This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

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new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

25581 

Vol. 80, No. 86 

Tuesday, May 5, 2015 

DEPARTMENT OF THE TREASURY 

Community Development Financial 

Institutions Fund 

12 CFR Part 1806 

RIN 1505–AA91 

Bank Enterprise Award Program 

AGENCY: Community Development 

Financial Institutions Fund, Department 

of the Treasury. 

ACTION: Interim rule with request for 

comment. 

SUMMARY: The Department of the 

Treasury is issuing a revised interim 

rule implementing the Bank Enterprise 

Award Program (BEA Program), 

administered by the Community 

Development Financial Institutions 

Fund (CDFI Fund), Department of the 

Treasury. This revised interim rule 

reflects requirements set forth in a final 

rule, published by the Department of the 

Treasury (Uniform Administrative 

Requirements, Cost Principles, and 

Audit Requirements for Federal Awards, 

December 19, 2014), hereafter referred 

to as the Uniform Administrative 

Requirements. The Uniform 

Administrative Requirements constitute 

a government-wide framework for grants 

management codified by the Office of 

Management and Budget (OMB); they 

combine several OMB guidance 

circulars aimed at reducing 

administrative burden for award 

Recipients and reducing the risk of 

waste, fraud and abuse of Federal 

financial assistance. The Uniform 

Administrative Requirements establish 

financial, administrative, procurement, 

and program management standards 

with which Federal award-making 

programs, including those administered 

by the CDFI Fund, and Recipients must 

comply. This revised BEA Program 

interim rule includes revisions 

necessary to implement the Uniform 

Administrative Requirements, as well as 

to make certain technical corrections 

and other updates to the current rule. 

DATES: Effective May 5, 2015; written 

comments must be received by the 

offices of the CDFI Fund on or before 

July 3, 2015. 

ADDRESSES: You may submit comments 

concerning this revised interim rule via 

the Federal e-Rulemaking Portal at 

http://www.regulations.gov (please 

follow the instructions for submitting 

comments). All submissions received 

must include the agency name and 

Regulatory Information Number (RIN) 

for this rulemaking. Other information 

regarding the CDFI Fund and its 

programs may be obtained through the 

CDFI Fund’s Web site at http://

www.cdfifund.gov. 

FOR FURTHER INFORMATION CONTACT: 

Robert Ibanez, Program Manager, 

Community Development Financial 

Institutions Fund, at bea@cdfi.treas.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The CDFI Fund, Department of the 

Treasury, was authorized by the 

Community Development Banking and 

Financial Institutions Act of 1994, as 

amended (12 U.S.C. 4701 et seq.) (the 

Act). The mission of the CDFI Fund is 

to increase economic opportunity and 

promote community development 

investments for underserved 

populations and in distressed 

communities in the United States. Its 

long-term vision is an America in which 

all people have access to affordable 

credit, capital and financial services. 

The BEA Program provides awards to 

depository institutions, insured by the 

Federal Deposit Insurance Corporation 

(FDIC), that demonstrate an increase in 

their activities in the form of loans, 

investments, services, and Technical 

Assistance, in Distressed Communities 

and provide financial assistance to 

Community Development Financial 

Institutions (CDFIs) through grants, 

stock purchases, loans, deposits, and 

other forms of financial and Technical 

Assistance. 

Through the BEA Program, the CDFI 

Fund seeks to: Strengthen and expand 

the financial and organizational 

capacity of CDFIs; provide monetary 

awards to insured depository 

institutions that increase their lending 

and financial services in Distressed 

Communities; and increase the flow of 

private capital into Low- and ModerateIncome areas. Applicants participate in 

the BEA Program through a competitive 

application process, in which the CDFI 

Fund evaluates applications based on 

the value of their increases in certain 

Qualified Activities. BEA Program 

award Recipients receive award 

proceeds in the form of a grant after 

successful completion of specified 

Qualified Activities. 

On January 30, 2009, the CDFI Fund 

published in the Federal Register an 

interim regulation (74 FR 5790) 

implementing the BEA Program. The 

deadline for submission of comments 

was March 2, 2009. 

II. Comments on the January 30, 2009 

Interim Rule 

As of the close of the March 2, 2009 

comment period, the CDFI Fund 

received no comments on the current 

rule. 

III. Summary of Changes 

(A) Section 1806.102, Relationship to 

other programs: This section has been 

revised to clarify that the restrictions on 

entities applying for, receiving, and 

using BEA Program Award in 

conjunction with awards through other 

CDFI Fund programs, will be described 

in the applicable notice of funding 

opportunity for each program. This 

section also prohibits Applicants from 

submitting any transactions as Qualified 

Activities if they are funded in whole or 

in part with award proceeds from 

another CDFI Fund program or other 

Federal program. 

(B) Section 1806.103, Definitions: 

Throughout the revised interim rule, the 

defined term ‘‘Awardee’’ has been 

replaced by ‘‘Recipient’’ and the term 

‘‘disbursement’’ has been replaced with 

the term ‘‘payment’’ as it relates to 

award funds being transmitted from the 

CDFI Fund to the Recipient. These 

changes were made to align the 

terminology in the BEA Program 

regulations with the terms used in the 

Uniform Administrative Requirements, 

2 CFR part 1000. 

The term ‘‘CDFI Partner’’ is revised in 

subsection 1806.103 to prohibit a CDFI 

Partner from being an affiliated 

organization of the Applicant. 

‘‘Community Development Entity’’ has 

been removed from the definition 

section because such term is not used in 

this part. The term ‘‘Development 

Service Activities’’ is now defined in 


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subsection 1806.103. ‘‘Geographic 

Units’’ is revised in subsection 1806.103 

to align with the updated terminology 

used by the U.S. Bureau of the Census. 

‘‘Home Improvement Loan’’ is revised 

in subsection 1806.103 to ensure that 

the borrower meets the definitions of 

Low- and Moderate-Income. ‘‘Individual 

Development Account’’ is revised in 

subsection 1806.103 to provide for more 

flexibility and is now less prescriptive. 

‘‘Insured Depository Institution’’ is 

defined in subsection 1806.103. 

‘‘Integrally Involved’’ is revised in 

subsection 1806.103 to reflect that the 

definition no longer applies to nonCDFIs. The term ‘‘Small Dollar 

Consumer Loan,’’ added as an eligible 

activity in the definition of ‘‘Distressed 

Community Financing Activities’’ 

(subsection 1806.103), has been defined 

in subsection 1806.103. ‘‘State’’ is 

defined in subsection 1806.103. The 

term ‘‘Targeted Financial Services’’ is 

revised in subsection 1806.103 to reflect 

that such term must be targeted to 

Eligible Residents that meet Low- and 

Moderate-Income requirements. The 

term ‘‘Technical Assistance’’ is now 

defined in subsection 1806.103. 

(C) Subsection 1806.104(a), Uniform 

Administrative Requirements: 

Subsection 1806.104(a) has been added 

to assert that the Uniform 

Administrative Requirements are 

applicable to BEA Program Awards. 

(D) Subpart B: The title of Subpart B 

has been revised from ‘‘Awards’’ to 

‘‘Eligibility’’ and describes the basic 

application requirements that an 

Applicant must meet in order to receive 

a BEA Program Award. The former 

content of Subpart B, dealing with the 

specifics of how a Recipient’s award 

amount is determined, is now located in 

Subpart D ‘‘Award Determinations,’’ 

with new content in Section 1806.400 

describing the period from which an 

Applicant’s increases in Qualified 

Activities will be measured. The 

addition of this new section caused the 

numbering of subsequent sections to 

change. 

(E) Subpart C: The title of Subpart C 

has been revised to ‘‘Use of Funds/

Qualified Activities,’’ describes the 

eligible uses of a BEA Program Award, 

and identifies restrictions on the use of 

award dollars set forth in Section 

1806.301. The former Subpart C, ‘‘Terms 

and Conditions of Assistance,’’ is now 

designated as Subpart E. 

(F) Subpart D: In Subpart D, Section 

1806.404(c), the priority of awards has 

been adjusted to provide the CDFI Fund 

with the discretion to cap, in the 

applicable Notice of Funding 

Availability (NOFA), the maximum 

amount of funding available for the 

Distressed Community Financing 

Activities category. The three Qualified 

Activities are prioritized based on the 

type of Qualified Activity, as well as the 

type of Applicant (meaning, CDFI 

versus non-CDFI). Section 1806.404(c) 

makes clear that in each Qualified 

Activity, a CDFI Applicant will be 

prioritized over a non-CDFI Applicant. 

The restrictions on the use of award 

dollars also apply to Qualified 

Activities, as set forth in Section 

1806.402(d). 

(G) Subpart E: Subpart E has been 

revised by adding a new paragraph 

(subsection 1806.500(a)(5)) to 

accommodate the audit requirements of 

the Uniform Administrative 

Requirements, and it provides a general 

description of the report types to be 

collected from Recipients on an annual 

basis. Specific reporting requirements, 

using OMB Paperwork Reduction Act 

(PRA) approved information collections, 

will be described in the applicable 

NOFAs and Award Agreements. In 

addition, this subsection has been 

revised to require the submission of 

annual reports within 90 days of the 

Recipients’ fiscal year end, per the 

Uniform Administrative Requirements. 

Section 1806.501, previously reserved, 

has been deleted which resulted in the 

subsequent sections being renumbered. 

IV. Rulemaking Analysis 

A. Executive Order (E.O.) 12866 

It has been determined that this 

regulation is not a significant regulatory 

action as defined in Executive Order 

12866. Therefore, a Regulatory 

Assessment is not required. 

B. Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required under the 

Administrative Procedure Act (5 U.S.C. 

553) or any other law, the Regulatory 

Flexibility Act does not apply. 

C. Paperwork Reduction Act 

The collections of information 

contained in this revised interim rule 

have been previously reviewed and 

approved by OMB in accordance with 

the Paperwork Reduction Act of 1995 

and assigned the applicable OMB 

Control Number associated with the 

CDFI Fund under 1559–0005. An 

agency may not conduct or sponsor, and 

a person is not required to respond to, 

a collection of information, unless it 

displays a valid control number 

assigned by OMB. The revised interim 

rule imposes collections of new 

information, for which the CDFI Fund 

has OMB approval. 

D. National Environmental Policy Act 

The revised interim rule has been 

reviewed in accordance with the CDFI 

Fund’s Environmental Quality 

regulations (12 CFR part 1815), 

promulgated pursuant to the National 

Environmental Protection Act of 1969 

(NEPA), which requires that the CDFI 

Fund adequately consider the 

cumulative impact that proposed 

activities have upon the human 

environment. It is the determination of 

the CDFI Fund that the revised interim 

rules does not constitute a major federal 

action significantly affecting the quality 

of the human environment, and, in 

accordance with the NEPA and the CDFI 

Fund Environmental Quality 

regulations, neither an Environmental 

Assessment nor an Environmental 

Impact Statement is required. 

E. Administrative Procedure Act 

Because the revisions to this revised 

interim rule relate to grants, notice and 

public procedure and a delayed 

effective date are not required pursuant 

to the Administrative Procedure Act 

found at 5 U.S.C. 553(a)(2). 

F. Comment 

Public comment is solicited on all 

aspects of this interim regulation. The 

CDFI Fund will consider all comments 

made on the substance of this interim 

regulation, but it does not intend to hold 

hearings. 

G. Catalog of Federal Domestic 

Assistance Number 

Bank Enterprise Award Program—21.021. 

List of Subjects in 12 CFR Part 1806 

Banks, banking, Community 

development, Grant programs—housing 

and community development, Reporting 

and recordkeeping requirements, 

Savings associations. 

For the reasons set forth in the 

preamble, 12 CFR part 1806 is revised 

to read as follows: 

PART 1806—BANK ENTERPRISE 

AWARD PROGRAM 

Sec. 

Subpart A—General Provisions 

1806.100 Purpose. 

1806.101 Summary. 

1806.102 Relationship to other programs. 

1806.103 Definitions. 

1806.104 Uniform Administrative 

Requirements; Waiver authority. 

1806.105 OMB control number. 

Subpart B—Eligibility 

1806.200 Applicant eligibility. 


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Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Rules and Regulations 25583 

Subpart C—Use of funds/Qualified 

Activities 

1806.300 Qualified Activities. 

1806.301 Restrictions on use of award. 

Subpart D—Award Determinations 

1806.400 General. 

1806.401 Community eligibility and 

designation. 

1806.402 Measuring and reporting 

Qualified Activities. 

1806.403 Estimated award amounts. 

1806.404 Selection process; actual award 

amounts. 

1806.405 Applications for BEA Program 

Awards. 

Subpart E—Terms and Conditions of 

Assistance 

1806.500 Award Agreement; sanctions. 

1806.501 Compliance with government 

requirements. 

1806.502 Fraud, waste, and abuse. 

1806.503 Books of account, records, and 

government access. 

1806.504 Retention of records. 

Authority: 12 U.S.C. 1834a, 4703, 4703 

note, 4713, 4717; 31 U.S.C. 321. 

Subpart A—General Provisions 

§ 1806.100 Purpose. 

The purpose of the Bank Enterprise 

Award (BEA) Program is to provide 

grants to Insured Depository Institutions 

that provide financial and technical 

assistance to Community Development 

Financial Institutions and increase their 

activities in Distressed Communities. 

§ 1806.101 Summary. 

Through the BEA Program, the CDFI 

Fund will provide monetary awards in 

the form of grants to Applicants selected 

by the CDFI Fund that increase their 

investments in or provide other support 

of CDFIs, increase their lending and 

investment activities in Distressed 

Communities, or increase their 

provision of certain services and 

assistance. Distressed Communities 

must meet minimum geographic, 

poverty, and unemployment criteria. 

Applicants are selected to receive BEA 

Program Awards through a merit-based, 

competitive application process. The 

amount of a BEA Program Award is 

based on the increase in Qualified 

Activities that are carried out by the 

Applicant during the Assessment 

Period. BEA Program Awards are 

disbursed by the CDFI Fund after the 

Recipient has successfully completed 

projected Qualified Activities. Each 

Recipient will enter into an Award 

Agreement, which will require it to 

abide by terms and conditions pertinent 

to any assistance received under this 

part, including the requirement that 

BEA Program Award proceeds must be 

used for Qualified Activities, as well as 

the Uniform Administrative 

Requirements, as applicable. All BEA 

Program Awards are made subject to 

funding availability. 

§ 1806.102 Relationship to other 

programs. 

(a) Restrictions on applying for, 

receiving and using BEA Program 

Awards in conjunction with awards 

under other programs administered by 

the CDFI Fund (including, but not 

limited to, the Capital Magnet Fund, the 

CDFI Program, the CDFI Bond 

Guarantee Program, the Native 

American CDFI Assistance Program, and 

the New Markets Tax Credit Program) 

are as set forth in the applicable notice 

of funding opportunity or Notice of 

Allocation Availability. 

(b) Prohibition against double 

funding. Qualified Activities may not 

include transactions funded in whole or 

in part with award proceeds from 

another CDFI Fund program or Federal 

program. 

§ 1806.103 Definitions. 

For purposes of this part, the 

following terms shall have the following 

definitions: 

Act means the Community 

Development Banking and Financial 

Institutions Act of 1994, as amended (12 

U.S.C. 4701 et seq.); 

Affordable Housing Development 

Loan means origination of a loan to 

finance the acquisition, construction, 

and/or development of single- or multifamily residential real property, where 

at least 60 percent 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; 

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; 

Applicant means any insured 

depository institution (as defined in 

section 3(c)(2) of the Federal Deposit 

Insurance Act (12 U.S.C. 1813)) that is 

applying for a Bank Enterprise Award; 

Appropriate Federal Banking Agency 

has the same meaning as in section 3 of 

the Federal Deposit Insurance Act (12 

U.S.C. 1813); 

Assessment Period means an annual 

or semi-annual period specified in the 

applicable NOFA in which an Applicant 

will carry out, or has carried out, 

Qualified Activities; 

Award Agreement means a formal 

agreement between the CDFI Fund and 

a Recipient pursuant to § 1806.500; 

Bank Enterprise Award (or BEA 

Program Award) means an award made 

to an Applicant pursuant to this part; 

Bank Enterprise Award Program (or 

BEA Program) means the program 

authorized by section 114 of the Act and 

implemented under this part; 

Baseline Period means an annual or a 

semi-annual period specified in the 

applicable NOFA, in which an 

Applicant has previously carried out 

Qualified Activities; 

CDFI Partner means a CDFI that has 

been provided assistance in the form of 

CDFI Related Activities by an 

unaffiliated Applicant; 

CDFI Related Activities means Equity 

Investments, Equity-Like Loans and 

CDFI Support Activities; 

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 if such deposits 

are: 

(1) Uninsured and committed for a 

term of at least three years; or 

(2) Insured, committed for a term of 

at least three years, and provided at an 

interest rate that is materially (in the 

determination of the CDFI Fund) below 

market rates; 

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; 

Community Development Financial 

Institution (or CDFI) means an entity 

that has been certified as a CDFI by the 

CDFI Fund as of the date specified in 

the applicable NOFA; 

Community Development Financial 

Institutions Fund (or CDFI Fund) means 

the Community Development Financial 

Institutions Fund established pursuant 


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25584 Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Rules and Regulations 

to Section 104(a)(12 U.S.C. 4703(a)) of 

the Act; 

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 and 

homeowners who are Eligible Residents 

and meet Low- and Moderate-Income 

requirements; 

(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; 

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; 

Development Service Activities means 

activities that promote community 

development and are integral to the 

Applicant’s provision of financial 

products and Financial Services. Such 

services shall prepare or assist current 

or potential borrowers or investees to 

utilize the financial products or 

Financial Services of the Applicant. 

Development Service Activities include 

financial or credit counseling to 

individuals for the purpose of 

facilitating home ownership, promoting 

self-employment, or enhancing 

consumer financial management skills; 

or technical assistance to borrowers or 

investees for the purpose of enhancing 

business planning, marketing, 

management, and financial management 

skills. 

Distressed Community means a 

geographically defined community that 

meets the minimum area eligibility 

requirements specified in section 

1806.401 and such additional criteria as 

may be set forth in the applicable 

NOFA; 

Distressed Community Financing 

Activities means: Affordable Housing 

Loans, Affordable Housing Development 

Loans and related Project Investments; 

Education Loans; Commercial Real 

Estate Loans and related Project 

Investments; Home Improvement Loans; 

Small Business Loans and related 

Project Investments; and Small Dollar 

Consumer Loans; 

Education Loan means an advance of 

funds to a student who is an Eligible 

Resident, for the purpose of financing a 

college or vocational education; 

Electronic Transfer Account (or ETA) 

means an account that meets the 

requirements, and with respect to which 

the Applicant has satisfied the 

requirements, set forth in the Federal 

Register on July 16, 1999 (64 FR 38510), 

as such requirements may be amended 

from time to time; 

Eligible Resident means an individual 

who resides in a Distressed Community; 

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; 

Financial Services means checkcashing, providing money orders and 

certified checks, automated teller 

machines, 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 who meet Low- and 

Moderate-Income requirements or 

enterprises that are Integrally Involved 

in the Distressed Community; 

Geographic Units means counties (or 

equivalent areas), incorporated places, 

minor civil divisions that are units of 

local government, census tracts, block 

numbering areas, block groups, and 

Indian Areas or Native American Areas 

(as each is defined by the U.S. Bureau 

of the Census), or other areas deemed 

appropriate by the CDFI Fund; 

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 is Low- and Moderate-Income; 

Indian Reservation means a 

geographic area that meets the 

requirements of section 4(10) of the 

Indian Child Welfare Act of 1978 (25 

U.S.C. 1903(10)), and shall include land 

held by incorporated Native groups, 

regional corporations, and village 

corporations, as defined in and pursuant 

to the Alaska Native Claims Settlement 

Act (43 U.S.C. 1601 et seq.), public 

domain Indian allotments, and former 

Indian Reservations in the State of 

Oklahoma; 

Individual Development Account (or 

IDA) means a special savings account 

that matches the deposits of Low- and 

Moderate-Income individuals and that 

enables Low-and Moderate-Income 

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; 

Insured Depository Institution means 

any bank or thrift, the deposits of which 

are insured by the Federal Deposit 

Insurance Corporation; 

Integrally Involved means, for a CDFI 

Partner, having provided or transacted 

the percentage of financial transactions 

or dollars (i.e., loans or Equity 

Investments), or Development Service 

activities, in the Distressed Community 

identified by the Applicant or the CDFI 

Partner, as applicable, or having 

attained the percentage of market share 

for a particular product in a Distressed 

Community, set forth in the applicable 

NOFA; 

Low- and Moderate-Income means 

income that does not exceed 80 percent 

of the median income of the area 

involved, as determined by the 

Secretary of Housing and Urban 

Development, with adjustments for 

smaller and larger families pursuant to 

section 102(a)(20) of the Housing and 

Community Development Act of 1974 

(42 U.S.C. 5302(a)(20)); 

Metropolitan Area means an area 

designated as such (as of the date of the 

BEA Program application) by the Office 

of Management and Budget pursuant to 

44 U.S.C. 3504(e)(3), 31 U.S.C. 1104(d), 

and Executive Order 10253 (3 CFR, Part 

1949–1953 Comp., p. 758), as amended; 

Notice of Funding Availability (or 

NOFA) means the public notice of 

funding opportunity that announces the 

availability of BEA Program Award 

funds for a particular funding round and 

that advises prospective Applicants 


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with respect to obtaining application 

materials, establishes application 

submission deadlines, and establishes 

other requirements or restrictions 

applicable for the particular funding 

round; 

Priority Factor means a numeric value 

assigned to each type of activity within 

each category of Qualified Activity, as 

established by the CDFI Fund in the 

applicable NOFA. A priority factor 

represents the CDFI Fund’s assessment 

of the degree of difficulty, the extent of 

innovation, and the extent of benefits 

accruing to the Distressed Community 

for each type of activity; 

Project Investment means providing 

financial assistance in the form of a 

purchase of stock, limited partnership 

interest, other ownership instrument, or 

a grant to an entity that is Integrally 

Involved in a Distressed Community 

and formed for the sole purpose of 

engaging in a project or activity 

(approved by the CDFI Fund), including 

Affordable Housing Development Loans, 

Affordable Housing Loans, Commercial 

Real Estate Loans, and Small Business 

Loans; 

Qualified Activities means CDFI 

Related Activities, Distressed 

Community Financing Activities, and 

Service Activities; 

Recipient means an Applicant that 

receives a BEA Program Award 

pursuant to this part and the applicable 

NOFA; 

Service Activities means the following 

activities: Deposit Liabilities; Financial 

Services; Community Services; Targeted 

Financial Services; and Targeted Retail 

Savings/Investment Products; 

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; 

Small Dollar Consumer Loan means 

affordable consumer lending products 

that serve as available alternatives in the 

marketplace for individuals who are 

Eligible Residents and meet criteria 

further specified in the applicable 

NOFA; 

State means any State of the United 

States, the District of Columbia or any 

territory of the United States, Puerto 

Rico, Guam, American Samoa, the 

Virgin Islands, and the Northern 

Mariana Islands; 

Subsidiary has the same meaning as 

in section 3 of the Federal Deposit 

Insurance Act, except that a CDFI shall 

not be considered a Subsidiary of any 

Insured Depository Institution or any 

depository institution holding company 

that controls less than 25 percent of any 

class of the voting shares of such 

corporation and does not otherwise 

control, in any manner, the election of 

a majority of directors of the 

corporation; 

Targeted Financial Services means 

ETAs, IDAs, and such other banking 

products targeted to Eligible Residents 

who meet Low- and Moderate-Income 

requirements, as may be specified by the 

CDFI Fund in the applicable NOFA; 

Targeted Retail Savings/Investment 

Products means certificates of deposit, 

mutual funds, life insurance, and other 

similar savings or investment vehicles 

targeted to Eligible Residents who meet 

Low- and Moderate-Income 

requirements, as may be specified by the 

CDFI Fund in the applicable NOFA; 

Technical Assistance 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; and 

Unit of General Local Government 

means any city, county town, township, 

parish, village, or other general-purpose 

political subdivision of a State or 

Commonwealth of the United States, or 

general-purpose subdivision thereof, 

and the District of Columbia. 

§ 1806.104 Uniform Administrative 

Requirements; Waiver authority. 

(a) Uniform Administrative 

Requirements. The Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards (Uniform 

Administrative Requirements), codified 

by the Department of the Treasury at 2 

CFR part 1000, apply to awards, 

regardless of type of award Recipient, 

made pursuant to this part. 

(b) Waiver authority. The CDFI Fund 

may waive any requirement of this part 

that is not required by law, upon a 

determination of good cause. Each such 

waiver will be in writing and supported 

by a statement of the facts and grounds 

forming the basis of the waiver. For a 

waiver in any individual case, the CDFI 

Fund must determine that application of 

the requirement to be waived would 

adversely affect the achievement of the 

purposes of the Act. For waivers of 

general applicability, the CDFI Fund 

will publish notification of granted 

waivers in the Federal Register. 

§ 1806.105 OMB control number. 

The collection of information 

requirements in this Part have been 

approved by the Office of Management 

and Budget and assigned the applicable, 

approved OMB Control Number 

associated with the CDFI Fund under 

1559–0005. 

Subpart B—Eligibility 

§ 1806.200 Applicant Eligibility. 

General requirements. An entity that 

is an Insured Depository Institution is 

eligible to apply for a BEA Program 

Award if the CDFI Fund receives a 

complete BEA Program Award 

application by the deadline set forth in 

the applicable Notice of Funding 

Availability (NOFA). Additional 

eligibility requirements are set forth in 

the applicable NOFA. 

Subpart C—Use of Funds/Qualified 

Activities 

§ 1806.300 Qualified Activities. 

To receive a BEA Program Award, an 

Insured Depository Institution must 

increase its Qualified Activities within 

the period of time set forth in the 

applicable NOFA. Recipients of BEA 

Program Awards must also use their 

payments for Qualified Activities, as 

described in the applicable NOFA and 

the Award Agreement. 

§ 1806.301 Restrictions of use of award. 

A Recipient may not distribute BEA 

Program Award funds to an Affiliate 

without the CDFI Fund’s prior written 

consent. 

Subpart D—Award Determinations 

§ 1806.400 General. 

The amount of a BEA Program Award 

shall be based on the Applicant’s 

increases in Qualified Activities from 

the Baseline Period to the Assessment 

Period, as set forth in the applicable 

NOFA. 

§ 1806.401 Community eligibility and 

designation. 

(a) General. If an Applicant proposes 

to carry out Service Activities or 

Distressed Community Financing 

Activities, the Applicant shall designate 

one or more Distressed Communities in 

which it proposes to carry out those 

activities. The Applicant may designate 

different Distressed Communities for 

each category of activity. If an Applicant 

proposes to carry out CDFI Support 

Activities, the Applicant shall provide 

evidence that the CDFI it is proposing 

to support is Integrally Involved in a 

Distressed Community as specified in 

the applicable NOFA. 


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(b) Minimum area and eligibility 

requirements. A Distressed Community 

must meet the following minimum area 

and eligibility requirements: 

(1) Minimum area requirements. A 

Distressed Community: 

(i) Must be an area that is located 

within the jurisdiction of one (1) Unit of 

General Local Government; 

(ii) The boundaries of the area must 

be contiguous; and 

(iii) The area must: 

(A) have a population, as determined 

by the most recent US Bureau of the 

Census data available, of not less than 

4,000 if any portion of the area is 

located within a Metropolitan Area with 

a population of 50,000 or greater; or 

(B) have a population, as determined 

by the most recent US Bureau of the 

Census data available, of not less than 

1,000 in any other case; or 

(C) Be located entirely within an 

Indian Reservation. 

(2) Eligibility requirements. A 

Distressed Community must be a 

geographic area where: 

(i) At least 30 percent of the Eligible 

Residents have incomes that are less 

than the national poverty level, as 

published by the U.S. Bureau of the 

Census or in other sources as set forth 

in guidance issued by the CDFI Fund; 

(ii) The unemployment rate is at least 

1.5 times greater than the national 

average, as determined by the U.S. 

Bureau of Labor Statistics’ most recently 

published data, including estimates of 

unemployment developed using the 

U.S. Bureau of Labor Statistics’ CensusShare calculation method, or in other 

sources as set forth in guidance issued 

by the CDFI Fund; and 

(iii) Such additional requirements as 

may be specified by the CDFI Fund in 

the applicable NOFA. 

(c) Area designation. An Applicant 

shall designate an area as a Distressed 

Community by: 

(1) Selecting Geographic Units which 

individually meet the minimum area 

eligibility requirements set forth in 

paragraph (b) of this section; or 

(2) Selecting two or more Geographic 

Units which, in the aggregate, meet the 

minimum area eligibility requirements 

set forth in paragraph (b) of this section, 

provided that no Geographic Unit 

selected by the Applicant within the 

area has a poverty rate of less than 20 

percent. 

(d) Designation. The CDFI Fund will 

provide a prospective Applicant with 

data and other information to help it 

identify areas eligible to be designated 

as a Distressed Community. Applicants 

shall submit designation materials as 

instructed in the applicable NOFA. 

§ 1806.402 Measuring and reporting 

Qualified Activities. 

(a) General. An Applicant may receive 

a BEA Program Award for engaging in 

any of the following categories of 

Qualified Activities during an 

Assessment Period: CDFI Related 

Activities, Distressed Community 

Financing Activities, or Service 

Activities. The CDFI Fund may further 

qualify such Qualified Activities in the 

applicable NOFA, including such 

additional geographic and transaction 

size limitations as the CDFI Fund deems 

appropriate. 

(b) Reporting Qualified Activities. An 

Applicant should report only its 

Qualified Activities for the category for 

which it is seeking a BEA Program 

Award. 

(1) If an Applicant elects to apply for 

an award in either the CDFI Related 

Activities category or the Distressed 

Community Financing Activities 

category, it must report on all types of 

activity within that category, unless the 

Applicant can provide a reasonable 

explanation, acceptable to the CDFI 

Fund in its sole discretion, as to why it 

cannot report on all activities in such 

category. 

(2) If an Applicant elects to apply for 

an award in the Service Activities 

category, it may elect not to report each 

type of activity within the Service 

Activities category. 

(c) Area served. CDFI Related 

Activities must be provided to a CDFI. 

CDFI Partners that are the recipients of 

CDFI Support Activities must 

demonstrate that they are Integrally 

Involved in a Distressed Community. 

Service Activities and Distressed 

Community Financing Activities must 

serve a Distressed Community. An 

activity is considered to serve a 

Distressed Community if it is: 

(1) Undertaken in the Distressed 

Community; or 

(2) Provided to Eligible Residents who 

meet Low- and Moderate-Income 

requirements or enterprises that are 

Integrally Involved in the Distressed 

Community. 

(d) Certain Limitations on Qualified 

Activities. Activities funded with the 

proceeds of Federal funding or tax 

credit programs are ineligible for 

purposes of calculating or receiving a 

Bank Enterprise Award. Please see the 

applicable NOFA for each funding 

round’s limitations on Qualified 

Activities. Qualified Activities shall not 

include loans to or investments in those 

business types set forth in the Uniform 

Administrative Requirements. 

(e) Measuring the Value of Qualified 

Activities. Subject to such additional or 

alternative valuations as the CDFI Fund 

may specify in the applicable NOFA, 

the CDFI Fund will assess the value of: 

(1) Equity Investments, Equity-Like 

Loans, loans, grants and certificates of 

deposits, at the original amount of such 

Equity Investments, Equity-Like Loans, 

loans, grants or certificates of deposits. 

Where a certificate of deposit matures 

and is then rolled over during the 

Baseline Period or the Assessment 

Period, as applicable, the CDFI Fund 

will assess the value of the full amount 

of the rolled-over deposit. Where an 

existing loan is refinanced (meaning, a 

new loan is originated to pay off an 

existing loan, whether or not there is a 

change in the applicable loan terms), the 

CDFI Fund will only assess the value of 

any increase in the principal amount of 

the refinanced loan; 

(2) Project Investments at the original 

amount of the purchase of stock, limited 

partnership interest, other ownership 

interest, or grant; 

(3) Deposit Liabilities at the dollar 

amount deposited as measured by 

comparing the net change in the amount 

of applicable funds on deposit at the 

Applicant during the Baseline Period 

with the net change in the amount of 

applicable funds on deposit at the 

Applicant during the Assessment 

Period, as described in paragraphs 

(e)(3)(i) and (ii) of this section: 

(i) The Applicant shall calculate the 

net change in deposits during the 

Baseline Period by comparing the 

amount of applicable funds on deposit 

at the close of business the day before 

the beginning of the Baseline Period and 

at the close of business on the last day 

of the Baseline Period; and 

(ii) The Applicant shall calculate the 

net change in such deposits during the 

Assessment Period by comparing the 

amount of applicable funds on deposit 

at the close of business the day before 

the beginning of the Assessment Period 

and at the close of business on the last 

day of the Assessment Period; 

(4) Financial Services and Targeted 

Financial Services based on the 

predetermined amounts as set forth by 

the CDFI Fund in the applicable NOFA; 

and 

(5) Financial Services (other than 

those for which the CDFI Fund has 

established a predetermined value), 

Community Services, and CDFI Support 

Activities consisting of Technical 

Assistance based on the administrative 

costs of providing such services. 

(f) Closed transactions. A transaction 

shall be considered to have been closed 

and carried out during the Baseline 

Period or the Assessment Period if the 

documentation evidencing the 

transaction: 


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Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Rules and Regulations 25587 

(1) Is executed on a date within the 

applicable Baseline Period or 

Assessment Period, respectively; and 

(2) Constitutes a legally binding 

agreement between the Applicant and a 

borrower or investee, which agreement 

specifies the final terms and conditions 

of the transaction, except that any 

contingencies included in the final 

agreement must be typical of such 

transaction and acceptable (both in the 

judgment of the CDFI Fund); and 

(3) An initial cash disbursement of 

loan or investment proceeds has 

occurred in a manner that is consistent 

with customary business practices and 

is reasonable given the nature of the 

transaction (as determined by the CDFI 

Fund), unless it is normal business 

practice to make no initial disbursement 

at closing and the Applicant 

demonstrates that the borrower has 

access to the proceeds, subject to 

reasonable conditions as may be 

determined by the CDFI Fund. 

(g) Reporting period. An Applicant 

must only measure the amount of a 

Qualified Activity that it reasonably 

expects to disburse to an investee, 

borrower, or other recipient within one 

year of the end of the applicable 

Assessment Period, or such other period 

as may be set forth by the CDFI Fund 

in the applicable NOFA. 

§ 1806.403 Estimated award amounts. 

(a) General. An Applicant must 

calculate and submit to the CDFI Fund 

an estimated award amount as part of its 

BEA Program Award application. 

(b) Award percentages. The CDFI 

Fund will establish the award 

percentage for each category of 

Qualified Activities in the applicable 

NOFA. Applicable award percentages 

for Qualified Activities undertaken by 

Applicants that are CDFIs will be equal 

to three times the award percentages for 

Qualified Activities undertaken by 

Applicants that are not CDFIs. 

(c) Calculating the estimated award 

amount. The estimated award amount 

for each category of Qualified Activities 

will be equal to the applicable award 

percentage of the increase in the 

weighted value of such Qualified 

Activities between the Baseline Period 

and Assessment Period. The weighted 

value of the applicable Qualified 

Activities shall be calculated by: 

(1) Subtracting the Baseline Period 

value of such Qualified Activity from 

the Assessment Period value of such 

Qualified Activity to yield a remainder; 

and 

(2) Multiplying the remainder by the 

applicable Priority Factor (as set forth in 

the applicable NOFA). 

(d) Estimated award eligibility review. 

The CDFI Fund will determine the 

eligibility of each transaction for which 

an Applicant has applied for a BEA 

Program Award. Based upon this 

review, the CDFI Fund will calculate the 

actual award amount for which such 

Applicant is eligible. 

§ 1806.404 Selection process; actual 

award amounts. 

(a) Sufficient funds available to cover 

estimated awards. All BEA Program 

Awards are subject to the availability of 

funds. If the amount of appropriated 

funds available during a funding round 

is sufficient to cover all estimated award 

amounts for which Applicants are 

eligible, in the CDFI Fund’s 

determination, and an Applicant meets 

all of the program requirements 

specified in this part, then such 

Applicant shall receive an actual award 

amount that is calculated by the CDFI 

Fund in the manner specified in 

§ 1806.403. 

(b) Insufficient funds available to 

cover estimated awards. If the amount 

of funds available during a funding 

round is insufficient to cover all 

estimated award amounts for which 

Applicants are eligible, in the CDFI 

Fund’s determination, then the CDFI 

Fund will select Recipients and 

determine actual award amounts based 

on the process described in subsection 

1806.404(c) and any established 

maximum dollar amount of awards that 

may be awarded for the Distressed 

Community Financing Activities 

category, as described in the applicable 

NOFA. 

(c) Priority of awards. In 

circumstances where there are 

insufficient funds to cover estimated 

awards, the CDFI Fund will rank 

Applicants based on whether the 

Applicant is a CDFI or a non-CDFI, and 

in each category of Qualified Activity 

(e.g., Service Activities) according to the 

priorities described in this paragraph 

(c). Selections within each priority 

category will be based on the 

Applicants’ relative rankings within 

each category, and based on whether the 

Applicant is a CDFI or a non-CDFI, 

subject to the availability of funds. 

(1) First priority. If the amount of 

funds available during a funding round 

is insufficient for all estimated award 

amounts, first priority will be given to 

CDFI Applicants that engaged in CDFI 

Related Activities, followed by nonCDFI Applicants that engaged in CDFI 

Related Activities ranked in the ratio as 

set forth in the applicable NOFA. 

(2) Second priority. If the amount of 

funds available during a funding round 

is sufficient for all first priority 

Applicants but insufficient for all 

remaining estimated award amounts, 

second priority will be given to CDFI 

Applicants that engaged in Distressed 

Community Financing Activities, 

followed by non-CDFI Applicants that 

engaged in CDFI Related Activities, 

ranked in the ratio as set forth in the 

applicable NOFA. 

(3) Third priority. If the amount of 

funds available during a funding round 

is sufficient for all first and second 

priority Applicants, but insufficient for 

all remaining estimated award amounts, 

third priority will be given to CDFI 

Applicants that engaged in Service 

Activities, followed by non-CDFI 

Applicants that engaged in Service 

Activities, ranked in the ratio as set 

forth in the applicable NOFA. 

(d) Calculating actual award amounts. 

The CDFI Fund will determine actual 

award amounts based upon the 

availability of funds, increases in 

Qualified Activities from the Baseline to 

the Assessment Period, and an 

Applicant’s priority ranking. If an 

Applicant receives an award for more 

than one priority category described in 

this section, the CDFI Fund will 

combine the award amounts into a 

single BEA Program Award. 

(e) Unobligated or deobligated funds. 

The CDFI Fund, in its sole discretion, 

may use any deobligated funds or funds 

not obligated during a funding round: 

(1) To select Applicants not 

previously selected, using the 

calculation and selection process 

contained in this part; 

(2) To make additional monies 

available for a subsequent funding 

round; or 

(3) As otherwise authorized by the 

Act. 

(f) Limitation. The CDFI Fund, in its 

sole discretion, may deny or limit the 

amount of a BEA Program Award for 

any reason. 

§ 1806.405 Applications for BEA Program 

Awards. 

(a) Notice of funding availability; 

applications. Applicants must submit 

applications for BEA Program Awards 

in accordance with this section and the 

applicable NOFA. An Applicant’s 

application must demonstrate a realistic 

course of action to ensure that it will 

meet the requirements described in 

subpart D within the period set forth in 

the applicable NOFA. Detailed 

application content requirements are 

found in the related application and 

applicable NOFA. The CDFI Fund will 

not disburse an award to an Applicant 

before it meets the eligibility 

requirements described in the 

applicable NOFA. The CDFI Fund shall 


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25588 Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Rules and Regulations 

require an Applicant to meet any 

additional eligibility requirements that 

the CDFI Fund deems appropriate. After 

receipt of an application, the CDFI Fund 

may request clarifying or technical 

information related to materials 

submitted as part of such application 

and/or to verify that Qualified Activities 

were carried out in the manner 

prescribed in this Part. The CDFI Fund, 

in its sole discretion, shall determine 

whether an applicant fulfills the 

requirements set for forth in this part 

and the applicable NOFA. 

(b) Application contents. An 

application for a BEA Program Award 

must contain: 

(1) A completed worksheet that 

reports the increases in Qualified 

Activities actually carried out during 

the Assessment Period as compared to 

those carried out during the Baseline 

Period. If an Applicant has merged with 

another institution during the 

Assessment Period, it must submit a 

separate Baseline Period worksheet for 

each subject institution and one 

Assessment Period worksheet that 

reports the activities of the merged 

institutions. If such a merger is 

unexpectedly delayed beyond the 

Assessment Period, the CDFI Fund 

reserves the right to withhold 

distribution of a BEA Program Award 

until the merger has been completed; 

(2) A report of Qualified Activities 

that were closed during the Assessment 

Period. Such report shall describe the 

original amount, census tract served, 

dates of execution, initial disbursement, 

and final disbursement of the 

instrument; 

(3) Documentation of Qualified 

Activities that meets the required 

thresholds and conditions described in 

§ 1806.402(f) and the applicable NOFA; 

(4) Information necessary for the CDFI 

Fund to complete its environmental 

review requirements pursuant to part 

1815 of this chapter; 

(5) Certifications, as described in the 

applicable NOFA and BEA Program 

Award application, that the information 

provided to the CDFI Fund is true and 

accurate and that the Applicant will 

comply with all relevant provisions of 

this chapter and all applicable Federal, 

State, and local laws, ordinances, 

regulations, policies, guidelines, and 

requirements; 

(6) In the case of an Applicant that 

engaged in Service Activities, or 

Distressed Community Financing 

Activities, the Applicant must confirm, 

by submitting documentation as 

described in the applicable NOFA and 

BEA Program application, the Service 

Activities or Distressed Community 

Financing Activities were provided to: 

(i) Eligible Residents that resided in a 

Distressed Community, or 

(ii) A business located in a Distressed 

Community. 

(7) Information that indicates that 

each CDFI to which an Applicant has 

provided CDFI Support Activities is 

Integrally Involved in a Distressed 

Community, as described in the 

applicable NOFA and BEA Program 

application; and 

(8) Any other information requested 

by the CDFI Fund, or specified by the 

CDFI Fund in the applicable NOFA or 

the BEA Program application, in order 

to document or otherwise assess the 

validity of information provided by the 

Applicant to the CDFI Fund. 

Subpart E—Terms and Conditions of 

Assistance 

§ 1806.500 Award Agreement; sanctions. 

(a) General. After the CDFI Fund 

selects a Recipient, the CDFI Fund and 

the Recipient will enter into an Award 

Agreement. In addition to the 

requirements of the Uniform 

Administrative Requirements, the 

Award Agreement will require that the 

Recipient: 

(1) Must carry out its Qualified 

Activities in accordance with applicable 

law, the approved BEA Program 

application, and all other applicable 

requirements; 

(2) Must comply with such other 

terms and conditions that the CDFI 

Fund may establish; 

(3) Will not receive any BEA Program 

Award payment until the CDFI Fund 

has determined that the Recipient has 

fulfilled all applicable requirements; 

(4) Must comply with performance 

goals that have been established by the 

CDFI Fund. Such performance goals 

will include measures that require the 

Recipient to use its BEA Program Award 

funds for Qualified Activities; and 

(5) Must comply with all data 

collection and reporting requirements. 

Each Recipient must submit to the CDFI 

Fund such information and 

documentation that will permit the 

CDFI Fund to review the Recipient’s 

progress in satisfying the terms and 

conditions of its Award Agreement, 

including: 

(i) Annual report. Each Recipient 

shall submit to the CDFI Fund at least 

annually and within 90 days after the 

end of each year of the Recipient’s 

performance period, an annual report 

that will provide data that, among other 

things, demonstrates the Recipient’s 

compliance with its performance goals 

(including a description of any 

noncompliance), its uses of the BEA 

Program Award funds, and the impact 

of the BEA Program and the CDFI 

industry. Recipients are responsible for 

the timely and complete submission of 

the annual report. 

(ii) Financial statement. A Recipient 

is not required to submit its financial 

statement to the CDFI Fund. The CDFI 

Fund may obtain the necessary 

information from publicly available 

sources. 

(b) Sanctions. In the event of any 

fraud, misrepresentation, or 

noncompliance with the terms of the 

Award Agreement by the Recipient, the 

CDFI Fund may terminate, reduce, or 

recapture the award, bar the Recipient 

and/or its Affiliates from applying for an 

award from the CDFI Fund for a period 

to be decided by the CDFI Fund in its 

sole discretion, and pursue any other 

available legal remedies. 

(c) Compliance with other CDFI Fund 

awards. In the event that an Applicant, 

Recipient, or its Subsidiary or Affiliate 

is not in compliance, as determined by 

the CDFI Fund, with the terms and 

conditions of any CDFI Fund award, the 

CDFI Fund may, in its sole discretion, 

bar said Applicant or Recipient from 

applying for future BEA Program 

Awards or withhold payment (either 

initial or subsequent) of BEA Program 

Award funds. 

(d) Notice. Prior to imposing any 

sanctions pursuant to this section or an 

Award Agreement, the CDFI Fund will 

provide the Recipient with written 

notice of the proposed sanction and an 

opportunity to respond. Nothing in this 

section, however, will provide a 

Recipient with the right to any formal or 

informal hearing or comparable 

proceeding not otherwise required by 

law. 

§ 1806.501 Compliance with government 

requirements. 

In carrying out its responsibilities 

pursuant to an Award Agreement, the 

Recipient must comply with all 

applicable Federal, State, and local 

laws, regulations (including but not 

limited to the Uniform Administrative 

Requirements, ordinances, and 

Executive Orders). 

§ 1806.502 Fraud, waste, and abuse. 

Any person who becomes aware of 

the existence or apparent existence of 

fraud, waste, or abuse of assistance 

provided under this part should report 

such incidences to the Office of 

Inspector General of the U.S. 

Department of the Treasury. 

§ 1806.503 Books of account, records, and 

government access. 

(a) A Recipient shall submit such 

financial and activity reports, records, 


rljohnson on DSK3VPTVN1PROD with RULES
Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Rules and Regulations 25589 

statements, and documents at such 

times, in such forms, and accompanied 

by such supporting data, as required by 

the CDFI Fund and the U.S. Department 

of the Treasury to ensure compliance 

with the requirements of this part. The 

United States Government, including 

the U.S. Department of the Treasury, the 

Comptroller General, and its duly 

authorized representatives, shall have 

full and free access to the Recipient’s 

offices and facilities, and all books, 

documents, records, and financial 

statements relevant to the award of the 

Federal funds and may copy such 

documents as they deem appropriate. 

(b) The Award Agreement provides 

that the provisions of the Act, this part, 

and the Award Agreement are 

enforceable under 12 U.S.C. 1818 of the 

Federal Deposit Insurance Act by the 

Appropriate Federal Banking Agency, as 

applicable, and that any violation of 

such provisions shall be treated as a 

violation of the Federal Deposit 

Insurance Act. Nothing in this 

paragraph (b) precludes the CDFI Fund 

from directly enforcing the Award 

Agreement as provided for under the 

terms of the Act. 

(c) The CDFI Fund will notify the 

Appropriate Federal Banking Agency 

before imposing any sanctions on a 

Recipient that is examined by or subject 

to the reporting requirements of that 

agency. The CDFI Fund will not impose 

a sanction described in section 

1806.500(b) if the Appropriate Federal 

Banking Agency, in writing, not later 

than 30 calendar days after receiving 

notice from the CDFI Fund: 

(1) Objects to the proposed sanction; 

(2) Determines that the sanction 

would: 

(i) Have a material adverse effect on 

the safety and soundness of the 

Recipient; or 

(ii) Impede or interfere with an 

enforcement action against that 

Recipient by the Appropriate Federal 

Banking Agency; 

(3) Proposes a comparable alternative 

action; and 

(4) Specifically explains: 

(i) The basis for the determination 

under paragraph (c)(2) of this section 

and, if appropriate, provides 

documentation to support the 

determination; and 

(ii) How the alternative action 

suggested pursuant to paragraph (c)(3) 

of this section would be as effective as 

the sanction proposed by the CDFI Fund 

in securing compliance and deterring 

future noncompliance. 

(d) Prior to imposing any sanctions 

pursuant to this section or an Award 

Agreement, the CDFI Fund shall, to the 

maximum extent practicable, provide 

the Recipient with written notice of the 

proposed sanction and an opportunity 

to comment. Nothing in this section, 

however, shall provide a Recipient to 

any formal or informal hearing or 

comparable proceeding not otherwise 

required by law. 

§ 1806.504 Retention of records. 

A Recipient must comply with all 

record retention requirements as set 

forth in the Uniform Administrative 

Requirements. 

Dated: April 30, 2015. 

Mary Ann Donovan, 

Director, Community Development Financial 

Institutions Fund. 

[FR Doc. 2015–10433 Filed 5–4–15; 8:45 am] 

BILLING CODE 4810–70–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2014–0038; Directorate 

Identifier 2013–SW–023–AD; Amendment 

39–18146; AD 2015–09–01] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Helicopters (Type Certificate 

Previously Held by Eurocopter France) 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for Airbus 

Model EC225LP helicopters. This AD 

requires repetitive visual and tap test 

inspections of each main rotor blade 

(blade) leading edge stainless steel 

protective strip (strip) for a crack, cut, 

or blind or open debonding 

(debonding), and taking approved 

corrective measures. If there is a crack 

or if there is debonding that exceeds 

acceptable limits, this AD requires, 

before further flight, repairing or 

replacing the blade with an airworthy 

part. This AD was prompted by 

suspected water seepage through a crack 

in the blade strip resulting in significant 

debonding. The actions of this AD are 

intended to prevent loss of the blade 

strip, excessive vibrations induced by 

blade weight imbalance, and subsequent 

loss of control of the helicopter. 

DATES: This AD is effective June 9, 2015. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain document listed in this AD 

as of June 9, 2015. 

ADDRESSES: For service information 

identified in this AD, contact Airbus 

Helicopters, Inc., 2701 N. Forum Drive, 

Grand Prairie, TX 75052; telephone 

(972) 641–0000 or (800) 232–0323; fax 

(972) 641–3775; or at http://

www.airbushelicopters.com/techpub. 

You may review the referenced service 

information at the FAA, Office of the 

Regional Counsel, Southwest Region, 

2601 Meacham Blvd., Room 663, Fort 

Worth, Texas 76137. It is also available 

on the Internet at http://

www.regulations.gov in Docket No. 

FAA–2014–0038. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov or in person at the 

Docket Operations Office between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this AD, the European 

Aviation Safety Agency (EASA) AD, any 

incorporated-by-reference service 

information, the economic evaluation, 

any comments received, and other 

information. The street address for the 

Docket Operations Office (phone: 800– 

647–5527) is U.S. Department of 

Transportation, Docket Operations 

Office, M–30, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: Gary 

Roach, Aviation Safety Engineer, 

Regulations and Policy Group, 

Rotorcraft Directorate, FAA, 2601 

Meacham Blvd., Fort Worth, Texas 

76137; telephone (817) 222–5110; email 

gary.b.roach@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

On January 31, 2014, at 79 FR 5321, 

the Federal Register published our 

notice of proposed rulemaking (NPRM), 

which proposed to amend 14 CFR part 

39 by adding an AD that would apply 

to Airbus Helicopters. The NPRM 

proposed to require repetitive visual 

and tap test inspections of each blade 

strip for a crack, cut, or debonding. If 

there is a crack or if there is debonding 

beyond acceptable limits or located 

outside a specific area, the NPRM 

proposed to require, before further 

flight, repairing or replacing the blade 

with an airworthy part. If there is a cut 

in the blade root polyurethane 

protective strip, the NPRM proposed to 

require tap test inspecting the blade for 

debonding. The proposed requirements 

were intended to prevent loss of the 

blade strip, excessive vibrations 

induced by blade weight imbalance, and 

subsequent loss of control of the 

helicopter. 

The NPRM was prompted by AD No. 

2013–0103, dated May 2, 2013, issued 


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