Notice of Information Collection and Request for Public Comment, 58639-58644 [2022-20732]
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Federal Register / Vol. 87, No. 186 / Tuesday, September 27, 2022 / Notices
received may also be viewed at the U.S.
Department of Transportation, 1200
New Jersey Avenue SE, Docket
Operations, M–30, West Building,
Ground Floor, Room W12–140,
Washington, DC 20590–0001 between
9:00 a.m. and 5:00 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT:
ftaferryprograms@dot.gov, or call
Vanessa Williams at (202)-366–4818
SUPPLEMENTARY INFORMATION: Interested
parties are invited to send comments
regarding any aspect of this information
collection, including: (1) the necessity
and utility of the information collection
for the proper performance of the
functions of the FTA; (2) the accuracy
of the estimated burden; (3) ways to
enhance the quality, utility, and clarity
of the collected information; and (4)
ways to minimize the collection burden
without reducing the quality of the
collected information. Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval of this
information collection.
Title: Passenger Ferry Grant Program,
Electric or Low Emitting Ferry Pilot
Program, and Ferry Service for Rural
Communities Program.
OMB Number: 2132–0583.
Background: The Bipartisan
Infrastructure Law, enacted as the
Infrastructure Investment and Jobs Act,
established two new grant programs
Electric or Low-Emitting Ferry Pilot
Program (IIJA § 71102) and Ferry
Service for Rural Communities (IIJA
§ 71103). Funding for these two new
programs was announced on July 11,
2022, in a joint Notice of Funding
Opportunity (NOFO) with FTA’s
existing Passenger Ferry Grant Program
(49 U.S.C. 5307(h)). The Passenger Ferry
Grant Program provides competitive
funding for projects that support
passenger ferry systems in urbanized
areas. The Electric or Low-Emitting
Ferry Pilot Program makes Federal
funds available competitively to projects
that support the purchase of electric or
low-emitting ferry vessels. The Ferry
Service for Rural Communities Program
makes Federal funds available
competitively to States and territories to
ensure basic essential ferry service is
provided to rural areas. FTA will use an
online, web-based grant management
system to collect the following
information:
• Legal name of the applicant (i.e.,
the legal name of the business entity), as
well as any other identities under which
the applicant may be doing business.
• Address, telephone, and email
contact information for the applicant.
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• Legal authority under which the
applicant is established.
• Name and title of the authorized
representative of the applicant (who
will attest to the required certifications).
• DOT may also require the identity
of external parties involved in
preparation of the application,
including outside accountants,
attorneys, or auditors who may be
assisting the business entity that is
applying for assistance under this
program.
• The specific statutory criteria that
the applicant meets for eligibility under
this program. The statute defines
eligible applicants to include
municipalities or community owned
utilities excluding for-profit entities.
Accordingly, DOT will require the
applicant to identify which of these
categories they meet, and how.
• Location where the applicant was
legally established, created, or organized
to do business. This information and
supporting documentation will be
required to demonstrate how the
applicant meets the statutory
requirement to be ‘‘established, created,
or organized in the United States or
under the laws of the United States.’’
• Other identification numbers,
including but not limited to the
Employer/Taxpayer Identification
Number (EIN/TIN), Data Universal
Numbering System (DUNS) number,
Unique Entity Identifier under 2 CFR
part 25, etc. All applicants will be
required to have pre-registered with the
System for Award Management (SAM)
at https://sam.gov/SAM/.
• Description of the applicant’s
business operations, in sufficient detail
to demonstrate how the applicant meets
the statutory requirement as a
municipality or community owned
utility.
• Responses to the evaluation criteria
and selection consideration statements
as outlined in the NOFO.
FTA estimates that it will take
applicants approximately 10 hours to
complete the application process. FTA
estimates that grant recipients will
spend another 4 hours, annually,
submitting post-award reports. The
burden estimate below accounts for the
total amount of effort involved.
Respondents: Public transportation
providers, local governmental entities,
States, and federally recognized Tribes
that operate a public ferry system.
Estimated Average Total Annual
Respondents: 30.
Estimated Average Total Responses:
60.
Estimated Annual Burden Hours: 420.
Estimated Annual Burden per
Respondent: 14 Hours.
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Frequency: Annually.
Nadine Pembleton,
Deputy Associate Administrator, Office of
Administration.
[FR Doc. 2022–20835 Filed 9–26–22; 8:45 am]
BILLING CODE 4910–57–P
DEPARTMENT OF THE TREASURY
Community Development Financial
Institutions Fund
Notice of Information Collection and
Request for Public Comment
Notice and request for public
comment.
ACTION:
The U.S. Department of the
Treasury, as part of a continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act (PRA) of
1995. Currently, the Community
Development Financial Institutions
Fund (CDFI Fund), U.S. Department of
the Treasury, is soliciting comments
concerning the Bank Enterprise Award
Program (BEA Program) Application
(Application). The Application is an
online form submitted through the CDFI
Fund’s Awards Management
Information System (AMIS).
DATES: Written comments must be
received on or before November 28,
2022 to be assured of consideration.
ADDRESSES: Submit your comments via
email to Tanya McInnis, Program
Manager for the Depository Institutions
Initiatives, CDFI Fund at bea@
cdfi.treas.gov.
FOR FURTHER INFORMATION CONTACT:
Tanya McInnis, BEA Program, Program
Manager, CDFI Fund, U.S. Department
of the Treasury, 1500 Pennsylvania
Avenue NW, Washington, DC 20220,
(202) 653–0421 (not a toll-free number).
Other information regarding the CDFI
Fund and its programs may be obtained
on the CDFI Fund website at https://
www.cdfifund.gov. The BEA Program
Application Template, which presents
the questions that will comprise the
online Application, may be obtained
from the BEA Program page of the CDFI
Fund website at https://
www.cdfifund.gov/bea.
SUPPLEMENTARY INFORMATION:
Title: BEA Program Application.
OMB Number: 1559–0005.
Abstract: The purpose of the Bank
Enterprise Award Program (BEA
Program) is to provide an incentive to
SUMMARY:
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Federal Deposit Insurance Corporationinsured (FDIC-insured) depository
institutions to increase their lending,
investment, and financial services to
residents and businesses located in
economically distressed communities,
and provide assistance to Community
Development Financial Institutions
(CDFIs) through grants, stock purchases,
loans, deposits, and other forms of
financial and technical assistance. The
CDFI Fund will make awards through
the BEA Program to FDIC-insured
depository institutions, based upon
such institutions’ demonstrated increase
of qualified activities, as reported in the
Application. The Application will
solicit information concerning:
applicants’ eligibility to participate in
the BEA Program; the increase in total
dollar value of applicants’ qualified
activities; impact of qualified activities;
and appropriate supporting
documentation. The questions that the
Application contains, and the
information generated thereby, will
enable the CDFI Fund to evaluate
applicants’ activities and determine the
extent of applicants’ eligibility for BEA
Program Awards.
Current Actions: Extension without
change of currently approved collection.
Type of Review: Regular.
Affected Public: Businesses or other
for-profit institutions, non-profit
entities, and State, local and Tribal
entities participating in CDFI Fund
programs.
Estimated Number of Respondents:
180.
Frequency of Response: Annually.
Estimated Total Number of Annual
Responses: 180.
Estimated Annual Time per
Respondent including optional
questions: 60 hours.
Estimated Total Annual Burden
Hours: 10,800.
Request for Comments: Comments
submitted in response to this Notice
will be summarized and/or included in
the request for Office of Management
and Budget approval. All comments will
become a matter of public record and
may be published on the CDFI Fund
website at https://www.cdfifund.gov.
The CDFI Fund is seeking: (a) specific
input on the BEA Program Application;
and (b) general input on other BEA
Program-related topics and
considerations. Commentators should
Activity type
17:51 Sep 26, 2022
A. BEA Program Application
Comments concerning the
Application are invited on: (a) whether
the collection of information is
necessary for the proper performance of
the functions of the agency, including
whether the information shall have
practical utility; (b) the accuracy of the
agency’s estimate of the burden of the
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of technology; and (e) estimates of
capital or start-up costs and costs of
operation, maintenance, and purchase
of services required to provide
information.
In addition, the CDFI Fund requests
comments in response to the following
general questions about the BEA
Program Application:
1. Is the data and information that is
proposed to be collected by the BEA
Program Application necessary and
appropriate for the CDFI Fund to
consider for the purpose of making
award decisions?
2. In general, does the data and
information requested in the BEA
Program Application allow an applicant
to demonstrate its lending, investment
and service activities in BEA Program
Distressed Communities or to CDFIs?
3. Are certain data fields, questions or
tables redundant or unnecessary?
4. Should any data fields, questions or
tables be added to ensure collection of
relevant information?
5. Are there any data fields, questions
or tables that are particularly difficult or
burdensome to answer? If so, please be
specific as to which questions or tables
Abbreviation
Affordable Housing Development Loans
and Project Investments.
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ensure that their comments are clearly
labeled in order to distinguish those
related to: (a) the BEA Program
Application or, (b) other BEA Program
related topics and considerations. The
Application may be obtained on BEA
Program page of the CDFI Fund’s
website at https://www.cdfifund.gov/
programs-training/Programs/bank_
enterprise_award/Pages/applystep.aspx#step1.
Commentators are encouraged to
consider, at a minimum, the following
topics:
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and describe why they are difficult or
burdensome.
6. The CDFI Fund considers the safety
and soundness of BEA Program
Applicants in making award decisions.
Currently, through Memorandums of
Understanding with federal regulators,
the CDFI Fund obtains safety and
soundness information directly from the
Federal Reserve Board, Federal Deposit
Insurance Corporation and the Office of
the Comptroller of the Currency. The
CDFI Fund is considering requiring
Applicants to report on their safety and
soundness by requesting that they
provide information on their most
recent independent audit, their most
recent Community Reinvestment Act
(CRA) Rating, and information on any
enforcement actions. The collection of
this information from Applicants would
be used to consider an Applicant’s
eligibility before the CDFI Fund receives
information from federal regulators.
a. How much of a burden will the
collection of this information be for
Applicants?
b. Are there any reasons that the CDFI
Fund should not request this
information from Applicants? If yes,
please describe.
c. Is there anything else the CDFI
Fund should consider? If yes, please
describe.
7. The CDFI Fund is considering
adding the following text entry fields in
order to improve the quality of impact
data collected in the BEA Program
Application. This information will
allow the CDFI Fund to standardize and
effectively report quantitative and
qualitative social impacts of program
related investments.
Business Description: Applicants will
be required to provide a brief
description of the entity or business that
received the loan or investments. For
example, for Commercial Loans and
Investments, if an Applicant provided a
commercial real estate loan to a widget
manufacturing business so that it could
purchase a warehouse in a distressed
community, the Applicant would
describe the business, using this text
entry field as ‘Commercial Real Estate
Loan to Widget Manufacturing Business
for Warehouse Purchase.’ If
implemented, there will be character
limits and the CDFI Fund will provide
additional examples.
Current impact reporting guidance
Total number of affordable units developed or rehabilitated as part of the
transaction.
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Proposed enhancement
Picklist: Single Family; Multi-Family.
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Activity type
Abbreviation
Proposed enhancement
Commercial Real Estate Loans and
Project Investments.
CRE
Small Business Loans and Project Investments.
SBL
Financial Services .....................................
FS
Number of accounts opened, checks
cashed, etc.
Targeted Financial Services .....................
TFS
Targeted Savings Products .......................
TSP
Community Services .................................
CS
Number of accounts opened, checks
cashed, etc.
Number of products developed, sold or
opened.
Number of individuals who received the
identified service.
Impact: A further description of the
impact of the loan, investment or
service activity would be required. This
will help to contextualize the numerical
impact data currently collected.
Currently, Applicants are only required
to provide numerical impact
information for certain activity types.
This new text entry field would add a
picklist or text entry box which would
depend on the activity type. Refer to the
table below for examples of impact as it
relates to specific BEA Qualified
Activities.
Impact Reporting Enhancements:
a. Will reporting this information
significantly increase the number of
hours spent completing the BEA
Program Application?
b. Are there any reasons that the CDFI
Fund should not collect this
information? If yes, what are they?
c. Is there any additional information
or data that demonstrates the impact of
program related investments that the
CDFI Fund should consider? If yes, list
and describe them.
8. The CDFI Fund is considering
adding the following fields to collect
Total number of commercial real estate
properties acquired, developed or rehabilitated.
Total number of full-time equivalent jobs
created or maintained by borrower.
basic information on the affordability of
financial products reported to the CDFI
Fund in the BEA Program Application
for award consideration. This data will
be used to perform future analyses to
better understand the affordability of
program related lending and may inform
future policy considerations. For BEA
Qualified Activities that are loans,
Applicants will be asked to provide:
Interest Rate, Interest Type, and Term:
Applicants will input the interest rate,
select the interest type as either ‘Fixed’
or ‘Variable,’ and provide the Term as
the number of months. These fields will
provide important insight into the
pricing and terms offered to borrowers
that receive loans from BEA Program
Applicants.
Origination Fees and Points:
Applicants will input this numerically
as basis points. This field will help the
CDFI Fund to better understand the
overall cost of loans made by BEA
Program Applicants.
a. How much of a burden will the
collection of this information be for
Applicants?
Picklist—Acquisition; Development; Rehabilitation.
Picklist—Working Capital; Business Expansion; Business Startup; Fixed Capital; Equipment; Other.
Picklist—Accounts Opened; Checks
Cashed; New Branch, New ATM,
Other.
Picklist—Accounts Opened; Checks
Cashed; Other.
Text box—Describe the Product Type.
Text box—Describe the Type of Community Services Provided.
b. Are there any reasons that the CDFI
Fund should not collect this
information? If yes, what are they?
For all BEA Qualified Activities:
c. Is there any additional information
or data that demonstrates the
affordability of program related loans or
investments that the CDFI Fund should
consider? If yes, list and describe them.
B. Other BEA Program-Related Topics
and Considerations
Commentators should clearly
distinguish their comments related to
this section when providing their
responses.
1. BEA Program Categories,
Subcategories and Qualified Activities
Definitions
The BEA Program defines the
Qualified Activities, Categories and
Subcategories in the BEA Program
Interim Rule dated August 10, 2016 (12
CFR 1806). These definitions are also
provided below:
Category, subcategory, activity type,
and other related terms
Interim rule definition
CDFI Related Activities ........................
Equity Investment .................................
Means Equity Investments, Equity-Like Loans, and CDFI Support Activities.
Means financial assistance provided by an Applicant or its Subsidiary to a CDFI, which CDFI meets
such criteria as set forth in the applicable NOFA, in the form of a grant, a stock purchase, a purchase of a partnership interest, a purchase of a limited liability company membership interest, or any
other investment deemed to be an Equity Investment by the CDFI Fund.
Means a loan provided by an Applicant or its Subsidiary to a CDFI, and made on such terms that it has
characteristics of an Equity Investment that meets such criteria as set forth in the applicable NOFA.
Means assistance provided by an Applicant or its Subsidiary to a CDFI that meets criteria set forth by
the CDFI Fund in the applicable NOFA and that is Integrally Involved in a Distressed Community, in
the form of the origination of a loan, Technical Assistance, or deposits, as further specified in the applicable NOFA.
Means: (1) Consumer Loans; or (2) Commercial Loans and Investments.
Equity-Like Loan ...................................
CDFI Support Activity ...........................
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Current impact reporting guidance
58641
Distressed Community Financing Activities.
Consumer Loans ..................................
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Means the following lending activity types: Affordable Housing Loans; Education Loans; Home Improvement Loans; and Small Dollar Consumer Loans.
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Category, subcategory, activity type,
and other related terms
Interim rule definition
Affordable Housing Loan ......................
Means origination of a loan to finance the purchase or improvement of the borrower’s primary residence, and that is secured by such property, where such borrower is an Eligible Resident who meets
Low- and Moderate-Income requirements. Affordable Housing Loan may also refer to second (or otherwise subordinated) liens or ‘‘soft second’’ mortgages and other similar types of down payment assistance loans, but may not necessarily be secured by such property originated for the purpose of facilitating the purchase or improvement of the borrower’s primary residence, where such borrower is
an Eligible Resident who meets Low- and Moderate-Income requirements.
Means an advance of funds to a student who is an Eligible Resident who meets Low- and Moderate-Income requirements for the purpose of financing a college or vocational education.
Means an advance of funds, either unsecured or secured by a one-to-four family residential property,
the proceeds of which are used to improve the borrower’s primary residence, where such borrower is
an Eligible Resident who meets Low- and Moderate-Income requirements.
Means affordable consumer lending products that serve as available alternatives in the marketplace for
individuals who are Eligible Residents who meet Low- and Moderate-Income requirements and meet
criteria further specified in the applicable NOFA.
Means the following lending types: Affordable Housing Development Loans and related Project Investments; Small Business Loans and related Project Investments, and Commercial Real Estate Loans
and related Project Investments.
Means origination of a loan to finance the acquisition, construction, and/or development of single- or
multifamily residential real property, where at least 60% of the units in such property are affordable,
as may be defined in the applicable NOFA, to Eligible Residents who meet Low- and Moderate-Income requirements.
Means an origination of a loan used for commercial or industrial activities (other than an Affordable
Housing Loan, Affordable Housing Development Loan, Commercial Real Estate Loan, Home Improvement Loan) to a business or farm that meets the size eligibility standards of the Small Business
Administration’s Development Company or Small Business Investment Company programs (13 CFR
121.301) and is located in a Distressed Community.
Means an origination of a loan (other than an Affordable Housing Development Loan or Affordable
Housing Loan) that is secured by real estate and used to finance the acquisition or rehabilitation of a
building in a Distressed Community, or the acquisition, construction and or development of property
in a Distressed Community, used for commercial purposes.
Means the following activities: Deposit Liabilities; Financial Services; Community Services; Targeted Financial Services; and Targeted Retail Savings/Investment Products.
Means time or savings deposits or demand deposits. Any such deposit must be accepted from Eligible
Residents at the offices of the Applicant or of the Subsidiary of the Applicant and located in the Distressed Community. Deposit Liabilities may only include deposits held by individuals in transaction
accounts (e.g., demand deposits, negotiable order of withdrawal accounts, automated transfer service accounts, and telephone or preauthorized transfer accounts) or non-transaction accounts (e.g.,
money market deposit accounts, other savings deposits, and all time deposits), as defined by the Appropriate Federal Banking Agency.
Means check cashing, providing money orders and certified checks, automated teller machines (ATM),
safe deposit boxes, new branches, and other comparable services as may be specified by the CDFI
Fund in the applicable NOFA, that are provided by the Applicant to Eligible Residents or enterprises
that are Integrally Involved in the Distressed Community.
Means the following forms of assistance provided by officers, employees or agents (contractual or otherwise) of the Applicant:
(1) Provision of Technical Assistance and financial education to Eligible Residents regarding managing their personal finances;
(2) Provision of Technical Assistance and consulting services to newly formed small businesses
and nonprofit organizations located in the Distressed Community;
(3) Provision of Technical Assistance and financial education to, or servicing the loans of, homeowners who are Eligible Residents and meet Low- and Moderate-Income requirements; and
(4) Other services provided to Eligible Residents who meet Low- and Moderate-Income requirements or enterprises that are Integrally Involved in a Distressed Community, as deemed appropriate by the CDFI Fund, and other comparable services as may be specified by the CDFI Fund
in the applicable NOFA.
Education Loan ....................................
Home Improvement Loan .....................
Small Dollar Consumer Loan ...............
Commercial Loans and Investments ....
Affordable Housing Development Loan
Small Business Loan ............................
Commercial Real Estate Loan .............
Service Activities ..................................
Deposit Liabilities .................................
Financial Services ................................
Community Services ............................
Other Related Terms:
Targeted Financial Services .................
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Targeted Retail Savings/Investment
Products.
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Means ETAs, IDAs, and such other banking products targeted to Eligible Residents, as may be specified by the CDFI Fund in the applicable NOFA.
Means certificates of deposit, mutual funds, life insurance, and other similar savings or investment vehicles targeted to Eligible Residents, as may be specified by the CDFI Fund in the applicable NOFA.
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58643
Category, subcategory, activity type,
and other related terms
Interim rule definition
Electronic Transfer Account (ETA) 1 ....
Means an account that meets the following requirements, and with respect to which the Applicant has
satisfied the requirements: (1) Be an individually owned account at a Federally insured financial institution; (2) Be available to any individual who receives a Federal benefit, wage, salary, or retirement
payment; (3) Accept electronic Federal benefit, wage, salary, and retirement payments and such
other deposits as a financial institution agrees to permit; (4) Be subject to a maximum price of $3.00
per month; (5) Have a minimum of four cash withdrawals and four balance inquiries per month, to be
included in the monthly fee, through: (i) The financial institution’s proprietary (on-us) automated teller
machines (ATMs); (ii) Over-the-counter transactions at the main office or a branch of the financial institution; or (iii) Any combination of on-us ATM access and over-the-counter access at the option of
the financial institution; (6) Provide the same consumer protections that are available to other account holders at the financial institution, including, for accounts that provide electronic access, Regulation E (12 CFR part 205) protections regarding disclosure, limitations on liability, procedures for reporting lost or stolen cards, and procedures for error resolution; (7) For financial institutions that are
members of an on-line point-of-sale (POS) network, allow on-line POS purchases, cash withdrawals,
and cash back with purchases at no additional charge by the financial institution offering the ETA; (8)
Require no minimum balance, except as required by Federal or State law; (9) At the option of the financial institution, be either an interest-bearing or a non-interest-bearing account; and (10) Provide a
monthly statement.
Means a special savings account that matches the deposits of Eligible Residents who meet Low- and
Moderate-Income requirements individuals and that enables such individuals to save money for a
particular financial goal including, but not limited to, and as determined by the CDFI Fund: buying a
home, paying for post-secondary education, or starting or expanding a small business.
Means the provision of consulting services, resources, training, and other nonmonetary support relating
to an organization, individual, or operation of a trade or business, as may be specified by the CDFI
Fund in the applicable NOFA.
Individual Development Account (or
IDA) 2.
Technical Assistance 3 ..........................
1 Included
in the definition of Targeted Financial Securities.
2 Ibid.
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3 Included
in the definitions of: CDFI Support Activity and Community Services.
a. New Qualified Activities
(1) Are there any loan, investment or
service activities not currently
considered BEA Program Qualified
Activities that the CDFI Fund should
consider adding? If so, indicate what the
activity is, describe it, and explain why
the CDFI Fund should consider it. Also,
describe the benefits of the activity to
CDFIs, residents or businesses in
Distressed Communities.
(2) The CDFI Fund does not currently
have a specific Qualified Activity type
for working capital or equipment loans.
These types of loans are typically
reported as Small Business Loans if the
borrower meets the size eligibility
standards. Should the CDFI Fund
consider introducing a new Qualified
Activity type specifically for working
capital or equipment loans for
businesses located in Distressed
Communities that do not meet the
criteria for a Small Business Loans?
Please explain why or why not.
(3) The CDFI Fund does not currently
have specific guidance for reverse
mortgages. A reverse mortgage is a
mortgage loan available to homeowners
62 years of age and older, usually
secured over a residential property that
enables the borrower to access the
unencumbered value of the property.
Should the CDFI Fund consider
introducing reverse mortgages as a new
Qualified Activity type or consider
revising the definition of Affordable
Housing Loan to include reverse
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17:51 Sep 26, 2022
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mortgages? Please explain why or why
not.
b. Existing Qualified Activities
(1) Are there any loans, investments,
or service activities that are currently
considered BEA Program Qualified
Activities for which the CDFI Fund
should consider updates to the
definition? If so, indicate the Qualified
Activity and explain why the CDFI
Fund should consider revising the
definition.
(2) Are there any loans, investments,
or service activities that are currently
considered BEA Program Qualified
Activities that the CDFI Fund should
consider eliminating? If so, indicate the
Qualified Activity and explain why the
CDFI Fund should consider eliminating
it.
(3) For Small Business Loans, which
are Qualified Activities in the
Commercial Loans and Investments subcategory of the Distressed Community
Financing Activities category, the CDFI
Fund instructs Applicants to use the
size eligibility standards adopted by the
U.S. Small Business Administration’s
Development Company or Small
Business Investment Company programs
(13 CFR 121.01) for determining
whether a loan to a borrower is eligible
to be reported as this Qualified Activity.
Is there any other criteria the CDFI Fund
should consider for determining
whether a loan to a borrower is eligible
to be reported as a Small Business Loan?
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If yes, please describe the criteria and
explain why the CDFI Fund should
consider it.
(4) The CDFI Fund currently values
the administrative cost of providing
certain Financial Services using the
following per unit values:
$100.00 per account for Targeted
Financial Services, including safe
transaction accounts, youth transaction
accounts, Electronic Transfer Accounts
and Individual Development Accounts;
$50.00 per account for checking and
savings accounts that do not meet the
definition of Targeted Financial
Services; $5.00 per check cashing
transaction; $50,000 per new ATM
installed at a location in a Distressed
Community; and $500,000 per new
retail bank branch office opened in a
Distressed Community, including
school-based bank branches approved
by the Applicant’s Federal bank
regulator.
Should the CDFI Fund consider
updates to the valuation of these
administrative costs? If so, indicate the
Financial Service, suggested value, and
explain why the CDFI Fund should
consider revising the value.
2. Award Selection Process
Section 1806.404 (b), (c), and (d) of
the Interim Rule describes the award
selection process if insufficient funds
are available to cover estimated awards
for which Applicants are eligible,
priority of awards, and calculating
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Federal Register / Vol. 87, No. 186 / Tuesday, September 27, 2022 / Notices
actual award amounts. Applicants are
ranked based on whether the Applicant
is a CDFI or a non-CDFI, and prioritized
in each category of BEA Qualified
Activities. Currently, one overall
maximum award amount has been
determined for an Applicant’s single
BEA Program award, despite the
number of categories the Applicant is
eligible to receive an award for. Award
selections within each BEA category are
based on an Applicant’s relative ranking
within each such category, subject to the
availability of funds and any established
maximum dollar amount of total awards
that may be awarded for the Distressed
Community Financing Activities
category of Qualified Activities, as
determined by the CDFI Fund.
jspears on DSK121TN23PROD with NOTICES
a. Award Amount
(1) Should the CDFI Fund consider
awarding eligible applicants who
successfully demonstrate increases in
more than one BEA category a higher
single BEA Program award amount than
Applicants who demonstrate an
increase in only one BEA category, if
both are eligible for the maximum
award amount? If yes, explain what
should be considered in determining the
proportion of the increased award
amount. If no, explain why not.
(2) Should the CDFI Fund establish a
minimum dollar amount and/or a
maximum dollar amount that may be
awarded for the CDFI Related Activities
category? Explain why or why not.
(3) Should the CDFI Fund establish a
maximum dollar amount that may be
awarded for Distressed Community
Financing Activities category? Explain
why or why not.
(4) Should the CDFI Fund establish a
maximum dollar amount that may be
awarded for the Service Activities
category? Explain why or why not.
(5) Should the CDFI Fund determine
actual award amounts by a method
other than the existing formulaic award
calculation? If yes, please describe the
method and note what benefits are
offered to Applicants, residents and
businesses in Distressed Communities,
and/or U.S. taxpayers by implementing
this method. Also, indicate if/how the
method addresses the following factors
noted in Section 1834a(h)(1)(C) of the
BEA Statute: degree of difficulty in
carrying out activities, community
impact, degree of innovative methods
for meeting community needs, leverage
of qualified activity amounts, total asset
size of the Applicant, new entrance to
providing services in a Distressed
Community, need for subsidy, and
extent of distress in a community.
VerDate Sep<11>2014
17:51 Sep 26, 2022
Jkt 256001
b. Award Calculation
The estimated BEA Program award
calculation is the year-over-year
increase in Qualified Activities from the
Baseline to the Assessment Period
prioritized based on CDFI certification
status and CRA asset size, and
multiplied by an award percentage
based on the Category, Sub-category and
Qualified Activity type.
(1) Is there any additional criteria that
the CDFI Fund should consider in the
estimated BEA Program award
calculation?
3. Cap on Qualified Activity Amount
Current policy states that the value of
a Qualified Activity for purposes of
determining a BEA Program Award
shall not exceed $10 million in the case
of Commercial Real Estate Loans or any
CDFI Related Activities (i.e., the total
principal amount of the transaction
must be $10 million or less to be
considered a Qualified Activity).
However, the CDFI Fund may consider
transactions with a total principal value
of over $10 million on a case by case
basis. In such cases, Applicants must
attach a Community Benefit Statement,
which is a narrative statement that
describes the community benefit of
transactions over $10 million for the
CDFI Fund’s consideration.
a. What information should the
Applicant provide to aid the CDFI Fund
in assessing the community benefit of
transactions over $10 million?
4. Integral Involvement
The Interim Rule defines CDFI
Support Activity as assistance provided
by an Applicant or its Subsidiary to a
Certified CDFI that meets the Integral
Involvement criteria set forth by the
CDFI Fund in the applicable NOFA.
Commenters should note that Integral
Involvement is a statutory program
requirement.
The most recent BEA Program NOFA
defines Integrally Involved as:
Scenario I: Having provided at least
10% of the number of its financial
transactions or dollars transacted (e.g.,
loans or equity investments) in one or
more Distressed Communities in each of
the three calendar years preceding the
date of the applicable NOFA; or 10% of
the number of its Development Service
Activities (as defined in 12 CFR
1805.104) or value of the administrative
cost of providing such services in one or
more Distressed Communities in each of
the three calendar years preceding the
date of the applicable NOFA;
Scenario II: Transacted at least 25% of
the number of its financial transactions
or dollars transacted (e.g., loans or
PO 00000
Frm 00172
Fmt 4703
Sfmt 4703
equity investments) in one or more
Distressed Communities in at least one
of the three calendar years preceding the
date of the applicable NOFA or
transacted at least 25% of the number of
its Development Service Activities or
value of the administrative cost of
providing such services in one or more
Distressed Communities in at least one
of the three calendar years preceding the
date of the applicable NOFA;
Scenario III: Demonstrating that it has
attained at least 10% of market share for
a particular product in one or more
Distressed Communities in at least one
of the three calendar years preceding the
date of the applicable NOFA;
Scenario IV: At least 25% of the CDFI
Partner’s physical locations (e.g., offices
or branches) are located in one or more
Distressed Communities where it
provided financial transactions or
Development Service Activities during
the one calendar year preceding the date
of the NOFA.
a. Should the current definition of
Integrally Involved be revised or
replaced? If yes, how should the CDFI
Fund revise the Integrally Involved
definition or what should the CDFI
Fund replace the term with?
b. Are there any other factors the CDFI
Fund should consider when
determining an updated definition of
Integrally Involved? If yes, what are
they?
Authority: 12 U.S.C. 1834a, 4703,
4713, 4717; 12 CFR part 1806.
Jodie L. Harris,
Director, Community Development Financial
Institutions Fund.
[FR Doc. 2022–20732 Filed 9–26–22; 8:45 am]
BILLING CODE 4810–70–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Reverse Like-Kind
Exchanges
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:
The Internal Revenue Service,
as part of its continuing effort to reduce
paperwork and respondent burden,
invites the general public and other
Federal agencies to take this
opportunity to comment on continuing
information collections, as required by
the Paperwork Reduction Act of 1995.
The IRS is soliciting comments
concerning reverse like-kind exchanges.
SUMMARY:
E:\FR\FM\27SEN1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 186 (Tuesday, September 27, 2022)]
[Notices]
[Pages 58639-58644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-20732]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Notice of Information Collection and Request for Public Comment
ACTION: Notice and request for public comment.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of the Treasury, as part of a continuing
effort to reduce paperwork and respondent burden, invites the general
public and other federal agencies to take this opportunity to comment
on proposed and/or continuing information collections, as required by
the Paperwork Reduction Act (PRA) of 1995. Currently, the Community
Development Financial Institutions Fund (CDFI Fund), U.S. Department of
the Treasury, is soliciting comments concerning the Bank Enterprise
Award Program (BEA Program) Application (Application). The Application
is an online form submitted through the CDFI Fund's Awards Management
Information System (AMIS).
DATES: Written comments must be received on or before November 28, 2022
to be assured of consideration.
ADDRESSES: Submit your comments via email to Tanya McInnis, Program
Manager for the Depository Institutions Initiatives, CDFI Fund at
[email protected].
FOR FURTHER INFORMATION CONTACT: Tanya McInnis, BEA Program, Program
Manager, CDFI Fund, U.S. Department of the Treasury, 1500 Pennsylvania
Avenue NW, Washington, DC 20220, (202) 653-0421 (not a toll-free
number). Other information regarding the CDFI Fund and its programs may
be obtained on the CDFI Fund website at https://www.cdfifund.gov. The
BEA Program Application Template, which presents the questions that
will comprise the online Application, may be obtained from the BEA
Program page of the CDFI Fund website at https://www.cdfifund.gov/bea.
SUPPLEMENTARY INFORMATION:
Title: BEA Program Application.
OMB Number: 1559-0005.
Abstract: The purpose of the Bank Enterprise Award Program (BEA
Program) is to provide an incentive to
[[Page 58640]]
Federal Deposit Insurance Corporation-insured (FDIC-insured) depository
institutions to increase their lending, investment, and financial
services to residents and businesses located in economically distressed
communities, and provide assistance to Community Development Financial
Institutions (CDFIs) through grants, stock purchases, loans, deposits,
and other forms of financial and technical assistance. The CDFI Fund
will make awards through the BEA Program to FDIC-insured depository
institutions, based upon such institutions' demonstrated increase of
qualified activities, as reported in the Application. The Application
will solicit information concerning: applicants' eligibility to
participate in the BEA Program; the increase in total dollar value of
applicants' qualified activities; impact of qualified activities; and
appropriate supporting documentation. The questions that the
Application contains, and the information generated thereby, will
enable the CDFI Fund to evaluate applicants' activities and determine
the extent of applicants' eligibility for BEA Program Awards.
Current Actions: Extension without change of currently approved
collection.
Type of Review: Regular.
Affected Public: Businesses or other for-profit institutions, non-
profit entities, and State, local and Tribal entities participating in
CDFI Fund programs.
Estimated Number of Respondents: 180.
Frequency of Response: Annually.
Estimated Total Number of Annual Responses: 180.
Estimated Annual Time per Respondent including optional questions:
60 hours.
Estimated Total Annual Burden Hours: 10,800.
Request for Comments: Comments submitted in response to this Notice
will be summarized and/or included in the request for Office of
Management and Budget approval. All comments will become a matter of
public record and may be published on the CDFI Fund website at https://www.cdfifund.gov.
The CDFI Fund is seeking: (a) specific input on the BEA Program
Application; and (b) general input on other BEA Program-related topics
and considerations. Commentators should ensure that their comments are
clearly labeled in order to distinguish those related to: (a) the BEA
Program Application or, (b) other BEA Program related topics and
considerations. The Application may be obtained on BEA Program page of
the CDFI Fund's website at https://www.cdfifund.gov/programs-training/Programs/bank_enterprise_award/Pages/apply-step.aspx#step1.
Commentators are encouraged to consider, at a minimum, the
following topics:
A. BEA Program Application
Comments concerning the Application are invited on: (a) whether the
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of technology; and (e) estimates
of capital or start-up costs and costs of operation, maintenance, and
purchase of services required to provide information.
In addition, the CDFI Fund requests comments in response to the
following general questions about the BEA Program Application:
1. Is the data and information that is proposed to be collected by
the BEA Program Application necessary and appropriate for the CDFI Fund
to consider for the purpose of making award decisions?
2. In general, does the data and information requested in the BEA
Program Application allow an applicant to demonstrate its lending,
investment and service activities in BEA Program Distressed Communities
or to CDFIs?
3. Are certain data fields, questions or tables redundant or
unnecessary?
4. Should any data fields, questions or tables be added to ensure
collection of relevant information?
5. Are there any data fields, questions or tables that are
particularly difficult or burdensome to answer? If so, please be
specific as to which questions or tables and describe why they are
difficult or burdensome.
6. The CDFI Fund considers the safety and soundness of BEA Program
Applicants in making award decisions. Currently, through Memorandums of
Understanding with federal regulators, the CDFI Fund obtains safety and
soundness information directly from the Federal Reserve Board, Federal
Deposit Insurance Corporation and the Office of the Comptroller of the
Currency. The CDFI Fund is considering requiring Applicants to report
on their safety and soundness by requesting that they provide
information on their most recent independent audit, their most recent
Community Reinvestment Act (CRA) Rating, and information on any
enforcement actions. The collection of this information from Applicants
would be used to consider an Applicant's eligibility before the CDFI
Fund receives information from federal regulators.
a. How much of a burden will the collection of this information be
for Applicants?
b. Are there any reasons that the CDFI Fund should not request this
information from Applicants? If yes, please describe.
c. Is there anything else the CDFI Fund should consider? If yes,
please describe.
7. The CDFI Fund is considering adding the following text entry
fields in order to improve the quality of impact data collected in the
BEA Program Application. This information will allow the CDFI Fund to
standardize and effectively report quantitative and qualitative social
impacts of program related investments.
Business Description: Applicants will be required to provide a
brief description of the entity or business that received the loan or
investments. For example, for Commercial Loans and Investments, if an
Applicant provided a commercial real estate loan to a widget
manufacturing business so that it could purchase a warehouse in a
distressed community, the Applicant would describe the business, using
this text entry field as `Commercial Real Estate Loan to Widget
Manufacturing Business for Warehouse Purchase.' If implemented, there
will be character limits and the CDFI Fund will provide additional
examples.
----------------------------------------------------------------------------------------------------------------
Current impact
Activity type Abbreviation reporting guidance Proposed enhancement
----------------------------------------------------------------------------------------------------------------
Affordable Housing Development Loans AHD Total number of Picklist: Single
and Project Investments. affordable units Family; Multi-Family.
developed or
rehabilitated as part
of the transaction.
[[Page 58641]]
Commercial Real Estate Loans and CRE Total number of Picklist--Acquisition;
Project Investments. commercial real estate Development;
properties acquired, Rehabilitation.
developed or
rehabilitated.
Small Business Loans and Project SBL Total number of full- Picklist--Working
Investments. time equivalent jobs Capital; Business
created or maintained Expansion; Business
by borrower. Startup; Fixed
Capital; Equipment;
Other.
Financial Services.................. FS Number of accounts Picklist--Accounts
opened, checks cashed, Opened; Checks Cashed;
etc. New Branch, New ATM,
Other.
Targeted Financial Services......... TFS Number of accounts Picklist--Accounts
opened, checks cashed, Opened; Checks Cashed;
etc. Other.
Targeted Savings Products........... TSP Number of products Text box--Describe the
developed, sold or Product Type.
opened.
Community Services.................. CS Number of individuals Text box--Describe the
who received the Type of Community
identified service. Services Provided.
----------------------------------------------------------------------------------------------------------------
Impact: A further description of the impact of the loan, investment
or service activity would be required. This will help to contextualize
the numerical impact data currently collected. Currently, Applicants
are only required to provide numerical impact information for certain
activity types. This new text entry field would add a picklist or text
entry box which would depend on the activity type. Refer to the table
below for examples of impact as it relates to specific BEA Qualified
Activities.
Impact Reporting Enhancements:
a. Will reporting this information significantly increase the
number of hours spent completing the BEA Program Application?
b. Are there any reasons that the CDFI Fund should not collect this
information? If yes, what are they?
c. Is there any additional information or data that demonstrates
the impact of program related investments that the CDFI Fund should
consider? If yes, list and describe them.
8. The CDFI Fund is considering adding the following fields to
collect basic information on the affordability of financial products
reported to the CDFI Fund in the BEA Program Application for award
consideration. This data will be used to perform future analyses to
better understand the affordability of program related lending and may
inform future policy considerations. For BEA Qualified Activities that
are loans, Applicants will be asked to provide:
Interest Rate, Interest Type, and Term: Applicants will input the
interest rate, select the interest type as either `Fixed' or
`Variable,' and provide the Term as the number of months. These fields
will provide important insight into the pricing and terms offered to
borrowers that receive loans from BEA Program Applicants.
Origination Fees and Points: Applicants will input this numerically
as basis points. This field will help the CDFI Fund to better
understand the overall cost of loans made by BEA Program Applicants.
a. How much of a burden will the collection of this information be
for Applicants?
b. Are there any reasons that the CDFI Fund should not collect this
information? If yes, what are they?
For all BEA Qualified Activities:
c. Is there any additional information or data that demonstrates
the affordability of program related loans or investments that the CDFI
Fund should consider? If yes, list and describe them.
B. Other BEA Program-Related Topics and Considerations
Commentators should clearly distinguish their comments related to
this section when providing their responses.
1. BEA Program Categories, Subcategories and Qualified Activities
Definitions
The BEA Program defines the Qualified Activities, Categories and
Subcategories in the BEA Program Interim Rule dated August 10, 2016 (12
CFR 1806). These definitions are also provided below:
------------------------------------------------------------------------
Category, subcategory,
activity type, and other Interim rule definition
related terms
------------------------------------------------------------------------
CDFI Related Activities...... Means Equity Investments, Equity-Like
Loans, and CDFI Support Activities.
Equity Investment............ Means financial assistance provided by an
Applicant or its Subsidiary to a CDFI,
which CDFI meets such criteria as set
forth in the applicable NOFA, in the
form of a grant, a stock purchase, a
purchase of a partnership interest, a
purchase of a limited liability company
membership interest, or any other
investment deemed to be an Equity
Investment by the CDFI Fund.
Equity-Like Loan............. Means a loan provided by an Applicant or
its Subsidiary to a CDFI, and made on
such terms that it has characteristics
of an Equity Investment that meets such
criteria as set forth in the applicable
NOFA.
CDFI Support Activity........ Means assistance provided by an Applicant
or its Subsidiary to a CDFI that meets
criteria set forth by the CDFI Fund in
the applicable NOFA and that is
Integrally Involved in a Distressed
Community, in the form of the
origination of a loan, Technical
Assistance, or deposits, as further
specified in the applicable NOFA.
Distressed Community Means: (1) Consumer Loans; or (2)
Financing Activities. Commercial Loans and Investments.
Consumer Loans............... Means the following lending activity
types: Affordable Housing Loans;
Education Loans; Home Improvement Loans;
and Small Dollar Consumer Loans.
[[Page 58642]]
Affordable Housing Loan...... Means origination of a loan to finance
the purchase or improvement of the
borrower's primary residence, and that
is secured by such property, where such
borrower is an Eligible Resident who
meets Low- and Moderate-Income
requirements. Affordable Housing Loan
may also refer to second (or otherwise
subordinated) liens or ``soft second''
mortgages and other similar types of
down payment assistance loans, but may
not necessarily be secured by such
property originated for the purpose of
facilitating the purchase or improvement
of the borrower's primary residence,
where such borrower is an Eligible
Resident who meets Low- and Moderate-
Income requirements.
Education Loan............... Means an advance of funds to a student
who is an Eligible Resident who meets
Low- and Moderate-Income requirements
for the purpose of financing a college
or vocational education.
Home Improvement Loan........ Means an advance of funds, either
unsecured or secured by a one-to-four
family residential property, the
proceeds of which are used to improve
the borrower's primary residence, where
such borrower is an Eligible Resident
who meets Low- and Moderate-Income
requirements.
Small Dollar Consumer Loan... Means affordable consumer lending
products that serve as available
alternatives in the marketplace for
individuals who are Eligible Residents
who meet Low- and Moderate-Income
requirements and meet criteria further
specified in the applicable NOFA.
Commercial Loans and Means the following lending types:
Investments. Affordable Housing Development Loans and
related Project Investments; Small
Business Loans and related Project
Investments, and Commercial Real Estate
Loans and related Project Investments.
Affordable Housing Means origination of a loan to finance
Development Loan. the acquisition, construction, and/or
development of single- or multifamily
residential real property, where at
least 60% of the units in such property
are affordable, as may be defined in the
applicable NOFA, to Eligible Residents
who meet Low- and Moderate-Income
requirements.
Small Business Loan.......... Means an origination of a loan used for
commercial or industrial activities
(other than an Affordable Housing Loan,
Affordable Housing Development Loan,
Commercial Real Estate Loan, Home
Improvement Loan) to a business or farm
that meets the size eligibility
standards of the Small Business
Administration's Development Company or
Small Business Investment Company
programs (13 CFR 121.301) and is located
in a Distressed Community.
Commercial Real Estate Loan.. Means an origination of a loan (other
than an Affordable Housing Development
Loan or Affordable Housing Loan) that is
secured by real estate and used to
finance the acquisition or
rehabilitation of a building in a
Distressed Community, or the
acquisition, construction and or
development of property in a Distressed
Community, used for commercial purposes.
Service Activities........... Means the following activities: Deposit
Liabilities; Financial Services;
Community Services; Targeted Financial
Services; and Targeted Retail Savings/
Investment Products.
Deposit Liabilities.......... Means time or savings deposits or demand
deposits. Any such deposit must be
accepted from Eligible Residents at the
offices of the Applicant or of the
Subsidiary of the Applicant and located
in the Distressed Community. Deposit
Liabilities may only include deposits
held by individuals in transaction
accounts (e.g., demand deposits,
negotiable order of withdrawal accounts,
automated transfer service accounts, and
telephone or preauthorized transfer
accounts) or non-transaction accounts
(e.g., money market deposit accounts,
other savings deposits, and all time
deposits), as defined by the Appropriate
Federal Banking Agency.
Financial Services........... Means check cashing, providing money
orders and certified checks, automated
teller machines (ATM), safe deposit
boxes, new branches, and other
comparable services as may be specified
by the CDFI Fund in the applicable NOFA,
that are provided by the Applicant to
Eligible Residents or enterprises that
are Integrally Involved in the
Distressed Community.
Community Services........... Means the following forms of assistance
provided by officers, employees or
agents (contractual or otherwise) of the
Applicant:
(1) Provision of Technical Assistance and
financial education to Eligible
Residents regarding managing their
personal finances;
(2) Provision of Technical Assistance
and consulting services to newly
formed small businesses and nonprofit
organizations located in the
Distressed Community;
(3) Provision of Technical Assistance
and financial education to, or
servicing the loans of, homeowners
who are Eligible Residents and meet
Low- and Moderate-Income
requirements; and
(4) Other services provided to
Eligible Residents who meet Low- and
Moderate-Income requirements or
enterprises that are Integrally
Involved in a Distressed Community,
as deemed appropriate by the CDFI
Fund, and other comparable services
as may be specified by the CDFI Fund
in the applicable NOFA.
Other Related Terms:
Targeted Financial Services.. Means ETAs, IDAs, and such other banking
products targeted to Eligible Residents,
as may be specified by the CDFI Fund in
the applicable NOFA.
Targeted Retail Savings/ Means certificates of deposit, mutual
Investment Products. funds, life insurance, and other similar
savings or investment vehicles targeted
to Eligible Residents, as may be
specified by the CDFI Fund in the
applicable NOFA.
[[Page 58643]]
Electronic Transfer Account Means an account that meets the following
(ETA) \1\. requirements, and with respect to which
the Applicant has satisfied the
requirements: (1) Be an individually
owned account at a Federally insured
financial institution; (2) Be available
to any individual who receives a Federal
benefit, wage, salary, or retirement
payment; (3) Accept electronic Federal
benefit, wage, salary, and retirement
payments and such other deposits as a
financial institution agrees to permit;
(4) Be subject to a maximum price of
$3.00 per month; (5) Have a minimum of
four cash withdrawals and four balance
inquiries per month, to be included in
the monthly fee, through: (i) The
financial institution's proprietary (on-
us) automated teller machines (ATMs);
(ii) Over-the-counter transactions at
the main office or a branch of the
financial institution; or (iii) Any
combination of on-us ATM access and over-
the-counter access at the option of the
financial institution; (6) Provide the
same consumer protections that are
available to other account holders at
the financial institution, including,
for accounts that provide electronic
access, Regulation E (12 CFR part 205)
protections regarding disclosure,
limitations on liability, procedures for
reporting lost or stolen cards, and
procedures for error resolution; (7) For
financial institutions that are members
of an on-line point-of-sale (POS)
network, allow on-line POS purchases,
cash withdrawals, and cash back with
purchases at no additional charge by the
financial institution offering the ETA;
(8) Require no minimum balance, except
as required by Federal or State law; (9)
At the option of the financial
institution, be either an interest-
bearing or a non-interest-bearing
account; and (10) Provide a monthly
statement.
Individual Development Means a special savings account that
Account (or IDA) \2\. matches the deposits of Eligible
Residents who meet Low- and Moderate-
Income requirements individuals and that
enables such individuals to save money
for a particular financial goal
including, but not limited to, and as
determined by the CDFI Fund: buying a
home, paying for post-secondary
education, or starting or expanding a
small business.
Technical Assistance \3\..... Means the provision of consulting
services, resources, training, and other
nonmonetary support relating to an
organization, individual, or operation
of a trade or business, as may be
specified by the CDFI Fund in the
applicable NOFA.
------------------------------------------------------------------------
\1\ Included in the definition of Targeted Financial Securities.
\2\ Ibid.
\3\ Included in the definitions of: CDFI Support Activity and Community
Services.
a. New Qualified Activities
(1) Are there any loan, investment or service activities not
currently considered BEA Program Qualified Activities that the CDFI
Fund should consider adding? If so, indicate what the activity is,
describe it, and explain why the CDFI Fund should consider it. Also,
describe the benefits of the activity to CDFIs, residents or businesses
in Distressed Communities.
(2) The CDFI Fund does not currently have a specific Qualified
Activity type for working capital or equipment loans. These types of
loans are typically reported as Small Business Loans if the borrower
meets the size eligibility standards. Should the CDFI Fund consider
introducing a new Qualified Activity type specifically for working
capital or equipment loans for businesses located in Distressed
Communities that do not meet the criteria for a Small Business Loans?
Please explain why or why not.
(3) The CDFI Fund does not currently have specific guidance for
reverse mortgages. A reverse mortgage is a mortgage loan available to
homeowners 62 years of age and older, usually secured over a
residential property that enables the borrower to access the
unencumbered value of the property. Should the CDFI Fund consider
introducing reverse mortgages as a new Qualified Activity type or
consider revising the definition of Affordable Housing Loan to include
reverse mortgages? Please explain why or why not.
b. Existing Qualified Activities
(1) Are there any loans, investments, or service activities that
are currently considered BEA Program Qualified Activities for which the
CDFI Fund should consider updates to the definition? If so, indicate
the Qualified Activity and explain why the CDFI Fund should consider
revising the definition.
(2) Are there any loans, investments, or service activities that
are currently considered BEA Program Qualified Activities that the CDFI
Fund should consider eliminating? If so, indicate the Qualified
Activity and explain why the CDFI Fund should consider eliminating it.
(3) For Small Business Loans, which are Qualified Activities in the
Commercial Loans and Investments sub-category of the Distressed
Community Financing Activities category, the CDFI Fund instructs
Applicants to use the size eligibility standards adopted by the U.S.
Small Business Administration's Development Company or Small Business
Investment Company programs (13 CFR 121.01) for determining whether a
loan to a borrower is eligible to be reported as this Qualified
Activity. Is there any other criteria the CDFI Fund should consider for
determining whether a loan to a borrower is eligible to be reported as
a Small Business Loan? If yes, please describe the criteria and explain
why the CDFI Fund should consider it.
(4) The CDFI Fund currently values the administrative cost of
providing certain Financial Services using the following per unit
values:
$100.00 per account for Targeted Financial Services, including safe
transaction accounts, youth transaction accounts, Electronic Transfer
Accounts and Individual Development Accounts; $50.00 per account for
checking and savings accounts that do not meet the definition of
Targeted Financial Services; $5.00 per check cashing transaction;
$50,000 per new ATM installed at a location in a Distressed Community;
and $500,000 per new retail bank branch office opened in a Distressed
Community, including school-based bank branches approved by the
Applicant's Federal bank regulator.
Should the CDFI Fund consider updates to the valuation of these
administrative costs? If so, indicate the Financial Service, suggested
value, and explain why the CDFI Fund should consider revising the
value.
2. Award Selection Process
Section 1806.404 (b), (c), and (d) of the Interim Rule describes
the award selection process if insufficient funds are available to
cover estimated awards for which Applicants are eligible, priority of
awards, and calculating
[[Page 58644]]
actual award amounts. Applicants are ranked based on whether the
Applicant is a CDFI or a non-CDFI, and prioritized in each category of
BEA Qualified Activities. Currently, one overall maximum award amount
has been determined for an Applicant's single BEA Program award,
despite the number of categories the Applicant is eligible to receive
an award for. Award selections within each BEA category are based on an
Applicant's relative ranking within each such category, subject to the
availability of funds and any established maximum dollar amount of
total awards that may be awarded for the Distressed Community Financing
Activities category of Qualified Activities, as determined by the CDFI
Fund.
a. Award Amount
(1) Should the CDFI Fund consider awarding eligible applicants who
successfully demonstrate increases in more than one BEA category a
higher single BEA Program award amount than Applicants who demonstrate
an increase in only one BEA category, if both are eligible for the
maximum award amount? If yes, explain what should be considered in
determining the proportion of the increased award amount. If no,
explain why not.
(2) Should the CDFI Fund establish a minimum dollar amount and/or a
maximum dollar amount that may be awarded for the CDFI Related
Activities category? Explain why or why not.
(3) Should the CDFI Fund establish a maximum dollar amount that may
be awarded for Distressed Community Financing Activities category?
Explain why or why not.
(4) Should the CDFI Fund establish a maximum dollar amount that may
be awarded for the Service Activities category? Explain why or why not.
(5) Should the CDFI Fund determine actual award amounts by a method
other than the existing formulaic award calculation? If yes, please
describe the method and note what benefits are offered to Applicants,
residents and businesses in Distressed Communities, and/or U.S.
taxpayers by implementing this method. Also, indicate if/how the method
addresses the following factors noted in Section 1834a(h)(1)(C) of the
BEA Statute: degree of difficulty in carrying out activities, community
impact, degree of innovative methods for meeting community needs,
leverage of qualified activity amounts, total asset size of the
Applicant, new entrance to providing services in a Distressed
Community, need for subsidy, and extent of distress in a community.
b. Award Calculation
The estimated BEA Program award calculation is the year-over-year
increase in Qualified Activities from the Baseline to the Assessment
Period prioritized based on CDFI certification status and CRA asset
size, and multiplied by an award percentage based on the Category, Sub-
category and Qualified Activity type.
(1) Is there any additional criteria that the CDFI Fund should
consider in the estimated BEA Program award calculation?
3. Cap on Qualified Activity Amount
Current policy states that the value of a Qualified Activity for
purposes of determining a BEA Program Award shall not exceed $10
million in the case of Commercial Real Estate Loans or any CDFI Related
Activities (i.e., the total principal amount of the transaction must be
$10 million or less to be considered a Qualified Activity). However,
the CDFI Fund may consider transactions with a total principal value of
over $10 million on a case by case basis. In such cases, Applicants
must attach a Community Benefit Statement, which is a narrative
statement that describes the community benefit of transactions over $10
million for the CDFI Fund's consideration.
a. What information should the Applicant provide to aid the CDFI
Fund in assessing the community benefit of transactions over $10
million?
4. Integral Involvement
The Interim Rule defines CDFI Support Activity as assistance
provided by an Applicant or its Subsidiary to a Certified CDFI that
meets the Integral Involvement criteria set forth by the CDFI Fund in
the applicable NOFA. Commenters should note that Integral Involvement
is a statutory program requirement.
The most recent BEA Program NOFA defines Integrally Involved as:
Scenario I: Having provided at least 10% of the number of its
financial transactions or dollars transacted (e.g., loans or equity
investments) in one or more Distressed Communities in each of the three
calendar years preceding the date of the applicable NOFA; or 10% of the
number of its Development Service Activities (as defined in 12 CFR
1805.104) or value of the administrative cost of providing such
services in one or more Distressed Communities in each of the three
calendar years preceding the date of the applicable NOFA;
Scenario II: Transacted at least 25% of the number of its financial
transactions or dollars transacted (e.g., loans or equity investments)
in one or more Distressed Communities in at least one of the three
calendar years preceding the date of the applicable NOFA or transacted
at least 25% of the number of its Development Service Activities or
value of the administrative cost of providing such services in one or
more Distressed Communities in at least one of the three calendar years
preceding the date of the applicable NOFA;
Scenario III: Demonstrating that it has attained at least 10% of
market share for a particular product in one or more Distressed
Communities in at least one of the three calendar years preceding the
date of the applicable NOFA;
Scenario IV: At least 25% of the CDFI Partner's physical locations
(e.g., offices or branches) are located in one or more Distressed
Communities where it provided financial transactions or Development
Service Activities during the one calendar year preceding the date of
the NOFA.
a. Should the current definition of Integrally Involved be revised
or replaced? If yes, how should the CDFI Fund revise the Integrally
Involved definition or what should the CDFI Fund replace the term with?
b. Are there any other factors the CDFI Fund should consider when
determining an updated definition of Integrally Involved? If yes, what
are they?
Authority: 12 U.S.C. 1834a, 4703, 4713, 4717; 12 CFR part 1806.
Jodie L. Harris,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2022-20732 Filed 9-26-22; 8:45 am]
BILLING CODE 4810-70-P
