, in descending order of Final Rank Score, until the available 
allocation authority is fulfilled. Once these ``preliminary'' award 
amounts are determined, the CDFI Fund will then analyze the Allocatee 
pool to determine whether the two Non-Metropolitan proportionality 
objectives have been met.
    The CDFI Fund will first examine the ``preliminary'' awards and 
Allocatees to determine whether the percentage of Allocatees that are 
Rural CDEs is, at a minimum, equal to the percentage of Applicants in 
the highly qualified pool that are Rural CDEs. If this objective is not 
achieved, the CDFI Fund will provide awards to additional Rural CDEs 
from the highly qualified pool, in descending order of their Final Rank 
Score, until the appropriate percentage balance is achieved. In order 
to accommodate the additional Rural CDEs in the Allocatee pool within 
the available allocation limitations, a formula reduction will be 
applied as uniformly as possible to the allocation amount for all 
Allocatees in the pool that have not committed to investing a minimum 
of 20 percent of their QLICIs in Non-Metropolitan counties.
    The CDFI Fund will then determine whether the pool of Allocatees 
will, in the aggregate, invest at least 20 percent of their QLICIs (as 
measured by dollar amount) in Non-Metropolitan counties. The CDFI Fund 
will first apply the ``minimum'' percentage of QLICIs that Allocatees 
indicated in their applications would be targeted to Non-Metropolitan 
areas to the total allocation award amount of each Allocatee (less 
whatever percentage the Allocatee indicated would be retained for non-
QLICI activities), and total these figures for all Allocatees. If this 
aggregate total is greater than or equal to 20 percent of the QLICIs to 
be made by the Allocatees, then the pool is considered balanced and the 
CDFI Fund will proceed with the allocation process. However, if the 
aggregate total is less than 20 percent of the QLICIs to be made by the 
Allocatees, the CDFI Fund will consider requiring any or all of the 
Allocatees to direct up to the ``maximum'' percentage of QLICIs that 
the Allocatees indicated would be targeted to Non-Metropolitan 
counties, taking into consideration their track record and ability to 
deploy dollars in Non-Metropolitan counties. If the CDFI Fund cannot 
meet the goal of 20 percent of QLICIs in Non-Metropolitan counties by 
requiring any or all Allocatees to

[[Page 64503]]

commit up to the maximum percentage of QLICIs that they indicated would 
be targeted to Non-Metropolitan counties, the CDFI Fund may add 
additional Rural CDEs (in descending order of final rank score) to the 
Allocatee pool. In order to accommodate any additional Allocatees 
within the allocation limitations, a formula reduction will be applied 
as uniformly as possible, to the allocation amount for all Allocatees 
in the pool that have not committed to investing a minimum of 20 
percent of their QLICIs in Non-Metropolitan counties.
    E. Questions: All outstanding reports or compliance questions 
should be directed to the Office of Certification, Compliance 
Monitoring, and Evaluation through the submission of a Service Request 
in AMIS or by telephone at (202) 653-0423. The CDFI Fund will respond 
to reporting or compliance questions between the hours of 9:00 a.m. and 
5:00 p.m. ET, starting the date of the publication of this NOAA through 
December 14, 2015. The CDFI Fund will not respond to reporting or 
compliance phone calls or email inquiries that are received after 5:00 
p.m. ET on December 14, 2015 until after the funding application 
deadline of December 16, 2015.
    F. Right of rejection: The CDFI Fund reserves the right to reject 
any NMTC allocation application in the case of a prior CDFI Fund award 
recipient, if such Applicant has failed to comply with the terms, 
conditions, and other requirements of the prior or existing assistance 
or award agreement(s) with the CDFI Fund. The CDFI Fund reserves the 
right to reject any NMTC allocation application in the case of a prior 
CDFI Fund Allocatee, if such Applicant has failed to comply with the 
terms, conditions, and other requirements of its prior or existing 
Allocation Agreement(s) with the CDFI Fund. The CDFI Fund reserves the 
right to reject any NMTC allocation application in the case of any 
Applicant, if an Affiliate of the Applicant has failed to meet the 
terms, conditions and other requirements of any prior or existing 
assistance agreement, award agreement or Allocation Agreement with the 
CDFI Fund.
    The CDFI Fund reserves the right to reject any NMTC allocation 
application in the case of a prior Allocatee, if such Applicant has 
failed to use its prior NMTC allocation(s) in a manner that is 
generally consistent with the business strategy (including, but not 
limited to, the proposed product offerings, QALICB type, and markets 
served) set forth in the allocation application(s) related to such 
prior allocation(s) or such Applicant has been found by the IRS to have 
engaged in a transaction or series of transactions designed to achieve 
a result that is inconsistent with the purposes of IRC Sec.  45D. The 
CDFI Fund also reserves the right to reject any NMTC allocation 
application in the case of an Affiliate of the Applicant that is a 
prior Allocatee and has failed to use its prior NMTC allocation(s) in a 
manner that is generally consistent with the business strategy set 
forth in the allocation application(s) related to such prior 
allocation(s) or has been found by the IRS to have engaged in a 
transaction or series of transactions designed to achieve a result that 
is inconsistent with the purposes of IRC Sec.  45D.
    The CDFI Fund reserves the right to reject an NMTC allocation 
application if information (including administrative errors or omission 
of information) comes to the attention of the CDFI Fund that adversely 
affects an Applicant's eligibility for an award, adversely affects the 
CDFI Fund's evaluation or scoring of an application, adversely affects 
the CDFI Fund's prior determinations of CDE certification, or indicates 
fraud or mismanagement on the part of an Applicant or the Controlling 
Entity, if such fraud or mismanagement by the Controlling Entity would 
hinder the Applicant's ability to perform under the Allocation 
Agreement. If the CDFI Fund determines that any portion of the 
application is incorrect in any material respect, the CDFI Fund 
reserves the right, in its sole discretion, to reject the application.
    As a part of the substantive review process, the CDFI Fund may 
permit the Allocation Recommendation Panel member(s) to request 
information from Applicants for the sole purpose of obtaining, 
clarifying or confirming application information or omission of 
information. In no event shall such contact be construed to permit an 
Applicant to change any element of its application. At this point in 
the process, an Applicant may be required to submit additional 
information about its application in order to assist the CDFI Fund with 
its final evaluation process. If the Applicant (or the Controlling 
Entity or any Affiliate) has previously been awarded an NMTC 
allocation, the CDFI Fund may also request information on the use of 
those NMTC allocations, to the extent that this information has not 
already been reported to the CDFI Fund. Such requests must be responded 
to within the time parameters set by the CDFI Fund. The selecting 
official(s) will make a final allocation determination based on an 
Applicant's file, including, without limitation, eligibility under 
IRCSec.  45D, the reviewers' scores and the amount of allocation 
authority available.
    In the case of Applicants (or the Controlling Entity, or 
Affiliates) that are regulated or receive oversight by the Federal 
government or a State agency (or comparable entity), the CDFI Fund may 
request additional information from the Applicant regarding Assurances 
and Certifications or other information about the ability of the 
Applicant to effectively perform under the Allocation Agreement. The 
Allocation Recommendation Panel or selecting official(s) reserve(s) the 
right to consult with and take into consideration the views of the 
appropriate Federal or State banking and other regulatory agencies. The 
CDFI Fund reserves the right to reject any NMTC Allocation Application 
if additional information is obtained that, after further due diligence 
and in the discretion of the CDFI Fund, would hinder the Applicant's 
ability to effectively perform under the Allocation Agreement. In the 
case of Applicants (or Affiliates of Applicants) that are also Small 
Business Investment Companies, Specialized Small Business Investment 
Companies or New Markets Venture Capital Companies, the CDFI Fund 
reserves the right to consult with and take into consideration the 
views of the Small Business Administration.
    The CDFI Fund reserves the right to conduct additional due 
diligence, as determined reasonable and appropriate by the CDFI Fund, 
in its sole discretion, related to the Applicant, Affiliates, the 
Applicant's Controlling Entity and the officers, directors, owners, 
partners and key employees of each. This includes the right to consult 
with the IRS if the Applicant (or the Controlling Entity, or 
Affiliates) has previously been awarded an NMTC allocation.
    Each Applicant will be informed of the CDFI Fund's award decision 
through an electronic notification whether selected for an allocation 
or not selected for an allocation, which may be for reasons of 
application incompleteness, ineligibility or substantive issues. All 
Applicants that are not selected for an allocation based on substantive 
issues will likely be given the opportunity to receive feedback on 
their applications. This feedback will be provided in a format and 
within a timeframe to be determined by the CDFI Fund, based on 
available resources.
    The CDFI Fund further reserves the right to change its eligibility 
and evaluation criteria and procedures, if the CDFI Fund deems it 
appropriate. If said changes materially affect the CDFI Fund's award 
decisions, the CDFI Fund will provide information regarding the

[[Page 64504]]

changes through the CDFI Fund's Web site.
    There is no right to appeal the CDFI Fund's NMTC allocation 
decisions. The CDFI Fund's NMTC allocation decisions are final.

VI. Award Administration Information

    A. Allocation Award Compliance.
    1. Failure to meet reporting requirements: If an Allocatee, or an 
Affiliate of an Allocatee, is a prior CDFI Fund award recipient or 
Allocatee under any CDFI Fund program and is not current on the 
reporting requirements set forth in the previously executed assistance, 
allocation, or award agreement(s), as of the date of the NOAA or 
thereafter, the CDFI Fund reserves the right, in its sole discretion, 
to reject the application, delay entering into an Allocation Agreement, 
and/or impose limitations on an Allocatee's ability to issue QEIs to 
investors until said prior award recipient or Allocatee is current on 
the reporting requirements in the previously executed assistance, 
allocation, or award agreement(s). Please note that the automated 
systems the CDFI Fund uses for receipt of reports submitted 
electronically typically acknowledges only a report's receipt; such an 
acknowledgment does not warrant that the report received was complete 
and therefore met reporting requirements. If said prior award recipient 
or Allocatee is unable to meet this requirement within the timeframe 
set by the CDFI Fund, the CDFI Fund reserves the right, in its sole 
discretion, to terminate and rescind the allocation made under this 
NOAA.
    2. Pending determination of noncompliance or default: If an 
Allocatee is a prior award recipient or Allocatee under any CDFI Fund 
program and if: (i) It has submitted reports to the CDFI Fund that 
demonstrate potential noncompliance with or a default under a previous 
assistance, award, or Allocation Agreement; and (ii) the CDFI Fund has 
yet to make a final determination as to whether the entity is in 
noncompliance with or default under its previous assistance, award, or 
Allocation Agreement, the CDFI Fund reserves the right, in its sole 
discretion, to delay entering into an Allocation Agreement and/or to 
impose limitations on the Allocatee's ability to issue Qualified Equity 
Investments to investors, pending final determination of whether the 
entity is in noncompliance or default, and determination of remedies, 
if applicable, in the sole determination of the CDFI Fund. Further, if 
an Affiliate of an Allocatee is a prior CDFI Fund award recipient or 
Allocatee and if such entity: (i) Has submitted reports to the CDFI 
Fund that demonstrate potential noncompliance/default under a previous 
assistance, award, or Allocation Agreement; and (ii) the CDFI Fund has 
yet to make a final determination as to whether the entity is in 
noncompliance/default under its previous assistance, award, or 
Allocation Agreement, the CDFI Fund reserves the right, in its sole 
discretion, to delay entering into an Allocation Agreement and/or to 
impose limitations on the Allocatee's ability to issue QEIs to 
investors, pending final determination of whether the entity is in 
noncompliance or default, and determination of remedies, if applicable, 
in the sole determination of the CDFI Fund. If the prior award 
recipient or Allocatee in question is unable to satisfactorily resolve 
the issues of noncompliance, in the sole determination of the CDFI 
Fund, the CDFI Fund reserves the right, in its sole discretion, to 
terminate and rescind the award notification made under this NOAA.
    3. Default status: If prior to entering into an Allocation 
Agreement through this NOAA: (i) The CDFI Fund has made a determination 
that an Allocatee that is a prior CDFI Fund award recipient or 
Allocatee under any CDFI Fund program is in default of a previously 
executed assistance, allocation, or assistance agreement(s); (ii) the 
CDFI Fund has provided written notification of such determination to 
such organization; and (iii) the anticipated date for entering into an 
Allocation Agreement is within a period of time specified in such 
notification throughout which any new award, allocation, or assistance 
is prohibited, the CDFI Fund reserves the right, in its sole 
discretion, to delay entering into an Allocation Agreement and/or to 
impose limitations on the Allocatee's ability to issue QEIs to 
investors, or to terminate and rescind the Notice of Allocation and the 
allocation made under this NOAA. Furthermore, if prior to entering into 
an Allocation Agreement through this NOAA: (i) The CDFI Fund has made a 
determination that an Affiliate of the Allocatee that is a prior CDFI 
Fund award recipient or Allocatee under any CDFI Fund program is in 
default of a previously executed assistance, allocation, or award 
agreement(s); (ii) the CDFI Fund has provided written notification of 
such determination to such organization; and (iii) the anticipated date 
for entering into an Allocation Agreement is within a period of time 
specified in such notification throughout which any new award, 
allocation, or assistance is prohibited, the CDFI Fund reserves the 
right, in its sole discretion, to delay entering into an Allocation 
Agreement and/or to impose limitations on the Allocatee's ability to 
issue QEIs to investors, or to terminate and rescind the Notice of 
Allocation and the allocation made under this NOAA.
    B. Allocation Agreement: Each Applicant that is selected to receive 
a NMTC allocation (including the Applicant's Subsidiary Allocatees) 
must enter into an Allocation Agreement with the CDFI Fund. The 
Allocation Agreement will set forth certain required terms and 
conditions of the NMTC allocation which may include, but are not 
limited to, the following: (i) The amount of the awarded NMTC 
allocation; (ii) the approved uses of the awarded NMTC allocation 
(i.e., loans to or equity investments in Qualified Active Low-Income 
Businesses or loans to or equity investments in other CDEs); (iii) the 
approved service area(s) in which the proceeds of QEIs may be used, 
including the dollar amount of QLICIs that must be invested in Non-
Metropolitan counties; (iv) commitments to specific ``innovative 
activities'' discussed by the Applicant in its Allocation Application; 
(v) the time period by which the Applicant may obtain QEIs from 
investors; (vi) reporting requirements for all Applicants receiving 
NMTC allocations; and (vii) a requirement to maintain certification as 
a CDE throughout the term of the Allocation Agreement. If an Applicant 
has represented in its NMTC allocation application that it intends to 
invest substantially all of the proceeds from its investors in 
businesses in which persons unrelated to the Applicant hold a majority 
equity interest, the Allocation Agreement will contain a covenant 
whereby said Applicant agrees that it will invest substantially all of 
said proceeds in businesses in which persons unrelated to the Applicant 
hold a majority equity interest.
    In addition to entering into an Allocation Agreement, each 
Applicant selected to receive a NMTC allocation must furnish to the 
CDFI Fund an opinion from its legal counsel or a similar certification, 
the content of which will be further specified in the Allocation 
Agreement, to include, among other matters, an opinion that an 
Applicant (and its Subsidiary Allocatees, if any): (i) Is duly formed 
and in good standing in the jurisdiction in which it was formed and the 
jurisdiction(s) in which it operates; (ii) has the authority to enter 
into the Allocation Agreement and undertake the activities that are 
specified therein;

[[Page 64505]]

(iii) has no pending or threatened litigation that would materially 
affect its ability to enter into and carry out the activities specified 
in the Allocation Agreement; and (iv) is not in default of its articles 
of incorporation, bylaws or other organizational documents, or any 
agreements with the Federal government.
    If an Allocatee identifies Subsidiary Allocatees, the CDFI Fund 
reserves the right to require an Allocatee to provide supporting 
documentation evidencing that it Controls such entities prior to 
entering into an Allocation Agreement with the Allocatee and its 
Subsidiary Allocatees. The CDFI Fund reserves the right, in its sole 
discretion, to rescind its allocation award if the Allocatee fails to 
return the Allocation Agreement, signed by the authorized 
representative of the Allocatee, and/or provide the CDFI Fund with any 
other requested documentation, including an approved legal opinion, 
within the deadlines set by the CDFI Fund.
    C. Fees: The CDFI Fund reserves the right, in accordance with 
applicable Federal law and, if authorized, to charge allocation 
reservation and/or compliance monitoring fees to all entities receiving 
NMTC allocations. Prior to imposing any such fee, the CDFI Fund will 
publish additional information concerning the nature and amount of the 
fee.
    D. Reporting: The CDFI Fund will collect information, on at least 
an annual basis from all Applicants that are awarded NMTC allocations 
and/or are recipients of QLICIs, including such audited financial 
statements and opinions of counsel as the CDFI Fund deems necessary or 
desirable, in its sole discretion. The CDFI Fund will require the 
Applicant to retain information as the CDFI Fund deems necessary or 
desirable and shall provide such information to the CDFI Fund when 
requested to monitor each Allocatee's compliance with the provisions of 
its Allocation Agreement and to assess the impact of the NMTC Program 
in Low-Income Communities. The CDFI Fund may also provide such 
information to the IRS in a manner consistent with IRC Sec.  6103 so 
that the IRS may determine, among other things, whether the Allocatee 
has used substantially all of the proceeds of each QEI raised through 
its NMTC allocation to make QLICIs. The Allocation Agreement shall 
further describe the Allocatee's reporting requirements.
    The CDFI 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 Allocatees.

VII. Agency Contacts

    The CDFI Fund will provide programmatic and information technology 
support related to the allocation application between the hours of 9:00 
a.m. and 5:00 p.m. ET through December 14, 2015. The CDFI Fund will not 
respond to phone calls or emails concerning the application that are 
received after 5:00 p.m. ET on December 14, 2015 until after the 
allocation application deadline of December 16, 2015. Applications and 
other information regarding the CDFI Fund and its programs may be 
obtained from the CDFI Fund's Web site at https://www.cdfifund.gov. The 
CDFI Fund will post on its Web site responses to questions of general 
applicability regarding the NMTC Program.
    A. Information technology support: Technical support can be 
obtained by calling (202) 653-0422 or by email at 
[email protected]. People who have visual or mobility 
impairments that prevent them from accessing the Low-Income Community 
maps using the CDFI Fund's Web site should call (202) 653-0422 for 
assistance. These are not toll free numbers.
    B. Programmatic support: If you have any questions about the 
programmatic requirements of this NOAA, contact the CDFI Fund's NMTC 
Program Manager by email at [email protected]; or by telephone at 
(202) 653-0421. These are not toll-free numbers.
    C. Administrative support: If you have any questions regarding the 
administrative requirements of this NOAA, contact the CDFI Fund's NMTC 
Program Manager by email at [email protected], or by telephone at 
(202) 653-0421. These are not toll free numbers.
    D. IRS support: For questions regarding the tax aspects of the NMTC 
Program, contact Jian Grant and James Holmes, Office of the Associate 
Chief Counsel (Passthroughs and Special Industries), IRS, by telephone 
at (202) 317-4137, or by facsimile at (202) 317-6731. These are not 
toll free numbers. Applicants wishing formal ruling request should see 
IRS Internal Revenue Bulletin 2015-1, issued January 2, 2015.

VIII. Information Sessions

    In connection with this NOAA, the CDFI Fund may conduct one or more 
information sessions that will be produced in Washington, DC and 
broadcast over the internet via webcasting as well as telephone 
conference calls. For further information on these upcoming information 
sessions, please visit the CDFI Fund's Web site at https://www.cdfifund.gov.


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

    Dated: October 20, 2015.
Mary Ann Donovan,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2015-26971 Filed 10-22-15; 8:45 am]
BILLING CODE 4810-70-P