Notice of Funds Availability (NOFA) Inviting Applications for the FY 2006 Funding Round and the FY 2007 Funding Round of the Native American CDFI Assistance Program, 73877-73886 [05-23748]

Agencies

• Community Development Financial Institutions Fund
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 70, Number 238 (Tuesday, December 13, 2005)]
[Notices]
[Pages 73877-73886]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-23748]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funds Availability (NOFA) Inviting Applications for the 
FY 2006 Funding Round and the FY 2007 Funding Round of the Native 
American CDFI Assistance Program

    Announcement Type: Initial announcement of funding opportunity.
    Catalog of Federal Domestic Assistance (CFDA) Number: 21.020.
    Dates: Applications for the FY 2006 Funding Round must be received 
by 5 p.m. ET on February 14, 2006. Applications for the FY 2007 Funding 
Round must be received by 5 p.m. ET on February 14, 2007.
    Executive Summary: Subject to funding availability, this NOFA is 
issued in connection with two consecutive funding rounds of the Native 
American CDFI Assistance (NACA) Program: (i) The FY 2006 Funding Round 
and (ii) the FY 2007 Funding Round.

I. Funding Opportunity Description

    A. Through the NACA Program, the Community Development Financial 
Institutions Fund (the Fund) provides Financial Assistance (FA) awards 
to Community Development Financial Institutions (CDFIs) that have at 
least 50 percent of their activities directed toward serving Native 
American, Alaska Native and/or Native Hawaiian communities (Native 
CDFIs) in order to build their capacity to better address the community 
development and capital access needs of their Target Market(s) and to 
expand into new Investment Areas, Low-Income Targeted Populations, or 
Other Targeted Populations. Through the NACA Program, the Fund provides 
Technical Assistance (TA) grants to entities that propose to become 
Native CDFIs, and to Native organizations, Tribes and Tribal 
organizations (Sponsoring Entities) that propose to create Native 
CDFIs, in order to build their capacity to better address the community 
development and capital access needs of their Target Market(s), to 
expand into new Investment Areas, Low-Income Targeted Populations, or 
Other Targeted Populations, or to create Native CDFIs.
    B. The regulations governing the CDFI Program, found at 12 CFR Part 
1805 (the Interim Rule), provide relevant guidance on evaluation 
criteria and other requirements of the NACA Program. The Fund is 
publishing the revised Interim Rule in this issue of the Federal 
Register. The Interim Rule published in this issue of the Federal 
Register contains revisions concerning how certain Applicants may use 
retained earnings as matching funds for a FA award. The Fund encourages 
Applicants to review the Interim Rule. Detailed application content 
requirements are found in the applicable funding application and 
related guidance materials. Each capitalized term in this NOFA is more 
fully defined in the Interim Rule, the application or the guidance 
materials.
    C. The 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 Fund reserves the right to re-allocate funds from the amount that 
is anticipated to be available under this NOFA to other Fund programs, 
particularly if the Fund determines that the number of awards made 
under this NOFA is fewer than projected.

II. Award Information

    A. Funding Availability: 1. FY 2006 Funding Round: Through the FY 
2006 Funding Round, and subject to funding availability, the Fund 
expects that it may award approximately $3.5 million in appropriated 
funds through the NACA Program. The Fund reserves the right to award in 
excess of $3.5 million in appropriated funds to Applicants in the FY 
2006 Funding Round, provided that the funds are available and the Fund 
deems it appropriate.
    2. FY 2007 Funding Round: Through the FY 2007 Funding Round, and 
subject to funding availability, the Fund expects that it may award 
approximately $3.5 million in appropriated funds through the NACA 
Program. The Fund reserves the right to award in excess of $3.5 million 
in appropriated funds to Applicants in the FY 2007 Funding Round, 
provided that the funds are available and the Fund deems it 
appropriate.
    3. Availability of Funds for the FY 2007 Funding Round: Because 
funds for the FY 2007 Funding Round have not yet been appropriated, 
interested parties should be aware that electing to defer the 
submission of an application until the FY 2007 Funding Round, rather 
than for the FY 2006 Funding Round, entails some risk. If funds are not 
appropriated for the FY 2007 Funding Round, there will not be a FY 2007 
Funding Round. Further, it is possible that if funds are appropriated 
for the FY 2007 Funding Round, the amount of such funds may be less 
than the amounts set forth above.
    B. Types of Awards: A NACA Program Applicant may submit an 
application for: (i) a FA award; (ii) a FA award and a TA grant; or 
(iii) a TA grant.
    1. FA Awards: The Fund may provide FA awards in the form of equity 
investments (including, in the case of certain Insured Credit Unions, 
secondary capital accounts), grants, loans, deposits, credit union 
shares, or any combination thereof. The Fund reserves the right, in its 
sole discretion, to provide a FA award in a form and amount other than 
that which is requested by an Applicant. The Fund reserves the right, 
in its sole discretion, to provide a FA award on the condition that the 
Applicant agrees to use a TA grant for specified capacity building 
purposes, even if the Applicant has not requested a TA grant.
    2. TA Grants: (a) The Fund may provide TA awards in the form of 
grants. The Fund reserves the right, in its sole discretion, to provide 
a TA grant for uses and amounts other than and in addition to that 
which are requested by an Applicant.
    (b) TA grants may be used to address a variety of needs including, 
but not limited to, development of strategic planning documents (such 
as business, strategic or capitalization plans), market analyses or 
product feasibility analyses, operational policies and procedures, 
curricula for Development Services (such as entrepreneurial training, 
home

[[Page 73878]]

buyer education, financial education or training, borrower credit 
repair training), improvement of underwriting and portfolio management, 
development of outreach and training strategies to enhance product 
delivery, operating support to expand into a new Target Market, and 
tools that allow the Applicant to assess the impact of its activities 
in its community. Each Applicant for a TA grant through this NOFA is 
required to provide information in the application regarding the 
expected cost, timing and provider of the TA, and a narrative 
description of how the TA grant will enhance its capacity to provide 
greater community development impact, to become certified as a Native 
CDFI, or to create a Native CDFI, if applicable.
    (c) Eligible TA grant uses include, but are not limited to: (i) 
Acquiring consulting services; (ii) acquiring/enhancing technology 
items, including computer hardware, software and Internet connectivity; 
(iii) acquiring training for staff, management and/or board members; 
and (iv) paying recurring expenses, including staff salary and other 
key operating expenses, that will enhance the capacity of the Applicant 
to serve its Target Market, and/or to become certified as a Native CDFI 
or to create a Native CDFI.
    C. Notice of Award; Assistance Agreement: Each Awardee under this 
NOFA must sign a Notice of Award and an Assistance Agreement in order 
to receive a disbursement of award proceeds by the Fund. The Notice of 
Award and the Assistance Agreement contain the terms and conditions of 
the award. For further information, see Sections VI.A and VI.B of this 
NOFA.

III. Eligibility Information

    A. Eligible Applicants: The Interim Rule specifies the eligibility 
requirements that each Applicant must meet in order to be eligible to 
apply for assistance under this NOFA. The following sets forth 
additional detail and dates that relate to the submission of 
applications under this NOFA:
    1. CDFI Certification Requirements: For purposes of this NOFA, any 
Applicant that is a Certified Native CDFI or a Certifiable Native CDFI 
may apply for a FA award or a FA award and a TA grant. An Applicant 
that is an Emerging Native CDFI or a Sponsoring Entity may apply for a 
TA grant only.
    (a) Certified Native CDFIs: For purposes of this NOFA, a Certified 
Native CDFI is a Certified CDFI that primarily serves (meaning, at 
least 50 percent of its activities are directed toward serving) a 
Native Community and whose certification has not expired and that has 
not been notified by the Fund that its certification has been 
terminated. Each such Applicant must include a ``Certification of 
Material Event Form'' with its NACA application by the applicable 
application deadline, in accordance with the instructions on the Fund's 
Web site at www.cdfifund.gov. Please note: the Fund provided a number 
of CDFIs with certifications expiring in 2003 through 2005 written 
notification that their certifications had been extended. The Fund will 
consider the extended certification date (the later date) to determine 
whether those CDFIs meet this eligibility requirement.
    (b) Certifiable Native CDFIs: For purposes of this NOFA, a 
Certifiable Native CDFI is an entity that primarily serves (meaning, at 
least 50 percent of its activities are directed toward serving) a 
Native Community and from which the Fund receives a complete CDFI 
Certification Application by the applicable deadline of the NACA 
Program application, evidencing that the Applicant meets all 
requirements to be certified as a CDFI. Applicants may obtain the CDFI 
Certification Application through the Fund's Web site at 
www.cdfifund.gov. Applications for certification must be submitted as 
instructed in the application form. FA Applicants that are Certifiable 
Native CDFIs please note: While your organization may be conditionally 
selected for funding (as evidenced through the Notice of Award), the 
Fund will not enter into an Assistance Agreement or disburse FA award 
funds unless and until the Fund has certified your organization as a 
CDFI. If the Fund is unable to certify your organization as a CDFI 
based on the CDFI certification application that your organization 
submits to the Fund, the Notice of Award may be terminated and the 
award commitment may be cancelled, in the sole discretion of the Fund.
    (c) Emerging Native CDFIs: For purposes of this NOFA, an Emerging 
Native CDFI is an entity that primarily serves (meaning, at least 50 
percent of its activities are directed toward serving) a Native 
Community and that demonstrates to the satisfaction of the Fund that it 
has a reasonable plan to achieve CDFI certification within a reasonable 
timeframe. Emerging CDFIs may only apply for TA grants; they are not 
eligible to apply for FA awards. Each Emerging CDFI that is selected to 
receive a TA grant will be required, pursuant to its Assistance 
Agreement with the Fund, to work toward CDFI certification by a date 
certain.
    (d) Sponsoring Entities: For purposes of this NOFA, a Sponsoring 
Entity is an entity that proposes to create a separate legal entity 
that will become certified as a CDFI. For purposes of this NOFA, 
Sponsoring Entities include: (a) A Tribe, Tribal entity, Alaska Native 
Village, Village Corporation, Regional Corporation, Non-Profit Regional 
Corporation/Association, or Inter-Tribal or Inter-Village organization; 
(b) an organization whose primary mission is to serve a Native 
Community including, but not limited to an Urban Indian Center, 
Tribally Controlled Community College, community development 
corporation (CDC), training or educational organization, or Chamber of 
Commerce, and that primarily serves (meaning, at least 50 percent of 
its activities are directed toward serving) a Native Community. 
Sponsoring Entities may only apply for TA grants; they are not eligible 
to apply for FA awards. Each Sponsoring Entity that is selected to 
receive a TA grant will be required, pursuant to its Assistance 
Agreement with the Fund, to create a legal entity by a date certain 
that will, in turn, seek CDFI certification.
    D. Prior Awardees: Applicants must be aware that success in a prior 
round of any of the Fund's programs is not indicative of success under 
this NOFA. Prior awardees are eligible to apply under this NOFA, except 
as follows:
    1. $5 Million Funding Cap. The Fund is generally prohibited from 
obligating more than $5 million in assistance, in the aggregate, to any 
one organization and its Subsidiaries and Affiliates during any three-
year period. For the purposes of this NOFA, the period extends back 
three years from the date that the Fund signs a Notice of Award issued 
to an Awardee under this NOFA.
    2. Failure to meet reporting requirements: The Fund will not 
consider an application submitted by an Applicant if the Applicant, or 
an entity that Controls the Applicant, is Controlled by the Applicant 
or shares common management officials with the applicant (as determined 
by the Fund) is a prior Fund Awardee or allocatee under any Fund 
program and is not current on the reporting requirements set forth in a 
previously executed assistance, allocation or award agreement(s) as of 
the applicable application deadline of this NOFA. Please note that the 
Fund only acknowledges the receipt of reports that are complete. As 
such, incomplete reports or reports that are deficient of required 
elements will not be recognized as having been received.
    3. Pending resolution of noncompliance: If an Applicant is a prior 
Awardee or allocatee under any Fund program and if: (i) It has

[[Page 73879]]

submitted complete and timely reports to the Fund that demonstrate 
noncompliance with a previous assistance, allocation or award 
agreement; and (ii) the Fund has yet to make a final determination as 
to whether the entity is in default of its previous assistance, 
allocation or award agreement, the Fund will consider the Applicant's 
application under this NOFA pending full resolution, in the sole 
determination of the Fund, of the noncompliance. Further, if another 
entity that Controls the Applicant, is Controlled by the Applicant or 
shares common management officials with the Applicant (as determined by 
the Fund), is a prior Fund Awardee or allocatee and if such entity: (i) 
Has submitted complete and timely reports to the Fund that demonstrate 
noncompliance with a previous assistance, allocation or award 
agreement; and (ii) the Fund has yet to make a final determination as 
to whether the entity is in default of its previous assistance, 
allocation, or award agreement, the Fund will consider the Applicant's 
application under this NOFA pending full resolution, in the sole 
determination of the Fund, of the noncompliance.
    4. Default status: The Fund will not consider an application 
submitted by an Applicant that is a prior Fund Awardee or allocatee 
under any Fund program if, as of the applicable application deadline of 
this NOFA, the Fund has made a final determination that such Applicant 
is in default of a previously executed assistance, allocation or award 
agreement(s). Further, an entity is not eligible to apply for an award 
pursuant to this NOFA if, as of the applicable application deadline of 
this NOFA, the Fund has made a final determination that another entity 
that Controls the Applicant, is Controlled by the Applicant or shares 
common management officials with the Applicant (as determined by the 
Fund): (i) Is a prior Fund Awardee or allocatee under any Fund program; 
and (ii) has been determined by the Fund to be in default of a 
previously executed assistance, allocation or award agreement(s).
    5. Termination in default: The Fund will not consider an 
application submitted by an Applicant that is a prior Fund Awardee or 
allocatee under any Fund program if: (i) The Fund has made a final 
determination that such Applicant's prior award or allocation 
terminated in default of a previously executed assistance, allocation 
or award agreement(s); and (ii) the final reporting period end date for 
the applicable terminated assistance, allocation or award agreement(s) 
falls in Calendar Year 2005 (for the FY 2006 Funding Round) or Calendar 
Year 2006 (for the FY 2007 Funding Round). Further, an entity is not 
eligible to apply for an award pursuant to this NOFA if: (i) The Fund 
has made a final determination that another entity that Controls the 
Applicant, is Controlled by the Applicant or shares common management 
officials with the Applicant (as determined by the Fund), is a prior 
Fund Awardee or allocatee under any Fund program whose award or 
allocation terminated in default of a previously executed assistance, 
allocation or award agreement(s); and (ii) the final reporting period 
end date for the applicable terminated assistance, allocation or award 
agreement(s) falls in Calendar Year 2005 (for the FY 2006 Funding 
Round) or Calendar Year 2006 (for the FY 2007 Funding Round).
    6. Undisbursed balances: The Fund will not consider an application 
submitted by an Applicant that is a prior Fund Awardee under any Fund 
program if the Applicant has a balance of undisbursed funds (defined 
below) under said prior award(s), as of the applicable application 
deadline of this NOFA. Further, an entity is not eligible to apply for 
an award pursuant to this NOFA if another entity that Controls the 
Applicant, is Controlled by the Applicant or shares common management 
officials with the Applicant (as determined by the Fund), is a prior 
Fund Awardee under any Fund program, and has a balance of undisbursed 
funds under said prior award(s), as of the applicable application 
deadline of this NOFA. In a case where another entity that Controls the 
Applicant, is Controlled by the Applicant or shares common management 
officials with the Applicant (as determined by the Fund), is a prior 
Fund Awardee under any Fund program, and has a balance of undisbursed 
funds under said prior award(s), as of the applicable application 
deadline of this NOFA, the Fund will include the combined awards of the 
Applicant and such Affiliated entities when calculating the amount of 
undisbursed funds. For purposes of this section, ``undisbursed funds'' 
is defined as: (i) In the case of a prior Bank Enterprise Award (BEA) 
Program award(s), any balance of award funds equal to or greater than 
five (5) percent of the total prior BEA Program award(s) that remains 
undisbursed more than three (3) years after the end of the calendar 
year in which the Fund signed an award agreement with the Awardee; and 
(ii) in the case of a prior CDFI Program or other Fund program 
award(s), any balance of award funds equal to or greater than five (5) 
percent of the total prior award(s) that remains undisbursed more than 
two (2) years after the end of the calendar year in which the Fund 
signed an assistance agreement with the Awardee. ``Undisbursed funds'' 
does not include (i) tax credit allocation authority made available 
through the New Market Tax Credit (NMTC) Program; (ii) any award funds 
for which the Fund received a full and complete disbursement request 
from the Awardee by the applicable application deadline of this NOFA; 
(iii) any award funds for an award that has been terminated, expired, 
rescinded or deobligated by the Fund; or (iv) any award funds for an 
award that does not have a fully executed assistance or award 
agreement. The Fund strongly encourages Applicants requesting 
disbursements of ``undisbursed funds'' from prior awards to provide the 
Fund with a complete disbursement request at least 10 business days 
prior to the applicable application deadline of this NOFA.
    7. Exception for Applicants impacted by Hurricanes Katrina and/or 
Rita: Please note that the provisions of paragraphs 2 (Failure to meet 
reporting requirements) and 6 (Undisbursed balances) of this section do 
not apply to any Applicant that has an office located in, or that 
provides a significant volume of services or financing to residents of 
or businesses located in, a county that is within a ``major disaster 
area'' as declared by the Federal Emergency Management Agency (FEMA) as 
a result of Hurricanes Katrina and/or Rita. Said requirements are 
waived for those Applicants for the FY 2006 Funding Round and the FY 
2007 Funding Round.
    8. Contact the Fund. Accordingly, Applicants that are prior 
Awardees are advised to: (i) Comply with requirements specified in 
assistance, allocation and/or award agreement(s), and (ii) contact the 
Fund to ensure that all necessary actions are underway for the 
disbursement or de-obligation of any outstanding balance of said prior 
award(s). All outstanding reports, disbursement or compliance questions 
should be directed to the Grants Manager by e-mail at 
grantsmanagement@cdfi.treas.gov; by telephone at (202) 622-8226; by 
facsimile at (202) 622-6453; or by mail to CDFI Fund, 601 13th Street, 
NW., Suite 200 South, Washington, DC 20005. The Fund will respond to 
Applicants' reporting, disbursement or compliance questions between the 
hours of 9 a.m. and 5 p.m. ET, starting the date of the publication of 
this NOFA through February 10, 2006 (for the FY 2006

[[Page 73880]]

Funding Round) and February 12, 2007 (for the FY 2007 Funding Round) 
(two business days before the respective application deadlines). The 
Fund will not respond to Applicants' reporting, disbursement or 
compliance phone calls or e-mail inquiries that are received after 5 
p.m. on said dates, until after the respective funding application 
deadlines.
    9. Limitation on Awards: An Applicant may receive only one award 
through either the CDFI Program or the NACA Program in the same funding 
year. An Applicant may apply under both the CDFI Program and the NACA 
Program, but will not be selected for funding under both. A NACA 
Program Applicant, its Subsidiaries or Affiliates also may apply for 
and receive: (i) A tax credit allocation through the NMTC Program, but 
only to the extent that the activities approved for CDFI Program awards 
are different from those activities for which the Applicant receives a 
NMTC Program allocation; and (ii) an award through the BEA Program 
(subject to certain limitations; refer to the Interim Rule at 12 CFR 
1805.102).
    E. Matching Funds: 1. Matching Funds Requirements in General: 
Applicants responding to this NOFA must obtain non-Federal matching 
funds from sources other than the Federal government on the basis of 
not less than one dollar for each dollar of FA funds provided by the 
Fund (matching funds are not required for TA grants). Matching funds 
must be at least comparable in form and value to the FA award provided 
by the Fund (for example, if an Applicant is requesting a FA grant from 
the Fund, the Applicant must have evidence that it has obtained 
matching funds through grant(s) from non-Federal sources that are at 
least equal to the amount requested from the Fund). Funds used by an 
Applicant as matching funds for a prior FA award under the CDFI Program 
or under another Federal grant or award program cannot be used to 
satisfy the matching funds requirement of this NOFA. If an Applicant 
seeks to use as matching funds monies received from an organization 
that was a prior Awardee under the CDFI Program, the Fund will deem 
such funds to be Federal funds, unless the funding entity establishes 
to the reasonable satisfaction of the Fund that such funds do not 
consist, in whole or in part, of CDFI Program funds or other Federal 
funds. For the purposes of this NOFA, BEA Program awards are not deemed 
to be Federal funds and are eligible as matching funds. The Fund 
encourages Applicants to review the Interim Rule at 12 CFR 1805.500 et 
seq. and matching funds guidance materials on the Fund's Web site for 
further information.
    2. Matching Funds Requirements Per Funding Round: Due to funding 
constraints and the desire to quickly deploy Fund dollars, the Fund 
will not consider for a FA award any Applicant that has no matching 
funds in-hand or firmly committed as of the application deadline under 
this NOFA. Specifically, FA Applicants must meet the following matching 
funds requirements:
    (a) FY 2006 Funding Round: A NACA Program Applicant must 
demonstrate that it has eligible matching funds equal to no less than 
25 percent of the amount of the FA award requested in-hand or firmly 
committed, on or after January 1, 2004 and on or before the application 
deadline. The Fund reserves the right to rescind all or a portion of a 
FA award and re-allocate the rescinded award amount to other qualified 
Applicant(s), if an Applicant fails to obtain in-hand 100 percent of 
the required matching funds by March 15, 2007 (with required 
documentation of such receipt received by the Fund not later than March 
30, 2007), or to grant an extension of such matching funds deadline for 
specific Applicants selected to receive FA, if the Fund deems it 
appropriate. For any Applicant that demonstrates that it has less than 
100 percent of matching funds in-hand or firmly committed as of the 
application deadline, the Fund will evaluate the Applicant's ability to 
raise the remaining matching funds by March 15, 2007.
    (b) FY 2007 Funding Round: A NACA Program Applicant must 
demonstrate that it has eligible matching funds equal to no less than 
25 percent of the amount of the FA award requested in-hand or firmly 
committed, on or after January 1, 2005 and on or before the application 
deadline. The Fund reserves the right to rescind all or a portion of a 
FA award and re-allocate the rescinded award amount to other qualified 
Applicant(s), if an Applicant fails to obtain in-hand 100 percent of 
the required matching funds by March 14, 2008 (with required 
documentation of such receipt received by the Fund not later than March 
31, 2008), or to grant an extension of such matching funds deadline for 
specific Applicants selected to receive FA, if the Fund deems it 
appropriate. For any Applicant that demonstrates that it has less than 
100 percent of matching funds in-hand or firmly committed as of the 
application deadline, the Fund will evaluate the Applicant's ability to 
raise the remaining matching funds by March 14, 2008.
    3. Matching Funds Terms Defined; Required Documentation. (a) 
``Matching funds in-hand'' means that the Applicant has actually 
received the matching funds. If the matching funds are ``in-hand,'' the 
Applicant must provide the Fund with acceptable written documentation 
of the source, form and amount of the Matching Funds (i.e., grant, 
loan, and equity investment). For a loan, the Applicant must provide 
the Fund with a copy of the loan agreement and promissory note. For a 
grant, the Applicant must provide the Fund with a copy of the grant 
letter or agreement. For an equity investment, the Applicant must 
provide the Fund with a copy of the stock certificate and any related 
shareholder agreement. Further, if the matching funds are ``in-hand,'' 
the Applicant must provide the Fund with acceptable documentation that 
evidences its receipt of the matching funds proceeds, such as a copy of 
a check or a wire transfer statement.
    (b) ``Firmly committed matching funds'' means that the Applicant 
has entered into or received a legally binding commitment from the 
matching funds source that the matching funds will be disbursed to the 
Applicant. If the matching funds are ``firmly committed,'' the 
Applicant must provide the Fund with acceptable written documentation 
to evidence the source, form, and amount of the firm commitment (and, 
in the case of a loan, the terms thereof), as well as the anticipated 
date of disbursement of the committed funds.
    (c) The Fund may contact the matching funds source to discuss the 
matching funds and the documentation provided by the Awardee. If the 
Fund determines that any portion of the Applicant's matching funds is 
ineligible under this NOFA, the Fund, in its sole discretion, may 
permit the Applicant to offer alternative matching funds as substitute 
for the ineligible matching funds; provided, however, that (i) the 
Applicant must provide acceptable alternative matching funds 
documentation within 5 business days of the Fund's request and (ii) the 
alternative matching funds documentation cannot increase the total 
amount of Financial Assistance requested by the Applicant.
    4. Special Rule for Insured Credit Unions. Please note that the 
Interim Rule allows an Insured Credit Union to use retained earnings to 
serve as matching funds for a FA grant in an amount equal to: (i) The 
increase in retained earnings that have occurred over the Applicant's 
most recent fiscal year; (ii) the annual average of such increases that 
have occurred over the Applicant's three most recent fiscal years; or 
(iii) the entire retained

[[Page 73881]]

earnings that have been accumulated since the inception of the 
Applicant or such other financial measure as may be specified by the 
Fund. For purposes of this NOFA, if option (iii) is used, the Applicant 
must increase its member and/or non-member shares or total loans 
outstanding by an amount that is equal to the amount of retained 
earnings that is committed as matching funds. This amount must be 
raised by the end of the Awardee's second performance period, as set 
forth in its Assistance Agreement, and will be based on amounts 
reported in the Applicant's Audited or Reviewed Financial Statements or 
NCUA Form 5300 Call Report.
    5. Severe Constraints Exception to Matching Funds Requirement; 
Applicability to Applicants Located in FEMA-Designated Major Disaster 
Areas Created by Hurricanes Katrina and/or Rita: In the case of any 
Applicant that has an office that is located in, or that provides a 
significant volume of services or financing to residents of or 
businesses located in, any county that is within a ``major disaster 
area'' as declared by the Federal Emergency Management Agency (FEMA) as 
a result of Hurricanes Katrina and/or Rita, and that has severe 
constraints on available sources of matching funds, such Applicant may 
be eligible for a ``severe constraints waiver'' (see section 1805.203 
of the Interim Rule) if (i) it can demonstrate to the satisfaction of 
the Fund that an Investment Area(s) or Targeted Population(s) would not 
be adequately served without such a waiver and (ii) it projects to use 
the assistance to address issues resulting from Hurricanes Katrina and/
or Rita (such as a significant volume of loan defaults) or to provide 
financial products, financial services, or Development Services to 
residents of or businesses located in any county that is within a 
``major disaster area'' as declared by FEMA as a result of Hurricanes 
Katrina and/or Rita. If eligible for such a waiver, the Applicant may 
comply with the matching funds requirements of this NOFA as follows: 
(i) The matching funds requirement for such Applicant would be reduced 
to 50 percent (meaning, the Applicant must match 50 percent of the 
Fund's FA award rather than 100 percent), or (ii) such an Applicant may 
provide matching funds in alternative (meaning, non-monetary) forms if 
the Applicant has total assets of less than $100,000 at the time of the 
application deadline, serves non-metropolitan or rural areas, and is 
not requesting more than $25,000 in financial assistance from the Fund. 
In the case of item (i) of this paragraph, the Applicant must 
demonstrate that it has eligible matching funds equal to no less than 
25 percent of the amount of the FA award requested in-hand or firmly 
committed, on or after January 1, 2005 (for the FY 2006 Funding Round) 
or January 1, 2006 (for the FY 2007 Funding Round) and on or before the 
application deadline. The Fund reserves the right to rescind all or a 
portion of a FA award and re-allocate the rescinded award amount to 
other qualified Applicant(s), if an Applicant fails to obtain in-hand 
50 percent of the required matching funds by March 15, 2007 (for the FY 
2006 Funding Round) or March 14, 2008 (for the FY 2007 Funding Round) 
(with required documentation of such receipt received by the Fund not 
later than March 31, 2007 (for the FY 2006 Funding Round) or March 30, 
2008 (for the FY 2007 Funding Round)), or to grant an extension of such 
matching funds deadline for specific Applicants selected to receive FA, 
if the Fund deems it appropriate. For any such Applicant that 
demonstrates that it has less than 50 percent of matching funds in-hand 
or firmly committed as of the application deadline, the Fund will 
evaluate the Applicant's ability to raise the remaining matching funds 
by March 15, 2007 (for the FY 2006 Funding Round) or March 14, 2008 
(for the FY 2007 Funding Round). In the case of item (ii) of this 
paragraph, the NACA Program funding application contains further 
instructions on the type of documentation that the Applicant must 
provide as evidence that such match was received and its valuation. The 
Fund reserves the right, in its sole discretion, to disallow any such 
match for which adequate documentation or valuation is not provided.

IV. Application and Submission Information

    A. Form of Application Submission: Applicants must submit 
applications under this NOFA in paper form. Applications sent by 
facsimile or other form will not be accepted. The NACA Program 
application (including detailed application content requirements and 
electronic templates for application forms) may be found on the Fund's 
Web site: https://www.cdfifund.gov. The Fund will send paper application 
materials to any Applicant that is unable to download the form from the 
Web site. To have application materials sent to you, please contact the 
Fund by telephone at (202) 622-6355, by e-mail at 
cdfihelp@cdfi.treas.gov; or by facsimile at (202) 622-7754. These are 
not toll free numbers. Applicants should allow at least one week for 
the timely receipt of paper application materials in the mail.
    B. Applications must be submitted in the format specified in the 
application instructions. An Applicant requesting only a TA grant must 
submit one original application and three (3) complete copies. An 
Applicant requesting a FA award must submit one original application 
and four (4) complete copies. Do not bind the original application or 
separate the sections with tabs. Each copy must be placed in a three-
ring binder, without staples or other forms of binding, and each 
section must be separated by tabs.
    C. Application Content Requirements: Detailed application content 
requirements are found in the application and guidance. 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. In addition, each 
application must include a valid and current Employer Identification 
Number (EIN), with a letter or other documentation from the Internal 
Revenue Service (IRS) confirming the Applicant's EIN. An application 
that does not include a valid EIN will be deemed incomplete. Incomplete 
applications will be rejected and returned to the sender. Applicants 
should allow sufficient time for the IRS and/or Dun and Bradstreet to 
respond to inquiries and/or requests for identification numbers. Once 
an application is submitted, the Applicant will not be allowed to 
change any element of the application. The preceding sentence does not 
limit the Fund's ability to contact an Applicant for the purpose of 
obtaining clarifying or confirming application information (such as 
DUNS number or EIN information).
    D. MyCDFIFund Accounts: All Applicants must register User and 
Organization accounts in myCDFIFund, the Fund's Internet-based 
interface. As myCDFIFund is the Fund's primary means of communication 
with Applicants and Awardees, organizations must make sure that they 
update the 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.
    E. Application Deadlines; Address for Paper Submissions; Late 
Delivery: Applicants must submit all materials described in and 
required by the application by the applicable deadline.
    1. Application Deadlines: (a) FY 2006 Funding Round: Applications 
must be

[[Page 73882]]

received by the Fund at the address cited below and in accordance with 
the instructions provided on the Fund's Web site, by 5 p.m. ET on 
February 14, 2006.
    (b) FY 2007 Funding Round: Applications must be received by the 
Fund at the address cited below and in accordance with the instructions 
provided on the Fund's Web site, by 5 p.m. ET on February 14, 2007.
    2. Address for Application Submission: A complete application must 
be received at the following address, by the applicable deadline: CDFI 
Fund Grants Manager, NACA Program, Bureau of Public Debt, 200 Third 
Street, Parkersburg, WV 26101. The telephone number to be used in 
conjunction with overnight delivery or mailings to this address is 
(304) 480-6088 (this is not a toll free number). Any documents received 
in any other office, including the Fund's Washington, DC office, will 
be rejected and returned to the sender.
    3. Late Delivery: The Fund will neither accept a late application 
nor any portion of an application that is late; an application that is 
late, or for which any portion is late, will be rejected and returned 
to the sender. An application, including the required signed signature 
page, and all required paper attachments, must be received by the 
applicable time and date set forth above. The Fund will not grant 
exceptions or waivers for late delivery of documents including, but not 
limited to, late delivery that is caused by third parties such as the 
United States Postal Service, couriers or overnight delivery services.
    D. Intergovernmental Review: Not applicable.
    E. Funding Restrictions: For allowable uses of FA proceeds, please 
see the Interim Rule at 12 CFR 1805.301.

V. Application Review Information

    A. Criteria: The Fund will evaluate each application using numeric 
scores with respect to the following five sections:
    1. Market Analysis (25 points): The Fund will evaluate: (i) The 
extent and nature of the economic distress within the designated Target 
Market including the Applicant's understanding of its current and 
prospective customers; and (ii) the extent of demand for the 
Applicant's Financial Products, Development Services, and Financial 
Services within the designated Target Market. The Fund will give 
special consideration to any Applicant that has an office that is 
located in, or that provides a significant volume of services or 
financing to residents of or businesses located in, (i) any county that 
is within the area declared to be a ``major disaster'' by FEMA as a 
result of Hurricanes Katrina and/or Rita; and/or (ii) any state that 
has been declared a ``reception state'' by FEMA. The form and content 
of such special consideration will be further clarified in the NACA 
Program application.
    2. Business Strategy (25 points): The Fund will evaluate the 
Applicant's business strategy for addressing market demand and creating 
community development impact through: (i) Its Financial Products, 
Development Services, and/or Financial Services; (ii) its marketing, 
outreach, and delivery strategy; and (iii) the extent, quality and 
nature of coordination with other similar providers of Financial 
Products and Financial Services, government agencies, and other key 
community development entities within the Target Market. The Fund will 
take into consideration whether the Applicant is proposing to expand 
into a new Target Market.
    3. Community Development Performance and Effective Use (20 points): 
The Fund will evaluate (i) the Applicant's vision for its Target 
Market, specific outcomes or impacts for measuring progress towards 
achieving this vision, and the extent to which this award will allow it 
to achieve them; (ii) the Applicant's track record in providing 
Financial Products, Financial Services, and Development Services to the 
Target Market; (iii) the extent to which proposed activities will 
benefit the Target Market; (iv) the likelihood of achieving the impact 
projections, including the extent to which the activities proposed in 
the Comprehensive Business Plan will expand economic opportunities or 
promote community development within the designated Target Market by 
promoting homeownership, affordable housing development, job creation 
or retention, the provision of affordable financial services, and other 
community development objectives; and (v) the extent to which the 
Applicant will maximize the effective use of the Fund's resources. If 
an Applicant has a prior track record of serving Investment Areas(s) or 
Targeted Population(s), it must demonstrate that (i) it has a record of 
success in serving said Investment Area(s) or Targeted Population(s) 
and (ii) it will expand its operations into a new Investment Area or to 
serve a new Targeted Population, offer more products or services, or 
increase the volume of its current business.
    4. Management (20 points): The Fund will evaluate the Applicant's 
organizational capacity to achieve the objectives set forth in its 
Comprehensive Business Plan as well as its ability to use its award 
successfully and maintain compliance with its Assistance Agreement 
through an evaluation of: (i) The capacity, skills, size and experience 
of the Applicant's current and proposed Governing Board, management 
team, and key staff; and (ii) the Applicant's management controls and 
risk mitigation strategies including policies and procedures for 
portfolio underwriting and review, financial management, risk 
management, management information systems.
    5. Financial Health and Viability (10 points): The Fund will 
evaluate the Applicant's: (i) Audited or otherwise prepared Financial 
Statements; (ii) safety and soundness, including an analysis of the 
Applicant's financial services industry ratios (capital, liquidity, 
deployment and self-sufficiency) and ability to sustain positive net 
revenue; (iii) projected financial health, including its ability to 
raise operating support from sources other than the Fund and its 
capitalization strategy; and (iv) portfolio performance including loan 
delinquency, loan losses, and loan loss reserves. If an Applicant does 
not have 100 percent of the required matching funds in-hand (versus 
committed), the Applicant must demonstrate to the satisfaction of the 
Fund that it will raise the outstanding balance of matching funds 
within the time table set forth above.
    6. Technical Assistance Proposal: Any Applicant applying for a TA 
grant, either alone or in conjunction with a request for a FA award, 
must complete a Technical Assistance Proposal (TAP) as part of its 
application. The TAP consists of a summary of the organizational 
improvements needed to achieve the objectives of the application, a 
budget, and a description of the requested goods and/or services 
comprising the TA award request. The budget and accompanying narrative 
will be evaluated for the eligibility and appropriateness of the 
proposed uses of the TA award (described above). In addition, if the 
Applicant identifies a capacity-building need related to any of the 
evaluation criteria above (for example, if the Applicant requires a 
market need analysis or a community development impact tracking/
reporting system), the Fund will assess its plan to use the TA grant to 
address said needs. An Applicant that is not a Certified CDFI and that 
requests TA to address certification requirements, must explain how the 
requested TA grant will assist the Applicant in meeting the 
certification requirement. An Applicant that requests a TA grant for 
recurring

[[Page 73883]]

activities must clearly describe the benefit that would accrue to its 
capacity or to its Target Market(s) (such as plans for expansion of 
staff, market, or products) as a result of the TA award. If the 
Applicant is a prior Fund Awardee, it must describe how it has used the 
prior assistance and explain the need for additional Fund dollars over 
and above such prior assistance. Such an Applicant also must describe 
the additional benefits that would accrue to its capacity or to the 
Target Market(s) if the Applicant receives another award from the Fund, 
such as plans for expansion of staff, market, or products. The Fund 
will not provide funding for the same activities funded in prior 
awards.
    B. Review and Selection Process: 1. Eligibility and Completeness 
Review: The Fund will review each application to determine whether it 
is complete and the Applicant meets the eligibility requirements set 
forth above. An incomplete application will be rejected as incomplete 
and returned to the sender. If an Applicant does not meet eligibility 
requirements, its application will be rejected and returned to the 
sender.
    2. Substantive Review: If an application is determined to be 
complete and the Applicant is determined to be eligible, the Fund will 
conduct the substantive review of the application in accordance with 
the criteria and procedures described in the Interim Rule, this NOFA 
and the application and guidance. Each FA application will be reviewed 
and scored by multiple readers. Each TA application will be read and 
scored by one reader. Readers may include Fund staff and other experts 
in community development finance and/or Native community development. 
As part of the review process, the Fund may contact the Applicant by 
telephone or through an on-site visit for the purpose of obtaining 
clarifying or confirming application information. The Applicant may be 
required to submit additional information to assist the Fund in its 
evaluation process. Such requests must be responded to within the time 
parameters set by the Fund.
    3. Application Scoring; Ranking: (a) Application Scoring: The Fund 
will evaluate each application on a 100-point scale, comprising the 
five criteria categories described above, and assign numeric scores. An 
Applicant must receive a minimum total score in order to be considered 
for an award. In the case of an Applicant that has previously received 
funding from the Fund through any Fund program, the Fund will consider 
and will deduct points for: (i) The Applicant's noncompliance with any 
active award or award that terminated in calendar year 2005 (for FY 
2006 Funding Round Applicants) and calendar year 2006 (for FY 2007 
Funding Round Applicants), in meeting its performance goals, financial 
soundness covenants (if applicable), reporting deadlines and other 
requirements set forth in the assistance or award agreement(s) with the 
Fund during the Applicant's two complete fiscal years prior to the 
application deadline of this NOFA (generally FY 2004 and FY 2005 for FY 
2006 Funding Round Applicants and FY 2005 and FY 2006 for FY 2007 
Funding Round Applicants); (ii) the Applicant's failure to make timely 
loan payments to the Fund during the Applicant's two complete fiscal 
years prior to the application deadline of this NOFA (if applicable); 
(iii) performance on any prior Assistance Agreement as part of the 
overall assessment of the Applicant's ability to carry out its 
Comprehensive Business Plan; and (iv) funds deobligated from a FY 2003, 
FY 2004 or FY 2005 FA award (if the Applicant is applying for a FA 
award under this NOFA) if (A) the amount of deobligated funds is at 
least $200,000 and (B) the deobligation occurred subsequent to the 
expiration of the period of award funds availability (generally, any 
funds deobligated after the September 30th following the year in which 
the award was made). Any award deobligations that result in a point 
deduction under an application submitted pursuant to either funding 
round of this NOFA will not be counted against any future application 
for FA through the NACA Program. All questions regarding outstanding 
reports or compliance should be directed to the Grants Manager by e-
mail at grantsmanagement@cdfi.treas.gov; by telephone at (202) 622-
8226; by facsimile at (202) 622-7754; or by mail to CDFI Fund, 601 13th 
Street, NW., Suite 200 South, Washington, DC 20005. These are not toll 
free numbers. The Fund will respond to reporting or compliance 
questions between the hours of 9 a.m. and 5 p.m. ET, starting the date 
of the publication of this NOFA through February 10, 2006 (for the FY 
2006 Funding Round) and February 12, 2007 (for the FY 2007 Funding 
Round). The Fund will not respond to reporting or compliance phone 
calls or e-mail inquiries that are received after 5 p.m. on February 
10, 2006 (for the FY 2006 Funding Round) and February 12, 2007 (for the 
FY 2007 Funding Round) until after the applicable funding application 
deadline.
    (b) Ranking: The Fund then will rank the applications by their 
scores, from highest to lowest, based on each Applicant's scores for 
all five criteria categories added together.
    4. Award Selection: The Fund will make its final award selections 
based on the rank order of Applicants by their scores and the amount of 
funds available. Subject to the availability of funding, the Fund will 
award funding in the order of the ranking. In addition, the Fund may 
consider the institutional and geographic diversity of Applicants when 
making its funding decisions.
    5. Insured CDFIs: In the case of Insured Depository Institutions 
and Insured Credit Unions, the Fund will take into consideration the 
views of the Appropriate Federal Banking Agencies; in the case of 
State-Insured Credit Unions, the Fund may consult with the appropriate 
State banking agencies (or comparable entity). The Fund will not 
approve a FA award or a TA grant to any Insured Credit Union (other 
than a State-Insured Credit Union) or Insured Depository Institution 
Applicant that has a CAMEL rating that is higher than a ``3'' or for 
which its Appropriate Federal Banking Agency indicates it has safety 
and soundness concerns, unless the Appropriate Federal Banking Agency 
asserts, in writing, that: (i) An upgrade to a CAMEL 3 rating or better 
(or other improvement in status) is imminent and such upgrade is 
expected to occur not later than September 30, 2006 (for the FY 2006 
Funding Round) or September 30, 2007 (for the FY 2007 Funding Round) or 
within such other time frame deemed acceptable by the Fund, or (ii) the 
safety and soundness condition of the Applicant is adequate to 
undertake the activities for which the Applicant has requested a FA 
award and the obligations of an Assistance Agreement related to such a 
FA award.
    6. Award Notification: Each Applicant will be informed of the 
Fund's award decision either through a Notice of Award if selected for 
an award (see Notice of Award section, below) or written declination if 
not selected for an award. Each Applicant that is not selected for an 
award based on reasons other than completeness or eligibility issues 
may be offered a debriefing on the strengths and weaknesses of its 
application. This feedback will be provided in a format and within a 
timeframe to be determined by the Fund, based on available resources. 
The Fund will notify Awardees by e-mail or fax using the addresses 
maintained in the Awardee's myCDFIFund account (postal mailings will be 
used only in rare cases).

[[Page 73884]]

    7. The Fund reserves the right to reject an application if 
information (including administrative errors) comes to the attention of 
the Fund that either adversely affects an applicant's eligibility for 
an award, or adversely affects the Fund's evaluation or scoring of an 
application, or indicates fraud or mismanagement on the part of an 
Applicant. If the Fund determines that any portion of the application 
is incorrect in any material respect, the Fund reserves the right, in 
its sole discretion, to reject the application. The Fund reserves the 
right to change its eligibility and evaluation criteria and procedures, 
if the Fund deems it appropriate; if said changes materially affect the 
Fund's award decisions, the Fund will provide information regarding the 
changes through the Fund's Web site. There is no right to appeal the 
Fund's award decisions. The Fund's award decisions are final.

VI. Award Administration Information

    A. Notice of Award: The Fund will signify its conditional selection 
of an Applicant as an Awardee by delivering a signed Notice of Award to 
the Applicant. The Notice of Award will contain the general terms and 
conditions underlying the Fund's provision of assistance including, but 
not limited to, the requirement that the Awardee and the Fund enter 
into an Assistance Agreement. The Applicant must execute the Notice of 
Award and return it to the Fund. By executing a Notice of Award, the 
Awardee agrees, among other things, that, if prior to entering into an 
Assistance Agreement with the Fund, information (including 
administrative error) comes to the attention of the Fund that either 
adversely affects the Awardee's eligibility for an award, or adversely 
affects the Fund's evaluation of the Awardee's application, or 
indicates fraud or mismanagement on the part of the Awardee, the Fund 
may, in its discretion and without advance notice to the Awardee, 
terminate the Notice of Award or take such other actions as it deems 
appropriate. Moreover, by executing a Notice of Award, the Awardee 
agrees that, if prior to entering into an Assistance Agreement with the 
Fund, the Fund determines that the Awardee is in default of any 
Assistance Agreement previously entered into with the Fund, the Fund 
may, in its discretion and without advance notice to the Awardee, 
either terminate the Notice of Award or take such other actions as it 
deems appropriate. The Fund reserves the right, in its sole discretion, 
to rescind its award if the Awardee fails to return the Notice of 
Award, signed by the authorized representative of the Awardee, along 
with any other requested documentation, within the deadline set by the 
Fund.
    1. Failure to meet reporting requirements: If an Awardee, or an 
entity that Controls the Awardee, is Controlled by the Awardee or 
shares common management officials with the Awardee (as determined by 
the Fund) is a prior Fund Awardee or allocatee under any Fund program 
and is not current on the reporting requirements set forth in the 
previously executed assistance, allocation or award agreement(s), as of 
the date of the Notice of Award, the Fund reserves the right, in its 
sole discretion, to delay entering into an Assistance Agreement until 
said prior Awardee or allocatee is current on the reporting 
requirements in the previously executed assistance, allocation or award 
agreement(s). Please note that the Fund only acknowledges the receipt 
of reports that are complete. As such, incomplete reports or reports 
that are deficient of required elements will not be recognized as 
having been received. If said prior Awardee or allocatee is unable to 
meet this requirement within the timeframe set by the Fund, the 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 an Applicant is a prior 
Awardee or allocatee under any Fund program and if: (i) It has 
submitted complete and timely reports to the Fund that demonstrate 
noncompliance with a previous assistance, award or allocation 
agreement; and (ii) the Fund has yet to make a final determination as 
to whether the entity is in default of its previous assistance, award 
or allocation agreement, the Fund reserves the right, in its sole 
discretion, to delay entering into an Assistance Agreement, pending 
full resolution, in the sole determination of the Fund, of the 
noncompliance. Further, if another entity that Controls the Applicant, 
is Controlled by the Applicant or shares common management officials 
with the Applicant (as determined by the Fund), is a prior Fund Awardee 
or allocatee and if such entity: (i) Has submitted complete and timely 
reports to the Fund that demonstrate noncompliance with a previous 
assistance, award or allocation agreement; and (ii) the Fund has yet to 
make a final determination as to whether the entity is in default of 
its previous assistance, award or allocation agreement, the Fund 
reserves the right, in its sole discretion, to delay entering into an 
Assistance Agreement, pending full resolution, in the sole 
determination of the Fund, of the noncompliance. If the prior Awardee 
or allocatee in question is unable to satisfactorily resolve the issues 
of noncompliance, in the sole determination of the Fund, the 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, at any time prior to entering into an 
Assistance Agreement through this NOFA, the Fund has made a final 
determination that an Awardee that is a prior Fund Awardee or allocatee 
under any Fund program is in default of a previously executed 
assistance, allocation or award agreement(s), the Fund reserves the 
right, in its sole discretion, to delay entering into an Assistance 
Agreement, until said prior Awardee or allocatee has submitted a 
complete and timely report demonstrating full compliance with said 
agreement within a timeframe set by the Fund. Further, if at any time 
prior to entering into an Assistance Agreement through this NOFA, the 
Fund has made a final determination that another entity that Controls 
the Awardee, is Controlled by the applicant or shares common management 
officials with the Awardee (as determined by the Fund), is a prior Fund 
Awardee or allocatee under any Fund program, and is in default of a 
previously executed assistance, allocation or award agreement(s), the 
Fund reserves the right, in its sole discretion, to delay entering into 
an Assistance Agreement, until said prior Awardee or allocatee has 
submitted a complete and timely report demonstrating full compliance 
with said agreement within a timeframe set by the Fund. If said prior 
Awardee or allocatee is unable to meet this requirement, the Fund 
reserves the right, in its sole discretion, to terminate and rescind 
the Notice of Award and the award made under this NOFA.
    4. Termination in default: If (i) the Fund has made a final 
determination that an Awardee that is a prior Fund Awardee or allocatee 
under any Fund program whose award or allocation was terminated in 
default of such prior agreement; and (ii) the final reporting period 
end date for the applicable terminated agreement falls in Calendar Year 
2005 (for the FY 2006 Funding Round) or Calendar Year 2006 (for the FY 
2007 Funding Round), the Fund reserves the right, in its sole 
discretion, to delay entering into an Assistance Agreement. Further, if 
(i) the Fund has made a final determination that another entity that 
Controls the Awardee, is Controlled by the Awardee or shares

[[Page 73885]]

common management officials with the Awardee (as determined by the 
Fund), is a prior Fund Awardee or allocatee under any Fund program 
whose award or allocation was terminated in default of such prior 
agreement; and (ii) the final reporting period end date for the 
applicable terminated agreement falls in Calendar Year 2005 (for the FY 
2006 Funding Round) or Calendar Year 2006 (for the FY 2007 Funding 
Round), the Fund reserves the right, in its sole discretion, to delay 
entering into an Assistance Agreement.
    5. Deobligated awards: An Awardee that receives a FA award pursuant 
to this NOFA for which an amount over $200,000 is deobligated by the 
Fund subsequent to the expiration of the period of award funds 
availability (generally, any funds deobligated after the September 30th 
following the year in which the award was made) but within the 12 
months prior to the applicable application deadline, may not apply for 
a new award through another NOFA for one CDFI or NACA Program funding 
round after the date of said deobligation.
    B. Assistance Agreement: Each Applicant that is selected to receive 
an award under this NOFA must enter into an Assistance Agreement with 
the Fund in order to receive disbursement of award proceeds. The 
Assistance 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 award; (iii) the approved 
uses of the award; (iv) the approved Target Market to which the funded 
activity must be targeted; (v) performance goals and measures; and (vi) 
reporting requirements for all Awardees. FA and FA/TA Assistance 
Agreements under this NOFA generally will have three-year performance 
periods; TA-only Assistance Agreements generally will have two-year 
performance periods.
    The Fund reserves the right, in its sole discretion, to terminate 
the Notice of Award and rescind an award if the Awardee fails to return 
the Assistance Agreement, signed by the authorized representative of 
the Awardee, and/or provide the Fund with any other requested 
documentation, within the deadlines set by the Fund.
    In addition to entering into an Assistance Agreement, each Awardee 
that receives an award either (i) in the form of a loan, equity 
investment, credit union shares/deposits, or secondary capital, in any 
amount, or (ii) a FA grant in an amount greater than $500,000, must 
furnish to the Fund an opinion from its legal counsel, the content of 
which will be specified in the Assistance Agreement, to include, among 
other matters, an opinion that the Awardee: (A) is duly formed and in 
good standing in the jurisdiction in which it was formed and/or 
operates; (B) has the authority to enter into the Assistance Agreement 
and undertake the activities that are specified therein; and (C) has no 
pending or threatened litigation that would materially affect its 
ability to enter into and carry out the activities specified in the 
Assistance Agreement. Each other Awardee must provide the Fund with a 
good standing certificate (or equivalent documentation) from its state 
(or jurisdiction) of incorporation.
    C. Reporting: 1. Reporting requirements: The Fund will collect 
information, on at least an annual basis, from each Awardee including, 
but not limited to, an Annual Report that comprises the following 
components: (i) Financial Report (not required of Sponsoring Entities); 
(ii) Institution Level Report; (iii) Transaction Level Report (for 
Awardees receiving FA); (iv) Financial Status Report (for Awardees 
receiving TA); (v) Uses of Financial Assistance and Matching Funds 
Report (for Awardees receiving FA awards); (vi) Explanation of 
Noncompliance (as applicable); and (vii) such other information as the 
Fund may require. Each Awardee is responsible for the timely and 
complete submission of the Annual Report, even if all or a portion of 
the documents actually is completed by another entity or signatory to 
the Assistance Agreement. If such other entities or signatories are 
required to provide Institution Level Reports, Transaction Level 
Reports, Financial Reports, or other documentation that the Fund may 
require, the Awardee is responsible for ensuring that the information 
is submitted timely and complete. The Fund reserves the right to 
contact such additional signatories to the Assistance Agreement and 
require that additional information and documentation be provided. The 
Fund will use such information to monitor each Awardee's compliance 
with the requirements set forth in the Assistance Agreement and to 
assess the impact of the NACA Program. The Institution Level Report and 
the Transaction Level Report must be submitted through the Fund's web-
based data collection system, the Community Investment Impact System 
(CIIS). The Financial Report may be submitted through CIIS, or by fax 
or mail to the Fund. All other components of the Annual Report may be 
submitted to the Fund in paper form or other form to be determined by 
the Fund. The Fund reserves the right, in its sole discretion, to 
modify these reporting requirements if it determines it to be 
appropriate and necessary; however, suc