Funding Opportunity Title: Notice of Allocation Availability (NOAA) Inviting Applications for the Calendar Year (CY) 2019 Allocation Round of the New Markets Tax Credit (NMTC) Program, 47060-47069 [2019-19203]

Agencies

• Community Development Financial Institutions Fund
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 84, Number 173 (Friday, September 6, 2019)]
[Notices]
[Pages 47060-47069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19203]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Funding Opportunity Title: Notice of Allocation Availability 
(NOAA) Inviting Applications for the Calendar Year (CY) 2019 Allocation 
Round of the New Markets Tax Credit (NMTC) Program

    Announcement Type: Announcement of NMTC Allocation availability.

DATES: Electronic applications must be received by 5:00 p.m. ET on 
October 28, 2019. Applications sent by mail, facsimile, or other form 
will not be accepted. Please note the Community Development Financial 
Institutions Fund (CDFI Fund) will only accept applications and 
attachments (e.g., the Controlling Entity's representative signature 
page, investor letters, and organizational charts) in electronic form 
(see Section IV.C of this NOAA for more details). Applications must 
meet all eligibility and other requirements and deadlines, as 
applicable, set forth in this NOAA. Any Applicant that is not yet 
certified as a Community Development Entity (CDE) must submit an 
application for CDE certification through the CDFI Fund's Awards 
Management Information System (AMIS) on or before 5:00 p.m. ET on 
September 23, 2019 (see Section III.A.1 of this NOAA for more details 
on CDE certification).
    Executive Summary: This NOAA is issued in connection with the CY 
2019 allocation round (Allocation Round) of the New Markets Tax Credit 
Program (NMTC Program), as authorized by Title I, subtitle C, section 
121 of the Community Renewal Tax Relief Act of 2000 (Pub. L. 106-554) 
as amended. (26 U.S.C. 45D). 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 the 
availability of $3.5 billion of NMTC Allocation authority in this 
Allocation Round.
    In this NOAA, the CDFI Fund specifically addresses how a CDE 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 from the CY 2018 allocation round:
    1. Prior QEI Issuance Requirements: Prior-year NMTC Allocatees will 
be subject to minimum thresholds for Qualified Equity Investment (QEI) 
issuance and closing of Qualified Low Income Community Investments 
(QLICIs) with respect to their prior-year allocations. These thresholds 
and deadlines have been revised in comparison to the CY 2018 NOAA. See 
Section III.3 of this NOAA for additional details.
    B. Program guidance and regulations: This NOAA describes 
application and Allocation requirements for this Allocation 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 
NMTC Regulations issued by the Internal Revenue Service (the IRS) (26 
CFR 1.45D-1, published on December 28, 2004), as amended and related 
guidance, notices and other publications; and (iii) the application and 
related materials for this Allocation Round. All such materials may be 
found on the CDFI Fund's website at https://www.cdfifund.gov. The CDFI 
Fund requires Applicants to review these documents. Capitalized terms 
used, but not defined, in this NOAA have the respective meanings 
assigned to them in the NMTC Program Allocation Application, Internal 
Revenue Code (IRC) Sec.  45D or the IRS NMTC regulations. In the event 
of any inconsistency between this NOAA, the Allocation Application, and 
guidance issued by the CDFI Fund thereto, IRC Sec.  45D or the IRS NMTC 
Regulations, the provisions of IRC Sec.  45D and the IRS NMTC 
Regulations shall govern.

II. Allocation Information

    A. Allocation amounts: Pursuant to the Protecting Americans from 
Tax Hikes (PATH) Act of 2015, the CDFI Fund expects that it may 
allocate to CDEs the authority to issue to their investors the 
aggregate amount of $3.5 billion in equity as to which NMTCs

[[Page 47061]]

may be claimed, as permitted under IRC Sec.  45D(f)(1)(D). Pursuant to 
this NOAA, the CDFI Fund anticipates that it will issue up to $100 
million in tax credit investment authority per Allocatee. 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. The CDFI Fund reserves the right to 
allocate NMTC authority to any, all, or none of the entities that 
submit applications in response to this NOAA, and in any amounts it 
deems appropriate.
    B. Type of award: NMTC Program awards are made in the form of 
allocations of tax credit investment authority.
    C. Allocation Agreement: Each Allocatee must sign an Allocation 
Agreement, which must be countersigned by the CDFI Fund, before the 
NMTC Allocation is effective. The Allocation Agreement contains the 
terms and conditions of the NMTC 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 available NMTC Allocation authority.
    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.
    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 through the AMIS on or before 
5:00 p.m. ET on September 23, 2019. Applicants for CDE certification 
may obtain information regarding CDE certification and the CDE 
certification application process in AMIS on the CDFI Fund's website at 
https://www.cdfifund.gov/programs-training/certification/cde/Pages/default.aspx. Applications for CDE certification must be submitted in 
AMIS. Paper versions of the CDE certification application will not be 
accepted.
    The CDFI Fund will not provide NMTC allocation authority to 
Applicants that are not certified as CDEs or to entities that are 
certified as Subsidiary CDEs.
    If an Applicant that has already been certified as a CDE wishes to 
change its designated CDE Service Area for this allocation round, it 
must submit its request for such change to the CDFI Fund, and the 
request must be received by the CDFI Fund by 5:00 p.m. ET September 23, 
2019. A request to change a CDE's Service Area must be submitted 
through the AMIS as a Service Request. Such requests will need to 
include, at a minimum, the applicable CDE control number, the revised 
service area designation, and updated accountability information that 
demonstrates that the CDE has the required representation from Low-
Income Communities in the revised Service Area.
    2. As a condition of eligibility for this Allocation Round, the 
Applicant will not be permitted to use the proceeds of Qualified Equity 
Investments (QEIs) to make Qualified Low-Income Community Investments 
(QLICIs) in Qualified Active Low-Income Community Businesses (QALICBs) 
where QLICI proceeds are used, in whole or in part, to repay or 
refinance a debt or equity provider whose capital was used to fund the 
QEI, or are used to repay or refinance any Affiliate of such a debt or 
equity provider, except where: (i) The QLICI proceeds are used to repay 
or refinance documented reasonable expenditures that are directly 
attributable to the qualified business of the QALICB, and such 
reasonable expenditures were incurred no more than 24 months prior to 
the QLICI closing date; or (ii) no more than five percent of the total 
QLICI proceeds from the QEI are used to repay or refinance documented 
reasonable expenditures that are directly attributable to the qualified 
business of the QALICB. Refinance includes transferring cash or 
property, directly or indirectly, to the debt or equity provider or an 
Affiliate of the debt or equity provider.
    3. Prior award recipients or Allocatees: Applicants must be aware 
that success in a prior application or allocation round of any of the 
CDFI Fund's programs is not indicative of success under this NOAA. 
Prior award recipients of any CDFI Fund program are eligible to apply 
under this NOAA, except as follows:
    a. Prior Allocatees and Qualified Equity Investment (QEI) issuance 
and Qualified Low Income Community Investment (QLICI) requirements: The 
following describes the QEI issuance and QLICI requirements applicable 
to prior Allocatees.
    An Allocatee in the CY 2013 allocation round of the NMTC Program is 
not eligible to receive an NMTC Allocation pursuant to this NOAA unless 
the Allocatee is able to affirmatively demonstrate that, as of 11:59 
p.m. ET on January 31, 2020, it has finalized 100 percent of its QEIs 
under that allocation and used at least the percentage of those QEIs 
designated Schedule 1, section 3.2(j) of its CY 2013 NMTC Allocation 
Agreement to make QLICIs.
    An Allocatee in the CY 2014 allocation round of the NMTC Program 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 January 31, 2020, it has finalized 90 percent of its QEIs 
under that allocation and used at least the percentage of those QEIs 
designated in Schedule 1, section 3.2(j) of its CY 2014 round NMTC 
Allocation Agreement to make QLICIs.
    An Allocatee in the CY 2015-16 combined allocation round of the 
NMTC Program 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 January 31, 2020, it has finalized at 
least 80 percent of its QEIs under that allocation and used at least 
the percentage of those QEIs designated in Schedule 1, section 3.2(j) 
of its CY 2015-16 round NMTC Allocation Agreement to make QLICIs.
    An Allocatee (with the exception of a Rural CDE Allocatee) in the 
CY 2017 allocation round of the NMTC Program 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 January 31, 
2020, it has finalized at least 50 percent of its QEIs under that 
allocation and used at least the percentage of those QEIs designated in 
Schedule 1, section 3.2(j) of its CY 2017 round NMTC Allocation 
Agreement to make QLICIs.
    A prior Rural CDE Allocatee (as indicated in its CY 2017 Allocation 
Agreement) awarded in the CY 2017 allocation 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 January 31, 2020, it has 
finalized at least 30 percent of its QEIs under that allocation and 
used at least the percentage of those QEIs designated in Schedule 1, 
section 3.2(j) of its CY 2017 round NMTC Allocation Agreement to make 
QLICIs.

[[Page 47062]]

    An Allocatee (with the exception of a Rural CDE Allocatee) in the 
CY 2018 allocation round of the NMTC Program 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 January 31, 
2020, it has finalized at least 30 percent of its QEIs under that 
allocation and used at least the percentage of those QEIs designated in 
Schedule 1, section 3.2(j) of its CY 2018 round NMTC Allocation 
Agreement to make QLICIs. A Rural CDE Allocatee (as indicated in its 
CY2018 Allocation Agreement) awarded in the CY 2018 Round is not 
required to meet the above QEI issuance or QLICI thresholds with regard 
to its CY 2018 NMTC Allocation award.
    In addition to the requirements described above, a CDE 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 
minimum QEIs issuance and QLICI thresholds as set forth above for 
Allocatees in the prior allocation rounds of the NMTC Program.
    For purposes of this section of the NOAA, the CDFI Fund will only 
recognize as ``finalized'' those QEIs that have been properly reported 
in AMIS Allocation Tracking System for Qualified Equity Investments 
(AQEIs) by the deadlines specified above. Allocatees and their 
Subsidiary Allocatees, if any, are advised to access AMIS to record 
each QEI that they issue to an investor in exchange for cash. 
Instructions on recording a QEI in AMIS is available at https://amis.cdfifund.gov/s/Training. Applicants may be required, upon 
notification from the CDFI Fund, to submit adequate documentation to 
substantiate the required QEI issuance and QLICI closings. To the 
extent necessary, the CDFI Fund will request additional QLICI data from 
Applicants during the application review process in order to determine 
whether the above thresholds for closed QLICIs have been met by the 
deadlines specified.
    Any prior Allocatee that requires any action by the CDFI Fund 
(i.e., 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 a Certification application for 
subsidiary CDEs by 5:00 p.m. ET on October 7, 2019 and Allocation 
Agreement amendment requests by no later than 5:00 p.m. ET on December 
30, 2019 in order to guarantee that the CDFI Fund completes all 
necessary approvals prior to 5:00 p.m. ET on January 31, 2020. 
Applicants for CDE certification, including for Subsidiary CDE 
certification, may obtain information regarding CDE certification and 
the CDE certification application process in AMIS on the CDFI Fund's 
website at https://www.cdfifund.gov. Applications for CDE certification 
must be submitted in AMIS. Paper versions of the CDE certification 
application will not be accepted.
    b. Pending determination of noncompliance or default: If an 
Applicant is a prior award recipient or Allocatee under any CDFI Fund 
program and if: (i) It has submitted reports to the CDFI Fund that 
demonstrate potential noncompliance with a previous assistance or award 
agreement or default under a previous Allocation Agreement; and (ii) 
the CDFI Fund has yet to make a final determination as to whether the 
entity is in noncompliance with its previous assistance or award 
agreement or in default of its previous Allocation Agreement, the CDFI 
Fund will consider the Applicant's application under this NOAA pending 
final determination of whether the entity is in noncompliance or 
default, in the sole determination of the CDFI Fund. Further, if an 
Affiliate of the Applicant is a prior CDFI Fund award recipient or 
Allocatee and if such entity: (i) Has submitted reports to the CDFI 
Fund that demonstrate potential noncompliance with a previous 
assistance or award agreement or default under a previous Allocation 
Agreement; and (ii) the CDFI Fund has yet to make a final determination 
as to whether the entity is in noncompliance with its previous 
assistance or award agreement, or in default of its previous Allocation 
Agreement, the CDFI Fund will consider the Applicant's application 
under this NOAA pending final determination of whether the entity is in 
noncompliance or default, in the sole determination of the CDFI Fund.
    c. Noncompliance or default status: The CDFI Fund will not consider 
an application submitted by an Applicant that is a prior CDFI Fund 
award recipient or Allocatee under any CDFI Fund program if, as of the 
application deadline of this NOAA: (i) The CDFI Fund has made a final 
determination that such Applicant is noncompliant with a previously 
executed assistance or award agreement, or in default of a previously 
executed Allocation Agreement; and (ii) the CDFI Fund has provided 
written notification of such final determination to the Applicant; and 
(iii) the default occurs during the time period beginning 12 months 
prior to the application deadline and ending with the execution of the 
CY 2019 Allocation Agreement. Further, the CDFI Fund will not consider 
an application submitted by an Applicant with an Affiliate that is a 
prior award recipient or Allocatee under any CDFI Fund Program if, as 
of the application deadline of this NOAA: (i) The CDFI Fund has made a 
final determination that such Affiliate is noncompliant with a 
previously executed assistance or award agreement, or in default of a 
previously executed Allocation Agreement; (ii) the CDFI Fund has 
provided written notification of such final determination to the 
Affiliate; and (iii) the default occurs during the time period 
beginning 12 months prior to the application deadline and ending with 
the execution of the CY 2019 Allocation Agreement;
    d. Contact the CDFI Fund: Accordingly, Applicants that are prior 
award recipients and/or Allocatees under any other CDFI Fund program 
are advised to comply with the requirements specified in assistance, 
allocation and/or award agreement(s). All outstanding reports and 
compliance questions should be directed to the Office of Certification, 
Compliance Monitoring, and Evaluation through a Service Request 
initiated in AMIS. Requests submitted less than thirty calendar days 
prior to the application deadline may not receive a response before the 
application deadline.
    The CDFI Fund will respond to Applicants' reporting, compliance or 
disbursement questions Mondays through Fridays, between the hours of 
9:00 a.m. and 5:00 p.m. ET, starting the date of publication of this 
NOAA through October 24, 2019 (two business days before the application 
deadline). The CDFI Fund will not respond to Applicants' reporting, 
compliance, CDE certification, or disbursement phone calls or email 
inquiries that are received after 5:00 p.m. ET on October 24, 2019, 
until after the funding application deadline of October 28, 2019.
    4. Failure to accurately respond to a question in the Assurances 
and Certifications section of the application, submit the required 
written explanation, or provide any updates: In its sole discretion, 
the CDFI Fund may deem the Applicant's application ineligible, if the 
CDFI Fund determines that the Applicant inaccurately responded to a 
question and failed to submit a required written explanation, 
accurately responded a question yet failed to submit a required written 
explanation, or failed to notify the CDFI Fund of any changes to the 
information submitted between the date of application and the date the 
Allocatee executes the Allocation Agreement, with respect to the 
Assurances and Certifications. In making this determination, the CDFI

[[Page 47063]]

Fund will take into consideration, among other factors, the materiality 
of the question, the substance of any supplemental responses provided, 
and whether the information in the Applicant's supplemental responses 
would have a material adverse effect on the Applicant, its financial 
condition or its ability to perform under an Allocation Agreement, 
should the Applicant receive an allocation.
    5. Entities that propose to transfer NMTCs to Subsidiary CDEs: Both 
for-profit and non-profit CDEs may apply for NMTC Allocation authority, 
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 
Subsidiary CDEs that are for-profit entities; and (ii) it intends to 
transfer the full amount of any NMTC Allocation it receives to said 
Subsidiary CDEs.
    An Applicant wishing to transfer all or a portion of its NMTC 
Allocation to a Subsidiary CDE 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.
    The CDFI Fund requires a non-profit Applicant to submit a CDE 
Certification application to the CDFI Fund on behalf of at least one 
for-profit Subsidiary within 60 days after the non-profit Applicant 
receives notification from the CDFI Fund of its allocation award, as 
such Subsidiary must be certified as a CDE prior to entering into an 
Allocation Agreement with the CDFI Fund. The CDFI Fund reserves the 
right to rescind the award if a non-profit Applicant that does not 
already have a certified for-profit Subsidiary CDE fails to submit a 
certification application for one or more for-profit Subsidiaries 
within 60 days of the date it receives notification from the CDFI Fund 
of its allocation award.
    6. Entities that submit applications together with Affiliates; 
applications from common enterprises:
    a. As part of the Allocation Application review process, the CDFI 
Fund will evaluate whether Applicants are Affiliates, as such term is 
defined in the Allocation Application. If an Applicant and its 
Affiliate(s) wish to submit Allocation Applications, they must do so 
collectively, in one application; an Applicant and its Affiliate(s) may 
not submit separate Allocation Applications. If Affiliated entities 
submit multiple applications, the CDFI Fund will reject all such 
applications received, except for those State-owned or State-controlled 
governmental Affiliated entities. In the case of State-owned or State-
controlled governmental entities, the CDFI Fund may accept applications 
submitted by different government bodies within the same State, 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/or are operated 
and/or managed by distinctly dissimilar personnel, including staff, 
board members and 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 $100 
million cap. If the CDFI Fund determines that the applications 
submitted by different government bodies in the same State are not 
distinctly dissimilar and/or operated and/or managed by distinctly 
dissimilar personnel, it will reject all such applications.
    b. For purposes of this NOAA, the CDFI Fund will also evaluate 
whether each Applicant is operated or managed as a ``common 
enterprise'' with another Applicant in this Allocation Round using the 
following indicia, among others: (i) Whether different Applicants have 
the same individual(s), including the Authorized Representative, staff, 
board members and/or consultants, involved in day-to-day management, 
operations and/or investment responsibilities; (ii) whether the 
Applicants have business strategies and/or proposed activities that are 
so similar or so closely related that, in fact or effect, they may be 
viewed as a single entity; and/or (iii) whether the applications 
submitted by separate Applicants contain significant narrative, textual 
or other similarities such that they may, in fact or effect, be viewed 
as substantially identical applications. In such cases, the CDFI Fund 
will reject all applications received from such entities.
    c. Furthermore, an Applicant that receives an allocation in this 
Allocation Round (or its Subsidiary Allocatee) 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 Allocatee) 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 website at https://www.cdfifund.gov for more 
details).
    7. Entities created as a series of funds: An Applicant whose 
business structure consists of an entity with a series of funds must 
apply for CDE certification for each fund. 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 must submit a CDE Certification application for 
the Applicant and each fund it would like to participate in the NMTC 
Program, 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 fund is a certified CDE that is a Subsidiary of the 
Applicant, enjoined to the Allocation Agreement as a Subsidiary 
Allocatee.
    8. Entities that are Bank Enterprise Award Program (BEA Program) 
award recipients: 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 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's 
Awards Management Information System (AMIS). Following the publication 
of this NOAA, the CDFI Fund will make the electronic Allocation 
Application available on its website at https://www.cdfifund.gov.
    B. Application content requirements: Detailed application content

[[Page 47064]]

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, except, if necessary and at the request of the CDFI 
Fund. Electronic applications must be submitted solely by using the 
format made available via AMIS. Additional information, including 
instructions relating to the submission of supporting information 
(e.g., the Controlling Entity's representative signature page, 
Assurances and Certifications supporting documents, investor letters, 
organizational charts), is set forth in further detail in the CY 2019 
NMTC Application--AMIS Navigation Guide for this Allocation Round. An 
application must include a valid and current Employer Identification 
Number (EIN) issued by the Internal Revenue Service (IRS) 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 IRS at (800) 829-4933 or www.irs.gov. Do not include 
any personal Social Security Numbers as part of the application.
    An Applicant may not submit more than one application in response 
to this NOAA. In addition, as stated in Section III.A.6 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 in Section III.A.6 
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 via AMIS, the CDFI Fund's 
Award Management Information System. Applications and required 
attachments sent by mail, facsimile, or email 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.
    Electronic applications must be submitted solely by using the CDFI 
Fund's website and must be sent in accordance with the submission 
instructions provided in the CY 2019 NMTC Application--AMIS Navigation 
Guide for this Allocation Rounds. AMIS 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 (e.g., the Controlling 
Entity's representative signature page, Assurances and Certifications 
supporting documents, investor letters, and organizational charts) is 
set forth in further detail in the CY 2019 NMTC Application--AMIS 
Navigation Guide for this Allocation Round.
    D. Application submission dates and times:
    1. Application deadlines:
    a. Electronic applications must be received by 5:00 p.m. ET on 
October 28, 2019. Electronic applications cannot be transmitted or 
received after 5:00 p.m. ET on October 28, 2019. In addition, 
Applicants must electronically submit supporting information (e.g., the 
Controlling Entity's representative signature page, investor letters, 
and organizational charts). The Controlling Entity's representative 
signature page, Assurances and Certifications supporting documents, 
investor letters, and organizational charts must be submitted on or 
before 5:00 p.m. ET on October 28, 2019. For details, see the 
instructions provided in the CY 2019 NMTC Application--AMIS Navigation 
Guide for this Allocation Round on the CDFI Fund's website.
    Applications and other required documents received after this date 
and time will be rejected. Please note that the document submission 
deadlines in this NOAA and/or the Allocation Application are strictly 
enforced.
    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 as amended) and related guidance. 
Please see Section I, above, for the Programmatic Changes of this NOAA.
    G. Paperwork Reduction: Under the Paperwork Reduction Act (44 
U.S.C. chapter 35), an agency may not conduct or sponsor a collection 
of information, and an individual is not required to respond to a 
collection of information, unless it displays a valid OMB control 
number. Pursuant to the Paperwork Reduction Act, the application has 
been assigned the following control number: 1559-0016.

V. Application Review Information

    A. Review and selection process: All Allocation Applications will 
be reviewed for eligibility and completeness. 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.
    In Phase 1, two reviewers will evaluate and score the Business 
Strategy and Community Outcomes sections of each application. An 
Applicant must exceed a minimum overall aggregate base score threshold 
and exceed a minimum aggregate section score threshold in each scored 
section in order to advance from the Phase 1 to the Phase 2 part of the 
substantive review process. In Phase 2, the CDFI Fund will rank 
Applicants and determine the dollar amount of allocation authority 
awarded in accordance with the procedures set forth below.
    B. 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; a pipeline of potential business loans or 
investments consistent with an Applicant's request for an NMTC 
Allocation; 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 extent to 
which the Applicant intends to make 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 Qualified Active Low Income Community Businesses 
(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 are flexible or non-traditional in form 
and on better terms than available in the marketplace. An Applicant 
will also score well to the

[[Page 47065]]

extent that, among other things: (i) It has identified a set of 
clearly-defined potential borrowers or investees; (ii) it has a track 
record of successfully deploying loans or equity investments and 
providing services similar to those it intends to provide with the 
proceeds of QEIs; (iii) its projected dollar volume of NMTC deployment 
is supported by its track record of deployment; (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. If the Applicant (or its Affiliates) have notable 
relationships with QALICBs, the Applicant will generally score well if 
it quantifies how such relationships will create benefits (i.e., cost 
savings, lower fees) for QALICBs, unaffiliated end-users such as tenant 
businesses, or residents of 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 (and the 
Applicant's subsidiary CDEs, if the Subsidiary Allocatee makes the 
QLICI) 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 
include an Applicant's priority points when ranking Applicants during 
Phase 2 of the review process, as described below.
    2. Community Outcomes (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: (i) Achieve 
significant and measurable community development outcomes in its Low-
Income Communities; (ii) invest in particularly economically distressed 
markets: (iii) Engage with local communities regarding investments; 
(iv) the level of involvement of community representatives in the 
Governing Board and/or Advisory Board in approving investment criteria 
or decisions; and (v) demonstrate a track record of investing in 
businesses that spur additional private capital investment in Low-
Income Communities.
    An Applicant will generally score well under this section to the 
extent that, among other things: (a) It will generate clear and well 
supported community development outcomes; (b) it has a track record of 
producing quantitative and qualitative community outcomes that are 
similar to those projected to be achieved with an NMTC Allocation; (c) 
it is working in particularly economically distressed or otherwise 
underserved communities; (d) its activities are part of a broader 
community or economic development strategy; (e) it demonstrates a track 
record of community engagement around past investment decisions; (f) it 
ensures that an NMTC investment into a project or business is supported 
by and will be beneficial to Low-Income Persons and residents of Low-
Income Communities (LICs); and (g) it is likely to engage in activities 
that will spur additional private capital investment.
    C. Phase 2 Evaluation.
    1. Application Ranking and Anomaly Reviews: Using the numeric 
scores from Phase 1, Applicants are ranked on the basis of each 
Applicant's combined scores in the Business Strategy and Community 
Outcomes sections of the application plus one half of the priority 
points. If, in the case of a particular application, a reviewer's total 
base score or section score(s) (in one or more of the two application 
scored sections) varies significantly from the other reviewer's total 
base scores or section scores for such application, the CDFI Fund may, 
in its sole discretion, obtain the evaluation and numeric scoring of an 
additional third reviewer to determine whether the anomalous score 
should be replaced with the score of the additional third reviewer.
    2. Late Reports: In the case of an Applicant or any Affiliates that 
has previously received an award or Allocation from the CDFI Fund 
through any CDFI Fund program, the CDFI Fund will deduct points from 
the Applicant's ``Final Rank Score'' for the Applicant's (or its 
Affiliate's) failure to meet any of the reporting deadlines set forth 
in any assistance, award or Allocation Agreement(s), if the reporting 
deadlines occurred during the period from June 28, 2018 to the 
application deadline in this NOAA (October 28, 2019).
    3. Prior Year Allocatees: In the case 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 in a 
manner generally consistent with the representations made in the 
relevant Allocation Application (including, but not limited to, the 
proposed product offerings, QALICB type, fees and markets served); (b) 
issued QEIs and closed QLICIs in a timely manner; and (c) substantiated 
a need for additional allocation authority. The CDFI Fund will use this 
information in determining whether to reject or reduce the allocation 
award amount of its NMTC Allocation Application.
    The CDFI Fund will award allocations in the order of the ``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.
    4. Management Capacity: In assessing an Applicant's management 
capacity, CDFI Fund will consider, among other things, the current and 
planned roles, as well as qualifications of the Applicant's (and 
Controlling Entity's, if applicable): Principals, board members, 
management team, and other essential staff or contractors, with 
specific focus on: experience in providing loans, equity investments or 
financial counseling and other services, 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 credit programs; and the Applicant's (or its Controlling Entity's) 
financial health. CDFI Fund evaluators will also consider the extent to 
which an Applicant has protocols in place to

[[Page 47066]]

ensure ongoing compliance with NMTC Program requirements and the 
Applicant's projected income and expenses related to managing an NMTC 
Allocation.
    An Applicant will be generally evaluated more favorably under this 
section to the extent that its management team or other essential 
personnel have experience in: (a) Providing loans, equity investments 
or financial counseling and other services 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 be evaluated favorably to the extent 
it demonstrates strong financial health and a high likelihood of 
remaining a going-concern; it clearly explains levels of income and 
expenses; has policies and systems in place to ensure portfolio 
quality, ongoing compliance with NMTC Program requirements; and, if it 
is a Federally-insured financial institution, has its most recent 
Community Reinvestment Act (CRA) rating as ``outstanding.''
    5. Capitalization Strategy: When assessing an Applicant's 
capitalization strategy, CDFI Fund 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 or 
commitments to invest in NMTC (if applicable), or indications of 
investor interest commensurate with its requested amount of tax credit 
Allocations, or, if a prior Allocatee, the track record of the 
Applicant or its Affiliates in raising Qualified Equity Investments in 
the past five years; 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; and 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.
    An Applicant will be evaluated more favorably under this section to 
the extent that: (a) It or its Controlling Entity demonstrate a track 
record of raising investment capital; (b) it has secured investor 
commitments, or has a reasonable strategy for obtaining such 
commitments, or, if it or its Affiliates is a prior Allocatee with a 
track record in the past five years of raising Qualified Equity 
Investments and; (c) it generally demonstrates that the economic 
benefits of the tax credit will be passed through to a QALICB; and (d) 
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 be evaluated more favorably 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 activities to areas of greater economic distress than those 
currently targeted by the investor or Affiliated entities.
    D. 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 QEIs under the NMTC 
Program. The CDFI Fund will endeavor to ensure that 20 percent of the 
QLICIs to be made using QEI proceeds are invested in Non-Metropolitan 
counties. In addition, 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 highly qualified pool that are Rural 
CDEs. A Rural CDE is one that has a track record of at least three 
years of direct financing experience, has dedicated at least 50 percent 
of its direct financing dollars to Non-Metropolitan counties over the 
past five years, and has committed that at least 50 percent of its NMTC 
financing dollars with this Allocation will be deployed in such areas. 
Non-Metropolitan counties are counties not contained within a 
Metropolitan Statistical Area, as such term is defined in OMB Bulletin 
No. 10-02 (Update of Statistical Area Definitions and Guidance on Their 
Uses) and applied using 2010 census tracts.
    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 available 
allocation authority is fulfilled. 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 highly qualified pool that are Rural CDEs. If this objective is not 
achieved, the CDFI Fund will provide awards to additional Rural CDEs 
from the highly qualified pool, in descending order of their Final Rank 
Score, until the appropriate percentage balance is achieved. In order 
to accommodate the additional Rural CDEs in the Allocatee pool within 
the available Allocation limitations, a formula reduction may be 
applied as uniformly as possible to the allocation amount for all 
Allocatees in the pool that have not committed to investing a minimum 
of 20 percent of their QLICIs in Non-Metropolitan counties.
    The CDFI Fund will then determine whether 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 
the Allocatees 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 goal of 20 percent of QLICIs in Non-Metropolitan counties by 
requiring any or all Allocatees to commit up to the maximum percentage 
of QLICIs that they indicated would be targeted to Non-Metropolitan 
counties, the CDFI Fund may add additional highly qualified Rural CDEs 
(in descending order of final rank score) to the Allocatee pool. In 
order to accommodate any additional Allocatees within the allocation 
limitations, a formula reduction will be applied as uniformly as 
possible, to the allocation amount for all Allocatees in the pool

[[Page 47067]]

that have not committed to investing a minimum of 20 percent of their 
QLICIs in Non-Metropolitan counties.
    E. Questions: All outstanding reports or compliance questions 
should be directed to the Office of Certification, Compliance 
Monitoring, and Evaluation through the submission of a Service Request 
in AMIS or by telephone at (202) 653-0423. The CDFI Fund will respond 
to reporting or compliance questions Mondays through Fridays, between 
the hours of 9:00 a.m. and 5:00 p.m. ET, starting the date of the 
publication of this NOAA through October 24, 2019. The CDFI Fund will 
not respond to reporting or compliance phone calls or email inquiries 
that are received after 5:00 p.m. ET on October 24, 2019 until after 
the funding application deadline of October 28, 2019.
    F. Right of rejection: The CDFI Fund reserves the right to reject 
any NMTC Allocation Application in the case of a prior CDFI Fund award 
recipient, 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 or reduce the allocation 
award amount of any NMTC Allocation Application in the case of a prior 
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, QALICB type, fees and markets served) set forth in the 
Allocation Application(s) related to such prior Allocation(s) or such 
Applicant has been found by the IRS to have engaged in a transaction or 
series of transactions designed to achieve a result that is 
inconsistent with the purposes of IRC Sec.  45D. The CDFI Fund also 
reserves the right to reject or reduce the allocation award amount of 
any NMTC Allocation Application in the case of an Affiliate of the 
Applicant that is a prior Allocatee and 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, QALICB type, fees and markets served) set forth in the 
Allocation Application(s) related to such prior NMTC Allocation(s) or 
has been found by the IRS to have engaged in a transaction or series of 
transactions designed to achieve a result that is inconsistent with the 
purposes of IRC Sec.  45D.
    The CDFI Fund reserves the right to reject an NMTC Allocation 
Application if information (including, but not limited to, 
administrative errors or omission of information) 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, adversely affects the CDFI Fund's prior 
determinations of CDE certification, or indicates fraud or 
mismanagement on the part of an Applicant, its Affiliate(s), or the 
Controlling Entity, if such fraud or mismanagement by the Affiliate(s) 
or Controlling Entity would hinder the Applicant's ability to perform 
under the Allocation Agreement. 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 the Allocation Recommendation Panel member(s) to request 
information from Applicants for the sole purpose of obtaining, 
clarifying or confirming application information or omission of 
information. In no event shall such contact be construed to permit an 
Applicant to change any element of its application. 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. If the Applicant (or the Controlling 
Entity or any Affiliate) has previously been awarded an NMTC 
Allocation, the CDFI Fund may also request information on the use of 
those NMTC Allocations, to the extent that this information has not 
already been reported to the CDFI Fund. 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 NMTC Allocation 
authority available. The CDFI Fund reserves the right to reject any 
NMTC Allocation Application if additional information is obtained that, 
after further due diligence and in the discretion of the CDFI Fund, 
would hinder the Applicant's ability to effectively perform under the 
Allocation Agreement.
    In the case of Applicants (or the Controlling Entity, or 
Affiliates) that are regulated or receive oversight by the Federal 
government or a State agency (or comparable entity), the CDFI Fund may 
request additional information from the Applicant regarding Assurances 
and Certifications or other information about the ability of the 
Applicant to effectively perform under the Allocation Agreement. The 
Allocation Recommendation Panel or selecting official(s) reserve(s) the 
right to consult with and take into consideration the views of the 
appropriate Federal 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. An Applicant that is or is 
Affiliated with an insured depository institution will not be awarded 
an allocation if it has a composite rating of ``5'' on its most recent 
examination, performed in accordance with the Uniform Financial 
Institutions Rating System.
    Furthermore, the CDFI Fund will not award an NMTC Allocation to an 
Applicant that is an insured depository institution or is an Affiliate 
of an insured depository institution, if during the time period 
beginning with the application deadline and ending with the execution 
of the CY 2019 Allocation Agreement; the Applicant received any of the 
following:
    1. CRA assessment rating of below ``Satisfactory'' on its most 
recent examination,
    2. A going concern opinion on its most recent audit; or
    3. A Prompt Corrective Action directive from its regulator.
    The CDFI Fund reserves the right to conduct additional due 
diligence on all Applicants, as determined reasonable and appropriate 
by the CDFI Fund, in its sole discretion, related to the Applicant, 
Affiliates, the Applicant's Controlling Entity and the officers, 
directors, owners, partners and key employees of each. This includes 
the right to consult with the IRS if the Applicant (or the Controlling 
Entity, or Affiliates) has

[[Page 47068]]

previously been awarded an NMTC Allocation.
    Each Applicant will be informed of the CDFI Fund's award decision 
through an electronic notification whether selected for an allocation 
or not selected for an allocation, which may be for reasons of 
application incompleteness, ineligibility, or substantive issues. 
Eligible Applicants that are not selected for an allocation based on 
substantive issues will likely be given the opportunity to receive 
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 website.
    There is no right to appeal the CDFI Fund's NMTC Allocation 
decisions. The CDFI Fund's NMTC Allocation decisions are final.

VI. Award Administration Information

    A. Allocation Award Compliance
    1. Failure to meet reporting requirements: If an Allocatee, or an 
Affiliate of an Allocatee, is a prior CDFI Fund award recipient 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 the CDFI Fund provides 
notification of an NMTC Allocation award or thereafter, the CDFI Fund 
reserves the right, in its sole discretion, to reject the application, 
delay entering into an Allocation Agreement, and/or impose limitations 
on an Allocatee's ability to issue QEIs to investors until said prior 
award recipient or Allocatee is current on the reporting requirements 
in the previously executed assistance, allocation, or award 
agreement(s). Please note that the automated systems the CDFI Fund uses 
for receipt of reports submitted electronically typically acknowledges 
only a report's receipt; such an acknowledgment does not warrant that 
the report received was complete and therefore met reporting 
requirements.
    2. Pending determination of noncompliance or default: If an 
Allocatee is a prior award recipient or Allocatee under any CDFI Fund 
program and if: (i) It has submitted reports to the CDFI Fund that 
demonstrate potential noncompliance with a previous assistance or award 
agreement or a potential default under an Allocation Agreement; and 
(ii) the CDFI Fund has yet to make a final determination as to whether 
the entity is noncompliant with a previous assistance or award 
agreement or is in default under a previous 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 final determination of whether the entity is in noncompliance 
or default, and determination of remedies, if applicable, in the sole 
determination of the CDFI Fund. Further, if an Affiliate of an 
Allocatee is a prior CDFI Fund award recipient or Allocatee and if such 
entity: (i) Has submitted reports to the CDFI Fund that demonstrate 
potential noncompliance under a previous assistance or award agreement 
or potential default under a previous Allocation Agreement; and (ii) 
the CDFI Fund has yet to make a final determination as to whether the 
entity is in noncompliance under its previous assistance or award 
agreement, or in default of its previous 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 QEIs to investors, pending final determination of 
whether the entity is in noncompliance or default, and determination of 
remedies, if applicable, in the sole determination of the CDFI Fund. If 
the prior award recipient or Allocatee in question is unable to 
satisfactorily resolve the issues of noncompliance or default, 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. Determination of noncompliance or default status: If prior to 
entering into an Allocation Agreement through this NOAA: (i) The CDFI 
Fund has made a final determination that an Allocatee that is a prior 
CDFI Fund award recipient or Allocatee under any CDFI Fund program is 
(i) noncompliant with a previously executed assistance or award 
agreement, or is in default of a previously executed Allocation 
Agreement; (ii) the CDFI Fund has provided written notification of such 
determination to such organization; and (iii) the noncompliance or 
default occurs during the time period beginning 12 months prior to the 
application deadline and ending with the execution of the CY 2019 
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 QEIs to 
investors, or to terminate and rescind the NMTC Allocation made under 
this NOAA.
    Furthermore, if prior to entering into an Allocation Agreement 
through this NOAA: (i) The CDFI Fund has made a final determination 
that an Affiliate of an Allocatee that is a prior CDFI Fund award 
recipient or Allocatee under any CDFI Fund programs is in noncompliance 
of a previously executed assistance or award agreement or in default of 
a previously executed Allocation Agreement(s); (ii) the CDFI Fund has 
provided written notification of such determination to such 
organization; and (ii) the default occurs during the time period 
beginning 12 months prior to the application deadline and ending with 
the execution of the CY 2019 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 QEIs to investors, or to terminate and rescind the 
NMTC Allocation made under this NOAA.
    B. Allocation Agreement: Each Applicant that is selected to receive 
a NMTC Allocation (Allocatee) (including their Subsidiary Allocatees) 
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, 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 Non-
Metropolitan counties; (iv) commitments to specific ``innovative 
activities'' discussed by the Allocatee in its Allocation Application; 
(v) the time period by which the Allocatee may obtain QEIs from 
investors; (vi) reporting requirements for the Allocatee; and (vii) a 
requirement to maintain certification as a CDE throughout the term of 
the Allocation Agreement. If an Allocatee 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 Allocatee hold a majority equity

[[Page 47069]]

interest, the Allocation Agreement will contain a covenant to that 
effect.
    In addition to entering into an Allocation Agreement, each 
Allocatee must furnish to the CDFI Fund an opinion from its legal 
counsel or a similar certification, the content of which will be 
further specified in the Allocation Agreement, to include, among other 
matters, an opinion that an Allocatee (and its Subsidiary Allocatees, 
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 Allocatees, 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 Allocatees. The CDFI Fund reserves the right, in its sole 
discretion, to rescind its NMTC 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, including an approved legal opinion, 
within the deadlines set by the CDFI Fund.
    C. 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.
    D. Reporting: The CDFI Fund will collect information, on at least 
an annual basis from all Allocatees and/or CDEs that 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 require the Allocatee to retain 
information as the CDFI Fund deems necessary or desirable and shall 
provide such information to the CDFI Fund when requested to monitor 
each Allocatee's compliance with the provisions of its Allocation 
Agreement and to assess the impact of the NMTC Program in Low-Income 
Communities. The CDFI Fund may also provide such information to the IRS 
in a manner consistent with IRC Sec.  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 Mondays through Fridays, 
between the hours of 9:00 a.m. and 5:00 p.m. ET through October 24, 
2019. The CDFI Fund will not respond to phone calls or emails 
concerning the application that are received after 5:00 p.m. ET on 
October 24, 2019 until after the Allocation Application deadline of 
October 28, 2019. Applications and other information regarding the CDFI 
Fund and its programs may be obtained from the CDFI Fund's website at 
https://www.cdfifund.gov. The CDFI Fund will post on its website 
responses to questions of general applicability regarding the NMTC 
Program.
    A. Information technology support: Technical support can be 
obtained by calling (202) 653-0422 or by submitting a Service Request 
in AMIS. People who have visual or mobility impairments that prevent 
them from accessing the Low-Income Community maps using the CDFI Fund's 
website should call (202) 653-0422 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 submitting a Service Request in AMIS; or by 
telephone at (202) 653-0421. 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 submitting a Service Request in AMIS, or by 
telephone at (202) 653-0421. These are not toll free numbers.
    D. IRS support: For questions regarding the tax aspects of the NMTC 
Program, contact Jian Grant and James Holmes, Office of the Chief 
Counsel (Passthroughs and Special Industries), IRS, by telephone at 
(202) 317-4137, or by facsimile at (855) 591-7867. These are not toll 
free numbers. Applicants wishing for a formal ruling request should see 
IRS Internal Revenue Bulletin 2018-1, issued January 2, 2018.

VIII. Information Sessions

    In connection with this NOAA, the CDFI Fund may conduct one or more 
information sessions that will be produced in Washington, DC and 
broadcast over the internet via webcasting as well as telephone 
conference calls. For further information on these upcoming information 
sessions, please visit the CDFI Fund's website at https://www.cdfifund.gov.

    Authority:  26 U.S.C. 45D; 31 U.S.C. 321; 26 CFR 1.45D-1.

Jodie Harris,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2019-19203 Filed 9-5-19; 8:45 am]
 BILLING CODE 4810-70-P