Modification of CDFI Certification Requirements, 19195-19196 [granule299]
Download as PDF
19195
Rules and Regulations
Federal Register
Vol. 80, No. 69
Friday, April 10, 2015
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF THE TREASURY
Community Development Financial
Institutions Fund
12 CFR Part 1805
Modification of CDFI Certification
Requirements
Community Development
Financial Institutions Fund (CDFI
Fund), Department of the Treasury.
ACTION: Interim rule.
AGENCY:
The Community Development
Financial Institutions Fund (CDFI Fund)
is amending the CDFI certification
regulation with respect to the financing
entity requirement and participation as
an Eligible CDFI in the CDFI Bond
Guarantee Program. This regulatory
change creates a means for the CDFI
Fund, in its discretion, to permit a
CDFI’s Affiliate, which applies for CDFI
certification, to rely on the Controlling
CDFI’s activity or track record in order
to meet the financing entity
requirement, solely for the purpose of
the Affiliate participating as an Eligible
CDFI under the CDFI Bond Guarantee
Program.
DATES: Effective on April 10, 2015.
Comment due date: June 9, 2015.
ADDRESSES: All comments concerning
this revised interim rule should be
addressed to the Certification,
Compliance Monitoring and Evaluation
Manager, Community Development
Financial Institutions Fund, Department
of the Treasury, 1500 Pennsylvania
Avenue NW., Washington, DC 20220; by
email to; by email to cdfihelp@
cdfi.treas.gov; or by facsimile at (202)
453–2466.
Electronic Submission of Comments:
Interested persons are encouraged to
submit comments electronically through
the Federal eRulemaking Portal at
http://www.regulations.gov. Electronic
submission of comments allows the
rljohnson on DSK3VPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
15:04 Apr 09, 2015
Jkt 235001
commenter maximum time to prepare
and submit a comment, ensures timely
receipt, and enables the Department to
make them available to the public.
Comments submitted electronically
through the http://www.regulations.gov
Web site can be viewed by other
commenters and interested members of
the public. Commenters should follow
the instructions provided on that site to
submit comments electronically.
All properly submitted comments will
be available for inspection and
downloading at http://
www.regulations.gov. In general,
comments received, including
attachments and other supporting
materials, are part of the public record
and are available to the public. Do not
submit any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT:
David Meyer, Acting Manager,
Certification, Compliance Monitoring
and Evaluation, by mail to the CDFI
Fund, Department of the Treasury, 1500
Pennsylvania Avenue NW., Washington,
DC 20220; by email to cdfihelp@
cdfi.treas.gov; or by facsimile at (202)
453–2466 (This is not a toll free
number).
SUPPLEMENTARY INFORMATION: The CDFI
Fund, Department of the Treasury, was
established by the Community
Development Banking and Financial
Institutions Act of 1994, as amended (12
U.S.C. 4701 et seq.). The mission of the
Community Development Financial
Institutions Fund (CDFI Fund) is to
increase economic opportunity and
promote community development
investments for underserved
populations in distressed communities
in the United States. Its long-term vision
is to economically empower America’s
underserved and distressed
communities. The CDFI Fund’s
programs are designed to facilitate the
flow of lending and investment capital
to distressed communities and to
individuals who have been unable to
take full advantage of the financial
services industry. Access to credit,
investment capital, and financial
services are essential ingredients for
creating and retaining jobs, developing
affordable housing, revitalizing
neighborhoods, unleashing the
economic potential of small businesses,
and empowering people.
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
An important component of the CDFI
Fund’s authority is the certification of
entities as Community Development
Financial Institutions (CDFIs), which
permits such entities to have access to
financial assistance through the
Community Development Financial
Institutions Program (CDFI Program)
and other CDFI Fund programs,
including the CDFI Bond Guarantee
Program.
Through the CDFI Bond Guarantee
Program, the Secretary of the Treasury
provides a Guarantee for Bond(s) issued
by a Qualified Issuer as part of a Bond
Issue. In turn, the Qualified Issuer uses
Bond Proceeds to make Bond Loans to
Eligible CDFIs for Eligible Purposes, as
those terms are defined in 12 CFR
1808.102. Under the CDFI Bond
Guarantee Program, for a CDFI to be an
Eligible CDFI, the CDFI must be
certified by the CDFI Fund as meeting
certification requirements (see 12 CFR
1808.202(a)).
In order for an entity to be certified
as a CDFI, it must meet six criteria that
are set forth in the regulation that
governs CDFI certification: (i) Primary
mission (12 CFR 1805.201(b)(1)); (ii)
financing entity (12 CFR
1805.201(b)(2)); (iii) Target Market (12
CFR 1805.201(b)(3)); (iv) Development
Services (12 CFR 1805.201(b)(4)); (v)
accountability (12 CFR 1805.201(b)(5));
and (vi) non-government entity (12 CFR
1805.201(b)(6)).
The CDFI Fund is amending the CDFI
certification regulation only with
respect to the financing entity
requirement and participation as an
Eligible CDFI in the CDFI Bond
Guarantee Program. This regulatory
change creates a means for the CDFI
Fund, in its discretion, to permit a
CDFI’s Affiliate (as defined in 12 CFR
1805.104(b)), which applies for CDFI
certification, to rely on the Controlling
CDFI’s activity or track record in order
to meet the financing entity
requirement, solely for the purpose of
the Affiliate participating as an Eligible
CDFI under the CDFI Bond Guarantee
Program.
In other words, this revised regulation
states that, for purposes of participating
in the CDFI Bond Guarantee Program,
the Eligible CDFI, if it is an Affiliate of
a CDFI, need not meet the financing
entity requirement based on its own
merit or activity but may instead rely on
the financing entity track record of the
E:\FR\FM\10APR1.SGM
10APR1
19196
Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Rules and Regulations
affiliated CDFI. This regulatory revision
affects only the Affiliate’s ability to meet
the financing entity requirement for
CDFI certification: said entity must meet
the other five certification criteria in
accordance with the existing regulation.
Further, in this revised regulation, the
CDFI Fund reserves the authority, in its
discretion, to set additional parameters
and restrictions on the financing entity
requirement, which will be set forth in
the Notice of Guarantee Availability
(NOGA) for a particular application
round of the CDFI Bond Guarantee
Program. Such additional parameters or
restrictions may include, for example,
(i) a deadline by which the Affiliate
must meet the financing entity
requirement based on its own merit or
activity, rather than relying on that of
the affiliated CDFI, and (ii) a
requirement that the affiliated CDFI
must maintain its CDFI certification
until such time that the Affiliate is able
to meet all CDFI certification
requirements based on its own merit or
activity.
Regulatory Analysis and Notices
Executive Order 12866
It has been determined that this rule
is not a significant regulatory action as
defined in Executive Order 12866.
Therefore, a regulatory assessment is not
required.
Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required under the
Administrative Procedure Act (5 U.S.C.
553) or any other law, the Regulatory
Flexibility Act does not apply.
rljohnson on DSK3VPTVN1PROD with RULES
Paperwork Reduction Act
The collections of information
contained in this interim rule have been
previously reviewed and approved by
the Office of Management and Budget
(OMB) in accordance with the
Paperwork Reduction Act of 1995 and
assigned OMB Control Numbers 1559–
0006, 1559–0021, and 1559–0022. An
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a valid control number
assigned by OMB. This document
restates the collections of information
without substantive change.
National Environmental Policy Act
This revised interim rule has been
reviewed in accordance with 12 CFR
part 1815. The CDFI Fund’s
Environmental Regulations under the
National Environmental Protection Act
of 1969 (NEPA) require that the CDFI
Fund adequately consider the
cumulative impact proposed activities
VerDate Sep<11>2014
15:04 Apr 09, 2015
Jkt 235001
have upon the human environment. It is
the determination of the CDFI Fund that
the interim rule does not constitute a
major federal action significantly
affecting the quality of the human
environment and, in accordance with
the NEPA and the CDFI Fund
Environmental Quality Regulations, 12
CFR part 1815, neither an
Environmental Assessment nor an
Environmental Impact Statement is
required.
Administrative Procedure Act
Because this interim rule relates to
loans and grants, notice and public
procedure and a delayed effective date
are not required pursuant to the
Administrative Procedure Act, 5 U.S.C.
553(a)(2).
Catalogue of Federal Domestic
Assistance Number
Community Development Financial
Institutions Program—21.020.
List of Subjects in 12 CFR Part 1805
Community development, Grant
programs-housing and community
development, Loan programs-housing
and community development, Reporting
and recordkeeping requirements, Small
businesses.
Amendment to the Regulations
For the reasons discussed in the
preamble, the CDFI Fund is amending
12 CFR chapter XVII, part 1805 as
follows:
PART 1805—COMMUNITY
DEVELOPMENT FINANCIAL
INSTITUTIONS PROGRAM
business activity as a result of analysis
of its financial statements, organizing
documents, and any other information
required to be submitted as part of its
application. In conducting such
analysis, the CDFI Fund may take into
consideration an Applicant’s total assets
and its use of personnel.
(ii) For the sole purpose of
participating as an Eligible CDFI in the
CDFI Bond Guarantee Program (see 12
CFR part 1808), an Affiliate of a
Controlling CDFI may be deemed to
meet the financing entity requirement of
this subsection by relying on the CDFI
Fund’s determination that the
Controlling CDFI has met said
requirement; provided, however, that
the CDFI Fund reserves the right, in its
sole discretion, to set additional
parameters and restrictions on such,
which parameters and restrictions shall
be set forth in the applicable Notice of
Guarantee Availability for a CDFI Bond
Guarantee Program application round.
(iii) Further, for the sole purpose of
participating as an Eligible CDFI in the
CDFI Bond Guarantee Program, the
provision of Financial Products,
Development Services, and/or other
similar financing by an Affiliate of a
Controlling CDFI need not be armslength if such transaction is by and
between the Affiliate and the
Controlling CDFI, pursuant to an
operating agreement that includes
management and ownership provisions
and is in form and substance that is
acceptable to the CDFI Fund.
*
*
*
*
*
■
Dated: April 7, 2015.
Mary Ann Donovan,
Director, Community Development Financial
Institutions Fund.
Authority: 12 U.S.C. 4703, 4703 note, 4710,
4717; and 31 U.S.C. 321.
[FR Doc. 2015–08356 Filed 4–9–15; 8:45 am]
1. The authority citation for part 1805
continues to read as follows:
BILLING CODE 4810–70–P
2. Section 1805.201(b)(2) is revised to
read as follows:
■
§ 1805.201 Certification as a Community
Development Financial Institution.
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
*
14 CFR Part 1245
*
*
*
*
(b) * * *
(2) Financing entity. (i) A CDFI shall
be an entity whose predominant
business activity is the provision, in
arms-length transactions, of Financial
Products, Development Services, and/or
other similar financing. An Applicant
may demonstrate that it is such an
entity if it is a(n):
(A) Depository Institution Holding
Company;
(B) Insured Depository Institution,
Insured Credit Union, or State-Insured
Credit Union; or
(C) Organization that is deemed by the
CDFI Fund to have such a predominant
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
[Docket No: NASA–2015–0001]
RIN 2700–AE02
Patents and Other Intellectual Property
Rights
National Aeronautics and
Space Administration (NASA).
ACTION: Direct final rule.
AGENCY:
NASA has adopted as final,
without change, a proposed rule
amending its patent waivers regulations
to update citations and the patent
waiver policy, and to clarify and update
SUMMARY:
E:\FR\FM\10APR1.SGM
10APR1
Agencies
[Federal Register Volume 80, Number 69 (Friday, April 10, 2015)]
[Unknown Section]
[Pages 19195-19196]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: granule299]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register&thnsp;/&thnsp;Vol. 80, No. 69&thnsp;/&thnsp;Friday,
April 10, 2015&thnsp;/&thnsp;Rules and Regulations
[[Page 19195]]
DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
12 CFR Part 1805
Modification of CDFI Certification Requirements
AGENCY: Community Development Financial Institutions Fund (CDFI Fund),
Department of the Treasury.
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: The Community Development Financial Institutions Fund (CDFI
Fund) is amending the CDFI certification regulation with respect to the
financing entity requirement and participation as an Eligible CDFI in
the CDFI Bond Guarantee Program. This regulatory change creates a means
for the CDFI Fund, in its discretion, to permit a CDFI's Affiliate,
which applies for CDFI certification, to rely on the Controlling CDFI's
activity or track record in order to meet the financing entity
requirement, solely for the purpose of the Affiliate participating as
an Eligible CDFI under the CDFI Bond Guarantee Program.
DATES: Effective on April 10, 2015. Comment due date: June 9, 2015.
ADDRESSES: All comments concerning this revised interim rule should be
addressed to the Certification, Compliance Monitoring and Evaluation
Manager, Community Development Financial Institutions Fund, Department
of the Treasury, 1500 Pennsylvania Avenue NW., Washington, DC 20220; by
email to; by email to cdfihelp@cdfi.treas.gov; or by facsimile
at (202) 453–2466.
Electronic Submission of Comments: Interested persons are
encouraged to submit comments electronically through the Federal
eRulemaking Portal at http://www.regulations.gov. Electronic submission
of comments allows the commenter maximum time to prepare and submit a
comment, ensures timely receipt, and enables the Department to make
them available to the public. Comments submitted electronically through
the http://www.regulations.gov Web site can be viewed by other
commenters and interested members of the public. Commenters should
follow the instructions provided on that site to submit comments
electronically.
All properly submitted comments will be available for inspection
and downloading at http://www.regulations.gov. In general, comments
received, including attachments and other supporting materials, are
part of the public record and are available to the public. Do not
submit any information in your comment or supporting materials that you
consider confidential or inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT: David Meyer, Acting Manager,
Certification, Compliance Monitoring and Evaluation, by mail to the
CDFI Fund, Department of the Treasury, 1500 Pennsylvania Avenue NW.,
Washington, DC 20220; by email to cdfihelp@cdfi.treas.gov; or by
facsimile at (202) 453–2466 (This is not a toll free number).
SUPPLEMENTARY INFORMATION: The CDFI Fund, Department of the Treasury,
was established by the Community Development Banking and Financial
Institutions Act of 1994, as amended (12 U.S.C. 4701 et seq.). The
mission of the Community Development Financial Institutions Fund (CDFI
Fund) is to increase economic opportunity and promote community
development investments for underserved populations in distressed
communities in the United States. Its long-term vision is to
economically empower America's underserved and distressed communities.
The CDFI Fund's programs are designed to facilitate the flow of lending
and investment capital to distressed communities and to individuals who
have been unable to take full advantage of the financial services
industry. Access to credit, investment capital, and financial services
are essential ingredients for creating and retaining jobs, developing
affordable housing, revitalizing neighborhoods, unleashing the economic
potential of small businesses, and empowering people.
An important component of the CDFI Fund's authority is the
certification of entities as Community Development Financial
Institutions (CDFIs), which permits such entities to have access to
financial assistance through the Community Development Financial
Institutions Program (CDFI Program) and other CDFI Fund programs,
including the CDFI Bond Guarantee Program.
Through the CDFI Bond Guarantee Program, the Secretary of the
Treasury provides a Guarantee for Bond(s) issued by a Qualified Issuer
as part of a Bond Issue. In turn, the Qualified Issuer uses Bond
Proceeds to make Bond Loans to Eligible CDFIs for Eligible Purposes, as
those terms are defined in 12 CFR 1808.102. Under the CDFI Bond
Guarantee Program, for a CDFI to be an Eligible CDFI, the CDFI must be
certified by the CDFI Fund as meeting certification requirements (see
12 CFR 1808.202(a)).
In order for an entity to be certified as a CDFI, it must meet six
criteria that are set forth in the regulation that governs CDFI
certification: (i) Primary mission (12 CFR 1805.201(b)(1)); (ii)
financing entity (12 CFR 1805.201(b)(2)); (iii) Target Market (12 CFR
1805.201(b)(3)); (iv) Development Services (12 CFR 1805.201(b)(4)); (v)
accountability (12 CFR 1805.201(b)(5)); and (vi) non-government entity
(12 CFR 1805.201(b)(6)).
The CDFI Fund is amending the CDFI certification regulation only
with respect to the financing entity requirement and participation as
an Eligible CDFI in the CDFI Bond Guarantee Program. This regulatory
change creates a means for the CDFI Fund, in its discretion, to permit
a CDFI's Affiliate (as defined in 12 CFR 1805.104(b)), which applies
for CDFI certification, to rely on the Controlling CDFI's activity or
track record in order to meet the financing entity requirement, solely
for the purpose of the Affiliate participating as an Eligible CDFI
under the CDFI Bond Guarantee Program.
In other words, this revised regulation states that, for purposes
of participating in the CDFI Bond Guarantee Program, the Eligible CDFI,
if it is an Affiliate of a CDFI, need not meet the financing entity
requirement based on its own merit or activity but may instead rely on
the financing entity track record of the
[[Page 19196]]
affiliated CDFI. This regulatory revision affects only the Affiliate's
ability to meet the financing entity requirement for CDFI
certification: said entity must meet the other five certification
criteria in accordance with the existing regulation.
Further, in this revised regulation, the CDFI Fund reserves the
authority, in its discretion, to set additional parameters and
restrictions on the financing entity requirement, which will be set
forth in the Notice of Guarantee Availability (NOGA) for a particular
application round of the CDFI Bond Guarantee Program. Such additional
parameters or restrictions may include, for example, (i) a deadline by
which the Affiliate must meet the financing entity requirement based on
its own merit or activity, rather than relying on that of the
affiliated CDFI, and (ii) a requirement that the affiliated CDFI must
maintain its CDFI certification until such time that the Affiliate is
able to meet all CDFI certification requirements based on its own merit
or activity.
Regulatory Analysis and Notices
Executive Order 12866
It has been determined that this rule is not a significant
regulatory action as defined in Executive Order 12866. Therefore, a
regulatory assessment is not required.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required under the
Administrative Procedure Act (5 U.S.C. 553) or any other law, the
Regulatory Flexibility Act does not apply.
Paperwork Reduction Act
The collections of information contained in this interim rule have
been previously reviewed and approved by the Office of Management and
Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 and
assigned OMB Control Numbers 1559–0006, 1559–0021, and
1559–0022. An agency may not conduct or sponsor, and a person is
not required to respond to, a collection of information unless it
displays a valid control number assigned by OMB. This document restates
the collections of information without substantive change.
National Environmental Policy Act
This revised interim rule has been reviewed in accordance with 12
CFR part 1815. The CDFI Fund's Environmental Regulations under the
National Environmental Protection Act of 1969 (NEPA) require that the
CDFI Fund adequately consider the cumulative impact proposed activities
have upon the human environment. It is the determination of the CDFI
Fund that the interim rule does not constitute a major federal action
significantly affecting the quality of the human environment and, in
accordance with the NEPA and the CDFI Fund Environmental Quality
Regulations, 12 CFR part 1815, neither an Environmental Assessment nor
an Environmental Impact Statement is required.
Administrative Procedure Act
Because this interim rule relates to loans and grants, notice and
public procedure and a delayed effective date are not required pursuant
to the Administrative Procedure Act, 5 U.S.C. 553(a)(2).
Catalogue of Federal Domestic Assistance Number
Community Development Financial Institutions
Program—21.020.
List of Subjects in 12 CFR Part 1805
Community development, Grant programs-housing and community
development, Loan programs-housing and community development, Reporting
and recordkeeping requirements, Small businesses.
Amendment to the Regulations
For the reasons discussed in the preamble, the CDFI Fund is
amending 12 CFR chapter XVII, part 1805 as follows:
PART 1805—COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
PROGRAM
0
1. The authority citation for part 1805 continues to read as follows:
Authority: 12 U.S.C. 4703, 4703 note, 4710, 4717; and 31 U.S.C.
321.
0
2. Section 1805.201(b)(2) is revised to read as follows:
§&thnsp;1805.201 Certification as a Community Development
Financial Institution.
* * * * *
(b) * * *
(2) Financing entity. (i) A CDFI shall be an entity whose
predominant business activity is the provision, in arms-length
transactions, of Financial Products, Development Services, and/or other
similar financing. An Applicant may demonstrate that it is such an
entity if it is a(n):
(A) Depository Institution Holding Company;
(B) Insured Depository Institution, Insured Credit Union, or State-
Insured Credit Union; or
(C) Organization that is deemed by the CDFI Fund to have such a
predominant business activity as a result of analysis of its financial
statements, organizing documents, and any other information required to
be submitted as part of its application. In conducting such analysis,
the CDFI Fund may take into consideration an Applicant's total assets
and its use of personnel.
(ii) For the sole purpose of participating as an Eligible CDFI in
the CDFI Bond Guarantee Program (see 12 CFR part 1808), an Affiliate of
a Controlling CDFI may be deemed to meet the financing entity
requirement of this subsection by relying on the CDFI Fund's
determination that the Controlling CDFI has met said requirement;
provided, however, that the CDFI Fund reserves the right, in its sole
discretion, to set additional parameters and restrictions on such,
which parameters and restrictions shall be set forth in the applicable
Notice of Guarantee Availability for a CDFI Bond Guarantee Program
application round.
(iii) Further, for the sole purpose of participating as an Eligible
CDFI in the CDFI Bond Guarantee Program, the provision of Financial
Products, Development Services, and/or other similar financing by an
Affiliate of a Controlling CDFI need not be arms-length if such
transaction is by and between the Affiliate and the Controlling CDFI,
pursuant to an operating agreement that includes management and
ownership provisions and is in form and substance that is acceptable to
the CDFI Fund.
* * * * *
Dated: April 7, 2015.
Mary Ann Donovan,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2015–08356 Filed 4–9–15; 8:45 am]
BILLING CODE 4810–70–P