[Federal Register Volume 85, Number 104 (Friday, May 29, 2020)]
[Notices]
[Pages 32443-32458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11580]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funds Availability (NOFA) Inviting Applications for the 
Fiscal Year (FY) 2020 Funding Round of the Capital Magnet Fund (CMF)

    Funding Opportunities: Capital Magnet Fund; 2020 Funding Round.
    Funding Opportunity Title: Notice of Funds Availability (NOFA) 
inviting Applications for the fiscal year (FY) 2020 Funding Round of 
the Capital Magnet Fund (CMF).
    Announcement Type: Announcement of funding opportunity.
    Funding Opportunity Number: CDFI-2020-CMF.
    Catalog of Federal Domestic Assistance (CFDA) Number: 21.011.
    Dates:

              Table 1--FY 2020 Capital Magnet Fund Funding Round Critical Deadlines for Applicants
----------------------------------------------------------------------------------------------------------------
          Description                       Deadline               Time (eastern time--ET)     Submission method
----------------------------------------------------------------------------------------------------------------
OMB Standard Form (SF)-424       June 26, 2020................  11:59 p.m. ET................  Electronically
 Mandatory form.                                                                                via Grants.gov.
Create AMIS Account (if          July 2, 2020.................  11:59 p.m. ET................  Electronically
 Applicant doesn't have one).                                                                   via Awards
                                                                                                Management
                                                                                                Information
                                                                                                System (AMIS).
Last day to contact Capital      July 23, 2020................  5:00 p.m. ET.................  Service Request
 Magnet Fund Staff.                                                                             via AMIS or CDFI
                                                                                                Fund Helpdesk:
                                                                                                202-653-0421 or
                                                                                                [email protected].
CMF Application and Required     July 27, 2020................  5:00 p.m. ET.................  Electronically
 Attachments.                                                                                   via AMIS.
----------------------------------------------------------------------------------------------------------------

    Executive Summary: The Capital Magnet Fund (CMF) is administered by 
the Community Development Financial Institutions Fund (CDFI Fund). 
Through the CMF, the CDFI Fund provides financial assistance grants to 
Community Development Financial Institutions (CDFIs) and to qualified 
Nonprofit Organizations that have the development or management of 
affordable housing as one of their principal purposes. All awards 
provided through this Notice of Funds Availability (NOFA) are subject 
to funding availability.

I. Program Description

    A. Authorizing Statute and Regulation: The CMF was established 
through the Housing and Economic Recovery Act of 2008 (HERA), which 
added section 1339 to the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992. For a complete understanding of the program, 
the CDFI Fund encourages Applicants to review the CMF interim rule (12 
CFR part 1807) as amended February 8, 2016 (the CMF Interim Rule); this 
NOFA; the CDFI Fund's environmental quality regulation (12 CFR part 
1815); the CMF funding application (referred to hereafter as the 
``Application,'' meaning the application submitted in response to this 
NOFA); and the Uniform Administrative Requirements, Cost Principles, 
and Audit Requirements for Federal Awards (2 CFR part 1000), which is 
the Department of the Treasury's codification of the Office of 
Management and Budget (OMB) government-wide framework for grants 
management at 2 CFR part 200 (Uniform Administrative Requirements or 
UAR). Each capitalized term used in this NOFA, but not defined herein, 
shall have the respective meanings assigned to them in the CMF Interim 
Rule, the Application, or the Uniform Administrative Requirements. 
Details regarding Application content requirements are found in the 
Application and related materials at www.cdfifund.gov/cmf.
    B. History: The CDFI Fund was established by the Riegle Community 
Development Banking and Financial Institutions Act of 1994 to promote 
economic revitalization and community development through investment in 
and assistance to CDFIs. The CMF made its first awards in FY 2010, with 
subsequent funding rounds in FYs 2016, 2017, 2018, and 2019. To date, 
more

[[Page 32444]]

than $564 million has been awarded under the CMF Program.
    C. Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards (2 CFR Part 1000): The Uniform 
Administrative Requirements codify financial, administrative, 
procurement, and program management standards that Federal award-making 
agencies must follow. Per the Uniform Administrative Requirements, when 
evaluating award Applications, awarding agencies must evaluate the 
risks to the program posed by each Applicant, and each Applicant's 
merits and eligibility. These requirements are designed to ensure that 
Applicants for Federal assistance receive a fair and consistent review 
prior to an award decision. This review will assess items such as the 
Applicant's financial stability, quality of management systems, history 
of performance, and single audit findings. In addition, the Uniform 
Administrative Requirements include guidance on audit requirements and 
other award compliance requirements for award Recipients.
    D. Priorities: The purpose of the CMF is to attract private capital 
for and increase investment in the Development, Preservation, 
Rehabilitation, or Purchase of Affordable Housing for primarily 
Extremely Low-Income, Very Low-Income, and Low-Income Families, as well 
as Economic Development Activities, which, In Conjunction With 
Affordable Housing Activities, implement a Concerted Strategy to 
stabilize or revitalize a Low-Income Area or Underserved Rural Area. To 
pursue these objectives, the CDFI Fund has established the following 
priorities for the FY 2020 Funding Round: (i) Applications where at 
least 20 percent of all rental Affordable Housing units that will be 
financed and/or supported with FY 2020 CMF Awards are targeted to Very 
Low-Income Families and/or at least 20 percent of all Homeownership 
Affordable Housing units that will be financed and/or supported with FY 
2020 CMF Awards are targeted to Low-Income Families; and (ii) 
Applications proposing to use the CMF Award to leverage private capital 
to finance and/or support Affordable Housing Activities and Economic 
Development Activities. Additionally, the CDFI Fund seeks to fund 
Applications serving geographically diverse Areas of Economic Distress, 
including Metropolitan Areas and Underserved Rural Areas. In 
particular, the priority for geographic diversity includes funding 
highly qualified Applications that serve states or territories not 
included in the Service Areas of Recipients in the past two CMF rounds 
(FY 2018 and FY 2019): Alaska, North Dakota, and South Carolina, as 
well as American Samoa, Guam, the Northern Mariana Islands, and the 
U.S. Virgin Islands.
    E. Funding Limitations: The CDFI Fund reserves the right to fund, 
in whole or in part, any, all, or none of the Applications submitted in 
response to this NOFA.

II. Federal Award Information

    A. Funding Availability: The CDFI Fund plans to award up to $173.8 
million in grants for the CMF FY 2020 Round under this NOFA. HERA 
prohibits the CDFI Fund from obligating more than 15 percent of the 
aggregate available in CMF Awards to any Applicant, its Subsidiaries 
and Affiliates in the same funding round. Affiliated entities are not 
allowed to apply separately under this NOFA. To provide an example of 
the size of awards in past CMF rounds, the CDFI Fund notes that in the 
FY 2019 CMF Round, the statutory cap was $19.6 million, but the largest 
amount awarded was $7.75 million, while the average award was 
approximately $3.4 million. Moreover, given administrative and 
compliance responsibilities for Recipients, the CDFI Fund will not 
accept Applications for the FY 2020 Round that request less than 
$500,000, and will not provide awards below $500,000 to any CMF Award 
Recipient for the FY 2020 CMF Round. The CDFI Fund reserves the right, 
in its sole discretion, to provide a CMF Award in an amount other than 
that which the Applicant requests. However, the Award amount will not 
exceed the Applicant's award request as stated in its Application, nor 
will the Award amount be less than the Applicant's minimum Award 
request, if one is provided in the Application. An Applicant may 
receive only one Award through the FY 2020 CMF Round.
    B. Types of Awards: The CDFI Fund will provide CMF Awards in the 
form of grants. CMF Awards must be used to support the eligible 
activities as set forth in 12 CFR 1807.301. A CMF Award Recipient may 
not distribute the CMF Award to any Affiliate, Subsidiary, or third-
party entity in any manner that would create a Subrecipient 
relationship (as defined in the Uniform Administrative Requirements), 
without the CDFI Fund's prior written consent. The Recipient of a CMF 
Award must retain all obligations related to the Award. This 
restriction does not prevent a Recipient from loaning or investing 
directly in an Affiliate (separate legal entity) or in a specific 
Project being undertaken by an Affiliate.
    C. Limitations on Using CMF Awards in Conjunction With Other CDFI 
Fund Awards/Allocations: 1. A CMF Award Recipient may not use its CMF 
Award for any project that also receives funding from other CDFI Fund 
program awards or allocations the Recipient (or any of its Affiliates) 
has received, except when the CMF Award dollars are used to finance/
support a different ``phase'' of development in the same Project than 
that financed by other CDFI Fund awards or allocations. The separate 
phases of development financing are: (1) Predevelopment; (2) 
acquisition; (3) site work (preconstruction); (4) construction/
rehabilitation; (5) permanent financing; or (6) bridge financing 
between two or more phases. This restriction does not apply to the 
Recipient's prior CMF Awards. The Recipient may combine its multiple 
CMF Awards to provide financing on any Project, including financing the 
same phase of any Project. However, the Recipient may not deem the same 
costs as Eligible Project Costs under multiple CMF Awards and must 
prorate the unit production performance across its multiple CMF Awards. 
If providing Homeownership assistance, a CMF Award may be used in 
conjunction with awards/allocations from other CDFI Fund programs only 
if the Project can be divided into such phases and the CMF Award is 
used in a different phase from the other CDFI Fund program awards/
allocations. To clarify, a CMF Award cannot be used for a Homeownership 
property that is permanently financed (or supported) by both, the 
Recipient's (or any of its Affiliates') CMF Award, and an award/
allocation from another CDFI Fund program (e.g., down payment 
assistance funded from CMF Award may not be combined with a permanent 
mortgage funded from another CDFI Fund program).
    2. Costs financed and/or supported by the Recipient's other awards/
allocations from CDFI Fund programs, including awards from prior CMF 
rounds, may not be counted or reported as Leveraged Costs for the CMF 
Award pursuant to this NOFA, as further set forth in the Assistance 
Agreement. While the Recipient may combine its CMF Award pursuant to 
this NOFA with prior issued CMF Awards to finance/support the same 
Project, each CMF Award must separately meet the program requirements 
as outlined in the applicable Assistance Agreement and the CMF Interim 
Rule (12 CFR part 1807). The term ``Recipient'' includes the CMF Award 
Recipient and any Affiliates.

[[Page 32445]]

    In all cases, the CMF Award remains subject to the following 
restriction imposed by the CDFI Bond Guarantee Program: Award funds 
received under any CDFI Fund program cannot be used by any participant 
of the CDFI Bond Guarantee Program, including Qualified Issuers, 
Eligible CDFIs, and Secondary Borrowers, to pay principal, interest, 
fees, administrative costs, or issuance costs (including Bond Issuance 
Fees) related to the CDFI Bond Guarantee Program, or to fund the Risk 
Share Pool for a Bond Issue (all capitalized terms used in this 
sentence, other than ``CMF Award,'' shall have the meanings ascribed to 
them in the CDFI Bond Guarantee Program regulations and applicable 
guidance).
    D. Anticipated Start Date and Period of Performance: The CDFI Fund 
anticipates the period of performance for the FY 2020 CMF Round to 
begin in early 2021. The period of performance for each CMF Award 
begins with the date that the CDFI Fund announces the Recipients of FY 
2020 CMF Awards and continues until the end of the ten-year period of 
affordability for all Projects financed and/or supported with the CMF 
Award, as set forth at 12 CFR 1807.401(d) and 12 CFR 1807.402, and as 
further set forth in the Assistance Agreement, during which time the 
Recipient must meet certain Performance Goals.
    E. Eligible Activities: A CMF Award must support or finance 
activities that attract private capital for and increase investment in 
(i) the Development, Preservation, Rehabilitation, or Purchase of 
Affordable Housing for primarily Low-, Very Low- and Extremely Low-
Income Families, and (ii) Economic Development Activities. CMF Awards 
may only be used as follows: (i) To provide Loan Loss Reserves, (ii) to 
capitalize a Revolving Loan Fund, (iii) to capitalize an Affordable 
Housing Fund, (iv) to capitalize a fund to support Economic Development 
Activities, (v) for Risk-Sharing Loans, or (vi) to provide Loan 
Guarantees. No more than 30 percent of a CMF Award may be used for 
Economic Development Activities. For the FY 2020 CMF Round, the CDFI 
Fund will allow all Recipients to use up to 5 percent of their CMF 
Award for Direct Administrative Expenses. The amount available for 
Direct Administrative Expenses may only be used for direct costs (as 
defined by the Uniform Administrative Requirements) incurred by the 
Recipient and related to the financing and/or support of a Project. The 
CDFI Fund considers the tracking of impacts and outcomes associated 
with Projects financed and/or supported by a CMF Award to fall under 
Direct Administrative Expenses. Any portion of the amount available for 
Direct Administrative Expenses may be used for direct costs related to 
the effective tracking and evaluation of program or evidence-based 
outcomes for Projects.

III. Eligibility Information

    A. Eligible Applicants: In order to be eligible to apply for a CMF 
Award, an Applicant must either be a Certified CDFI or a Nonprofit 
Organization, as defined in 12 CFR 1807.104. Table 2 indicates the 
criteria that each entity type must meet in order to be eligible for a 
CMF Award pursuant to this NOFA. Note: A Certified CDFI that is also a 
Nonprofit Organization only needs to meet the Certified CDFI 
eligibility criteria described in Table 2, below, in order to be 
eligible for a CMF Award.

               Table 2--Applicant Eligibility Requirements
------------------------------------------------------------------------
             Category                     Eligibility requirements
------------------------------------------------------------------------
Certified CDFI....................   Has been in existence as a
                                     legally formed entity for at least
                                     3 years prior to the AMIS
                                     Application deadline under this
                                     NOFA;
                                     Has been determined by the
                                     CDFI Fund to meet the CDFI
                                     certification requirements set
                                     forth in 12 CFR 1805.201 and as
                                     verified in the CDFI's AMIS account
                                     as of the publication date of this
                                     NOFA; and
                                     Has not been notified in
                                     writing by the CDFI Fund that its
                                     certification has been terminated.
                                     In cases where the CDFI
                                     Fund has provided a Certified CDFI
                                     with written notification that it
                                     no longer meets one or more
                                     certification standards and has
                                     been given an opportunity to cure,
                                     the CDFI Fund will continue to
                                     consider this Applicant to be a
                                     Certified CDFI until it has
                                     received a final determination
                                     letter that its certification has
                                     been terminated.
                                     Has audited financial
                                     statements encompassing its two
                                     most recently completed fiscal
                                     years prior to the publication date
                                     of this NOFA.
Nonprofit Organization............   Has been in existence as a
                                     legally formed entity for at least
                                     3 years prior to the AMIS
                                     Application deadline under this
                                     NOFA;
                                     Meets the definition of
                                     Nonprofit Organization set forth in
                                     12 CFR 1807.104.
                                     Demonstrates, through
                                     articles of incorporation, by-laws,
                                     or other board-approved documents,
                                     that the development or management
                                     of affordable housing are among its
                                     principal purposes; and
                                     Demonstrates by providing
                                     an attestation in the Application
                                     that at least thirty-three and one-
                                     third percent of its total assets
                                     are dedicated to the development or
                                     management of affordable housing.
                                     Has audited financial
                                     statements encompassing its two
                                     most recently completed fiscal
                                     years prior to the publication date
                                     of this NOFA.
Do Not Pay........................   The Do Not Pay Business
                                     Center was developed to support
                                     Federal agencies in their efforts
                                     to reduce the number of improper
                                     payments made through programs
                                     funded by the Federal government.
                                     The CDFI Fund reserves the
                                     right, in its sole discretion, to
                                     rescind an award if the Recipient
                                     is identified as an ineligible
                                     Recipient in the Do Not Pay
                                     database.
System for Award Management (SAM).   Each Applicant must have an
                                     active SAM registration in order to
                                     submit the required Application
                                     materials through Grants.gov.
                                     SAM is a web-based,
                                     government-wide application that
                                     collects, validates, stores, and
                                     disseminates business information
                                     about the federal government's
                                     trading partners in support of the
                                     contract awards, grants, and
                                     electronic payment processes. See
                                     SAM.gov for more information.
                                     Applicants must have a
                                     login.gov account to sign into SAM.
                                     Applicants must also have a DUNS
                                     number and an EIN in order to
                                     register in SAM.

[[Page 32446]]

 
                                     Applicants must complete
                                     registration in SAM in order to be
                                     able to complete the Grants.gov
                                     registration and submit an SF-424.
                                     The CDFI Fund reserves the
                                     right to deem an Application
                                     ineligible if the Applicant's SAM
                                     account expires during the
                                     Application evaluation period, or
                                     is set to expire before March 1,
                                     2021, and the Applicant does not re-
                                     activate, or renew, as applicable,
                                     the account within the deadlines
                                     that the CDFI Fund communicates to
                                     affected Applicants during the
                                     Application evaluation period.
Application type and submission      Each Applicant must submit
 method through Grants.gov and       the required Application documents
 Awards Management Information       listed in Table 4.
 System (AMIS).                      The CDFI Fund will only
                                     accept Applications that use the
                                     official Application templates
                                     provided on the Grants.gov and AMIS
                                     websites. Applications submitted
                                     with alternative or altered
                                     templates will not be considered.
                                     All Applicants must submit
                                     the required documents in two
                                     locations: (1) Grants.gov and (2)
                                     AMIS.
                                       [cir] Grants.gov: Applicants must
                                        submit the Office of Management
                                        and Budget (OMB)-approved
                                        Standard Form (SF) 424 Mandatory
                                        (Application for Federal
                                        Assistance) form.
                                       [cir] AMIS: Applicants must
                                        submit all other required
                                        Application materials.
                                       [cir] All Applicants must
                                        register in the Grants.gov and
                                        AMIS systems to submit an
                                        Application successfully. The
                                        CDFI Fund strongly encourages
                                        Applicants to register as early
                                        as possible to meet the
                                        deadlines in Table 1.
                                       [cir] Grants.gov and the SF-424
                                        Mandatory form:
                                       [cir] Grants.gov is a common
                                        website for federal agencies to
                                        post discretionary funding
                                        opportunities and for grantees
                                        to find and apply to them.
                                       [cir] The SF-424 must be
                                        submitted in Grants.gov before
                                        the other Application materials
                                        are submitted in AMIS.
                                        Applicants are strongly
                                        encouraged to submit their SF-
                                        424 as early as possible via the
                                        Grants.gov portal.
                                       [cir] Because the SF-424 is part
                                        of the Application, if the SF-
                                        424 is not accepted by
                                        Grants.gov, the CDFI Fund will
                                        not review any materials
                                        submitted in AMIS and the
                                        Application will be deemed
                                        ineligible.
                                       [cir] The SF-424 must be
                                        submitted under the FY 2020 CMF
                                        Funding Opportunity Number.
                                     AMIS:
                                       [cir] AMIS is the CDFI Fund's
                                        enterprise-wide information
                                        technology system that will be
                                        used to submit and store
                                        organization and Application
                                        information with the CDFI Fund.
                                       [cir] Applicants are only allowed
                                        one Capital Magnet Fund
                                        Application submission per
                                        funding round in AMIS.
Employer Identification Number       Each Applicant must have a
 (EIN).                              unique EIN assigned by the Internal
                                     Revenue Service.
                                     The CDFI Fund will reject
                                     an Application submitted with the
                                     EIN of a parent or Affiliate
                                     organization if that entity is not
                                     the Applicant.
                                     The EIN of the Applicant
                                     organization in AMIS must match the
                                     EIN on the SF-424 submitted through
                                     Grants.gov.
DUNS number.......................   Pursuant to OMB guidance
                                     (68 FR 38402), each Applicant must
                                     apply using its unique DUNS number
                                     in Grants.gov.
                                     The CDFI Fund will reject
                                     an Application submitted with the
                                     DUNS number of a parent or
                                     Affiliate organization.
                                     The DUNS number of the
                                     Applicant in AMIS must match the
                                     DUNS number on the SF-424 submitted
                                     through Grants.gov.
AMIS Account......................   Each Applicant must
                                     register as an organization in AMIS
                                     and submit all required Application
                                     materials through the AMIS portal.
                                     If the Applicant does not
                                     fully register its organization in
                                     AMIS by the deadline set forth in
                                     Table 1, its Application will be
                                     rejected without further
                                     consideration.
                                     The Authorized
                                     Representative must be included as
                                     a ``user'' in the Applicant's AMIS
                                     account.
                                     An Applicant that fails to
                                     properly register and update its
                                     AMIS account may miss important
                                     communications from the CDFI Fund
                                     or not be able to successfully
                                     submit an Application.
501(c)(4) status..................   Pursuant to 2 U.S.C. 1611,
                                     any 501(c)(4) organization that
                                     engages in lobbying activities is
                                     not eligible to apply for or
                                     receive a CMF Award.
Compliance with Nondiscrimination    An Applicant may not be
 and Equal Opportunity Statutes,     eligible to receive an award if
 Regulations, and Executive Orders.  proceedings have been instituted
                                     against it in, by, or before any
                                     court, governmental agency, or
                                     administrative body, and a final
                                     determination, issued within the
                                     last 3 years as of the publication
                                     date of this NOFA, indicates the
                                     Applicant has violated any of the
                                     following laws: Title VI of the
                                     Civil Rights Act of 1964, as
                                     amended (42 U.S.C. 2000d); Section
                                     504 of the Rehabilitation Act of
                                     1973 (29 U.S.C. 794); the Age
                                     Discrimination Act of 1975 (42
                                     U.S.C. 6101-6107); Title VIII of
                                     the Civil Rights Act of 1968, as
                                     amended (42 U.S.C. 3601 et seq.);
                                     and Executive Order 13166,
                                     Improving Access to Services for
                                     Persons with Limited English
                                     Proficiency.
Depository Institution Holding       In the case where a CDFI
 Company Applicant.                  Depository Institution Holding
                                     Company Applicant intends to carry
                                     out the activities of its award
                                     through its Subsidiary CDFI Insured
                                     Depository Institution, the
                                     Application must be submitted by
                                     the CDFI Depository Institution
                                     Holding Company and reflect the
                                     activities and financial
                                     performance of the Subsidiary CDFI
                                     Insured Depository Institution.

[[Page 32447]]

 
                                     The Authorized
                                     Representative of the Depository
                                     Institution Holding Company
                                     Applicant must certify that the
                                     information included in the
                                     Application represents that of the
                                     Subsidiary CDFI Insured Depository
                                     Institution, and that the Award
                                     will be used to support the
                                     Subsidiary CDFI Insured Depository
                                     Institution for the eligible
                                     activities outlined in the
                                     Application.
Regulated Institutions \1\........   To be eligible for an
                                     Award, each Regulated Institution
                                     Applicant must have a CAMELS/CAMEL
                                     composite rating (rating for banks
                                     and credit unions, respectively),
                                     by its Federal regulator of at
                                     least ``3.''
                                     Organizations with CAMELS/
                                     CAMEL composite ratings of ``4'' or
                                     ``5'' will not be eligible for
                                     awards.
                                     Organizations with a Prompt
                                     Corrective Action directive from
                                     its regulator will not be eligible
                                     for awards.
                                     The CDFI Fund will also
                                     evaluate material concerns
                                     identified by the Appropriate
                                     Federal Banking Agency in
                                     determining eligibility of
                                     Regulated Institution Applicants.
------------------------------------------------------------------------
\1\ Regulated Institutions include Insured Credit Unions, Insured
  Depository Institutions, State-Insured Credit Unions and Depository
  Institution Holding Companies.

    Any Applicant that does not meet the criteria in Table 2 is 
ineligible to apply for a CMF Award under this NOFA. Further, Section 
III.B describes additional considerations applicable to prior 
Recipients and/or allocatees under any CDFI Fund program.
    B. Prior Award Recipients: Eligibility determinations in prior 
funding rounds have no bearing on and do not guarantee eligibility in 
this round. Prior CMF Award Recipients and prior award recipients of 
other CDFI Fund programs are eligible to apply under this NOFA, except 
as noted in Table 3.

 Table 3--Eligibility Requirements for Applicants Which Are Prior Award/
                          Allocation Recipients
------------------------------------------------------------------------
             Criteria                            Description
------------------------------------------------------------------------
Pending resolution of                If an Applicant (or
 noncompliance.                      Affiliate of an Applicant) that is
                                     a prior recipient or allocatee
                                     under any CDFI Fund program: (i)
                                     Has demonstrated it has been in
                                     noncompliance with a previous
                                     assistance agreement, award
                                     agreement, allocation agreement,
                                     bond loan agreement, or agreement
                                     to guarantee and (ii) the CDFI Fund
                                     has yet to make a final
                                     determination as to whether the
                                     entity is in noncompliance with or
                                     default of its previous agreement,
                                     the CDFI Fund will consider the
                                     Applicant's Application under this
                                     NOFA pending full resolution, in
                                     the sole determination of the CDFI
                                     Fund, of the noncompliance.
Default or Noncompliance 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 AMIS
                                     Application deadline of this NOFA,
                                     the CDFI Fund has made a final
                                     determination in writing that such
                                     Applicant (or Affiliate of such
                                     Applicant) is in noncompliance with
                                     or default of a previously executed
                                     assistance agreement, award
                                     agreement, allocation agreement,
                                     bond loan agreement, or agreement
                                     to guarantee.
                                     Such entities will be
                                     ineligible to apply for an Award
                                     pursuant to this NOFA if the CDFI
                                     Fund has provided written
                                     notification that such entity is
                                     ineligible to apply for or receive
                                     any future CDFI Fund awards or
                                     allocations. Such entities will be
                                     ineligible to submit an application
                                     for such time period as specified
                                     by the CDFI Fund in writing.
------------------------------------------------------------------------

    C. Contacting the CDFI Fund: Accordingly, Applicants that are prior 
Recipients and/or allocatees under any CDFI Fund program are advised to 
comply with requirements specified in an Assistance Agreement, 
allocation agreement, bond loan agreement, or agreement to guarantee, 
and to ensure their Affiliates are in compliance with any agreements. 
All outstanding reporting and compliance questions should be directed 
to the Office of Certification, Compliance Monitoring and Evaluation 
help desk by AMIS Service Requests or by telephone at (202) 653-0421; 
except in the case of Capital Magnet Fund reporting and compliance 
questions, which should be directed to the Capital Magnet Fund help 
desk by completing a Service Request through AMIS using ``Capital 
Magnet Fund'' for the Service Request program. Alternatively, the 
public can contact Capital Magnet Fund staff via email at 
[email protected]. The CDFI Fund will not respond to Applicants' 
reporting, compliance, or disbursement telephone calls or email 
inquiries that are received after 5:00 p.m. ET on July 23, 2020 until 
after the Application deadline. The CDFI Fund will respond to technical 
issues related to AMIS Accounts through 5:00 p.m. ET on July 27, 2020, 
via AMIS Service Requests, or at [email protected], or by telephone 
at (202) 653-0422.
    D. Cost sharing or matching funds requirements: Not applicable.
    E. Other Eligibility Criteria:
    1. How Affiliated Entities Can Submit an Application: As part of 
the Application review process, the CDFI Fund considers whether 
Applicants are Affiliates, as such term is defined in 12 CFR1807.104. 
If an Applicant and its Affiliate(s) wish to submit an Application, 
they must do so through one of the Affiliated entities, in one 
Application; an Applicant and its Affiliates may not submit separate 
Applications. If Affiliates submit multiple or separate Applications, 
the CDFI Fund may, at its discretion, reject all such Applications 
received or select only one of the submitted Applications to deem 
eligible, assuming that Application meets all other eligibility 
criteria in Section III of this NOFA.
    Furthermore, an Applicant that receives an award in this CMF round 
may not become an Affiliate of another

[[Page 32448]]

Applicant that receives an award in this CMF round at any time after 
the submission of a CMF Application under this NOFA. This requirement 
will also be a term and condition of the Assistance Agreement (see 
Application Frequently Asked Questions on the CDFI Fund's website at 
http://www.cdfifund.gov/cmf for more details).
    2. An Applicant will not be eligible to receive a CMF Award if the 
Applicant fails to demonstrate in the Application that its CMF Award 
would result in Eligible Project Costs (Leveraged Costs plus those 
costs funded by the CMF Award) that equal at least 10 times the amount 
of the CMF Award. Note that no costs attributable to Direct 
Administrative Expenses may be considered Eligible Project Costs.

IV. Application and Submission Information

    A. Address To Request Application Package: Application materials 
can be found on the Grants.gov and the CDFI Fund's website at 
www.cdfifund.gov/cmf. Applicants may request a paper version of any 
Application material by contacting the CDFI Fund Help Desk by email at 
[email protected] or by phone at (202) 653-0421.
    B. Content and Form of Application Submission: The CDFI Fund will 
post to its website, at www.cdfifund.gov/cmf, instructions for 
accessing and submitting an Application. Detailed Application content 
requirements are found in the Application and related guidance 
documents. All Applications must be prepared in English and 
calculations must be made in U.S. dollars. Table 4 lists the required 
funding Application documents for the FY 2020 CMF Round. Applicants 
must submit all required documents for the Application to be deemed 
complete. Please be aware that an Applicant that fails to submit 
audited financial statements for its two most recently completed fiscal 
years will be deemed as not having a complete Application and will be 
considered ineligible. The CDFI Fund reserves the right to request and 
review other pertinent or public information that has not been 
specifically requested in this NOFA or the Application. Information 
submitted by the Applicant that the CDFI Fund has not specifically 
requested will not be reviewed or considered as part of the 
Application. Information submitted must accurately reflect the 
Applicant's activities and/or its Subsidiary Insured Depository 
Institution, in the case where the Applicant is an Insured Depository 
Institution Holding Company.

                 Table 4--Funding Application Documents
------------------------------------------------------------------------
       Application document         Submission format      Required?
------------------------------------------------------------------------
Standard Form (SF) 424 Mandatory   Fillable PDF in     Required for all
 Form.                              Grants.gov.         Applicants.
CMF Application..................  AMIS..............  Required for all
                                                        Applicants.
------------------------------------------------------------------------
                     Attachments to the Application
------------------------------------------------------------------------
Audited financial statements       PDF in AMIS.......  Required for all
 (most recent 2 fiscal years).                          Applicants.
Any management letters related to  PDF in AMIS.......  Required for all
 the audited financial statements                       Applicants.
 (most recent 2 fiscal years).
State Charter, Articles of         PDF in AMIS.......  Required only for
 Incorporation, or other                                Applicants that
 establishing documents                                 are not
 designating that the Applicant                         Certified CDFIs.
 is a nonprofit or not-for-profit
 entity under the laws of the
 organization's State of
 formation.
A certification demonstrating tax  PDF in AMIS.......  Required only for
 exempt status from the IRS. For                        Applicants that
 Applicants that are governmental                       are not
 instrumentalities only, and as                         Certified CDFIs.
 long as all other eligibility
 requirements are met, the
 Applicant must submit a legal
 opinion from counsel, in form
 and substance acceptable to the
 CDFI Fund, opining that the
 Applicant is exempt from Federal
 income tax, if the Applicant
 does not otherwise have such
 determination in a document from
 the IRS.
Articles of incorporation, by-     PDF in AMIS.......  Required only for
 laws or other documents                                Applicants that
 demonstrating that the Applicant                       are not
 has a principal purpose of                             Certified CDFIs.
 managing or developing
 affordable housing.
------------------------------------------------------------------------

    The CDFI Fund has a sequential, two-step process that requires the 
submission of Application documents in separate systems and on separate 
deadlines. The SF-424 form must be submitted through Grants.gov and all 
other Application documents through the AMIS portal. The CDFI Fund will 
not accept Applications via email, mail, facsimile, or other forms of 
communication, except in extremely rare circumstances that have been 
pre-approved by the CDFI Fund. The separate Application deadlines for 
the SF-424 and all other Application materials are listed in Tables 1 
and 6. Only the Authorized Representative for the Organization or 
Application Point of Contact designated in AMIS may submit the 
Application through AMIS.
    Applicants are strongly encouraged to submit the SF-424 as early as 
possible through Grants.gov in order to provide sufficient time to 
resolve any potential submission issues. Applicants should contact 
Grants.gov directly with questions related to the registration or 
submission process, as the CDFI Fund does not administer the Grants.gov 
system.
    The CDFI Fund strongly encourages Applicants to start the 
Grants.gov registration process as soon as possible, as it may take 
several weeks to complete (refer to the following link: http://www.grants.gov/web/grants/register.html). An Applicant that has 
previously registered with Grants.gov must verify that its registration 
is current and active. If an Applicant has not previously registered 
with Grants.gov, it must first successfully register in SAM.gov, as 
described in Section IV.D below.
    C. Dun and Bradstreet Data Universal Numbering System (DUNS): 
Pursuant to the Uniform Administrative Requirements, each Applicant 
must provide as part of its Application submission a valid Dun & 
Bradstreet Data Universal Numbering System (DUNS) number. Any Applicant 
without a DUNS number will not be able to register in SAM or register 
and submit an Application in the Grants.gov system. Please allow 
sufficient time for Dun & Bradstreet to respond to inquiries and/or 
requests for DUNS numbers.
    D. System for Award Management (SAM): Any entity applying for 
Federal

[[Page 32449]]

grants or other forms of Federal financial assistance through 
Grants.gov must be registered in SAM before submitting its Application 
materials through that platform. When accessing SAM.gov, users will be 
asked to create a login.gov user account (if they don't already have 
one). Going forward, users will use their login.gov username and 
password every time when logging into SAM.gov. The SAM registration 
process can take four weeks or longer to complete so Applicants are 
strongly encouraged to begin the registration process upon publication 
of this NOFA in order to avoid potential Application submission issues. 
An original, signed notarized letter identifying the authorized entity 
administrator for the entity associated with the DUNS number is 
required by SAM and must be mailed to the Federal Service Desk. This 
requirement is applicable to new entities registering in SAM, as well 
as existing entities with registrations being updated or renewed in 
SAM. Applicants that have previously completed the SAM registration 
process must verify that their SAM accounts are current and active.
    Applicants are required to maintain a current and active SAM 
account at all times during which it has an active Federal award or an 
Application under consideration for an award by a Federal awarding 
agency.
    The CDFI Fund will not consider any Applicant that fails to 
properly register or activate its SAM account and, as a result, is 
unable to submit its Application by the Application deadline. 
Applicants must contact SAM directly with questions related to 
registration or SAM account changes, as the CDFI Fund does not maintain 
this system. For more information about SAM, please visit https://www.sam.gov or call 866-606-8220.

            Table 5_Grants.gov Registration Timeline Summary
------------------------------------------------------------------------
                                                       Estimated minimum
              Step                      Agency         time to complete
------------------------------------------------------------------------
Obtain a DUNS number............  Dun & Bradstreet..  One Week.*
Register in SAM.gov.............  System for Award    Four Weeks.*
                                   Management (SAM).
Register in Grants.gov..........  Grants.gov........  One Week.**
------------------------------------------------------------------------
* Applicants are advised that the stated duration are estimates only and
  represent minimum timeframes. Actual timeframes may take longer. The
  CDFI Fund will not consider any Applicant that fails to properly
  register or activate its SAM account, has not yet received a DUNS
  number, and/or fails to properly register in Grants.gov.
** This estimate assumes an Applicant has a DUNS number, an EIN number,
  and is already registered in SAM.gov.

    E. Submission Dates and Times:
    1. Submission Deadlines: Table 6 lists the deadlines for submission 
of the documents related to the FY 2020 CMF Funding Round:

                                  Table 6--FY 2020 CMF Deadlines for Applicants
----------------------------------------------------------------------------------------------------------------
             Document                        Deadline            Time-- eastern time  (ET)    Submission method
----------------------------------------------------------------------------------------------------------------
SF-424 Mandatory form.............  June 26, 2020.............  11:59 p.m. ET.............  Electronically via
                                                                                             Grants.gov.
Create AMIS Account (if the         July 2, 2020..............  11:59 p.m. ET.............  Electronically via
 Applicant does not already have                                                             AMIS.
 one).
CMF Application and Required        July 27, 2020.............  5:00 p.m. ET..............  Electronically via
 Attachments.                                                                                AMIS.
----------------------------------------------------------------------------------------------------------------

    2. Confirmation of Application Submission in Grants.gov and AMIS: 
Applicants are required to submit the SF-424 Mandatory Form through the 
Grants.gov system under the FY 2020 Capital Magnet Fund Funding 
Opportunity Number (listed at the beginning of this NOFA). All other 
required Application materials must be submitted through the AMIS 
website. Application materials submitted through each system are due by 
the applicable deadline listed in Table 6. Applicants must submit the 
SF-424 by an earlier deadline than that of the other required 
Application materials in AMIS. If a valid SF-424 is not submitted 
through Grants.gov by the corresponding deadline, the Applicant will 
not be able to submit the additional Application materials in AMIS, and 
the Application will be deemed ineligible. Thus, Applicants are 
strongly encouraged to submit the SF-424 as early as possible in the 
Grants.gov portal, given that potential submission issues may impact 
the ability to submit a complete Application.
    (a) Grants.gov Submission Information: Each Applicant will receive 
an initial email from Grants.gov immediately after submitting the SF-
424, confirming that the submission has entered the Grants.gov system. 
This email will contain a tracking number for the submitted SF-424. 
Within 48 hours, the Applicant will receive a second email which will 
indicate if the submitted SF-424 was either successfully validated or 
rejected with errors. However, Applicants should not rely on the email 
notification from Grants.gov to confirm that their SF-424 was 
validated. Applicants are strongly encouraged to use the tracking 
number provided in the first email to closely monitor the status of 
their SF-424 by checking Grants.gov directly. The Application materials 
submitted in AMIS are not accepted by the CDFI Fund until Grants.gov 
has validated the SF-424. In the Grants.gov Workspace function, please 
note that the Application package has not been submitted if you have 
not received a tracking number.
    (b) AMIS Submission Information: AMIS is a web-based portal where 
Applicants will directly enter their Application information and add 
required attachments listed in Table 4. Each Applicant must register as 
an organization in AMIS in order to submit the required Application 
materials through this portal. AMIS will verify that the Applicant 
provided the minimum information required to submit an Application. 
Applicants are responsible for the quality and accuracy of the 
information and attachments included in the Application submitted in 
AMIS. The CDFI Fund strongly encourages the Applicant to allow 
sufficient time to confirm the Application content, review the material

[[Page 32450]]

submitted, and remedy any issues prior to the Application deadline. 
Applicants can only submit one Application in AMIS. Upon submission, 
the Application will be locked and cannot be resubmitted, edited, or 
modified in any way. The CDFI Fund will not unlock or allow multiple 
AMIS Application submissions.
    Prior to submission, each Application in AMIS must be signed by an 
Authorized Representative. An Authorized Representative is an employee 
or officer and has the authority to legally bind and make 
representations on behalf of the Applicant; consultants working on 
behalf of the Applicant cannot be designated as Authorized 
Representatives. The Applicant may include consultants as Application 
point(s) of contact, who will be included on any communication 
regarding the Application and will be able to submit the Application 
but cannot sign the Application. The Authorized Representative and/or 
Application point(s) of contact must be included as ``Contacts'' in the 
Applicant's AMIS account. The Authorized Representative must also be a 
``user'' in AMIS. An Applicant that fails to properly register and 
update its AMIS account may miss important communications from the CDFI 
Fund or fail to submit an Application successfully. Only an Authorized 
Representative for the organization or an Application point of contact 
can submit the Application in AMIS. After submitting its Application, 
the Applicant will not be permitted to revise or modify its Application 
in any way or attempt to negotiate the terms of an Award.
    3. Multiple Application Submissions: Applicants are only permitted 
to submit one complete Application. However, the CDFI Fund does not 
control Grants.gov, which does allow for multiple submissions of the 
SF-424. If an Applicant submits multiple SF-424 Applications in 
Grants.gov, the CDFI Fund will only review the SF-424 Application 
submitted in Grants.gov that is attached to the AMIS Application. 
Applicants can only submit one Application through AMIS.
    4. Late Submission: The CDFI Fund will not accept an SF-424 
submitted after the applicable Grants.gov or AMIS Application submitted 
after the AMIS Application deadline, except where the submission delay 
was a direct result of a Federal government administrative or 
technological error. This exception includes any errors associated with 
Grants.gov, SAM.gov, AMIS or any other applicable government system. 
Please note that this exception does not apply to errors arising from 
obtaining a DUNS number from Dun & Bradstreet, which is not a 
government entity. An Applicant unable to make timely submission of its 
Application due to any errors in the process of obtaining a DUNS number 
will not be allowed to submit its Application after the Application 
deadline has passed.
    (a) SF-424 Late Submission: In cases where a Federal government 
administrative or technological error directly resulted in the late 
submission of the SF-424, the Applicant must submit a written request 
for acceptance of the late SF-424 submission and include documentation 
of the error no later than two business days after the SF-424 deadline. 
The CDFI Fund will not respond to requests for acceptance of late SF-
424 submissions after that time period. Applicants must submit late SF-
424 submission requests to the CDFI Fund via an AMIS service request to 
the CDFI Program with a subject line of ``Late SF-424 Submission 
Request.''
    (b) Application Late Submission: In cases where a Federal 
government administrative or technological error directly resulted in a 
late submission of the Application in AMIS, the Applicant must submit a 
written request for acceptance of the late Application submission and 
include documentation of the error no later than two business days 
after the Application deadline. The CDFI Fund will not respond to 
requests for acceptance of late Application submissions after that time 
period. Applicants must submit late Application submission requests to 
the CDFI Fund via an AMIS service request to the CDFI Program with a 
subject line of ``Late Application Submission Request.''
    5. Intergovernmental Review: Not Applicable.
    6. Funding Restrictions: CMF Awards are limited by the following:
    (a) A Recipient shall use CMF Award funds only for the eligible 
activities set forth in 12 CFR 1807.301 and as described in Section 
II.C and Section II.E of this NOFA and its Assistance Agreement.
    (b) A Recipient may not disburse CMF Award funds to an Affiliate, 
Subsidiary, or any other entity in any manner that would create a 
Subrecipient relationship (as defined in the Uniform Administrative 
Requirements) without the CDFI Fund's prior written approval.
    (c) CMF Award dollars shall only be paid to the Recipient.
    (d) The CDFI Fund, in its sole discretion, may pay CMF Awards in 
amounts, or under terms and conditions, which are different from those 
requested by an Applicant. However, the CDFI Fund will not grant an 
Award in excess of the amount requested by the Applicant.

V. Application Review Information

    A. Criteria: All complete and eligible Applications will be 
reviewed in accordance with the criteria and procedures described in 
the CMF Interim Rule, this NOFA, the Application guidance, and the 
Uniform Administrative Requirements. As part of the review process, the 
CDFI Fund reserves the right to contact the Applicant by telephone, 
email, mail, or through an on-site visit for the sole purpose of 
clarifying or confirming Application information at any point during 
the review process. The CDFI Fund reserves the right to collect such 
additional information from Applicants as it deems appropriate. If 
contacted, the Applicant must respond within the time period 
communicated by the CDFI Fund or its Application may be rejected. For 
the sake of clarity, specific Application evaluation criteria are 
described in the context of the overall Application review and 
selection process described in Section V.B. below.
    B. Review and Selection Process:
    The CDFI Fund will evaluate each complete and eligible Application 
using the multi-phase review process described in this Section. For the 
first two parts of the review process, the Quantitative Assessment and 
External Review, the Applications will be grouped into two categories: 
(1) Financing entities and (2) affordable housing developers/managers. 
Certified CDFIs will automatically be categorized as financing 
entities. Nonprofit Organizations will select whether they are 
primarily financing entities or affordable housing developers/managers. 
The Applications of these two groups will be evaluated on the criteria 
listed in this section. Where appropriate, the CDFI Fund will use 
different criteria in order to evaluate the financial health, capacity, 
and strategies of these distinct entity types. These differences are 
noted in the following sections and the Application Instructions.
    1. Quantitative Assessment: Each complete and eligible Application 
will receive a numeric score based on the responses to quantitative 
questions in the Application. Applications may receive a score of up to 
100 points based on the following factors outlined in Table 7.

[[Page 32451]]



                                    Table 7--Quantitative Assessment Factors
----------------------------------------------------------------------------------------------------------------
                         Section                              Points                Assessment criteria
----------------------------------------------------------------------------------------------------------------
Business and Leveraging Strategy........................              40   Private leverage multiplier.
                                                                           Reasonableness of projected
                                                                           activities based on track record.
                                                                           Whether the Application is
                                                                           proposing to serve Alaska, North
                                                                           Dakota, South Carolina, American
                                                                           Samoa, Guam, the Northern Mariana
                                                                           Islands, or the U.S. Virgin Islands.
Community Impact........................................              35   Percent of rental housing
                                                                           units targeted to Very Low-Income
                                                                           (VLI) or below (50 percent of AMI or
                                                                           below).
                                                                           Percent of Homeownership
                                                                           units targeted to Low-Income (LI) or
                                                                           below (80 percent of AMI or below).
                                                                           Relevant track record of
                                                                           financing and/or supporting units
                                                                           targeted to VLI or LI families.
                                                                           Commitment to serve Rural
                                                                           Areas and track record of serving
                                                                           these areas.
                                                                           Commitment to only finance
                                                                           Economic Development Activities in
                                                                           Low-Income Areas or Underserved Rural
                                                                           Areas (if proposing Economic
                                                                           Development Activities).
                                                                           Percent of housing units to
                                                                           be financed and/or supported in Areas
                                                                           of Economic Distress.
Organizational Capacity.................................              25   Capitalization.
                                                                           Operating Performance.
                                                                           Liquidity.
                                                                           Audit Results.
----------------------------------------------------------------------------------------------------------------

    Within the Business and Leveraging Strategy Section of the 
Quantitative Assessment, an Applicant will generally score more 
favorably to the extent it: Proposes to leverage a higher multiplier of 
private capital; and has a volume of projected activities supported by 
its track record. An Applicant will also score slightly more favorably 
if it is proposing to serve Alaska, North Dakota, South Carolina, 
American Samoa, Guam, the Northern Mariana Islands, or the U.S. Virgin 
Islands.
    Within the Community Impact Section, an Applicant will generally 
score more favorably to the extent that it commits to one or more of 
the following: Financing and/or supporting a higher percentage of 
rental housing units targeted to Very Low-Income Families (if proposing 
to use CMF for rental housing), and/or financing and/or supporting a 
higher percentage of Homeownership units targeted to Low-Income 
Families (if proposing to use CMF for Homeownership). The Applicant 
will also score more favorably to the extent that it commits to: 
Financing and/or supporting Economic Development Activities in Low-
Income Areas only (if proposing to use CMF for Economic Developments 
Activities), and financing and/or supporting a higher percentage of 
units located in Areas of Economic Distress. Areas of Economic Distress 
are census tracts: (a) Where at least 20 percent of households that are 
Very Low-Income (50 percent of AMI or below) spend more than half of 
their income on housing; or (b) that are designated Qualified 
Opportunity Zones under 26 U.S.C. 1400Z-1; or (c) that are Low-Income 
Housing Tax Credit Qualified Census Tracts; or (d) where greater than 
20 percent of households have incomes below the poverty rate and the 
rental vacancy rate is at least 10 percent; or (e) where greater than 
20 percent of the households have incomes below the poverty rate and 
the homeownership vacancy rate is at least 10 percent; or (f) are 
Underserved Rural Areas as defined in the CMF Interim Rule (as amended 
February 8, 2016; 12 CFR part 1807). The CDFI Fund will publish a 
dataset on its website indicating which census tracts are designated as 
Areas of Economic Distress for the FY 2020 Round. Additionally, 
Applicants will score slightly more favorably in this section if they 
are willing to commit to investing 10 percent or more of their CMF 
Award in Rural Areas. Applicants will also score slightly more 
favorably if they also have a track record of serving Rural Areas that 
support their ability to achieve this commitment. Note that while 
Affordable Housing Activities may occur in any Rural Area, Economic 
Development Activities, In Conjunction With Affordable Housing 
Activities, must implement a Concerted Strategy to stabilize or 
revitalize a Low-Income Area or Underserved Rural Area.
    Within the Financial Health section, Applicants will generally 
score more favorably to the extent that their 3-year financial data 
indicate, among other things, the following: Strong capitalization; 
strong operating performance; strong liquidity; and that the Applicant 
has not had any negative findings (e.g. opinion other than unqualified; 
a ``going concern paragraph;'' repeat findings of reportable 
conditions; material weaknesses in internal control) in any of the 
three most recently completed annual audits.
    Once the quantitative score is determined, Applicants in each of 
the two categories (financing entities and affordable housing 
developers/managers) will be ranked in descending order based on their 
quantitative review score. The top 80 percent of Applications in each 
category will be forwarded to the next level of review: External 
Review. The CDFI Fund reserves the right to forward additional 
Applications to the External Review phase in order to ensure that a 
diversity of geographies (including different states as well as 
Metropolitan and Rural Areas) are served by the Applicants reviewed in 
the External Review phase. The CDFI Fund also reserves the right to 
forward all Applicants to the External Review phase, regardless of the 
Quantitative Assessment score, if fewer than 150 CMF Applications are 
received.
    2. External Review: Applications that advance from the Quantitative 
Assessment will be separately scored by two or more external non-
Federal reviewers who are selected based on criteria that include: A 
professional background in affordable housing or a background in 
community and economic development finance with experience with 
affordable housing. These reviewers must complete the CDFI Fund's 
conflict of interest process and be approved by the CDFI Fund. 
Reviewers will be assigned a set number of Applications, consisting of 
either financing entity Applicants or affordable housing developer/
manager Applicants, to review. The reviewer will provide a score for 
each of the

[[Page 32452]]

Applications assessed in accordance with the scoring criteria outlined 
in Section V.B.2 of this NOFA and the Application materials.
    The external reviewer's evaluation will result in the Application 
being awarded up to 100 total points by each reviewer. These points 
will be distributed across three sections: Business and Leveraging 
Strategy (40 possible points), Community Impact (35 possible points), 
and Organizational Capacity (25 possible points). An Applicant's final 
External Review score will be a composite based on the external 
reviewers' evaluation and Quantitative Assessment factors. The majority 
of the score will be based on the external reviewers' evaluation.
    (a) Business and Leveraging Strategy (40 points): In the Business 
and Leveraging Strategy section, the Applicant will address: (i) The 
needs of communities and persons in the areas it proposes to serve with 
a CMF Award and the extent to which the proposed strategy addresses 
these needs; (ii) the affordable housing, economic development, and 
financing gaps addressed by its business strategy; (iii) the projected 
CMF activities and track record; (iv) the role CMF plays in its project 
financing strategy; (v) its strategy for leveraging private capital 
with a CMF Award; and (vi) its strategy for leveraging its CMF Award at 
the Enterprise-level, through re-investments, and/or at the Project-
level (as applicable).
    An Applicant will generally score more favorably in the criteria 
evaluated by the external reviewer to the extent that it: (i) Clearly 
aligns its proposed CMF Award activities and products with the 
affordable housing needs and financing gaps it identifies; (ii) 
demonstrates that its strategy and activities will result in more 
favorable financing rates and terms; (iii) demonstrates that its 
projected activities are achievable based on the Applicant's strategy 
and track record; (iv) describes a clear process for selecting projects 
that have a clear need for CMF financing; (v) has a credible pipeline 
of projects; (vi) has a clear strategy for and track record of 
leveraging private capital; and (vii) has a clear strategy for and 
demonstrates a track record of leveraging funds at the Enterprise-
level, through re-investments, and/or at the Project-level (as 
applicable).
    (b) Community Impact (35 points): In the Community Impact Section, 
the Applicant will address: (i) The extent to which the Applicant's 
strategy is likely to lead to the Affordable Housing and/or Economic 
Development Activities impacts referenced in the Application; (ii) its 
strategy and track record of financing and/or supporting housing units 
targeted to Low-Income Families (for Homeownership) and to Very Low-
Income Families (for rental); (iii) its plans for financing and/or 
supporting Affordable Housing in Areas of Economic Distress; (iv) its 
community engagement and partnerships; (v) if applicable, its strategy 
and track record of financing and/or supporting Economic Development 
Activities and how these activities fit within a Concerted Strategy and 
will benefit the residents of nearby Affordable Housing.
    An Applicant will generally score more favorably in the criteria 
evaluated by the external reviewer to the extent that it: (i) 
Demonstrates how its business strategy will result in one or more of 
the Affordable Housing and/or Economic Development Activities impacts 
identified in the Application and the extent to which it has 
articulated and quantified measurements and evidence to support these 
impacts; (ii) demonstrates a clear and compelling strategy for 
financing and/or supporting housing units targeted to Low-Income 
Families (for Homeownership) and Very Low-Income Families (for rental); 
(iii) presents a strong ability and commitment to finance and/or 
support Affordable Housing in Areas of Economic Distress; (iv) has 
demonstrated community engagement or partnerships that will enhance the 
Applicant's ability to execute its CMF strategy, particularly working 
with local and state governments to reduce regulatory barriers to 
affordable housing; and (v) if proposing Economic Development 
Activities, demonstrates how its proposed Economic Development 
Activities fit within a Concerted Strategy and will benefit the 
residents of the nearby Affordable Housing.
    (c) Organizational Capacity (25 points): In the Organizational 
Capacity section, the Applicant will discuss: (i) Its management team 
and key staff; (ii) the roles and responsibilities of those staff in 
managing a CMF Award; (iii) its past experience managing Federal awards 
(including past CMF Awards); and (iv) its financial health and lending 
or property portfolio (as applicable).
    An Applicant will generally score more favorably in the criteria 
evaluated by the external reviewer to the extent that it demonstrates: 
(i) Strong qualifications of its key personnel with respect to their 
skills and experience in identifying investments, underwriting or 
developing similar projects (as applicable), managing a portfolio of 
similar activities and ensuring compliance with program requirements; 
(ii) success in administering prior CMF Awards, CDFI and/or other 
Federal program awards; (iii) strong financial health; and (iv) solid 
portfolio performance (as applicable).
    (d) Scoring Anomaly: If, in the case of a particular Application, 
the reviewers' total External Review scores vary significantly from 
each other, the CDFI Fund may, in its sole discretion, obtain the 
evaluation and numeric scoring of an additional reviewer to determine 
whether the anomalous score should be replaced with the score of the 
additional reviewer.
    3. Internal Review: At the conclusion of the External Review phase, 
the CMF Program Manager will then determine the overall number of 
Applications that will be initially forwarded for Internal Review. The 
CMF Program Manager may initially forward an amount up to the highest 
scoring 50% of Applications from the External Review to the Internal 
Review, as long as the proportion of financing entity Applications to 
affordable housing developer/manager Applications in the overall 
Application Pool is maintained. Each group of Applications (financing 
entities and affordable housing developers/managers) will be ranked 
separately based on their External Review score. Such Applications will 
be forwarded for Internal Review in descending order of External Review 
score. The forwarded Applications will be drawn from the financing 
entity and affordable housing developer/manager groups in proportion to 
each group's representation in the overall Application pool. For 
example, if the Applicant pool is 60 percent financing entities and 40 
percent affordable housing developers/managers and the CMF Program 
Manager elects to forward 50 Applications to the Internal Review Phase, 
the highest scoring 30 Applications from the financing entity group, 
and the highest scoring 20 Applications from the affordable housing 
developers/managers group would be forwarded to Internal Review.
    These forwarded Applications will constitute the highly qualified 
pool. During the Internal Review, CDFI Fund staff will prioritize the 
Applications in the highly qualified pool for an Award based on a 
combination of the following criteria: (i) Final External Review score; 
(ii) alignment with CMF statutory and policy priorities; (iii) the 
overall quality of the Applicant's strategy; and (iv) the Applicant's 
organizational capacity and financial health. The CDFI Fund will not 
attempt to ensure any specific balance of financing entities and 
affordable housing developers/managers in the final Award pool.

[[Page 32453]]

    In assessing the Application's alignment with CMF statutory and 
policy priorities, CDFI Fund staff will consider the following factors, 
including, but not limited to: The Applicant's proposed activities in 
Areas of Economic Distress; income targeting of the portfolio of 
Affordable Housing units to be financed and/or supported; the number of 
Very Low-Income rental housing units and/or Low-Income Homeownership 
units to be financed and/or supported; the amount of private capital it 
will leverage relative to the CMF Award; and the amount of new 
Enterprise-Level private capital that the Applicant will attract.
    In assessing the quality of the Applicant's strategy, the CDFI Fund 
staff will consider the following factors, including, but not limited 
to: (i) The quality of the Applicant's strategy with respect to how the 
strategy and financing activities address identified community needs; 
(ii) whether the proposed financing activities will help to fill the 
financing gaps in their market; (iii) whether the CMF funds will 
contribute to the Applicant offering more favorable rates and terms 
than are currently available in its Service Area; (iv) whether the 
Applicant's projections are supported by its organizational track 
record, as well as the quality of its pipeline; (v) whether the 
proposed deployment/redeployment schedule is realistic, achievable and 
risk has been appropriately considered; (vi) the likely success of the 
strategy to leverage private capital; (vii) whether the strategy is 
adaptable to changing market conditions; (viii) whether the Applicant's 
strategy is likely to create identified community impacts and the 
extent to which the Applicant has articulated quantifiable measurements 
and evidence to support these impacts; (ix) the Applicant's approach 
for financing and/or supporting Affordable Housing in Areas of Economic 
Distress and meeting Affordable Housing income targeting goals; (x) to 
the extent the Applicant is proposing to undertake Economic Development 
Activities, how those activities are part of a Concerted Strategy and 
will benefit residents of affordable housing.
    In assessing the Applicant's organizational capacity and financial 
health, the CDFI Fund Staff will consider the following factors, 
including, but not limited to, the Applicant's: Financial position and 
organizational strength; track record of performance and compliance 
with Federal awards, including all CDFI Fund awards, if applicable; 
ability to meet Federal award management standards and file appropriate 
reports and address findings from audits, including any Federal Single 
Audits; and staff capacity. The CDFI Fund will also review OMB-
designated repositories of government-wide eligibility qualification 
and financial integrity information, as part of the assessment of 
organizational capacity.
    In the case of an Applicant that has received awards from other 
Federal programs, the CDFI Fund reserves the right to contact officials 
from the appropriate Federal agency or agencies to determine whether 
the Recipient is in compliance with current or prior award agreements, 
as well as to review the results of any Federal Single Audit, and to 
take such information into consideration before making a CMF Award.
    In addition to the criteria outlined above, the Applicant's ability 
to deploy the CMF Award in a timely manner will be a key determinant in 
funding recommendation. Deployment considerations may include the 
Applicant's track record of activities compared with projections, the 
Applicant's progress in committing and/or deploying past CMF Awards, 
and whether the Applicant received a FY 2020 CDFI/NACA Program award 
for a similar business strategy as the proposed use of the CMF Award. 
The CDFI Fund may also consider the number of geographies served when 
determining funding recommendations.
    4. Selection: Once Applications have been internally evaluated and 
preliminary award determinations have been made, the Applications will 
be forwarded to a selecting official for a final award determination. 
After preliminary award determinations are made, the selecting official 
will review the list of potential Recipients to determine whether the 
Recipient pool meets the following statutory objectives:
    (a) The potential Recipients' proposed Service Areas collectively 
represent broad geographic coverage throughout the United States; and
    (b) The potential Recipients' proposed activities equitably 
represent both Metropolitan Areas and Rural Areas. For the purposes of 
the FY 2020 CMF Round, the term Rural Areas is defined per 12 CFR 
1282.1 (Enterprise Duty To Serve Final Rule) as (i) A census tract 
outside of a Metropolitan Statistical Area as designated by the Office 
of Management and Budget; or (ii) A census tract in a Metropolitan 
Statistical Area as designated by the Office of Management and Budget 
that is outside of the Metropolitan Statistical Area's Urbanized Areas, 
as designated by the U.S. Department of Agriculture's (USDA) Rural-
Urban Commuting Area (RUCA) Code #1, and outside of tracts with a 
housing density of over 64 housing units per square mile for USDA's 
RUCA Code #2. The CDFI Fund will publish a dataset indicating which 
census tracts are designated as Rural Areas for the FY 2020 Round on 
its website.
    In the event the preliminary Recipient pool does not reflect the 
geographic coverage or representation of Metropolitan and Rural Areas 
present in the overall Applicant pool, the CDFI Fund reserves the right 
to modify CMF Award amounts and/or the CMF Recipient pool if deemed 
necessary to achieve either of these statutory objectives. For the 
purposes of conducting this analysis, the CDFI Fund will classify 
Applications as addressing Rural Areas if they propose to use 20% or 
more of their award in Rural Areas, and as addressing Metropolitan 
Areas if they propose to use less than 20% of their Award in Rural 
Areas. In order to evaluate the geographic coverage of the potential 
CMF Recipient pool, Applicants will be asked to designate one of the 
following two Service Area types in their Applications: Statewide or 
Multi-State. These Service Area types are further defined in the 
Application. The smallest Service Area an Applicant can request is one 
state; the largest Service Area an Applicant can propose is a 15 state 
Multi-State Service Area. Applicants should indicate in the narrative 
portions of their Application if they plan to concentrate their CMF 
activities in a subset (e.g. a county or a Metropolitan Area) of their 
broader Service Area. If necessary to achieve proportional activity in 
Rural Areas and/or broader geographic coverage, the CDFI Fund may award 
Applications not in the preliminary Recipient pool, including 
Applications outside of the highly qualified pool, in the order of 
their Internal Review scoring ranking. However, the CDFI Fund will not 
award an Application that scores in the bottom 50 percent of the 
External Review score rankings. During the selection process, the CDFI 
Fund also reserves the right to modify or place restrictions on the 
Service Area requested in any Applicant's Application in order to 
further these statutory objectives.
    In cases where the selecting official's award determination varies 
significantly from the initial CMF Award amount recommended by the CDFI 
Fund staff review, the CMF Award recommendation will be forwarded to a 
reviewing official for final determination. The CDFI Fund, in its sole 
discretion, reserves the right to reject an Application and/or adjust 
CMF Award amounts as appropriate, based

[[Page 32454]]

on information obtained during the review process.
    5. Insured Depository Institution Applicants: In the case of 
Applicants that are Insured Depository Institutions or Insured Credit 
Unions, the CDFI Fund will consider safety and soundness information 
from the Appropriate Federal Banking Agency or Appropriate State 
Agency, as applicable. If the Applicant is a CDFI Depository 
Institution Holding Company, the CDFI Fund will consider information 
provided by the Appropriate Federal Banking Agency and Appropriate 
State Agency about both the CDFI Depository Institution Holding Company 
and the CDFI Insured Depository Institution that will expend and carry 
out the Award. If the Appropriate Federal Banking Agency or Appropriate 
State Agency identifies safety and soundness concerns, the CDFI Fund 
will assess whether the concerns cause or will cause the Applicant to 
be incapable of undertaking the activities for which funding has been 
requested.
    6. Right of Rejection: The CDFI Fund reserves the right to reject 
an Application if information (including administrative errors) 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, or indicates fraud or mismanagement on 
the Applicant's part, including mismanagement of another Federal award. 
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. The CDFI Fund 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 changes through the CDFI Fund's 
website. There is no right to appeal the CDFI Fund's Award decisions. 
The CDFI Fund's Award decisions are final.
    7. Anticipated Award Announcement: The CDFI Fund anticipates making 
CMF Award announcements in early 2021.

VI. Federal Award Administration Information

    A. Award Notification: Each successful Applicant will receive 
notification from the CDFI Fund stating that its Application has been 
approved for an Award. Each Applicant not selected for an Award will 
receive notification and be provided a debriefing document in its AMIS 
account.
    B. Administrative and Policy Requirements Prior to Entering into an 
Assistance Agreement: The CDFI Fund may, in its discretion and without 
advance notice to the Recipient, terminate the Award or take other 
actions as it deems appropriate if, prior to entering into an 
Assistance Agreement, information (including an administrative error) 
comes to the CDFI Fund's attention that adversely affects the 
following: The Recipient's eligibility for an Award; the CDFI Fund's 
evaluation of the Application; the Recipient's compliance with any 
requirement listed in the Uniform Requirements; or indicates fraud or 
mismanagement on the Recipient's part, including mismanagement of 
another Federal award.
    If the Recipient's certification status as a CDFI changes prior to 
entering into an Assistance Agreement, the CDFI Fund reserves the 
right, in its sole discretion, to re-calculate the CMF Award, or modify 
the Assistance Agreement based on the Recipient's non-CDFI status.
    By receiving notification of a CMF Award, the Recipient agrees 
that, if the CDFI Fund becomes aware of any information (including an 
administrative error) prior to the Effective Date of the Assistance 
Agreement that either adversely affects the Recipient's eligibility for 
an CMF Award, or adversely affects the CDFI Fund's evaluation of the 
Recipient's Application, or indicates fraud or mismanagement on the 
part of the Recipient, the CDFI Fund may, in its discretion and without 
advance notice to the Recipient, rescind the notice of award or take 
other actions as it deems appropriate.
    The CDFI Fund reserves the right, in its sole discretion, to 
rescind an Award if the Recipient fails to return the Assistance 
Agreement, signed by an Authorized Representative of the Recipient, 
and/or provide the CDFI Fund with any other requested documentation, 
within the CDFI Fund's deadlines.
    In addition, the CDFI Fund reserves the right, in its sole 
discretion, to terminate and rescind the Assistance Agreement and the 
award made under this NOFA for any criteria described in Table 8:

    Table 8--Requirements Prior to Executing an Assistance Agreement
------------------------------------------------------------------------
            Requirement                           Criteria
------------------------------------------------------------------------
Failure to meet reporting            If an Applicant received a
 requirements.                       prior award or allocation under any
                                     CDFI Fund program and is not
                                     current on the reporting
                                     requirements set forth in the
                                     previously executed assistance,
                                     award, allocation, bond loan
                                     agreement(s), or agreement to
                                     guarantee, as of the date of the
                                     notice of award, the CDFI Fund
                                     reserves the right, in its sole
                                     discretion, to delay entering into
                                     an Assistance Agreement and/or to
                                     delay making a Payment of CMF
                                     Award, until said prior Recipient
                                     or allocatee is current on the
                                     reporting requirements in the
                                     previously executed assistance,
                                     award, allocation, bond loan
                                     agreement(s), or agreement to
                                     guarantee.
                                     If such a prior 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 notice of award and the
                                     CMF Award made under this NOFA.
                                     Please note that automated
                                     systems employed by the CDFI Fund
                                     for receipt of reports submitted
                                     electronically typically
                                     acknowledge only a report's
                                     receipt; such acknowledgment does
                                     not warrant that the report
                                     received was complete, nor that it
                                     met reporting requirements. If said
                                     prior 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 notice
                                     of Award and the CMF Award made
                                     under this NOFA.
Failure to maintain CDFI             A Recipient must be a
 Certification (if applicable) or    Certified CDFI or an eligible
 eligible Nonprofit Organization     Nonprofit Organization, as each is
 status (if applicable).             defined in the CMF Interim Rule and
                                     this NOFA, prior to entering into
                                     an Assistance Agreement.

[[Page 32455]]

 
                                     If, at any time prior to
                                     entering into an Assistance
                                     Agreement under this NOFA, an
                                     Applicant that is a Certified CDFI
                                     has submitted reports (or failed to
                                     submit an annual certification
                                     report as instructed by the CDFI
                                     Fund) to the CDFI Fund that
                                     demonstrate noncompliance with the
                                     requirements for certification, but
                                     the CDFI Fund has yet to make a
                                     final determination regarding
                                     whether or not the entity is
                                     Certified, the CDFI Fund reserves
                                     the right, in its sole discretion,
                                     to delay entering into an
                                     Assistance Agreement and/or to
                                     delay making a Payment of CMF
                                     Award, pending full resolution, in
                                     the sole determination of the CDFI
                                     Fund, of the noncompliance.
                                     If the Applicant is unable
                                     to meet this requirement, in the
                                     sole determination of the CDFI
                                     Fund, the CDFI Fund reserves the
                                     right, in its sole discretion, to
                                     terminate and rescind the notice of
                                     award and the CMF Award made under
                                     this NOFA.
Pending resolution of                The CDFI Fund will delay
 noncompliance.                      entering into an Assistance
                                     Agreement with a Recipient that has
                                     pending noncompliance issues with
                                     any of its previously executed CDFI
                                     Fund award(s), allocation(s), bond
                                     loan agreement(s), or agreement(s)
                                     to guarantee.
                                     If said prior Recipient or
                                     allocatee is unable satisfactorily
                                     resolve the compliance issues, the
                                     CDFI Fund reserves the right, in
                                     its sole discretion, to terminate
                                     and rescind the notice of award and
                                     the CMF Award made under this NOFA.
Default or Noncompliance status...   If, at any time prior to
                                     entering into an Assistance
                                     Agreement, the CDFI Fund determines
                                     that an Applicant (or an Affiliate
                                     of the Applicant) that is a prior
                                     CDFI Fund Recipient or allocatee
                                     under any CDFI Fund program is
                                     noncompliant or found in default
                                     with any previously executed CDFI
                                     Fund award or Assistance
                                     agreement(s) and the CDFI Fund has
                                     provided written notification that
                                     the Applicant is ineligible to
                                     apply for or receive any future
                                     awards or allocations for a time
                                     period specified by the CDFI Fund
                                     in writing, the CDFI Fund may, in
                                     its sole discretion, delay entering
                                     into an Assistance Agreement with
                                     Applicant until the Recipient has
                                     cured the noncompliance by taking
                                     actions the CDFI Fund has specified
                                     in writing within such specified
                                     timeframe. If the Recipient is
                                     unable to cure the noncompliance
                                     within the specified timeframe, the
                                     CDFI Fund may modify or rescind all
                                     or a portion of the CMF Award made
                                     under this NOFA.
Compliance with Federal civil        The CDFI Fund will
 rights requirements.                terminate and rescind the
                                     Assistance Agreement and the CMF
                                     Award made under this NOFA if,
                                     prior to entering into an
                                     Assistance Agreement under this
                                     NOFA, the Recipient receives a
                                     final determination, made within
                                     the last 3 years of the publication
                                     date of this NOFA, in any
                                     proceeding instituted against the
                                     Recipient in, by, or before any
                                     court, governmental, or
                                     administrative body or agency,
                                     declaring that the CMF Award
                                     Recipient has violated the
                                     following laws: Title VI of the
                                     Civil Rights Act of 1964, as
                                     amended (42 U.S.C. 2000d); Section
                                     504 of the Rehabilitation Act of
                                     1973 (29 U.S.C. 794); the Age
                                     Discrimination Act of 1975 (42
                                     U.S.C. 6101-6107); Title VIII of
                                     the Civil Rights Act of 1968, as
                                     amended (42 U.S.C. 3601 et seq.);
                                     and Executive Order 13166,
                                     Improving Access to Services for
                                     Persons with Limited English
                                     Proficiency.
Do Not Pay........................   The CDFI Fund reserves the
                                     right, in its sole discretion, to
                                     rescind an award if the Recipient
                                     is identified as an ineligible
                                     Recipient in the Do Not Pay
                                     database.
                                     The Do Not Pay Business
                                     Center was developed to support
                                     Federal agencies in their efforts
                                     to reduce the number of improper
                                     payments made through programs
                                     funded by the Federal government.
Safety and soundness..............   If it is determined that
                                     the Recipient is or will be
                                     incapable of meeting its CMF Award
                                     obligations, the CDFI Fund will
                                     deem the Recipient to be ineligible
                                     or require it to improve safety and
                                     soundness conditions prior to
                                     entering into an Assistance
                                     Agreement.
------------------------------------------------------------------------

    C. Assistance Agreement: Each Applicant that is selected to receive 
an award under this NOFA must enter into an Assistance Agreement with 
the CDFI Fund in order to become a Recipient and receive Payment. Each 
CMF Award under this NOFA generally will have a period of performance 
that begins with the announcement date of the Award and continues until 
the end of the period of affordability, as set forth at 12 CFR 
1807.401(d) and 12 CFR 1807.402, and as further set forth in the 
Assistance Agreement.
    1. The Assistance Agreement will set forth certain required terms 
and conditions of the CMF Award, which will include, but not be limited 
to:
    (a) The amount of the award;
    (b) The approved uses of the award;
    (c) The approved Service Area in which the award may be used;
    (d) Performance goals and measures;
    (e) Reinvestment requirements for Program Income; and
    (f) Reporting requirements for all Recipients.
    2. Prior to executing the Assistance Agreement, the CDFI Fund may, 
in its discretion, allow Recipients to request changes to the Service 
Area of the Award and certain performance goals and measures. The CDFI 
Fund, in its sole determination, may approve or reject these requested 
changes or propose other modifications, including a reduction in the 
Award amount. The CDFI Fund will only approve performance goals and 
measures or Service Area changes if it determines that such requested 
changes do not undermine the competitive process upon which the CMF 
Award determination was made. The CDFI Fund may also, in its 
discretion, provide Recipients the opportunity to add states to their 
Service Area in order to serve states not already covered in the Award 
pool and to further HERA's goal that the CMF serve geographically 
diverse areas of every state. The CDFI Fund may also, in its 
discretion, provide Recipients the opportunity to add states to its 
approved Service Area in order to serve geographies for which: (i) The 
President issued a ``major disaster declaration'' and (ii) the major 
disaster declaration makes such geographies eligible for both 
``individual and public assistance.'' The major disaster declaration 
must be made after the publication date of this NOFA

[[Page 32456]]

and prior to the execution of the Recipient's Assistance Agreement. In 
these cases, the CDFI Fund may allow a Recipient to exceed the maximum 
15 state Service Area, if applicable. Any modifications agreed upon 
prior to the execution of the Assistance Agreement will become a 
condition of the Award.
    3. The Assistance Agreement shall provide that, prior to any 
determination by the CDFI Fund that a Recipient has failed to comply 
substantially with the Act, the CMF Interim Rule, or the environmental 
quality regulations, the CDFI Fund shall provide the Recipient with 
reasonable notice and opportunity for hearing. If the Recipient fails 
to comply substantially with the Assistance Agreement, the CDFI Fund 
may:
    (a) Require changes in the performance goals set forth in the 
Assistance Agreement;
    (b) Reduce or terminate the CMF Award; or
    (c) Require repayment of any CMF Award that has been distributed to 
the Recipient.
    4. The Assistance Agreement shall also provide that, if the CDFI 
Fund determines noncompliance with the terms and conditions of the 
Assistance Agreement on the part of the Recipient, the CDFI Fund may:
    (a) Bar the Recipient from reapplying for any assistance from the 
CDFI Fund; or
    (b) Take such other actions as the CDFI Fund deems appropriate or 
as set forth in the Assistance Agreement.
    5. In addition to entering into an Assistance Agreement, each 
Applicant selected to receive a CMF Award must furnish to the CDFI Fund 
a certificate of good standing from the jurisdiction in which it was 
formed. The CDFI Fund may, in its sole discretion, also require the 
Applicant to furnish an opinion from its legal counsel, the content of 
which may be further specified in the Assistance Agreement, and which, 
among other matters, opines that:
    (a) The Recipient is duly formed and in good standing in the 
jurisdiction in which it was formed and the jurisdiction(s) in which it 
transacts business;
    (b) The Recipient has the authority to enter into the Assistance 
Agreement and undertake the activities that are specified therein;
    (c) The Recipient has no pending or threatened litigation that 
would materially affect its ability to enter into and carry out the 
activities specified in the Assistance Agreement;
    (d) The Recipient is not in default of its articles of 
incorporation or formation, bylaws or operating agreements, other 
organizational or establishing documents, or any agreements with the 
Federal government;
    (e) The CMF affordability restrictions that are to be imposed by 
deed restrictions, covenants running with the land, or other CDFI Fund 
approved mechanisms are recordable and enforceable under the laws of 
the State and locality where the Recipient will undertake its CMF 
activities;
    (f) The Recipient is exempt from Federal Income taxation pursuant 
to the Internal Revenue Code of 1986; and
    (g) The Recipient is designated as a nonprofit or not for profit 
entity under the laws of the organization's State of formation.
    D. Paperwork Reduction Act: 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. If applicable, the CDFI Fund may inform Applicants that they do 
not need to provide certain Application information otherwise required. 
Pursuant to the Paperwork Reduction Act, the Capital Magnet Fund 
Application has been assigned the following control number: 1559-0036.
    E. Reporting: The CDFI Fund will require each Recipient that 
receives a CMF Award through this NOFA to account for and report to the 
CDFI Fund on the use of the CMF Award. This will require Recipients to 
establish administrative controls, subject to the Uniform 
Administrative Requirements and other applicable OMB guidance. The CDFI 
Fund will collect information from each such Recipient on its use of 
the CMF Award annually following Payment and more often if deemed 
appropriate by the CDFI Fund in its sole discretion. The CDFI Fund will 
provide guidance to Recipients outlining the format and content of the 
information required to be provided to describe how the funds were 
used.
    The CDFI Fund may collect information from each Recipient 
including, but not limited to, an annual report with the components 
listed in Table 9:

                     Table 9--Reporting Requirements
------------------------------------------------------------------------
             Criteria                            Description
------------------------------------------------------------------------
Single Audit (if applicable)......  A non-profit Recipient must complete
                                     an annual Single Audit pursuant to
                                     the Uniform Requirements (2 CFR
                                     200.500) if it expends $750,000 or
                                     more in Federal awards in its
                                     fiscal year, or such other dollar
                                     threshold established by OMB
                                     pursuant to 2 CFR 200.500. If a
                                     Single Audit is required, it must
                                     be submitted electronically to the
                                     Federal Audit Clearinghouse (FAC)
                                     (see 2 CFR subpart F--Audit
                                     Requirements in the Uniform
                                     Requirements) and optionally
                                     through AMIS.
Financial Statement Audit.........  For-profit and nonprofit Recipients
                                     must submit a Financial Statement
                                     Audit (FSA) report in AMIS, along
                                     with the Recipient's statement of
                                     financial condition audited or
                                     reviewed by an independent
                                     certified public accountant.
Performance Report................  The Recipient must submit a
                                     performance report not less than
                                     annually, which is a progress
                                     report on the Recipient's use of
                                     the CMF Award towards meeting its
                                     performance goals, Affordable
                                     Housing outcomes, and the
                                     Recipient's overall performance.
                                     The CMF Performance Report covers
                                     the Announcement Date through the
                                     Investment Period for the CMF Award
                                     and the ten-year Affordability
                                     Period for each Project. The
                                     Investment Period shall mean the
                                     period beginning with the Effective
                                     Date of the Assistance Agreement
                                     and ending not earlier than the
                                     fifth year anniversary of the
                                     Effective Date, or as otherwise
                                     established in the Assistance
                                     Agreement. The Affordability Period
                                     shall mean, for each Project, the
                                     period beginning on the date when
                                     the Project is placed into service
                                     and consisting of the full ten
                                     consecutive years thereafter, or as
                                     otherwise established in the
                                     Assistance Agreement.
                                    If the Recipient fails to meet a
                                     performance goal or reporting
                                     requirements, it must submit an
                                     explanation of noncompliance via
                                     AMIS.

[[Page 32457]]

 
Environmental Review..............  The Recipient shall submit the
                                     Environmental Review Notification
                                     Report each time the Recipient
                                     identifies a new proposed CMF
                                     project for which (i) a categorical
                                     exclusion does not apply and/or
                                     (ii) the Recipient determines that
                                     the proposed project does involve
                                     actions that normally require an
                                     Environmental Impact Statement, as
                                     described in 12 CFR part 1815. The
                                     Environmental Review Notification
                                     Report must be submitted to the
                                     CDFI Fund no later than one hundred
                                     eighty (180) days prior to the date
                                     that funds are Committed to a
                                     Project.
------------------------------------------------------------------------
* Personally Identifiable Information (PII) is information, which if
  lost, compromised, or disclosed without authorization, could result in
  substantial harm, embarrassment, inconvenience, or unfairness to an
  individual. Although Applicants are required to enter addresses of
  homes and other properties in AMIS, Applicants should not include the
  following PII for the individuals who received the financial products
  or services in AMIS or in the supporting documentation (i.e.--name of
  the individual, Social Security Number, driver's license or state
  identification number, passport number, Alien Registration Number,
  etc.). This information should be redacted from all supporting
  documentation (if applicable).

    Each Recipient is responsible for the timely and complete 
submission of the annual reporting documents. The CDFI Fund will use 
such information to monitor each Recipient's compliance with the 
requirements set forth in the Assistance Agreement and to assess the 
impact of the CMF. 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 notice to Recipients.
    F. Financial Management and Accounting: The CDFI Fund will require 
Recipients to maintain financial management and accounting systems that 
comply with Federal statutes, regulations, and the terms and conditions 
of the CMF Award. These systems must be sufficient to permit the 
preparation of reports required by general and program specific terms 
and conditions, including the tracing of funds to a level of 
expenditures adequate to establish that such funds have been used in 
accordance with the Federal statutes, regulations, and the terms and 
conditions of the CMF Award.
    The cost principles used by Recipients must be consistent with 
Federal cost principles; must support the accumulation of costs as 
required by the principles; and must provide for adequate documentation 
to support costs charged to the CMF Award. In addition, the CDFI Fund 
will require Recipients to: Maintain effective internal controls; 
comply with applicable statutes and regulations, the Assistance 
Agreement, and related guidance; evaluate and monitor compliance; take 
action when not in compliance; and safeguard personally identifiable 
information.

VII. Agency Contacts

    A. Availability: The CDFI Fund will respond to questions and 
provide support concerning this NOFA and the Application between the 
hours of 9:00 a.m. and 5:00 p.m. ET, starting on the date of the 
publication of this NOFA until the close of business on the third 
business day preceding the Application deadline. The CDFI Fund will not 
respond to questions or provide support concerning the Application that 
are received after 5:00 p.m. ET on said date, until after the 
Application deadline. CDFI Fund IT support will be available until 5:00 
p.m. ET on date of the Application deadline. Applications and other 
information regarding the CDFI Fund and its programs may be obtained 
from the CDFI Fund's website at http://www.cdfifund.gov/cmf. The CDFI 
Fund will post on its website responses to questions of general 
applicability regarding the CMF.
    B. The CDFI Fund's contact information is listed in Table 10:

                                          Table 10--Contact Information
----------------------------------------------------------------------------------------------------------------
                                                                  Telephone
          Type of question                Preferred method      number  (not            Email addresses
                                                                 toll free)
----------------------------------------------------------------------------------------------------------------
CMF.................................  Submit a Service           202-653-0421  [email protected].
                                       Request in AMIS.
CDFI Certification..................  Submit a Service           202-653-0423  [email protected].
                                       Request in AMIS.
Compliance Monitoring and Evaluation  Submit a Service           202-653-0423  [email protected].
                                       Request in AMIS.
Information Technology Support......  Submit a Service           202-653-0422  [email protected].
                                       Request in AMIS.
----------------------------------------------------------------------------------------------------------------

    The preferred method of contact is to submit a Service Request 
within AMIS. For a CMF Application question, select ``Capital Magnet 
Fund'' for the program. For a CDFI Certification question, select 
``Certification.'' For a Compliance question, select ``Compliance & 
Reporting.'' For Information Technology, select ``Technical Issues.'' 
Failure to select the appropriate program for the Service Request could 
result in delays in responding to your question.
    C. Communication With the CDFI Fund: The CDFI Fund will use AMIS to 
communicate with Applicants and Recipients, using the contact 
information maintained in their respective AMIS accounts. Therefore, 
the Recipient and any Subsidiaries, signatories, and Affiliates must 
maintain accurate contact information (including contact persons and 
Authorized Representatives, email addresses, fax numbers, phone 
numbers, and office addresses) in its AMIS account(s). For more 
information about AMIS please see the Help documents posted at https://amis.cdfifund.gov/s/Training.
    D. Civil Rights and Diversity: Any person who is eligible to 
receive benefits or services from the CDFI Fund or Recipients under any 
of its programs is entitled to those benefits or services without being 
subject to prohibited discrimination. The Department of the Treasury's 
Office of Civil Rights and Diversity enforces various Federal statutes 
and regulations that prohibit discrimination in financially assisted 
and conducted programs and activities

[[Page 32458]]

of the CDFI Fund. If a person believes that s/he has been subjected to 
discrimination and/or reprisal because of membership in a protected 
group, s/he may file a complaint with: Associate Chief Human Capital 
Officer, Office of Civil Rights, and Diversity, 1500 Pennsylvania Ave. 
NW., Washington, DC 20220 or (202) 622-1160 (not a toll-free number).
    E. Statutory and National Policy Requirements: The CDFI Fund will 
manage and administer the Federal award in a manner so as to ensure 
that Federal funding is expended and associated programs are 
implemented in full accordance with the U.S. Constitution, Federal Law, 
statutory, and public policy requirements: including, but not limited 
to, those protecting free speech, religious liberty, public welfare, 
the environment, and prohibiting discrimination.

VIII. Other Information

    None.

    Authority: Pub. L. 110-289. 12 U.S.C. 4701, 12 CFR part 1805, 12 
CFR part 1807, 12 CFR part 1815, 12 U.S.C. 4502.

Jodie L. Harris,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2020-11580 Filed 5-28-20; 8:45 am]
BILLING CODE 4810-70-P