Notice for Inviting Applications for the Position of National Fund Manager for the Healthy Food Financing Initiative, 85510-85514 [2016-28475]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Business-Cooperative Service

[Federal Register Volume 81, Number 228 (Monday, November 28, 2016)]
[Notices]
[Pages 85510-85514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28475]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice for Inviting Applications for the Position of National 
Fund Manager for the Healthy Food Financing Initiative

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: This notice invites Community Development Financial 
Institutions to apply for the position of National Fund Manager for the 
Healthy Food Financing Initiative (HFFI), which was authorized under 
Section 4206 of the Agricultural Act of 2014 (2014 Farm Bill).

DATES: Applications are due by 4:00 p.m. Eastern Standard Time on 
December 28, 2016.

ADDRESSES: Submit complete applications to: James Barham, Agricultural 
Economist, Rural Business-Cooperative Service, U.S. Department of 
Agriculture, Stop 3254, 1400 Independence Avenue SW., Washington, DC 
20250-0783; james.barham@wdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

    On February 7, 2014, the Agricultural Act of 2014 (Pub. L. 113-79) 
(2014 Farm Bill) was signed into law. Section 4206 of the 2014 Farm 
Bill established the Healthy Food Financing Initiative (HFFI). The 
purposes of the HFFI are to improve access to healthy foods in 
underserved areas, to create and preserve quality jobs, and to 
revitalize low-income communities by providing loans and grants to 
eligible fresh, healthy food retailers to overcome the higher costs and 
initial barriers to entry in underserved areas.
    A key component to the successful implementation of the HFFI is the 
National Fund Manager (NFM). The primary roles of the NFM, as 
identified in the 2014 Farm Bill, will be to raise private capital, 
provide financial and technical assistance to partnerships, and fund 
eligible projects to support retailers and their supply chains that 
bring fresh, healthy food into underserved areas.
    HFFI was designed as a three-agency initiative. Since the 
Department of Treasury and the Department of Health and Human Services 
already have HFFI activities underway through existing programs, in 
standing up HFFI at USDA, the Agency and the NFM will take great care 
to ensure appropriate cooperation and coordination to achieve the goals 
of HFFI. Until Federal funds are appropriated for this HFFI program, 
the NFM will pay for its own administrative, fundraising, and 
management costs; USDA will not be responsible for such costs. Those 
costs may be covered through private fundraising agreements or other 
third party sources. If and when Federal funds are made available, 
Section 4206 permits them to be used to cover administrative expenses 
of the NFM in an amount not to exceed 10 percent of the Federal funds 
provided.

I. Eligibility Criteria for Being the National Fund Manager

    To be eligible to be the National Fund Manager, the applicant must 
meet each of the following conditions:
     The applicant must be a Community Development Financial 
Institution (CDFI) certified by the U.S. Department of the Treasury 
Department CDFI Fund.
     The applicant must have been in existence on February 7, 
2014, and must still be in existence on the date the CDFI applies for 
the NFM position.

II. Roles and Responsibilities of the National Fund Manager

    The Agency envisions that the NFM will have a variety of roles and 
responsibilities to help ensure the success of the HFFI program. The 
following presents the general roles and responsibilities of the NFM 
currently envisioned by the Agency. The final roles and 
responsibilities will be identified in an appropriate agreement as 
agreed upon between the successful applicant and the Agency. The roles 
and responsibilities may vary depending on whether Federal funds are 
appropriated for the HFFI program.

A. Assistance-Related

     Raise private capital. The NFM will be expected to raise 
private funds to be used toward the HFFI purposes.
     Leverage public funds. The NFM will be expected to 
leverage, and encourage the use of, funds from other federal agencies/
resources, such as Treasury's CDFI Fund, HHS' Office of Community 
Services, SBA loans and grants, and USDA loans and grants.
     Other financial assistance. In addition to the types of 
financial assistance identified in the statute (loans and grants), the 
NFM may

[[Page 85511]]

provide other financial assistance provided such assistance conforms to 
all applicable laws and regulations and best industry practices and are 
approved by the Agency prior to being utilized.
     Technical assistance. The NFM will be expected to provide 
appropriate and necessary technical assistance to partnerships and 
projects seeking HFFI funding and those funded under this initiative.

B. Award-Related

     Establish eligibility criteria for projects and 
partnerships. The NFM will establish criteria for both projects and 
partnerships to determine if they are eligible to receive HFFI funding 
in accordance with section 4206. These criteria will be subject to 
Agency approval.
     Making awards. The NFM will review all project 
applications to ensure that each application is complete and eligible 
to be considered for an award. The NFM will establish an award process 
consistent with the priorities identified in the statute and any other 
priorities that otherwise advance the HFFI purposes, as determined by 
the Agency.

C. Post-Award Related

     Track performance. The NFM will recommend to the Agency 
for approval outcome metrics for tracking the performance of projects 
awarded funding under the HFFI program. The Agency expects the NFM to 
track both financial performance and community impact.
     Data collection and compilation. The NFM will collect and 
compile the USDA-approved outcome metrics from HFFI program 
beneficiaries.
     Reports to USDA. For all projects receiving funding under 
the HFFI program, the NFM will submit to the Agency:
    [cir] Periodic reports on outcome metrics;
    [cir] Percentage of the number of projects funded each Federal 
fiscal year that are located in a rural area; (rural area as used in 
this notice means any area other than (i) a city or town that has a 
population of greater than 50,000 inhabitants; and (ii) any urbanized 
area contiguous and adjacent to a city or town described in clause 
(i)).
    [cir] A copy of its CDFI Fund Annual Certification and Data 
Collection Report Form submitted to the Department of Treasury; and
    [cir] An annual report with a synopsis of each project receiving 
funding under the HFFI program.

D. Outreach

    The NFM will be expected to actively publicize the HFFI program to 
appropriate communities and priority populations. In addition, the NFM 
will be expected to help build the capacity of potential applications, 
partners, and peers. The specific role of the NFM in this area will be 
negotiated between the Agency and the NFM.

III. Application Information

    CDFIs must submit all of the information identified in this section 
of the notice to be considered for the NFM position. When submitting 
your application, be mindful of the scoring criteria identified in 
Section V, Scoring Information, of this notice to ensure your 
application is fully responsive.
    1. Contact information. The full name of the CDFI, its address, at 
least two points-of-contact with both email addresses and telephone 
numbers.
    2. Certification. Certify that on February 7, 2014, the applicant 
was in existence and was certified through the U.S. Department of the 
Treasury's CDFI Fund. Additionally, provide documentation showing that 
you are currently a CDFI (i.e., at time of application) and when your 
current certification expires.
    3. Project experience. Describe your experience with projects 
associated with retail outlets, regional food systems, and locally 
grown foods and with such projects that serve women-owned businesses 
and minority-owned businesses. Identify the source of funds for such 
projects. Include the type of project, its purpose(s), size, location 
(including whether rural or urban), populations served (including 
women- and minority-owned businesses), and source of funds. Be sure to 
identify the types of assistance you provided for these projects, 
especially for projects relevant to the HFFI program (e.g., retail 
outlets, regional food systems, locally grown foods).
     For revolving loan funds and other products that provide 
loans, describe the CDFI's relationship to and role in each revolving 
loan fund (e.g., raised capital, administered, served as a consultant). 
If you have used other financial products to provide loans, describe 
each, how they were used, how successful they were, and the 
communities/populations/businesses served.
     For grants to fund projects, identify the size of the 
grant and any terms and conditions associated with the use of the grant 
funds.
     For technical assistance, describe the types of technical 
assistance and to whom the technical assistance was provided. In 
addition, describe the types of Technical Assistance that you would 
provide, if selected as the NFM, to benefit underserved areas with low- 
and moderate-income populations; rural communities; women- and 
minority-owned businesses; and local or regional food systems.
    4. Outreach and collaboration. Describe outreach activities that 
the CDFI has led or participated in for underserved areas with low- and 
moderate-income populations and their location (rural, urban). Identify 
your role and the content of the outreach activity. Provide an 
assessment of why they were successful or not. If not successful, 
describe what can be done to improve their effectiveness.
    Describe the CDFI's history of collaboration with the U.S. 
Department of Agriculture and other governmental (e.g., other federal, 
regional, state, local) agencies, other CDFIs, national organizations 
in the healthy food arena, and other similar stakeholders. Identify the 
partners, including contact information, the types of projects you 
collaborated on, and the roles you and the partners each played. If not 
included under Project Experience, identify the types of projects that 
you have collaborated on, including their size, purpose, location, and 
populations served.
    If selected as the NFM, describe your plans to reach out to 
underserved areas with low- and moderate-income populations, rural 
communities, women- and minority-owned businesses, and businesses that 
support local or regional food systems. Include examples where you have 
implemented any of these approaches and provide an assessment of why 
they were or were not successful. If not successful, describe what can 
be done to improve their effectiveness.
    As the NFM, describe the roles that both national organizations and 
local healthy food stakeholders would play in supporting the HFFI 
program. Describe your approach to collaborating with these 
stakeholders to facilitate HFFI investments.
    5. Financing/Capital. Describe the CDFI's financial condition and 
provide your current audited financial statement. Describe your 
experience in raising capital and administering pools of capital in a 
cost-efficient manner, including specific examples and their size.
    If you are selected as the NFM, describe the strategy you will use 
to raise private capital in support of this HFFI program and your 
strategy for making successful HFFI investments. Be

[[Page 85512]]

sure to address HHFI investment in rural areas and the priority areas 
(e.g., regional food systems, local foods, quality jobs) identified in 
the statute.
    6. Project management capacity. Describe your management team, 
including length and type of financial experience, government 
experience, and experience relevant to healthy foods, especially in 
connection with public-private partnerships, underserved areas with 
low- and moderate-income populations, rural communities, and women- and 
minority-owned businesses and in connection with food supply chains. 
Provide resumes of key managers.
    Describe your contracting (including subcontracting) experience 
relevant to the types of assistance to be provided through the HFFI 
program. This might include such activities as contracting for support 
of servicing loan or grant awards or for the provision of specific 
types of technical assistance. For each contracting effort described, 
identify the purpose/scope of the contract, its size and duration, and 
the party or parties with whom you contracted. Please provide any 
additional contracting-related information you believe is relevant to 
the role of the NFM.
    Discuss the keys to being a successful NFM and for the HFFI program 
to succeed. Describe barriers to making HFFI successful and how, if you 
are selected, you will overcome them. Additionally, describe any 
innovative techniques that you have used successfully and how, if you 
are selected, you will use them to improve implementation of the HFFI 
program.
    7. Rural experience. Describe the CDFI's experience specific to 
rural communities, populations, and programs. Include the types of 
projects, their size, and specific locations; collaboration with rural 
partners; and outreach efforts directed toward rural communities.
    Discuss the strategies you would use, if you are selected as the 
NFM, to ensure the successful implementation of the HFFI program in 
rural areas.
    8. Rural project awards. If you are selected as the NFM, based on 
the total number of projects funded under this program, identify the 
minimum percentage of rural projects that you will fund in the first 
Federal fiscal year, the second Federal fiscal year, and third (and 
thereafter) Federal fiscal year. Provide an explanation for how you 
arrived these three percentages.
    9. Program evaluation. Describe the CDFI's experience in 
identifying/establishing and employing program performance targets and 
metrics, including the gathering of information and data from 
recipients of funding. Indicate if you have reported such information 
to third-parties and, if so, to whom, what information was provided, 
and how frequently the information was reported.
    Discuss metrics you would use, if selected as NFM, to evaluate 
whether and to what extent the projects funded have met the objectives 
of the HFFI program.
    10. Local and regional food. Describe the CDFI's involvement in a 
project that supported local and regional food systems. Discuss any 
unique financing or logistical challenges. In particular, describe how 
that project enhanced low-income consumers' access to staple foods, 
created quality jobs and otherwise supported community economic 
development.
    Describe the greatest financial and logistical challenges facing 
local and regional food systems and how, if you are selected as the 
NFM, you would address those challenges to successfully incorporate 
projects that support local and regional food systems into the HFFI 
program.

IV. NFM Application Submittal Requirements

    All responses must be in English. Applications must not exceed 30 
pages, excluding resumes and current audited financial statements. 
Applications must use 12-point font of any type, and may be either 
single- or double-spaced. Application material must be printable by 
electronic media on one side of the paper. Do not include formatting 
that requires large megabyte support.
    Responses to either the mailing address or the email address 
identified under the ADDRESSES section of this notice no later than the 
date and time provided in the DATES section of this Notice. If 
responding via email, your response must be sent as a pdf file 
attachment to the email.

V. NFM Scoring Information

    The following describes how the Agency will score complete, 
eligible applications for the NFM position. In general, providing 
specific examples under all of the criteria will help boost an 
applicant's score.

A. Project Experience (Maximum 20 Points)

    The more experience the NFM has with similar projects and the types 
of assistance for implementing the HFFI program, the better the NFM 
will be able to implement and manage the program. Therefore, an 
applicant's score under this criterion will be commensurate with the 
applicant's experience in and understanding of:
     Type of projects. The Agency will consider the applicant's 
experience with projects identified in the statute authorizing the HFFI 
program. Other experience associated with relevant HFFI-related 
projects/fresh, healthy food retail business enterprises, including 
regional food systems and locally grown foods, will help boost an 
applicant's score.
     Size of each project. CDFIs with experience in only (or 
mainly) large projects may not be well suited to support small projects 
and vice-versa. Experience with a variety of project sizes helps show 
desirable capabilities. Therefore, the Agency will consider an 
applicant's experience with various size projects. Experience with a 
wide variety of project sizes will help boost an applicant's score.
     Entities served. The Agency will consider the level of 
experience the applicant has in providing assistance to underserved 
areas with low- and moderate-income populations; women-owned 
businesses; and minority-owned businesses. More experience in providing 
assistance to such entities will help boost an applicant's score.
     Type of assistance. Successfully provided the type of 
assistance indicated in the statute, including making and servicing 
grants, loans, loan loss reserves, tax credits and/or other financing 
tools envisioned under the HFFI program. Demonstration of the types of 
Technical Assistance that will most benefit underserved areas with low- 
and moderate-income populations; rural communities; women- and 
minority-owned businesses; and local or regional food systems.
    Experience across all types of assistance envisioned under the HFFI 
program and experience that is more evenly spread across the types 
(rather than being concentrated in one type of assistance) will help 
boost an applicant's score.

B. Outreach and Collaboration (Maximum 20 Points)

    If people do not know about the HFFI program, few will apply and 
the HFFI program will not be successful. Therefore, it is critical that 
there is a good roll-out of the HFFI program. Further, successful 
collaboration with such entities as national food access organizations 
will be valuable to the success of the HFFI program. A CDFI with good, 
established relations is more likely to be able to leverage that 
experience for better program implementation.

[[Page 85513]]

    Outreach and collaboration will be primary responsibilities of the 
NFM (although the Agency will assist and the Agency expects that 
national food access organizations will also provide valuable 
assistance).
    In evaluating applicants for the NFM position, the Agency will 
score applications commensurate with the applicant's:
     Approaches to reaching out to underserved areas with low- 
and moderate-income populations, rural communities, tribal communities, 
women- and minority-owned businesses, and local or regional food 
systems that will be served by the HFFI program and the effectiveness 
of such approaches;
     Successful collaboration with CDFIs, national food access 
organizations, and other stakeholders to market such programs;
     Proven track record in working with federal agencies, 
including the U.S. Department of Agriculture; and
     Vision of the role that national organizations and other 
healthy food stakeholders should play in support of the HFFI program, 
its approach to accessing these stakeholders, and how the NFM will work 
with them in order to facilitate HFFI investments.

C. Financing/Capital (Maximum 20 Points)

    The ability of the NFM to raise private capital will be critical to 
funding HFFI projects. In addition, the Agency anticipates that the 
HFFI program will be a large program, and the experience of the NFM in 
successfully managing and administering large amounts of capital in a 
cost-efficient manner will be important.
    An applicant's score under this criterion will be commensurate with 
the applicant's:
     Experience in raising significant amount of private 
capital;
     Experience in successfully managing large pools of capital 
in a cost-efficient manner, including management fees; and
     Approach for raising private capital for this HFFI effort 
and for making successful HFFI investments, especially in rural areas.

D. Project Management Capacity (Maximum 15 Points)

    An applicant's score under this criterion will be commensurate with 
qualifications of the applicant's management team (including experience 
related to financial management, healthy foods, experience with the 
U.S. Department of Agriculture and other federal agencies and offices), 
demonstration of the CDFI's financial stability, how long the CDFI has 
been in existence, and the CDFI's strategy for being a successful 
National Fund Manager. In addition to the material supplied by the 
applicant, the Agency may use current Department of the Treasury data 
on the CDFI to assess the applicants' financial stability. By applying 
for this position, the applicant is consenting to the Department of the 
Treasury's release of such information to the Agency for the purpose of 
evaluating your application.
    The NFM may enter into contracts in order to better implement the 
HFFI program (e.g., in servicing loans or grants once awards are made; 
providing technical assistance in a specialized topic). Even though the 
extent the NFM will need to enter into such contracts in order to 
implement the HFFI program is unknown and is likely to vary from CDFI 
to CDFI, an applicant's score will be commensurate with its experience 
in administering multiple contracts and subcontractors.
    Demonstrating an understanding of barriers faced by HFFI and 
successful and innovative approaches to overcome such barriers will 
help boost an applicant's score. Management experience relevant to 
healthy foods, especially in connection with public-private 
partnerships; underserved areas with low- and moderate-income 
populations; rural communities; tribal communities; and women- and 
minority-owned businesses will also help boost the applicant's score 
under this criterion.

E. Rural Experience (Maximum 10 Points)

    There are unique challenges to providing funding and technical 
assistance to rural communities. To be most effective as the NFM, the 
applicant should have substantial experience is providing funding and/
or technical assistance to rural communities. An applicant's score 
under this criterion will be commensurate with the amount of the 
applicant's experience with rural communities and its approach to 
ensure successful implementation of the HFFI program in rural areas.

F. Rural Project Awards (Maximum 20 Points)

    Under this criterion, the Agency will award points commensurate 
with the applicant's percentages of rural projects and the applicant's 
reasonable justification for those percentages. The Agency will require 
the selected NFM to meet or exceed this percentage in the third Federal 
fiscal year and each Federal fiscal year thereafter.
     If the applicant commits to funding 50 percent or higher 
of the total number of projects in rural areas in the third Federal 
fiscal year, the Agency will award up to 20 points.
     If the applicant commits to funding between at least 25 
percent and up to 50 percent of the total number of projects in rural 
areas in the third Federal fiscal year, the Agency will award up to 10 
points.
     If the applicant commits to funding less than 25 percent 
of the total number of projects in rural areas in the third Federal 
fiscal year, the Agency will award 0 points.

G. Program Evaluation (Maximum 10 Points)

    Being able to evaluate the performance of the HFFI program will 
require the collection and analysis of program outcome metrics. In 
selecting the NFM, the Agency will score applicants commensurate with 
(1) their experience in creating outcome metrics applicable to HFFI (or 
similar) projects or similar projects to include developing, tracking, 
and reporting project performance targets and metrics, especially with 
regards to projects associated with healthy food projects; and (2) 
their recommendation of outcome metrics for evaluating the extent that 
projects funded have met the statutory objectives of the HFFI program.

H. Local and Regional Food (Maximum 5 Points)

    Supporting local and regional supply chains promises to multiply 
the economic impact of the HFFI program, and ensure that it increases 
access to the healthiest foods. But, as with providing assistance to 
rural communities, there are unique challenges associated with projects 
that support local and regional supply chains. To be most effective as 
the NFM, the CDFI should have tangible experience providing funding 
and/or technical assistance to projects in local and regional food 
systems and have an understanding of the financial and logistical 
challenges facing local and regional food systems, especially as they 
pertain to low-income consumers' access to staple foods, creating 
quality jobs, and other support of community economic development. An 
applicant's score under this criterion will be commensurate with the 
amount of the applicant's experience in this area and understanding of 
the challenges facing local and regional food systems.

VI. Selection of the NFM

    The Agency will rank applicants based on their scores, with the 
highest

[[Page 85514]]

ranking applicant receiving first consideration.
    The Agency will notify, in writing, each applicant as to whether or 
not they were selected as the NFM. Applicants not selected for the NFM 
position will be provided appeal rights.

VII. Agency and National Fund Manager Agreement

    The Agency will enter into an appropriate Agreement with the 
selected applicant. The Agency will work with the selected applicant to 
clearly define the NFM's roles and responsibilities in accordance with 
this notice and section 4206. The Agreement will detail final 
provisions between the selected applicant and the Agency. If the Agency 
cannot reach agreement with the selected applicant on the terms and 
conditions for the Agreement, the Agency will approach the next best 
applicant to become the NFM.

VIII. For Further Information

    If you wish further information concerning this Notice and the 
solicitation of the NFM, please contact: James Barham, Agricultural 
Economist, 202-690-1411, james.barham@wdc.usda.gov.

IX. Nondiscrimination Statement

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW., Washington, 
DC 20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email: program.intake@usda.gov.
    USDA is an equal opportunity provider, employer, and lender.

    Dated: November 21, 2016.
Samuel H. Rikkers,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2016-28475 Filed 11-25-16; 8:45 am]
 BILLING CODE 3410-XY-P