Notice of Funds Availability, 12422-12431 [2010-5025]

Agencies

• Community Development Financial Institutions Fund
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 75, Number 49 (Monday, March 15, 2010)]
[Notices]
[Pages 12422-12431]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5025]



Federal Register / Vol. 75, No. 49 / Monday, March 15, 2010 / 
Notices

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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funds Availability

    Funding Opportunity Title: Notice of Funds Availability (NOFA) 
inviting Applications for the FY 2010 Funding Round of the Capital 
Magnet Fund (CMF).
    Announcement Type: Announcement of funding opportunity.
    Catalog of Federal Domestic Assistance (CFDA) Number: 21.011

DATES: Applications for awards through the FY 2010 Funding Round of the 
CMF must be received by 5 p.m. Eastern Time (ET), April 15, 2010.
    Executive Summary: Subject to funding availability, this NOFA is 
issued in connection with the FY 2010 Funding Round of the CMF (the FY 
2010 Funding Round). The CMF is administered by the Community 
Development Financial Institutions Fund (the CDFI Fund).

I. Funding Opportunity Description

    A. Through the CMF, the CDFI Fund provides financial assistance 
awards to Community Development Financial Institutions (CDFIs), and to 
Nonprofit Organizations that have as at least one of their principal 
purposes the development or management of affordable housing.
    B. The proposed regulations that will eventually govern the CMF 
have been simultaneously published for comment with this NOFA and will 
provide guidance on the requirements of the CMF. The CDFI Fund 
encourages Applicants to review the proposed CMF regulations. Detailed 
application content requirements are found in the applicable funding 
application and related guidance materials. Each capitalized term in 
this NOFA is defined herein, in the application, or in the guidance 
materials.
    C. Definitions: For the purposes of this NOFA, the following terms 
shall have the following definitions:
    1. Act means the Housing and Economic Recovery Act of 2008, as 
amended, Public Law 110-289, section 1131;
    2. Affiliate means any company or entity that Controls, is 
Controlled by, or is under common Control with another company;
    3. Affordable Housing means rental or for-sale single-family or 
multi-family housing that meets the requirements set forth in the 
Assistance Agreement or CMF regulations;
    4. Affordable Housing Activities means the Development, 
Preservation, Rehabilitation, or Purchase of Affordable Housing;
    5. Affordable Housing Fund means a loan, grant, or investment fund, 
managed by the Awardee, whose capital is used to finance Affordable 
Housing Activities;
    6. Appropriate Federal Banking Agency has the same meaning as in 
section 3 of the Federal Deposit Insurance Act, 12 U.S.C. 1813(q), and 
includes, with respect to Insured Credit Unions, the National Credit 
Union Administration;
    7. Applicant means any entity submitting an application for 
assistance under this Notice of Funds Availability;
    8. Appropriate State Agency means an agency or instrumentality of a 
State that regulates and/or insures the member accounts of a State-
Insured Credit Union;
    9. Assistance Agreement means a formal, written agreement between 
the CDFI Fund and an Awardee which specifies the terms and conditions 
of an award under this NOFA;
    10. Awardee means an Applicant selected by the CDFI Fund to receive 
an award pursuant to this NOFA;
    11. Capital Magnet Fund (or CMF) means the program authorized by 
section 1131 of the Act, Public Law 110-289;
    12. Certified Community Development Financial Institution (or 
Certified CDFI) means an entity that has been determined by the CDFI 
Fund to meet the eligibility requirements set forth in 12 CFR 1805.201;
    13. Community Development Financial Institutions Fund (or CDFI 
Fund) means the Community Development Financial Institutions Fund, an 
office of the U.S. Department of Treasury, established under the 
Community Development Banking and Financial Institutions Act of 1994, 
as amended, 12 U.S.C. 4701 et seq.;
    14. Community Service Facility means the physical structure in 
which community-based programs (including, but not limited to, health 
care, childcare, educational, cultural, and/or social services) operate 
which, In Conjunction With Affordable Housing Activities, implements a 
Concerted Strategy to stabilize or revitalize a Low-Income Area or 
Underserved Rural Area;
    15. Concerted Strategy means a formal planning document that 
evidences the connection between Affordable Housing Activities and 
Economic Development Activities or Community Service Facilities. Such 
documents include, but are not limited to, a comprehensive, 
consolidated, or redevelopment plan, or some other local or regional 
planning document adopted or approved by the jurisdiction;
    16. Control means: (i) Ownership, control, or power to vote 25 
percent or more of the outstanding shares of any class of Voting 
Securities of any company, directly or indirectly or acting through one 
or more other persons; (ii) control in any manner over the election of 
a majority of the directors, trustees, or general partners (or 
individuals exercising similar functions) of any company; or (iii) the 
power to exercise, directly or indirectly, a controlling influence over 
the management, credit or investment decisions, or policies of any 
company;
    17. Depository Institution Holding Company means a bank holding 
company or a savings and loan holding company as defined in section 3 
of the Federal Deposit Insurance Act, 12 U.S.C. 1813(w)(1);
    18. Development means land acquisition, demolition of existing 
facilities, and construction of new facilities, which may include site 
improvement, utilities development and rehabilitation of utilities, 
necessary infrastructure, utility services, conversion, and other 
related activities;
    19. Economic Development Activity means the Development, 
Preservation, Rehabilitation, or Purchase of Community Service 
Facilities and/or other physical structures in which neighborhood-based 
businesses operate which, In Conjunction With Affordable Housing 
Activities, implements a Concerted Strategy to stabilize or revitalize 
a Low-Income Area or Underserved Rural Area;
    20. Eligible Project Costs means Leverage Costs plus those costs 
funded directly by a CMF award, exclusive of Operations;
    21. Extremely Low-Income means (i) in the case of owner-occupied 
housing units, income not in excess of 30 percent of the area median 
income and (ii) in the case of rental housing units, income not in 
excess of 30 percent of the area median income, with adjustments for 
smaller and larger families, as determined by HUD;
    22. HOME Program means the HOME Investment Partnership Program set 
forth in the HOME Investment Partnerships Act under title II of the 
Cranston-Gonzalez National Affordable Housing Act, as amended, 42 
U.S.C. 12701 et seq.;
    23. Homeownership means ownership in fee simple title or a 99-year 
leasehold interest in a one- to four-unit dwelling or in a condominium 
unit, or equivalent form of ownership (which shall include cooperative 
housing and mutual housing project). The ownership interest

[[Page 12423]]

may be subject only to the following: (i) Restrictions on resale 
permitted in the Assistance Agreement; (ii) mortgages, deeds of trust, 
or other liens or instruments securing debt on the property; or (iii) 
any other restrictions or encumbrances that do not impair the good and 
marketable nature of title to the ownership interest. For purposes of 
housing located on trust or restricted Indian lands, homeownership 
includes leases of 50 years;
    24. Housing means single- and multi-family residential units, 
including, but not limited to, manufactured housing and manufactured 
housing lots, permanent housing for disabled and/or homeless persons, 
transitional housing, single-room occupancy housing, and group homes. 
Housing also includes elder cottage housing opportunity (ECHO), 24 CFR 
92.258;
    25. HUD means the Department of Housing and Urban Development 
established under the Department of Housing and Urban Development Act 
of 1965, 42 U.S.C. 3532-3537;
    26. In Conjunction With means physically proximate to Affordable 
Housing and reasonably available to residents of Affordable Housing
    27. Insured CDFI means a Certified CDFI that is an Insured 
Depository Institution or an Insured Credit Union;
    28. Insured Credit Union means any credit union, the member 
accounts of which are insured by the National Credit Union Share 
Insurance Fund by the National Credit Union Administration pursuant to 
authority granted in 12 U.S.C. 1783 et seq.;
    29. Insured Depository Institution means any bank or thrift, the 
deposits of which are insured by the Federal Deposit Insurance 
Corporation, 12 U.S.C. 1813(c)(2);
    30. Leveraged Costs means those costs as described Section II.B.4. 
of this NOFA and in the CMF regulations;
    31. Loan Guarantee means an agreement to indemnify the holder of a 
loan all or a portion of the unpaid principal balance in case of 
default by the borrower;
    32. Loan Loss Reserves means funds that the Applicant or Awardee 
will set aside in the form of cash reserves, or through accounting-
based accrual reserves, to cover losses on loans, accounts, and notes 
receivable, or for related purposes that the CDFI Fund deems 
appropriate;
    33. Low-Income means (i) in the case of owner-occupied housing 
units, income not in excess of 80 percent of area median income and 
(ii) in the case of rental housing units, income not in excess of 80 
percent of area median income, with adjustments for smaller and larger 
families, as determined by HUD;
    34. Low-Income Area or LIA means a census tract or block numbering 
area in which the median income does not exceed 80 percent of the 
median income for the area in which such census tract or block 
numbering area is located. With respect to a census tract or block 
numbering area located within a Metropolitan Area, the median family 
income shall be at or below 80 percent of the Metropolitan Area median 
family income or the national Metropolitan Area median family income, 
whichever is greater. In the case of a census tract or block numbering 
area located outside of a Metropolitan Area, the median family income 
shall be at or below 80 percent of the statewide Non-Metropolitan Area 
median family income or the national Non-Metropolitan Area median 
family income, whichever is greater;
    35. Low-Income Families means those households that reside within 
the boundaries of the United Sates (which shall encompass any State of 
the United States, the District of Columbia or any territory of the 
United States, Puerto Rico, Guam, American Samoa, the Virgin Islands, 
and the Northern Mariana Islands) meeting the criteria as set forth in 
Section I.C.(34) of this NOFA;
    36. Low Income Housing Tax Credit Program or LIHTC Program means 
the program as set forth under Title I of the U.S. Housing Act of 1937, 
as amended, 42 U.S.C. 1437 et seq.;
    37. Metropolitan Area means an area designated as such by the 
Office of Management and Budget pursuant to 44 U.S.C. 3504(e) and 31 
U.S.C. 1104(d) and Executive Order 10253, as amended, 16 FR 5605;
    38. Non-Metropolitan Area means a county or adjacent counties not 
contained within either a Consolidated Metropolitan Statistical Area 
(CMSA) or a Primary Metropolitan Statistical Area (PMSA), as such areas 
are defined in OMB Bulletin No. 99-04, with respect to the most recent 
decennial census. Non-Metropolitan Counties can be identified in the 
CDFI Fund's mapping system (CIMS), and are also listed on the CDFI 
Fund's Web site;
    39. Nonprofit Organization means any corporation, trust, 
association, cooperative, or other organization that is (i) designated 
as a nonprofit or not-for-profit entity under the laws of the 
organization's State of formation and (ii) exempt from Federal income 
taxation pursuant to the Internal Revenue Code of 1986;
    40. Non-Regulated CDFI means any entity meeting the eligibility 
requirements described in 12 CFR 1805.200 which is not a Depository 
Institution Holding Company, Insured Depository Institution, or Insured 
Credit Union;
    41. Operations means all allowable expenses as defined by Office of 
Management and Budget (OMB) Circular A-122, ``Cost Principles for Non-
Profit Organizations,'' and OMB Circular A-87, ``Cost Principles for 
State, Local, and Indian Tribal Governments,'' incurred by the Awardee 
related to the administration, operation, and implementation of a CMF 
award.
    42. Participating Jurisdiction means a jurisdiction designated by 
HUD, as a participating jurisdiction under the HOME Program in 
accordance with the requirements of 24 CFR 92.105;
    43. Preservation means: (i) Activities to refinance, with or 
without Rehabilitation, single-family or multi-family rental property 
mortgages that, at the time of refinancing, are subject to 
affordability and use restrictions under State or federal affordable 
housing programs, including but not limited to, the HOME Program, the 
LIHTC Program, the Section 8 Tenant-Based Assistance and the Section 8 
Rental Voucher programs (24 CFR part 982), or the Section 515 Rural 
Rental Housing program (7 CFR Part 3560), hereinafter referred to as 
``similar State or federal affordable housing programs'', where such 
refinancing has the effect of extending the term of any affordability 
and use restrictions on the properties; (ii) activities to refinance 
and acquire single-family or multi-family properties that, at the time 
of refinancing or acquisition, were subject to affordability and use 
restrictions under similar State or federal affordable housing 
programs, by the former tenants of such properties, where such 
refinancing has the effect of extending the term of any affordability 
and use restrictions on the properties; or (iii) activities to 
refinance the mortgages of single-family, owner-occupied housing that 
at the time of refinancing are subject to affordability and use 
restrictions under similar State or federal affordable housing 
programs, where such refinancing has the effect of extending the term 
of any affordability and use restrictions on the properties;
    44. Purchase means to acquire ownership in fee simple title or a 
99- year leasehold interest in a one-to-four unit dwelling or in a 
condominium unit, through an exchange of money;
    45. Rehabilitation means any repairs and or capital improvements 
that contribute to the long-term preservation, current building code 
compliance, habitability, sustainability, or energy efficiency of 
affordable housing;

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    46. Revolving Loan Fund means a pool of funds managed by the 
Applicant or Awardee wherein repayments on Affordable Housing 
Activities loans, Economic Development Activities loans and/or 
Community Services Facilities loans are used to finance additional 
loans;
    47. Risk-Sharing Loan means loans for Affordable Housing Activities 
and/or Economic Development Activities in which the risk of borrower 
default is shared by the Applicant or Awardee with other lenders (e.g., 
participation loans);
    48. Service Area means the geographic area in which the Applicant 
proposes to use CMF funding, and the geographic area approved by the 
CDFI Fund in which the Awardee shall use CMF funding as set forth in 
its Assistance Agreement;
    49. Single-family housing means a one- to four-family residence, 
condominium unit, cooperative unit, combination of manufactured housing 
and lot, or manufactured housing lot;
    50. State means the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Island, Guam, the Virgin Islands, American Samoa, the 
Trust Territory of the Pacific Islands, and any other territory of the 
United States;
    51. State-Insured Credit Union means any credit union that is 
regulated by, and/or the member accounts of which are insured by, a 
State agency or instrumentality;
    52. Subsidiary means any company which is owned or Controlled 
directly or indirectly by another company;
    53. Underserved Rural Area means a Non-Metropolitan Area that (i) 
Qualifies as a Low-Income Area; (ii) is experiencing housing stress 
evidenced by 30 percent or more of resident households with one or more 
of these housing conditions in the last decennial census: (A) Lacked 
complete plumbing, (B) lacked complete kitchen, (C) paid 30 percent or 
more of income for owner costs or rent, or (D) had more than 1 person 
per room; or (iii) is remote-rural county (i.e., is neither located in, 
nor adjacent to, a Non-Metropolitan Area);
    54. Very Low-Income means (i) in the case of owner-occupied housing 
units, income not greater than 50 percent of the area median income; 
and (ii) in the case of rental housing units, income not greater than 
50 percent of the area median income, with adjustments for smaller and 
larger families, as determined by HUD.
    D. 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. Award Information

    A. Funding Availability: Through this NOFA, the CDFI Fund expects 
that it will award approximately $80 million in appropriated funds for 
the FY 2010 Funding Round.
    B. Funding Cap: The CDFI Fund is prohibited from obligating more 
than 15 percent of the available funding in the aggregate to any 
Applicant, its Subsidiaries and Affiliates in the same funding year. 
The CDFI Fund anticipates that the maximum award for the FY 2010 
Funding Round will therefore be $12 million in the aggregate to any 
Applicant, its Subsidiaries and Affiliates.
    C. Types of Awards: The CDFI Fund will provide CMF awards in the 
form of grants. Applicants may request a grant of up to $12 million 
under this award announcement. The CDFI Fund reserves the right, in its 
sole discretion, to provide a CMF 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. CMF awards 
must be used to support the Applicant's activities; CMF awards cannot 
be used to support the activities of, or otherwise be ``passed 
through'' to, third-party entities, whether Affiliates, Subsidiaries, 
or others, without the prior written permission of the CDFI Fund.
    1. Eligible Uses: An Applicant may submit an application for a CMF 
award intended to support financing activities related to (i) the 
Development, Preservation, Rehabilitation, or Purchase of Affordable 
Housing for primarily Low-, Very Low- and Extremely Low-Income 
families, and (ii) Economic Development Activities or Community Service 
Facilities, such as day care centers, workforce development centers, 
and health care clinics. CMF awards can be used as follows: (i) To 
provide Loan Loss Reserves, (ii) to capitalize a Revolving Loan Fund, 
(iii) to capitalize an Affordable Housing Fund, (iv) to capitalize a 
fund to support Economic Development Activities and Community Service 
Facilities, (v) for Risk-Sharing Loans, (vii) to provide Loan 
Guarantees, and (viii) to support Operations pertaining to the 
administration of the CMF award.
    2. Limitations on Use: Each Awardee that uses CMF funding to 
support Affordable Housing Activities shall ensure that 100 percent of 
Eligible Project Costs pertaining to such activities are attributable 
to housing units that meet the CMF affordability qualifications for 
Homeownership and rental properties for families whose annual income 
does not exceed 120 percent of the median income for the area. In 
addition, greater than 50 percent of the Eligible Project Costs must be 
attributable to housing units that meet the CMF affordability 
qualifications for Homeownership and rental units for either Low-
Income, Very Low-Income, or Extremely Low-Income Families. These 
affordability restrictions must remain in place for a period of 10 
years from the date of project completion, which includes the transfer 
of title, completion of construction, and other criteria as described 
in the Awardee's Assistance Agreement.
    Awardees may use no more than 30 percent of their CMF award 
pursuant to this NOFA to support Economic Development Activities and 
Community Service Facilities. In addition, no more than five percent of 
an Awardee's CMF grant pursuant to this NOFA may be used for 
Operations.
    3. Designation of a Service Area: Each Applicant shall indicate its 
proposed Service Area in its application and shall use its CMF award in 
the Service Area approved by the CDFI Fund and designated in its 
Assistance Agreement.
    4. Leverage: Each CMF award is expected to result in total Eligible 
Project Costs equal to at least ten (10) times the CMF award amount. 
Such costs may be for activities including Affordable Housing 
Activities, Economic Development Activities or Community Service 
Facilities. Thus, an Awardee shall demonstrate that it leveraged its 
CMF award at least 10 times the CMF grant amount or some other standard 
established by the CDFI Fund in the Awardee's Assistance Agreement. For 
the purposes of this NOFA, Eligible Project Costs include Leveraged 
Costs plus those costs funded directly by a CMF award, excluding costs 
associated with Operations. Leveraged Costs are costs that exceed the 
dollar amount of the Awardee's CMF contribution to each CMF-funded 
activity. An Awardee may report to the CDFI Fund all Leveraged Costs 
with the following limitations:
    (a) No costs attributable to Operations may be reported as 
Leveraged Costs.
    (b) No costs attributable to prohibited uses as defined in the 
Assistance Agreement may be reported as Leveraged Costs.
    An Awardee shall self-report its leveraging information through a 
standardized data collection system developed by the CDFI Fund. 
Consequently, an Awardee should maintain appropriate documentation,

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such as audited financial statements, wire transfers documents, pro-
formas, and other relevant records, to support its reports.
    5. Commitment for Use: CMF awards shall be committed for use within 
two years of the effective date of the Awardee's Assistance Agreement. 
An Awardee shall demonstrate that its CMF award is committed by having 
executed a written, legally binding agreement under which CMF 
assistance will be provided to the developer or project sponsor for an 
identifiable project under which:
    (a) Construction can reasonably be expected to start within 12 
months of the agreement date; or
    (b) Property title will be transferred within six months of the 
agreement date.
    An Awardee shall make an initial disbursement of its CMF award for 
Affordable Housing Activities, Economic Development Activities, or 
Community Service Facilities within three years of the effective date 
of its Assistance Agreement.
    6. Project Completion: All projects funded through CMF grants must 
be placed into service within 5 years of the effective date of the 
Assistance Agreement.
    7. Limitation on Awards: An Applicant may receive only one award 
through the FY 2010 Funding Round of the CMF. A CMF Applicant, its 
Subsidiaries, or Affiliates also may apply for and receive an award 
through the CDFI Program, Native American CDFI Assistance (NACA) 
Program, Bank Enterprise Award (BEA) Program, Financial Education and 
Counseling (FEC) Pilot Program, or New Markets Tax Credit (NMTC) 
Program, but only to the extent that the activities approved for CMF 
awards are different from those activities for which the Applicant 
receives an award under another CDFI Fund program.
    D. Assistance Agreement: Each Awardee under this NOFA must sign an 
Assistance Agreement in order to receive a disbursement of award 
proceeds by the CDFI Fund. The Assistance Agreement will include a 
Notice of Award and these documents will 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 following sets forth the eligibility 
requirements that each Applicant must meet in order to be eligible to 
apply for assistance under this NOFA.
    1. CMF Applicant Categories: All Applicants for CMF awards through 
this NOFA must be Certified CDFIs or eligible Nonprofit Organizations. 
An Applicant will be deemed eligible to apply for a CMF award if it is:
    (a) A Certified CDFI that has been in existence as a legally formed 
entity for at least three years prior to the application deadline under 
this NOFA;
    (b) An entity that has been in existence as a legally formed entity 
for at least three years prior to the application deadline under this 
NOFA, and the CDFI Fund has received that entity's CDFI certification 
application materials by April 1, 2010; or
    (c) A Nonprofit Organization that: (i) Has been in existence as a 
legally formed entity for at least three years prior to the application 
deadline under this NOFA; (ii) demonstrates, through articles of 
incorporation, by-laws, or other board-approved documents, that the 
development or management of affordable housing are among its principal 
purposes; and (iii) can demonstrate that at least one-third of the 
Applicant's resources (either as a portion of total staffing or as a 
portion of total assets) are dedicated to the development or management 
of affordable housing.
    2. CDFI Certification Status: Eligible CMF Applicants include 
Certified CDFIs and certain entities that have applied for CDFI 
certification, defined as follows:
    (a) Certified CDFIs: For purposes of this NOFA, a Certified CDFI is 
an entity that has received official notification from the CDFI Fund 
that it meets all CDFI certification requirements as of the date of 
publication of this NOFA, the certification of which has not expired, 
and that has not been notified by the CDFI Fund that its certification 
has been terminated. In cases where the CDFI Fund provided certified 
CDFIs with written notification that their certifications had been 
extended, the CDFI Fund will consider the extended certification date 
(the later date) to determine whether those certified CDFIs meet this 
eligibility requirement. When applicable, each such Applicant must 
submit a Certification of Material Events form to the CDFI Fund not 
later than April 1, 2010 (see Table 1--FY 2010 CMF Deadlines). The 
Certification of Material Events form can be found on the CDFI Fund's 
Web site at https://www.CDFIfund.gov.
    (b) Entities that have applied for CDFI Certification: For purposes 
of this NOFA, these are entities from which the CDFI Fund has received 
a complete CDFI Certification application not later than April 1, 2010. 
Please note: While an entity that has applied for CDFI certification 
may be deemed eligible to apply for a CMF award, the CDFI Fund will not 
provide an award to such an entity unless and until the CDFI Fund has 
officially certified the organization as a CDFI.
    B. Prior Awardees: Applicants must be aware that success in a prior 
round of any of the CDFI Fund's programs is not indicative of success 
under this NOFA. For purposes of this section, the CDFI Fund will 
consider an Affiliate to be any entity that meets the definition of 
Affiliate in this NOFA or any entity otherwise identified as an 
Affiliate by the Applicant in its funding application under this NOFA. 
Prior awardees should note the following:
    1. Failure to Meet Reporting Requirements: The CDFI Fund will not 
consider an application submitted by an Applicant if the Applicant, or 
an Affiliate of the Applicant, is a prior awardee or allocatee under 
any CDFI Fund program and is not current on the reporting requirements 
set forth in a previously executed assistance, allocation, or award 
agreement(s), as of the applicable application deadline of this NOFA. 
Please note that the CDFI Fund only acknowledges the receipt of reports 
that are complete. As such, incomplete reports or reports that are 
deficient of required elements will not be recognized as having been 
received.
    2. Pending Resolution of Noncompliance: If an Applicant is a prior 
awardee or allocatee under any CDFI Fund program and if (i) it has 
submitted complete and timely reports to the CDFI Fund that demonstrate 
noncompliance with a previous assistance, allocation or award 
agreement, and (ii) the CDFI 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 CDFI Fund will consider the 
Applicant's application under this NOFA pending full resolution, in the 
sole determination of the CDFI Fund, of the noncompliance. Further, if 
an Affiliate of the Applicant is a prior CDFI Fund awardee or allocatee 
and if such entity (i) has submitted complete and timely reports to the 
CDFI Fund that demonstrate noncompliance with a previous assistance, 
allocation, or award agreement, and (ii) the CDFI 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 CDFI Fund will 
consider the Applicant's application under this NOFA pending full 
resolution, in the sole determination of the CDFI Fund, of the 
noncompliance.
    3. Default Status: The CDFI Fund will not consider an application 
submitted by an Applicant that is a prior awardee or allocatee under 
any CDFI Fund

[[Page 12426]]

program if, as of the applicable application deadline of this NOFA, the 
CDFI Fund has made a final determination that such Applicant is in 
default of a previously executed assistance, 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 CDFI Fund has made a final determination that an 
Affiliate of the Applicant is a prior awardee or allocatee under any 
CDFI Fund program and has been determined by the CDFI Fund to be in 
default of a previously executed assistance, allocation, or award 
agreement(s). Such entities will be ineligible to apply for an award 
pursuant to this NOFA so long as the Applicant's, or its Affiliate's, 
prior award or allocation remains in default status or such other time 
period as specified by the CDFI Fund in writing.
    4. Termination in Default: The CDFI Fund will not consider an 
application submitted by an Applicant that is a prior awardee or 
allocatee under any CDFI Fund program if (i) within the 12-month period 
prior to the applicable application deadline of this NOFA, the CDFI 
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 within the 12-month period 
prior to the application deadline of this NOFA. Further, an entity is 
not eligible to apply for an award pursuant to this NOFA if (i) within 
the 12-month period prior to the applicable application deadline, the 
CDFI Fund has made a final determination that an Affiliate of the 
Applicant is a prior awardee or allocatee under any CDFI 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 within the 12-month 
period prior to the application deadline of this NOFA.
    5. Undisbursed Award Funds: The CDFI Fund will not consider an 
application submitted by an Applicant that is a prior awardee under any 
CDFI Fund program if the Applicant has a balance of undisbursed award 
funds (as 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 an Affiliate of 
the Applicant is a prior awardee under any CDFI Fund program, and has a 
balance of undisbursed award 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 CDFI Fund) is a prior awardee under any CDFI Fund program, and has 
a balance of undisbursed award funds under said prior award(s), as of 
the applicable application deadline of this NOFA, the CDFI Fund will 
include the combined awards of the Applicant and such Affiliated 
entities when calculating the amount of undisbursed award funds.
    For purposes of the calculation of undisbursed award funds for the 
BEA Program, only awards made to the Applicant (and any Affiliates) 
three to five calendar years prior to the end of the calendar year of 
the application deadline of this NOFA are included (``includable BEA 
awards''). Thus, for purposes of this NOFA, undisbursed BEA Program 
award funds are the amount of FYs 2005, 2006, and 2007 awards that 
remain undisbursed as of the application deadline of this NOFA.
    For purposes of the calculation of undisbursed award funds for the 
CDFI Program and the Native Initiatives Funding Programs, only awards 
made to the Applicant (and any Affiliates) two to five calendar years 
prior to the end of the calendar year of the application deadline of 
this NOFA are included (``includable CDFI/NI awards''). Thus, for 
purposes of this NOFA, undisbursed CDFI Program and NI awards are the 
amount of FYs 2005, 2006, 2007 and 2008 awards that remain undisbursed 
as of the application deadline of this NOFA. The term ``Native 
Initiatives Funding Programs'' refers to the NACA Program and all prior 
funding programs, through which funds are no longer available, 
including the Native American CDFI Technical Assistance (NACTA) 
Component of the CDFI Program, the Native American CDFI Development 
(NACD) Program, and the Native American Technical Assistance (NATA) 
Component of the CDFI Program.
    To calculate total includable BEA/CDFI/NI awards: amounts that are 
undisbursed as of the application deadline of this NOFA cannot exceed 
five percent of the total includable awards.
    The ``undisbursed award funds'' calculation does not include: (i) 
Tax credit allocation authority made available through the NMTC 
Program; (ii) any award funds for which the CDFI 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 in writing by the CDFI Fund or deobligated by 
the CDFI Fund; or (iv) any award funds for an award that does not have 
a fully executed assistance or award agreement. The CDFI Fund strongly 
encourages Applicants requesting disbursements of ``undisbursed funds'' 
from prior awards to provide the CDFI Fund with a complete disbursement 
request at least 10 business days prior to the application deadline of 
this NOFA.
    6. Contact the CDFI Fund: Applicants that are prior CDFI Fund 
awardees are advised to: (i) Comply with requirements specified in 
assistance, allocation, and/or award agreement(s), and (ii) contact the 
CDFI Fund to ensure that all necessary actions are underway for the 
disbursement or deobligation of any outstanding balance of said prior 
award(s). An Applicant that is unsure about the disbursement status of 
any prior award should contact the CDFI Fund's Senior Resource Manager 
via e-mail at CDFI.disburseinquiries@cdfi.treas.gov.
    7. Entities that Submit Applications Together with Affiliates; 
Applications from Common Enterprises:
    (a) As part of the CMF application review process, the CDFI Fund 
considers whether Applicants are Affiliates, as such term is defined in 
the CMF application. If an Applicant and its Affiliates wish to submit 
CMF applications, they must do so collectively, in one application; an 
Applicant and its Affiliates may not submit separate CMF applications. 
If Affiliated entities submit multiple applications, the CDFI Fund 
reserves the right either to reject all such applications received or 
to select a single application as the only application considered for 
an award.
    For purposes of this NOFA, in addition to assessing whether 
applicants meet the definition of the term ``Affiliate,'' the CDFI Fund 
will consider: (i) Whether the activities described in applications 
submitted by separate entities are, or will be, operated and/or managed 
as a common enterprise that, in fact or effect, may be viewed as a 
single entity; (ii) whether the applications submitted by separate 
entities contain significant narrative, textual or other similarities, 
and (iii) whether the business strategies and/or activities described 
in applications submitted by separate entities are so closely related, 
in fact or effect, they

[[Page 12427]]

may be viewed as substantially identical applications. In such cases, 
the CDFI Fund reserves the right either to reject all applications 
received from all such entities; to select a single application as the 
only one that will be considered for an award; and, in the event that 
an application is selected to receive an award, to deem certain 
activities ineligible.
    (b) Furthermore, an Applicant that receives an award in this CMF 
round may not become an Affiliate of or member of a common enterprise 
(as defined above) with another Applicant that receives an award in 
this CMF round at any time after the submission of a CMF application 
under this NOFA. This requirement will also be a term and condition of 
the Assistance Agreement (see Section VI.B. of this NOFA and additional 
application guidance materials on the CDFI Fund's Web site at https://
www.cdfifund.gov for more details).

IV. Application and Submission Information

    A. MyCDFIFund Accounts: All Applicants must register User and 
Organization accounts in myCDFIFund, the CDFI Fund's Internet-based 
interface. An Applicant must be registered as both a User and an 
Organization in myCDFIFund as of the applicable application deadline in 
order to be considered to have submitted a complete application. As 
myCDFIFund is the CDFI Fund's primary means of communication with 
Applicants and Awardees, organizations must make sure that they update 
the contact information in their myCDFIFund accounts before the 
applicable application deadline. For more information on myCDFIFund, 
please see the ``Frequently Asked Questions'' link posted at https://www.cdfifund.gov/myCDFI/Help/Help.asp.
    B. Form of Application Submission: Applicants must submit 
applications under this NOFA electronically. Applications sent by mail, 
facsimile, or other form will not be permitted, except in circumstances 
that the CDFI Fund, in its sole discretion, deems acceptable.
    C. Applications Submitted via myCDFIFund: Applicants must submit 
applications under this NOFA electronically, through myCDFIFund, the 
CDFI Fund's Internet-based interface. Please note that the CDFI Fund 
will not accept applications through Grants.gov. Applications sent by 
mail, facsimile, or other form will generally not be accepted, except 
in circumstances approved by the CDFI Fund, in its sole discretion. The 
CDFI Fund will post to its Web site at https://www.cdfifund.gov 
instructions for accessing and submitting an application as soon as 
they become available.
    D. 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 an EIN is incomplete and cannot be transmitted to 
the CDFI Fund. 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 sentences do not limit the CDFI Fund's ability to contact an 
Applicant for the purpose of obtaining clarifying or confirming 
application information (such as a DUNS number or EIN information).
    E. Under the Paperwork Reduction Act (44 U.S.C. chapter 35), an 
agency may not conduct or sponsor a collection of information, and an 
individual is not required to respond to a collection of information, 
unless it displays a valid OMB control number. Pursuant to the 
Paperwork Reduction Act, the application has been assigned the 
following control number: 1559-0036.
    F. Application Deadlines:
    1. The following are the deadlines for submission of the documents 
related to the FY 2010 Funding Round:

                                         Table 1--FY 2010 CMF Deadlines
                                            [All 5 p.m. ET deadlines]
----------------------------------------------------------------------------------------------------------------
                                                                                           Last date to contact
            Applicant Type                     Document                 Deadline                CDFI Fund
----------------------------------------------------------------------------------------------------------------
Certified CDFIs......................  Certification of         Thursday, April 1, 2010  Tuesday, March 30,
                                        Material Events.                                  2010.
Entities Applying for CDFI             CDFI Certification       Thursday, April 1, 2010  Tuesday, March 30,
 Certification.                         Application.                                      2010.
All Applicants.......................  CMF Funding Application  Thursday, April 15,      Tuesday, April 13,
                                                                 2010.                    2010.
----------------------------------------------------------------------------------------------------------------

    All CMF funding applications must be electronic and submitted 
through myCDFIFund. No paper submittals or attachments will be 
accepted.
    2. Late Delivery: The CDFI 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. The CDFI Fund will not grant exceptions or waivers. Any 
application that is deemed ineligible will not be returned to the 
Applicant.
    G. Intergovernmental Review: Not applicable.
    H. Funding Restrictions: CMF awards may not be used for the 
following: (i) Political activities; (ii) advocacy; (iii) lobbying, 
whether directly or through other parties; (iv) counseling services 
(including homebuyer or financial counseling); (v) travel expenses; 
(vi) preparing or providing advice on tax returns; (vii) emergency 
shelters (including shelters for disaster victims); (viii) nursing 
homes; (ix) convalescent homes; (x) residential treatment facilities; 
(xi) correctional facilities; (xii) student dormitories; or (xiii) 
other uses identified in the Awardee's Assistance Agreement.

V. Application Review Information

    A. Format: Each narrative response required in the application has 
limitations with respect to the amount of words or characters that the 
Applicant may provide. Applicants are encouraged to read each question 
carefully and to remain within limitations set forth in the question, 
to avoid the electronic application submission form from truncating the 
Applicant's response. Also, the CDFI Fund will read only information 
requested in the application and will not read attachments that have 
not been specifically requested in this NOFA or the application.

[[Page 12428]]

    B. Criteria: Applicants will be evaluated across several key areas:
    1. Business Strategy: The Applicant must provide a detailed 
strategy for implementing its CMF award. The Applicant is required to 
identify and describe, among other things: (i) Its track record of 
financing Affordable Housing and related activities; (ii) its proposed 
activities including a description of the financing tools and specific 
debt or equity products that will be offered; and (iii) its pipeline of 
proposed projects and activities.
    2. Leveraging Strategy: The Applicant must be able to demonstrate 
its ability to leverage CMF award funding. To this end, the Applicant 
must identify and describe, among other things, its anticipated 
strategy for leveraging dollars, including private capital: (i) At the 
pre-investment stage (e.g., use of the CMF award to secure additional 
third-party capital prior to investing into projects); (ii) through 
reinvestment of CMF award dollars into additional projects (e.g., use 
of the CMF award to fund a revolving loan pool to invest in projects); 
and (iii) at the project level (e.g., use of the CMF award to invest in 
projects with total costs in excess of the CMF award investment).
    3. Community Impact: The Applicant must describe the extent to 
which the Applicant will target its activities towards underserved 
populations and areas of high housing need; and describe the extent to 
which the Applicant's strategy will have positive community development 
and economic impacts.
    4. Organizational Capacity: The Applicant must demonstrate its 
ability and capacity to undertake its proposed activities, use its 
award successfully, and maintain compliance with its Assistance 
Agreement. To this end, the Applicant will be required to identify and 
describe, among other things: (i) Its management team and key staff; 
(ii) the role of its governing board or advisory board; (iii) its 
timelines for committing its CMF award funds to activities and 
projects; (iv) its procedures and systems to track and ensure 
compliance with the affordability and community impact commitments; (v) 
its current financial condition, including results of recent audits; 
and (vi) its experience administering other public funds including 
federal government awards, if applicable.

C. Review and Selection Process

    1. Eligibility and Completeness Review: The CDFI Fund will review 
each application to determine whether it is complete and the Applicant 
meets the eligibility requirements set forth above. An incomplete 
application that does not meet eligibility requirements will be 
rejected. Any application that does not meet eligibility requirements 
will not be returned to the Applicant.
    2. Substantive Review: If an application is deemed to be complete 
and the Applicant is determined to be eligible, the CDFI Fund will 
conduct the substantive review of the application in accordance with 
the criteria and procedures described in this NOFA, the application, 
and any application guidance. As part of the review process, the CDFI 
Fund may contact the Applicant by telephone, e-mail, mail, or through 
an on-site visit for the sole purpose of obtaining clarifying or 
confirming application information. The CDFI Fund reserves the right to 
collect such additional information from Applicants as it deems 
appropriate. After submitting its application, the Applicant will not 
be permitted to revise or modify its application in any way nor attempt 
to negotiate the terms of an award. If contacted for clarifying or 
confirming information, the Applicant must respond within the time 
parameters set by the CDFI Fund.
    3. Application Review; Selection: Awards will be made based on 
Applicants' experience and ability to use CMF award dollars to support 
Affordable Housing Activities, Economic Development Activities, and 
Community Service Facilities, in accordance with the criteria set forth 
above in Section V.B.
    (a) Quantitative Peer Review: The CDFI Fund may undertake an 
initial review of all applications prior to assigning the application 
to a reviewer. This review will be based upon quantitative information 
provided by the Applicant in its application materials, with specific 
focus on: (i) The Applicant's commitments to using CMF award dollars to 
generate additional funds through leveraging; (ii) the Applicant's 
commitments to targeting projects that serve underserved populations or 
areas of high housing need; and (iii) the Applicant's demonstrated 
ability to obligate funds and undertake activities in a timely matter. 
Applicants that, when compared with the rest of the Applicant pool, 
score lowest in one or more of these key areas may not be forwarded to 
the next level of review.
    (b) Application Review: Reviewers will be assigned a set number of 
applications to review. Once the reviewer has completed all of his/her 
review assignments, he/she will provide a score for each of the 
applications that was reviewed, in accordance with the scoring 
criterion outlined in the application materials.
    (c) Evaluating Prior Award Performance: In the case of an Applicant 
that has received awards from other federal programs, the CDFI Fund 
reserves the right to contact officials from the appropriate federal 
agency or agencies to determine whether the Awardee is in compliance 
with current or prior award agreements, and to take such information 
into consideration before making a CMF award. In the case of an 
Applicant that has previously received funding through any CDFI Fund 
program, the CDFI Fund will consider and may, in its discretion, deduct 
points for those Applicants (or their Affiliates) that have a history 
of providing late reports. The CDFI Fund may also bar from 
consideration an Applicant that has, in any proceeding instituted 
against the Applicant in, by, or before any court, governmental, or 
administrative body or agency, received a final determination within 
the last three years indicating that the Applicant has discriminated on 
the basis of race, color, national origin, disability, age, marital 
status, receipt of income from public assistance, religion, or sex.
    (d) Selection: After all applications have been reviewed and 
scored, the CDFI Fund will make award determinations in descending 
order of scores, subject to Applicants' meeting all eligibility 
requirements; provided, however, that the CDFI Fund, in its sole 
discretion, reserves the right to reject an application and/or adjust 
award amounts as appropriate based on information obtained during the 
review process. After preliminary award determinations are made, the 
CDFI Fund will review the list of potential awardees to determine 
whether: (i) the potential awardees' service areas collectively 
represent broad geographic coverage throughout the United States; and 
(ii) the potential awardees will collectively, based upon projections 
made by each Applicant, direct at least 20 percent of total activities 
to Non-Metropolitan Areas. To the extent practicable, the CDFI Fund 
reserves the right to make alterations to award amounts and/or make 
awards to additional organizations if deemed necessary to ensure these 
desired outcomes.
    4. Regulated Applicants: In the case of Insured Depository 
Institutions and Insured Credit Unions, the CDFI Fund will take into 
consideration the views of the Appropriate Federal Banking Agencies; in 
the case of State-Insured Credit Unions, the CDFI Fund may consult with 
the appropriate State banking agencies (or comparable entity).
    5. Award Notification: Each Applicant will be informed of the CDFI 
Fund's

[[Page 12429]]

award decision through an Assistance Agreement if selected for an award 
(see Assistance Agreement section, below) or written declination if not 
selected for an award. The CDFI Fund will notify Awardees by e-mail 
using the addresses maintained in the Awardee's myCDFIFund account.
    6. The CDFI Fund reserves the right to reject an application if 
information (including administrative errors) comes to the attention of 
the CDFI Fund that adversely affects an Applicant's eligibility for an 
award, adversely affects the CDFI Fund's evaluation or scoring of an 
application, or indicates fraud or mismanagement on the part of an 
Applicant. If the CDFI Fund determines that any portion of the 
application is incorrect in any material respect, the CDFI Fund 
reserves the right, in its sole discretion, to reject the application. 
The CDFI Fund reserves the right to change its eligibility and 
evaluation criteria and procedures, if the CDFI Fund deems it 
appropriate; if said changes materially affect the CDFI Fund's award 
decisions, the CDFI Fund will provide information regarding the changes 
through the CDFI Fund's Web site. There is no right to appeal the CDFI 
Fund's award decisions. The CDFI Fund's award decisions are final.

VI. Award Administration Information

    A. Notice of Award: The CDFI Fund will signify its conditional 
selection of an Applicant as an Awardee by delivering an Assistance 
Agreement to the Applicant via e-mail using the addresses maintained in 
the Awardee's myCDFIFund account. The Assistance Agreement will contain 
the Notice of Award and general terms and conditions underlying the 
CDFI Fund's provision of assistance. The Awardee must confirm receipt 
of the Assistance Agreement once received. By confirming receipt of the 
Assistance Agreement, the Awardee agrees, among other things, that, if 
prior to executing and entering into an Assistance Agreement with the 
CDFI Fund, information (including administrative errors) comes to the 
attention of the CDFI Fund that either adversely affects the Awardee's 
eligibility for an award, or adversely affects the CDFI Fund's 
evaluation of the Awardee's application, or indicates fraud or 
mismanagement on the part of the Awardee, the CDFI Fund may, in its 
discretion and without advance notice to the Awardee, terminate the 
award or take such other actions as it deems appropriate. Moreover, by 
confirming receipt of the Assistance Agreement, the Awardee agrees 
that, if prior to executing and entering into an Assistance Agreement 
with the CDFI Fund, the CDFI Fund determines that the Awardee or an 
Affiliate of the Awardee is in default of any Assistance Agreement 
previously entered into with the CDFI Fund, the CDFI Fund may, in its 
discretion and without advance notice to the Awardee, either terminate 
the award or take such other actions as it deems appropriate. The CDFI 
Fund reserves the right, in its sole discretion, to rescind its award 
if the Awardee fails to return the Assistance Agreement, signed by the 
authorized representative of the Awardee, along with any other 
requested documentation, within the deadline set by the CDFI Fund. For 
purposes of this section, the CDFI Fund will consider an Affiliate to 
mean any entity that meets the definition of Affiliate in this NOFA.
    1. Failure to Meet Reporting Requirements: If an Awardee or an 
Affiliate of the Awardee is a prior awardee or allocatee under any CDFI 
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 NOA, the CDFI 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 any previously executed assistance, 
allocation, or award agreement(s). Please note that the CDFI Fund only 
acknowledges the receipt of reports that are complete. As such, 
incomplete reports or reports that are deficient of required elements 
will not be recognized as having been received. If said prior awardee 
or allocatee is unable to meet this requirement within the timeframe 
set by the CDFI Fund, the CDFI Fund reserves the right, in its sole 
discretion, to terminate and rescind the award made under this NOFA.
    2. Pending Resolution of Noncompliance: If an Applicant is a prior 
awardee or allocatee under any CDFI Fund program and if: (i) it has 
submitted complete and timely reports to the CDFI Fund that demonstrate 
noncompliance with a previous assistance, award, or allocation 
agreement; and (ii) the CDFI 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 CDFI Fund reserves the right, in 
its sole discretion, to delay entering into an Assistance Agreement, 
pending full resolution, in the sole determination of the CDFI Fund, of 
the noncompliance. Further, if an Affiliate of the Awardee is a prior 
CDFI Fund awardee or allocatee and if such entity (i) has submitted 
complete and timely reports to the CDFI Fund that demonstrate 
noncompliance with a previous assistance, award, or allocation 
agreement, and (ii) the CDFI 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 CDFI Fund reserves the right, in 
its sole discretion, to delay entering into an Assistance Agreement, 
pending full resolution, in the sole determination of the CDFI 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 CDFI Fund, the CDFI Fund reserves the right, 
in its sole discretion, to terminate and rescind the award made under 
this NOFA.
    3. Default Status: If, at any time prior to entering into an 
Assistance Agreement through this NOFA, the CDFI Fund has made a final 
determination that an Awardee that is a prior awardee or allocatee 
under any CDFI Fund program is in default of a previously executed 
assistance, allocation, or award agreement(s), the CDFI Fund reserves 
the right, in its sole discretion, to delay entering into an Assistance 
Agreement, until said prior awardee or allocatee has submitted a 
complete and timely report demonstrating full compliance with said 
agreement within a timeframe set by the CDFI Fund. Further, if at any 
time prior to entering into an Assistance Agreement through this NOFA, 
the CDFI Fund has made a final determination that an Affiliate of the 
Awardee is a prior awardee or allocatee under any CDFI Fund program and 
is in default of a previously executed assistance, allocation, or award 
agreement(s), the CDFI Fund reserves the right, in its sole discretion, 
to delay entering into an Assistance Agreement, until said prior 
awardee or allocatee has submitted a complete and timely report 
demonstrating full compliance with said agreement within a timeframe 
set by the CDFI Fund. If said prior awardee or allocatee is unable to 
meet this requirement and the CDFI Fund has not specified in writing 
that the prior awardee or allocatee is otherwise eligible to receive an 
Award under this NOFA, the CDFI Fund reserves the right, in its sole 
discretion, to terminate and rescind the award made under this NOFA.
    4. Termination in Default: If (i) within the 12-month period prior 
to entering into an Assistance Agreement through this NOFA, the CDFI 
Fund has made a final determination that an Awardee that is a prior 
awardee or allocatee

[[Page 12430]]

under any CDFI 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 within the 12-
month period prior to the application deadline of this NOFA, the CDFI 
Fund reserves the right, in its sole discretion, to delay entering into 
or determine not to enter into an Assistance Agreement. Further, if (i) 
within the 12-month period prior to entering into an Assistance 
Agreement through this NOFA, the CDFI Fund has made a final 
determination that an Affiliate of the Awardee is a prior awardee or 
allocatee under any CDFI 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 
within the 12-month period prior to the application deadline of this 
NOFA, the CDFI Fund reserves the right, in its sole discretion, to 
delay entering into or determine not to enter into an Assistance 
Agreement.
    5. Compliance with Federal Anti-Discrimination Laws: If at any time 
prior to entering into an Assistance Agreement through this NOFA, the 
CDFI Fund is made aware of a final determination, made within the last 
three years, in any proceeding instituted against the Awardee in, by, 
or before any court, governmental, or administrative body or agency, 
declaring that the Awardee has discriminated on the basis of race, 
color, national origin, disability, age, marital status, receipt of 
income from public assistance, religion, or sex, the CDFI Fund reserves 
the right, in its sole discretion, to terminate and rescind the award 
made under this NOFA.
    B. Assistance Agreement: Each Applicant that is selected to receive 
an award under this NOFA must enter into an Assistance Agreement with 
the CDFI 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 approved uses of the award; (iii) the 
approved Service Area in which the award may be used; (iv) performance 
goals and measures; and (v) reporting requirements for all Awardees. It 
is anticipated that CMF awards under this NOFA generally will have ten-
year performance periods.
    The Assistance Agreement shall provide that in the event of fraud, 
mismanagement, noncompliance with the Act or the CDFI Fund's 
regulations, or noncompliance with the terms and conditions of the 
Assistance Agreement on the part of the Awardee, the CDFI Fund, in its 
discretion, may: (1) Require changes in the performance goals set forth 
in the Assistance Agreement; (2) revoke approval of the Awardee's 
application; (3) reduce or terminate the Awardee's assistance; (4) 
require repayment of any assistance that has been distributed to the 
Awardee; (5) bar the Awardee from reapplying for any assistance from 
the CDFI Fund; or (6) take such other actions as the CDFI Fund deems 
appropriate or as set forth in the Assistance Agreement.
    Prior to imposing any sanctions pursuant to this section or an 
Assistance Agreement, the CDFI Fund shall, to the maximum extent 
practicable, provide the Awardee with written notice of the proposed 
sanction and an opportunity to comment. Nothing in this section, 
however, shall provide an Awardee the right to any formal or informal 
hearing or comparable proceeding not otherwise required by law.
    The CDFI Fund reserves the right, in its sole discretion, to 
terminate 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 CDFI Fund with any other requested 
documentation, within the deadlines set by the CDFI Fund.
    In addition to entering into an Assistance Agreement, each 
Applicant selected to receive a CMF award must furnish to the CDFI Fund 
an opinion from its legal counsel, the content of which will be further 
specified in the Assistance Agreement, which may include, among other 
matters, an opinion that: (i) The Applicant (and its Subsidiary 
transferees, if any) is duly formed and in good standing in the 
jurisdiction in which it was formed and the jurisdiction(s) in which it 
operates; (ii) the Applicant (and its Subsidiary transferees, if any) 
has the authority to enter into the Assistance Agreement and undertake 
the activities that are specified therein; (iii) the Applicant (and its 
Subsidiary transferees, if any) 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; (iv) the 
Applicant (and its Subsidiary transferees, if any) is not in default of 
its articles of incorporation, bylaws or other organizational 
documents, or any agreements with the Federal government; and (v) the 
CMF affordability restrictions that are to be imposed by deed 
restrictions, covenants running with the land, or other CDFI Fu