Notice of Allocation Availability (NOAA) Inviting Applications for the CY 2010 Allocation Round of the New Markets Tax Credit Program, 18016-18026 [2010-8008]

Download as PDF sroberts on DSKD5P82C1PROD with NOTICES 18016 Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices foreign terrorists, including the September 11, 2001, terrorist attacks in New York, Pennsylvania, and at the Pentagon. The Order imposes economic sanctions on persons who have committed, pose a significant risk of committing, or support acts of terrorism. The President identified in the Annex to the Order, as amended by Executive Order 13268 of July 2, 2002, 13 individuals and 16 entities as subject to the economic sanctions. The Order was further amended by Executive Order 13284 of January 23, 2003, to reflect the creation of the Department of Homeland Security. Section 1 of the Order blocks, with certain exceptions, all property and interests in property that are in or hereafter come within the United States or the possession or control of United States persons, of: (1) Foreign persons listed in the Annex to the Order; (2) foreign persons determined by the Secretary of State, in consultation with the Secretary of the Treasury, the Secretary of the Department of Homeland Security and the Attorney General, to have committed, or to pose a significant risk of committing, acts of terrorism that threaten the security of U.S. nationals or the national security, foreign policy, or economy of the United States; (3) persons determined by the Director of OFAC, in consultation with the Departments of State, Homeland Security and Justice, to be owned or controlled by, or to act for or on behalf of those persons listed in the Annex to the Order or those persons determined to be subject to subsection 1(b), 1(c), or 1(d)(i) of the Order; and (4) except as provided in section 5 of the Order and after such consultation, if any, with foreign authorities as the Secretary of State, in consultation with the Secretary of the Treasury, the Secretary of the Department of Homeland Security and the Attorney General, deems appropriate in the exercise of his discretion, persons determined by the Director of OFAC, in consultation with the Departments of State, Homeland Security and Justice, to assist in, sponsor, or provide financial, material, or technological support for, or financial or other services to or in support of, such acts of terrorism or those persons listed in the Annex to the Order or determined to be subject to the Order or to be otherwise associated with those persons listed in the Annex to the Order or those persons determined to be subject to subsection 1(b), 1(c), or 1(d)(i) of the Order. On April 1, 2010 the Director of OFAC, in consultation with the Departments of State, Homeland Security, Justice and other relevant VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 agencies, designated, pursuant to one or more of the criteria set forth in subsections 1(b), 1(c) or 1(d) of the Order, two individuals whose property and interests in property are blocked pursuant to Executive Order 13224. The list of designees is as follows: AL-DULAYMI, Ahmad Khalaf Shabib (a.k.a. ALDOLEMY, Ahmad Khalaf Shebab; a.k.a. AL-DULAYMI, Ahmad Khalaf Shabib al-Asafi; a.k.a. ALDULAYMI, Ahmad Khalaf Shabib al’Issawi; a.k.a. AL-DULAYMI, Ahmad Shabib; a.k.a. AL-ISAWI, Ahmad Khalaf Abd Shabib; a.k.a. AL-ISSAWI, Ahmad Khalaf Shabib; a.k.a. SHABIB, Ahmad Khalaf; a.k.a. SHABIB, Ahmad Khalaf Abd; a.k.a. SHADID, Ahkmad Kalaf; a.k.a. ‘‘AHMAD, Abu Usama’’; a.k.a. ‘‘AHMAD, Hajji’’; a.k.a. ‘‘ALDOLEMY, Ahmed’’; a.k.a. ‘‘AL-ISAWI, Ahmad’’; a.k.a. ‘‘SHABSHAR, Abu’’; a.k.a. ‘‘SULAYMAN, Abu’’; a.k.a. ‘‘WA’IL, Hajji’’), London, United Kingdom; alFallujah, Iraq; DOB 25 May 1972; POB al-Fallujah, Iraq; citizen United Kingdom; nationality Iraq; Passport C00168817 issued 8 Dec 2005 expires 25 May 2015; alt. Passport G1407597 (Iraq) (individual) [SDGT]. SELEK, Atilla (a.k.a. ‘‘MUAZ’’); DOB 28 Feb 1985; POB Ulm, Germany; nationality Germany; National ID No. 702092811 (Germany) expires 6 Apr 2010; Passport 702142921 (Germany) expires 3 Dec 2011; Passport and National ID were issued in Ulm, Germany. Currently incarcerated at JVA Bruchsal prison. (individual) [SDGT]. Dated: April 1, 2010. Barbara C. Hammerle, Acting Director, Office of Foreign Assets Control. [FR Doc. 2010–7939 Filed 4–7–10; 8:45 am] BILLING CODE 4810–AL–P DEPARTMENT OF THE TREASURY Community Development Financial Institutions Fund Notice of Allocation Availability (NOAA) Inviting Applications for the CY 2010 Allocation Round of the New Markets Tax Credit Program Funding Opportunity Title: Notice of Allocation Availability (NOAA) Inviting Applications for the CY 2010 Allocation Round of the New Markets Tax Credit Program. Announcement Type: Initial announcement of tax credit allocation availability. DATES: Electronic applications must be received by 5 p.m. ET on June 2, 2010. Applications sent by mail, facsimile or other form will not be accepted. Please PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 note the Community Development Financial Institutions Fund (the CDFI Fund) will only accept applications and attachments (i.e., signature page, investor letters and organizational charts) in electronic form (see Section IV.D. of this NOAA for more details). Applications must meet all eligibility and other requirements and deadlines, as applicable, set forth in this NOAA. Allocation applicants that are not yet certified as Community Development Entities (CDEs) must submit an application for certification as a CDE that is postmarked on or before April 23, 2010 (see Section III of this NOAA for more details). Executive Summary: Subject to authorization from Congress in 2010, this NOAA is issued in connection with the calendar year 2010 tax credit allocation round of the New Markets Tax Credit (NMTC) Program, as initially authorized by Title I, subtitle C, section 121 of the Community Renewal Tax Relief Act of 2000 (Pub. L. 106–554) and amended by section 221 of the American Jobs Creation Act of 2004 (Pub. L. 108–357), section 101 of the Gulf Opportunity Zone Act of 2005 (Pub. L. 108–357), and Division A, section 102 of the Tax Relief and Health Care Act of 2006 (Pub. L. 109–432) (the Act). Through the NMTC Program, the CDFI Fund provides authority to CDEs to offer an incentive to investors in the form of tax credits over seven years, which is expected to stimulate the provision of private investment capital that, in turn, will facilitate economic and community development in LowIncome Communities. Through this NOAA, the CDFI Fund announces, subject to authorization, the availability of up to $5 billion of NMTC authority authorized by the Act. In this NOAA, the CDFI Fund specifically addresses how an entity may apply to receive an allocation of NMTCs, the competitive procedure through which NMTC Allocations will be made, and the actions that will be taken to ensure that proper allocations are made to appropriate entities. I. Allocation Availability Description A. Programmatic Changes 1. Allocation Amounts: As described in Section IIA, the CDFI Fund anticipates that it will provide allocation awards of not more than $150 million per applicant. 2. Prior QEI Issuance Requirements: In order to be eligible to apply for NMTC allocations in the 2010 round, as described in Section III.A.2(a), applicants that have received NMTC allocation awards in previous rounds E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices are required to meet minimum Qualified Equity Investment (QEI) issuance thresholds with respect to their prioryear allocations. These thresholds have been revised in comparison to the 2009 NOAA. 3. Affiliated Governmental Entities: As stated in Section III.A.4 of the NOFA, in certain circumstances, the CDFI Fund may allow multiple entities that are Controlled by the same governmental entity to submit applications in the same round. 4. Electronic Application Submission: As stated in Sections III.C and III.D of this NOFA, the CDFI Fund will require the application and all attachments to the application to be submitted electronically. 5. Application Selection Criteria: In August of 2009, in accordance with the requirements of the Paperwork Reduction Act (PRA), 74 FR 38482, the CDFI Fund solicited public comments with respect to the NMTC application. As a result of comments received, the CDFI Fund has modified the contents of its application form and, in some cases, its application review criteria. These modifications are reflected in Section V.A of this NOAA. 6. Ensuring Rural Proportionality: As stated in Section V.C of this NOFA, the CDFI Fund may enlarge the applicant review pool to include more Rural CDEs, if necessary to ensure that 20 percent of the aggregate NMTC investments are made in nonmetropolitan areas. B. Program guidance and regulations: This NOAA provides guidance for the application and allocation of NMTCs for the eighth round of the NMTC Program and should be read in conjunction with: (i) Guidance published by the CDFI Fund on how an entity may apply to become certified as a CDE (66 FR 65806, December 20, 2001); (ii) the final regulations issued by the Internal Revenue Service (26 CFR 1.45D–1, published on December 28, 2004) and related guidance, notices and other publications; and (iii) the application and related materials for this eighth NMTC Program allocation round. All such materials may be found on the CDFI Fund’s Web site at http:// www.cdfifund.gov. The CDFI Fund encourages applicants to review these documents. Capitalized terms used, but not defined, in this NOAA shall have the respective meanings assigned to them in the allocation application, IRC § 45D or the IRS regulations. II. Allocation Information A. Allocation amounts: Pursuant to the Act, the CDFI Fund expects that it may allocate to CDEs the authority to VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 issue to their investors up to the aggregate amount of $5.0 billion in equity as to which NMTCs may be claimed, as permitted under IRC § 45D(f)(1)(D). Pursuant to this NOAA, the CDFI Fund anticipates that it will not issue more than $150 million in tax credit allocation authority per applicant. The CDFI Fund, in its sole discretion, reserves the right to allocate amounts in excess of or less than the anticipated maximum allocation amount should the CDFI Fund deem it appropriate. In order to receive an allocation in excess of the $150 million cap, an applicant, at a minimum, will need to demonstrate that: (i) No part of its strategy can be successfully implemented without an allocation in excess of the applicable cap; and/or (ii) its strategy will produce extraordinary community impact. The CDFI Fund reserves the right to allocate tax credit authority to any, all, or none of the entities that submit an application in response to this NOAA, and in any amount it deems appropriate. B. Types of awards: NMTC Program awards are made in the form of tax credit authority. C. Allocation Agreement: Each Allocatee under this NOAA must sign an Allocation Agreement before the NMTC Allocation is effective. The Allocation Agreement contains the terms and conditions of the allocation. For further information, see Section VI of this NOAA. III. Eligibility A. Eligible applicants: IRC § 45D specifies certain eligibility requirements that each applicant must meet to be eligible to apply for an allocation of NMTCs. The following sets forth additional detail and certain additional dates that relate to the submission of applications under this NOAA for the $5.0 billion in general NMTC allocation authority. 1. CDE certification: For purposes of this NOAA, the CDFI Fund will not consider an application for an allocation of NMTCs unless: (a) The applicant is certified as a CDE at the time the CDFI Fund receives its NMTC Program allocation application; or (b) the applicant submits an application for certification as a CDE that is postmarked on or before April 26, 2010. Applicants for certification may obtain a CDE certification application through the CDFI Fund’s Web site at http:// www.cdfifund.gov. Applications for CDE certification must be submitted as instructed in the application form. An applicant that is a community development financial institution (CDFI) or a specialized small business investment company (SSBIC) does not PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 18017 need to submit a CDE certification application; however, it must register as a CDE on the CDFI Fund’s Web site on or before 5 p.m. ET on April 26, 2010. The CDFI Fund will not provide allocations of NMTCs to applicants that are not certified as CDEs. See Section IV.D.1.(c) of this NOAA for further requirements relating to postmarks. If an applicant that has already been certified as a CDE wishes to change its designated CDE service area, it must submit its request for such a change to the CDFI Fund; and the request must be received by the CDFI Fund by 5 p.m. ET on June 2, 2010. The CDE service area change request must be sent from the applicant’s authorized representative and include the applicable CDE control number, the revised service area designation, and an updated accountability chart that reflects representation from Low-Income Communities in the revised service area. The service area change request must be sent by e-mail to cme@cdfi.treas.gov or by facsimile to (202) 622–7754. 2. Prior awardees or Allocatees: 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 NOAA. For purposes of this section, the CDFI Fund will consider an Affiliate to be any entity that meets the definition of Affiliate as defined in the NMTC allocation application materials, or any entity otherwise identified as an Affiliate by the applicant in its NMTC allocation application materials. Prior awardees of any CDFI Fund Program are eligible to apply under this NOAA, except as follows: (a) Prior Allocatees and Qualified Equity Investment (QEI) issuance requirements: The following describes the QEI issuance requirements applicable to prior Allocatees. A prior Allocatee in the second round of the NMTC Program (CY 2003–2004) is not eligible to receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has issued and received funds in-hand (the term ‘‘funds in-hand’’ does not include committed funding) from its investors for 95 percent of its QEIs relating to its CY 2003–2004 NMTC Allocation. A prior Allocatee in the third round of the NMTC Program (CY 2005) is not eligible to receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds in-hand from its investors for at least 80 percent of its E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES 18018 Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices QEIs relating to its CY 2005 NMTC Allocation; or (ii) issued and received funds in-hand from its investors for at least 60 percent of its QEIs and that 100 percent of its total CY 2005 NMTC Allocation has been exchanged for funds in-hand from investors, or has been committed by its investors. A prior Allocatee in the fourth round of the NMTC Program (CY 2006) is not eligible to receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds in-hand from its investors for at least 60 percent of its QEIs relating to its CY 2006 NMTC Allocation; or (ii) issued and received funds in-hand from its investors for at least 50 percent of its QEIs and that at least 80 percent of its total CY 2006 NMTC Allocation has been exchanged for funds in-hand from investors, or has been committed by its investors. A prior Allocatee in the fifth round of the NMTC Program (CY 2007) is not eligible to receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds in-hand from its investors for at least 50 percent of its QEIs relating to its CY 2007 NMTC Allocation; or (ii) issued and received funds in-hand from its investors for at least 40 percent of its QEIs and that at least 80 percent of its total CY 2007 NMTC Allocation has been exchanged for funds in-hand from investors, or has been committed by its investors. A prior Allocatee (with the exception of a Rural CDE Allocatee) in the sixth round of the NMTC Program (CY 2008) is not eligible to receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds in-hand from its investors for at least 30 percent of its QEIs relating to its CY 2008 NMTC Allocation; or (ii) issued and received funds in-hand from its investors for at least 20 percent of its QEIs and that at least 60 percent of its total CY 2008 NMTC Allocation has been exchanged for funds in-hand from investors, or has been committed by its investors. A prior Rural CDE Allocatee in the sixth round is not eligible to receive a NMTC Allocation pursuant to this NOAA unless the Allocatee can demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds in-hand from its investors for at least 20 percent of its QEIs relating to its CY 2008 NMTC Allocation. VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 A prior Allocatee (with the exception of a Rural CDE Allocatee) in the seventh round of the NMTC Program (CY 2009) is not eligible to receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds in-hand from its investors for at least 20 percent of its QEIs relating to its CY 2009 NMTC Allocation; or (ii) issued and received funds in-hand from its investors for at least 10 percent of its QEIs and that at least 30 percent of its total CY 2009 NMTC Allocation has been exchanged for funds in-hand from investors, or has been committed by its investors. A Rural CDE is not required to meet the above QEI issuance and commitment thresholds with regard to its 2009 NMTC allocation award. In addition to the requirements described above, an entity is not eligible to receive a NMTC Allocation pursuant to this NOAA if an Affiliate of the applicant is a prior Allocatee and has not met the requirements for the issuance and/or commitment of QEIs as set forth above for the Allocatees in the prior allocation rounds of the NMTC Program. Notwithstanding the above, if an applicant has received multiple NMTC allocation awards between the second round (CY 2003/2004) and the seventh round (CY 2009), the applicant shall be deemed to be eligible to apply for a NMTC Allocation pursuant to this NOAA if the applicant is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has issued and received funds in-hand from its investors for at least 60 percent of its QEIs relating to its cumulative allocation amounts from these prior NMTC Program rounds. Rural CDEs that received allocations under the sixth round (CY 2008) may choose to exclude such allocations from this cumulative calculation, provided that the Allocatee has issued and received funds in-hand from its investors for at least 20 percent of its QEIs relating to its CY 2008 allocation. Rural CDEs that received allocations under the seventh round (CY2009) may choose to exclude such allocation from this cumulative calculation. For purposes of this section of the NOAA, the CDFI Fund will only recognize as ‘‘issued’’ those QEIs that have been finalized in the CDFI Fund’s Allocation Tracking System (ATS) by the deadlines specified above. Allocatees and their Subsidiary transferees, if any, are advised to access ATS to record each QEI that they issue to an investor in exchange for funds in- PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 hand. For purposes of this section of the NOAA, ‘‘committed’’ QEIs are only those Equity Investments that are evidenced by a written, signed document in which an investor: (i) Commits to make an investment in the Allocatee in a specified amount and on specified terms; (ii) has made an initial disbursement of the investment proceeds to the Allocatee, and such initial disbursement has been recorded in ATS as a QEI; (iii) commits to disburse the remaining investment proceeds to the Allocatee based on specified amounts and payment dates; and (iv) commits to make the final disbursement to the Allocatee no later than July 21, 2012. The applicant will be required, upon notification from the CDFI Fund, to submit adequate documentation to substantiate the required issuances of and commitments for QEIs. Applicants should be aware that these QEI issuance requirements represent the minimum threshold requirements that must be met in order to submit an application for assistance under this NOAA. As stated in Section V.B.2 of this NOAA, the CDFI Fund reserves the right to reject an application and/or adjust award amounts as appropriate based on information obtained during the review process—including an applicant’s track record of raising QEIs and/or deploying its QLICIs. Prior Allocatees that require any action by the CDFI Fund (e.g., certifying a subsidiary entity as a CDE; adding a subsidiary CDE to an Allocation Agreement; etc.) in order to meet the QEI issuance requirements above must submit their requests by no later than May 21, 2010 in order to guarantee that the CDFI Fund completes all necessary approvals prior to July 21, 2010. Applicants for certification may obtain a CDE certification application through the CDFI Fund’s Web site at http:// www.cdfifund.gov. Applications for CDE certification must be submitted as instructed in the application form. (b) Failure to meet reporting requirements: The CDFI Fund will not consider an application submitted by an applicant if the applicant or any of its Affiliates is a prior CDFI Fund 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 application deadline of this NOAA. 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. E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices (c) 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 will consider the applicant’s application under this NOAA pending full resolution of the noncompliance, in the sole determination of the CDFI Fund. 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, 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 will consider the applicant’s application under this NOAA pending full resolution of the noncompliance, in the sole determination of the CDFI Fund. (d) Default status: The CDFI Fund will not consider an application submitted by an applicant that is a prior CDFI Fund awardee or Allocatee under any CDFI Fund program if, as of the application deadline of this NOAA, the CDFI Fund has made a final determination that such applicant is in default of a previously executed assistance, allocation or award agreement(s) and the CDFI Fund has provided written notification of such determination to such applicant. Further, an entity is not eligible to apply for an allocation pursuant to this NOAA if, as of the application deadline of this NOAA, the CDFI Fund has made a final determination that an Affiliate of the Applicant is a prior CDFI Fund 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) and the CDFI Fund has provided written notification of such determination. Such entities will be ineligible to apply for an award pursuant to this NOAA 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. (e) Termination in default: The CDFI Fund will not consider an application submitted by an applicant that is a prior CDFI Fund awardee or Allocatee under VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 any CDFI Fund program if: (i) Within the 12-month period prior to the application deadline of this NOAA, 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); (ii) the CDFI Fund has provided written notification of such determination to such applicant; and (iii) 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 allocation pursuant to this NOAA if: (i) Within the 12-month period prior to the application deadline of this NOAA, the CDFI Fund has made a final determination that an Affiliate of the Applicant is a prior CDFI Fund 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); (ii) the CDFI Fund has provided written notification of such determination to the defaulting entity; and (iii) 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 NOAA. (f) Undisbursed award funds: The CDFI Fund will not consider an application submitted by an applicant that is a prior CDFI Fund Awardee under any CDFI Fund program if the Applicant has a balance of undisbursed award funds (defined below) under said prior award(s), as of the applicable application deadline of this NOAA. Furthermore, an entity is not eligible to apply for an award pursuant to this NOAA if an Affiliate of the Applicant is a prior CDFI Fund 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 NOAA. In a case where an Affiliate of the Applicant is a prior CDFI Fund 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 NOAA, 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 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 18019 deadline of this NOAA are included (‘‘includable BEA awards’’). Thus, for purposes of this NOAA, 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 NOAA. 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 entity that Controls the Applicant, is Controlled by the Applicant or shares common management officials with the Applicant, as determined by the CDFI Fund) two to five calendar years prior to the end of the calendar year of the application deadline of this NOAA are included (‘‘includable CDFI/NI awards’’). Thus, for purposes of this NOAA, undisbursed CDFI Program and Native Initiative (NI) awards are the amount of FYs 2005, 2006, 2007 and 2008 awards that remain undisbursed as of the application deadline of this NOAA. To calculate total includable BEA/ CDFI/NI awards: amounts that are undisbursed as of the application deadline of this NOAA cannot exceed five percent (5%) of the total includable awards. Please refer to an example of this calculation in the 2010 Allocation Application Q&A document, available on the CDFI Fund’s Web site. The ‘‘undisbursed award funds’’ calculation 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 CDFI Fund received a full and complete disbursement request from the Awardee by the applicable application deadline of this NOAA; (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 30 business days prior to the application deadline of this NOAA. (g) Contact the CDFI Fund: Accordingly, Applicants that are prior awardees and/or Allocatees under any other CDFI Fund program are advised to: (i) Comply with the 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 of any outstanding E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES 18020 Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices balance of a prior award(s). All outstanding reports and compliance questions should be directed to the Compliance Manager by e-mail at cme@cdfi.treas.gov, by telephone at (202) 622–8453, or by facsimile at (202) 622–8728. All disbursement questions should be directed to the CDFI Fund’s Senior Resource Manager by telephone at (202) 622–7165 or by facsimile at (202) 622–8728. Requests submitted less than thirty calendar days prior to the application deadline may not receive a response before the application deadline. Both the Compliance Manager and the Senior Resource Manager may be reached by mail at CDFI Fund, 601 13th Street, NW., Suite 200 South, Washington, DC 20005. The CDFI Fund will respond to Applicants’ reporting, compliance or disbursement questions between the hours of 9 a.m. and 5 p.m. ET, starting the date of publication of this NOAA through May 31, 2010 (two days before the application deadline). The CDFI Fund will not respond to Applicants’ reporting, compliance or disbursement phone calls or e-mail inquiries that are received after 5 p.m. ET on May 31, 2010 until after the funding application deadline of June 2, 2010. 3. Entities that propose to transfer NMTCs to Subsidiaries: Both for-profit and non-profit CDEs may apply to the CDFI Fund for allocations of NMTCs, but only a for-profit CDE is permitted to provide NMTCs to its investors. A nonprofit applicant wishing to apply for a NMTC Allocation must demonstrate, prior to entering into an Allocation Agreement with the CDFI Fund, that: (i) It controls one or more Subsidiaries that are for-profit entities; and (ii) it intends to transfer the full amount of any NMTC Allocation it receives to said Subsidiary. An applicant wishing to transfer all or a portion of its NMTC Allocation to a Subsidiary is not required to create the Subsidiary prior to submitting a NMTC allocation application to the CDFI Fund. However, the Subsidiary entities must be certified as CDEs by the CDFI Fund, and enjoined as parties to the Allocation Agreement at closing or by amendment to the Allocation Agreement after closing. Before the NMTC Allocation transfer may occur it must be preapproved by the CDFI Fund, in its sole discretion. The CDFI Fund strongly encourages a non-profit applicant to submit a CDE certification application to the CDFI Fund on behalf of the Subsidiary within 30 days after the non-profit applicant receives the draft Allocation Agreement from the CDFI Fund; as such Subsidiary must be certified as a CDE prior to VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 entering into an Allocation Agreement with the CDFI Fund. A non-profit applicant that fails to certify one or more for-profit subsidiaries within 30 days of receiving the draft Allocation Agreement from the CDFI Fund is subject to the CDFI Fund rescinding the award. 4. Entities that submit applications together with Affiliates; applications from common enterprises: (a) As part of the allocation application review process, the CDFI Fund considers whether applicants are Affiliates, as such term is defined in the allocation application. If an applicant and its Affiliates wish to submit allocation applications, they must do so collectively, in one application; an applicant and its Affiliates may not submit separate allocation 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 allocation. In the case of governmental entities, the CDFI Fund may accept applications submitted by Affiliated entities, but only to the extent the CDFI Fund determines that the business strategies and/or activities described in such applications, submitted by separate entities, are distinctly dissimilar and are operated and/or managed by distinctly dissimilar boards and staff, including identified consultants. In such cases, the CDFI Fund reserves the right to limit award amounts to such entities to ensure that the entities do not collectively receive more than the $150 million cap for any single entity. For purposes of this NOAA, in addition to assessing whether applicants meet the definition of the term ‘‘Affiliate’’ found in the allocation application, 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 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 allocation; and, in the event that an Application is selected to receive an PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 allocation award, to deem certain activities ineligible. These requirements shall apply to all applicants, including those that are Affiliated with governmental entities. (b) Furthermore, an applicant that receives an allocation in this allocation round (or its Subsidiary transferee) may not become an Affiliate of or member of a common enterprise (as defined above) with another applicant that receives an allocation in this allocation round (or its Subsidiary transferee) at any time after the submission of an allocation application under this NOAA. This prohibition, however, generally does not apply to entities that are commonly Controlled solely because of common ownership by QEI investors. This requirement will also be a term and condition of the Allocation Agreement (see Section VI.B. of this NOAA and additional application guidance materials on the CDFI Fund’s Web site at http://www.cdfifund.gov for more details). 5. Entities created as a series of funds: An applicant whose business structure consists of an entity with a series of funds may apply for CDE certification as a single entity, or as multiple entities. If such an applicant represents that it is properly classified for Federal tax purposes as a single partnership or corporation, it may apply for CDE certification as a single entity. If an applicant represents that it is properly classified for Federal tax purposes as multiple partnerships or corporations, then it may submit a single CDE certification application on behalf of the entire series of funds, and each fund must be separately certified as a CDE. Applicants should note, however, that receipt of CDE certification as a single entity or as multiple entities is not a determination that an applicant and its related funds are properly classified as a single entity or as multiple entities for Federal tax purposes. Regardless of whether the series of funds is classified as a single partnership or corporation or as multiple partnerships or corporations, an applicant may not transfer any NMTC Allocations it receives to one or more of its funds unless the transfer is pre-approved by the CDFI Fund, in its sole discretion, which will be a condition of the Allocation Agreement. 6. Entities that are BEA Program awardees: An insured depository institution investor (and its Affiliates and Subsidiaries) may not receive a NMTC Allocation in addition to a BEA Program award for the same investment in a CDE. Likewise, an insured depository institution investor (and its Affiliates and Subsidiaries) may not E:\FR\FM\08APN1.SGM 08APN1 Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices sroberts on DSKD5P82C1PROD with NOTICES receive a BEA Program award in addition to a NMTC Allocation for the same investment in a CDE. IV. Application and Submission Information A. Address to request application package: Applicants must submit applications electronically under this NOAA, through the CDFI Fund Web site. Following the publication of this NOAA, the CDFI Fund will make the electronic allocation application available on its Web site at http:// www.cdfifund.gov. Applications sent by mail, facsimile or other form will not be accepted. Please note the CDFI Fund will only accept the application and attachments (i.e. signature page, investor letters and organizational charts) in electronic form. B. Application content requirements: Detailed application content requirements are found in the application related to this NOAA. Applicants must submit all materials described in and required by the application by the applicable deadlines. Applicants will not be afforded an opportunity to provide any missing materials or documentation. Electronic applications must be submitted solely by using the format made available at the CDFI Fund’s Web site. Additional information, including instructions relating to the submission of supporting information (i.e., signature page, investor letters and organizational charts), is set forth in further detail in the electronic application. An application must include a valid and current Employer Identification Number (EIN) issued by the Internal Revenue Service and assigned to the applicant and, if applicable, its Controlling Entity. Electronic applications without a valid EIN are incomplete and cannot be transmitted to the CDFI Fund. For more information on obtaining an EIN, please contact the Internal Revenue Service at (800) 829–4933 or www.irs.gov. An applicant may not submit more than one application in response to this NOAA. In addition, as stated in Section III.A.4 of this NOAA, an applicant and its Affiliates must collectively submit only one allocation application; an applicant and its Affiliates may not submit separate allocation applications except as outlined above. Once an application is submitted, an applicant will not be allowed to change any element of its application. C. Form of application submission: Applicants may only submit applications under this NOAA electronically. Applications sent by facsimile or by e-mail will not be accepted. Submission of an electronic VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 application will facilitate the processing and review of applications and the selection of Allocatees; further, it will assist the CDFI Fund in the implementation of electronic reporting requirements. 1. Electronic applications: Electronic applications must be submitted solely by using the CDFI Fund’s Web site and must be sent in accordance with the submission instructions provided in the electronic application form. Applicants will need access to Internet Explorer 5.5 or higher, Windows 98 or higher (or other system compatible with the above Explorer software) and optimally at least a 56Kbps Internet connection in order to meet the electronic application submission requirements. The CDFI Fund’s electronic application system will only permit the submission of applications in which all required questions and tables are fully completed. Additional information, including instructions relating to the submission of supporting information (i.e., signature page, investor letters and organizational charts) is set forth in further detail in the electronic application. D. Application submission dates and times: 1. Application deadlines: (a) Electronic applications: must be received by 5 p.m. ET on June 2, 2010. Electronic applications cannot be transmitted or received after 5 p.m. ET on June 2, 2010. In addition, applicants that submit electronic applications must separately submit supporting information (i.e., signature page, investor letters and organizational charts) via their myCDFIFund account. The signature page, investor letters and organizational charts must be submitted on or before June 4, 2010. See application instructions, provided in the electronic application, for further detail. Applications and other required documents received after this date and time will be rejected. If the signature page, investor letters and organizational charts are not received by the deadline specified above, the application will be rejected. Please note that the document submission deadlines in this NOAA and/or the allocation application are strictly enforced. (b) Postmark: For purposes of this NOAA, the term ‘‘postmark’’ is defined by 26 CFR 301.7502–1. In general, the CDFI Fund will require that the postmarked document bear a postmark date that is on or before the applicable deadline. The document must be in an envelope or other appropriate wrapper, properly addressed as set forth in this NOAA and delivered by the United States Postal Service or any other PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 18021 private delivery service designated by the Secretary of the Treasury. For more information on designated delivery services, please see IRS Notice 2002–62, 2002–2 C.B. 574. E. Intergovernmental Review: Not applicable. F. Funding Restrictions: For allowable uses of investment proceeds related to a NMTC Allocation, please see 26 U.S.C. 45D and the final regulations issued by the Internal Revenue Service (26 CFR 1.45D–1, published December 28, 2004) and related guidance. Please see Section I, above, for the Programmatic Changes of this NOAA. V. Application Review Information There are two parts to the substantive review process for each allocation application: Phase 1 and Phase 2. In Phase 1, the CDFI Fund will evaluate each application, assigning points and numeric scores according to the criteria described below. In Phase 2, the CDFI Fund will rank applicants in accordance with the procedures set forth below. A. Criteria: 1. Business Strategy (25-point maximum): (a) When assessing an applicant’s business strategy, reviewers will consider, among other things: The applicant’s products, services and investment criteria; the prior performance of the applicant or its Controlling Entity, particularly as it relates to making similar kinds of investments as those it proposes to make with the proceeds of QEIs; the applicant’s prior performance in providing capital or technical assistance to disadvantaged businesses or communities; the projected level of the applicant’s pipeline of potential investments; the extent to which the applicant intends to make Qualified Low-Income Community Investments (QLICIs) in one or more businesses in which persons unrelated to the entity hold a majority equity interest; and the extent to which applicants that otherwise have notable relationships with the QALICBs financed will create benefits (beyond those created in the normal course of a NMTC transaction) to Low-Income Communities. Under the Business Strategy criterion, an applicant will generally score well to the extent that it will deploy debt or investment capital in products or services which: (i) Are designed to meet the needs of underserved markets; (ii) are flexible or non-traditional in form and on better terms than available in the marketplace; and (iii) focus on customers or partners that typically lack access to conventional sources of capital. An applicant will also score well to the extent that, among other E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES 18022 Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices things, it: (i) Has a track record of successfully providing products and services similar to those it intends to use with the proceeds of QEIs; (ii) has identified, or has a process for identifying, potential transactions; (iii) demonstrates a likelihood of issuing QEIs and making the related QLICIs in a time period that is significantly shorter than the 5-year period permitted under IRC § 45D(b)(1); and (iv) in the case of an applicant proposing to purchase loans from CDEs, the applicant will require the CDE selling such loans to re-invest the proceeds of the loan sale to provide additional products and services to Low-Income Communities. (b) Priority Points: In addition, as provided by IRC § 45D(f)(2), the CDFI Fund will ascribe additional points to entities that meet one or both of the statutory priorities. First, the CDFI Fund will give up to five (5) additional points to any applicant that has a record of having successfully provided capital or technical assistance to disadvantaged businesses or communities. Second, the CDFI Fund will give five (5) additional points to any applicant that intends to satisfy the requirement of IRC § 45D(b)(1)(B) by making QLICIs in one or more businesses in which persons unrelated (within the meaning of IRC § 267(b) or IRC § 707(b)(1)) to an applicant (or the applicant’s subsidiary CDEs) hold the majority equity interest. Applicants may earn points for one or both statutory priorities. Thus, applicants that meet the requirements of both priority categories can receive up to a total of ten (10) additional points. A record of having successfully provided capital or technical assistance to disadvantaged businesses or communities may be demonstrated either by the past actions of an applicant itself or by its Controlling Entity (e.g., where a new CDE is established by a nonprofit corporation with a history of providing assistance to disadvantaged communities). An applicant that receives additional points for intending to make investments in unrelated businesses and is awarded a NMTC Allocation must meet the requirements of IRC § 45D(b)(1)(B) by investing substantially all of the proceeds from its QEIs in unrelated businesses. The CDFI Fund will factor in an applicant’s priority points when ranking applicants during Phase 2 of the review process, as described below. 2. Community Impact (25-point maximum): In assessing the potential benefits to Low-Income Communities that may result from the applicant’s proposed investments, reviewers will consider, among other things, the degree to which the applicant is likely to VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 achieve significant and measurable community development outcomes in its Low-Income Communities, and whether the applicant is working in particularly economically distressed markets and/or in concert with Federal, State or local government or community economic development initiatives (e.g., Empowerment Zones, Enterprise Communities, and Renewal Communities). An applicant will generally score well under this section to the extent that: (a) It articulates how its strategy is likely to produce significant and measurable community development outcomes that would not be achieved without NMTCs; and (b) it is working in particularly economically distressed or otherwise underserved communities and/or in concert with other Federal, State or local government or community economic development initiatives. 3. Management Capacity (25-point maximum). In assessing an applicant’s management capacity, reviewers will consider, among other things, the qualifications of the applicant’s principals, its board members, its management team, and other essential staff or contractors, with specific focus on: experience in deploying capital or technical assistance, including activities similar to those described in the applicant’s business strategy; asset management and risk management experience; experience with fulfilling compliance requirements of other governmental programs, including other tax programs; and the applicant’s (or its Controlling Entity’s) financial health. Reviewers will also consider the extent to which an applicant has protocols in place to ensure ongoing compliance with NMTC Program requirements and the level of involvement of community representatives and other stakeholders in the design, implementation or monitoring of an applicant’s business plan and strategy. In the case of an applicant or its Affiliate that has received a NMTC Allocation from the CDFI Fund under a prior allocation round, reviewers will consider the activities that have occurred to date with respect to the prior allocation(s). An applicant will generally score well under this section to the extent that its management team or other essential personnel have experience in: (a) Deploying capital or technical assistance in Low-Income Communities, particularly those likely to be served by the applicant with the proceeds of QEIs; (b) asset and risk management; and (c) fulfilling government compliance requirements, particularly tax credit program compliance. An applicant will also score well to the extent it PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 demonstrates strong financial health and a high likelihood of remaining a going-concern; it has policies and systems in place to ensure ongoing compliance with NMTC Program requirements, and Low-Income Community stakeholders play an active role in designing or implementing its business plan. 4. Capitalization Strategy (25-point maximum): When assessing an applicant’s capitalization strategy, reviewers will consider, among other things: The key personnel of the applicant (or Controlling Entity) and their track record of raising capital, particularly from for-profit investors; the extent to which the applicant has secured investments, commitments to invest in NMTC, or indications of investor interest commensurate with its requested amount of tax credit allocations; the applicant’s strategy for identifying additional investors, if necessary, including the applicant’s (or its Controlling Entity’s) prior performance with raising equity from investors, particularly for-profit investors; the distribution of the economic benefits of the tax credit; the extent to which the applicant intends to invest the proceeds from the aggregate amount of its QEIs at a level that exceeds the requirements of IRC § 45D(b)(1)(B) and the IRS regulations; the likelihood the applicant will raise sufficient capital to finance its cost of operations while charging reasonable fees; and the applicant’s timeline for utilizing an NMTC Allocation. An applicant will generally score well under this section to the extent that: (a) It has secured investor commitments, or has a reasonable strategy for obtaining such commitments; (b) its request for allocations is commensurate with both the level of QEIs it is likely to raise and its expected investment strategy to deploy funds raised with NMTCs; (c) it generally demonstrates that the economic benefits of the tax credit will be passed through to end users; (d) it is likely to secure capital to finance its cost of operations and charge fees appropriate to the operational needs of the applicant; and (e) it intends to invest the proceeds from the aggregate amount of its QEIs at a level that exceeds the requirements of IRC § 45D(b)(1)(B) and the IRS regulations. In the case of an applicant proposing to raise investor funds from organizations that also will identify or originate transactions for the applicant or from affiliated entities, said applicant will score well to the extent that it will offer products with more favorable rates or terms than those currently offered by its investor(s) or Affiliated entities and/or will target its E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices activities to areas of greater economic distress than those currently targeted by the investor or Affiliated entities. B. Review and selection process: All allocation applications will be reviewed for eligibility and completeness. The CDFI Fund may consult with the IRS on the eligibility requirements under IRC § 45D. To be complete, the application must contain, at a minimum, all information described as required in the application form. An incomplete application will be rejected. Once the application has been determined to be eligible and complete, the CDFI Fund will conduct the substantive review of each application in two parts (Phase 1 and Phase 2) in accordance with the criteria and procedures generally described in this NOAA and the allocation application. 1. Phase 1: Reviewers will evaluate and score each application in the first part of the review process. An applicant must exceed a minimum overall aggregate base score threshold and exceed a minimum aggregate section score threshold in each of the four application sections (Business Strategy, Community Impact, Management Capacity, and Capitalization Strategy) in order to advance from the first part of the substantive review process. If, in the case of a particular application, a reviewer’s total base score or section score(s) (in one or more of the four application sections) varies significantly from other reviewers’ total base scores or section scores for such application, the CDFI Fund may, in its sole discretion, obtain the comments and recommendations of an additional reviewer to determine whether the anomalous score should be replaced with the score of the additional reviewer. 2. Phase 2: Once the CDFI Fund has determined which applicants have met the required minimum overall aggregate base score and aggregate section score thresholds, the CDFI Fund will rank applicants on the basis of their combined scores in the Business Strategy and Community Impact sections of the application and will make adjustments to each applicant’s priority points so that these points maintain the same relative weight in the ranking of applicant scores in Phase 2 as in Phase 1. The CDFI Fund will award allocations in the order of this ‘‘Final Rank Score,’’ subject to applicants’ meeting all other 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 VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 process. Most notably, in the cases of applicants (or their Affiliates) that are prior year allocatees, the CDFI Fund will review the activities of the prior year allocatee to determine whether the entity has: (a) effectively utilized its prior-year allocations; and (b) substantiated a need for additional allocation authority. 3. Outstanding Reports: In the case of an applicant, or Affiliates, that has previously received an award or allocation from the CDFI Fund through any CDFI Fund program, the CDFI Fund will deduct points for the applicant’s (or its Affiliate’s) failure to meet the reporting deadlines set forth in any assistance, award or Allocation Agreement(s) with the CDFI Fund during the entity’s two complete fiscal years prior to the application deadline of this NOAA (generally FY 2008 and 2009). C. Allocations serving NonMetropolitan counties: As provided for under Section 102(b) of the Tax Relief and Health Care Act of 2006 (Pub. L. 109–432), the CDFI Fund shall ensure that non-metropolitan counties receive a proportional allocation of Qualified Equity Investments (QEIs) under the NMTC Program. To this end, the CDFI Fund will ensure that the proportion of allocatees that are Rural CDEs is, at a minimum, equal to the proportion of applicants in the Phase 2 review pool that are Rural CDEs; and ensure that at least 20 percent of the QLICIs to be made using QEI proceeds are invested in Non-Metropolitan counties. A Rural CDE is one that has over the past five years dedicated at least 50 percent of its activities to Non-Metropolitan counties and has committed that at least 50 percent of its NMTC activities will be conducted in such areas. NonMetropolitan counties are counties not contained within a Metropolitan Statistical Area, as such term is defined in OMB Bulletin No. 99–04 (Revised Statistical Definitions of Metropolitan Areas (MAs) and Guidance on Uses of MA Definitions) and applied using 2000 census data. Applicants that meet the minimum scoring thresholds will be advanced to Phase 2 review and will be provided with ‘‘preliminary’’ awards, in descending order of Final Rank Score, until the $5.0 billion in allocation authority is expended. Once these ‘‘preliminary’’ award amounts are determined, the CDFI Fund will then analyze the allocatee pool to determine whether the two Non-Metropolitan proportionality objectives have been met. The CDFI Fund will first examine the ‘‘preliminary’’ awards and allocatees to PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 18023 determine whether the percentage of allocatees that are Rural CDEs is, at a minimum, equal to the percentage of applicants in the Phase 2 review pool that are Rural CDEs. If this objective is not achieved, the CDFI Fund will provide awards to additional Rural CDEs from the Phase 2 pool, in descending order of their Final Rank Score, until the appropriate percentage balance is achieved. In order to accommodate the additional allocatees within the $5.0 billion allocation limitations, a formula reduction will be applied uniformly to the allocation amount for all allocatees in the pool. The CDFI Fund will then ensure that the pool of allocatees will, in the aggregate, invest at least 20 percent of their QLICIs (as measured by dollar amount) in Non-Metropolitan counties. The CDFI Fund will first apply the ‘‘minimum’’ percentage of QLICIs that allocatees indicated in their applications would be targeted to NonMetropolitan areas to the total allocation award amount of each allocatee (less whatever percentage the allocatee indicated would be retained for nonQLICI activities), and total these figures for all allocatees. If this aggregate total is greater than or equal to 20 percent of the QLICIs to be made by the allocatees, then the pool is considered balanced and the CDFI Fund will proceed with the allocation process. However, if the aggregate total is less than 20 percent of the QLICIs to be made by the allocatees, the CDFI Fund will consider requiring any or all of the Allocatees to direct up to the ‘‘maximum’’ percentage of QLICIs that they indicated would be targeted to Non-Metropolitan counties; taking into consideration their track record and ability to deploy dollars in NonMetropolitan counties. If the CDFI Fund cannot meet the benchmark of 20% of QLICIs in Non-Metropolitan counties, the CDFI Fund may add additional Rural CDEs (in descending order of final rank score) to the awardee pool. In order to accommodate the additional allocatees within the $5.0 billion allocation limitations, a formula reduction will be applied uniformly to the allocation amount for all allocatees in the pool. D. Questions: All outstanding reports or compliance questions should be directed to the Certifications and Compliance Manager by e-mail at cme@cdfi.treas.gov; by telephone at (202) 622–8453; by facsimile at (202) 622–2445; or by mail to CDFI Fund, 601 13th Street, NW., Suite 200 South, Washington, DC 20005. The CDFI 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 E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES 18024 Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices publication of this NOAA through May 31, 2010. The CDFI Fund will not respond to reporting or compliance phone calls or e-mail inquiries that are received after 5 p.m. ET on May 31, 2010 until after the funding application deadline of June 2, 2010. E. Right of rejection: The CDFI Fund reserves the right to reject any NMTC allocation application in the case of a prior CDFI Fund awardee, if such applicant has failed to comply with the terms, conditions, and other requirements of the prior or existing assistance or award agreement(s) with the CDFI Fund. The CDFI Fund reserves the right to reject any NMTC allocation application in the case of a prior CDFI Fund Allocatee, if such applicant has failed to comply with the terms, conditions, and other requirements of its prior or existing Allocation Agreement(s) with the CDFI Fund. The CDFI Fund reserves the right to reject any NMTC allocation application in the case of any applicant, if an Affiliate of the applicant has failed to meet the terms, conditions and other requirements of any prior or existing assistance agreement, award agreement or Allocation Agreement with the CDFI Fund. The CDFI Fund reserves the right to reject any NMTC allocation application in the case of a prior CDFI Fund Allocatee, if such applicant has failed to use its prior NMTC allocation(s) in a manner that is generally consistent with the business strategy (including, but not limited to, the proposed product offerings and markets served) set forth in the allocation application(s) related to such prior allocation(s). The CDFI Fund also reserves the right to reject any NMTC allocation application in the case of an Affiliate of the applicant that is a prior CDFI Fund Allocatee and has failed to use its prior NMTC allocation(s) in a manner that is generally consistent with the business strategy set forth in the allocation application(s) related to such prior allocation(s). The CDFI Fund reserves the right to reject a NMTC allocation 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. VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 As a part of the substantive review process, the CDFI Fund may permit reviewer(s) to make telephone calls to applicants for the sole purpose of obtaining, clarifying or confirming application information. In no event shall such contact be construed to permit an applicant to change any element of its application. Reviewers will not contact applicants without the prior approval of the CDFI Fund. At this point in the process, an applicant may be required to submit additional information about its application in order to assist the CDFI Fund with its final evaluation process. Such requests must be responded to within the time parameters set by the CDFI Fund. The selecting official(s) will make a final allocation determination based on an applicant’s file, including, without limitation, eligibility under IRC§ 45D, the reviewers’ scores and the amount of allocation authority available. In the case of applicants (or Affiliates of applicants) that are regulated by the Federal government or a State agency (or comparable entity), the CDFI Fund’s selecting official(s) reserve(s) the right to consult with and take into consideration the views of the appropriate Federal or State banking and other regulatory agencies. In the case of applicants (or Affiliates of applicants) that are also Small Business Investment Companies, Specialized Small Business Investment Companies or New Markets Venture Capital Companies, the CDFI Fund reserves the right to consult with and take into consideration the views of the Small Business Administration. The CDFI Fund reserves the right to conduct additional due diligence, as determined reasonable and appropriate by the CDFI Fund, in its sole discretion, related to the applicant and its officers, directors, owners, partners and key employees. Each applicant will be informed of the CDFI Fund’s award decision through an electronic notification whether selected for an allocation (see Section VI.A. of this NOAA) or not selected for an allocation, which may be for reasons of application incompleteness, ineligibility or substantive issues. All applicants that are not selected for an allocation based on substantive issues will likely be given the opportunity to obtain feedback on their applications. This feedback will be provided in a format and within a timeframe to be determined by the CDFI Fund, based on available resources. The CDFI Fund further 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 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 will provide information regarding the changes through the CDFI Fund’s Web site. There is no right to appeal the CDFI Fund’s allocation decisions. The CDFI Fund’s allocation decisions are final. VI. Award Administration Information 1. Failure to meet reporting requirements: If an Allocatee, or an Affiliate of an Allocatee, is a prior CDFI Fund awardee or Allocatee under any CDFI Fund program and is not current on the reporting requirements set forth in the previously executed assistance, allocation or award agreement(s), as of the date of the award notification or thereafter, the CDFI Fund reserves the right, in its sole discretion, to delay entering into an Allocation Agreement and/or to impose limitations on an Allocatee’s ability to issue QEIs to investors 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 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 allocation made under this NOAA. 2. Pending resolution of noncompliance: If an Allocatee 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 Allocation Agreement and/or to impose limitations on the Allocatee’s ability to issue Qualified Equity Investments to investors, pending full resolution, in the sole determination of the CDFI Fund, of the noncompliance. Further, if an Affiliate of an Allocatee 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 E:\FR\FM\08APN1.SGM 08APN1 sroberts on DSKD5P82C1PROD with NOTICES Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices Agreement, the CDFI Fund reserves the right, in its sole discretion, to delay entering into an Allocation Agreement and/or to impose limitations on the Allocatee’s ability to issue QEIs to investors, 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 notification made under this NOAA. 3. Default status: If, at any time prior to entering into an Allocation Agreement through this NOAA, the CDFI Fund has made a final determination that an Allocatee that is a prior CDFI Fund awardee or Allocatee under any CDFI Fund program is in default of a previously executed assistance, allocation or award agreement(s) and has provided written notification of such determination to the Allocatee, the CDFI Fund reserves the right, in its sole discretion, to delay entering into an Allocation Agreement and/or to impose limitations on the Allocatee’s ability to issue QEIs to investors, 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 Allocation Agreement through this NOAA, the CDFI Fund has made a final determination that an Affiliate of the Allocatee is a prior CDFI Fund awardee or Allocatee under any CDFI Fund program, and is in default of a previously executed assistance, allocation or award agreement(s) and has provided written notification of such determination to the defaulting entity, the CDFI Fund reserves the right, in its sole discretion, to delay entering into an Allocation Agreement and/or to impose limitations on the Allocatee’s ability to issue QEIs to investors, 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, the CDFI Fund reserves the right, in its sole discretion, to terminate and rescind the Notice of Allocation and the allocation made under this NOAA. 4. Termination in default: If (i) within the 12-month period prior to entering into an Allocation Agreement through this NOAA, the CDFI Fund has made a final determination that an Allocatee that is a prior CDFI Fund awardee or VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 Allocatee under any CDFI Fund program whose award or allocation was terminated in default of such prior agreement; (ii) the CDFI Fund has provided written notification of such determination to such organization; and (iii) the final reporting period end date for the applicable terminated agreement falls in such organization’s 2008 or 2009 fiscal year, the CDFI Fund reserves the right, in its sole discretion, to delay entering into an Allocation Agreement and/or to impose limitations on the Allocatee’s ability to issue QEIs to investors. Furthermore, if (i) within the 12-month period prior to entering into an Allocation Agreement through this NOAA, the CDFI Fund has made a final determination that an Affiliate of the Allocatee is a prior CDFI Fund awardee or Allocatee under any CDFI Fund program whose award or allocation was terminated in default of such prior agreement; (ii) the CDFI Fund has provided written notification of such determination to the defaulting entity; and (iii) the final reporting period end date for the applicable terminated agreement falls in such defaulting entity’s 2008 or 2009 fiscal year, the CDFI Fund reserves the right, in its sole discretion, to delay entering into an Allocation Agreement and/or to impose limitations on the Allocatee’s ability to issue QEIs to investors. 5. Allocation Agreement: Each applicant that is selected to receive a NMTC Allocation (including the applicant’s Subsidiary transferees) must enter into an Allocation Agreement with the CDFI Fund. The Allocation Agreement will set forth certain required terms and conditions of the NMTC Allocation which may include, but are not limited to, the following: (i) The amount of the awarded NMTC Allocation; (ii) the approved uses of the awarded NMTC Allocation (e.g., loans to or equity investments in Qualified Active Low-Income Businesses or loans to or equity investments in other CDEs); (iii) the approved service area(s) in which the proceeds of QEIs may be used, including the dollar amount of QLICIs that must be invested in NonMetropolitan counties; (iv) the time period by which the applicant may obtain QEIs from investors; (v) reporting requirements for all applicants receiving NMTC Allocations; and (vi) a requirement to maintain certification as a CDE throughout the term of the Allocation Agreement. If an applicant has represented in its NMTC allocation application that it intends to invest substantially all of the proceeds from its investors in businesses in which persons unrelated to the applicant hold PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 18025 a majority equity interest, the Allocation Agreement will contain a covenant whereby said applicant agrees that it will invest substantially all of said proceeds in businesses in which persons unrelated to the applicant hold a majority equity interest. In addition to entering into an Allocation Agreement, each applicant selected to receive a NMTC Allocation must furnish to the CDFI Fund an opinion from its legal counsel, the content of which will be further specified in the Allocation Agreement, to include, among other matters, an opinion that an applicant (and its Subsidiary transferees, if any): (i) Is duly formed and in good standing in the jurisdiction in which it was formed and the jurisdiction(s) in which it operates; (ii) has the authority to enter into the Allocation Agreement and undertake the activities that are specified therein; (iii) has no pending or threatened litigation that would materially affect its ability to enter into and carry out the activities specified in the Allocation Agreement; and (iv) is not in default of its articles of incorporation, bylaws or other organizational documents, or any agreements with the Federal government. If an Allocatee identifies Subsidiary transferees, the CDFI Fund reserves the right to require an Allocatee to provide supporting documentation evidencing that it Controls such entities prior to entering into an Allocation Agreement with the Allocatee and its Subsidiary transferees. The CDFI Fund reserves the right, in its sole discretion, to rescind its allocation award if the Allocatee fails to return the Allocation Agreement, signed by the authorized representative of the Allocatee, and/or provide the CDFI Fund with any other requested documentation, within the deadlines set by the CDFI Fund. 6. Fees: The CDFI Fund reserves the right, in accordance with applicable Federal law and if authorized, to charge allocation reservation and/or compliance monitoring fees to all entities receiving NMTC Allocations. Prior to imposing any such fee, the CDFI Fund will publish additional information concerning the nature and amount of the fee. 7. Reporting: The CDFI Fund will collect information, on at least an annual basis, from all applicants that are awarded NMTC Allocations and/or are recipients of QLICIs, including such audited financial statements and opinions of counsel as the CDFI Fund deems necessary or desirable, in its sole discretion. The CDFI Fund will use such information to monitor each Allocatee’s compliance with the provisions of its E:\FR\FM\08APN1.SGM 08APN1 18026 Federal Register / Vol. 75, No. 67 / Thursday, April 8, 2010 / Notices sroberts on DSKD5P82C1PROD with NOTICES Allocation Agreement and to assess the impact of the NMTC Program in LowIncome Communities. The CDFI Fund may also provide such information to the IRS in a manner consistent with IRC § 6103 so that the IRS may determine, among other things, whether the Allocatee has used substantially all of the proceeds of each QEI raised through its NMTC Allocation to make QLICIs. The Allocation Agreement shall further describe the Allocatee’s reporting requirements. The CDFI Fund reserves the right, in its sole discretion, to modify these reporting requirements if it determines it to be appropriate and necessary; however, such reporting requirements will be modified only after due notice to Allocatees. VII. Agency Contacts The CDFI Fund will provide programmatic and information technology support related to the allocation application between the hours of 9 a.m. and 5 p.m. ET through May 31, 2010. The CDFI Fund will not respond to phone calls or e-mails concerning the application that are received after 5 p.m. ET on May 31, 2010 until after the allocation application deadline of June 2, 2010. Applications and other information regarding the CDFI Fund and its programs may be obtained from the CDFI Fund’s Web site at http:// www.cdfifund.gov. The CDFI Fund will post on its Web site responses to questions of general applicability regarding the NMTC Program. A. Information technology support: Technical support can be obtained by calling (202) 622–2455 or by e-mail at ithelpdesk@cdfi.treas.gov. People who have visual or mobility impairments that prevent them from accessing the Low-Income Community maps using the CDFI Fund’s Web site should call (202) 622–2455 for assistance. These are not toll-free numbers. B. Programmatic support: If you have any questions about the programmatic requirements of this NOAA, contact the CDFI Fund’s NMTC Program Manager by e-mail at cdfihelp@cdfi.treas.gov, by telephone at (202) 622–6355, by facsimile at (202) 622–7754, or by mail at CDFI Fund, 601 13th Street, NW., Suite 200 South, Washington, DC 20005. These are not toll-free numbers. C. Administrative support: If you have any questions regarding the administrative requirements of this NOAA, contact the CDFI Fund’s NMTC Program Manager by e-mail at cdfihelp@cdfi.treas.gov, by telephone at (202) 622–6355, by facsimile at (202) 622–2445, or by mail at CDFI Fund, 601 VerDate Nov<24>2008 16:26 Apr 07, 2010 Jkt 220001 13th Street, NW., Suite 200 South, Washington, DC 20005. These are not toll-free numbers. D. IRS support: For questions regarding the tax aspects of the NMTC Program, contact Branch Five, Office of the Associate Chief Counsel (Passthroughs and Special Industries), IRS, by telephone at (202) 622–3040, by facsimile at (202) 622–4753, or by mail at 1111 Constitution Avenue, NW, Attn: CC:PSI:5, Washington, DC 20224. These are not toll-free numbers. E. Legal counsel support: If you have any questions or matters that you believe require response by the CDFI Fund’s Office of Legal Counsel, please refer to the document titled ‘‘How to Request a Legal Review,’’ found on the CDFI Fund’s Web site at http:// www.cdfifund.gov. on SENSE, Sudan; Audit and Finance Committee Report; Vote on the National Peace Essay Contest winners; Other General Issues. Contact: Tessie F. Higgs, Executive Office, Telephone: (202) 429–3836. VIII. Information Sessions The Department of Veterans Affairs (VA) gives notice under Public Law 92– 463 (Federal Advisory Committee Act) that a meeting of the Advisory Committee on the Readjustment of Veterans will be held on April 22–23, 2010, at the Crystal Gateway Marriott, 1700 Jefferson Davis Highway, Arlington, Virginia. The sessions will begin at 8 a.m. each day and end at 4:30 p.m. on April 22 and at 4 p.m. on April 23. The meeting is open to the public. The purpose of the Committee is to review the post-war readjustment needs of combat Veterans and to evaluate the availability and effectiveness of VA programs to meet these needs. On April 22, the Committee will receive a review of the service needs of combat Veterans with Traumatic Brain Injury and VA’s rehabilitation programs established to meet the needs of severely wounded Veterans and family members. The Committee will also be briefed on VA and Department of Defense (DoD) collaborative ventures, and DoD’s Defense Centers of Excellence for Mental Health. The day’s agenda will conclude with Veterans Health Administration (VHA) briefings on services to Veterans’ family members and evidence-based practices for the treatment of war-related Post-Traumatic Stress Disorder. On April 23, the Committee will receive a briefing on the current initiatives of the Readjustment Counseling Service Vet Center program to ensure timely access and the availability of quality readjustment services to assist the Veterans returning from Operation Enduring Freedom and Operation Iraqi Freedom. The Committee will receive additional briefings on services to women Veterans and VHA’s Suicide Prevention program. The Committee will also finalize In connection with this NOAA, the CDFI Fund may conduct multiple information sessions around the country at locations to be announced, as well as an information session that will be produced in Washington, DC and broadcast over the Internet via Web casting. For further information on these upcoming information sessions, please visit the CDFI Fund’s Web site at http:// www.cdfifund.gov or call the CDFI Fund at (202) 927–6224. Authority: 26 U.S.C. 45D; 31 U.S.C. 321; 26 CFR 1.45D–1. Dated: April 1, 2010. Donna J. Gambrell, Director, Community Development Financial Institutions Fund. [FR Doc. 2010–8008 Filed 4–7–10; 8:45 am] BILLING CODE 4810–70–P UNITED STATES INSTITUTE OF PEACE Notice of Meeting United States Institute of Peace. Date/Time: Thursday, April 29, 2010; 9:15 a.m.–3:15 p.m. Location: 1200 17th Street, NW., Suite 200, Washington, DC 20036–3011. Status: Open Session—Portions may be closed pursuant to Subsection (c) of Section 552(b) of Title 5, United States Code, as provided in subsection 1706(h)(3) of the United States Institute of Peace Act, Public Law 98–525. Agenda: April 29, 2010 Board Meeting; Approval of Minutes of the One Hundred Thirty-Sixth Meeting (January 14, 2010) of the Board of Directors; Chairman’s Report; Presidents Report; Introduction of Peace Scholars; Discussion of Grants Process; Updates AGENCY: PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 Dated: April 1, 2010. Tara Sonenshine, Executive Vice President, United States Institute of Peace. [FR Doc. 2010–7726 Filed 4–7–10; 8:45 am] BILLING CODE 6820–AR–M DEPARTMENT OF VETERANS AFFAIRS Advisory Committee on the Readjustment of Veterans; Notice of Meeting E:\FR\FM\08APN1.SGM 08APN1

Agencies

[Federal Register Volume 75, Number 67 (Thursday, April 8, 2010)]
[Notices]
[Pages 18016-18026]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8008]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Allocation Availability (NOAA) Inviting Applications 
for the CY 2010 Allocation Round of the New Markets Tax Credit Program

    Funding Opportunity Title: Notice of Allocation Availability (NOAA) 
Inviting Applications for the CY 2010 Allocation Round of the New 
Markets Tax Credit Program.
    Announcement Type: Initial announcement of tax credit allocation 
availability.

DATES: Electronic applications must be received by 5 p.m. ET on June 2, 
2010. Applications sent by mail, facsimile or other form will not be 
accepted. Please note the Community Development Financial Institutions 
Fund (the CDFI Fund) will only accept applications and attachments 
(i.e., signature page, investor letters and organizational charts) in 
electronic form (see Section IV.D. of this NOAA for more details). 
Applications must meet all eligibility and other requirements and 
deadlines, as applicable, set forth in this NOAA. Allocation applicants 
that are not yet certified as Community Development Entities (CDEs) 
must submit an application for certification as a CDE that is 
postmarked on or before April 23, 2010 (see Section III of this NOAA 
for more details).
    Executive Summary: Subject to authorization from Congress in 2010, 
this NOAA is issued in connection with the calendar year 2010 tax 
credit allocation round of the New Markets Tax Credit (NMTC) Program, 
as initially authorized by Title I, subtitle C, section 121 of the 
Community Renewal Tax Relief Act of 2000 (Pub. L. 106-554) and amended 
by section 221 of the American Jobs Creation Act of 2004 (Pub. L. 108-
357), section 101 of the Gulf Opportunity Zone Act of 2005 (Pub. L. 
108-357), and Division A, section 102 of the Tax Relief and Health Care 
Act of 2006 (Pub. L. 109-432) (the Act). Through the NMTC Program, the 
CDFI Fund provides authority to CDEs to offer an incentive to investors 
in the form of tax credits over seven years, which is expected to 
stimulate the provision of private investment capital that, in turn, 
will facilitate economic and community development in Low-Income 
Communities. Through this NOAA, the CDFI Fund announces, subject to 
authorization, the availability of up to $5 billion of NMTC authority 
authorized by the Act.
    In this NOAA, the CDFI Fund specifically addresses how an entity 
may apply to receive an allocation of NMTCs, the competitive procedure 
through which NMTC Allocations will be made, and the actions that will 
be taken to ensure that proper allocations are made to appropriate 
entities.

I. Allocation Availability Description

A. Programmatic Changes

    1. Allocation Amounts: As described in Section IIA, the CDFI Fund 
anticipates that it will provide allocation awards of not more than 
$150 million per applicant.
    2. Prior QEI Issuance Requirements: In order to be eligible to 
apply for NMTC allocations in the 2010 round, as described in Section 
III.A.2(a), applicants that have received NMTC allocation awards in 
previous rounds

[[Page 18017]]

are required to meet minimum Qualified Equity Investment (QEI) issuance 
thresholds with respect to their prior-year allocations. These 
thresholds have been revised in comparison to the 2009 NOAA.
    3. Affiliated Governmental Entities: As stated in Section III.A.4 
of the NOFA, in certain circumstances, the CDFI Fund may allow multiple 
entities that are Controlled by the same governmental entity to submit 
applications in the same round.
    4. Electronic Application Submission: As stated in Sections III.C 
and III.D of this NOFA, the CDFI Fund will require the application and 
all attachments to the application to be submitted electronically.
    5. Application Selection Criteria: In August of 2009, in accordance 
with the requirements of the Paperwork Reduction Act (PRA), 74 FR 
38482, the CDFI Fund solicited public comments with respect to the NMTC 
application. As a result of comments received, the CDFI Fund has 
modified the contents of its application form and, in some cases, its 
application review criteria. These modifications are reflected in 
Section V.A of this NOAA.
    6. Ensuring Rural Proportionality: As stated in Section V.C of this 
NOFA, the CDFI Fund may enlarge the applicant review pool to include 
more Rural CDEs, if necessary to ensure that 20 percent of the 
aggregate NMTC investments are made in non-metropolitan areas.
    B. Program guidance and regulations: This NOAA provides guidance 
for the application and allocation of NMTCs for the eighth round of the 
NMTC Program and should be read in conjunction with: (i) Guidance 
published by the CDFI Fund on how an entity may apply to become 
certified as a CDE (66 FR 65806, December 20, 2001); (ii) the final 
regulations issued by the Internal Revenue Service (26 CFR 1.45D-1, 
published on December 28, 2004) and related guidance, notices and other 
publications; and (iii) the application and related materials for this 
eighth NMTC Program allocation round. All such materials may be found 
on the CDFI Fund's Web site at http://www.cdfifund.gov. The CDFI Fund 
encourages applicants to review these documents. Capitalized terms 
used, but not defined, in this NOAA shall have the respective meanings 
assigned to them in the allocation application, IRC Sec.  45D or the 
IRS regulations.

II. Allocation Information

    A. Allocation amounts: Pursuant to the Act, the CDFI Fund expects 
that it may allocate to CDEs the authority to issue to their investors 
up to the aggregate amount of $5.0 billion in equity as to which NMTCs 
may be claimed, as permitted under IRC Sec.  45D(f)(1)(D). Pursuant to 
this NOAA, the CDFI Fund anticipates that it will not issue more than 
$150 million in tax credit allocation authority per applicant. The CDFI 
Fund, in its sole discretion, reserves the right to allocate amounts in 
excess of or less than the anticipated maximum allocation amount should 
the CDFI Fund deem it appropriate. In order to receive an allocation in 
excess of the $150 million cap, an applicant, at a minimum, will need 
to demonstrate that: (i) No part of its strategy can be successfully 
implemented without an allocation in excess of the applicable cap; and/
or (ii) its strategy will produce extraordinary community impact. The 
CDFI Fund reserves the right to allocate tax credit authority to any, 
all, or none of the entities that submit an application in response to 
this NOAA, and in any amount it deems appropriate.
    B. Types of awards: NMTC Program awards are made in the form of tax 
credit authority.
    C. Allocation Agreement: Each Allocatee under this NOAA must sign 
an Allocation Agreement before the NMTC Allocation is effective. The 
Allocation Agreement contains the terms and conditions of the 
allocation. For further information, see Section VI of this NOAA.

III. Eligibility

    A. Eligible applicants: IRC Sec.  45D specifies certain eligibility 
requirements that each applicant must meet to be eligible to apply for 
an allocation of NMTCs. The following sets forth additional detail and 
certain additional dates that relate to the submission of applications 
under this NOAA for the $5.0 billion in general NMTC allocation 
authority.
    1. CDE certification: For purposes of this NOAA, the CDFI Fund will 
not consider an application for an allocation of NMTCs unless: (a) The 
applicant is certified as a CDE at the time the CDFI Fund receives its 
NMTC Program allocation application; or (b) the applicant submits an 
application for certification as a CDE that is postmarked on or before 
April 26, 2010. Applicants for certification may obtain a CDE 
certification application through the CDFI Fund's Web site at http://www.cdfifund.gov. Applications for CDE certification must be submitted 
as instructed in the application form. An applicant that is a community 
development financial institution (CDFI) or a specialized small 
business investment company (SSBIC) does not need to submit a CDE 
certification application; however, it must register as a CDE on the 
CDFI Fund's Web site on or before 5 p.m. ET on April 26, 2010.
    The CDFI Fund will not provide allocations of NMTCs to applicants 
that are not certified as CDEs. See Section IV.D.1.(c) of this NOAA for 
further requirements relating to postmarks.
    If an applicant that has already been certified as a CDE wishes to 
change its designated CDE service area, it must submit its request for 
such a change to the CDFI Fund; and the request must be received by the 
CDFI Fund by 5 p.m. ET on June 2, 2010. The CDE service area change 
request must be sent from the applicant's authorized representative and 
include the applicable CDE control number, the revised service area 
designation, and an updated accountability chart that reflects 
representation from Low-Income Communities in the revised service area. 
The service area change request must be sent by e-mail to 
cme@cdfi.treas.gov or by facsimile to (202) 622-7754.
    2. Prior awardees or Allocatees: 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 NOAA. For purposes of this section, 
the CDFI Fund will consider an Affiliate to be any entity that meets 
the definition of Affiliate as defined in the NMTC allocation 
application materials, or any entity otherwise identified as an 
Affiliate by the applicant in its NMTC allocation application 
materials. Prior awardees of any CDFI Fund Program are eligible to 
apply under this NOAA, except as follows:
    (a) Prior Allocatees and Qualified Equity Investment (QEI) issuance 
requirements: The following describes the QEI issuance requirements 
applicable to prior Allocatees.
    A prior Allocatee in the second round of the NMTC Program (CY 2003-
2004) is not eligible to receive a NMTC Allocation pursuant to this 
NOAA unless the Allocatee is able to affirmatively demonstrate that, as 
of 11:59 p.m. ET on July 21, 2010, it has issued and received funds in-
hand (the term ``funds in-hand'' does not include committed funding) 
from its investors for 95 percent of its QEIs relating to its CY 2003-
2004 NMTC Allocation.
    A prior Allocatee in the third round of the NMTC Program (CY 2005) 
is not eligible to receive a NMTC Allocation pursuant to this NOAA 
unless the Allocatee is able to affirmatively demonstrate that, as of 
11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds 
in-hand from its investors for at least 80 percent of its

[[Page 18018]]

QEIs relating to its CY 2005 NMTC Allocation; or (ii) issued and 
received funds in-hand from its investors for at least 60 percent of 
its QEIs and that 100 percent of its total CY 2005 NMTC Allocation has 
been exchanged for funds in-hand from investors, or has been committed 
by its investors.
    A prior Allocatee in the fourth round of the NMTC Program (CY 2006) 
is not eligible to receive a NMTC Allocation pursuant to this NOAA 
unless the Allocatee is able to affirmatively demonstrate that, as of 
11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds 
in-hand from its investors for at least 60 percent of its QEIs relating 
to its CY 2006 NMTC Allocation; or (ii) issued and received funds in-
hand from its investors for at least 50 percent of its QEIs and that at 
least 80 percent of its total CY 2006 NMTC Allocation has been 
exchanged for funds in-hand from investors, or has been committed by 
its investors.
    A prior Allocatee in the fifth round of the NMTC Program (CY 2007) 
is not eligible to receive a NMTC Allocation pursuant to this NOAA 
unless the Allocatee is able to affirmatively demonstrate that, as of 
11:59 p.m. ET on July 21, 2010, it has: (i) Issued and received funds 
in-hand from its investors for at least 50 percent of its QEIs relating 
to its CY 2007 NMTC Allocation; or (ii) issued and received funds in-
hand from its investors for at least 40 percent of its QEIs and that at 
least 80 percent of its total CY 2007 NMTC Allocation has been 
exchanged for funds in-hand from investors, or has been committed by 
its investors.
    A prior Allocatee (with the exception of a Rural CDE Allocatee) in 
the sixth round of the NMTC Program (CY 2008) is not eligible to 
receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is 
able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 
2010, it has: (i) Issued and received funds in-hand from its investors 
for at least 30 percent of its QEIs relating to its CY 2008 NMTC 
Allocation; or (ii) issued and received funds in-hand from its 
investors for at least 20 percent of its QEIs and that at least 60 
percent of its total CY 2008 NMTC Allocation has been exchanged for 
funds in-hand from investors, or has been committed by its investors. A 
prior Rural CDE Allocatee in the sixth round is not eligible to receive 
a NMTC Allocation pursuant to this NOAA unless the Allocatee can 
demonstrate that, as of 11:59 p.m. ET on July 21, 2010, it has: (i) 
Issued and received funds in-hand from its investors for at least 20 
percent of its QEIs relating to its CY 2008 NMTC Allocation.
    A prior Allocatee (with the exception of a Rural CDE Allocatee) in 
the seventh round of the NMTC Program (CY 2009) is not eligible to 
receive a NMTC Allocation pursuant to this NOAA unless the Allocatee is 
able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 21, 
2010, it has: (i) Issued and received funds in-hand from its investors 
for at least 20 percent of its QEIs relating to its CY 2009 NMTC 
Allocation; or (ii) issued and received funds in-hand from its 
investors for at least 10 percent of its QEIs and that at least 30 
percent of its total CY 2009 NMTC Allocation has been exchanged for 
funds in-hand from investors, or has been committed by its investors. A 
Rural CDE is not required to meet the above QEI issuance and commitment 
thresholds with regard to its 2009 NMTC allocation award.
    In addition to the requirements described above, an entity is not 
eligible to receive a NMTC Allocation pursuant to this NOAA if an 
Affiliate of the applicant is a prior Allocatee and has not met the 
requirements for the issuance and/or commitment of QEIs as set forth 
above for the Allocatees in the prior allocation rounds of the NMTC 
Program.
    Notwithstanding the above, if an applicant has received multiple 
NMTC allocation awards between the second round (CY 2003/2004) and the 
seventh round (CY 2009), the applicant shall be deemed to be eligible 
to apply for a NMTC Allocation pursuant to this NOAA if the applicant 
is able to affirmatively demonstrate that, as of 11:59 p.m. ET on July 
21, 2010, it has issued and received funds in-hand from its investors 
for at least 60 percent of its QEIs relating to its cumulative 
allocation amounts from these prior NMTC Program rounds. Rural CDEs 
that received allocations under the sixth round (CY 2008) may choose to 
exclude such allocations from this cumulative calculation, provided 
that the Allocatee has issued and received funds in-hand from its 
investors for at least 20 percent of its QEIs relating to its CY 2008 
allocation. Rural CDEs that received allocations under the seventh 
round (CY2009) may choose to exclude such allocation from this 
cumulative calculation.
    For purposes of this section of the NOAA, the CDFI Fund will only 
recognize as ``issued'' those QEIs that have been finalized in the CDFI 
Fund's Allocation Tracking System (ATS) by the deadlines specified 
above. Allocatees and their Subsidiary transferees, if any, are advised 
to access ATS to record each QEI that they issue to an investor in 
exchange for funds in-hand. For purposes of this section of the NOAA, 
``committed'' QEIs are only those Equity Investments that are evidenced 
by a written, signed document in which an investor: (i) Commits to make 
an investment in the Allocatee in a specified amount and on specified 
terms; (ii) has made an initial disbursement of the investment proceeds 
to the Allocatee, and such initial disbursement has been recorded in 
ATS as a QEI; (iii) commits to disburse the remaining investment 
proceeds to the Allocatee based on specified amounts and payment dates; 
and (iv) commits to make the final disbursement to the Allocatee no 
later than July 21, 2012.
    The applicant will be required, upon notification from the CDFI 
Fund, to submit adequate documentation to substantiate the required 
issuances of and commitments for QEIs.
    Applicants should be aware that these QEI issuance requirements 
represent the minimum threshold requirements that must be met in order 
to submit an application for assistance under this NOAA. As stated in 
Section V.B.2 of this NOAA, the CDFI Fund reserves the right to reject 
an application and/or adjust award amounts as appropriate based on 
information obtained during the review process--including an 
applicant's track record of raising QEIs and/or deploying its QLICIs.
    Prior Allocatees that require any action by the CDFI Fund (e.g., 
certifying a subsidiary entity as a CDE; adding a subsidiary CDE to an 
Allocation Agreement; etc.) in order to meet the QEI issuance 
requirements above must submit their requests by no later than May 21, 
2010 in order to guarantee that the CDFI Fund completes all necessary 
approvals prior to July 21, 2010. Applicants for certification may 
obtain a CDE certification application through the CDFI Fund's Web site 
at http://www.cdfifund.gov. Applications for CDE certification must be 
submitted as instructed in the application form.
    (b) Failure to meet reporting requirements: The CDFI Fund will not 
consider an application submitted by an applicant if the applicant or 
any of its Affiliates is a prior CDFI Fund 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 application deadline of this NOAA. 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.

[[Page 18019]]

    (c) 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 will consider the 
applicant's application under this NOAA pending full resolution of the 
noncompliance, in the sole determination of the CDFI Fund. 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, 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 will consider the applicant's application under this NOAA 
pending full resolution of the noncompliance, in the sole determination 
of the CDFI Fund.
    (d) Default status: The CDFI Fund will not consider an application 
submitted by an applicant that is a prior CDFI Fund awardee or 
Allocatee under any CDFI Fund program if, as of the application 
deadline of this NOAA, the CDFI Fund has made a final determination 
that such applicant is in default of a previously executed assistance, 
allocation or award agreement(s) and the CDFI Fund has provided written 
notification of such determination to such applicant.
    Further, an entity is not eligible to apply for an allocation 
pursuant to this NOAA if, as of the application deadline of this NOAA, 
the CDFI Fund has made a final determination that an Affiliate of the 
Applicant is a prior CDFI Fund 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) and 
the CDFI Fund has provided written notification of such determination. 
Such entities will be ineligible to apply for an award pursuant to this 
NOAA 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.
    (e) Termination in default: The CDFI Fund will not consider an 
application submitted by an applicant that is a prior CDFI Fund awardee 
or Allocatee under any CDFI Fund program if: (i) Within the 12-month 
period prior to the application deadline of this NOAA, 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); (ii) the CDFI Fund has provided 
written notification of such determination to such applicant; and (iii) 
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 allocation 
pursuant to this NOAA if: (i) Within the 12-month period prior to the 
application deadline of this NOAA, the CDFI Fund has made a final 
determination that an Affiliate of the Applicant is a prior CDFI Fund 
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); (ii) the CDFI Fund has provided 
written notification of such determination to the defaulting entity; 
and (iii) 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 NOAA.
    (f) Undisbursed award funds: The CDFI Fund will not consider an 
application submitted by an applicant that is a prior CDFI Fund Awardee 
under any CDFI Fund program if the Applicant has a balance of 
undisbursed award funds (defined below) under said prior award(s), as 
of the applicable application deadline of this NOAA. Furthermore, an 
entity is not eligible to apply for an award pursuant to this NOAA if 
an Affiliate of the Applicant is a prior CDFI Fund 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 
NOAA. In a case where an Affiliate of the Applicant is a prior CDFI 
Fund 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 NOAA, 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 NOAA are included (``includable BEA 
awards''). Thus, for purposes of this NOAA, 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 NOAA.
    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 entity that Controls the Applicant, is 
Controlled by the Applicant or shares common management officials with 
the Applicant, as determined by the CDFI Fund) two to five calendar 
years prior to the end of the calendar year of the application deadline 
of this NOAA are included (``includable CDFI/NI awards''). Thus, for 
purposes of this NOAA, undisbursed CDFI Program and Native Initiative 
(NI) awards are the amount of FYs 2005, 2006, 2007 and 2008 awards that 
remain undisbursed as of the application deadline of this NOAA.
    To calculate total includable BEA/CDFI/NI awards: amounts that are 
undisbursed as of the application deadline of this NOAA cannot exceed 
five percent (5%) of the total includable awards. Please refer to an 
example of this calculation in the 2010 Allocation Application Q&A 
document, available on the CDFI Fund's Web site.
    The ``undisbursed award funds'' calculation 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 CDFI Fund 
received a full and complete disbursement request from the Awardee by 
the applicable application deadline of this NOAA; (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 30 business days prior to the 
application deadline of this NOAA.
    (g) Contact the CDFI Fund: Accordingly, Applicants that are prior 
awardees and/or Allocatees under any other CDFI Fund program are 
advised to: (i) Comply with the 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 of 
any outstanding

[[Page 18020]]

balance of a prior award(s). All outstanding reports and compliance 
questions should be directed to the Compliance Manager by e-mail at 
cme@cdfi.treas.gov, by telephone at (202) 622-8453, or by facsimile at 
(202) 622-8728. All disbursement questions should be directed to the 
CDFI Fund's Senior Resource Manager by telephone at (202) 622-7165 or 
by facsimile at (202) 622-8728. Requests submitted less than thirty 
calendar days prior to the application deadline may not receive a 
response before the application deadline.
    Both the Compliance Manager and the Senior Resource Manager may be 
reached by mail at CDFI Fund, 601 13th Street, NW., Suite 200 South, 
Washington, DC 20005.
    The CDFI Fund will respond to Applicants' reporting, compliance or 
disbursement questions between the hours of 9 a.m. and 5 p.m. ET, 
starting the date of publication of this NOAA through May 31, 2010 (two 
days before the application deadline). The CDFI Fund will not respond 
to Applicants' reporting, compliance or disbursement phone calls or e-
mail inquiries that are received after 5 p.m. ET on May 31, 2010 until 
after the funding application deadline of June 2, 2010.
    3. Entities that propose to transfer NMTCs to Subsidiaries: Both 
for-profit and non-profit CDEs may apply to the CDFI Fund for 
allocations of NMTCs, but only a for-profit CDE is permitted to provide 
NMTCs to its investors. A non-profit applicant wishing to apply for a 
NMTC Allocation must demonstrate, prior to entering into an Allocation 
Agreement with the CDFI Fund, that: (i) It controls one or more 
Subsidiaries that are for-profit entities; and (ii) it intends to 
transfer the full amount of any NMTC Allocation it receives to said 
Subsidiary.
    An applicant wishing to transfer all or a portion of its NMTC 
Allocation to a Subsidiary is not required to create the Subsidiary 
prior to submitting a NMTC allocation application to the CDFI Fund. 
However, the Subsidiary entities must be certified as CDEs by the CDFI 
Fund, and enjoined as parties to the Allocation Agreement at closing or 
by amendment to the Allocation Agreement after closing. Before the NMTC 
Allocation transfer may occur it must be pre-approved by the CDFI Fund, 
in its sole discretion.
    The CDFI Fund strongly encourages a non-profit applicant to submit 
a CDE certification application to the CDFI Fund on behalf of the 
Subsidiary within 30 days after the non-profit applicant receives the 
draft Allocation Agreement from the CDFI Fund; as such Subsidiary must 
be certified as a CDE prior to entering into an Allocation Agreement 
with the CDFI Fund. A non-profit applicant that fails to certify one or 
more for-profit subsidiaries within 30 days of receiving the draft 
Allocation Agreement from the CDFI Fund is subject to the CDFI Fund 
rescinding the award.
    4. Entities that submit applications together with Affiliates; 
applications from common enterprises: (a) As part of the allocation 
application review process, the CDFI Fund considers whether applicants 
are Affiliates, as such term is defined in the allocation application. 
If an applicant and its Affiliates wish to submit allocation 
applications, they must do so collectively, in one application; an 
applicant and its Affiliates may not submit separate allocation 
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 allocation. In the case of governmental entities, the 
CDFI Fund may accept applications submitted by Affiliated entities, but 
only to the extent the CDFI Fund determines that the business 
strategies and/or activities described in such applications, submitted 
by separate entities, are distinctly dissimilar and are operated and/or 
managed by distinctly dissimilar boards and staff, including identified 
consultants. In such cases, the CDFI Fund reserves the right to limit 
award amounts to such entities to ensure that the entities do not 
collectively receive more than the $150 million cap for any single 
entity.
    For purposes of this NOAA, in addition to assessing whether 
applicants meet the definition of the term ``Affiliate'' found in the 
allocation application, 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 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 allocation; 
and, in the event that an Application is selected to receive an 
allocation award, to deem certain activities ineligible. These 
requirements shall apply to all applicants, including those that are 
Affiliated with governmental entities.
    (b) Furthermore, an applicant that receives an allocation in this 
allocation round (or its Subsidiary transferee) may not become an 
Affiliate of or member of a common enterprise (as defined above) with 
another applicant that receives an allocation in this allocation round 
(or its Subsidiary transferee) at any time after the submission of an 
allocation application under this NOAA. This prohibition, however, 
generally does not apply to entities that are commonly Controlled 
solely because of common ownership by QEI investors. This requirement 
will also be a term and condition of the Allocation Agreement (see 
Section VI.B. of this NOAA and additional application guidance 
materials on the CDFI Fund's Web site at http://www.cdfifund.gov for 
more details).
    5. Entities created as a series of funds: An applicant whose 
business structure consists of an entity with a series of funds may 
apply for CDE certification as a single entity, or as multiple 
entities. If such an applicant represents that it is properly 
classified for Federal tax purposes as a single partnership or 
corporation, it may apply for CDE certification as a single entity. If 
an applicant represents that it is properly classified for Federal tax 
purposes as multiple partnerships or corporations, then it may submit a 
single CDE certification application on behalf of the entire series of 
funds, and each fund must be separately certified as a CDE. Applicants 
should note, however, that receipt of CDE certification as a single 
entity or as multiple entities is not a determination that an applicant 
and its related funds are properly classified as a single entity or as 
multiple entities for Federal tax purposes. Regardless of whether the 
series of funds is classified as a single partnership or corporation or 
as multiple partnerships or corporations, an applicant may not transfer 
any NMTC Allocations it receives to one or more of its funds unless the 
transfer is pre-approved by the CDFI Fund, in its sole discretion, 
which will be a condition of the Allocation Agreement.
    6. Entities that are BEA Program awardees: An insured depository 
institution investor (and its Affiliates and Subsidiaries) may not 
receive a NMTC Allocation in addition to a BEA Program award for the 
same investment in a CDE. Likewise, an insured depository institution 
investor (and its Affiliates and Subsidiaries) may not

[[Page 18021]]

receive a BEA Program award in addition to a NMTC Allocation for the 
same investment in a CDE.

IV. Application and Submission Information

    A. Address to request application package: Applicants must submit 
applications electronically under this NOAA, through the CDFI Fund Web 
site. Following the publication of this NOAA, the CDFI Fund will make 
the electronic allocation application available on its Web site at 
http://www.cdfifund.gov. Applications sent by mail, facsimile or other 
form will not be accepted. Please note the CDFI Fund will only accept 
the application and attachments (i.e. signature page, investor letters 
and organizational charts) in electronic form.
    B. Application content requirements: Detailed application content 
requirements are found in the application related to this NOAA. 
Applicants must submit all materials described in and required by the 
application by the applicable deadlines. Applicants will not be 
afforded an opportunity to provide any missing materials or 
documentation. Electronic applications must be submitted solely by 
using the format made available at the CDFI Fund's Web site. Additional 
information, including instructions relating to the submission of 
supporting information (i.e., signature page, investor letters and 
organizational charts), is set forth in further detail in the 
electronic application. An application must include a valid and current 
Employer Identification Number (EIN) issued by the Internal Revenue 
Service and assigned to the applicant and, if applicable, its 
Controlling Entity. Electronic applications without a valid EIN are 
incomplete and cannot be transmitted to the CDFI Fund. For more 
information on obtaining an EIN, please contact the Internal Revenue 
Service at (800) 829-4933 or www.irs.gov.
    An applicant may not submit more than one application in response 
to this NOAA. In addition, as stated in Section III.A.4 of this NOAA, 
an applicant and its Affiliates must collectively submit only one 
allocation application; an applicant and its Affiliates may not submit 
separate allocation applications except as outlined above. Once an 
application is submitted, an applicant will not be allowed to change 
any element of its application.
    C. Form of application submission: Applicants may only submit 
applications under this NOAA electronically. Applications sent by 
facsimile or by e-mail will not be accepted. Submission of an 
electronic application will facilitate the processing and review of 
applications and the selection of Allocatees; further, it will assist 
the CDFI Fund in the implementation of electronic reporting 
requirements.
    1. Electronic applications: Electronic applications must be 
submitted solely by using the CDFI Fund's Web site and must be sent in 
accordance with the submission instructions provided in the electronic 
application form. Applicants will need access to Internet Explorer 5.5 
or higher, Windows 98 or higher (or other system compatible with the 
above Explorer software) and optimally at least a 56Kbps Internet 
connection in order to meet the electronic application submission 
requirements. The CDFI Fund's electronic application system will only 
permit the submission of applications in which all required questions 
and tables are fully completed. Additional information, including 
instructions relating to the submission of supporting information 
(i.e., signature page, investor letters and organizational charts) is 
set forth in further detail in the electronic application.
    D. Application submission dates and times:
    1. Application deadlines:
    (a) Electronic applications: must be received by 5 p.m. ET on June 
2, 2010. Electronic applications cannot be transmitted or received 
after 5 p.m. ET on June 2, 2010. In addition, applicants that submit 
electronic applications must separately submit supporting information 
(i.e., signature page, investor letters and organizational charts) via 
their myCDFIFund account. The signature page, investor letters and 
organizational charts must be submitted on or before June 4, 2010. See 
application instructions, provided in the electronic application, for 
further detail. Applications and other required documents received 
after this date and time will be rejected. If the signature page, 
investor letters and organizational charts are not received by the 
deadline specified above, the application will be rejected. Please note 
that the document submission deadlines in this NOAA and/or the 
allocation application are strictly enforced.
    (b) Postmark: For purposes of this NOAA, the term ``postmark'' is 
defined by 26 CFR 301.7502-1. In general, the CDFI Fund will require 
that the postmarked document bear a postmark date that is on or before 
the applicable deadline. The document must be in an envelope or other 
appropriate wrapper, properly addressed as set forth in this NOAA and 
delivered by the United States Postal Service or any other private 
delivery service designated by the Secretary of the Treasury. For more 
information on designated delivery services, please see IRS Notice 
2002-62, 2002-2 C.B. 574.
    E. Intergovernmental Review: Not applicable.
    F. Funding Restrictions: For allowable uses of investment proceeds 
related to a NMTC Allocation, please see 26 U.S.C. 45D and the final 
regulations issued by the Internal Revenue Service (26 CFR 1.45D-1, 
published December 28, 2004) and related guidance. Please see Section 
I, above, for the Programmatic Changes of this NOAA.

V. Application Review Information

    There are two parts to the substantive review process for each 
allocation application: Phase 1 and Phase 2. In Phase 1, the CDFI Fund 
will evaluate each application, assigning points and numeric scores 
according to the criteria described below. In Phase 2, the CDFI Fund 
will rank applicants in accordance with the procedures set forth below.
    A. Criteria:
    1. Business Strategy (25-point maximum): (a) When assessing an 
applicant's business strategy, reviewers will consider, among other 
things: The applicant's products, services and investment criteria; the 
prior performance of the applicant or its Controlling Entity, 
particularly as it relates to making similar kinds of investments as 
those it proposes to make with the proceeds of QEIs; the applicant's 
prior performance in providing capital or technical assistance to 
disadvantaged businesses or communities; the projected level of the 
applicant's pipeline of potential investments; the extent to which the 
applicant intends to make Qualified Low-Income Community Investments 
(QLICIs) in one or more businesses in which persons unrelated to the 
entity hold a majority equity interest; and the extent to which 
applicants that otherwise have notable relationships with the QALICBs 
financed will create benefits (beyond those created in the normal 
course of a NMTC transaction) to Low-Income Communities.
    Under the Business Strategy criterion, an applicant will generally 
score well to the extent that it will deploy debt or investment capital 
in products or services which: (i) Are designed to meet the needs of 
underserved markets; (ii) are flexible or non-traditional in form and 
on better terms than available in the marketplace; and (iii) focus on 
customers or partners that typically lack access to conventional 
sources of capital. An applicant will also score well to the extent 
that, among other

[[Page 18022]]

things, it: (i) Has a track record of successfully providing products 
and services similar to those it intends to use with the proceeds of 
QEIs; (ii) has identified, or has a process for identifying, potential 
transactions; (iii) demonstrates a likelihood of issuing QEIs and 
making the related QLICIs in a time period that is significantly 
shorter than the 5-year period permitted under IRC Sec.  45D(b)(1); and 
(iv) in the case of an applicant proposing to purchase loans from CDEs, 
the applicant will require the CDE selling such loans to re-invest the 
proceeds of the loan sale to provide additional products and services 
to Low-Income Communities.
    (b) Priority Points: In addition, as provided by IRC Sec.  
45D(f)(2), the CDFI Fund will ascribe additional points to entities 
that meet one or both of the statutory priorities. First, the CDFI Fund 
will give up to five (5) additional points to any applicant that has a 
record of having successfully provided capital or technical assistance 
to disadvantaged businesses or communities. Second, the CDFI Fund will 
give five (5) additional points to any applicant that intends to 
satisfy the requirement of IRC Sec.  45D(b)(1)(B) by making QLICIs in 
one or more businesses in which persons unrelated (within the meaning 
of IRC Sec.  267(b) or IRC Sec.  707(b)(1)) to an applicant (or the 
applicant's subsidiary CDEs) hold the majority equity interest. 
Applicants may earn points for one or both statutory priorities. Thus, 
applicants that meet the requirements of both priority categories can 
receive up to a total of ten (10) additional points. A record of having 
successfully provided capital or technical assistance to disadvantaged 
businesses or communities may be demonstrated either by the past 
actions of an applicant itself or by its Controlling Entity (e.g., 
where a new CDE is established by a nonprofit corporation with a 
history of providing assistance to disadvantaged communities). An 
applicant that receives additional points for intending to make 
investments in unrelated businesses and is awarded a NMTC Allocation 
must meet the requirements of IRC Sec.  45D(b)(1)(B) by investing 
substantially all of the proceeds from its QEIs in unrelated 
businesses. The CDFI Fund will factor in an applicant's priority points 
when ranking applicants during Phase 2 of the review process, as 
described below.
    2. Community Impact (25-point maximum): In assessing the potential 
benefits to Low-Income Communities that may result from the applicant's 
proposed investments, reviewers will consider, among other things, the 
degree to which the applicant is likely to achieve significant and 
measurable community development outcomes in its Low-Income 
Communities, and whether the applicant is working in particularly 
economically distressed markets and/or in concert with Federal, State 
or local government or community economic development initiatives 
(e.g., Empowerment Zones, Enterprise Communities, and Renewal 
Communities). An applicant will generally score well under this section 
to the extent that: (a) It articulates how its strategy is likely to 
produce significant and measurable community development outcomes that 
would not be achieved without NMTCs; and (b) it is working in 
particularly economically distressed or otherwise underserved 
communities and/or in concert with other Federal, State or local 
government or community economic development initiatives.
    3. Management Capacity (25-point maximum). In assessing an 
applicant's management capacity, reviewers will consider, among other 
things, the qualifications of the applicant's principals, its board 
members, its management team, and other essential staff or contractors, 
with specific focus on: experience in deploying capital or technical 
assistance, including activities similar to those described in the 
applicant's business strategy; asset management and risk management 
experience; experience with fulfilling compliance requirements of other 
governmental programs, including other tax programs; and the 
applicant's (or its Controlling Entity's) financial health. Reviewers 
will also consider the extent to which an applicant has protocols in 
place to ensure ongoing compliance with NMTC Program requirements and 
the level of involvement of community representatives and other 
stakeholders in the design, implementation or monitoring of an 
applicant's business plan and strategy. In the case of an applicant or 
its Affiliate that has received a NMTC Allocation from the CDFI Fund 
under a prior allocation round, reviewers will consider the activities 
that have occurred to date with respect to the prior allocation(s).
    An applicant will generally score well under this section to the 
extent that its management team or other essential personnel have 
experience in: (a) Deploying capital or technical assistance in Low-
Income Communities, particularly those likely to be served by the 
applicant with the proceeds of QEIs; (b) asset and risk management; and 
(c) fulfilling government compliance requirements, particularly tax 
credit program compliance. An applicant will also score well to the 
extent it demonstrates strong financial health and a high likelihood of 
remaining a going-concern; it has policies and systems in place to 
ensure ongoing compliance with NMTC Program requirements, and Low-
Income Community stakeholders play an active role in designing or 
implementing its business plan.
    4. Capitalization Strategy (25-point maximum): When assessing an 
applicant's capitalization strategy, reviewers will consider, among 
other things: The key personnel of the applicant (or Controlling 
Entity) and their track record of raising capital, particularly from 
for-profit investors; the extent to which the applicant has secured 
investments, commitments to invest in NMTC, or indications of investor 
interest commensurate with its requested amount of tax credit 
allocations; the applicant's strategy for identifying additional 
investors, if necessary, including the applicant's (or its Controlling 
Entity's) prior performance with raising equity from investors, 
particularly for-profit investors; the distribution of the economic 
benefits of the tax credit; the extent to which the applicant intends 
to invest the proceeds from the aggregate amount of its QEIs at a level 
that exceeds the requirements of IRC Sec.  45D(b)(1)(B) and the IRS 
regulations; the likelihood the applicant will raise sufficient capital 
to finance its cost of operations while charging reasonable fees; and 
the applicant's timeline for utilizing an NMTC Allocation.
    An applicant will generally score well under this section to the 
extent that: (a) It has secured investor commitments, or has a 
reasonable strategy for obtaining such commitments; (b) its request for 
allocations is commensurate with both the level of QEIs it is likely to 
raise and its expected investment strategy to deploy funds raised with 
NMTCs; (c) it generally demonstrates that the economic benefits of the 
tax credit will be passed through to end users; (d) it is likely to 
secure capital to finance its cost of operations and charge fees 
appropriate to the operational needs of the applicant; and (e) it 
intends to invest the proceeds from the aggregate amount of its QEIs at 
a level that exceeds the requirements of IRC Sec.  45D(b)(1)(B) and the 
IRS regulations. In the case of an applicant proposing to raise 
investor funds from organizations that also will identify or originate 
transactions for the applicant or from affiliated entities, said 
applicant will score well to the extent that it will offer products 
with more favorable rates or terms than those currently offered by its 
investor(s) or Affiliated entities and/or will target its

[[Page 18023]]

activities to areas of greater economic distress than those currently 
targeted by the investor or Affiliated entities.
    B. Review and selection process: All allocation applications will 
be reviewed for eligibility and completeness. The CDFI Fund may consult 
with the IRS on the eligibility requirements under IRC Sec.  45D. To be 
complete, the application must contain, at a minimum, all information 
described as required in the application form. An incomplete 
application will be rejected. Once the application has been determined 
to be eligible and complete, the CDFI Fund will conduct the substantive 
review of each application in two parts (Phase 1 and Phase 2) in 
accordance with the criteria and procedures generally described in this 
NOAA and the allocation application.
    1. Phase 1: Reviewers will evaluate and score each application in 
the first part of the review process. An applicant must exceed a 
minimum overall aggregate base score threshold and exceed a minimum 
aggregate section score threshold in each of the four application 
sections (Business Strategy, Community Impact, Management Capacity, and 
Capitalization Strategy) in order to advance from the first part of the 
substantive review process. If, in the case of a particular 
application, a reviewer's total base score or section score(s) (in one 
or more of the four application sections) varies significantly from 
other reviewers' total base scores or section scores for such 
application, the CDFI Fund may, in its sole discretion, obtain the 
comments and recommendations of an additional reviewer to determine 
whether the anomalous score should be replaced with the score of the 
additional reviewer.
    2. Phase 2: Once the CDFI Fund has determined which applicants have 
met the required minimum overall aggregate base score and aggregate 
section score thresholds, the CDFI Fund will rank applicants on the 
basis of their combined scores in the Business Strategy and Community 
Impact sections of the application and will make adjustments to each 
applicant's priority points so that these points maintain the same 
relative weight in the ranking of applicant scores in Phase 2 as in 
Phase 1. The CDFI Fund will award allocations in the order of this 
``Final Rank Score,'' subject to applicants' meeting all other 
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. Most notably, in the cases of applicants (or 
their Affiliates) that are prior year allocatees, the CDFI Fund will 
review the activities of the prior year allocatee to determine whether 
the entity has: (a) effectively utilized its prior-year allocations; 
and (b) substantiated a need for additional allocation authority.
    3. Outstanding Reports: In the case of an applicant, or Affiliates, 
that has previously received an award or allocation from the CDFI Fund 
through any CDFI Fund program, the CDFI Fund will deduct points for the 
applicant's (or its Affiliate's) failure to meet the reporting 
deadlines set forth in any assistance, award or Allocation Agreement(s) 
with the CDFI Fund during the entity's two complete fiscal years prior 
to the application deadline of this NOAA (generally FY 2008 and 2009).
    C. Allocations serving Non-Metropolitan counties: As provided for 
under Section 102(b) of the Tax Relief and Health Care Act of 2006 
(Pub. L. 109-432), the CDFI Fund shall ensure that non-metropolitan 
counties receive a proportional allocation of Qualified Equity 
Investments (QEIs) under the NMTC Program. To this end, the CDFI Fund 
will ensure that the proportion of allocatees that are Rural CDEs is, 
at a minimum, equal to the proportion of applicants in the Phase 2 
review pool that are Rural CDEs; and ensure that at least 20 percent of 
the QLICIs to be made using QEI proceeds are invested in Non-
Metropolitan counties. A Rural CDE is one that has over the past five 
years dedicated at least 50 percent of its activities to Non-
Metropolitan counties and has committed that at least 50 percent of its 
NMTC activities will be conducted in such areas. Non-Metropolitan 
counties are counties not contained within a Metropolitan Statistical 
Area, as such term is defined in OMB Bulletin No. 99-04 (Revised 
Statistical Definitions of Metropolitan Areas (MAs) and Guidance on 
Uses of MA Definitions) and applied using 2000 census data.
    Applicants that meet the minimum scoring thresholds will be 
advanced to Phase 2 review and will be provided with ``preliminary'' 
awards, in descending order of Final Rank Score, until the $5.0 billion 
in allocation authority is expended. Once these ``preliminary'' award 
amounts are determined, the CDFI Fund will then analyze the allocatee 
pool to determine whether the two Non-Metropolitan proportionality 
objectives have been met.
    The CDFI Fund will first examine the ``preliminary'' awards and 
allocatees to determine whether the percentage of allocatees that are 
Rural CDEs is, at a minimum, equal to the percentage of applicants in 
the Phase 2 review pool that are Rural CDEs. If this objective is not 
achieved, the CDFI Fund will provide awards to additional Rural CDEs 
from the Phase 2 pool, in descending order of their Final Rank Score, 
until the appropriate percentage balance is achieved. In order to 
accommodate the additional allocatees within the $5.0 billion 
allocation limitations, a formula reduction will be applied uniformly 
to the allocation amount for all allocatees in the pool.
    The CDFI Fund will then ensure that the pool of allocatees will, in 
the aggregate, invest at least 20 percent of their QLICIs (as measured 
by dollar amount) in Non-Metropolitan counties. The CDFI Fund will 
first apply the ``minimum'' percentage of QLICIs that allocatees 
indicated in their applications would be targeted to Non-Metropolitan 
areas to the total allocation award amount of each allocatee (less 
whatever percentage the allocatee indicated would be retained for non-
QLICI activities), and total these figures for all allocatees. If this 
aggregate total is greater than or equal to 20 percent of the QLICIs to 
be made by the allocatees, then the pool is considered balanced and the 
CDFI Fund will proceed with the allocation process. However, if the 
aggregate total is less than 20 percent of the QLICIs to be made by the 
allocatees, the CDFI Fund will consider requiring any or all of the 
Allocatees to direct up to the ``maximum'' percentage of QLICIs that 
they indicated would be targeted to Non-Metropolitan counties; taking 
into consideration their track record and ability to deploy dollars in 
Non-Metropolitan counties. If the CDFI Fund cannot meet the benchmark 
of 20% of QLICIs in Non-Metropolitan counties, the CDFI Fund may add 
additional Rural CDEs (in descending order of final rank score) to the 
awardee pool. In order to accommodate the additional allocatees within 
the $5.0 billion allocation limitations, a formula reduction will be 
applied uniformly to the allocation amount for all allocatees in the 
pool.
    D. Questions: All outstanding reports or compliance questions 
should be directed to the Certifications and Compliance Manager by e-
mail at cme@cdfi.treas.gov; by telephone at (202) 622-8453; by 
facsimile at (202) 622-2445; or by mail to CDFI Fund, 601 13th Street, 
NW., Suite 200 South, Washington, DC 20005. The CDFI 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

[[Page 18024]]

publication of this NOAA through May 31, 2010. The CDFI Fund will not 
respond to reporting or compliance phone calls or e-mail inquiries that 
are received after 5 p.m. ET on May 31, 2010 until after the funding 
application deadline of June 2, 2010.
    E. Right of rejection: The CDFI Fund reserves the right to reject 
any NMTC allocation application in the case of a prior CDFI Fund 
awardee, if such applicant has failed to comply with the terms, 
conditions, and other requirements of the prior or existing assistance 
or award agreement(s) with the CDFI Fund. The CDFI Fund reserves the 
right to reject any NMTC allocation application in the case of a prior 
CDFI Fund Allocatee, if such applicant has failed to comply with the 
terms, conditions, and other requirements of its prior or existing 
Allocation Agreement(s) with the CDFI Fund. The CDFI Fund reserves the 
right to reject any NMTC allocation application in the case of any 
applicant, if an Affiliate of the applicant has failed to meet the 
terms, conditions and other requirements of any prior or existing 
assistance agreement, award agreement or Allocation Agreement with the 
CDFI Fund.
    The CDFI Fund reserves the right to reject any NMTC allocation 
application in the case of a prior CDFI Fund Allocatee, if such 
applicant has failed to use its prior NMTC allocation(s) in a manner 
that is generally consistent with the business strategy (including, but 
not limited to, the proposed product offerings and markets served) set 
forth in the allocation application(s) related to such prior 
allocation(s). The CDFI Fund also reserves the right to reject any NMTC 
allocation application in the case of an Affiliate of the applicant 
that is a prior CDFI Fund Allocatee and has failed to use its prior 
NMTC allocation(s) in a manner that is generally consistent with the 
business strategy set forth in the allocation application(s) related to 
such prior allocation(s).
    The CDFI Fund reserves the right to reject a NMTC allocation 
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.
    As a part of the substantive review process, the CDFI Fund may 
permit reviewer(s) to make telephone calls to applicants for the sole 
purpose of obtaining, clarifying or confirming application information. 
In no event shall such contact be construed to permit an applicant to 
change any element of its application. Reviewers will not contact 
applicants without the prior approval of the CDFI Fund. At this point 
in the process, an applicant may be required to submit additional 
information about its application in order to assist the CDFI Fund with 
its final evaluation process. Such requests must be responded to within 
the time parameters set by the CDFI Fund. The selecting official(s) 
will make a final allocation determination based on an applicant's 
file, including, without limitation, eligibility under IRCSec.  45D, 
the reviewers' scores and the amount of allocation authority available. 
In the case of applicants (or Affiliates of applicants) that are 
regulated by the Federal government or a State agency (or comparable 
entity), the CDFI Fund's selecting official(s) reserve(s) the right to 
consult with and take into consideration the views of the appropriate 
Federal or State banking and other regulatory agencies. In the case of 
applicants (or Affiliates of applicants) that are also Small Business 
Investment Companies, Specialized Small Business Investment Companies 
or New Markets Venture Capital Companies, the CDFI Fund reserves the 
right to consult with and take into consideration the views of the 
Small Business Administration.
    The CDFI Fund reserves the right to conduct additional due 
diligence, as determined reasonable and appropriate by the CDFI Fund, 
in its sole discretion, related to the applicant and its officers, 
directors, owners, partners and key employees.
    Each applicant will be informed of the CDFI Fund's award decision 
through an electronic notification whether selected for an allocation 
(see Section VI.A. of this NOAA) or not selected for an allocation, 
which may be for reasons of application incompleteness, ineligibility 
or substantive issues. All applicants that are not selected for an 
allocation based on substantive issues will likely be given the 
opportunity to obtain feedback on their applications. This feedback 
will be provided in a format and within a timeframe to be determined by 
the CDFI Fund, based on available resources.
    The CDFI Fund further 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 allocation decisions. 
The CDFI Fund's allocation decisions are final.

VI. Award Administration Information

    1. Failure to meet reporting requirements: If an Allocatee, or an 
Affiliate of an Allocatee, is a prior CDFI Fund awardee or Allocatee 
under any CDFI Fund program and is not current on the reporting 
requirements set forth in the previously executed assistance, 
allocation or award agreement(s), as of the date of the award 
notification or thereafter, the CDFI Fund reserves the right, in its 
sole discretion, to delay entering into an Allocation Agreement and/or 
to impose limitations on an Allocatee's ability to issue QEIs to 
investors 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 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 allocation made under this 
NOAA.
    2. Pending resolution of noncompliance: If an Allocatee 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 Allocation Agreement and/or 
to impose limitations on the Allocatee's ability to issue Qualified 
Equity Investments to investors, pending full resolution, in the sole 
determination of the CDFI Fund, of the noncompliance. Further, if an 
Affiliate of an Allocatee 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

[[Page 18025]]

Agreement, the CDFI Fund reserves the right, in its sole discretion, to 
delay entering into an A