[Federal Register Volume 78, Number 211 (Thursday, October 31, 2013)]
[Notices]
[Pages 65440-65450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25949]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Notice of Funds Availability (NOFA) Inviting Applications for the
Native American CDFI Assistance Program (NACA Program) for the Fiscal
Year (FY) 2014 Funding Round
Announcement Type: Announcement of funding opportunity.
Catalog of Federal Domestic Assistance (CFDA) Number: 21.020.
DATES: Applications for Financial Assistance (FA) or Technical
Assistance (TA) awards through the FY 2014 Funding Round of the NACA
Program must be received by 11:59 p.m., Eastern Time (ET), December 23,
2013.
Executive Summary: Subject to funding availability, this NOFA is
issued in connection with the FY 2014 Funding Round of the NACA
Program, which the Community Development Financial Institutions Fund
(CDFI Fund) administers.
I. Funding Opportunity Description
A. Award Requirements: The CDFI Fund makes FA awards and TA grants
through the NACA Program to entities that meet the requirements set
forth in this NOFA. FA awards will be made to Certified Community
Development Financial Institutions (CDFIs) serving Native Communities
that complete and submit the Application and meet the FA requirements
set forth in this NOFA, the Application and the Regulations; TA grants
will be made to Certified, Certifiable and Emerging CDFIs serving
Native Communities and Sponsoring Entities that complete and submit the
Application and meet the TA requirements set forth in this NOFA, the
Application and the Regulations. Through the FY 2014 Funding Round, the
CDFI Fund will also make FA awards for Healthy Food Financing
Initiative (HFFI-FA) activities to Certified CDFIs serving Native
Communities that complete and submit the Application and meet the HFFI-
FA requirements set forth in the NOFA, the Application and the
Regulations. NACA Applicants that are interested in applying for HFFI-
FA can find additional details about that program in the FY 2014
Community Development Financial Institutions Program (CDFI Program)
NOFA. For purposes of this NOFA, the term ``Native Community'' means a
Native American, Alaska Native, or Native Hawaiian population, land or
Census-equivalent entity (as defined by the Bureau of the Census). In
addition, Native Community includes a Native Other Targeted Population
as described in Table 3 of this NOFA for Native Americans or American
Indians, including Alaska Natives living in Alaska and Native Hawaiians
living in Hawaii.
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 Application content requirements are found in the Application
and related materials. Capitalized terms are defined in this NOFA, the
Regulations, or the Application. The CDFI Fund encourages Applicants to
review the Regulations in addition to this NOFA.
C. 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 also 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
[[Page 65441]]
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
NACA 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 2014 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.
In the recent past, 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 this NOFA. As a result, the CDFI Fund invites Applicants to
indicate their level of participation in persistent poverty counties in
their FY 2014 applications. The CDFI Fund reserves the right to award
more or less than the amount cited above in the FY 2014 Funding Round,
based upon available funding and other applicable factors.
2. Funding Availability for the FY 2014 Funding Round: Funds for
the FY 2014 Funding Round have not yet been appropriated; if Congress
does not appropriate funds for the NACA Program, there will not be a FY
2014 Funding Round. If funds are appropriated, the amount of such funds
may be greater or less than the amounts set forth above. CDFIs that
quality for the Native American CDFI Assistance (NACA) Program are
encouraged to apply for CDFI Program funds in case no funds are
appropriated for the NACA Program.
All awards made through 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 Entitles that can use TA funds to create a
separate legal entity and then transfer the TA funds to help the entity
become a Certified CDFI serving a Native Community. 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
the case where a CDFI bank-holding company Applicant intends to deploy
its FA award through its 100 percent wholly-owned CDFI subsidiary bank,
the Application must be made at the CDFI bank-holding company level and
reflect consolidated activities and financial performance. Authorized
representatives of both the holding company and the bank must 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 for a FA
award or a TA grant, but not both. For purposes of this NOFA, ``FA
awards'' include awards made using NACA Program FA funds and awards
made using HFFI-FA funds.
1. FA Awards: FA awards provide flexible financial support to CDFIs
so they may execute the organizational goals 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 (v) Capital Reserves, and can
include up to 15 percent of the total award in Administrative Funds to
carry out the eligible uses. For purposes of this NOFA, the five
categories mean:
Table 1--Five Categories of FA
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------------------------------------------------------------------------
(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.
(ii) Financial Services...... Checking and savings accounts, certified
checks, automated teller machines
services, deposit taking, remittances,
safe deposit box services, and other
similar 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.
(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.
(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.
------------------------------------------------------------------------
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. As described in this NOFA, FA Applicants must meet
certain matching funds requirements; the form of the FA Applicant's
matching funds will dictate the form of the FA award. The CDFI Fund
reserves the right, in its sole discretion, to provide an FA 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.
2. TA Grants: (a) The CDFI Fund provides TA in the form of a grant
and reserves the right, in its sole discretion, to provide a TA grant
for amounts other than which the Applicant requests; however, the TA
grant amount will not exceed the Applicant's request as stated in its
Application and the applicable budget chart.
(b) 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 build the Applicant's capacity. An Applicant
that is an Emerging CDFI serving Native Communities and has not
received a
[[Page 65442]]
previous TA award will be rated, among other elements, on its plan to
meet the requirements of a Certified CDFI within two years. An
Applicant that is an Emerging CDFI serving Native Communities and is a
prior TA awardee will be rated, among other elements, on its plan to
meet the CDFI certification goal specified in its previous NACA Program
Assistance Agreement.
C. Assistance Agreement: All Awardees, prior to receiving award
funds, must sign an Assistance Agreement, which contains the award's
terms and conditions. For further information, see Section VI.A of this
NOFA.
III. Eligibility Information
A. Eligible Applicants
In order to be eligible for a NACA FA award, an Applicant must be a
Certified CDFI or Certifiable CDFI that has identified one or more
Native Communities as part of its certified Target Market. Furthermore,
each NACA FA Applicant must demonstrate that at least 50 percent of its
past activities were in one or more Native Communities and describe how
it will target its lending/investing activities to one or more Native
Communities. All NACA FA Applicants must demonstrate strong Community
Partnerships with Native Communities as well.
In order to be eligible for a TA award, an Applicant must be a
Certifiable or Emerging CDFI that serves or will serve Native
Communities. A Sponsoring Entity is also eligible to apply for a TA
grant if it does not have a prior active award from the CDFI Fund or if
the certification goal has been satisfied in its prior active award and
it is proposing to create another CDFI that will serve one or more
Native Communities. The Sponsoring Entity will be expected to create
the Emerging CDFI within one year of the Effective Date in its FY 2014
Assistance Agreement with the CDFI Fund and must include the Emerging
CDFI as a co-awardee in the Assistance Agreement once it has been
legally created. The Sponsoring Entity and the Emerging CDFI will be
given four years from the Effective Date in the FY 2014 Assistance
Agreement for the Emerging CDFI to become certified. Beginning in FY
2014, an Emerging CDFI will be allowed to receive no more than three TA
awards as an uncertified CDFI. For purposes of this NOFA, a Sponsoring
Entity is an entity that proposes to create a separate legal entity
that will become a Certified CDFI serving a Native Community.
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, a
Tribally Controlled Community College, community development
corporation, training or education organization, or Chamber of Commerce
and that primarily serves Native Community with ``primary'' meaning, at
least 50 percent of its activities are directed toward the Native
Community.
1. Applicant Categories: FA and TA Applicants must meet the
criteria listed in the table below.
Table 2--NACA Applicant Eligibility
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Applicant category Applicant eligibility Applicant may apply for:
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FA.................................... 1. A Certified or Certifiable CDFI that has Up to and including
identified at least one or more Native $750,000 in FA funds.
Communities as its Target Market, which can
include a Native ``Other Targeted
Populations'' (OTP) Target Market.
2. A Certifiable CDFI must submit a
certification application in accordance with
the deadlines in this NOFA.
3. The Applicant must demonstrate that at
least 50 percent of its past activities were
in Native Communities and describe how it
will target its lending/investing activities
to one or more Native Communities.
4. The Applicant must demonstrate strong
Community Partnership(s) within the Native
Community in its NACA Application.
TA.................................... 1. A Certified, Certifiable, or Emerging CDFI Up to $150,000 for
that has identified at least one or more capacity building
Native Community as its Target Market, which activities.
can include a Native OTP Target Market.
Beginning in FY 2014, an Emerging CDFI will
be allowed to receive no more than three TA
awards as an uncertified CDFI.
2. A Sponsoring Entity that has not received
a prior TA award and can demonstrate the
Emerging CDFI will be established within one
full fiscal year of the Effective Date in
its FY 2014 Assistance Agreement with the
CDFI Fund. The Applicant must agree to
include the Emerging CDFI as a co-awardee
once it has been legally created.
3. Sponsoring Entities that have received a
prior award must have satisfied the
certification goal of the prior award and is
proposing to create another CDFI that will
serve one or more Native Communities.
----------------------------------------------------------------------------------------------------------------
2. CDFI Certification Requirements: For purposes of this NOFA, as
defined in the table below, eligible FA Applicants include Certified/
Certifiable CDFIs serving Native Communities; eligible TA Applicants
include Certified, Certifiable, or Emerging CDFIs serving Native
Communities. The table below also includes criteria for using ``Other
Targeted Populations'' as a Target Market for Certification. All
Applicants must be certified or recertified as of June 1, 2014 or any
date thereafter prior to the announcement of awards; Applicants that
are in a cure period to remedy recertification deficiencies as of June
1, 2014 or any date thereafter prior to the announcement of awards will
not be eligible for FA awards under this NOFA. Please see the CDFI
Fund's Web site for additional information regarding recertification
and cure periods at Frequently Asked Questions regarding CDFI
Recertification at http://www.cdfifund.gov/docs/2013/certification/Frequently%20Asked%20Questions%20Recert.pdf.
[[Page 65443]]
Table 3--Certification Requirements for CDFIs Serving Native Communities
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Certified CDFI............... An entity that the CDFI Fund has
officially notified meets all
certification requirements for a CDFI.
A Certified Applicant must submit a
Certification of Material Events form
only if it has experienced a material
event. A ``material event'' is an
occurrence that affects an
organization's strategic direction,
mission, or business operation and,
thereby, its status as a Certified CDFI
and/or its compliance with the terms and
conditions of an Assistance Agreement.
Certifiable CDFI............. An entity that has submitted a
Certification Application to the CDFI
Fund demonstrating that it meets the
certification requirements for a CDFI,
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 an 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.
See Table 6 for the deadline to submit
Certification Application.
Emerging CDFI................ A non-certified entity that demonstrates
to the CDFI Fund that it has an
acceptable plan to meet certification
requirements by the end of its FY 2016,
or another date that the CDFI Fund
selects. Emerging CDFIs that have prior
awards will be held to the certification
date in their prior Assistance
Agreements. 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 to become a
Certified CDFI by a date specified in
the Assistance Agreement.
d) Native Other Targeted To define these populations for the
Population as Target Market. 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) Native Hawaiian (living in
Hawaii): A person having origins in
any of the original peoples of
Hawaii; and
------------------------------------------------------------------------
3. Limitation on Awards: An Applicant may receive either an award
through this NOFA or an award through the CDFI Program NOFA, but not
both. Although eligible Applicant can apply for the NACA Program and
the CDFI Program, it will receive only one FY 2014 award. A Sponsoring
Entity is only eligible to apply for an award if it does not have an
active prior award or the certification goal in its active award's
Assistance Agreement has been satisfied. An Emerging CDFI serving a
Native Community that has received three prior TA awards is not
eligible to receive an additional TA award.
B. Prior Awardees
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 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 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, excluding FY 2012 HFFI-FA awards. 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
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Prior awardee situation Requirements and considerations
------------------------------------------------------------------------
Failure to Meet Reporting The CDFI Fund will not consider an
Requirements. Application submitted by an Applicant
that is not current on reporting
requirements in a previously executed
agreement under any CDFI Fund program 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 The CDFI Fund will consider an
Noncompliance. Application pending full resolution of
any noncompliance issues if the
Applicant has: (i) Submitted reports
demonstrating noncompliance with a
previously executed agreement under any
CDFI Fund program, and (ii) the CDFI
Fund has yet to make a final
determination as to whether the
Applicant is in default of its
previously executed agreement.
Default Status............... The CDFI Fund will not consider an
Application submitted by an Applicant
that is in default of a previously
executed agreement under any CDFI Fund
program, at the time of the Application
deadline: (i) If the CDFI Fund has made
a determination that the Applicant is in
default of the agreement and the default
is final; (ii) the CDFI Fund has
provided written notification of the
final default determination to the
Applicant; and (iii) the Application
deadline is within a period of time
specified in the written notification in
which a new Application from the
Applicant is prohibited.
[[Page 65444]]
Undisbursed Award Funds...... The CDFI Fund will not consider an
Application submitted by an Applicant
that has undisbursed funds as defined
below, as of the Application deadline.
The CDFI Fund will include the combined
undisbursed prior awards of the
Applicant and its affiliated entities,
including those in which the affiliated
entity Controls the Applicant, is
Controlled by the Applicant, or shares
common management officials with the
Applicant as the CDFI Fund determines.
Undisbursed awards cannot exceed five
percent of the total includable awards
for the Applicant's Bank Enterprise
Award (BEA) Program/CDFI Program/NACA
Program awards, as of the Application
deadline. (The total ``includable''
award amount is the total award amount
from the relevant CDFI Fund program.)
The ``undisbursed award funds''
calculation does not include award funds
for: (i) Which the Awardee has submitted
a full and complete disbursement request
before the Application deadline; (ii) an
award that has been terminated or de-
obligated; or (iii) an award that does
not have a fully executed agreement; and
(iv) the tax credit allocation authority
made available through the NMTC Program.
BEA Program Undisbursed For the BEA Program, undisbursed funds
Awards Calculations. will include the Applicant's undisbursed
awards three to five calendar years
prior to the end of the calendar year of
the Application deadline. For purposes
of this NOFA, therefore, undisbursed
awards made in FYs 2008, 2009, and 2010
will be included in the Applicant's
undisbursed award amounts if the funds
have not been disbursed as of the
Application deadline.
NACA/CDFI Program Undisbursed Undisbursed funds will be calculated by
Awards Calculations. 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 Program/CDFI Program
awards made in FYs 2008, 2009, 2010, and
2011 will be included in the undisbursed
calculation as of the Application
deadline.
The CDFI Fund reserves the right to
adjust the award amount based upon the
amount of FY 2012 and FY 2013 awards
that remain undisbursed.
------------------------------------------------------------------------
2. Contact the CDFI Fund: Applicants that are prior Awardees are
advised to: (i) Comply with requirements specified in their executed
agreements and (ii) contact the CDFI Fund at least 10 business days
prior to this NOFA's Application 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: FA Applicants must
provide dollar-for-dollar non-Federal matching funds for every FA NACA
award dollar. The FY 2014 Continuing Resolution (CR) requires matching
funds for Category II/Core FA and HFFI-FA Applicants only. The CR has
waived the matching funds requirement for NACA Applicants and matching
funds are not required for TA Applicants. If matching funds are not
waived, they must be comparable in form and value to the FA award. This
means that FA Applicants must show they have matching funds in-hand or
firmly committed from non-Federal sources equal to the amount requested
from the CDFI Fund. Applicants cannot use matching funds from a prior
FA award under the NACA or CDFI Programs 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 or CDFI Programs, 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 CDFI 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 C.F.R. Sec. 1805.500 et seq. and matching funds guidance
materials on the CDFI Fund's Web site for further information.
2. Matching Funds Deadlines: If matching funds are required after
this NOFA is released, the CDFI Fund will give NACA Applicants 30 days
to submit the matching funds documentation. The Applicant must
demonstrate that it has eligible matching funds in-hand or firmly
committed equal to no less than 50 percent of the FA amount being
requested on or after January 1, 2012 and on or before the Application
deadline. The CDFI Fund reserves the right to rescind all or a portion
of an 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, 2015 (and
submitted to the CDFI Fund no later than January 31, 2015). The CDFI
Fund may grant an extension of such matching funds deadline for
specific FA Applicants if the CDFI Fund deems it appropriate.
3. Matching Funds Terms Defined; Required Documentation
[[Page 65445]]
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 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; (iv)
retained earnings audits or call reports
from regulating entity. 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. Matching Loan Requests: The CDFI Fund will match eligible loans
provided as non-federal matching funds with a standard loan product.
For purposes of this NOFA, the standard loan product will be a 13-year
loan with semi-annual interest-only payments due in years one through
ten, and fully amortizing payments due each year in years eleven
through thirteen. The interest rate will be fixed for the term of the
note at 1.95 percent, which is based on the U.S. Department of the
Treasury's 10-year Treasury note. In order for a loan to qualify to be
matched by the standard loan product, the loan must have a minimum of a
three-year term. Any loan presented as matching funds with less than a
three-year term will not qualify as eligible match.
5. Ineligible Matching Funds: If the CDFI Fund determines that any
portion of the Applicant's matching funds is ineligible, the CDFI Fund,
in its sole discretion, may permit the Applicant to offer alternative
matching funds as a substitute for the ineligible matching funds. In
such instances: (i) The Applicant must provide acceptable alternative
matching funds documentation within a written specified period of time,
no less than two business days, and (ii) the alternative matching funds
documentation will not increase the total amount of FA the Applicant
requested.
6. Retained Earnings: The Regulations allow an Applicant to use
retained earnings to serve as matching funds for a FA award. The CDFI
Fund will calculate retained earnings eligible to be used as matching
funds in an amount equal to: (i) The increase in retained earnings that
has occurred over the Applicant's most recent fiscal year, adjusted to
remove revenue and expenses derived from federal sources and matching
funds previously used for an award; or (ii) the annual average of such
increases that has occurred over the Applicant's three most recent
fiscal years, adjusted to remove revenue and expenses derived from
federal sources and matching funds previously used for an award.
7. 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. The CDFI Fund will calculate retained earnings
for Insured Credit Unions in an amount equal to: (i) The increase in
retained earnings that occurred over the Applicant's most recent fiscal
year, adjusted to remove revenue from federal sources and matching
funds previously used for an award; (ii) the annual average of such
increases that has occurred over the Applicant's three most recent
fiscal years, adjusted to remove revenue from federal sources and
matching funds previously used for an award; 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 and/or total loans outstanding by an amount equal to
the amount of retained earnings committed as matching funds. This
increase will be measured from June 30, 2014 and must occur by the end
of the Awardee's first performance period, as set forth in its
Assistance Agreement, and will be based on amounts reported in the
Applicant's National Credit Union Administration (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 and/or
loans by at least 25 percent of the requested FA award amount between
December 31, 2012, and December 31, 2013. The match will not be
considered in-hand until the Awardee has increased its member and/or
non-member shares or total loans outstanding within the time period
specified.
IV. Application and Submission Information
A. Application Submission: 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. If
Applicants submit multiple Applications, the CDFI Fund will only review
the last Application submitted; all other Applications will be
considered ineligible.
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 Universal Numbering System (DUNS) number. In addition,
each Application must include a valid and current Employer
Identification Number (EIN). An electronic Application that does not
include a DUNS number and an EIN is incomplete and may not be
[[Page 65446]]
transmitted to the CDFI Fund from Grants.gov. As a result, Applicants
without a DUNS number and EIN should allow sufficient time for the
Internal Revenue Service (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 so 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): Any entity applying for
federal grants or other forms of federal financial assistance through
Grants.gov, must be registered in SAM. Applicants must verify that
their registration is current and active in SAM. New Applicants must
properly register and wait for the account to be activated, which does
not occur simultaneously and may take weeks to complete for Applicants
that have an EIN. If an Applicant does not have an EIN, the Applicant
should allow several weeks for obtaining the information from the IRS
when requesting the EIN via phone, fax, mail or Internet. The CDFI Fund
will not consider Applicants that fail to properly register or activate
their account in SAM and as a result, are unable to submit their
Applications before the deadline. The CDFI Fund does not maintain the
SAM registration process, so 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 active. For information regarding SAM, please visit
https://www.sam.gov/portal/public/SAM/.
D. myCDFIFund Accounts: MyCDFIFund is the CDFI Fund's primary means
of communication with Applicants. Each Applicant is responsible for
ensuring its myCDFIFund account is up-to-date at all times. Each
Applicant 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 account may miss important
communication 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 CDFI Program
funding Application has been assigned the following control number:
1559-0021.
G. Application Deadlines:
1. Please see the following table for critical deadlines that are
relevant to the FY 2014 Funding Round.
Table 6--FY 2014 Funding Round Application Critical Dates
------------------------------------------------------------------------
Description Date due Time (ET)
------------------------------------------------------------------------
Last day to contact Program December 18, 2013. 5:00 p.m.
staff.
NACA Program Application for December 23, 2013. 11:59 p.m.
Assistance.
Certification Applications..... November 22, 2013. 5:00 p.m.
Certification of Material November 22, 2013. 5:00 p.m.
Events Form--only for
Applicants that have had a
Material Event.
------------------------------------------------------------------------
2. Late Delivery: The CDFI Fund will not accept an Application or
any portion of an Application delivered 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 2014 Application is a compilation of multiple
mandatory documents including: (1) a PDF fillable Applicant intake
form; (2) a Microsoft Excel Workbook; (3) a Microsoft Word Narrative
template; and (4) other mandatory attachments. (Applicants must use the
Microsoft Word Narrative template the CDFI Fund provides; alternative
templates/formats will not be scored.) Applicants should not submit
information that has not been specifically requested in this NOFA or
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
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
[[Page 65447]]
criteria categories and the scoring scale described in the Application.
An Applicant must receive a minimum aggregate score 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
sections FA applicants TA applicants
------------------------------------------------------------------------
Executive Summary........... Not Scored.......... Not Scored.
Purpose/Proposal............ 10 points........... 15 points.
Products.................... 10 points........... 10 points.
Policies.................... 10 points........... 10 points.
People...................... 10 points........... 15 points.
Partnerships................ 10 points........... 5 points.
Performance................. 40 points........... 30 points.
Projections................. 10 points........... 15 points.
-------------------------------------------
Total Point............. 100 points.......... 100 points.
------------------------------------------------------------------------
Applicants whose activities are part of a broader neighborhood
revitalization strategy and/or that target marginalized or isolated
populations will be scored more favorably in the section of the
Application pertaining to Partnerships.
(b) Evaluating Prior Award Performance: The CDFI Fund will deduct
points, in accordance with the following table, from Applicants who
have received prior assistance under any CDFI Fund program:
Table 10--Point Deductions
------------------------------------------------------------------------
Issues Descriptions
------------------------------------------------------------------------
Failure to Meet Agreement The CDFI Fund will deduct points from
Requirements. Applicants who have not met requirements
in previously executed agreements under
any CDFI Fund program including
compliance reports due during the
previous 24 months prior to the
Application deadline date.
Failure to Provide Timely The CDFI Fund will deduct points from
Loan Payments. Applicants who have failed to submit
timely loan payments to the CDFI Fund
within the 24 months prior to the
Application deadline (if applicable).
Incurred De-obligations...... The CDFI Fund will deduct points from
Applicants if funds were de-obligated
for FA awards issued in FY 2010, 2011 or
2012 and if the de-obligation occurred
within the 12 months prior to the
Application deadline. Point deductions
in this funding round for a de-
obligation of a prior award will not be
counted against future FA Applications.
Determination of The CDFI Fund will deduct points from
Discrimination. Applicants if proceedings have been
instituted against them in, by, or
before any court, governmental agency,
or administrative body and a final
determination within the last three
years indicates 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 Performance score;
then the Purpose score. TA Applicants 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 withdraw 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 notice 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 Awardee's
certification as a CDFI (to the extent that the Award is conditional
upon CDFI certification); adversely affects the CDFI Fund's evaluation
or scoring of an
[[Page 65448]]
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, it 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, it will provide information about the changes
through its Web site. The CDFI Fund's award decisions are final and
there is no right to appeal the decisions.
VI. Award Administration Information
A. Assistance Agreement: Each Applicant selected to receive an
award must enter into an Assistance Agreement with the CDFI Fund in
order to receive a disbursement(s). The Assistance Agreement will set
forth the award's terms and conditions, including but not 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 from 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, information
(including administrative error) comes to the CDFI Fund's attention
that adversely affects the Awardee's: (i) Eligibility for an award;
(ii) certification as a CDFI (to the extent that the Award is
conditional upon CDFI certification); or (iii) Application evaluation
as conducted by the CDFI Fund; 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.
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 pending the criteria described in the
following table:
Table 11--Requirements Prior Executing an Assistance Agreement
------------------------------------------------------------------------
Requirement Criteria
------------------------------------------------------------------------
Failure to Meet Reporting If an Awardee has received prior
Requirements. assistance under any CDFI Fund program
and is not current with the reporting
requirements in the previously executed
agreement(s), the CDFI Fund can delay
entering into an Assistance Agreement
until reporting requirements are met. If
such an Awardee is unable to meet the
requirement within the timeframe
specified, the CDFI Fund may terminate
and rescind the Assistance Agreement and
the award made under this NOFA. (Please
note that the automated systems the CDFI
Fund uses for receipt of reports
submitted electronically typically
acknowledges only a report's receipt;
such an acknowledgment does not warrant
that the report received was complete
and therefore met reporting
requirements.)
Failure to Maintain If an Awardee had applied for an award as
Certification. a Certified CDFI and the certified
status is an ongoing obligation of the
award but the Awardee has failed to
preserve and keep in full force and
effect its certification as a CDFI, the
CDFI Fund may terminate and rescind the
Assistance Agreement and the award made
under this NOFA.
Pending Resolution of If an Awardee has received prior
Noncompliance. assistance under any CDFI Fund program
and if: (i) It has submitted reports to
the CDFI Fund that demonstrate
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 Awardee
is in default of its agreement, the CDFI
Fund can delay entering into an
Assistance Agreement, pending full
resolution of the noncompliance issue to
the CDFI Fund's satisfaction. If the
Awardee is unable to satisfactorily
resolve the compliance issues, the CDFI
Fund may terminate and rescind the
Assistance Agreement and the award made
under this NOFA.
Default Status............... If, at any time prior to entering into an
Assistance Agreement, the CDFI Fund
determines that an Awardee is in default
of a previously executed agreement with
the CDFI Fund and the Awardee has been
provided written notification of such
determination, the CDFI Fund can delay
entering into an Assistance Agreement,
until the Awardee has cured the default
by taking actions the CDFI Fund has
specified within the specified
timeframe. If the Awardee is unable to
meet this requirement and the CDFI Fund
has not specified in writing that the
Awardee is otherwise eligible to receive
an award under this NOFA, the CDFI Fund
may terminate and rescind the Assistance
Agreement and the award made under this
NOFA.
Final Default and Sanctions.. If prior to entering into an Assistance
Agreement under this NOFA, the CDFI Fund
has: (i) Made a determination that an
Awardee was in final default of an
executed agreement with the CDFI Fund;
and (ii) provided written notification
of such final default 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 in which any new assistance
is prohibited, the CDFI Fund may
terminate and rescind the Assistance
Agreement and the award made under this
NOFA.
[[Page 65449]]
Compliance with Federal Anti- If prior to entering into an Assistance
Discrimination Laws. Agreement under this NOFA, the Awardee
receives a final determination, made
within the last three 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 may 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 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 CDFI 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--or 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 the 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 Contacts
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 three
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
[Fax number for all offices: 202-453-2466]
----------------------------------------------------------------------------------------------------------------
Telephone number (not toll
Type of question free) Email addresses
----------------------------------------------------------------------------------------------------------------
NACA Program........................... 202-653-0421, option 1.... [email protected].
Certification, Compliance Monitoring, 202-653-0423.............. [email protected].
and Evaluation.
MyCDFIFund--IT Help Desk............... 202-653-0300.............. [email protected].
----------------------------------------------------------------------------------------------------------------
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 contact
information in myCDFIFund to communicate with Applicants and Awardees.
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/what_we_do/ciis.asp.
[[Page 65450]]
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: October 23, 2013.
Donna J. Gambrell,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2013-25949 Filed 10-30-13; 8:45 am]
BILLING CODE 4810-70-P