FY 2017 CDFI Program NOFA.pdf

BILLING CODE 4810-70-P

DEPARTMENT OF THE TREASURY

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND

FUNDING OPPORTUNITY TITLE: Notice of Funds Availability (NOFA) inviting

Applications for Financial Assistance (FA) awards or Technical Assistance (TA) grants under the Community Development Financial Institutions Program (CDFI Program) fiscal year (FY)

2017 Funding Round.

ANNOUNCEMENT TYPE: Announcement of funding opportunity.

FUNDING OPPORTUNITY NUMBER: CDFI-2017-FATA

CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER: 21.020

KEY DATES:

Table 1. FY 2017 CDFI Program Funding Round Critical Deadlines for Applicants

Description Deadline Time (Eastern Daylight

Time- EDT)

Submission Method

CDFI Certification Applications

March 24, 2017 11:59 p.m.

EDT

Electronically via Award Management Information System

(AMIS)

SF424 (Application for Federal Assistance)

March 24, 2017 11:59 p.m.

EDT

Electronically via Grants.gov

Last day to contact CDFI Program staff

April 26, 2017 5:00 p.m.

EDT

Service Request via Award Management Information System

(AMIS)

Or

CDFI Fund Helpdesk: 202-653- 0421 or cdfihelp@cdfi.treas.gov

CDFI Program Application for Financial Assistance (FA) or Technical Assistance (TA)

April 28, 2017 11:59 p.m.

EDT

Electronically via Awards Management Information System

(AMIS)

EXECUTIVE SUMMARY: Through the CDFI Program, the CDFI Fund provides (i) FA awards of up to $2 million to Certified Community Development Financial Institutions (CDFIs) to build their financial capacity to lend to their Target Markets, and (ii) TA grants of up to $125,000 to build Certified, Certifiable, and Emerging CDFIs’ organizational capacity to serve their Target

Markets. All awards provided through this NOFA are subject to funding availability.

I. PROGRAM DESCRIPTION:

A. History: The CDFI Fund was established by the Riegle Community Development Banking and Financial Institutions Act of 1994 to promote economic revitalization and community development through investment in and assistance to CDFIs. Since its creation in 1994, the CDFI

Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program (CDFI

Program), the Native American CDFI Assistance Program (NACA Program), the Bank

Enterprise Award Program (BEA Program), the Capital Magnet Fund, and the Financial

Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated more than

$50.5 billion in tax credit allocation authority through the New Markets Tax Credit Program

(NMTC Program) and has obligated $1.1 billion in bond guarantees to Eligible CDFIs through the CDFI Bond Guarantee Program.

B. Priorities: Through the CDFI Program’s FA awards and TA grants, the CDFI Fund invests in and builds the capacity of for-profit and non-profit community based lending organizations known as Community Development Financial Institutions, or CDFIs. These organizations, Certified as CDFIs by the CDFI Fund, serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services.

C. Authorizing Statutes and Regulations: The CDFI Program is authorized by the Riegle

Community Development Banking and Financial Institutions Act of 1994 (Pub. L. No. 103-325, 12 U.S.C. 4701 et seq.). The regulations governing the CDFI Program are found at 12 C.F.R.

Parts 1805 and 1815 (the Regulations) and set forth evaluation criteria and other program requirements. The CDFI Fund encourages Applicants to review the Regulations; this NOFA; the

Application; and the Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards (2 C.F.R. 200; 78 Federal Register 78590) (Uniform

Administrative Requirements) for a complete understanding of the program. Capitalized terms in this NOFA are defined in the authorizing statute, the Regulations, this NOFA, the Application, or the Uniform Administrative Requirements. Details regarding Application content requirements are found in the Application and related materials.

D. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal

Awards (2 C.F.R. 200): The Uniform Administrative Requirements codify financial, administrative, procurement, and program management standards that Federal award agencies must follow. When evaluating award applications, awarding agencies must evaluate the risks to the program posed by each applicant, and each applicant’s merits and eligibility. These requirements are designed to ensure that applicants for Federal assistance receive a fair and consistent review prior to an award decision. This review will assess items such as the

Applicant’s financial stability, quality of management systems, the soundness of its business plan, history of performance, ability to achieve measurable impacts through its products and services, and audit findings. In addition, the Uniform Administrative Requirements include guidance on audit requirements and other award compliance requirements for award Recipients.

E. Funding limitations: The CDFI Fund reserves the right to fund, in whole or in part, any, all, or none of the Applications submitted in response to this NOFA.

II. FEDERAL AWARD INFORMATION

A. Funding Availability:

1. FY 2017 Funding Round: The CDFI Fund expects to award, through this NOFA, approximately $175 million as indicated in the following table:

Table 2. FY 2017 Funding Round Anticipated Category Amounts Funding

Categories (See definition in Table 7)

Estimated Total

Amount to be Awarded (millions)

Award Amount Estimated Number of Awards for FY

Estimate Average Amount

Awarded in

FY 2017

Average Amount

Awarded in

FY 2016

Minimum Maximum

FA:

Category I/ Small and/or Emerging

CDFI

Assistance

(SECA)

$19 $125,000 $700,000 43 $442,000 $487,000

FA:

Category II/Core

$130 $500,000 $2,000,000 174 $707,000 $1,382,000

TA $4 $10,000 $125,000 35 $114,000 $118,000

Healthy Food Financing Initiative - Financial Assistance

(HFFI-

FA)*

$22 $500,000 $5,000,000 10 $2,200,000 $2,400,000

Total $175 262

* HFFI-FA appropriation will be allocated in one competitive round between the NACA and

CDFI Program NOFAs.

The CDFI Fund reserves the right to award more or less than the amounts cited above in each category, based upon available funding and other factors, as appropriate.

2. Funding Availability for the FY 2017 Funding Round: Funds for the FY 2017 Funding Round are subject to change based on passage of a final FY 2017 budget; if Congress does not appropriate funds for the CDFI Program there will not be a FY 2017 Funding Round. If funds are appropriated, the amount of such funds may be greater or less than the amounts set forth above.

The CDFI Fund reserves the right to contact applicants to seek additional information in the event that that final FY 2017 appropriations for the CDFI Program change any of the requirements of this NOFA. As of the date of this NOFA, the CDFI Fund is operating under a continuing funding resolution as enacted by the Further Continuing and Security Assistance

Appropriations Act of 2017 (P.L.114-254).

3. Anticipated Start Date and Period of Performance: The CDFI Fund anticipates the period of performance for the FY 2017 Funding Round will begin in late September 2017. Specifically, the period of performance for TA grants for certified CDFIs begins with the date of the notice of the award and includes an award Recipient’s two full consecutive fiscal years after the date of the notice of the award, during which the Recipient must meet the performance goals set forth in the

Assistance Agreement. The period of performance for TA grants for Certifiable CDFIs or

Emerging CDFIs begins with the date of the notice of the award and includes an award

Recipient’s three full consecutive fiscal years after the date of the notice of the award, during which the Recipient must meet the performance goals set forth in the Assistance Agreement. The period of performance for FA awards begins with the date of the notice of the award and includes an award Recipient’s three full consecutive fiscal years after the date of the notice of the award, during which time the Recipient must meet its performance goals.

B. Types of Awards: Through the CDFI Program, the CDFI Fund provides two types of awards:

Financial Assistance (FA) and Technical Assistance (TA) awards. An Applicant may submit an

Application for a TA grant or an FA award, but not both.

1. FA Awards: FA awards can be in the form of loans, grants, Equity Investments, deposits and credit union shares. The form of the FA award is based on the form of the matching funds that the Applicant includes in its Application, unless Congress waives the matching funds requirement. Matching funds are required for FA awards, must be from non-Federal sources, and cannot have been used as matching funds for any other Federal 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. Healthy Food Financing Initiative - Financial Assistance (HFFI-FA) Awards: HFFI-FA awards will be provided as a supplement to FA awards; therefore, only those Applicants that have been selected to receive an FA award through the CDFI Program FY 2017 Funding Round will be eligible to receive an HFFI-FA award. HFFI-FA awards can be in the form of loans, grants, Equity Investments, deposits and credit union shares. The form of the HFFI-FA award is based on the form of the matching funds that the Applicant includes in its Application, unless

Congress waives the matching funds requirement. Matching funds are required for HFFI-FA awards, must be from non-Federal sources, and cannot have been used as matching funds for any other Federal award. The CDFI Fund reserves the right, in its sole discretion, to provide an

HFFI-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.

3. TA Grants: TA is provided in the form of grants. The CDFI Fund reserves the right, in its sole discretion, to provide a TA grant in an amount 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.

C. Eligible Activities:

1. FA Awards: FA and HFFI-FA award funds can be expended for activities serving Commercial

Real Estate, Small Business, Microenterprise, Community Facilities, Consumer Financial

Products, Consumer Financial Services, Commercial Financial Services, Affordable Housing, Intermediary Lending to Non-Profits and CDFIs, and other lines of business as deemed appropriate by the CDFI Fund in the following five categories: (i) Financial Products; (ii)

Financial Services; (iii) Loan Loss Reserves; (iv) Development Services; and (v) Capital

Reserves. FA awards can only be used for direct costs associated with an eligible activity; no indirect expenses are allowed. Up to 15 percent of the FA award can be used for Direct

Administrative Expenses associated with an eligible FA activity. For purposes of this NOFA, the five eligible activity categories are defined as follows:

Table 3. FA and HFFI-FA Eligible Activity Categories

FA Eligible Activity

FA Eligible Activity Definition Eligible CDFI Institution Types

i. Financial Products

FA expended as loans, Equity Investments and similar financing activities (as determined by the CDFI Fund) including the purchase of loans originated by certified CDFIs and the provision of loan guarantees; in the case of CDFI Intermediaries, Financial Products may also include loans to CDFIs and/or emerging CDFIs and deposits in Insured Credit Union CDFIs, emerging Insured Credit Union CDFIs, and/or State-Insured Credit Union CDFIs.

All

ii. Financial Services

FA expended for providing checking, savings accounts, check cashing, money orders, certified checks, automated teller machines, deposit taking, safe deposit box services, and other similar services.

Insured Depository Institutions only

Table 3. FA and HFFI-FA Eligible Activity Categories

Not applicable for HFFI- FA Recipients

iii. Loan Loss Reserves

FA 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 Applicant’s Target Market, or for related purposes that the CDFI Fund deems appropriate.

All

iv. Development Services

FA expended for activities undertaken by a CDFI, its Affiliate or contractor that promote community development and shall prepare or assist current or potential borrowers or investees to use the CDFI’s Financial Products or Financial Services. For example, such activities include, financial or credit counseling;

homeownership counseling; and business planning and management assistance.

All

v. Capital Reserves

FA 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 as the CDFI Fund deems appropriate.

Insured Depository Institutions only

2. TA Grants: TA grant funds can be expended for the following seven eligible activity categories: (i) Compensation – personnel services; (ii) Compensation – fringe benefits; (iii)

Professional Service Costs; (iv) Travel Costs; (v) Training and Education Costs; (vi) Equipment and other capital expenditures; and (vii) Supplies. Each of the eligible activity categories will not be authorized for indirect costs or an associated indirect cost rate. For purposes of this NOFA, the seven eligible activity categories are defined as follows:

Table 4. TA Eligible Activity Categories

(i) Compensation – personnel services

TA paid to cover salaries of the Applicant’s personnel that are paid currently or accrued by the Applicant for work performed directly related to carrying out the purpose of the TA grant (including activities related to becoming certified as a CDFI), subject to the applicable provisions of the Uniform Administrative Requirements.

Table 4. TA Eligible Activity Categories

(ii) Compensation - fringe benefits

TA paid to cover costs of the Applicant’s personnel employment (other than the employees’ salaries) in proportion to the salary charged to the TA grant, to the extent that such payments are made under formally established and consistently applied organizational policies, subject to the applicable provisions of the Uniform Administrative Requirements.

(iii) Professional service costs TA used to pay for professional and consultant services rendered by persons who are members of a particular profession or possess a special skill, and who are not officers or employees of the Recipient, subject to the applicable provisions of the Uniform Administrative Requirements. Payment for a consultant's services may not exceed the daily equivalent of the current maximum rate paid to an Executive Schedule Level IV Federal employee.

(iv) Travel costs TA used to pay expenses for transportation, lodging, subsistence, and related items incurred by the Applicant’s personnel who are on travel status on business related to the TA grant, subject to the applicable provisions of the Uniform Administrative Requirements.

(v) Training and education costs

TA used to pay the cost of training and education provided for employee development, subject to the applicable provisions of the Uniform Administrative Requirements.

(vi) Equipment TA used to pay for tangible personal property, having a useful life of more than one year and a per-unit acquisition cost of at least $5,000, subject to the applicable provisions of the Uniform Administrative Requirements. Examples include office equipment, furnishings, and information technology equipment and systems.

(vii) Supplies TA used to pay for tangible personal property with a per unit acquisition cost of less than $5,000, subject to the applicable provisions of the Uniform Administrative Requirements.

3. HFFI-FA Award:

HFFI-FA award funds can only be expended for eligible FA activities referenced in Table 3. The

HFFI-FA investments must comply with the following guidelines:

a. Recipient must deploy loans, equity investments, and similar financing activities, including the purchase of loans and the provision of loan guarantees for Healthy Food Retail Outlets and Healthy Food Non-Retail Outlets in its Target Market in an amount equal to or greater than 100% of the total HFFI Financial Assistance provided. Eligible financing activities to

Healthy Food Retail Outlets and Healthy Food Non-Retail Outlets require that the majority of the HFFI-supported loan or investment must be devoted to offering a range of Healthy

Food choice, which may include, among other activities, investments supporting an existing retail store or wholesale operation upgrading to offer an expanded range of Healthy Food choices, or supporting a nonprofit organization that expands the availability of Healthy Foods in underserved areas.

b. Recipient must also demonstrate that it has deployed loans, equity investments, and similar financing activities, including the purchase of loans and the provision of loan guarantees to

Healthy Food Retail Outlets located in Food Deserts in the Recipient’s Target Market in an amount equal to 75% of the total HFFI Financial Assistance provided.

c. Eligible financing activities to Healthy Food Retail Outlets require that the majority of the

HFFI-supported loan or investment must be devoted to offering a range of Healthy Food choice, which may include, among other activities, investments supporting an existing retail store upgrading to offer an expanded range of Healthy Food choices.

Definitions:

Healthy Foods. Healthy Foods include nutrient-dense foods and beverages as set forth in the

USDA Dietary Guidelines for Americans 2015-2020 including whole fruits and vegetables, whole grains, fat free or low-fat dairy foods, lean meats and poultry (fresh, refrigerated, frozen or canned). Healthy Foods should have low or no added sugars, and be low-sodium, reduced sodium, or no-salt-added. (See USDA Dietary Guidelines:

http://www.choosemyplate.gov/dietary-guidelines).

Healthy Food Retail Outlets. Commercial sellers of Healthy Foods including, but not limited to, grocery stores, mobile food retailers, farmers markets, retail cooperatives, corner stores, bodegas stores that sell other food and non-food items along with a range of Healthy Foods. As those terms are determined and defined by the CDFI Fund in the Assistance Agreement and related compliance materials.

Healthy Food Non-Retail Outlets. Wholesalers of Healthy Foods including, but not limited to, wholesale food outlets, wholesale cooperatives, or other non-retail food producers that supply for sale a range of Healthy Food options; entities that produce or distribute Healthy Foods for eventual retail sale, and entities that provide consumer education regarding the consumption of

Healthy Foods. As those terms are determined and defined by the CDFI Fund in the Assistance

Agreement and related compliance materials.

Food Deserts. Distressed geographic areas where either a substantial number or share of residents has low access to a supermarket or large grocery store. For the purpose of satisfying the requirements of Goal 2, Measure 2, a Food Desert must either: 1) be a census tract determined to be a Food Desert by the U.S. Department of Agriculture (USDA), in its USDA Food Access

Research Atlas; 2) be a census tract adjacent to a census tract determined to be a Food Desert by the USDA, in its USDA Food Access Research Atlas; which has a median family income less than or equal to 120 percent of the applicable Area Median Family Income; or 3) be a

Geographic Unit as defined in 12 C.F.R. Part 1805.201(b)(3)(ii)(B), which (i) individually meets at least one of the criteria in 12 C.F.R. Part 1805.201(b)(3)(ii)(D), and (ii) has been identified as having low access to a supermarket or grocery store through a methodology that has been adopted for use by another governmental or philanthropic healthy food initiative.

III. ELIGIBILITY INFORMATION:

A. Eligible Applicants: For the purposes of this NOFA, the following tables set forth the eligibility criteria to be in contention to receive an award from the CDFI Fund, along with certain definitions of terms. There are four categories of Applicant eligibility criteria: (1) CDFI certification criteria (Table 5); (2) requirements that apply to all Applicants (Table 6); (3) requirements that apply to TA Applicants (Table 7); and (4) requirements that apply to FA

Applicants (Table 8).

Table 5. CDFI Certification Criteria Definitions Certified CDFI

• An entity that the CDFI Fund has officially notified that it meets all CDFI certification requirements.

Certifiable CDFI

• An entity that has submitted a CDFI Certification Application to the CDFI Fund demonstrating that it meets the CDFI certification requirements but which has not yet been officially certified. (See Table 11 for application submission deadlines.)

• The CDFI Fund will not enter into an Assistance Agreement or make an FA award payment unless and until an Applicant is a Certified

CDFI.

• The CDFI Fund will enter into an Assistance Agreement if the Applicant was awarded a TA award regardless of the Applicant’s certification status.

Emerging CDFI (TA Applicants)

• A non-Certified entity that has not submitted a CDFI Certification Application but demonstrates to the CDFI Fund in its Application that it has an acceptable plan to meet certification requirements by the end of its period of performance, or another date that the CDFI Fund selects.

• An Emerging CDFI that has prior award(s) will be held to the CDFI certification performance goal and measure(s) stated in its prior Assistance Agreement(s).

• 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.

Table 6. Eligibility Requirements for All Applicants Applicant • Only the entity that will carry out the proposed award activities can apply for an award (i.e., the intended award Recipient).

• The information in the Application should only reflect the activities of the Applicant, including the presentation of financial and portfolio information. Do not include financial or portfolio information from parent companies, Affiliates, or Subsidiaries in the Application unless it relates to the provision of Development Services.

• An Applicant that applies on behalf of another organization will be rejected without further consideration, except for Depository Institution Holding Companies (see below).

Application type and submission overview through Grants.gov and Awards Management Information System (AMIS)

• Applicants must submit the required application documents listed in Table 10.

• The CDFI Fund will only accept Applications that use the official application templates provided on the Grants.gov and AMIS websites.

Applications submitted with alternative or altered templates will not be considered.

• Applicants have a two-step process that requires the submission of application documents on two separate deadlines and locations: 1) Grants.gov and 2) AMIS.

o Grants.gov: Applicants must submit the Office of Management and Budget (OMB) Standard Form (SF) OMB SF-424, Application for Federal Assistance.

o AMIS: Applicants must submit all other required application materials.

o All Applicants must register in the Grants.gov and AMIS systems to successfully submit an application. The CDFI Fund strongly encourages applicants to register as early as possible.

• Grants.gov and the SF- 424:

o The SF-424 must be submitted in Grants.gov on or before

March 24, 2017, the deadline listed in Table 1 and Table 11.

Applicants are strongly encouraged to submit their SF-424 as early as possible in the Grants.gov portal.

o The deadline for the Grants.gov submission is before the AMIS deadline.

o The SF-424 must be submitted under the CDFI Program Funding Opportunity Number.

o If the SF-424 is not accepted by Grants.gov by the deadline, the CDFI Fund will not review any material submitted in AMIS and the application will be deemed ineligible.

• AMIS:

o AMIS is an enterprise-wide information technology system that replaced the myCDFI Fund portal. Applicants will use AMIS to submit and store organization and application information with the CDFI Fund.

o Applicants are only allowed one CDFI Program Application submission in AMIS.

o Only the Authorized Representative or Application Point of Contact, included in the Application, can submit the Application in AMIS.

o All required application materials must be submitted in AMIS on or before the deadline specified in Tables 1 and 11.

Employer Identification Number (EIN)

• Applicants must have a unique EIN assigned by the Internal Revenue Service (IRS).

• The CDFI Fund will reject an Application submitted with the EIN of a parent or Affiliate organization.

Dun & Bradstreet, (DUNS) number

• Pursuant to OMB guidance (68 FR 38402), an Applicant must apply using its unique DUNS number in Grants.gov.

• The CDFI Fund will reject an Application submitted with the DUNS number of a parent or Affiliate organization.

Awards Management Information System (AMIS)

• Each Applicant must register as an organization in AMIS and submit all required application materials through the AMIS portal.

• The Authorized Representative and/or Application Point of Contact must be included as “users” in the Applicant’s AMIS account.

• An Applicant that fails to properly register and update its AMIS account may miss important communication from the CDFI Fund or not be able to successfully submit an Application.

501 (c)(4) status • Pursuant to 2 U.S.C. 1611, any 501 (c)(4) organization that engages in lobbying activities is not eligible for the receipt of a CDFI or NACA Program award.

Compliance with Nondiscrimination and Equal Opportunity Statutes, Regulations, and Executive Orders

• An Applicant may not be eligible to receive an award if proceedings have been instituted against it in, by, or before any court, governmental agency, or administrative body, and a final determination within the last three years indicates the Applicant has violated any of the following laws but not limited to: Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C.2000d); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); the Age Discrimination Act of 1975, (42 U.S.C. 6101-6107), and Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency.

Depository Institution Holding Company Applicant

• In the case where a CDFI Depository Institution Holding Company Applicant intends to carry out the activities of an award through its Subsidiary CDFI Insured Depository Institution, the Application must be submitted by the CDFI Depository Institution Holding Company and reflect the activities and financial performance of the Subsidiary CDFI Insured Depository Institution.

• Authorized representatives of both the Depository Institution Holding Company and the Subsidiary CDFI Insured Depository Institution must certify that the information included in the Application represents that of the Subsidiary CDFI Insured Depository Institution http://www.law.cornell.edu/uscode/text/26/501 http://www.law.cornell.edu/uscode/text/26/usc_sec_26_00000501----000-#c_4 and that the award funds will be used to support the Subsidiary CDFI Insured Depository Institution for the eligible activities outlined in the Application.

Insured CDFI - Insured Credit Union and Insured Depository Institution

• To be eligible for an award, each Insured Depository Institution Applicant must have a CAMELS/CAMEL rating (rating for banks and credit unions, respectively), by its Federal regulator of at least “4.”

• Organizations with CAMELS/CAMEL ratings of “5” will not be eligible for awards.

Use of award • All awards made through this NOFA must be used to support the Applicant’s activities in at least one of the FA or TA Eligible Activity Categories (see Section II.C).

• 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 (except Depository Institution Holding Company Applicants.)

Requested award amount

• An Applicant must state its requested award amount in the Application in AMIS. An Application that does not include this amount will not be allowed to submit an Application.

Pending resolution of noncompliance

• The CDFI Fund will consider an Application submitted by an Applicant that has pending noncompliance issues of any of its previously executed award agreement(s), if the CDFI Fund has not yet made a final compliance determination.

Noncompliance status

• The CDFI Fund will not consider an Application submitted by an Applicant that has a previously executed award agreement(s) if, as of the date of the Application, (i) the CDFI Fund has made a determination that such entity is noncompliant with a previously executed agreement and (ii) the CDFI Fund has provided written notification that such entity is ineligible to apply for or receive any future CDFI Fund awards or allocations. Such entities will be ineligible to submit an Application for such time period as specified by the CDFI Fund in writing.

• The CDFI Fund will not consider any Applicant that has defaulted on a CDFI Program loan within five years of the Application deadline.

Table 7. Eligibility Requirements for TA Applicants

CDFI

certification status

(1) Emerging CDFIs (see definitions in Table 5), or

(2) Certifiable or Certified CDFIs (see Table 5) that meet the following criteria:

(1) Have total assets* as of the end of the Applicant’s most recent fiscal year end in the following amounts:

• Insured Depository Institutions and Depository Institution Holding

Companies: up to $250 million

• Insured Credit Unions: up to $10 million

• Venture capital funds: up to $10 million

• Other CDFIs: up to $5 million

Table 8. Eligibility Requirements for FA Applicants

CDFI

certification status

• Each FA Applicant must be a Certified CDFI prior to the announcement of award decisions.

• An Applicant that is in a cure period to remedy CDFI recertification deficiencies at the time of award announcements will not be eligible for an FA award under this NOFA.

Matching funds documentation

• All Applicants must submit acceptable documentation attesting that they have received or will receive matching funds. Applicants that do not submit the Matching Funds Excel Workbook documenting the source of their matching funds will not be evaluated.

• Awards will be limited to no more than two times the amount of In-Hand or Committed matching funds documentation provided at the time of Application.

• Awards will be obligated in like form to the matching funds provided at time of Application. See Table 9. Matching Funds “Determination of Award Form” for additional guidance.

• Award payments from the CDFI Fund will require eligible dollar-for-dollar In-Hand matching funds for the total payment amount. Recipients will not receive a payment until 100 percent of their matching funds are In-Hand.

• The CDFI Fund will reduce and de-obligate the remaining balance of any Award that does not demonstrate full dollar-for-dollar matching funds equal to the announced award amount by the end of the Matching Funds Window.

$5 Million funding cap

• The CDFI Fund is 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.

• For purposes of this NOFA and subject to final FY 2017 appropriations language, the CDFI Fund will include CDFI and NACA Program final awards in the cap calculation that were provided to an Applicant (and/or its Subsidiaries or Affiliates) under the FY 2015, and 2016 funding rounds, as well as the requested FY 2017 award, excluding HFFI-FA

OR

(2) Have begun operations** on or after January 1, 2013

*“Total assets” is defined as the Total Assets as of Fiscal Year End Date stated in the Applicant’s AMIS account and verified by internally prepared financial statements and/or audits.

**“Have begun operations” is defined as the financing activity start date indicated in the Applicant’s AMIS account.

Matching funds • Matching funds documentation is not required for TA awards.

Limitation on Awards

• An Emerging CDFI will be allowed to receive no more than three TA awards as an uncertified CDFI.

awards. The CDFI Fund will make the FY 2017 funding round award announcements after September 23, 2017.

FA Category I

(SECA)

• To be an eligible SECA Applicant, an Applicant must meet the following criteria:

(1) Be a Certified or Certifiable CDFI;

(2) Request $700,000 or less in FA funds;

AND EITHER

(3) Have total assets* as of the end of the Applicant’s most recent fiscal year end in the following amounts:

• Insured Depository Institutions and Depository Institution Holding

Companies: up to $250 million

• Insured Credit Unions: up to $10 million

• Venture capital funds: up to $10 million

• Other CDFIs: up to $5 million

OR

(4) Have begun operations** on or after January 1, 2013

*“Total assets” is defined as the Total Assets of Fiscal Year End Date stated in the Applicant’s AMIS account and verified by internally prepared financial statements and/or audits.

**“Have begun operations” is defined as the financing activity start date indicated in the Applicant’s AMIS account.

FA Category II (Core)

• A Core Applicant must be either a Certified or Certifiable CDFI as defined in Table 5.

• An Applicant that meets the SECA requirements stated above, that requests more than $700,000 in award funds is categorized as an FA Category II (Core) Applicant, regardless of its total assets and/or years in operation.

FA Applicants with Community Partners

• A CDFI Applicant can apply for assistance jointly with a Community Partner. The CDFI Applicant would complete the CDFI Program Application for (FA) and would address the Community Partnership in its business plan and other sections of the Application as specified in the guidance materials.

• The CDFI Applicant must be either a Certified or Certifiable CDFI as defined in Table 5.

• An Application with a Community Partner must:

o Describe how the CDFI Applicant and Community Partner will each participate in carrying out the partnership and how the partnership will enhance activities serving the investment area or targeted population.

o Demonstrate that the Community Partnership activities are consistent with the strategic plan submitted by the CDFI - Applicant.

• Assistance provided upon approval of an Application with a Community Partner shall only be entrusted to the CDFI Applicant and shall not be used to fund any activity carried out directly by the Community Partner or an Affiliate or Subsidiary thereof.

HFFI-FA • All HFFI-FA Applicants must:

o Submit a CDFI or NACA Program FA Application;

o Meet all FA award eligibility requirements;

o Submit the HFFI-FA Application; and o Provide an HFFI-FA award request amount in AMIS.

B. Matching Funds Requirements: In order to receive an FA award, an Applicant must provide evidence of eligible dollar-for-dollar matching funds and attest that it can provide acceptable documentation upon the CDFI Fund’s request. An Applicant that uses Retained Earnings or

Equity Investments must provide documentation of eligible dollar-for-dollar matching funds at the time of application submission. The CDFI Fund will review summary matching funds information, attestations, and matching funds documentation, if applicable, prior to award payment and will pay funds based upon eligible In-Hand matching funds (see Table 9 for the definition of In-Hand). The CDFI Fund encourages Applicants to review the Regulations at 12

C.F.R. 1805.500, the Uniform Administrative Requirements, and the matching funds guidance materials available on the CDFI Fund’s website. Table 9 provides a summary of the matching funds requirements; additional details are set forth in the Application materials.

Table 9. Matching Funds Requirements

Matching funds requirements by application type

The following Applicants must provide evidence of acceptable matching funds:

• Category I/SECA FA Applicants (upon request)*;

• Category II/Core FA Applicants; and

• HFFI-FA Applicants. (upon request) *

TA Applicants are not required to provide matching funds.

* The matching funds requirement for HFFI-FA and SECA FA applicants was waived in the appropriations bill for FY 2016 and the final FY 2017 appropriations are still pending. HFFI-FA and SECA FA applicants are not required to submit matching funds for their award requests at the time of application. However, the CDFI Fund reserves the right to request matching funds from HFFI-FA and SECA FA applicants if matching funds are not waived in the final FY 2017 CDFI Program appropriation.

Amount of required match

Applicants must provide evidence of eligible, In-Hand, dollar-for-dollar, non-Federal matching funds for every FA award dollar to be paid by the CDFI Fund. If awarded, Applicants that did not demonstrate 100 percent In-Hand matching funds at the time of Application may experience a longer payment timeline.

Determination of award form

FA awards will be made in comparable form and value to the eligible In- Hand and/or Committed matching funds documentation submitted by the Applicant.

• For example, if an FA Applicant provides documentation of eligible loan matching funds for $200,000 and $400,000 of its matching funds in the form of grant, the CDFI Fund will obligate $200,000 of the FA award as a loan and $400,000 as a grant.

• After awards have been announced, Award Recipients may request the CDFI Fund’s permission to change the form of their award from loan to grant (by producing eligible grant matching funds), but will only be eligible to receive a grant equal to the federal credit subsidy amount associated with the original loan. Applicants will also experience delays in payments if requested award form changes are approved by the CDFI Fund.

Matching Funds Window definition

• The Applicant must receive eligible In-Hand matching funds between January 1, 2015 and January 15, 2018.

• An Award Recipient must provide the CDFI Fund with all documentation demonstrating the receipt of In-Hand matching funds by January 31, 2018.

Matching funds and form of award

• Recipients will be approved for a maximum award size of two times the total amount of eligible In-Hand and/or Committed matching funds included in the Application, so long as they do not exceed the award amount limit.

• The form of the matching funds documented in the Application determines the form of the award.

In-Hand matching funds definition

• Matching funds are In-Hand when the Applicant receives payment for the matching funds from the matching funds source and has acceptable documentation that can be provided to the CDFI Fund upon request. Acceptable In-Hand documentation must show the source, form (e.g., grant, loan, deposit, and Equity Investment), amount received, and the date the funds came into physical possession of the Applicant.

• The following documentation, depending on the matching funds type, must be available to be provided to the CDFI Fund upon request:

• loan - the loan agreement and/or promissory note;

• grant - the grant letter or agreement for all grants;

• equity investment - the stock certificate and shareholder agreement;

• retained earnings - audits or call reports from regulating entity;

• third party in-kind contribution- evidence of receipt of contribution and valuation;

• deposits – certificates of deposit agreement;

• secondary capital – secondary capital agreement and disclosure and acknowledgement statement;

AND

• clearly legible documentation that demonstrates actual receipt of the matching funds including the date of the transaction and the amount, such as a copy of a check or a wire transfer statement.

• Applicants must provide information on their In-Hand matching funds in the Matching Funds Breakout Table Excel Workbook (refer to Table 10 – Required Application Documents) which must be submitted at the time of Application.

• Although Applicants are not required to provide further documentation for In-Hand matching funds at the time of Application submission, except for Retained Earnings and Equity Investments, they must be able to provide documentation to the CDFI Fund upon request.

Committed matching funds definition

• Matching funds are Committed when the Applicant has entered into or received a legally binding commitment from the matching funds source showing the matching funds will be disbursed to the Applicant at a future date.

• The Applicant must be able to provide the CDFI Fund, upon request, acceptable written documentation showing the source, form, and amount of the Committed matching funds (including, in the case of a loan, the terms thereof), as well as the anticipated payment date of the Committed funds.

• Applicants must provide information on their Committed matching funds in the Matching Funds Breakout Table Excel Workbook (refer to Table 10 – Required Application Documents) which must be submitted at the time of Application.

• Although Applicants are not required to provide further documentation for Committed matching funds at the time of Application submission, except for Retained Earnings, it must be able to provide documentation to the CDFI Fund upon request.

Limitations on matching funds

• Matching funds must be from non-Federal sources.

• Applicants cannot proffer matching funds that were accepted as matching funds for a prior FA award under the CDFI Program, NACA Program, or under another Federal grant or award program.

• Matching funds must comply with Regulations at 12 C.F.R. 1805.500 et seq.

• Matching funds must be attributable to at least one of the five eligible FA activities (see Section II.C).

Rights of the • The CDFI Fund reserves the right to contact the matching funds

CDFI Fund source to discuss the matching funds and the documentation that the Applicant provided if required or requested.

• The CDFI Fund may grant an extension of the Matching Funds Window (defined in Table 9), on a case-by-case basis, if the CDFI Fund deems it appropriate.

• 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 Award Recipient fails to provide evidence of In- Hand Matching Funds totaling its award amount obtained during the Matching Funds Window.

Matching funds in the form of third-party in-kind contributions

• Third party in-kind contributions are non-cash contributions (i.e., property or services) provided by non-Federal third parties to the Applicant.

• Third party in-kind contributions will be considered to be in the form of a grant for matching funds purposes.

• Third party in-kind contributions may be in the form of real property, equipment, supplies, and other expendable property, and the value of goods and services directly benefiting the eligible activities.

• For third-party in-kind contributions, the fair market value of goods and services must be documented as the grant match.

• Applicants will be responsible for documenting the value of all in-kind contributions as described in the Uniform Administrative Requirements.

Matching funds in the form of a loan

• An FA award made in the form of a loan will have the following standardized terms:

• A 13-year term with semi-annual interest-only payments due in years 1 through 10, and fully amortizing payments due each year in years 11 through 13; and

• A fixed interest rate of 1.9 percent, which was calculated by the CDFI Fund based on the U.S. Department of the Treasury’s 10-year Treasury note.

• The Applicant’s matching funds loan(s) must:

i. have a minimum of a 3-year term (loans presented as matching funds with less than a 3- year term will not qualify as eligible match); and

ii. be from a non-Federal source.

Severe Constraints Waiver

• Not more than 25 percent of the total funds available for obligation under this funding round may be matched under the Severe Constraints Waiver.

• In the case of an Applicant demonstrating severe constraints on available sources of matching funds, the CDFI Fund, in its sole discretion, may permit such Applicant to comply with the matching funds requirements by reducing such requirements by up to 50 percent.

• In order to be considered eligible for a Severe Constraints Waiver, an

Applicant must meet all of the SECA eligibility criteria described in Table 8. Instructions for requesting a Severe Constraints Waiver will be made available if required.

Ineligible matching funds

• If the CDFI Fund determines that any portion of the Applicant’s matching funds is ineligible, the CDFI Fund will permit the Applicant to offer documentation of alternative matching funds as a substitute for the ineligible matching funds.

• In such instances:

i. the Applicant must provide acceptable evidence of the alternative matching funds within the period of time specified by the CDFI Fund, and

ii. the alternative matching funds will not increase the total amount of FA requested.

Use of matching funds from a prior CDFI Program Recipient

If an Applicant offers matching funds documentation from an organization that was a prior Recipient under the CDFI Program or NACA Program, the Applicant must be able to prove to the CDFI Fund’s satisfaction that such funds do not consist, in whole or in part, of CDFI Program funds, NACA Program funds, or other Federal funds.

Matching funds in the form of retained earnings

• Retained earnings are eligible for use as matching funds when the CDFI Fund calculates an amount equal to:

i. the increase in retained earnings that occurred over any one of the Applicant’s fiscal years within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award;

or

ii. the annual average of such increases that occurred over any three consecutive fiscal years of the Applicant with at least one of the fiscal years occurring within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award;

or

iii. any combination of (i) and (ii) above that does not include matching funds used for an award.

• Retained earnings will be matched with an FA award in the form of a grant.

Special rule for Insured Credit Unions and Insured Depository Institutions

• An Insured Credit Union’s and Insured Depository Institution’s retained earnings are eligible for use as matching funds when the CDFI Fund calculates an amount equal to:

i. the increase in retained earnings that occurred over any one of the Applicant’s fiscal years within the Matching Funds Window, adjusted to remove revenue from Federal sources and matching funds used for an award; or

ii. the annual average of such increases that occurred over any three consecutive fiscal years of the Applicant with at least one of the fiscal years occurring within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds 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.

• If option (iii) is used for Insured Credit Unions, 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 on a quarterly basis from March 31, 2017; must occur by the end of Year 1 of the Recipient’s 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 NCUA form 5300 Call Reports that it has increased shares and/or total loans outstanding by at least 25 percent of the requested FA award amount between December 31, 2015, and December 31, 2016.

• The matching funds are not In-Hand until the Recipient has increased its member and/or non-member shares, deposits and/or total loans outstanding by the amount of retained earnings since inception used as matching funds within the time period specified.

• If option (iii) is used for Insured Depository Institutions or Depository Institution Holding Companies, the Applicant or its Subsidiary Insured Depository Institution (in the case of a Depository Institution Holding Company) must increase deposits and/or total loans outstanding by an amount equal to the amount of retained earnings committed as matching funds. Please note that Depository Institution Holding Company Applicants must use the call reports of the CDFI Subsidiary Insured Depository Institution that the requested FA award will support.

• This increase will be measured on a quarterly basis from March

31, 2017; must occur by the end of Year 1 of the Recipient’s Performance Period, as set forth in its Assistance Agreement;

and will be based on amounts reported in the Bank 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 call reports that it has increased deposits and/or total loans outstanding by at least 25 percent of the requested FA award amount between December 31, 2015, and December 31, 2016.

• The matching funds are not In-Hand until the Recipient has increased its deposits and/or total loans outstanding by the amount of retained earnings since inception used as matching funds…