[Federal Register Volume 79, Number 79 (Thursday, April 24, 2014)]
[Notices]
[Pages 22842-22849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09312]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Funding Opportunity Title: Notice of Funding Availability (NOFA)
inviting Applications for the FY 2014 Funding Round of the Bank
Enterprise Award (BEA) Program.
Announcement Type: Announcement of funding opportunity.
Catalog of Federal Domestic Assistance (CFDA) Number: 21.021.
Dates: Applications for the FY 2014 funding round of the BEA
Program must be received by June 2, 2014. Applications must meet all
eligibility and other requirements and deadlines, as applicable, set
forth in this NOFA. Applications received after June 2, 2014 will be
rejected.
Executive Summary: This NOFA is issued in connection with the FY
2014 funding round of the BEA Program. The BEA Program is administered
by the Community Development Financial Institutions (CDFI) Fund,
Department of the Treasury. The BEA Program encourages Insured
Depository Institutions to increase their levels of loans, investments,
services, technical assistance within Distressed Communities, and
financial assistance to CDFIs through equity investments, equity-like
loans, grants, stock purchases, loans, deposits, and other forms of
financial and technical assistance, during a specified period.
I. Funding Opportunity Description
A. Baseline Period and Assessment Period Dates
A BEA Program Award is based on an Applicant's increases in
Qualified Activities from the Baseline Period to the Assessment Period.
For the FY 2014 funding round, the Baseline Period is calendar year
2012 (January 1, 2012 through December 31, 2012), and the Assessment
Period is calendar year 2013 (January 1, 2013 through December 31,
2013). If Qualified Activities in a specific category result in a
decrease in activity from the Baseline Period to the Assessment Period,
there is no need to report the activity.
B. Program Regulations
The regulations governing the BEA Program can be found at 12 CFR
part 1806 (the Interim Rule). The Interim Rule provides guidance on
evaluation criteria and other requirements of the BEA Program. The CDFI
Fund encourages interested parties and Applicants to review the Interim
Rule. Detailed BEA Program requirements are also found in the
Application related to this NOFA. Each capitalized term in this NOFA is
more fully defined either in the Interim Rule or the Application.
C. Qualified Activities
Qualified Activities are defined in the Interim Rule to include
CDFI Related Activities, Distressed Community Financing Activities, and
Service Activities (12 CFR 1806.103). CDFI Related Activities (12 CFR
1806.103(q)) include Equity Investments, Equity-Like Loans, and CDFI
Support Activities. Distressed Community Financing Activities (12 CFR
1806.103(u)) include Affordable Housing Loans, Affordable Housing
Development Loans and related Project Investments; Education Loans;
Commercial Real Estate Loans and related Project Investments; Home
Improvement Loans; and Small Business Loans and related Project
Investments. Service Activities (12 CFR 1806.103(nn)) include Deposit
Liabilities, Financial Services, Community Services, Targeted Financial
Services, and Targeted Retail Savings/Investment Products.
When calculating BEA Program Award amounts, the CDFI Fund will only
consider the amount of Qualified Activity that has been fully
disbursed, or in the case of partially disbursed Qualified Activities,
will only consider the amount that an Applicant reasonably expects to
disburse for a Qualified Activity within 12 months from the end of the
Assessment Period. Subject to the requirements outlined in Section VII.
B.1. of this NOFA, in the case of Commercial Real Estate Loans and
related Project Investments, the total principal amount of the
transaction must be $10 million or less to be considered a Qualified
Activity. Notwithstanding the foregoing, the CDFI Fund, in its sole
discretion, may consider transactions with a total principal value of
over $10 million, subject to review.
Activities funded with prior BEA Program Award dollars, or funded
to satisfy requirements of a BEA Program Award Agreement from a prior
Award shall not constitute a Qualified Activity for the purposes of
calculating or receiving an Award.
D. Designation of Distressed Community
Each CDFI Partner that is the recipient of CDFI Support Activities
from an Applicant must designate a Distressed Community. CDFI Partners
that receive Equity Investments are not required to designate
Distressed Communities.
Applicants applying for a BEA Program Award for carrying out
Distressed Community Financing Activities or Service Activities must
verify that addresses of both Baseline and Assessment Period activities
are in Distressed Communities when completing their Application.
Please note that a Distressed Community as defined by the BEA
Program is not necessarily the same as
[[Page 22843]]
an Investment Area as defined by the CDFI Program or a Low-Income
Community as defined by the New Markets Tax Credit (NMTC) Program.
1. Definition of Distressed Community
A Distressed Community must meet certain minimum geographic area
and distress requirements, which are defined in the Interim Rule at 12
CFR 1806.103(t) and more fully described in 12 CFR 1806.200. Applicants
should use the CDFI Fund's Information Mapping System (CIMS3) to
determine whether a Baseline Period activity or Assessment Period
activity is located in a qualifying Distressed Community.
2. Designation of a Distressed Community by a CDFI Partner
A CDFI Partner (as appropriate) shall designate an area as a
Distressed Community by:
(a) Selecting Geographic Units which individually meet the minimum
area eligibility requirements; or
(b) selecting two or more Geographic Units which, in the aggregate,
meet the minimum area eligibility requirements set forth in paragraph
(1) of this section.
A CDFI Partner designates a Distressed Community by submitting a
map of the Distressed Community as described in the BEA Program
Application. CDFI Partners must use CIMS3 to designate Distressed
Communities. CIMS3 is accessed through myCDFIFund and contains step-by-
step instructions on how to create and save the aforementioned map of
the Distressed Community. myCDFIFund is an electronic interface that is
accessed through the CDFI Fund's Web site (www.cdfifund.gov).
Instructions for registering with myCDFIFund are available on the CDFI
Fund's Web site. If you have any questions or problems with
registering, please contact the CDFI Fund IT HelpDesk by telephone at
(202) 653-0300, or by email to [email protected].
3. Designation of a Distressed Community by a BEA Applicant
A BEA Applicant shall designate an area as a Distressed Community
by:
(a) Selecting the Geographic Unit where the BEA Qualified Activity
occurred, which individually meets the minimum area eligibility
requirements; or
(b) selecting the Geographic Unit where the BEA Qualified Activity
occurred, plus one or more Geographic Units directly contiguous to
where the BEA Qualified Activity occurred which, in the aggregate, meet
the minimum area eligibility requirements set forth in paragraph (1) of
this section.
II. Award Information
A. CDFI Applicants
No CDFI Applicant may receive a FY 2014 BEA Program Award if it
has: (1) An application pending for assistance under the FY 2014 round
of the Community Development Financial Institutions Program (CDFI
Program); (2) Been awarded assistance from the CDFI Fund under the CDFI
Program within the 12-month period prior to the date the CDFI Fund
selects the Applicant to receive a FY 2014 BEA Program Award; or (3)
Ever received assistance under the CDFI Program for the same activities
for which it is seeking a FY 2014 BEA Program Award. Please note that
Applicants may apply for both a CDFI Program Award and a BEA Program
Award in FY 2014; however, receiving a FY 2014 CDFI Program award
removes an Applicant from eligibility for a FY 2014 BEA Program Award.
B. Award Amounts
The CDFI Fund expects that it may award approximately $18 million
in FY 2014 BEA Program Awards, in appropriated funds under this NOFA.
The CDFI Fund reserves the right to award in excess of said funds under
this NOFA, provided that the appropriated funds are available. The CDFI
Fund reserves the right to impose a maximum Award amount; however under
no circumstances will an Award be higher than $2 million for any
Awardee. The CDFI Fund also reserves the right to impose a minimum
Award amount due to availability of funds. Further, 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 under this NOFA to other CDFI Fund
programs, or reallocate remaining funds to a future BEA Program funding
round, if the CDFI Fund determines that the number of Awards made under
this NOFA is fewer than projected.
C. Types of Awards
BEA Program Awards are made in the form of grants.
D. Award Agreement
Each Awardee under this NOFA must sign an Award Agreement prior to
disbursement by the CDFI Fund of the Award proceeds. The Award
Agreement contains the terms and conditions of the Award. For further
information, see Section VIII of this NOFA.
III. Eligibility
A. Eligible Applicants
Eligible Applicants for the BEA Program must be Insured Depository
Institutions, as defined in Section 3 of the Federal Deposit Insurance
Act 12 U.S.C. 1813(c)(2). An Applicant must be FDIC-insured as of
December 31, 2013 for the FY 2014 funding round to be eligible for
consideration for a BEA Program Award under this NOFA. The depository
institution holding company of an Insured Depository Institution may
not apply on behalf of an Insured Depository Institution. Applications
received from depository institution holding companies will be
disqualified. For the purposes of this NOFA, an eligible CDFI Applicant
is an Insured Depository Institution that was certified as a CDFI as of
the end of the applicable Assessment Period and maintains its status as
a certified CDFI at the time BEA Program Awards are announced under
this NOFA.
The CDFI Fund will conduct a debarment check and will not consider
an Application submitted by an Applicant, if the Applicant is
delinquent on any federal debt.
1. Prior Awardees
Applicants must be aware that success in a prior round of any of
the CDFI Fund's programs is not indicative of success under this NOFA.
For purposes of this section, the CDFI Fund will consider an Affiliate
to be any entity that Controls (as such term is defined in paragraph
(e) below) the Applicant, is Controlled by the Applicant or is under
common Control with the Applicant (as determined by the CDFI Fund) and
any entity otherwise identified as an affiliate by the Applicant in its
Application under this NOFA. Prior BEA Program Awardees and prior
Awardees of other CDFI Fund programs are eligible to apply under this
NOFA, except as follows:
(a) Pending resolution of noncompliance: If an Applicant that is a
prior Awardee or Allocatee under any CDFI Fund program: (i) Has
submitted reports to the CDFI Fund that demonstrate noncompliance with
a previous assistance agreement, award agreement, allocation agreement,
bond loan agreement, or agreement to guarantee and (ii) the CDFI Fund
has yet to make a final determination as to whether the entity is in
default of its previous agreement, the CDFI Fund will consider the
Applicant's Application under this NOFA pending full resolution, in the
sole determination of the CDFI Fund, of the noncompliance.
[[Page 22844]]
(b) Default status: The CDFI Fund will not consider an Application
submitted by an Applicant that is a prior CDFI Fund Awardee or
Allocatee under any CDFI Fund program if, as of the applicable
Application deadline of this NOFA, the CDFI Fund has made a final
determination that such Applicant is in default of a previously
executed assistance agreement, award agreement, allocation agreement,
bond loan agreement, or agreement to guarantee. Such entities will be
ineligible to apply for an Award pursuant to this NOFA so long as the
Applicant's prior award or allocation remains in default status or such
other time period as specified by the CDFI Fund in writing.
(c) Undisbursed funds: For the purposes of this section, the term
``undisbursed funds'' is defined as: (i) In the case of prior BEA
Program Award(s), any balance of Award funds equal to or greater than
five percent of the total prior BEA Program Award(s) that remains
undisbursed more than three years after the end of the calendar year in
which the CDFI Fund signed an Award Agreement with the Awardee, or (ii)
in the case of prior CDFI Program or other CDFI Fund program award(s),
any balance of award funds equal to or greater than five percent of the
total prior award(s) that remains undisbursed more than two years after
the end of the calendar year in which the CDFI Fund signed the
applicable assistance agreement with the Awardee.
The term ``undisbursed funds'' does not include (i) tax credit
allocation authority allocated through the New Markets Tax Credit
Program; (ii) any award funds for which the CDFI Fund received a full
and complete disbursement request from the awardee as of the
Application deadline of this NOFA; or (iii) any award funds for an
award that has been terminated, expired, rescinded, or deobligated by
the CDFI Fund.
The CDFI Fund will not consider an Application submitted by an
Applicant that is a prior CDFI Fund Awardee under any CDFI Fund program
if the Applicant has a balance of undisbursed funds under said prior
award(s), as of the Application deadline of this NOFA. Further, an
entity is not eligible to apply for an Award pursuant to this NOFA if
an Affiliate of the Applicant is a prior CDFI Fund awardee under any
CDFI Fund program, and has a balance of undisbursed funds under said
prior Award(s), as of the Application deadline of this NOFA. In the
case where an Affiliate of the Applicant is a prior CDFI Fund awardee
under any CDFI Fund program, and has a balance of undisbursed funds
under said prior award(s), as of the Application deadline of this NOFA,
the CDFI Fund will include the combined awards of the Applicant and
such Affiliates when calculating the amount of undisbursed funds.
(d) Control: For purposes of this NOFA, the term ``Control'' means:
(1) Ownership, control, or power to vote 25 percent or more of the
outstanding shares of any class of voting securities as defined in 12
CFR 1805.104(mm) of any legal entity, directly or indirectly or acting
through one or more other persons; (2) control in any manner over the
election of a majority of the directors, trustees, or general partners
(or individuals exercising similar functions) of any legal entity; or
(3) the power to exercise, directly or indirectly, a controlling
influence over the management, credit, or investment decisions, or
policies of any legal entity.
(e) Contact the CDFI Fund: Accordingly, Applicants that are prior
Awardees and/or Allocatees under any CDFI Fund program are advised to:
(i) Comply with requirements specified in an assistance agreement,
award agreement, allocation agreement, bond loan agreement, or
agreement to guarantee and (ii) contact the CDFI Fund to ensure that
all necessary actions are underway for the disbursement of any
outstanding balance of a prior award(s). An Applicant that is unsure
about the disbursement status of any prior award should contact the
CDFI Fund by sending an email to [email protected]. All
outstanding reports and compliance questions should be directed to the
Certification, Compliance Monitoring, and Evaluation helpdesk by email
at [email protected] or by telephone at (202) 653-0421. The CDFI Fund
will respond to Applicants' reporting, compliance, or disbursement
questions between the hours of 9:00 a.m. and 5:00 p.m. ET, starting on
the date of the publication of this NOFA through May 29, 2014. The CDFI
Fund will not respond to Applicants' reporting, compliance, or
disbursement telephone calls or email inquiries that are received after
5:00 p.m. ET on May 29, 2014 until after the Application deadline. The
CDFI Fund will respond to technical issues related to myCDFIFund
Accounts through 5:00 p.m. ET on June 4, 2014.
2. Cost Sharing and Matching Fund Requirements
Not applicable.
IV. Application and Submission Information
A. Application Content Requirements
Detailed Application content requirements are found in the
Application related to this NOFA. Applicants must submit all materials
described in and required by the Application by the applicable
deadlines. Additional information, including instructions relating to
the submission of the Application via Grants.gov, and the submission of
the FY 2014 BEA Signature Page and supporting documentation via
myCDFIFund, is set forth in further detail in the Application.
Please note that, pursuant to OMB guidance (68 FR 38402), each
Applicant must provide, as part of its Application submission, a Dun
and Bradstreet Data Universal Numbering System (DUNS) number and a
current Employer Identification Number (EIN). Applicants should allow
sufficient time for the IRS and/or Dun and Bradstreet to respond to
inquiries and/or requests for identification numbers. EINs and DUNS
numbers must match the information in the Applicant's System for Award
Management (SAM) account and in myCDFIFund. An active SAM account is
required to submit Applications via Grants.gov. Neither the SAM
account, EIN, nor the DUNS number can be that of the depository
institution holding company of the Applicant. An Application that does
not include an EIN or DUNS number is incomplete and cannot be
transmitted to the CDFI Fund. The preceding sentences do not limit the
CDFI Fund's ability to contact an Applicant for the purpose of
confirming or clarifying information regarding a DUNS number or EIN.
Once an Application is submitted, the Applicant will not be allowed to
change any element of the Application.
As set forth in further detail in the Application, any Qualified
Activity missing the required documentation will be disqualified.
Applicants will not be allowed to submit missing documentation for
Qualified Activities after the Application deadline.
B. Form of Application Submission
Applicants must submit Applications under this NOFA via Grants.gov
with certain required documentation via myCDFIFund according to the
instructions in the Application. Applications sent by mail, facsimile
or email will not be accepted. In order to submit an Application via
Grants.gov, Applicants must complete a multi-step registration process.
This includes registration at www.sam.gov. Applicants
[[Page 22845]]
are advised to make sure their SAM account is active and valid well in
advance of submitting an Application via Grants.gov and to allow ample
time to complete the entire registration and submission process prior
to the application deadline of June 2, 2014.
myCDFIFund Accounts: All Applicants and CDFI Partners must complete
a FY 2014 BEA Signature Page in myCDFIFund. All Applicants and CDFI
Partners must register User and Organization accounts in myCDFIFund,
the CDFI Fund's Internet-based interface, by the applicable Application
deadline. Failure to register and complete a FY 2014 BEA Signature Page
in myCDFIFund could result in the CDFI Fund being unable to accept the
Application. As myCDFIFund is the CDFI Fund's primary means of
communication with Applicants and awardees, institutions must make sure
that they update their contact information in their myCDFIFund
accounts. For more information on myCDFIFund, please see the
``Frequently Asked Questions'' link posted at https://www.cdfifund.gov/myCDFI/Help/Help.asp.
Qualified Activity documentation and other attachments as specified
in the applicable BEA Program Application must be submitted
electronically via the BEA Signature Page interface in myCDFIFund.
Detailed instructions regarding submission of Qualified Activity
documentation is provided in the Application instructions.
Applications, attachments, and Qualified Activity documentation
delivered by hard copy to the CDFI Fund's Washington, DC office will be
rejected.
C. Application Deadlines
The deadline for receipt of Applications via Grants.gov for the FY
2014 funding round is 11:59 p.m. ET on June 2, 2014. The deadline for
the submission of the FY 2014 BEA Signature Page via myCDFIFund for the
FY 2014 funding round is 5:00 p.m. ET on June 4, 2014. The deadline for
receipt of electronically submitted Qualified Activity documentation in
myCDFIFund is 5:00 p.m. ET, June 4, 2014. Applications and other
required documents and other attachments received after the deadline on
the applicable date will be rejected. Please note that the document
submission deadlines in this NOFA and the funding Application are
strictly enforced. The CDFI Fund will not grant exceptions or waivers
for late submissions.
D. Paperwork Reduction Act
Under the Paperwork Reduction Act (44 U.S.C. chapter 35), an agency
may not conduct or sponsor a collection of information, and an
individual is not required to respond to a collection of information,
unless it displays a valid OMB control number. Pursuant to the
Paperwork Reduction Act, the BEA Program funding Application has been
assigned the following control number: 1559-0005.
V. Intergovernmental Review
Not Applicable.
VI. Funding Restrictions
Not Applicable.
VII. Application Review Information
A. CDFI Related Activities
CDFI Related Activities include Equity Investments, Equity-Like
Loans, and CDFI Support Activities provided to eligible CDFI Partners.
In addition to regulatory requirements, this NOFA provides the
following:
1. Eligible CDFI Partner
CDFI Partner is defined as a CDFI that has been provided assistance
in the form of CDFI Related Activities by an Applicant (12 CFR
1806.103(p)). For the purposes of this NOFA, an eligible CDFI Partner
is an entity that has been certified as a CDFI as of the end of the
applicable Assessment Period and is Integrally Involved in a Distressed
Community.
2. Integrally Involved
Integrally Involved is defined as having provided: (i) At least 10
percent of financial transactions or dollars transacted (e.g., loans or
equity investments as defined in 12 CFR 1805.104(t)), or 10 percent of
Development Service activities (as defined in 12 CFR 1805.104(s)), in
one or more Distressed Communities identified by the Applicant or the
CDFI Partner, as applicable, in each of the three calendar years
preceding the date of the applicable NOFA,(ii) having transacted at
least 25 percent of financial transactions (e.g., loans or equity
investments) in one or more Distressed Communities in at least one of
the three calendar years preceding the date of the applicable NOFA, or
(iii) demonstrated that it has attained at least 10 percent of market
share for a particular product in one or more Distressed Communities
(such as at least 10 percent of home mortgages originated in one or
more Distressed Communities) in at least one of the three calendar
years preceding the date of the applicable NOFA.
3. Limitations on Eligible Qualified Activities Provided to Certain
CDFI Partners
A CDFI Applicant cannot receive credit for any financial assistance
or Qualified Activities provided to a CDFI Partner that is also an
FDIC-insured depository institution or depository institution holding
company.
4. Certificates of Deposit
Section 1806.103(r) of the Interim Rule states that any certificate
of deposit (CD) placed by an Applicant or its Subsidiary in a CDFI
Partner that is a bank, thrift, or credit union must be: (i) Uninsured
and committed for at least three years; or (ii) insured, committed for
a term of at least three years, and provided at an interest rate that
is materially below market rates, in the determination of the CDFI
Fund.
(a) For purposes of this NOFA, ``materially below market interest
rate'' is defined as an annual percentage rate that does not exceed 100
percent of yields on Treasury securities at constant maturity as
interpolated by Treasury from the daily yield curve and available on
the Treasury Web site at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml. For example, for a three-year CD,
Applicants should use the three-year rate U.S. Government securities,
Treasury Yield Curve Rate posted for that business day. The Treasury
updates the Web site daily at approximately 5:30 p.m. ET. CDs placed
prior to that time may use the rate posted for the previous business
day. The annual percentage rate on a CD should be compounded quarterly,
semi-annually, or annually. If a variable interest rate is used, the CD
must also have an interest rate that is materially below the market
interest rate over the life of the CD, in the determination of the CDFI
Fund. (b) For purposes of this NOFA, a deposit placed by an Applicant
directly with a CDFI Partner that participates in a deposit network or
service may be treated as eligible under this NOFA if it otherwise
meets the criteria for deposits in 1806.103(r) and the CDFI Partner
retains the full amount of the initial deposit or an amount equivalent
to the full amount of the initial deposit through a deposit network
exchange transaction.
5. Equity Investment
An Equity Investment means financial assistance in the form of a
grant, a stock purchase, a purchase of a partnership interest, a
purchase of a limited liability
[[Page 22846]]
company membership interest, or any other investment deemed to be an
Equity Investment by the CDFI Fund provided by an Applicant or its
Subsidiary to a CDFI Partner that meets the criteria set forth in the
applicable NOFA.
6. Equity-Like Loan
An Equity-Like Loan is a loan provided by an Applicant or its
Subsidiary to a CDFI Partner, and made on such terms that it has
characteristics of an Equity Investment, as such characteristics may be
specified by the CDFI Fund (12 CFR 1806.103(z)). For purposes of this
NOFA, an Equity-Like Loan must meet the following characteristics:
(a) At the end of the initial term, the loan must have a definite
rolling maturity date that is automatically extended on an annual basis
if the CDFI borrower continues to be financially sound and carry out a
community development mission;
(b) Periodic payments of interest and/or principal may only be made
out of the CDFI borrower's available cash flow after satisfying all
other obligations;
(c) Failure to pay principal or interest (except at maturity) will
not automatically result in a default of the loan agreement; and
(d) The loan must be subordinated to all other debt except for
other Equity-Like Loans. Notwithstanding the foregoing, the CDFI Fund
reserves the right to determine, in its sole discretion and on a case-
by-case basis, whether an instrument meets the above-stated
characteristics of an Equity-Like Loan.
7. CDFI Support Activity
A CDFI Support Activity is defined as assistance provided by an
Applicant or its Subsidiary to a CDFI Partner, in the form of a loan,
technical assistance, or deposits.
8. CDFI Program Matching Funds
Equity Investments, Equity-Like Loans, and CDFI Support Activities
(except technical assistance) provided by a BEA Applicant to a CDFI and
used by the CDFI for matching funds under the CDFI Program are eligible
as a Qualified Activity under the CDFI Related Activity category.
B. Distressed Community Financing Activities and Service Activities
Distressed Community Financing Activities include Affordable
Housing Loans, Affordable Housing Development Loans and related Project
Investments, Education Loans, Commercial Real Estate Loans and related
Project Investments, Home Improvement Loans, and Small Business Loans
and related Project Investments (12 CFR 1806.103(u)). In addition to
the regulatory requirements, this NOFA provides the following
additional requirements:
1. Commercial Real Estate Loans and Related Project Investments
For purposes of this NOFA, eligible Commercial Real Estate Loans
(12 CFR 1806.103(l)) and related Project Investments (12 CFR
1806.103(ll)) are generally limited to transactions with a total
principal value of $10 million or less. Notwithstanding the foregoing,
the CDFI Fund, in its sole discretion, may consider transactions with a
total principal value of over $10 million, subject to review. For such
transactions, Applicants must provide a separate narrative, or other
information, to demonstrate that the proposed project offers, or
significantly enhances the quality of, a facility or service not
currently provided to the Distressed Community.
2. Reporting Certain Financial Services
The CDFI Fund will value the administrative cost of providing
certain Financial Services using the following per unit values:
(a) $100.00 per account for Targeted Financial Services;
(b) $50.00 per account for checking and savings accounts that do
not meet the definition of Targeted Financial Services;
(c) $5.00 per check cashing transaction;
(d) $25,000 per new ATM installed at a location in a Distressed
Community;
(e) $2,500 per ATM operated at a location in a Distressed
Community;
(f) $250,000 per new retail bank branch office opened in a
Distressed Community; and
(g) In the case of Applicants engaging in Financial Services
activities not described above, the CDFI Fund will determine the unit
value of such services.
(i) When reporting the opening of a new retail bank branch office,
the Applicant must certify that it has not operated a retail branch in
the same Distressed Community in which the new retail branch office is
being opened in the past three years, and that such new branch will
remain in operation for at least the next five years.
(ii) Financial Service Activities must be provided by the Applicant
to Low- and Moderate-Income Residents. An Applicant may determine the
number of Low- and Moderate-Income individuals who are recipients of
Financial Services by either: (i) Collecting income data on its
Financial Services customers, or (ii) certifying that the Applicant
reasonably believes that such customers are Low- and Moderate-Income
individuals and providing a brief analytical narrative with information
describing how the Applicant made this determination. Citations must be
provided for external sources. In addition, if external sources are
referenced in the narrative, the Applicant must explain how it reached
the conclusion that the cited references are directly related to the
Low-and Moderate-Income residents to whom it is claiming to have
provided the Financial Services.
(iii) When reporting changes in the dollar amount of deposit
accounts, only calculate the net change in the total dollar amount of
eligible Deposit Liabilities between the Baseline Period and the
Assessment Period. Do not report each individual deposit. If the net
change between the Baseline Period and Assessment Period is a negative
dollar amount, then a negative dollar amount may be recorded for
Deposit Liabilities only. Instructions for determining the net change
is available in the Supplemental Guidance to the FY 2014 BEA Program
Application.
C. Priority Factors
Priority Factors are the numeric values assigned to individual
types of activity within: (i) The Distressed Community Financing, and
(ii) Services categories of Qualified Activities. For the purposes of
this NOFA, Priority Factors will be based on the Applicant's asset size
as of the end of the Assessment Period (December 31, 2013) as reported
by the Applicant in the Application. Asset size classes (i.e., small
institutions, intermediate-small institutions, and large institutions)
will correspond to the Community Reinvestment Act (CRA) asset size
classes set by the three Federal bank regulatory agencies and that were
effective as of the end of the Assessment Period. The Priority Factor
works by multiplying the change in a Qualified Activity by the assigned
Priority Factor to achieve a ``weighted value.'' This weighted value of
the change would be multiplied by the applicable Award percentage to
yield the Award amount for that particular activity. For purposes of
this NOFA, the CDFI Fund is establishing Priority Factors based on
Applicant asset size to be applied to all activity within the
Distressed Community Financing Activities and Service Activities
categories only, as follows:
[[Page 22847]]
------------------------------------------------------------------------
Priority
CRA Asset size classification factor
------------------------------------------------------------------------
Small institutions (assets of less than $300 million as of 12/ 5.0
31/2013)....................................................
Intermediate--small institutions (assets of at least $300 3.0
million but less than $1.202 billion as of 12/31/2013)......
Large institutions (assets of $1.202 billion or greater as of 1.0
12/31/2013).................................................
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D. Certain Limitations on Qualified Activities:
1. Low-Income Housing Tax Credits
Financial assistance provided by an Applicant for which the
Applicant receives benefits through Low-Income Housing Tax Credits,
authorized pursuant to Section 42 of the Internal Revenue Code, as
amended (26 U.S.C. 42), shall not constitute an Equity Investment,
Project Investment, or other Qualified Activity, for the purposes of
calculating or receiving a Bank Enterprise Award.
2. New Markets Tax Credits
Financial assistance provided by an Applicant for which the
Applicant receives benefits as an investor in a Community Development
Entity that has received an allocation of New Markets Tax Credits,
authorized pursuant to Section 45D of the Internal Revenue Code, as
amended (26 U.S.C. 45D), shall not constitute an Equity Investment,
Project Investment, or other Qualified Activity, for the purposes of
calculating or receiving a Bank Enterprise Award. Leverage loans used
in New Markets Tax Credit structured transactions that meet the
requirements outlined in the applicable NOFA are considered Distressed
Community Financing Activities.
3. Loan Renewals and Refinances
Financial assistance provided by an Applicant shall not constitute
a Qualified Activity, as defined in this part, for the purposes of
calculating or receiving a Bank Enterprise Award if such financial
assistance consists of a loan to a borrower that has matured and is
then renewed by the Applicant, or consists of a loan to a borrower that
is retired or restructured using the proceeds of a new commitment by
the Applicant. Payoff of a separate third party obligation will only be
considered a Qualified Activity if the payoff of a transaction is part
of the sale of property or business to an unaffiliated party to the
borrower. Applicants should include a narrative statement to describe
any such transactions. Otherwise the transaction will be disqualified.
4. Prior BEA Program Awards
Qualified Activities funded with prior funding round BEA Program
Award dollars or funded to satisfy requirements of the BEA Program
Award Agreement shall not constitute a Qualified Activity for the
purposes of calculating or receiving a BEA Program Award.
5. Prior CDFI Program Awards
No CDFI Applicant may receive a BEA Program Award for activities
funded by a CDFI Program Award.
E. Award Percentages, Award Amounts, Selection Process
The Interim Rule describes the process for selecting Applicants to
receive a BEA Program Award and determining Award amounts. Applicants
will calculate and request an estimated Award amount in accordance with
a multi-step procedure that is outlined in the Interim Rule (at 12 CFR
1806.202). As outlined in the Interim Rule at 12 CFR 1806.203, the CDFI
Fund will determine actual Award amounts based on the availability of
funds, increases in Qualified Activities from the Baseline Period to
the Assessment Period, and each Applicant's priority ranking. In
calculating the increase in Qualified Activities, the CDFI Fund will
determine the eligibility of each transaction for which an Applicant
has applied for a Bank Enterprise Award. In some cases, the actual
Award amount calculated by the CDFI Fund may not be the same as the
estimated Award amount requested by the Applicant.
The CDFI Fund may take into consideration the views of the
appropriate Federal bank regulatory agency, as defined in Section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813(q)). The CDFI Fund
will not approve a BEA Program Award to an Insured Depository
Institution Applicant if at the time of application submission and
during the application review process the appropriate Federal bank
regulatory agency indicates a composite rating of ``5'' during its most
recent examination, performed in accordance with the Uniform Financial
Institutions Rating System . Furthermore, the CDFI Fund will not
approve a BEA Program Award for the following reasons if at the time of
application: (i) The Applicant and/or its Affiliates most recent
overall CRA assessment rating is below ``Satisfactory'', (ii) the
Applicant received a going concern opinion on its most recent audit, or
(iii) the Applicant received a Prompt Corrective Action directive from
its regulator. Applicants and Federal bank regulators may be contacted
by the CDFI Fund to provide additional information related to Federal
bank regulatory or CRA information. The CDFI Fund may choose not to
approve a BEA Program Award to an Insured Depository Institution
Applicant if this information indicates that the Applicant is unable to
responsibly manage, re-invest, and/or report on a BEA Program Award
during the performance period.
In the CDFI Related Activities category (except for an Equity
Investment or Equity-Like Loan), for CDFI Applicants, such estimated
Award amount will be equal to 18 percent of the increase in Qualified
Activity for the category. If an Applicant is not a CDFI Applicant,
such estimated Award amount will be equal to 6 percent of the increase
in Qualified Activity for the category. Notwithstanding the foregoing,
for a CDFI Applicant and for an Applicant that is not a CDFI Applicant,
the Award percentage applicable to an Equity Investment, Equity-Like
Loan, or Grant in a CDFI shall be 15 percent of the increase in
Qualified Activity for the category. For the Distressed Community
Financing Activities and Service Activities categories, for a CDFI
Applicant, such estimated Award amount will be equal to 9 percent of
the weighted value of the increase in Qualified Activity for the
category. If an Applicant is not a CDFI Applicant, such estimated Award
amount will be equal to 3 percent of the weighted value of the increase
in Qualified Activity for the category.
If the amount of funds available during the funding round is
insufficient for all estimated Award amounts, Awardees will be selected
based on the process described in the Interim Rule at 12 CFR
1806.203(b). This process gives funding priority to Applicants that
undertake activities in the following order: (i) CDFI Related
Activities, (ii) Distressed Community Financing Activities, and (iii)
Service Activities, as described in the Interim Rule at 12 CFR
1806.203(c) .
Within each category, CDFI Applicants will be ranked first
according to the ratio of the actual Award amount calculated by the
CDFI Fund for the category to the total assets of the Applicant,
followed by Applicants that are not CDFI Applicants according to the
ratio of the actual Award amount calculated by the CDFI Fund for the
category to the total assets of the Applicant.
The CDFI Fund, in its sole discretion: (i) May adjust the estimated
Award amount that an Applicant may receive,
[[Page 22848]]
(ii) may establish a maximum amount that may be awarded to an
Applicant, and (iii) reserves the right to limit the amount of an Award
to any Applicant if the CDFI Fund deems it appropriate.
For purposes of calculating Award disbursement amounts, the CDFI
Fund will treat Qualified Activities with a total principal amount less
than or equal to $250,000 as fully disbursed. For all other Qualified
Activities, Awardees will have 12 months from the end of the Assessment
Period to make disbursements and 18 months from the end of the
Assessment Period to submit to the CDFI Fund disbursement requests for
the corresponding portion of their Awards, after which the CDFI Fund
will rescind and deobligate any outstanding Award balance and said
outstanding Award balance will no longer be available to the Awardee.
The CDFI Fund reserves the right to contact the Applicant to
confirm or clarify information. If contacted, the Applicant must
respond within the CDFI Fund's time parameters or run the risk of being
rejected.
The CDFI Fund reserves the right to change its eligibility and
evaluation criteria and procedures. If those changes materially affect
the CDFI Fund's Award decisions, the CDFI Fund will provide information
regarding the changes through the CDFI Fund's Web site.
There is no right to appeal the CDFI Fund's Award decisions. The
CDFI Fund's Award decisions are final. The CDFI Fund will not discuss
the specifics of an Applicant's BEA Program Application or provide
reasons why an Applicant did not receive a BEA Program Award. The CDFI
Fund will only respond to general questions regarding the FY 2014
Application and Award decision process until 30 days after the award
announcement date.
VIII. Award Administration Information
A. Notice of Award and Award Agreement
The CDFI Fund will signify its selection of an Applicant as an
Awardee by delivering a Notice of Award and Award Agreement to the
Applicant. The Notice of Award and Award Agreement will contain the
general terms and conditions underlying the CDFI Fund's provision of an
Award. The Awardee will receive a copy of the Notice of Award and Award
Agreement. The Awardee must execute the Award Agreement and return it
to the CDFI Fund. Each Awardee must also ensure that complete and
accurate banking information is reflected in its System for Award
Management (SAM) account on www.sam.gov.
The CDFI Fund reserves the right, in its sole discretion, to
rescind the Award, the Notice of Award, and the Award Agreement if the
Awardee fails to return the Award Agreement signed by the Authorized
Representative of the Awardee or any other requested documentation by
the deadline set by the CDFI Fund.
By executing an Award Agreement, the Awardee agrees that, if the
CDFI Fund becomes aware of any information (including administrative
errors) prior to the Effective Date of the Award Agreement that either
adversely affects the Awardee's eligibility for an Award, or adversely
affects the CDFI Fund's evaluation of the Awardee's Application, or
indicates fraud or mismanagement on the part of the Awardee, the CDFI
Fund may, in its discretion and without advance notice to the Awardee,
terminate the Award Agreement or take other actions as it deems
appropriate.
1. Failure to meet reporting requirements: If an Applicant, or its
Affiliate, is a prior CDFI Fund Awardee or Allocatee under any CDFI
Fund program and is not current on the reporting requirements set forth
in the previously executed assistance, award, allocation, bond loan
agreement(s), or agreement to guaranty. as of the date of the Notice of
Award, the CDFI Fund reserves the right, in its sole discretion, to
delay entering into an Award Agreement and/or to delay making a
disbursement of Award proceeds, until said prior Awardee or Allocatee
is current on the reporting requirements in the previously executed
assistance, award, allocation, bond loan agreement(s), or agreement to
guaranty. Please note that automated systems employed by the CDFI Fund
for receipt of reports submitted electronically typically acknowledge
only a report's receipt; such acknowledgment does not warrant that the
report received was complete and therefore met reporting requirements.
If said prior Awardee or Allocatee is unable to meet this requirement
within the timeframe set by the CDFI Fund, the CDFI Fund reserves the
right, in its sole discretion, to terminate and rescind the Notice of
Award and the Award made under this NOFA.
2. Pending Resolution of Noncompliance
If, at any time prior to entering into an Award Agreement under
this NOFA, an Applicant that is a prior CDFI Fund Awardee or Allocatee
under any CDFI Fund program (i) has submitted reports to the CDFI Fund
that demonstrate noncompliance with a previous assistance, award, or
allocation agreement, but (ii) the CDFI Fund has yet to make a final
determination regarding whether or not the entity is in default of its
previous assistance, award, allocation, bond loan agreement, or
agreement to guaranty, the CDFI Fund reserves the right, in its sole
discretion, to delay entering into an Award Agreement and/or to delay
making a disbursement of Award proceeds, pending full resolution, in
the sole determination of the CDFI Fund, of the noncompliance. If said
prior Awardee or Allocatee is unable to meet this requirement, in the
sole determination of the CDFI Fund, the CDFI Fund reserves the right,
in its sole discretion, to terminate and rescind the Notice of Award
and the Award made under this NOFA.
3. Default status: If prior to entering into an Award Agreement
under this NOFA, (i) the CDFI Fund has made a final determination that
an Applicant that is a prior CDFI Fund Awardee or Allocatee under any
CDFI Fund program whose award or allocation terminated in default of
such prior agreement; (ii) the CDFI Fund has provided written
notification of such determination to such organization; and (iii) the
anticipated date for entering into the Award Agreement under this NOFA
is within a period of time specified in such notification throughout
which any new award, allocation, assistance, bond loan agreement(s), or
agreement to guaranty is prohibited, the CDFI Fund reserves the right,
in its sole discretion, to terminate and rescind the Award Agreement
and the award made under this NOFA.
B. Award Agreement
After the CDFI Fund selects an Awardee, unless an exception
detailed in this NOFA applies, the CDFI Fund and the Awardee will enter
into an Award Agreement. The Award Agreement will set forth certain
required terms and conditions of the Award, which will include, but not
be limited to: (i) The amount of the Award, (ii) the type of the Award,
(iii) the approved uses of the Award, (iv) performance goals and
measures, and (v) reporting requirements for all Awardees. Award
Agreements under this NOFA generally will have one-year performance
periods. The Award Agreement shall provide that an Awardee shall: (i)
Carry out its Qualified Activities in accordance with applicable law,
the approved Application, and all other applicable
[[Page 22849]]
requirements; (ii) not receive any monies until the CDFI Fund has
determined that the Awardee has fulfilled all applicable requirements;
and (iii) use an amount equivalent to the BEA Award amount for BEA
Qualified Activities.
C. Administrative and National Policy Requirements
Not applicable.
D. Reporting and Accounting
1. The CDFI Fund will require each Awardee that receives an Award
over $50,000 through this NOFA to account for the use of the Award.
This will require Awardees to establish administrative and accounting
controls, subject to applicable OMB Circulars. The CDFI Fund will
collect information from each such Awardee on its use of the Award at
least once following the Award and more often if deemed appropriate by
the CDFI Fund in its sole discretion. The CDFI Fund will provide
guidance to Awardees outlining the format and content of the
information to be provided, outlining and describing how the funds were
used.
IX. Agency Contacts
The CDFI Fund will respond to questions and provide support
concerning this NOFA and the funding Application between the hours of
9:00 a.m. and 5:00 p.m. ET, starting on the date of the publication of
this NOFA through May 29, 2014 for the FY 2014 funding round. The CDFI
Fund will not respond to Applicants' reporting, compliance, or
disbursement telephone calls or email inquiries that are received after
5:00 p.m. ET on May 29, 2014 until after the Application deadline. The
CDFI Fund will respond to technical issues related to myCDFIFund
accounts through 5:00 p.m. ET on June 4, 2014.
Applications and other information regarding the CDFI Fund and its
programs may be downloaded and printed from the CDFI Fund's Web site at
www.cdfifund.gov. The CDFI Fund will post responses to questions of
general applicability regarding the BEA Program on its Web site.
A. Information Technology Support
Technical support can be obtained by calling (202) 653-0300 or by
email to [email protected]. People who have visual or mobility
impairments that prevent them from creating a Distressed Community map
using the CDFI Fund's Web site should call (202) 653-0300 for
assistance. These are not toll free numbers.
B. Application Support
If you have any questions about the programmatic or administrative
requirements of this NOFA, contact the CDFI Fund's BEA Program office
by email at [email protected], by telephone at (202) 653-0421, by
facsimile at (202) 508-0089, or by mail at CDFI Fund, 1500 Pennsylvania
Avenue NW., Washington, DC 20220. The number provided is not toll free.
C. Certification, Compliance Monitoring and Evaluation (CCME) Support
If you have any questions regarding the certification and
compliance requirements of this NOFA, including questions regarding
performance on prior Awards, contact the CDFI Fund's CCME Unit by email
at [email protected] or by telephone at (202) 653-0423. The number
provided is not toll free.
D. Communication With the CDFI Fund
The CDFI Fund will use its myCDFIFund Internet interface to
communicate with Applicants and Awardees under this NOFA. Awardees must
use myCDFIFund to submit required reports. The CDFI Fund will notify
Awardees by email using the addresses maintained in each Awardee's
myCDFIFund account. Therefore, an Awardee and any Subsidiaries,
signatories, and Affiliates must maintain accurate contact information
(including contact person and authorized representative, email
addresses, fax numbers, phone numbers, and office addresses) in their
myCDFIFund account(s). For more information about myCDFIFund, please
see the Help documents posted at https://www.cdfifund.gov/myCDFI/Help/Help.asp.
Authority: 12 U.S.C. 1834a, 4703, 4703 note, 4713; 12 CFR part
1806.
Dated: April 17, 2014.
Dennis Nolan,
Deputy Director, Community Development Financial Institutions Fund.
[FR Doc. 2014-09312 Filed 4-23-14; 8:45 am]
BILLING CODE 4810-70-P