Notice of Allocation Availability (NOAA) Inviting Applications for the Calendar Year (CY) 2021 Allocation Round of the New Markets Tax Credit (NMTC) Program, 61839-61849 [2021-24310]

Agencies

• Community Development Financial Institutions Fund
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 86, Number 213 (Monday, November 8, 2021)]
[Notices]
[Pages 61839-61849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24310]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


 Notice of Allocation Availability (NOAA) Inviting Applications 
for the Calendar Year (CY) 2021 Allocation Round of the New Markets Tax 
Credit (NMTC) Program

    Funding Opportunity Title: Notice of Allocation Availability (NOAA) 
Inviting Applications for the Calendar Year (CY) 2021 Allocation Round 
of the New Markets Tax Credit (NMTC) Program.
    Announcement Type: Announcement of NMTC Allocation availability.
    Dates:

                Table 1--CY 2021 Allocation Round NMTC Program Critical Deadlines for Applicants
----------------------------------------------------------------------------------------------------------------
           Description                     Deadline/date          Time  (eastern time--ET)    Submission method
----------------------------------------------------------------------------------------------------------------
Community Development Entity       November 18, 2021...........  11:59 p.m. ET............  Electronically via
 (CDE) Certification Application.                                                            the Awards
                                                                                             Management
                                                                                             Information System
                                                                                             (AMIS).
Request to modify CDE              November 18, 2021...........  11:59 p.m. ET............  Electronically via
 certification service area.                                                                 AMIS.
Subsidiary CDE Certification       November 18, 2021...........  11:59 p.m. ET............  Electronically via
 Application for meeting                                                                     AMIS.
 Qualified Equity Investment
 (QEI) issuance thresholds.
CY 2021 Application Registration.  December 6, 2021............  5:00 p.m. ET.............  Electronically via
                                                                                             AMIS.
Last date to contact CDFI Fund     January 11, 2022............  5:00 p.m. ET.............  Electronically via
 staff.                                                                                      AMIS.
CY 2021 Allocation Application     January 13, 2022............  5:00 p.m. ET.............  Electronically via
 (including required Attachments).                                                           AMIS.
Amendment request to add           January 20, 2022............  11:59 p.m. ET............  Electronically via
 Subsidiary CDEs to Allocation                                                               AMIS.
 Agreements for meeting QEI
 issuance thresholds.
QEI Issuance and making Qualified  March 21, 2022..............  11:59 p.m. ET............  Not Applicable.
 Low Income Community Investments
 (QLICIs) by.
Amendment request to remove a      March 21, 2021..............  11:59 p.m. ET............  Electronically via
 Controlling Entity from                                                                     AMIS.
 Allocation Agreement(s).

[[Page 61840]]

 
Report QEIs and QLICIs by........  March 28, 2022..............  11:59 p.m. ET............  Electronically via
                                                                                             AMIS.
----------------------------------------------------------------------------------------------------------------

    Executive Summary: This NOAA is issued in connection with the CY 
2021 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. Through the NMTC Program, the Community Development 
Financial Institutions Fund (CDFI Fund) provides authority to certified 
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 $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 2020 allocation round:
    1. Prior QEI Issuance Requirements: Prior-year NMTC Allocatees will 
be subject to minimum thresholds for QEI issuance and closing of QLICIs 
with respect to their prior-year NMTC Allocations. These thresholds and 
deadlines have been revised in comparison to the CY 2020 NOAA. See 
Section III. A.5(a) of this NOAA for additional details.
    2. Controlling Entity: The definition of Controlling Entity has 
been revised beginning with CY 2021 for Applicants that have not 
received allocations under prior NMTC Program rounds CY 2013 to CY 
2020. Applicants will be required to meet the Controlling Entity 
definition in the CY 2021 Allocation Application. If awarded, a CY 2021 
Applicant that has not received an allocation(s) under NMTC Program 
rounds CY 2013 to CY 2020 and designates a Controlling Entity, will be 
required to demonstrate that it meets the Controlling Entity definition 
in the CY 2021 Allocation Application no later than 60 days from the 
date it receives notification from the CDFI Fund of its allocation 
award. Applicants that received an allocation(s) under NMTC Program 
rounds CY 2013 to CY2020 that want to remove their Controlling Entity 
are required to submit the amendment request by the deadline in Table 
1.

II. Allocation Information

    A. Allocation amounts: Pursuant to the Taxpayer Certainty and 
Disaster Tax Relief Act of 2020, the CDFI Fund expects that it may 
allocate to CDEs the authority to issue to their investors the 
aggregate amount of $5 billion in equity as to which NMTCs may be 
claimed, as permitted under IRC Sec.  45D(f)(1)(D). Pursuant to this 
NOAA, the CDFI Fund anticipates that it may 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. Program guidance and regulations: This NOAA describes 
application and NMTC Allocation requirements for this Allocation Round 
of the NMTC Program and should be read in conjunction with: (i) The 
final NMTC Program Income Tax Regulations issued by the Internal 
Revenue Service (IRS) (26 CFR 1.45D-1, published on December 28, 2004), 
as amended and related guidance, notices and other publications; and 
(ii) 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.
    D. 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.B of this NOAA.
    E. Statutory and national policy requirements: The CDFI Fund will 
manage and administer the NMTC Program in a manner so as to ensure that 
NMTC Allocations associated programs are implemented in full accordance 
with the U.S. Constitution, Federal Law, statutory, and public policy 
requirements: including, but not limited to, those protecting free 
speech; religious liberty; public welfare; the environment; and 
prohibiting discrimination.

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.
    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 AMIS by the deadline in 
Table 1. 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.
    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

[[Page 61841]]

Allocation Round, then it must submit its request for such change to 
the CDFI Fund, and the request must be received by the CDFI Fund by the 
deadline listed in
    Table 1. A request to change a CDE's Service Area will need to 
include 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 CDE Service 
Area.
    2. Repayment or Refinancing of QEI with QLICI Proceeds: An 
applicant must commit that it will not permit the use of the proceeds 
of QEIs to make 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. Do Not Pay: The CDFI Fund will contact the Do Not Pay Business 
Center to ensure that an Applicant, its Controlling Entity, and any 
Affiliate(s) are not prohibited from receiving federal funds. An 
Applicant, its Controlling Entity, and any Affiliate(s) reported by the 
Do Not Pay Business Center as having a pending or delinquent debt to 
the Federal government will be required to demonstrate that it has 
resolved such pending or delinquent debt. Applicants that fail to 
demonstrate resolution of such pending or delinquent debt to the 
Federal government will be found ineligible to receive an allocation.
    4. Controlling Entities: An organization that was a Controlling 
Entity to an Allocatee in a prior round(s) and subsequently separated 
from that Allocatee, as a result of an amendment to the Allocation 
Agreement(s), may not claim the NMTC-related track record of such 
Allocatee.
    5. 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. For 
purposes of this NOAA, and eligibility determinations, the CDFI Fund 
will consider an Affiliate to be any entity that meets the definition 
of Affiliate as defined in the NMTC Allocation Application materials, 
or any entity otherwise identified as an Affiliate by the Applicant in 
its NMTC Allocation Application materials.
    Prior 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: 
CDEs that are Allocatees under the CY 2015-16 to the CY 2020 rounds 
must finalize at least the percentage of QEIs noted in Table 2 for each 
NMTC Allocation round and use at least the percentage of those QEIs 
designated in Schedule 1, section 3.2(j) of their Allocation Agreements 
to make QLICIs by the deadline in Table 1. CDEs that are Allocatees 
under the CY 2015-16 to the CY 2020 allocation rounds and CDEs that are 
Allocatees designated as Rural CDEs in their CY 2019 and/or CY 2020 
Allocation Agreements must meet the following thresholds.

                                  Table 2--QEI Issuance and QLICI Requirements
----------------------------------------------------------------------------------------------------------------
                                                                Rural CDE
          Prior round  allocation            Finalized QEI    finalized QEI                 QLICIs
                                             requirement  %   requirement  %
----------------------------------------------------------------------------------------------------------------
CY 2015-16................................              100              100  As stated in Section 3.2(j) of the
                                                                               applicable Allocation Agreement.
CY 2017...................................               90               90
CY 2018...................................               70               70
CY2019....................................               40               40
CY 2020...................................               20                0
----------------------------------------------------------------------------------------------------------------

    In addition to the requirements noted above, a CDE is not eligible 
to receive an NMTC Allocation pursuant to this NOAA if an Affiliate of 
the Applicant is a prior Allocatee and has not met the minimum QEI 
issuance and QLICI thresholds as set forth in Table 2 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 and QEI Tracking System for Qualified Equity 
Investments (AQEIs) by the deadline in Table 1. 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. 
Furthermore, the CDFI Fund will only recognize QLICIs that have been 
certified in AMIS by the deadline in Table 1. Instructions on recording 
a QEI and QLICIs in AMIS are available at https://www.cdfifund.gov/amisreporting. Applicants may be required, upon notification from the 
CDFI Fund, to submit documentation to substantiate the required QEI 
issuance and QLICI thresholds.
    Any prior Allocatee that requires 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 CDE Certification 
Application for Subsidiary CDEs and/or Allocation Agreement amendment 
requests by the respective deadlines in Table 1, in order to guarantee 
that the CDFI Fund completes all necessary approvals prior to the QEI 
issuance deadline in Table 1. Applicants 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/programs-training/certification/cde/Pages/default.aspx.
    (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 demonstrated noncompliance with a previous 
assistance or award agreement or default under a previous Allocation 
Agreement; and (ii) the entity has been given a

[[Page 61842]]

timeframe to cure the noncompliance or default, the CDFI Fund will 
consider the Applicant's application under this NOAA during the time 
period given for the entity to cure the noncompliance or default, and 
until such time as the CDFI Fund makes a final determination that the 
entity is in noncompliance or default. Further, if an Affiliate of the 
Applicant is a prior CDFI Fund award recipient or Allocatee and if such 
entity: (i) Has demonstrated noncompliance with a previous assistance 
or award agreement or default under a previous Allocation Agreement; 
and (ii) the entity has been given a timeframe to cure the 
noncompliance or default, then the CDFI Fund will consider the 
Applicant's application under this NOAA during the time period given 
for the entity to cure the noncompliance or default, and until such 
time as the CDFI Fund makes a final determination that the entity is in 
noncompliance or default.
    (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 CY 2021 allocation award announcement. 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 noncompliance or default occurs during the 
time period beginning 12 months prior to the application deadline and 
ending with the CY 2021 allocation award announcement.
    (d) Contacting the CDFI Fund: Accordingly, Applicants that are 
prior award recipients and/or Allocatees under any 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 
Policy and Evaluation (OCPE) through a Service Request initiated in 
AMIS. Requests submitted less than 30 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 and 
CDE certification inquiries Monday through Friday, between the hours of 
9:00 a.m. and 5:00 p.m. ET, starting the date of publication of this 
NOAA through the ``Last date to contact CDFI Fund staff'' specified in 
Table 1. Inquiries received after the ``Last date to contact the CDFI 
Fund staff'' will be responded to after the Allocation Application 
deadline.
    6. 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, accurately responded to a question, but 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 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.
    7. 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 an 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 an 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 45 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 
CDE Certification Application for one or more for-profit Subsidiaries 
within 45 days of the date it receives notification from the CDFI Fund 
of its allocation award.
    8. 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

[[Page 61843]]

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 NMTC 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 NMTC 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).
    9. 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.
    10. Entities that are Bank Enterprise Award Program (BEA Program) 
award recipients: An insured depository institution investor (and its 
Affiliates and Subsidiaries) may not receive an 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 an 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 
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 
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 2021 
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.
    C. NMTC Application Registration (Application Registration): CY 
2021 Allocation Round Applicants are first required to complete and 
save the Application Registration section of the NMTC Allocation 
Application in AMIS by the Application Registration deadline in order 
to be able to submit the remaining sections of the CY 2021 Allocation 
Application by the Application deadline. Applicants that do not 
complete and save the Application Registration by the Application 
Registration deadline, will not be able to subsequently submit a CY 
2021 Allocation Application in AMIS.
    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.
    D. 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 2021 NMTC Application--AMIS Navigation 
Guide for this Allocation Round. 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

[[Page 61844]]

supporting documents, investor letters, and organizational charts) is 
set forth in further detail in the CY 2021 NMTC Application--AMIS 
Navigation Guide for this Allocation Round.
    E. Application submission dates and times: Electronic applications 
must be received by the Allocation Application deadline in Table 1. 
Electronic applications cannot be transmitted or received after 
Allocation Application deadline in Table 1. 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 the Application deadline in Table 1. For details, see the 
instructions provided in the CY 2021 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.
    F. Intergovernmental Review: Not applicable.
    G. Funding Restrictions: For allowable uses of investment proceeds 
related to an 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.
    H. 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; and 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.
    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 extent that, among other things: (i) It has 
identified a set of clearly-defined potential borrowers or investees; 
(ii) it describes the due diligence it will conduct prior to making 
QLICIs to determine whether a QALICB will remain financially viable and 
operational; (iii) 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; (iv) its projected dollar 
volume of NMTC Allocation deployment is supported by its track record 
of deployment; and (v) in the case of an Applicant proposing to 
purchase loans from CDEs, the Applicant will require the CDE selling 
such loans to re-invest the proceeds of the loan sale to provide 
additional products and services to Low-Income Communities.
    (b) Priority Points: In addition, as provided by IRC Sec.  
45D(f)(2), the CDFI Fund will ascribe additional points to entities 
that meet one or both of the statutory priorities. First, the CDFI Fund 
will give up to five 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 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 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 an 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 including areas identified in the Allocation Application such 
as Federally designated Opportunity Zones; (iii) engage with local 
communities regarding investments; and (iv) involve community

[[Page 61845]]

representatives in the governing board and/or advisory board in 
approving investment criteria or decisions.
    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; and 
(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.
    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 
have previously received an award or NMTC Allocation from the CDFI Fund 
through any CDFI Fund program, the CDFI Fund will deduct up to five 
points from the Applicant's 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 October 29, 2019 to the 
application deadline in this NOAA.
    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 NMTC Allocations in 
a manner generally consistent with the representations made in the 
relevant Allocation Application (including, but not limited to, the 
proposed product offerings, business type, fees and markets served 
(i.e. service area) and notable relationships); (b) issued QEIs and 
closed QLICIs in a timely manner; and (c) substantiated a need for 
additional NMTC 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.
    An Applicant will be evaluated more favorably under Part V. of the 
Application to the extent that it clearly explains: (i) how it ensures 
that the NMTCs allocated to QALICBs did not exceed the amount necessary 
to assure QALICB feasibility; (ii) the community outcomes or benefits 
that were generated as a result of the transaction; (iii) source(s) and 
amount(s) of leveraged debt from all sources; (iv) the NMTC-related 
fees and third-party expenses paid by the QALICB or the QALICB's 
Affiliates, including actions taken to control expenses paid by QALICBs 
and investors; and (v) quantifies the value of the investment acquired 
by the QALICBs at the end of the seven-year credit period, to the 
extent the Applicant's past transactions have been structured to allow 
QALICBs to acquire a portion of QLICIs at the end of the seven-year 
credit period. An Applicant will also be evaluated favorably to the 
extent the activities undertaken with the NMTC dollars are consistent 
with the business strategy presented in the relevant Allocation 
Application (e.g. product offerings; business type; fees and markets 
served; notable relationships, etc.).
    4. Management Capacity: In assessing an Applicant's management 
capacity, the 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 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) Identifying and underwriting loans 
and/or equity investments or providing financial counseling and other 
services in Low-Income Communities, if applicable, particularly those 
likely to be served with QLICIs from the Applicant; (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 clearly explains its due diligence 
when providing businesses with financing or investment; demonstrates 
strong financial health and a high likelihood of remaining a going-
concern, including support from the Controlling Entity, if applicable; 
it clearly explains its NMTC fees as well as 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, the 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 NMTC 
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

[[Page 61846]]

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.
    6. Contacting Applicants: As a part of the substantive review 
process, the CDFI Fund may permit the NMTC 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 IRC 
Sec.  45D, the reviewers' scores and the amount of NMTC Allocation 
authority available.
    7. Award Decisions: The CDFI Fund will award allocations in 
descending 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.
    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 NMTC 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 NMTC 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 NMTC 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 NMTC 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 that 
have not committed to investing a minimum of 20 percent of their QLICIs 
in Non-Metropolitan counties.
    E. 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

[[Page 61847]]

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, business type, fees, markets served (i.e. service area), and 
notable relationships) set forth in the Allocation Application(s) 
related to such prior NMTC 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, 
business type, fees, markets served (i.e., service area), and notable 
relationships) 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; submission of inaccurate information; 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.
    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 
NMTC 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 NMTC 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 2021 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 previously been awarded an NMTC Allocation.
    F. Allocation Announcement: 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.
    The CDFI Fund reserves the right, in its sole discretion, to 
rescind an allocation made under this NOAA, should an Allocatee be 
identified as ineligible due to pending or delinquent debt to the 
Federal government in the Do Not Pay database.
    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

[[Page 61848]]

Allocatee is a prior award recipient or Allocatee under any CDFI Fund 
program and if: (i) It has demonstrated noncompliance with a previous 
assistance or award agreement or a default under an Allocation 
Agreement; and (ii) the entity has been given a timeframe to cure the 
noncompliance or default, 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, during the time period given for the entity to cure the 
noncompliance or default and until such time as the CDFI Fund makes a 
final determination that 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 
demonstrated noncompliance under a previous assistance or award 
agreement or default under a previous Allocation Agreement; and (ii) 
the entity has been given a timeframe to cure the noncompliance or 
default, 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, 
during the time period given for the entity to cure the noncompliance 
or default and until such time as the CDFI Fund makes a final 
determination that 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, 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 2021 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 (iii) the default occurs during the time period 
beginning 12 months prior to the application deadline and ending with 
the execution of the CY 2021 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 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 QALICBs, 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 investments 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 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.

[[Page 61849]]

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 the last day to 
contact the CDFI Fund. The CDFI Fund will not respond to phone calls or 
emails concerning the application that are received after the last day 
to contact the CDFI Fund. The CDFI Fund will respond to such phone 
calls or emails after the Allocation Application deadline in Table 1. 
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 James Holmes and Dillon Taylor, 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 2020-1, issued January 4, 2020.

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 L. Harris,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2021-24310 Filed 11-5-21; 8:45 am]
BILLING CODE 4810-05-P