[Federal Register Volume 88, Number 12 (Thursday, January 19, 2023)]
[Notices]
[Pages 3460-3478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00932]


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DEPARTMENT OF THE TREASURY


Community Development Financial Institutions Fund

Capital Magnet Fund; 2023 Funding Round.

    Funding Opportunities: Capital Magnet Fund; 2023 Funding Round.
    Funding Opportunity Title: Notice of Funds Availability (NOFA) 
inviting Applications for the fiscal year (FY) 2023 Funding Round of 
the Capital Magnet Fund (CMF) and waiver of the requirement to verify 
tenant income annually for CMF Recipients who used their CMF Awards to 
finance or support rental housing Projects with an Affordability Period 
covering the dates of April 1, 2020 through December 31, 2021.
    Announcement Type: Announcement of funding opportunity.
    Funding Opportunity Number: CDFI-2023-CMF.
    Catalog of Federal Domestic Assistance (CFDA) Number: 21.011.
    Dates:

              Table 1--FY 2023 Capital Magnet Fund Funding Round Critical Deadlines for Applicants
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                                                              Time (eastern time--
            Description                     Deadline                   ET)                Submission method
----------------------------------------------------------------------------------------------------------------
Last day to create an Awards         February 23, 2023.....  11:59 p.m. ET.........  Electronically via Awards
 Management Information System                                                        Management Information
 (AMIS) Account (if Applicant                                                         System (AMIS).
 doesn't have one).
Last day to enter or update the      February 23, 2023.....  11:59 p.m. ET.........  Electronically via AMIS.
 Employer Identification Number
 (EIN) and Unique Entity Identifier
 (UEI) numbers in AMIS (all
 Applicants).
Last day to submit SF-424 Mandatory  February 23, 2023.....  11:59 p.m. ET.........  Electronically via
 Form (Application for Federal                                                        Grants.gov.
 Assistance).
For Applicants using a Consortium    February 23, 2023.....  11:59 p.m. ET.........  Submit Service Request via
 Approach only: Applicants are                                                        AMIS using ``Capital
 asked to submit a Service Request                                                    Magnet Fund'' for the
 in AMIS notifying the CMF Program                                                    program.
 of the organization's intent to
 apply as a Consortium Member using
 the Consortium Approach.
Last day to contact Capital Magnet   March 17, 2023........  5:00 p.m. ET..........  Submit Service Request via
 Fund Staff.                                                                          AMIS using ``Capital
                                                                                      Magnet Fund'' for the
                                                                                      program; call CDFI Fund
                                                                                      Helpdesk: 202-653-0421; or
                                                                                      email [email protected].
Last day to contact CDFI Fund with   March 17, 2023........  5:00 p.m. ET..........  Submit Service Request via
 questions about Compliance or CDFI                                                   AMIS using ``Compliance
 Certification.                                                                       and Reporting'' or
                                                                                      ``Certification''; call
                                                                                      CCME Helpdesk: 202-653-
                                                                                      0423; or email
                                                                                      [email protected].
Last day to contact AMIS-IT Help     March 21, 2023........  5:00 p.m. ET..........  Submit Service Request via
 Desk (regarding AMIS technical                                                       AMIS using ``Technical
 problems only).                                                                      Issues'' for the program;
                                                                                      call AMIS Helpdesk: 202-
                                                                                      630-0422; or email
                                                                                      [email protected].
Last day to submit CMF Application   March 21, 2023........  11:59 p.m. ET.........  Electronically via AMIS.
 and Required Attachments.
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[[Page 3461]]

    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 
certified 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 beginning in FY 2016 and occurring annually 
thereafter. To date, more than $1.07 billion has been awarded under the 
CMF Program.
    C. Programmatic Changes from the Prior Round NOFA:
    1. Ability to apply using a Consortium Approach: Under this NOFA, 
Applicants will be able to apply for a CMF Award as individual members 
of a Consortium. See Section I.D.2 and Section I.D.3 for definitions. 
Additional details on applying for and performing as a Consortium 
member as it relates to a CMF Award are provided throughout this NOFA.
    2. Expansion of the High Opportunity Area (HOA) Definition: In 
addition to the HOA criteria established by the Federal Housing Finance 
Agency's Duty to Serve Rule, this NOFA includes Expanded CMF HOA 
Criteria developed by the CDFI Fund. See Section I.D.6 of this NOFA for 
additional details.
    D. Definitions:
    1. Areas of Economic Distress: Areas of Economic Distress are 
census tracts: (a) where at least 20% of households that are Very Low-
Income (50% 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 Sec.  1400Z-1; or (c) that are Low-Income Housing Tax Credit 
Qualified Census Tracts; or (d) where greater than 20% of households 
have incomes below the poverty rate and the rental vacancy rate is at 
least 10%; or (e) where greater than 20% of the households have incomes 
below the poverty rate and the homeownership vacancy rate is at least 
10%; or (f) are Underserved Rural Areas as defined in the CMF Interim 
Rule. The CDFI Fund will publish a dataset on its website indicating 
which census tracts are designated as Areas of Economic Distress for 
the FY 2023 CMF Funding Round.
    2. Consortium: A Consortium is comprised of a group of at least 
two, and no more than five, eligible, and unaffiliated CDFIs or 
nonprofit affordable housing developers/managers, applying for a CMF 
Award under this NOFA. The purpose of the Consortium must be to finance 
and support Affordable Housing, and Economic Development Activities, if 
applicable.
    3. Consortium Approach: The Consortium Approach is the manner in 
which members of a Consortium apply for a CMF Award under this NOFA, 
wherein member Applications are evaluated both individually and as a 
Consortium.
    4. Entity Approach: The Entity Approach is the manner in which the 
Applicant will be using the CMF Award. There are two types of Entity 
Approaches: (a) financing entities and (b) affordable housing 
developers/managers. Each Applicant will be required to specify which 
type of Entity Approach it will be using prior to starting the 
Application.
    A financing entity is an entity whose predominant business activity 
is the provision of arm's length transactions and services to 
independent, unrelated parties, each acting in its own best interest. 
Such transactions support and promote affordable housing and/or 
community development through the provision of financial products that 
serve low-income communities, individuals, or families in underserved 
markets or communities.
    An affordable housing developer/manager is a Nonprofit Organization 
whose primary mission is the construction, development, redevelopment, 
preservation, or management of affordable housing. The affordable 
housing developer/manager may own the housing that it develops; may own 
it in part, such as a limited partnership; may sell the Homeownership 
or rental housing it develops once completed; or may sell but continue 
to manage the housing if rental housing.
    5. High Opportunity Areas (HOA):
    (A) Standard HOA Criteria: Shall mean the definition of High 
Opportunity Area (HOA) found in the Federal Housing Finance Agency's 
Duty to Serve Rule (12 CFR 1282.1), effective as of the date of the 
publication of this NOFA. This term is defined as: (a) An area 
designated by the Department of Housing and Urban Development (HUD) as 
a ``Difficult Development Area'' during any year covered by an 
Enterprise's Underserved Markets Plan (Plan) or in the year prior to a 
Plan's effective date, whose poverty rate falls below 10% (for 
Metropolitan areas) or below 15% (for Non-Metropolitan areas); or (b) 
an area designated by a state or local Qualified Allocation Plan (QAP) 
as a high opportunity area whose poverty rate falls below 10% (for 
Metropolitan areas) or 15% (for Non-Metropolitan areas). The CDFI Fund 
will publish a dataset on its website indicating which census tracts 
are designated as High Opportunity Areas for the FY 2023 CMF Funding 
Round.
    (B) Expanded CMF HOA Criteria: The CMF Program will accept an 
expanded definition of High Opportunity Area for areas that do not meet 
the Federal Housing Finance Agency definition, but instead meet a set 
of Expanded CMF HOA Criteria demonstrating the designated area(s) 
provide access to a combination of at least three of the following four 
criteria: (1) high-quality youth (K-12) education opportunities; (2) 
employment opportunities; (3) transportation opportunities; and/or (4) 
financial service opportunities. For a

[[Page 3462]]

Project to qualify as being in a High Opportunity Area under the 
Expanded CMF HOA Criteria definition, the location of the Project must 
meet at least three of the four Expanded CMF HOA Criteria, and cannot 
be located in a Food Desert as identified by the U.S. Department of 
Agriculture (https://www.ers.usda.gov/data/fooddesert) as of the 
publication date of this NOFA in the Federal Register.
    I. CMF HOA Criteria Definitions: To meet the Expanded CMF HOA 
definition, the location must meet at least three of the following four 
CMF HOA Criteria:
    (1) Access to High-Quality Youth (K-12) Education: To meet the 
high-quality youth (K-12) education criterion, the CMF-financed/
supported rental unit(s) must be: (i) located in an area served by a 
school that, in any of the three years prior to the date of this NOFA, 
has been either recognized by the U.S. Department of Education as a 
National Blue Ribbon School, or has received the highest rating 
available from its State's education agency; and (ii) available to 
Families living in CMF-financed/supported rental units.
    (2) Access to Employment: To meet the access to employment 
criterion, the CMF-financed/supported rental unit(s) must be located 
within a one-mile radius of one of the 25 largest employers in the 
applicable county. The largest employers in the county are measured by 
number of employees at the location(s) in the applicable county.
    (3) Access to Transportation: To meet the access to transportation 
criterion, the CMF-financed/supported rental unit(s) must be within \1/
4\ mile of a multi-modal transit station (includes at least two forms 
of public transit such as metro, light rail, bus, ferry, or trolley) if 
located in a Metropolitan Area. The CMF-financed/supported rental 
unit(s) must be within two miles of ``Fixed-route Public 
Transportation'' if located in a rural (``Non-Metropolitan'') area. 
``Fixed-route Public Transportation'' means year-round, regularly 
scheduled public transportation that operates at least 5 days per week 
and provides regular service throughout the day.
    (4) Access to Financial Services: To meet the access to financial 
services criterion, the CMF-financed/supported rental unit(s) must be 
in a census tract with a bank or credit union branch presence (i.e., 
not simply a standalone ATM).
    E. 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 each 
Applicant's merits, eligibility, and any risks to the program posed by 
each Applicant. 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.
    F. 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 2023 CMF Funding Round: (i) Applications where at 
least 20% of all rental Affordable Housing units that will be financed 
and/or supported with FY 2023 CMF Awards are reserved for Very Low-
Income Families, and/or at least 20% of all Homeownership Affordable 
Housing units are reserved for Low-Income Families; (ii) Applications 
where rental Affordable Housing units located in either Areas of 
Economic Distress (AED) and/or High Opportunity Areas (HOA) are 
reserved for Eligible-Income Families; (iii) Applications where 
Homeownership Affordable Housing units are for (a) Families with 
incomes above 80% and no greater than 120% of AMI located in an AED, 
(b) Low-Income Families (up to 80% of the AMI), or (c) a combination of 
(a) and (b); and (iv) 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 territories not 
included in the Service Areas of Recipients in the past two CMF rounds 
FY 2020 and FY 2021: American Samoa, Guam, the Northern Mariana 
Islands, and the U.S. Virgin Islands.
    G. 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 $320.6 
million in grants for the FY 2023 CMF Funding Round under this NOFA. 
Eligible organizations of all sizes are encouraged to apply, including 
new and previous Applicants, past CMF Recipients, and Applicants 
focused on Homeownership, rental housing, or both. HERA prohibits the 
CDFI Fund from obligating more than 15% of the aggregate available in 
CMF Awards to any Applicant, its Subsidiaries, and its Affiliates in 
the same funding round. In past rounds, the CDFI Fund has provided 
Awards smaller than the statutory cap. For example, in the last three 
funding rounds, Awards ranged from $633,750 to $12,000,000, with an 
average Award of $4.4 million. Given the administrative and compliance 
responsibilities for Recipients, the CDFI Fund will not accept 
Applications that request less than $500,000, and will not provide 
Awards below $500,000 to any CMF Award Recipients.
    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. An Applicant may receive 
only one Award through the FY 2023 CMF Funding Round. Affiliates of 
Applicants are not allowed to apply separately.
    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

[[Page 3463]]

Affiliate (separate legal entity) or in a specific Project being 
undertaken by an Affiliate. With the exception of Depository 
Institution Holding Company Applicants, CMF Awards may not be used to 
support the activities of, or otherwise be passed through, transferred, 
or co-awarded to, third-party entities, whether Affiliates, 
Subsidiaries, or others, unless done pursuant to a merger or 
acquisition or similar transaction, and with the CDFI Fund's prior 
written consent.
    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: (i) Predevelopment; (ii) acquisition; 
(iii) site work (preconstruction); (iv) construction/rehabilitation; 
(v) permanent financing; or (vi) 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. Recipients using 
a Consortium Approach (see Section III.E.1) with separate CMF Awards 
from the FY 2023 CMF Funding Round must use their Awards to finance the 
same Projects. For these Projects, Eligible Project Costs, unit 
production, and Leveraged Costs are prorated.
    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 (e.g. construction of 
for-sale housing) and the CMF Award is used in a different phase from 
the other CDFI Fund program awards/allocations. However in the case of 
Homeownership purchase assistance, a CMF Award cannot be used for a 
Homeownership property that is permanently financed (or supported) by 
mortgages funded by both the Recipient's (or any of its Affiliates') 
CMF Award, and an award/Allocation from another CDFI Fund program, or 
that of another CMF Recipient.
    2. As further set forth in the Assistance Agreement, CMF Recipients 
shall not count or report as Leveraged Costs pursuant to this NOFA any 
costs financed and/or supported by a Recipient's awards/allocations 
from other CDFI Fund programs or awards/allocations from other CMF 
Recipients, including awards from prior CMF rounds. While a Recipient 
may combine its CMF Award pursuant to this NOFA with other 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).
    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 2023 CMF Funding Round 
to begin in 2023. The period of performance for each CMF Award begins 
on the date the CDFI Fund announces the Recipients of the FY 2023 CMF 
Funding Round 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% of a CMF Award may be 
used for Economic Development Activities. The CDFI Fund allows all 
Recipients to use up to 5% 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.
    The CDFI Fund recognizes that some CMF Recipients, due to their 
business model, may need to work with a third-party originator to 
originate the CMF loans for mortgage financing. The CMF regulations in 
12 CFR 1807.104 defines ``Purchase'' as ``to provide direct financing 
to a Family for purposes of Homeownership.'' The CDFI Fund hereby 
clarifies that under the definition of ``Purchase,'' a CMF Recipient 
may use its CMF Award to purchase CMF eligible loans from a third-party 
originator within 12 months of origination. The CDFI Fund deems the CMF 
Recipient's purchase of the CMF eligible loans as ``direct'' financing 
under the definition of ``Purchase.'' The CMF Recipient must work with 
the third-party originator to identify income eligible borrowers and 
ensure the loans and associated Affordable Housing meet all of the 
requirements of 12 CFR part 1807.

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 category of Applicant 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. Applicants may be members applying under a 
Consortium Approach comprised of eligible Applicants, but

[[Page 3464]]

each Consortium member must separately apply and be individually 
eligible to receive a CMF Award.
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    \1\ (A) Applicants with a 6/30 fiscal year end date, or 9/30 
fiscal year end date, and a completed FY 2022 audit will treat FY 
2022 as their most recent historic fiscal year. (B) Applicants with 
a 6/30 fiscal year end date, or a 9/30 fiscal year end date, but 
without a completed FY 2022 audit will treat FY 2021 as their most 
recent historic fiscal year. (C) Applicants with a 3/31 fiscal year 
end date will treat FY 2022 as their most recent historic fiscal 
year. (D) Applicants with a 12/31 fiscal year end date will treat FY 
2021 as their most recent historic fiscal year.

                                   Table 2--Applicant Eligibility Requirements
----------------------------------------------------------------------------------------------------------------
              Category                                         Eligibility requirements
----------------------------------------------------------------------------------------------------------------
Certified CDFI......................   Has been in existence as a legally formed entity for at least
                                       three (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 in the
                                       Federal Register; and
                                       Has not been notified in writing by the CDFI Fund that its
                                       certification has been terminated since the publication date of this
                                       NOFA.
                                       If a Certified CDFI loses its certification at any point prior to
                                       the Award announcement, the Application will be deemed ineligible and no
                                       longer be considered by the CDFI Fund. Post-Award, if a CMF Recipient
                                       loses its CDFI Certification, its compliance status with respect to the
                                       Assistance Agreement will be reviewed by the Office of Compliance
                                       Monitoring and Evaluation (OCME) in accordance with the terms of the
                                       Assistance Agreement.
                                       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 it has been given an opportunity to cure, the CDFI Fund
                                       will continue to deem this Applicant to be a Certified CDFI until it has
                                       received a final determination letter that its certification has been
                                       terminated. A Certified CDFI is considered eligible for an Award until a
                                       final certification determination has been made, and a final
                                       determination letter has been provided to the Applicant by the CDFI Fund.
                                       Has audited financial statements encompassing its two most recent
                                       historic fiscal years prior to the publication date of this NOFA.\1\ A
                                       Regulated Institution that files call reports to its regulator is exempt
                                       from this requirement and must attach call reports for its two most
                                       recent historic fiscal years in lieu of audited financial statements.
Nonprofit Organization..............   Has been in existence as a legally formed entity for at least
                                       three (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;
                                       Demonstrates by providing an attestation in the Application that
                                       at least 33.3% of its total assets are dedicated to the development or
                                       management of affordable housing; and
                                       Has audited financial statements encompassing its two most recent
                                       historic fiscal years prior to the publication date of this NOFA. A
                                       Regulated Institution that files call reports to its regulator is exempt
                                       from this requirement and must attach call reports for its two most
                                       recent historic fiscal years in lieu of audited financial statements.
Debarment/Do Not Pay Verification...   The CDFI Fund will conduct a debarment check and will not
                                       consider an Application submitted by an Applicant if the Applicant (or
                                       Affiliate of an Applicant) is delinquent on any federal debt.
                                       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 Do Not Pay
                                       Business Center provides delinquency information to the CDFI Fund to
                                       assist with the debarment check.
System for Award Management (SAM)...   Each Applicant must have its own 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 that have an active SAM registration have been
                                       assigned a UEI. Applicants must also have an EIN number in order to
                                       register in SAM.gov.
                                       Applicants must complete registration in SAM.gov 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 December 31, 2023, 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 the required Application documents
 method through Grants.gov and         listed in Table 4.
 Awards Management Information         The CDFI Fund will only accept Applications that use the official
 System (AMIS).                        Application templates provided on the Grants.gov and AMIS websites.
                                       Applications submitted with alternative or altered templates will not be
                                       considered.
                                       Applicants undergo a two-step process that requires the
                                       submission of Application documents by two separate deadlines in two
                                       different locations: (1) the SF-424 in Grants.gov and (2) all other
                                       Required Application Documents in AMIS.
                                       Grants.gov and the SF-424 Mandatory form:
                                       Applicants must submit the Office of Management and Budget (OMB)-
                                       approved Standard Form (SF) 424 Mandatory (Application for Federal
                                       Assistance) form in Grants.gov.
                                       All Applicants must register in the Grants.gov system to
                                       successfully submit an Application. The Grants.gov registration process
                                       can take 30 days or more to complete. The CDFI Fund strongly encourages
                                       Applicants to register as early as possible to meet the deadlines in
                                       Table 1 and Table 6.
                                       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.

[[Page 3465]]

 
                                       Because the SF-424 is part of the Application, if the SF-424 is
                                       not accepted by Grants.gov by the applicable deadline, the Applicant will
                                       not be able to submit the AMIS Application.
                                       The SF-424 must be submitted under the FY 2023 CMF Funding Round
                                       CMF Funding Opportunity Number.
                                       The CDFI Fund will not extend the SF-424 application deadline for
                                       any Applicant that started the Grants.gov registration process on,
                                       before, or after the date of the publication of this NOFA, but did not
                                       complete it by the deadline, except in the case of a federal government
                                       administrative or technological error that directly resulted in
                                       precluding an Applicant from submitting the SF-424 by the required
                                       deadline.
                                       AMIS:
                                       Applicants must submit all other required Application materials
                                       in AMIS.
                                       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.
                                       Applicants are only allowed one Capital Magnet Fund Application
                                       submission per funding round in AMIS.
                                       Members of a Consortium must submit every component of the
                                       Application separately and independently from other members of the
                                       Consortium.
                                       Each Application in AMIS must be signed by an Authorized
                                       Representative. The Authorized Representative is an employee or officer
                                       of the Applicant, authorized to sign legal documents on behalf of the
                                       organization. Consultants working on behalf of the organization may not
                                       be designated as Authorized Representatives.
                                       Only an Authorized Representative or Application Point of Contact
                                       included in the Application may submit the Application in AMIS.
                                       All Required Application Documents must be submitted in AMIS on
                                       or before the deadline specified in Table 1.
                                       The CDFI Fund will not extend the deadline for any Applicant
                                       except in the case of a federal government administrative or
                                       technological error that directly resulted in precluding an Applicant
                                       from submitting the Application in AMIS by the required deadline.
Employer Identification Number (EIN)   Each Applicant must have a unique EIN assigned by the Internal
                                       Revenue Service (IRS).
                                       The CDFI Fund will reject an Application submitted with the EIN
                                       of a parent or Affiliate of the Applicant.
                                       The EIN in the Applicant's AMIS account must match the EIN on the
                                       SF-424 submitted through Grants.gov and the EIN in the Applicant's System
                                       for Award Management (SAM) account. The CDFI Fund reserves the right to
                                       reject an Application if the EIN in the Applicant's AMIS account does not
                                       match the EIN on the SF-424 and/or its SAM account.
                                       The EIN of the Applicant must be entered into the AMIS
                                       organization profile by the applicable deadline in Table 1.
Unique Entity Identifier (UEI)......   The transition from the Dun and Bradstreet Universal Numbering
                                       System (DUNS) to UEI is a federal, government-wide initiative.
                                       The CDFI Fund will reject an Application submitted with the UEI
                                       number of a parent or Affiliate organization of an Applicant.
                                       The UEI number in the Applicant's AMIS account must match the UEI
                                       number in the Applicant's Grants.gov and SAM accounts.
                                       The CDFI Fund will reject an Application if the UEI number in the
                                       Applicant's AMIS account does not match the UEI number in its Grants.gov
                                       and SAM accounts.
                                       Applicants must enter their UEI number into their AMIS profile on
                                       or before the deadline specified in Table 1.
AMIS Account........................   Each Applicant, including each Consortium Member, 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 and Application Point of Contact
                                       must be included as ``users'' 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.
                                       In cases where a federal government administrative or
                                       technological error directly resulted in precluding an Applicant from
                                       creating an AMIS account by the required deadline, the Applicant must
                                       submit a written request for approval to create its AMIS account after
                                       the deadline, and include documentation of the error, no later than two
                                       business days after the AMIS account creation deadline specified in
                                       Tables 1 and 6. The CDFI Fund will not respond to requests for creating
                                       an AMIS account after that time. Applicants must submit such request via
                                       an AMIS Service Request to the CMF Program with a subject line of ``AMIS
                                       Account Creation Deadline Extension Request.''
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 eligible to receive a CMF Award if
 and Equal Opportunity Statutes,       proceedings were instituted against it in, by, or before any court,
 Regulations, and Executive Orders.    governmental agency, or administrative body, and a final determination
                                       was made within the time period beginning three years prior to the
                                       publication of this NOFA through the execution of the Assistance
                                       Agreement, declaring that the Applicant violated any federal civil rights
                                       laws or regulations, including: Title VI of the Civil Rights Act of 1964,
                                       as amended (42 U.S.C. 2000d et seq.); Section 504 of the Rehabilitation
                                       Act of 1973 (29 U.S.C. 794); and the Age Discrimination Act of 1975 (42
                                       U.S.C. 6101-6107).
Depository Institution Holding         If a Depository Institution Holding Company and its Certified
 Company Applicant.                    CDFI Subsidiary Insured Depository Institution both apply for a CMF
                                       Program grant, only the Depository Institution Holding Company will
                                       receive an Award, not both. In such instances, the Subsidiary Insured
                                       Depository Institution will be deemed ineligible.
                                       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.

[[Page 3466]]

 
Regulated Institutions \2\..........   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'' or
                                       state regulator equivalent.
                                       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.
                                       In the case of a Depository Institution Holding Company Applicant
                                       that intends to carry out the Award through a Subsidiary Insured
                                       Depository Institution, the CAMELS/CAMEL rating eligibility requirements
                                       noted above apply to both the Depository Institution Holding Company
                                       Applicant, as well as the Subsidiary Insured Depository Institution.
                                       The CDFI Fund will also evaluate material concerns identified by
                                       the Appropriate Federal Banking Agency or Appropriate State Agency in
                                       determining eligibility of Regulated Institution Applicants.
----------------------------------------------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \2\ Regulated Institutions include Insured Credit Unions, 
Insured Depository Institutions, State-Insured Credit Unions, and 
Depository Institution Holding Companies. 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 will be eligible to apply under this NOFA if 
they meet the eligibility criteria in Table 2, except as noted in Table 
3.

          Table 3--Eligibility Requirements for Applicants Which Are Prior Award/Allocation Recipients
----------------------------------------------------------------------------------------------------------------
              Criteria                                                Description
----------------------------------------------------------------------------------------------------------------
Pending resolution of default or       If an Applicant (or Affiliate of an Applicant) that is a prior
 noncompliance.                        recipient or allocatee under any CDFI Fund program: (i) has demonstrated
                                       it has been in default or 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 default or noncompliance.
Default or Noncompliance status.....   The CDFI Fund will not consider an Application submitted by an
                                       Applicant that is a prior CDFI Fund Recipient or allocatee under any CDFI
                                       Fund program if, as of the AMIS Application deadline of this NOFA, is
                                       noncompliant or found in default with a previously executed award
                                       agreement(s), assistance agreement(s), allocation agreement(s), bond loan
                                       agreement(s) or agreement(s) to guarantee 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.
----------------------------------------------------------------------------------------------------------------

    C. Contacting the CDFI Fund: 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 Compliance Monitoring and Evaluation help desk by AMIS 
Service Requests (select ``Capital Magnet Fund'' for ``Program''), via 
email [email protected], or by telephone at (202) 653-0423. For 
general questions, organizations with an AMIS account are strongly 
encouraged to submit a Service Request in AMIS using ``Capital Magnet 
Fund'' for the Service Request program. Members of the public that do 
not have AMIS accounts can contact Capital Magnet Fund staff via email 
at [email protected]. The CDFI Fund will not respond to Applicants' 
reporting, compliance, or disbursement related telephone calls or email 
inquiries that are received after 5:00 p.m. ET on March 17, 2023 until 
after the Application deadline. The CDFI Fund will respond to technical 
issues related to AMIS Accounts through 5:00 p.m. ET on March 21, 2023, 
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. Consortium Approach: To be eligible under a Consortium Approach, 
individual members of a Consortium must submit individual Applications 
and meet the eligibility criteria defined in Table 2 on a stand-alone 
basis. If awarded, each Recipient will receive a separate Award, and be 
required to meet the terms of its individual Assistance Agreement. The 
CDFI Fund will require Recipients using the Consortium Approach to 
enter into a CMF Recipient Consortium Member Agreement, which will 
specify the binding commitments of each member.
    All Consortium members must invest their individual Awards in the 
same Projects as the other Consortium members. A Consortium does not 
need to be legally formed in advance of submitting an Application; 
however, each Consortium member is asked to submit a Service Request in 
AMIS notifying the CDFI Fund of the organization's intent to apply 
under this NOFA as a Consortium member by the required deadline 
specified in Table 1.
    If one or more members indicate an intent to apply under the 
Consortium Approach, but fail to meet the eligibility criteria in Table 
2, or are otherwise not eligible for an Award, the CDFI Fund reserves 
the right to review the other Applications on a stand-alone basis and 
not as a Consortium.

[[Page 3467]]

    2. Affiliates: As part of the Application review process, the CDFI 
Fund considers whether Applicants are Affiliates, as defined in 12 CFR 
1805.104. 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 be deemed eligible, assuming that Application meets all other 
eligibility criteria in Section III of this NOFA.
    3. Minimum Leverage Multiplier: 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 Grants.gov and the CDFI Fund's website at 
www.cdfifund.gov/cmf. If an Applicant is unable to access Grants.gov or 
the CDFI Fund's website, an Applicant 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. 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 
recent historic fiscal years will be deemed as not having a complete 
Application and will be considered ineligible. A Regulated Institution 
that submits call reports for its two most recent historic fiscal years 
is exempted from this requirement. 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 intending to carry out the activities of 
the Award through its Subsidiary Insured Depository Institution.
---------------------------------------------------------------------------

    \3\ The Management Letter may include suggestions for improving 
identified weaknesses and deficiencies and/or best practice 
suggestions for items that may not be considered to be weaknesses or 
deficiencies. The Management Letter may also include items that are 
not required to be disclosed in the annual audited financial 
statements. The Management Letter is distinct from the auditor's 
Opinion Letter, which is required by Generally Accepted Accounting 
Principles (GAAP). Management Letters are not required by GAAP and 
are sometimes provided by the auditor as a separate letter from the 
audit itself.

                                     Table 4--Funding Application Documents
----------------------------------------------------------------------------------------------------------------
                 Application document                        Submission format                Required?
----------------------------------------------------------------------------------------------------------------
Standard Form (SF) 424 Mandatory Form................  Fillable PDF in Grants.gov..  Required for all
                                                                                      Applicants.
CMF Application......................................  AMIS........................  Required for all
                                                                                      Applicants.
----------------------------------------------------------------------------------------------------------------
                                         Attachments to the Application
----------------------------------------------------------------------------------------------------------------
Audited financial statements for the two most recent   PDF in AMIS.................  Required for all
 historic fiscal years. Regulated Institutions may                                    Applicants.
 submit call reports in lieu of audited financial
 statements.
Any Management Letters, if applicable, related to the  PDF in AMIS.................  Required for all
 audited financial statements for the two most recent                                 Applicants.
 historic fiscal years. The Management Letter is
 prepared by the Applicant's auditor and provides
 communication on internal control over financial
 reporting, compliance, and other matters.\3\ If no
 Management Letter was issued for either of the two
 most recent historic fiscal years, the Applicant
 must attach a document explicitly stating such.
State Charter, Articles of Incorporation, authorizing  PDF in AMIS.................  Required only for
 statute, or other establishing documents designating                                 Applicants that are not
 that the Applicant is a nonprofit or not-for-profit                                  Certified CDFIs.
 entity under the laws of the organization's State of
 formation.
A certification demonstrating tax exempt status from   PDF in AMIS.................  Required only for
 the IRS. Only Applicants that are governmental                                       Applicants that are not
 instrumentalities, and are unable to provide such                                    Certified CDFIs.
 determination from the IRS and meet all other
 eligibility requirements, 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.
Articles of incorporation, by-laws, authorizing        PDF in AMIS.................  Required only for
 statute, or other documents demonstrating that the                                   Applicants that are not
 Applicant has a principal purpose of managing or                                     Certified CDFIs.
 developing affordable housing.
----------------------------------------------------------------------------------------------------------------

    C. Application Submission: The CDFI Fund has a sequential, two-step 
process that requires the submission of Application documents in 
separate systems with two separate deadlines. The SF-424 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

[[Page 3468]]

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.
    D. Unique Entity Identifier (UEI): The UEI has replaced the Dun and 
Bradstreet Data Universal Numbering System (DUNS) number effective 
April 4, 2022. The UEI, generated in the System for Award Management 
(SAM.gov), has become the official identifier for doing business with 
the federal government. This transition allows the federal government 
to streamline the entity identification and validation process, making 
it easier and less burdensome for entities to do business with the 
federal government. If an entity is registered in SAM.gov today, its 
UEI has already been assigned and is viewable in SAM.gov, including 
inactive registrations. New registrants will be assigned a UEI as part 
of their SAM registration.
    E. System for Award Management (SAM): Any entity applying for 
federal 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 UEI number is required 
by SAM and must be mailed to the Federal Service Desk. This requirement 
is applicable to new entities registering in SAM or on existing 
registrations where there is no existing entity administrator. Existing 
entities with registered entity administrators do not need to submit an 
annual notarized letter. 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 the SF-424 in Grants.gov or the Application by the 
applicable 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
             Step                       Agency           minimum time to
                                                            complete
------------------------------------------------------------------------
Obtain an EIN Number..........  Internal Revenue        Two Weeks.*
                                 Service (IRS).
Register in SAM.gov...........  System for Award        Four Weeks.*
                                 Management (SAM).
                                 This step will
                                 include obtaining a
                                 UEI.
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 UEI
  number, and/or fails to properly register in Grants.gov.
** This estimate assumes an Applicant has a UEI number, an EIN number,
  and is already registered in SAM.gov.

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

                           Table 6--FY 2023 CMF Funding Round Deadlines for Applicants
----------------------------------------------------------------------------------------------------------------
             Document                         Deadline             Time--eastern time (ET)    Submission method
----------------------------------------------------------------------------------------------------------------
SF-424 Mandatory form............  February 23, 2023............  11:59 p.m. ET............  Electronically via
                                                                                              Grants.gov.
Create AMIS Account (if the        February 23, 2023............  11:59 p.m. ET............  Electronically via
 Applicant does not already have                                                              AMIS.
 one).
For Consortium Approach            February 23, 2023............  11:59 p.m. ET............  Electronically via
 Applicants only: Applicants are                                                              AMIS.
 asked to submit a Service
 Request in AMIS notifying the
 CMF Program of the
 organization's intent to apply
 as a Consortium Member using the
 Consortium Approach.
CMF Application and Required       March 21, 2023...............  11:59 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 2023 CMF Funding Round Capital Magnet 
Fund Funding Opportunity Number (listed at the beginning of this NOFA). 
All other required Application materials

[[Page 3469]]

must be submitted through the AMIS website. Application materials 
submitted through each system are due by the applicable deadline listed 
in Tables 1 and 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. Applicants must also ensure that their AMIS account 
contains the correct EIN and UEI numbers by the deadline listed in 
Table 1 of this NOFA.
    (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 in the Application and in the 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 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 that 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 digitally 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.
    (c) CMF Consortium Member Service Request: Applicants intending to 
apply using a Consortium Approach are asked to submit a Service Request 
in AMIS by February 9, 2023, to notify the CDFI Fund of their intent to 
apply as part of a Consortium. As part of the Service Request, 
potential Consortium members are asked to provide the names of the 
Consortium member organizations, the UEIs of Consortium members, and 
the amount of funding to be requested by each member. In the event all 
Consortium members do not submit an Application or a member is 
otherwise ineligible for an Award, the CDFI Fund reserves the right to 
review the Applications of the other members on a stand-alone basis and 
not as a Consortium.
    3. Multiple Application Submissions: Each Applicant is only 
permitted to submit one complete Application in AMIS. However, the CDFI 
Fund does not administer 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 using a Consortium Approach must each 
separately submit an SF-424.
    4. Late Submission: The CDFI Fund will not accept an Application if 
a valid SF-424 is not submitted by Grants.gov by the SF-424 deadline. 
Additionally, the CDFI Fund will not accept an Application if it is not 
signed by an Authorized Representative and submitted in AMIS by the 
Application deadline. In either case, the CDFI Fund will not review any 
material submitted and the Application will be deemed ineligible, 
except in the case of a federal government administrative or 
technological error that directly resulted in precluding an Applicant 
from submitting by the deadline. This exception includes any errors 
associated with Grants.gov, SAM.gov, AMIS, or any other applicable 
government system.
    (a) SF-424 Late Submission: In cases where a federal government 
administrative or technological error directly resulted in precluding 
an Applicant from submitting the SF-424 by the deadline, the Applicant 
must submit a Service Request in AMIS 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 CMF Program with a subject 
line of ``CMF Late SF-424 Submission Request.''
    (b) Application Late Submission: In cases where a federal 
government administrative or technological error directly resulted in 
precluding an Applicant from submitting the Application by the 
deadline, the Applicant must submit a Service Request in AMIS 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 CMF Program with a subject line of ``CMF 
Late Application Submission Request.''

[[Page 3470]]

    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.
    (e) With the exception of Depository Institution Holding Company 
Applicants, CMF Awards may not be used to support the activities of, or 
otherwise be passed through, transferred, or co-awarded to, third-party 
entities, whether Affiliates, Subsidiaries, or others, unless done 
pursuant to a merger or acquisition or similar transaction, and with 
the CDFI Fund's prior written consent.

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 part of the review process, the External Review, the Applications 
will be grouped into two categories depending on their Entity Approach: 
(1) financing entities and (2) affordable housing developers/managers. 
All Applicants will be able to select the Entity Approach under which 
they are applying. However, all eligibility requirements described in 
Table 2, as either a Certified CDFI or Nonprofit Organization, must be 
met. In most cases, CDFIs will select the financing Entity Approach; 
however, a CDFI that is applying with a strategy to act as an 
affordable housing developer/manager, and has a track record as an 
affordable housing developer/manager, may select the affordable housing 
developer/manager approach. Separately, those Applicants applying using 
a Consortium Approach will also indicate that they are applying using 
the Consortium Approach. The Applications of the two Entity Approach 
classifications, and those using a Consortium Approach, will be 
evaluated based on the criteria listed in this section. Where 
appropriate, the CDFI Fund will use different criteria in order to 
evaluate the financial health, capacity, portfolio performance, and 
projected activities of the Applicant based on these distinct 
approaches. These differences are noted in the following sections and 
the Application Instructions.
    1. External Review and Quantitative Assessment: All eligible 
Applications will be evaluated through a Quantitative Assessment and 
External Review. The Quantitative Assessment evaluates the 
Application's quantitative factors and is performed automatically in 
AMIS. In the External Review, Applications 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 in community and economic development finance with affordable 
housing experience. 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 to review, 
consisting of either Applicants with a financing Entity Approach, or 
Applicants with an affordable housing developer/manager approach. The 
reviewer will provide a score for each of the 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, in combination with the 
quantitative assessment factors, will result in the Application being 
awarded up to 100 points for each review scorecard. The majority of the 
score will be based on the external reviewer's evaluation. 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). As each Application 
is evaluated by two external reviewers, the maximum score each 
Application can receive is 200 points (100 points x 2 Reviewers).
    (a) Business and Leveraging Strategy (40 points): In the Business 
and Leveraging Strategy section, an 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 relevant track record; (iv) the role CMF will play 
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 reinvestments, and/or at 
the Project-level (as applicable).
    An Applicant will generally score more favorably in the criteria 
evaluated by the External Review and by the quantitative assessment 
factors to the extent that it: (i) clearly aligns its proposed CMF 
Award activities with the affordable housing needs and financing gaps 
it identifies; (ii) demonstrates that its CMF Award activities will 
result in more favorable financing rates and terms for Projects; (iii) 
demonstrates that its projected activities are achievable based on the 
Applicant's strategy and track record; (iv) describes a process for 
selecting projects that have a clear need for CMF financing; (v) has a 
credible pipeline of projects or can demonstrate clear demand for its 
proposed financial products from borrowers; (vi) has a clear strategy 
for and track record of leveraging private capital resulting in a 
higher multiplier of private leverage; (vii) has a clear strategy for 
attracting capital and demonstrates a track record of leveraging funds 
at the Enterprise-level, through reinvestments, and/or at the Project-
level (as applicable); and (viii) whether the Application is proposing 
to serve American Samoa, Guam, the Northern Mariana Islands, or the 
U.S. Virgin Islands.
    (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

[[Page 3471]]

to result in the selected Affordable Housing and/or Economic 
Development Activities impacts and its plan to track relevant outcome 
metrics; (ii) for rental housing, a) its strategy for and track record 
of financing and/or supporting rental housing units located in Areas of 
Economic Distress or High Opportunity Areas; and b) its strategy for 
and track record of financing rental housing units targeted to Very 
Low-Income (VLI) Families (50% of AMI or below); (iii) for 
Homeownership housing, its strategy for and track record of financing 
Homeownership units targeted to Low-Income (LI) Families (80% of AMI or 
below) or units located in Areas of Economic Distress targeted to 
Families with incomes above 80% and no greater than 120% of AMI; (iv) 
if applicable, its strategy for and track record of financing and/or 
supporting Economic Development Activities and how the projected 
activities will align with a Concerted Strategy and will benefit the 
residents of nearby Affordable Housing; and (v) commitment to and track 
record of serving Rural Areas.
    An Applicant will generally score more favorably in the criteria 
evaluated by the external reviewer and by the quantitative assessment 
factors to the extent that it: (i) demonstrates a clear strategy for 
achieving the selected Affordable Housing and/or Economic Development 
Activities impacts identified in the Application and it presents a 
clear and effective plan to track metrics related to relevant outcomes; 
(ii) if rental housing is proposed, demonstrates a compelling strategy 
for and track record of financing and/or supporting rental housing 
units located in Areas of Economic Distress and/or High Opportunity 
Areas; (iii) if rental housing is proposed, demonstrates a compelling 
strategy for and track record of financing and/or supporting rental 
housing units targeted to Very Low-Income (VLI) Families (50% of AMI or 
below), with the maximum score available to Applications that propose 
to target at least 45% of units to Very Low-Income Families; (iv) if 
Homeownership is proposed, demonstrates a compelling strategy for 
financing and/or supporting up to 100% of CMF Award to Homeownership 
units either targeted to Low-Income Families (80% of AMI or below) or 
Homeownership units targeted to Eligible-Income Families (120% of AMI 
or below) located in Areas of Economic Distress, with the Applicant's 
track record supporting their ability to execute this strategy; (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; and (vi) makes a commitment to invest at least 10% of the CMF 
Award in Rural Areas and presents a corresponding track record of 
serving Rural Areas.
    (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 the proposed CMF Award; (iii) its past experience managing 
federal awards; (iv) its financial health; and (v) lending or property 
portfolio (as applicable).
    Applicant(s) will generally score more favorably in the criteria 
evaluated by the external reviewer and by the quantitative assessment 
factors 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), and managing a portfolio of similar activities and 
ensuring compliance with program requirements; (ii) a strong ability to 
successfully manage federal awards based on experience managing prior 
federal awards or administering state or local government awards, 
foundation grants, or other programs with complex compliance 
requirements; (iii) strong financial health, including but not limited 
to strong capitalization, sound operating performance, and strong 
liquidity; (iv) favorable audit results (e.g. opinion other than 
unqualified/unmodified) with no negative findings, including lack of a 
``going concern paragraph'', lack of repeat findings of reportable 
conditions, lack of material weaknesses in internal controls, lack of 
delinquencies on obligations to investors or lenders, and not having 
filed for bankruptcy or defaulted on financial obligations; and (v) 
solid portfolio performance (property portfolio or loan/investment 
portfolio, as applicable). CMF Program encourages first-time 
Applicants. Prior CMF Recipients will not receive a scoring advantage 
solely for having received a prior CMF Award.
    (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.
    2. Internal Review: At the conclusion of the External Review phase, 
the CMF Program Manager will determine the overall number of 
Applications that will be initially forwarded for Internal Review. Each 
group of Applications (financing Entity Approach and affordable housing 
developer/manager approach) will be ranked separately based on their 
External Review score. 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 forwarded Applications 
reflect, within no more than 5% variance, the proportion of financing 
Entity Approach Applications to affordable housing developer/manager 
approach Applications in the overall Application Pool. 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 Approach and affordable housing developer/manager 
approach groups in proportion to each group's representation in the 
overall Application pool. This approach will ensure that the percentage 
of Applicants with a financing Entity Approach and affordable housing 
developer/manager approach forwarded to Internal Review reflects the 
proportion of these entity strategies within the overall Application 
pool, with no more than 5% variance.
    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 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 Applicants with a financing Entity Approach and 
Applicants with an affordable housing developer/manager approach in the 
final Award pool.
    In assessing the Applicant's organizational capacity, CDFI Fund 
staff will consider the following factors including, but not limited 
to, the Applicant's overall organizational and financial capacity, 
including: (i) its financial strength and ability, and its resources to 
adapt to changing market conditions and risks; (ii) its organizational 
strength as demonstrated by good management practices, risk management, 
and internal controls; (iii) key personnel with relevant experience and 
capacity; and (iv) relevant

[[Page 3472]]

experience and capacity demonstrating ability to meet federal award 
management standards (including performance with prior CDFI Fund 
awards). 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 assessing the Application's alignment with CMF statutory and 
policy priorities, CDFI Fund staff will consider the following factors 
including, but not limited to: (i) the likelihood of the Applicant to 
reach a minimum overall leverage multiplier of 10 times the Award 
amount or more; (ii) the amount of private capital it will leverage 
relative to the CMF Award; (iii) if rental housing is proposed, the 
Applicant's approach, track record, and ability to finance/support a 
significant portion (up to 45%) of its rental housing for Very Low-
Income Families; (iv) if rental housing is proposed, the Applicant's 
approach, track record, and ability to finance/support a significant 
portion of rental housing located in Areas of Economic Distress (AED) 
and/or High Opportunity Areas (HOA) as a percentage of its CMF rental 
portfolio; (v) if Homeownership is proposed, the Applicant's approach, 
track record, and ability to successfully finance/support up to 100% of 
its Homeownership units for (a) Families with incomes in excess of 80% 
but not greater than 120% of Area Median Income (AMI) located in an 
Area of Economic Distress (AED); or (b) Low-Income Families (80% AMI or 
below); or (c) a combination of (a) and (b); and (vi) the number of 
Affordable Housing units expected to be generated as a result of the 
Award.
    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 effectiveness and cohesiveness of the Applicant's strategy; 
(ii) how well the proposed financing activities will help close the 
financing gaps in their market, including more favorable rates and 
terms than are currently available in its Service Area; (iii) the 
Applicant's ability to execute its strategy and support its 
projections; (iv) how adaptable the Applicant's strategy is to changing 
market conditions; (v) the alignment between the proposed activities 
and strategy and the selected impacts and outcomes; and (vi) for 
Applicants proposing Economic Development Activities (EDA), the extent 
the activities are part of a Concerted Strategy, whether activities 
will benefit Affordable Housing residents, and the track record and 
capacity of the Applicant to carry out EDA.
    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 2022 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.
    3. Scoring of Applicants Using a Consortium Approach:
    Applicants using a Consortium Approach will be evaluated and scored 
in the following manner:
    (a) Applicants will be evaluated as a Consortium and receive the 
same score on: (i) strategy; (ii) the needs and financing gaps 
addressed; (iii) track record; (iv) pipeline; (v) impact and metrics; 
(vi) geographic targets (Areas of Economic Distress and/or High 
Opportunity Areas); (vii) income targeting; (viii) key personnel; (ix) 
adaptability and community partnerships; (x) alignment with priorities; 
(xi) Project selection process; (xii) serving underserved areas; (xiii) 
resources to adapt to changing market conditions and risks; and (xiv) 
deployment capacity.
    (b) Applicants will be evaluated on a prorated basis and receive an 
individual score on: (i) Eligible Project Costs; (ii) unit production; 
and (iii) Leveraged Costs.
    (c) Applicants will be evaluated individually and receive an 
individual score on: (i) previous federal award management; (ii) 
financial health; (iii) audit findings; (iv) portfolio performance; (v) 
the likelihood of reaching the minimum leverage multiplier; (vi) 
organizational strength; (vii) management practices; (viii) the ability 
to execute the strategy and projected activities; and (ix) commitment 
to serving Rural Areas. In the event that an Applicant(s) applying 
using a Consortium Approach does not sufficiently score to reach the 
highly qualified pool, the CDFI Fund will evaluate the remaining 
members of the Consortium using the Consortium Approach, provided there 
are at least two members remaining in the highly qualified pool. If 
there is only one member of the Consortium remaining in the highly 
qualified pool, the Applicant will be evaluated on an individual basis.
    4. Selection: Once Applications have been internally evaluated and 
preliminary Award determinations have been made, the Applications will 
be forwarded to the selecting official(s) for a final Award 
determination. After preliminary Award determinations are made, the 
selecting official(s) 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 2023 CMF Funding 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.
    As Rural Areas data for the Enterprise Duty to Serve Rule is not 
available for American Samoa, Guam, the Northern Mariana Islands, and 
the U.S. Virgin Islands; all census tracts in these territories will be 
deemed as Rural census tracts for Awards issued under this NOFA. The 
CDFI Fund will publish a dataset indicating which census tracts are 
designated as Rural Areas for the FY 2023 CMF Funding 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

[[Page 3473]]

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. Applicants planning to serve communities below the state 
level (cities, municipalities, counties, or regions) and within one 
state should designate their Service Area as Statewide. Similarly, an 
Applicant that is planning to serve communities below the state level, 
but in more than one state, should designate their Service Area as 
Multi-State. The smallest Service Area an Applicant can request is one 
state or U.S. territory; 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. During the 
selection process, the CDFI Fund also reserves the right to modify or 
place restrictions on the Service Area requested in any Application in 
order to further these statutory objectives. In the case of Applicants 
using a Consortium Approach, the Service Area designated by each 
Consortium member in its Application will be combined with the Service 
Area of the other members as part of the review process. This ensures 
all members are serving the same areas and that all members are able to 
invest in all CMF financed/supported projects of the Consortium.
    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 on information obtained during 
the review process.
    4. 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 warrant that the Applicant is 
incapable of undertaking the activities for which funding has been 
requested.
    5. 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.
    6. Anticipated Award Announcement: The CDFI Fund anticipates making 
CMF Award announcements in calendar year 2023.

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 indications of fraud 
or mismanagement on the Recipient's part, including mismanagement of 
another federal award.
    If the Recipient's CDFI certification status changes prior to 
entering into an Assistance Agreement, the CDFI Fund reserves the 
right, in its sole discretion, to re-evaluate 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, 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 7:

[[Page 3474]]



                        Table 7--Requirements Prior to Executing an Assistance Agreement
----------------------------------------------------------------------------------------------------------------
             Requirement                                               Criteria
----------------------------------------------------------------------------------------------------------------
Failure to meet reporting              If an Applicant received a prior award or allocation under any
 requirements.                         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 Certified CDFI or an eligible Nonprofit
 Certification (if applicable) or      Organization, as each is defined in the CMF Interim Rule and this NOFA,
 eligible Nonprofit Organization       prior to entering into an Assistance Agreement.
 status (if applicable).               If, at any time prior to entering into an Assistance Agreement
                                       under this NOFA, an Applicant that is a Certified CDFI has submitted
                                       reports that demonstrate noncompliance with the requirements for
                                       certification to the CDFI Fund, failed to submit an annual certification
                                       report as instructed by the CDFI Fund, or demonstrates noncompliance with
                                       the requirements for certification through other information obtained by
                                       the CDFI Fund, 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 default or       The CDFI Fund will delay entering into an Assistance Agreement
 noncompliance.                        with a Recipient that has pending default or 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 award agreement(s), assistance agreement(s), allocation
                                       agreement(s), bond loan agreement(s), or agreement(s) to guarantee) 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 default or noncompliance by
                                       taking actions the CDFI Fund has specified in writing within such
                                       specified timeframe. If the Recipient is unable to cure the default or
                                       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 rights   If, within the period starting three years prior to this NOFA and
 requirements.                         through the date of the Assistance Agreement, the Recipient received a
                                       final determination, in any proceeding instituted against the Recipient
                                       in, by, or before any court, governmental, or administrative body or
                                       agency, declaring that the Recipient violated any federal civil rights
                                       laws or regulations, including: Title VI of the Civil Rights Act of 1964,
                                       as amended (42 U.S.C. 2000d et seq.); Section 504 of the Rehabilitation
                                       Act of 1973 (29 U.S.C. 794); and the Age Discrimination Act of 1975 (42
                                       U.S.C. 6101-6107), the CDFI Fund may terminate and rescind the Assistance
                                       Agreement and the Award made under this NOFA.
Debarment/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 Do Not Pay
                                       Business Center provides delinquency information to the CDFI Fund to
                                       assist with the debarment check.
                                       The CDFI Fund reserves the right, in its sole discretion, to
                                       rescind an Award if the Recipient (or Affiliate of Recipient) is
                                       identified as being delinquent on any federal debt in the Do Not Pay
                                       database.
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. 
Applicants selected for a CMF Award will be allowed to use up to 15% of 
the Award amount outside of their approved Service Area at their 
discretion. Moreover, they will be able to reinvest Program Income from 
the

[[Page 3475]]

CMF Award anywhere in the United States, including the U.S. 
territories.
    (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 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. Recipients may utilize up to 15% of their Award to undertake 
Activities outside of their Service Area at their discretion.
    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 to be heard. 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 or in lieu of a 
certificate of good standing, 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 required 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) If applicable, the Recipient is exempt from federal income 
taxation pursuant to the Internal Revenue Code of 1986; and
    (g) If applicable, the Recipient is designated as a nonprofit or 
not for profit entity under the laws of the organization's State of 
formation.
    As a condition of closing on the Assistance Agreement, the CDFI 
Fund will require a CMF Recipient Consortium Member Agreement to 
specify the binding commitments of each member awarded under a 
Consortium Approach.
    6. Closing and Payment of the Award: Pursuant to the Assistance 
Agreement, there will be an initial closing at which point the 
Assistance Agreement and related documents will be properly executed 
and delivered, and a Payment of the CMF Award is made. Recipients of 
CMF Awards will have the option to choose Payment of the Award in a 
Lump Sum Payment or, in two payments, an Initial Payment and Subsequent 
Payment, each no more than one year apart, as set forth in the 
Assistance Agreement. If the Applicant elects to receive the Award in 
two Payments, they must specify an Initial Payment amount in the 
Application. The CDFI Fund reserves the right to adjust the Initial 
Payment amount based on the total Award amount so that no payment is 
less than $500,000. For example, if awarded $950,000 and the Initial 
Payment amount requested in the Application was $500,000, per the rule 
above, the CDFI Fund would disburse a single $950,000 Lump Sum Payment 
to the Recipient, pursuant to the Assistance Agreement.
    The Payment option election will affect the required date of 
Commitment of the Award, but will not affect or change any other 
performance goal(s) or requirement(s) set forth in the Assistance 
Agreement, including the requirement that all Projects must achieve 
Project Completion within five years of the Effective Date of the 
Assistance Agreement. The Lump Sum Payment \4\ or Initial Payment \5\ 
must be committed for use two years after the Effective Date of the 
Assistance Agreement. The Subsequent Payment \6\ must be committed 
three years after the Effective Date of the Assistance Agreement.
---------------------------------------------------------------------------

    \4\ ``Lump Sum Payment'' shall mean one single payment which 
comprises the entire CMF Award.
    \5\ ``Initial Payment'' shall mean the first Payment from the 
CDFI Fund to the Recipient at Closing.
    \6\ ``Subsequent Payment'' shall mean a second Payment 
representing the balance of the CMF Award in the case where a 
Recipient exercises its option to receive the CMF Award in two 
Payments.
---------------------------------------------------------------------------

    Following the initial closing of the Assistance Agreement, for 
those Recipients who opted for and qualify for two Payments, there will 
be a subsequent closing involving the additional Award payment. In 
addition to the Assistance Agreement, any documentation that is related 
to the subsequent closing and payment shall

[[Page 3476]]

be properly executed and delivered in a timely manner by the Recipient 
to the CDFI Fund.
    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 UAR 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 Award 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 8:

                                        Table 8--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 200.501) 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 200.501. 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 no 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.
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 the 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 Award. 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 second 
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

[[Page 3477]]

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 9:

                                          Table 9--Contact Information
----------------------------------------------------------------------------------------------------------------
                                                                    Telephone number
           Type of question                  Preferred method        (not toll free)        Email addresses
----------------------------------------------------------------------------------------------------------------
CMF Program and Application Questions.  Submit a Service Request         202-653-0421  [email protected].
                                         in AMIS.
CDFI Certification....................  Submit a Service Request         202-653-0423  [email protected].
                                         in AMIS.
Compliance Monitoring and Evaluation..  Submit a Service Request         202-653-0423  [email protected].
                                         in AMIS.
Information Technology Support........  Submit a Service Request         202-653-0422  [email protected].
                                         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 Equal Employment Opportunity enforces 
various federal statutes and regulations that prohibit discrimination 
in financially assisted and conducted programs and activities 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: Director, Office of Civil Rights 
and Equal Employment Opportunity, 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, 
and public policy requirements, including, but not limited to: those 
protecting free speech, religious liberty, public welfare, and the 
environment; and those prohibiting discrimination.

VIII. Other Information

    The CMF regulations are set forth in 12 CFR part 1807. 12 CFR 
1807.105 provides the CDFI Fund the ability to waive any part of the 
regulations for good cause: ``The CDFI Fund may waive any requirement 
of this part that is not required by law upon a determination of good 
cause. Each such waiver shall be in writing and supported by a 
statement of the facts and the grounds forming the basis of the waiver. 
For a waiver in an individual case, the CDFI Fund must determine that 
application of the requirement to be waived would adversely affect the 
achievement of the purposes of the Act. For waivers of general 
applicability, the CDFI Fund will publish notification of granted 
waivers in the Federal Register.'' Pursuant to this requirement, the 
CDFI Fund is publishing notification in this NOFA that it hereby waives 
the requirements set forth in 12 CFR 1807.401(f) for all CMF Recipients 
who used their CMF Awards to finance or support rental housing Projects 
with an Affordability Period covering the dates of April 1, 2020 
through December 31, 2021. Thus, if a CMF Recipient's Affordability 
Period covers the timeframe of April 1, 2020 through December 31, 2021, 
the requirement to verify the tenant's income annually in such 
timeframe is hereby waived.
    A. Statement of Facts: The CMF Interim Rule requires CMF Recipients 
to annually re-examine tenant income. 12 CFR 1807.401(f) requires that 
each year during the period of affordability, the tenant's income must 
be re-examined. The tenant income examination and verification is 
ultimately the responsibility of the CMF Recipient. Annual income 
includes income from all household members. CMF Recipients must require 
the Project owner to obtain information on rents and occupancy of 
Affordable Housing financed or assisted with a CMF Award in order to 
demonstrate compliance with 12 CFR 1807.401(f). On March 13, 2020, the 
President of the United States issued an emergency declaration under 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 
U.S.C. 5121 et seq., in response to the ongoing COVID-19 pandemic. On 
February 18, 2022, in accordance with section 202(d) of the National 
Emergencies Act (50 U.S.C. 1622(d)), the President continued the 
national emergency declared in Proclamation 994 concerning COVID-19 
pandemic to be in effect beyond March 1, 2022. On January 31, 2020, 
Secretary of Health and Human Services issued a determination that as a 
result of the confirmed cases of 2019 Novel Coronavirus, a public 
health emergency exits and has existed since January 27, 2020, 
nationwide (``HHS Determination''). On October 13, 2022, the HHS 
Determination was renewed to state that a public health emergency 
exists and has existed since January 27, 2020, nationwide, due to the 
continued consequences of COVID-19. In response, several federal 
agencies issued notices announcing certain statutory suspensions and 
regulatory waivers to alleviate the burden on program participants and 
stakeholders affected by the COVID-19 pandemic.
    B. Grounds for Waiver: The CDFI Fund determined that Recipients 
experienced difficulty in carrying out annual tenant income 
recertification during the COVID-19 pandemic. Further, other federal 
agencies provided temporary relief from federal program criteria 
similar to those required by CMF Recipients. To illustrate, the 
Internal Revenue Service issued Notice 2021-12 granting relief for 
owners of low-income buildings from the requirement to perform income 
re-certifications under 26 CFR 1.42-

[[Page 3478]]

5(c)(1)(iii) from April 1, 2020, to September 30, 2021. Similarly, the 
U.S. Department of Housing and Urban Development issued a memorandum on 
September 27, 2021, updating its memorandum, Revision, Extension and 
Update of April 2020 Memorandum Availability of Waivers and Suspensions 
of the HOME Program Requirements in Response to COVID-19 Pandemic 
issued on December 4, 2020, extending the waiver to perform onsite 
inspections of HOME-assisted rental housing and annual re-inspections 
of units assisted with HOME Tenant-Based Renal Assistance from 
September 30, 2021, to December 31, 2021. The CDFI Fund has determined 
that to provide relief to CMF Recipients during the height of the 
COVID-19 pandemic, and to align CMF regulatory requirements with other 
federal programs, temporary relief related to annual tenant income 
determination for this period is warranted.
    For the above stated reasons, the CDFI Fund is issuing a general 
waiver herein of 12 CFR 1807.401(f) in cases where the CMF Award 
Recipient did not undertake or complete annual tenant income 
examination and verification during the period of affordability for the 
applicable dates in response to the COVID-19 pandemic. This is to 
provide maximum administrative flexibility and better assist low-and 
very low-income households as they deal with the effects of the COVID-
19 pandemic.
    This waiver extends relief for the period beginning April 1, 2020, 
and ending December 31, 2021. As of January 1, 2022, the CMF Award 
Recipient shall have recommenced tenant income re-certification on an 
annual basis in compliance with 12 CFR 1807.401(f).
    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. 2023-00932 Filed 1-18-23; 8:45 am]
BILLING CODE 4810-05-P