[Federal Register Volume 77, Number 249 (Friday, December 28, 2012)]
[Notices]
[Pages 76606-76614]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31164]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Funding Opportunity Title: Notice of Funds Availability (NOFA)
inviting Applications for the Community Development Financial
Institutions the Native American CDFI Assistance (NACA) Program FY 2013
funding round (the FY 2013 Funding Round).
Announcement Type: Announcement of funding opportunity.
Catalog of Federal Domestic Assistance (CFDA) Number: 21.020.
Dates: Applications for Financial Assistance (FA) awards or
Technical Assistance (TA) grants through the FY 2013 Funding Round of
the NACA Program must be received by 11:59 p.m., Eastern Time (ET),
February 28, 2013.
Executive Summary: Subject to funding availability, this NOFA is
issued in connection with the FY 2013 Funding Round of the NACA
Program, administered by the Community Development Financial
Institutions (CDFI) Fund.
I. Funding Opportunity Description
A. Award Requirements: Through the NACA program, the CDFI Fund
provides FA awards and TA grants. FA awards are made to Certified
Native CDFIs and certifiable Native CDFIs that complete and submit a
NACA Application (Application) and meet the FA requirements set forth
in this NOFA, subject to funding availability. The CDFI Fund requires
that in order for an Applicant to be eligible for an award under this
NOFA, they must be a newly Certified CDFI (certified within the last
three calendar years) or recertified in FY 2013. (For further
information, please see Section III.A.2 of this NOFA.)
TA grants are made to Certified Native CDFIs, Certifiable Native
CDFIs, emerging Native CDFIs, and Sponsoring Entities that complete and
submit the Application and meet the eligibility requirements set forth
in this NOFA.
B. Program Regulations: The regulations governing the NACA program
are found at 12 CFR Parts 1805 and 1815 (the Regulations) and provide
guidance on evaluation criteria and other requirements. Details
regarding the Application content requirements are found in the
Application and related materials. Each capitalized term in this NOFA
is more fully defined in this NOFA, the Regulations, or the
Application. The CDFI Fund encourages Applicants to review the
Regulations in addition to this NOFA.
C. Funding Discretion: 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. The CDFI Fund reserves the right to reallocate
funds from the amount that is anticipated to be available through this
NOFA to other CDFI Fund programs, particularly if the CDFI Fund
determines that the number of awards made through this NOFA is fewer
than projected.
D. Coordination with Broader Community Development Strategies:
Consistent with Federal efforts to promote community revitalization, it
is important for communities to develop a comprehensive neighborhood
revitalization strategy that addresses neighborhood assets essential to
transforming distressed neighborhoods into healthy and vibrant
communities. Neighborhood transformation can best occur when
comprehensive neighborhood revitalization plans embrace the coordinated
use of programs and resources that address the interrelated needs
within a community. Although not a requirement for participating in the
CDFI Program, the Federal government believes that a CDFI will be most
successful when it is part of, and contributes to, an area's broader
neighborhood revitalization strategy.
II. Award Information
A. Funding Availability
1. FY 2013 Funding Round: Subject to funding availability, the CDFI
Fund expects to award, through this NOFA, approximately $12 million in
NACA awards for FA and TA Applicants. Furthermore, in FY 2012, Congress
mandated that at least ten percent of the CDFI Program's appropriations
be directed to counties that meet certain criteria for ``persistent
poverty.'' This requirement continues under the current Continuing
Resolution for FY 2013 appropriations. As a result, the CDFI Fund
invites Applicants to indicate their level of participation in counties
of persistent poverty in their FY 2013 applications. The CDFI Fund
reserves the right to award more or less than the amounts cited above
in the FY 2013 Funding Round, based upon available funding and other
applicable factors.
2. Availability of Funds for the FY 2013 Funding Round: Funds for
the FY 2013 Funding Round have not yet been appropriated. If funds are
not appropriated for the NACA program, there will not be a NACA FY 2013
Funding Round. If funds are appropriated, the amount of such funds may
be greater or less than the amounts set forth above. If funds for the
FY 2013 Funding Round for the NACA Program are not appropriated,
entities eligible to apply under this NOFA are encouraged to apply for
CDFI Program funds through the Community Development Financial
Institutions (CDFI) Program NOFA, assuming they are eligible per the
applicable NOFA.
All awards made under this NOFA must be used to support the
Applicant's activities. Awards cannot 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; with
the exception for Sponsoring Entities who can use the funds to create
and support a separate legal entity that will become a Certified Native
CDFI. The entity that is to carry out the responsibilities of the award
and deploy the award funds (the Awardee) must be the entity that
applies for the award. In cases where CDFI bank holding company
Applicants intend to deploy their FA awards through their 100 percent
wholly-owned CDFI subsidiary bank, applications must be made at the
[[Page 76607]]
CDFI bank holding company level and reflect consolidated activities and
financial performance. Authorized representatives of both the holding
company and the bank will be required to certify that the information
included in the Application represents that of the CDFI bank and that
the award funds will be used to capitalize the CDFI bank for the
activities outlined in the Application.
B. Types of Awards
An Applicant may submit an Application either for a FA award or a
TA-award.
1. FA Awards
FA awards provide flexible financial support to CDFIs so they may
achieve the strategies outlined in their Applications. FA awards can be
used in the following five categories: (i) Financial Products; (ii)
Financial Services; (iii) Development Services; (iv) Loan Loss
Reserves; and/or (v) Capital Reserves. For purposes of this NOFA, the
five categories mean:
Table 1--Five Categories of FA
------------------------------------------------------------------------
------------------------------------------------------------------------
(i) Financial Products............ Loans, grants, equity investments,
and similar financing activities,
including the purchase of loans
that the Applicant originates and
the provision of loan guarantees,
in the Applicant's Target Market,
or for related purposes that the
CDFI Fund deems appropriate
(including administrative funds
used to carry out Financial
Products).
(ii) Financial Services........... Checking and savings accounts,
certified checks, automated teller
machines services, deposit taking,
remittances, safe deposit box
services, and other similar
services (including administrative
funds used to carry out Financial
Services).
(iii) Development Services........ Activities that promote community
development and help the Applicant
provide its Financial Products and
Financial Services, including
financial or credit counseling,
housing and homeownership
counseling (pre- and post-), self-
employment technical assistance,
entrepreneurship training, and
financial management skill-building
(including administrative funds
used to carry out Development
Services).
(iv) Loan Loss Reserves........... Funds set aside in the form of cash
reserves, or through accounting-
based accrual reserves, to cover
losses on loans, accounts, and
notes receivable made in the Target
Market, or for related purposes
that the CDFI Fund deems
appropriate (including
administrative funds used to carry
out Loan Loss Reserves).
(v) Capital Reserves.............. Funds set aside as reserves to
support the Applicant's ability to
leverage other capital, for such
purposes as increasing its net
assets or serving the financing
needs of its Target Market, or for
related purposes that the CDFI Fund
deems appropriate (including
administrative funds used to carry
out Capital Reserves).
------------------------------------------------------------------------
The CDFI Fund may provide FA awards in the form of equity
investments (including secondary capital in the case of certain Insured
Credit Unions), grants, loans, deposits, credit union shares, or any
combination thereof. The CDFI Fund reserves the right, in its sole
discretion, to provide a FA award in a form and 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.
2. TA Grants
(a) The CDFI Fund provides NACA TA as a grant and reserves the
right, in its sole discretion, to provide a grant amounts other than
that which the Applicant requests; however, the grant amount will not
exceed the Applicant's request as stated in its Application and the
applicable budget chart.
(b) For purposes of this NOFA, TA eligible uses are: (i) Personnel/
salary; (ii) personnel/fringe; (iii) professional services; (iv)
travel; (v) training; and (vi) equipment. (Please see the Application
for details on TA uses.) TA grants must be used to support the
Applicant's capacity building activities.
C. Assistance Agreement
Each Awardee under this NOFA must sign an Assistance Agreement
before the CDFI Fund will disburse award funds. The Assistance
Agreement contains the Award's terms and conditions. For further
information, see Section VI.A of this NOFA.
III. Eligibility Information
A. Eligible Applicants
The Regulations specify the eligibility requirements each Applicant
must meet in order to be eligible to apply for assistance under this
NOFA. A NACA Applicant may apply as either a FA applicant or a TA
applicant, but not both. If an Applicant applies for both types of
awards, it is in the sole discretion of the CDFI Fund to disqualify the
Applicant from competing for either a FA award or a TA grant; or decide
to give the Applicant either a FA award or a TA grant.
1. FA and TA Applicant Categories
FA Applicants must meet the criteria listed in Table 2.
Table 2--NACA Applicant Criteria
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Applicant type Criteria of applicant Maximum award
------------------------------------------------------------------------
FA....................... A Certified/Certifiable Up to and including
Native CDFI that meets $750,000 in FA
all other eligibility funds.
requirements described
in this NOFA.
TA....................... A Certified Native CDFI, Up to $150,000 for
a Certifiable Native capacity-building
CDFI, an Emerging activities.
Native CDFI, or a
Sponsoring Entity.
------------------------------------------------------------------------
2. CDFI Certification Requirements
In FY 2013, the CDFI Fund requires that in order for an Applicant
to be eligible for an award under this NOFA, they must be a newly
Certified CDFI (certified within the last three calendar years) or
recertified in FY 2013. Early in Calendar Year 2013, the CDFI Fund will
announce a new process for submitting
[[Page 76608]]
applications for CDFI certification, including the date by which any
Certifiable CDFI or Certified CDFI must submit its application for
certification/recertification in order for a determination on that
application to be made concurrent with the announcement of awards under
this NOFA. Until such time that a determination on a recertification
application from a current Certified CDFI is made, the Certified CDFI's
existing certification remains in effect, unless the Certified CDFI has
taken actions demonstrating that it has failed to preserve and keep in
full force and effect its certification as a CDFI.
Table 3--Native CDFI Certification Requirements and Definitions
------------------------------------------------------------------------
Requirement/definition Description
------------------------------------------------------------------------
(a) Certified Native CDFI......... An entity that the CDFI Fund has
officially notified that it meets
all CDFI certification requirements
as of the date of this NOFA. An
entity that the CDFI Fund has
officially notified that it meets
all CDFI certification requirements
as of the date of this NOFA and
continues to meet certification
requirements throughout the NOFA
application process, leading to the
announcement of awards under this
NOFA.
(b) Certifiable Native CDFI....... An entity that has submitted a CDFI
Certification application to the
CDFI Fund demonstrating that it
meets the CDFI certification
requirements but for which the CDFI
Fund has not yet officially
certified the entity. If the CDFI
Fund is unable to certify an
Applicant and the Applicant is
selected for a FA award, the CDFI
Fund may, in its sole discretion,
terminate the award commitment. The
CDFI Fund will not enter into an
Assistance Agreement or disburse FA
award funds unless and until an
Applicant is certified. A
Certifiable CDFI Applicant must
have submitted a CDFI Certification
application as of the date
indicated in Section IV.F of this
NOFA to be eligible for FA in the
FY 2013 round.
Cc) Emerging Native CDFI.......... An entity that demonstrates to the
CDFI Fund it has an acceptable plan
to meet certification requirements
by December 31, 2014, or another
date selected by the CDFI Fund.
Emerging CDFIs may only apply for
TA grants; they are not eligible to
apply for FA awards. Each Emerging
CDFI selected to receive a TA grant
will be required, pursuant to its
Assistance Agreement with the CDFI
Fund, to become certified as a CDFI
by a specified date.
(d) Sponsoring Entities........... An entity that proposes to create a
separate legal entity that will
become a Certified Native CDFI.
Sponsoring Entities include: (a) a
Tribe, Tribal entity, Alaska Native
Village, Village Corporation,
Regional Corporation, Non-Profit
Regional Corporation/Association,
or Inter-Tribal or Inter-Village
organization; or (b) an
organization whose primary mission
is to serve a Native Community
including, but not limited to, an
Urban Indian Center, Tribally
Controlled Community College,
community development corporation
(CDC), training or education
organization, or Chamber of
Commerce, and that primarily serves
a Native Community (meaning, at
least 50 percent of its activities
are directed toward the Native
Community). Sponsoring Entities may
only apply for TA grants; they are
not eligible to apply for FA
awards. Sponsoring entities that
are selected to receive a TA grant
will be required, pursuant to their
Assistance Agreements with the CDFI
Fund, to create a legal entity by a
certain date that will, in turn,
seek Native CDFI certification and
to transfer remaining award funds
to that Native CDFI upon
certification.
(e) Other Targeted Populations as An Other Targeted Population is
Target Markets. defined as an identifiable group of
individuals in the Applicant's
Service Area for which there exists
strong evidence that they lack
access to loans, equity
investments, and or/Financial
Services. The CDFI Fund has
determined there is strong evidence
that the following groups of
individuals lack access to such
products and services on a national
level or within their recognized
ancestral areas: (i) Native
Americans or American Indians,
including Alaska Natives living in
Alaska; (ii) Blacks or African
Americans; (iii) Hispanics or
Latinos; (iv) Native Hawaiians
living in Hawaii; and (v) other
Pacific Islanders living in other
Pacific Islands.
To define these populations for the
purposes of this NOFA, the CDFI
Fund uses the following
definitions, set forth in the
Office of Management and Budget
(OMB) Notice, Revisions to the
Standards for the Classification of
Federal Data on Race and Ethnicity
(October 30, 1997), as amended and
supplemented:
(a) American Indian, Native
American, or Alaska Native: a
person having origins in any of the
original peoples of North and South
America (including Central America)
and who maintains tribal
affiliation or community
attachment;
(b) Black or African American: a
person having origins in any of the
black racial groups of Africa
(terms such as Haitian or Negro can
be used in addition to Black or
African American);
(c) Hispanic or Latino: a person of
Cuban, Mexican, Puerto Rican, South
or Central American, or other
Spanish culture or origin,
regardless of race (the term
Spanish origin can be used in
addition to Hispanic or Latino);
(d) Native Hawaiian (living in
Hawaii): a person having origins in
any of the original peoples of
Hawaii; and
(e) Other Pacific Islander (living
in other Pacific Islands): a person
having origins in any of the
original peoples of Guam, Samoa or
other Pacific Islands.
------------------------------------------------------------------------
3. Limitation on Awards
An Applicant may receive only one award through this FY 2013 NOFA,
and only one award through the FY 2013 CDFI Program Funding Round or
the FY 2013 NACA Program Funding Round. Although eligible Applicants
can apply for the CDFI Program and the NACA Program, they will receive
only one FY 2013 award.
B. Prior Awardees
For purposes of this section, the CDFI Fund will consider an
Affiliate to be any entity that meets the definition of Affiliate in
the Regulations or any entity otherwise identified as an Affiliate by
the Applicant in its Application and/or its myCDFIFund account.
Prior awardees should note the following:
1. $5 Million Funding Cap
The CDFI Fund is currently prohibited from obligating more than $5
million in CDFI Program and NACA Program awards, in the aggregate, to
any one organization and its Subsidiaries and Affiliates during any
three-year period. In general, the three-year period calculated for the
cap extends back three years from the Effective Date of the Assistance
Agreement between the
[[Page 76609]]
Awardee and the CDFI Fund. However, for purposes of this NOFA, because
the funding cap was waived for FY 2009, FY 2010, and FY 2011, the CDFI
Fund will include awards in the cap calculation that were provided to
an Applicant (or its Subsidiaries or Affiliates) beginning with the FY
2012 Funding Round. The CDFI Fund will assess the $5 million funding
cap applicability during the award selection phase.
Please see the following table for other prior Awardee requirements
and considerations:
Table 4--Prior Awardee Requirements and Considerations
------------------------------------------------------------------------
Prior awardee situation Requirements and considerations
------------------------------------------------------------------------
Failure to Meet Reporting The CDFI Fund will not consider an
Requirements. Application if the Applicant or its
Affiliate is a prior Awardee/
Allocatee under any CDFI Fund
program and is not current on the
reporting requirements set forth in
a previously executed assistance,
allocation, or award agreement(s),
as of this NOFA's Application
deadline. Please note that the CDFI
Fund's automated systems for
receipt of reports submitted
electronically typically
acknowledge only a report's
receipt. Such an acknowledgment
does not verify nor otherwise
represent that the report received
was complete and therefore met
reporting requirements.
Pending Resolution of If an Applicant is a prior Awardee/
Noncompliance. Allocatee under any CDFI Fund
program and: (i) The entity has
submitted reports demonstrating
noncompliance with a previously
executed agreement with the CDFI
Fund, and (ii) the CDFI Fund has
yet to make a final determination
as to whether the entity is in
default of its previously executed
agreement, the CDFI Fund will
consider the Applicant's
Application under this NOFA pending
full resolution of the
noncompliance, in the sole
determination of the CDFI Fund.
Default Status.................... The CDFI Fund will not consider an
Application submitted by an
Applicant that is a prior Awardee/
Allocatee under any CDFI Fund
program if, as of the Application
due date: (i) The CDFI Fund has
made a determination that such
Applicant is in default of a
previously executed assistance,
allocation or award agreement and
(ii) the CDFI Fund has provided
written notification of such
determination to the Applicant
indicating the length of time the
default status is effective.
Undisbursed Award Funds........... The CDFI Fund will not consider an
Applicant's Application if the
Applicant Awardee under any CDFI
Fund program and has undisbursed
award funds (as defined below) as
of this NOFA's Application
deadline. The CDFI Fund will
include the combined undisbursed
prior awards, as of this NOFAs
Application deadline, of the
Applicant and its affiliates
including those affiliates that
Controls the Applicant, is
Controlled by the Applicant, or
shares common management officials
with the Applicant as the CDFI Fund
determines.
BEA Program Undisbursed Awards For the BEA Program, undisbursed
Calculations. award funds will be included in the
calculation of undisbursed awards
for the Applicant and any three to
five calendar years prior to the
end of the calendar year of this
NOFA's Application deadline. For
purposes of this NOFA, therefore,
undisbursed awards made in FYs
2007, 2008, and 2009 will be
included in the calculation for the
Applicant's undisbursed award
amounts if the funds have not been
disbursed as of this NOFA's
Application deadline.
NACA Program Undisbursed Awards The NACA Program undisbursed funds
Calculations. will be calculated by adding all
undisbursed award amounts made to
the Applicant two to five calendar
years prior to the end of the
calendar year of this NOFA.
Therefore, undisbursed NACA awards
made in FYs 2007, 2008, 2009, and
2010 will be included in the
undisbursed calculation as of this
NOFA's Application deadline.
The CDFI Fund reserves the right to
adjust the award amount issued,
under this NOFA, based upon the
amount of FY 2011 and FY 2012
awards that remain undisbursed.
Undisbursed Award Calculations.... Undisbursed awards cannot exceed
five percent of the total
includable awards for the
Applicant's BEA/CDFI/NACA awards,
as of this NOFA's Application
deadline. (The total ``includable''
award amount is the total award
amount from the relevant CDFI Fund
program.) Please refer to an
example of this calculation on the
CDFI Fund's Web site, found in the
Q&A document for the FY 2013
Funding Round. The ``undisbursed
award funds'' calculation does not
include: (i) Tax credit allocation
authority made available through
the NMTC Program; (ii) award funds
that the Awardee has requested from
the CDFI Fund by submitting a full
and complete disbursement request
before this NOFA's Application
deadline; (iii) award funds for an
award that the CDFI Fund has
terminated or de-obligated; or (iv)
award funds for an award that does
not have a fully executed
assistance or award agreement.
------------------------------------------------------------------------
2. Contact the CDFI Fund
Applicants that are prior CDFI Fund Awardees are advised to: (i)
Comply with requirements specified in assistance, allocation, and/or
award agreement(s), and (ii) contact the CDFI Fund at least 10 business
days prior this NOFA's Applications deadline to ensure necessary
actions are underway for the disbursement or de-obligation of any prior
outstanding award balance(s) as referenced above.
C. Matching Funds
1. Matching Funds Requirements in General
In FY 2012, the CDFI Fund's Congressional appropriations waived the
matching funds requirement for NACA Applicants. Consequently, the
matching funds requirement for FA Applicants remains under the current
Continuing Resolution for FY 2013 appropriations but has been waived
for NACA FA Applicants. If matching funds are not waived in the final
appropriation, matching funds will be required for NACA FA Applicants
and must be comparable in form and value to the FA award. However, NACA
Applicants are not required to submit matching funds documentation with
their Application. In the event that matching funds are required, NACA
FA Applicants will be given the opportunity to submit matching funds
documentation at a later time.
If matching funds are not waived, NACA FA Applicants must obtain
non-Federal matching funds, on the basis of not less than one dollar
for each dollar of FA funds the CDFI Fund provides. This requirement
pertains to FA Applicants only; matching funds are not required for TA
Applicants. This means that if an Applicant is requesting a FA award,
the Applicant must show it has obtained matching funds through
commitment(s) from non-Federal sources that are equal to the amount
requested from the CDFI Fund. Applicants cannot use matching funds from
a prior FA award under the NACA
[[Page 76610]]
Program or under another federal grant or award program to satisfy the
matching funds requirement of this NOFA. If an Applicant seeks to use
matching funds from an organization that was a prior Awardee under the
NACA, the CDFI Fund will deem such funds as Federal funds, unless the
funding entity establishes and the CDFI Fund agrees, that such funds do
not consist, in whole or in part, of NACA Program funds or other
Federal funds. The CDFI Fund reserves the right to contact the matching
funds source to discuss the matching funds and the documentation that
the Applicant has provided. The CDFI Fund encourages Applicants to
review the Regulations at 12 CFR Sec. 1805.500 et seq. and matching
funds guidance materials on the CDFI Fund's Web site for further
information.
2. In an event that the waiver is not provided, the CDFI Fund will
not consider any NACA FA Applicant for an award that does not have
matching funds in-hand or firmly committed as of this NOFA's
Application deadline. Specifically, NACA FA Applicants must meet the
following matching funds requirements:
(a) Certified and Certifiable Native CDFIs: A Certified or
Certifiable Native CDFI Applicant must demonstrate that it has eligible
matching funds equal to no less than 25 percent of the FA amount
requested in-hand or firmly committed, on or after January 1, 2011, and
on or before the Application deadline. The CDFI Fund reserves the right
to rescind all or a portion of a FA award and re-allocate the rescinded
award amount to other qualified Applicant(s), if an Applicant fails to
obtain in-hand 100 percent of the required matching funds by January
15, 2014 (with required documentation of such receipt received by the
CDFI Fund not later than January 31, 2014). The CDFI Fund may grant an
extension of such matching funds deadline for specific Applicants
selected to receive FA awards, if the CDFI Fund deems it appropriate.
3. Matching Funds Terms Defined; Required Documentation
Table 5--Matching Funds Definitions
------------------------------------------------------------------------
Type of matching funds Definition
------------------------------------------------------------------------
Matching Funds ``in-hand''........ The Applicant has actually received
disbursement of the matching funds
and provides to the CDFI Fund
acceptable written documentation,
showing the source, form, and
amount of the matching funds (i.e.,
grant, loan, deposit, and equity
investment). Applicants must
provide copies of the following
documentation depending on the type
of award being requested: (i)
loans--the loan agreement and
promissory note; (ii) grant--the
grant letter or agreement for all
grants of $50,000 or more; (iii)
equity investment--the stock
certificate and any related
shareholder agreement. The
Applicant must also provide
acceptable documentation that
demonstrates receipt of the
matching funds, such as a copy of a
check or a wire transfer statement.
Matching Funds ``firmly The Applicant has entered into or
committed''. received a legally binding
commitment from the matching funds
source showing the match funds will
be disbursed to the Applicant. The
Applicant must also provide
acceptable written documentation
showing the source, form, and
amount of the firm commitment (and,
in the case of a loan, the terms
thereof), as well as the
anticipated disbursement date of
the committed funds.
------------------------------------------------------------------------
4. Ineligible Matching Funds
If the CDFI Fund determines that any portion of the Applicant's
matching funds is ineligible under this NOFA, the CDFI Fund, in its
sole discretion, may permit the Applicant to offer alternate matching
funds as a substitute for the ineligible matching funds. In such
instances: (i) The Applicant must provide acceptable alternate matching
funds documentation within two business days of the CDFI Fund's
request, and (ii) the alternate matching funds documentation will not
increase the total amount of FA the Applicant requested.
5. Special Rule for Insured Credit Unions
The Regulations allow an Insured Credit Union to use retained
earnings to serve as matching funds for a FA award in an amount equal
to: (i) the increase in retained earnings that has occurred over the
Applicant's most recent fiscal year; (ii) the annual average of such
increases that has occurred over the Applicant's three most recent
fiscal years; or (iii) the entire retained earnings that have been
accumulated since the inception of the Applicant, as provided in the
Regulations. For purposes of this NOFA, if option (iii) is used, the
Applicant must increase its member and/or non-member shares or total
loans outstanding by an amount equal to the amount of retained earnings
committed as matching funds. This increase must occur by the end of the
Awardee's second performance period, as set forth in its Assistance
Agreement, and will be based on amounts reported in the Applicant's
Audited or Reviewed Financial Statements or NCUA Form 5300 Call Report.
The CDFI Fund will assess the likelihood of this increase during the
Application review process. An award will not be made to any Applicant
that has not demonstrated in the relevant Financial Statements or NCUA
Call Report that it has increased shares or loans by at least 25
percent of the requested FA award amount between December 31, 2011, and
December 31, 2012.
IV. Application and Submission Information
A. Application Submission
Under this NOFA, Applicants must submit Applications electronically
through Grants.gov. The CDFI Fund will not accept Applications through
myCDFIFund accounts nor will Applications be accepted via email, mail,
facsimile, or other forms of communication, except in circumstances
approved by the CDFI Fund beforehand.
B. Grants.gov
In compliance with Public Law 106-107 and Section 5(a) of the
Federal Financial Assistance Management Improvement Act, the CDFI Fund
is required to accept Applications submitted through the Grants.gov
electronic system. The CDFI Fund strongly recommends Applicants start
the registration process as soon as possible and visit www.grants.gov
immediately. Applicants that have used Grants.gov in the past must
verify that their registration is current and active. New applicants
must properly register, which may take several weeks to complete.
Pursuant to OMB guidance (68 Federal Register 38402), each Applicant
must provide, as part of its Application submission, a Dun and
Bradstreet Data Universal Numbering System (DUNS) number. In addition,
each Application must include a valid and current Employer
Identification
[[Page 76611]]
Number (EIN). An electronic Application that does not include either a
DUNS number or an EIN is incomplete and may not be transmitted to the
CDFI Fund from Grants.gov. As a result, Applicants without a DUNS
number or EIN should allow sufficient time for the IRS and/or Dun and
Bradstreet to respond to inquiries and/or requests for identification
numbers.
The CDFI Fund will not consider Applicants that fail to properly
register in Grants.gov or to confirm they are properly registered and
as a result, are unable to submit their Applications before the
deadline. Applicants are reminded that the CDFI Fund does not maintain
the Grants.gov registration or submittal process. Thus Applicants must
contact Grants.gov directly for issues related to that aspect of the
Application submission process. Please see the following link for
information on getting started on Grants.gov http://grants.gov/applicants/organization_registration.jsp.
C. System for Award Management (SAM)
On July 30, 2012, the Central Contractor Registration (CCR)
transitioned to the new System for Award Management, or SAM. All data
in the registrant database has been migrated from CCR into SAM.
Applicants that need to create a new account or update their current
registration must register for a user account in SAM. Registering with
SAM is required for organizations to use Grants.gov. The registration
process may take several business days for Applicants that have an EIN.
If an Applicant does not have an EIN, the Applicant should allow
several weeks for obtaining one from the IRS. The CDFI Fund will not
consider Applicants that fail to properly register in SAM or to confirm
they are properly registered and as a result, are unable to submit
their Applications before the deadline. The CDFI Fund does not maintain
the SAM registration process. Thus Applicants must contact SAM directly
for issues related to registration. The CDFI Fund strongly encourages
Applicants to ensure that their SAM registration is updated and that
their accounts are not expired. For information regarding SAM
registration, please visit https://www.sam.gov/portal/public/SAM.
D. myCDFIFund Accounts
myCDFIFund is the CDFI Fund's primary means of communication with
Applicants. Every Applicant is responsible for ensuring its myCDFIFund
account is up-to-date at all times. All Applicants must register as an
organization and as a user with myCDFIFund before the Application
deadline. An Applicant that fails to properly register and update its
myCDFIFund accounts may miss important communications with the CDFI
Fund that could impact its Application. For more information on
myCDFIFund, please see the ``Frequently Asked Questions'' link posted
at https://www.cdfifund.gov/myCDFI/Help/Help.asp.
E. Application Content Requirements
The Application and related documents can be found on the
Grants.gov and the CDFI Fund's Web sites. The CDFI Fund anticipates
posting the Application and related documents to the CDFI Fund's Web
site on the same day that the NOFA is released or shortly thereafter.
Once an Application is submitted to Grants.gov, the Applicant will not
be allowed to change any element of the Application. The CDFI Fund,
however, may contact the Applicant to clarify or confirm Application
information.
F. 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. Pursuant to the
Paperwork Reduction Act, the NACA Program funding Application has been
assigned the following control number: 1559-0025.
G. Application Deadlines
Please see the following table for critical deadlines that are
relevant to the FY 2013 Funding Round.
Table 6--FY 2013 Funding Round Application Critical Dates
------------------------------------------------------------------------
Description Date due Time
------------------------------------------------------------------------
Last day to contact Program February 26, 2013.. 5:00 p.m.
staff.
NACA Program Application........ February 28, 2013.. 11:59 p.m.
------------------------------------------------------------------------
1. Late Delivery
The CDFI Fund will not accept an Application or any portion of an
Application that is submitted after the Application deadline.
Applicants are responsible for submitting their Applications on time
through Grants.gov. The CDFI Fund will not grant exceptions or waivers.
Any Application that is deemed ineligible or rejected will not be
returned to the Applicant.
H. Intergovernmental Review
Not applicable.
I. Funding Restrictions
For allowable uses of FA proceeds, please see the Regulations at 12
CFR 1805.301.
V. Application Review Information
A. Format
Applicants must complete, and the CDFI Fund will only accept, the
Application as provided in Grants.gov and the CDFI Fund's Web site. The
FY 2013 Application is a fillable electronic PDF form, with pre-set
text limits and font size restrictions. Applicants must submit their
narrative responses by using the FY 2013 CDFI Program Application
narrative template document. This Word document should be submitted as
an attachment to the PDF form. Applicants should not submit information
that has not been specifically requested in this NOFA or the
Application. Applicants should not submit documents such as strategic
plans or market studies unless the CDFI Fund has specifically requested
such documents in the Application.
B. Review and Selection Process
1. Eligibility and Completeness Review
The CDFI Fund will review each Application to determine whether it
is complete and the Applicant meets the eligibility requirements
described in Section III of this NOFA. An incomplete Application or one
that does not meet eligibility requirements will be rejected.
2. Substantive Review
If the Applicant has submitted a complete and eligible Application,
the CDFI Fund will conduct a substantive review in accordance with the
criteria and procedures described in the Regulations, this NOFA, and
the Application guidance. The CDFI Fund
[[Page 76612]]
reserves the right to contact the Applicant by telephone, email, or
mail for the sole purpose of clarifying or confirming Application
information. If contacted, the Applicant must respond within the CDFI
Fund's time parameters or run the risk of its Application being
rejected.
3. Application Scoring and Award Selection (FA and TA Applicants)
(a) Application Scoring: The CDFI Fund will evaluate each
Application on the criteria categories and the scoring scale described
in the Application. An Applicant must receive a minimum score in each
evaluation criteria in order to be considered for an award. The CDFI
Fund will score each part as indicated in the following table:
Table 7--Application Scoring Criteria
----------------------------------------------------------------------------------------------------------------
Comprehensive Business Plan (CBP)
sections FA applicants TA applicants
----------------------------------------------------------------------------------------------------------------
1. Executive Summary..................... Not Scored........................ Not Scored.
2. Historic and High Impact.............. 15 points......................... Not Applicable.
3. Technical Assistance Proposal (TAP)... Not Applicable.................... 30 points.
4. Needs & Demand........................ 15 points......................... 15 points.
5. Products, Services, and Marketing..... 30 points......................... 25 points.
6. Management Capacity................... 20 points......................... 15 points.
7. Financial Capacity.................... 20 points......................... 15 points.
8. Performance on Past Awards (If Not Scored........................ Not Scored.
Applicable).
9. Community Partners (If Applicable).... Not Scored........................ Not Scored.
----------------------------------------------------------------------
TOTAL POINTS......................... 100............................... 100.
----------------------------------------------------------------------------------------------------------------
Applicants whose activities are part of a broader neighborhood
revitalization strategy and/or that target marginalized or isolated
populations will be scored more favorably under the section of the
Application pertaining to Target Market Needs.
(b) Evaluating Prior Award Performance: The CDFI Fund will deduct
points for any Applicant that is a prior Awardee or Allocatee of any
CDFI Fund program if the Applicant: (i) Is noncompliant with any award
by failing to meet performance goals and measures, reporting deadlines,
or other requirements set forth in the CDFI Fund's assistance,
allocation, or award agreement(s) for reports due during the
Applicant's two completed fiscal years prior to this NOFA's Application
deadline; and (ii) failed to make timely loan payments to the CDFI Fund
during the Applicant's two complete fiscal years prior to this NOFA's
Application deadline (if applicable). In addition, the CDFI Fund will
deduct points if a FA Applicant had funds de-obligated for FA awards
issued in FY 2010, 2011 or 2012 if: (i) The amount of de-obligated
funds is at least $200,000 and (ii) the de-obligation occurred within
the 12 months prior to this NOFA's Application deadline. The CDFI Fund
has the sole discretion to deduct points from prior Awardees/Allocates
if those Applicants have proceedings instituted against them in, by, or
before any court, governmental agency, or administrative body and has
received a final determination within the last three calendar years
indicating the Applicant has discriminated on the basis of race, color,
national origin, disability, age, marital status, receipt of income
from public assistance, religion, or sex.
(c) Award Selection: The CDFI Fund will make its final award
selections based on the Applicants' scores, ranked from highest to
lowest, and the amount of funds available. In the case of tied scores,
Applicants will be ranked first according to each Financial Capacity
score; followed by the Historic and High Impact score. TA and FA
Applicants will be grouped and ranked separately. In addition, the CDFI
Fund may consider the institutional and geographic diversity of
Applicants when making its funding decisions.
4. Insured CDFIs
In the case of Insured Depository Institutions and Insured Credit
Unions, the CDFI Fund will consider information provided by, and views
of the Appropriate Federal Banking Agencies. If the Applicant is a CDFI
bank holding company, the CDFI Fund will consider information provided
by the Appropriate Federal Banking Agencies of the CDFI bank holding
company and the CDFI bank that will implement the award. Throughout the
award review process, the CDFI Fund will consult with the Appropriate
Federal Banking Agency about the Applicant's financial safety and
soundness. If the Appropriate Federal Banking Agency identifies safety
and soundness concerns, the CDFI Fund will assess whether the concerns
cause or will cause the Applicant to be incapable of undertaking the
activities for which funding has been requested. If it is determined
the Applicant is incapable of meeting its obligations, the CDFI Fund
reserves the right to rescind the award decision. The CDFI Fund also
reserves the right to require Insured CDFI Applicants to improve safety
and soundness conditions prior to receiving an award disbursement. In
addition, the CDFI Fund will take into consideration Community
Reinvestment Act assessments of Insured Depository Institutions and/or
their Affiliates.
5. Award Notification
Each Applicant will be informed of the CDFI Fund's award decision
through a notification in the Applicant's myCDFIFund account. This
includes notification to Applicants that have not been selected for an
award if the decision is based on reasons other than completeness or
eligibility. Applicants that have not been selected for an award will
receive a debriefing in their myCDFIFund account.
6. Application Rejection
The CDFI Fund reserves the right to reject an Application if
information (including administrative errors) comes to the CDFI Fund's
attention that either 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. If the CDFI Fund determines any portion of the Application is
incorrect in a material respect, the CDFI Fund reserves the right, in
its sole discretion, to reject it. The CDFI Fund reserves the right to
change its eligibility and evaluation criteria and procedures, if the
CDFI Fund deems it appropriate. If the changes materially affect the
CDFI Fund's award decisions the CDFI Fund will provide information
about the changes through the CDFI Fund's Web site. The CDFI Fund's
award decisions are final and there is no right to appeal the
decisions.
[[Page 76613]]
VI. Award Administration Information
A. Assistance Agreement
Each Applicant selected to receive an award under this NOFA must
enter into an Assistance Agreement with the CDFI Fund in order to
receive disbursement of the award funds. The Assistance Agreement will
set forth the award terms and conditions, including but not be limited
to the award: (i) Amount; (ii) type; (iii) uses; (iv) targeted market
or activities; (v) performance goals and measures; and (vi) reporting
requirements. FA Assistance Agreements will usually have three-year
performance periods; TA Assistance Agreements will usually have two-
year performance periods. All FA and TA awardees that are not Insured
CDFIs will be required to provide the CDFI Fund with a certificate of
good standing from the secretary of state for the Awardee's state of
incorporation. This certificate can often be acquired online on the
secretary of state Web site for the Awardee's state of incorporation
and must generally be dated within 270 days of the date the Awardee
executes the Assistance Agreement. Due to potential backlogs in state
government offices, Applicants are advised to submit requests for
certificates of good standing at the time that they submit their
Applications. If prior to entering into an Assistance Agreement with
the CDFI Fund, information (including administrative error) comes to
the CDFI Fund's attention that: (i) Adversely affects the Awardee's
eligibility for an award, (ii) adversely affects the Awardee's
certification as a CDFI (to the extent that the Award is conditional
upon CDFI certification), (iii) adversely affects the CDFI Fund's
evaluation of the Awardee's Application, or (iv) indicates fraud or
mismanagement on the Awardee's part, the CDFI Fund may, in its
discretion and without advance notice to the Awardee, terminate the
award or take such other actions as it deems appropriate. The CDFI Fund
reserves the right, in its sole discretion, to rescind an award if the
Awardee fails to return the Assistance Agreement, signed by the
authorized representative of the Awardee, and/or provide the CDFI Fund
with any other requested documentation, within the CDFI Fund's
deadlines.
1. Failure To Meet Reporting Requirements
If an Awardee is a prior Awardee/Allocatee under any CDFI Fund
program and is not current with the reporting requirements set forth in
the previously executed agreement(s) with the CDFI Fund, the CDFI Fund
reserves the right, in its sole discretion, to delay entering into an
Agreement until the Awardee/Allocatee is current with the reporting
requirements. Please note that the CDFI Fund only acknowledges the
receipt of reports that are complete. As such, incomplete reports or
reports that are deficient of required elements will not be recognized
as having been received. If said prior Awardee/Allocatee is unable to
meet this requirement within the timeframe the CDFI Fund sets, the CDFI
Fund reserves the right, in its sole discretion, to terminate and
rescind the Assistance Agreement and the award made under this NOFA.
2. Failure To Maintain Certification
If an Awardee applied for an award, under this NOFA, as a Certified
CDFI and certified status was an ongoing obligation of the award, but
the Awardee failed to preserve and keep in full force and effect its
certification as a CDFI, the CDFI Fund reserves the right, in its sole
discretion, to terminate and rescind the Assistance Agreement and the
award made under this NOFA.
3. Pending Resolution of Noncompliance
If an Applicant is a prior Awardee under any CDFI Fund program and
if: (i) It has submitted reports to the CDFI Fund that demonstrate
noncompliance with a previous executed agreement with the CDFI Fund;
and (ii) the CDFI Fund has yet to make a final determination as to
whether the entity is in default of its agreement, the CDFI Fund
reserves the right, in its sole discretion, to delay entering into an
Assistance Agreement, pending full resolution of the noncompliance
issue to the CDFI Fund's satisfaction. If the said prior Awardee/
Allocatee is unable to satisfactorily resolve the compliance issues,
the CDFI Fund reserves the right, in its sole discretion, to terminate
and rescind the Assistance Agreement and the award made under this
NOFA.
4. Default Status
If, at any time prior to entering into an Assistance Agreement
through this NOFA, the CDFI Fund has made a final determination that an
Awardee is a prior Awardee/Allocatee under any CDFI Fund program is in
default of a previously executed assistance, allocation, or award
agreement(s), the CDFI Fund reserves the right, in its sole discretion,
to delay entering into an Assistance Agreement, until said prior
Awardee/Allocatee has submitted a complete and timely report
demonstrating full compliance within the CDFI Fund's timeframe. If said
prior Awardee/Allocatee is unable to meet this requirement and the CDFI
Fund has not specified in writing that the prior Awardee/Allocatee is
otherwise eligible to receive an Award under this NOFA, the CDFI Fund
reserves the right, in its sole discretion, to terminate and rescind
the Assistance Agreement and the award made under this NOFA.
5. Termination in Default
If prior to entering into an Assistance Agreement under this NOFA
(i) the CDFI Fund has made a determination that an Awardee is a prior
Awardee/Allocatee under any CDFI Fund Program for which the award or
allocation was terminated in default of such prior agreement; (ii) the
CDFI Fund has provided written notification of such determination to
the Awardee; and (iii) the anticipated date for entering into the
Assistance Agreement under this NOFA is within a period of time
specified in such notification throughout which any new award,
allocation, or assistance is prohibited, the CDFI Fund reserves the
right, in its sole discretion, to terminate and rescind the Assistance
Agreement and the award made under this NOFA.
6. Compliance With Federal Anti-Discrimination Laws
If the Awardee has previously received funding through any CDFI
Fund program, and if at any time prior to entering into an Assistance
Agreement through this NOFA, the CDFI Fund is made aware of a final
determination, made within the last three calendar years, in any
proceeding instituted against the Awardee in, by, or before any court,
governmental, or administrative body or agency, declaring that the
Awardee has discriminated on the basis of race, color, national origin,
disability, age, marital status, receipt of income from public
assistance, religion, or sex, the CDFI Fund reserves the right, in its
sole discretion, to terminate and rescind the Assistance Agreement and
the award made under this NOFA.
B. Reporting
1. Reporting Requirements
At least on an annual basis, the CDFI Fund will collect information
from each Awardee including, but not limited to, an Annual Report with
the following components: (i) Financial Reports, (ii) OMB A-133 audit;
(iii) A-133 Narrative Report; (iv) Institution Level Report; (v)
Transaction Level Report (for Awardees receiving FA awards); (vi)
Financial Status Report SF-425 (for Awardees receiving TA grants);
(vii) Uses of
[[Page 76614]]
Financial Assistance (for Awardees receiving FA awards); (viii) Uses of
Technical Assistance (for Awardees receiving TA grants); (ix)
Explanation of Noncompliance (as applicable); and (x) such other
information as the CDFI Fund may require. Each Awardee is responsible
for the timely and complete submission of the Annual Report, even if
all or a portion of the documents is actually completed by another
entity or signatory to the Assistance Agreement. If such other entities
or signatories are required to provide Institution Level Reports,
Transaction Level Reports, Financial Reports, or other documentation
that the CDFI Fund may require, the Awardee is responsible for ensuring
that the information submitted is timely and complete. The CDFI Fund
reserves the right to contact such additional entities or signatories
to the Assistance Agreement and require that additional information and
documentation be provided. The CDFI Fund will use such information to
monitor each Awardee's compliance with the requirements in the
Assistance Agreement and to assess the impact of the NACA Program. All
reports with the exception of the Institution Level Report and the
Transaction Level Report, must be electronically submitted directly to
the CDFI Fund via the Awardee's myCDFIFund account. The Institution
Level Report and the Transaction Level Report must be submitted through
the CDFI Fund's web-based data collection system, the Community
Investment Impact System (CIIS) accessed through the Awardee's
myCDFIFund account. 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 Awardees.
2. Accounting
The CDFI Fund will require each Awardee to account for and track
the use of its award. This means that Awardees must track every dollar
and must inform the CDFI Fund of its uses. This will require Awardees
to establish separate administrative and accounting controls, subject
to the applicable OMB Circulars. The CDFI Fund will provide guidance on
the format and content of the annual information to be provided,
outlining and describing how the funds were used. All Awardees are
responsible for ensuring their banking account information is updated
and accurate in the System for Award Management (SAM) as directed in
this NOFA's Section IV. C.
VII. Agency Contact
A. The CDFI Fund will respond to questions concerning this NOFA and
the Application between the hours of 9:00 a.m. and 5:00 p.m. Eastern
Time, starting on the date that the NOFA is published through two
business days prior to the Application deadline. During the two
business days prior to the Application deadline, the CDFI Fund will not
respond to questions for Applicants until after the Application
deadline. Applications and other information regarding the CDFI Fund
and its programs may be obtained from the CDFI Fund's Web site at
http://www.cdfifund.gov. The CDFI Fund will post on its Web site
responses to questions of general applicability regarding the NACA
Program.
B. Applicants may contact the CDFI Fund as follows:
Table 8--Contact Information
------------------------------------------------------------------------
Telephone number
Type of question (not toll free) Email addresses
------------------------------------------------------------------------
Fax number for all offices:
(202) 508-0083
NACA Program.................... (202) 653-0421 cdfihelp@cdfi.treas.gov.
Certification, Compliance (202) 653-0423 ccme@cdfi.treas.gov
Monitoring and Evaluation. .
Information Technology Support.. (202) 653-0300 IThelpdesk@cdfi.treas.gov.
------------------------------------------------------------------------
C. Information Technology Support: People who have visual or
mobility impairments that prevent them from creating a Target Market
map using the CDFI Fund's Web site should call (202) 653-0300 for
assistance (this is not a toll free number).
D. Communication With the CDFI Fund: The CDFI Fund will use the
Applicants' and Awardees' contact information in their myCDFIFund
accounts to communicate. It is imperative; therefore, that Applicants,
Awardees, Subsidiaries, Affiliates, and signatories maintain accurate
contact information in their accounts. This includes information like
contact names, especially for the authorized representative; email
addresses; fax and phone numbers; and office locations. For more
information about myCDFIFund, as well as information on the Community
Investment Impact System, please see the following Web site: http://www.cdfifund.gov/ciis/accessingciis.pdf.
VIII. Information Sessions and Outreach
The CDFI Fund may conduct webinars or host information sessions for
organizations that are considering applying to, or are interested in
learning about, the CDFI Fund's programs. For further information,
please visit the CDFI Fund's Web site at http://www.cdfifund.gov.
Authority: 12 U.S.C. 4701, et seq; 12 CFR parts 1805 and 1815.
Dated: December 21, 2012.
Donna J. Gambrell,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2012-31164 Filed 12-27-12; 8:45 am]
BILLING CODE 4810-70-P