[Federal Register Volume 83, Number 140 (Friday, July 20, 2018)]
[Notices]
[Pages 34685-34698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15473]



[[Page 34685]]

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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Funding Opportunities: Capital Magnet Fund; 2018 Funding Round

    Funding Opportunity Title: Notice of Funds Availability (NOFA) 
inviting Applications for the fiscal year (FY) 2018 Funding Round of 
the Capital Magnet Fund (CMF).
    Announcement Type: Announcement of funding opportunity.
    Funding Opportunity Number: CDFI-2018-CMF.
    Catalog of Federal Domestic Assistance (CFDA) Number: 21.011.
    Dates:

                                  Table 1--FY 2018 Capital Magnet Fund Funding Round Critical Deadlines for Applicants
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            Time (eastern time--
                            Description                                             Deadline                         ET)             Submission method
--------------------------------------------------------------------------------------------------------------------------------------------------------
OMB Standard Form (SF)-424 Mandatory form..........................  August 20, 2018......................  11:59 p.m...........  Electronically via
                                                                                                                                   Grants.gov.
Create AMIS Account (if Applicant doesn't have one)................  August 27, 2018......................  11:59 p.m...........  Electronically via
                                                                                                                                   Awards Management
                                                                                                                                   Information System
                                                                                                                                   (AMIS).
Last day to contact Capital Magnet Fund Staff......................  September 13, 2018...................  5:00 p.m............  Service Request via
                                                                                                                                   AMIS or CDFI Fund
                                                                                                                                   Helpdesk: 202-653-
                                                                                                                                   0421 or
                                                                                                                                   <a href="/cdn-cgi/l/email-protection#87e4eae1c7e4e3e1eea9f3f5e2e6f4a9e0e8f1"><span class="__cf_email__" data-cfemail="07646a61476463616e29737562667429606871">[email protected]</span></a>.
CMF Application and Required Attachments...........................  September 17, 2018...................  5:00 p.m............  Electronically via
                                                                                                                                   AMIS.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Executive Summary: The Capital Magnet Fund (CMF) is administered by 
the Community Development Financial Institutions Fund (CDFI Fund). 
Through the CMF, the CDFI Fund provides financial assistance grants to 
Community Development Financial Institutions (CDFIs) and to qualified 
Nonprofit Organizations that have the development or management of 
affordable housing as one of their principal purposes. All awards 
provided through this Notice of Funds Availability (NOFA) are subject 
to funding availability.

I. Program Description

    A. Authorizing Statute and Regulation: The CMF was established 
through the Housing and Economic Recovery Act of 2008 (HERA), which 
added section 1339 to the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992. For a complete understanding of the program, 
the CDFI Fund encourages Applicants to review the CMF interim rule (12 
CFR part 1807) as amended February 8, 2016 (the CMF Interim Rule), this 
NOFA, the CDFI Fund's environmental quality regulation (12 CFR part 
1815), the CMF funding application (referred to hereafter as the 
``Application,'' meaning the application submitted in response to this 
NOFA), and the Uniform Administrative Requirements, Cost Principles, 
and Audit Requirements for Federal Awards (2 CFR part 200; 78 FR 78590) 
(Uniform Administrative Requirements or UAR). Each capitalized term 
used in this NOFA, but not defined herein, shall have the respective 
meanings assigned to them in the CMF Interim Rule, the Application, or 
the Uniform Administrative Requirements. Details regarding Application 
content requirements are found in the Application and related materials 
at www.cdfifund.gov/cmf.
    B. History: The CDFI Fund was established by the Riegle Community 
Development Banking and Financial Institutions Act of 1994 to promote 
economic revitalization and community development through investment in 
and assistance to CDFIs. Since its creation in 1994, the CDFI Fund has 
awarded approximately $3 billion to CDFIs, community development and 
affordable housing organizations, and financial institutions through 
the CMF, Community Development Financial Institutions Program (CDFI 
Program), the Native American CDFI Assistance Program (NACA Program), 
the Bank Enterprise Award Program (BEA Program), and the Financial 
Education and Counseling Pilot Program. In addition, the CDFI Fund has 
allocated more than $54 billion in tax credit allocation authority 
through the New Markets Tax Credit Program (NMTC Program) and has 
issued $1.4 billion in guarantees through the CDFI Bond Guarantee 
Program.
    C. Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards (2 CFR part 200): The Uniform 
Administrative Requirements codify financial, administrative, 
procurement, and program management standards that Federal award-making 
agencies must follow. Per the Uniform Administrative Requirements, when 
evaluating award applications, awarding agencies must evaluate the 
risks to the program posed by each applicant, and each applicant's 
merits and eligibility. These requirements are designed to ensure that 
applicants for Federal assistance receive a fair and consistent review 
prior to an award decision. This review will assess items such as the 
Applicant's financial stability, quality of management systems, history 
of performance, and single audit findings. In addition, the Uniform 
Administrative Requirements include guidance on audit requirements and 
other award compliance requirements for award Recipients.
    D. Priorities: The purpose of the CMF is to attract private capital 
for and increase investment in the Development, Preservation, 
Rehabilitation, or Purchase of Affordable Housing for primarily 
Extremely Low-Income, Very Low-Income, and Low-Income Families, as well 
as Economic Development Activities, which, In Conjunction With 
Affordable Housing Activities, implement a Concerted Strategy to 
stabilize or revitalize a Low-Income Area or Underserved Rural Area. To 
pursue these objectives, the CDFI Fund has established the following 
priorities for the FY 2018 funding round: (i) Applications where at 
least 20 percent of all rental Affordable Housing units that will be 
financed and/or supported with FY 2018 CMF Awards are targeted to Very 
Low-Income Families and/or at least 20 percent of all Homeownership 
Affordable Housing units that will be financed and/or supported with FY 
2018 CMF Awards are targeted to Low-Income Families; and (ii) 
Applications proposing to use the CMF Award to leverage private capital 
to finance and/or support Affordable Housing Activities and Economic 
Development Activities. Additionally, the CDFI Fund seeks to fund 
Applications serving

[[Page 34686]]

geographically diverse Areas of Economic Distress, including 
Metropolitan Areas and Underserved Rural Areas. In particular, the 
priority for geographic diversity includes funding highly qualified 
Applications that serve states not included in the Service Areas of 
Recipients in the past two CMF rounds (FY 2016 and FY 2017): Iowa, 
Maine, North Dakota and Wyoming as well as the U.S. Virgin Islands, 
Guam, the Northern Mariana Islands, American Samoa and Puerto Rico. 
Finally, the CDFI Fund seeks to fund highly qualified Applications 
proposing to serve areas ``most impacted and distressed'' resulting 
from a major disaster declared in 2017 as identified by the Department 
of Housing and Urban Development (HUD) and published in the Federal 
Register (83 FR 5844).
    E. Funding limitations: The CDFI Fund reserves the right to fund, 
in whole or in part, any, all, or none of the Applications submitted in 
response to this NOFA.

II. Federal Award Information

    A. Funding Availability: The CDFI Fund plans to award approximately 
$142.9 million in grants for the CMF FY 2018 round under this NOFA. 
HERA prohibits the CDFI Fund from obligating more than 15 percent of 
the aggregate available in CMF Awards to any Applicant, its 
Subsidiaries and Affiliates in the same funding round. Affiliated 
entities are not allowed to apply separately under this NOFA. To 
provide an example of the size of awards in past CMF rounds, the CDFI 
Fund notes that in the FY 2017 CMF round, the statutory cap was $18 
million, but the largest amount awarded was $7.5 million, while the 
average award was $3 million. Moreover, given administrative and 
compliance responsibilities for Recipients, the CDFI Fund will not 
accept Applications for the FY 2018 round that request less than 
$500,000, and will not provide awards below $500,000 to any CMF Award 
Recipient for the FY 2018 CMF Round.
    The CDFI Fund reserves the right, in its sole discretion, to 
provide a CMF Award in an amount other than that which the Applicant 
requests; however, the Award amount will not exceed the Applicant's 
award request as stated in its Application. An Applicant may receive 
only one Award through the FY 2018 CMF Round.
    B. Types of Awards: The CDFI Fund will provide CMF Awards in the 
form of grants. CMF Awards must be used to support the eligible 
activities as set forth in 12 CFR 1807.301. CMF Awards cannot be 
``passed through'' to third-party entities, whether Affiliates, 
Subsidiaries, or others, to undertake the eligible activities set forth 
in 12 CFR 1807.301, without the prior written approval of the CDFI 
Fund.
    C. Limitations on using CMF Awards in conjunction with other CDFI 
Fund awards/allocations: 1. A CMF Award Recipient may not use its CMF 
Award and awards/allocations from other CDFI Fund programs to finance 
and/or support activities in the same property unless the CMF Award 
dollars are used to finance/support a different ``phase'' of 
development than what is funded by other CDFI Fund program awards/
allocations. The separate phases of development financing are 
considered to be: (1) Predevelopment; (2) acquisition; (3) site work 
(preconstruction); (4) construction/rehabilitation; (5) permanent 
financing; or (6) bridge financing between two or more phases. If the 
Recipient has received multiple CMF Awards, these awards are not 
subject to this phasing restriction and may be combined in the same 
Project phase. The term ``Recipient'' includes the CMF Award Recipient 
and any Affiliates.
    If providing Homeownership assistance, a CMF Award may be used in 
conjunction with awards/allocations from other CDFI Fund programs only 
if the Project can be divided into such phases and the CMF Award is 
used in a different phase from the other CDFI Fund program awards/
allocations. To clarify, a CMF Award cannot be used for a Homeownership 
property that is permanently financed (or supported) by both the 
Recipient's CMF Award and an award/allocation from another CDFI Fund 
program (e.g., down payment assistance funded from CMF dollars may not 
be combined with a permanent mortgage funded from another CDFI Fund 
program).
    2. Costs financed and/or supported by the Recipient's other awards/
allocations from CDFI Fund programs, including awards from prior CMF 
rounds, may not be counted or reported as Leveraged Costs for the CMF 
Award, as further set forth in the Assistance Agreement. While the 
Recipient's other CMF Awards may be used to finance/support the same 
property, each award must separately meet the program requirements as 
outlined in the applicable Assistance Agreement and the CMF Interim 
Rule (12 CFR part 1807); the same units and Leveraged Costs may not be 
counted towards meeting the programmatic requirements for more than one 
CMF Award. The term ``Recipient'' includes the CMF Award Recipient and 
any Affiliates.
    In all cases, the CMF Award remains subject to the following 
restriction imposed by the CDFI Bond Guarantee Program: Award funds 
received under any CDFI Fund program cannot be used by any participant 
of the CDFI Bond Guarantee Program, including Qualified Issuers, 
Eligible CDFIs, and Secondary Borrowers, to pay principal, interest, 
fees, administrative costs, or issuance costs (including Bond Issuance 
Fees) related to the CDFI Bond Guarantee Program, or to fund the Risk 
Share Pool for a Bond Issue (all capitalized terms used in this 
sentence, other than ``CMF Award'', shall have the meanings ascribed to 
them in the CDFI Bond Guarantee Program regulations and applicable 
guidance).
    D. Anticipated Start Date and Period of Performance: The CDFI Fund 
anticipates the period of performance for the FY 2018 CMF Round to 
begin in early 2019. The period of performance for each CMF Award 
begins with the date that the CDFI Fund announces the Recipients of FY 
2018 CMF Awards and continues until the end of the ten-year period of 
affordability for all Projects financed and/or supported with the CMF 
Award, as set forth at 12 CFR 1807.401(d) and 12 CFR 1807.402, and as 
further set forth in the Assistance Agreement, during which time the 
Recipient must meet certain performance goals.
    E. Eligible Activities: A CMF Award must support or finance 
activities that attract private capital for and increase investment in 
(i) the Development, Preservation, Rehabilitation, or Purchase of 
Affordable Housing for primarily Low-, Very Low- and Extremely Low-
Income Families, and (ii) Economic Development Activities. CMF Awards 
may only be used as follows: (i) To provide Loan Loss Reserves, (ii) to 
capitalize a Revolving Loan Fund, (iii) to capitalize an Affordable 
Housing Fund, (iv) to capitalize a fund to support Economic Development 
Activities, (v) for Risk-Sharing Loans, or (vi) to provide Loan 
Guarantees. No more than 30 percent of a CMF Award may be used for 
Economic Development Activities. For the FY 2018 CMF Round, the CDFI 
Fund will allow all Recipients to use up to 5 percent of their CMF 
Award for Direct Administrative Expenses. The amount available for 
Direct Administrative Expenses may only be used for direct costs (as 
defined by the Uniform Administrative Requirements) incurred by the 
Recipient and related to the financing and/or support of a Project. The 
CDFI Fund considers the tracking of impacts and outcomes associated 
with Projects financed and/or

[[Page 34687]]

supported by a CMF Award to fall under Direct Administrative Expenses. 
Any portion of the amount available for Direct Administrative Expenses 
may be used for direct costs related to the effective tracking and 
evaluation of program or evidence-based outcomes for Projects.

III. Eligibility Information

    A. Eligible Applicants: In order to be eligible to apply for a CMF 
Award, an Applicant must either be a Certified CDFI or a Nonprofit 
Organization, as defined in 12 CFR 1807.104. Table 2 indicates the 
criteria that each entity type must meet in order to be eligible for a 
CMF Award pursuant to this NOFA. Note: A Certified CDFI that is also a 
Nonprofit Organization only needs to meet the Certified CDFI 
eligibility criteria described in Table 2, below, in order to be 
eligible for a CMF Award.

               Table 2--Applicant Eligibility Requirements
------------------------------------------------------------------------
             Category                     Eligibility requirements
------------------------------------------------------------------------
Certified CDFI....................  <bullet> Has been in existence as a
                                     legally formed entity for at least
                                     3 years prior to the AMIS
                                     Application deadline under this
                                     NOFA;
                                    <bullet> Has been determined by the
                                     CDFI Fund to meet the CDFI
                                     certification requirements set
                                     forth in 12 CFR 1805.201 and as
                                     verified in the CDFI's AMIS account
                                     as of the date of this NOFA; and
                                    <bullet> Has not been notified by
                                     the CDFI Fund that its
                                     certification has been terminated.
                                    <bullet> In cases where the CDFI
                                     Fund has provided a Certified CDFI
                                     with written notification that it
                                     no longer meets one or more
                                     certification standards and has
                                     been given an opportunity to cure,
                                     the CDFI Fund will continue to
                                     consider this Applicant to be a
                                     Certified CDFI until it has
                                     received a final determination that
                                     its certification has been
                                     terminated.
Nonprofit Organization............  <bullet> Has been in existence as a
                                     legally formed entity for at least
                                     3 years prior to the AMIS
                                     Application deadline under this
                                     NOFA;
                                    <bullet> Meets the definition of
                                     Nonprofit Organization set forth in
                                     12 CFR 1807.104.
                                    <bullet> Demonstrates, through
                                     articles of incorporation, by-laws,
                                     or other board-approved documents,
                                     that the development or management
                                     of affordable housing are among its
                                     principal purposes; and
                                    <bullet> Demonstrates by providing
                                     an attestation in the Application
                                     that at least thirty-three and one-
                                     third percent of its total assets
                                     are dedicated to the development or
                                     management of affordable housing.
Application type and submission     <bullet> Each Applicant must submit
 method through Grants.gov and       the required Application documents
 Awards Management Information       listed in Table 4.
 System (AMIS).                     <bullet> The CDFI Fund will only
                                     accept Applications that use the
                                     official Application templates
                                     provided on the Grants.gov and AMIS
                                     websites. Applications submitted
                                     with alternative or altered
                                     templates will not be considered.
                                    <bullet> All Applicants must submit
                                     the required documents in two
                                     locations: (1) Grants.gov and (2)
                                     AMIS.
                                       [cir] Grants.gov: Applicants must
                                        submit the Office of Management
                                        and Budget (OMB) Standard Form
                                        (SF) 424 Mandatory (Application
                                        for Federal Assistance) form.
                                       [cir] AMIS: Applicants must
                                        submit all other required
                                        Application materials.
                                       [cir] All Applicants must
                                        register in the Grants.gov and
                                        AMIS systems to submit an
                                        Application successfully. The
                                        CDFI Fund strongly encourages
                                        Applicants to register as early
                                        as possible to meet the
                                        deadlines in Table 1.
                                    <bullet> Grants.gov and the SF-424
                                     Mandatory form:
                                       [cir] Grants.gov is a common
                                        website for federal agencies to
                                        post discretionary funding
                                        opportunities and for grantees
                                        to find and apply to them.
                                       [cir] The SF-424 must be
                                        submitted in Grants.gov before
                                        the other Application materials
                                        are submitted in AMIS.
                                        Applicants are strongly
                                        encouraged to submit their SF-
                                        424 as early as possible via the
                                        Grants.gov portal.
                                       [cir] Because the SF-424 is part
                                        of the Application, if the SF-
                                        424 is not accepted by
                                        Grants.gov, the CDFI Fund will
                                        not review any materials
                                        submitted in AMIS and the
                                        Application will be deemed
                                        ineligible.
                                       [cir] The SF-424 must be
                                        submitted under the FY 2018 CMF
                                        Funding Opportunity Number.
                                    <bullet> AMIS:
                                       [cir] AMIS is the CDFI Fund's
                                        enterprise-wide information
                                        technology system that will be
                                        used to submit and store
                                        organization and Application
                                        information with the CDFI Fund.
                                       [cir] Applicants are only allowed
                                        one Capital Magnet Fund
                                        Application submission in AMIS.
Employer Identification Number      <bullet> Each Applicant must have a
 (EIN).                              unique EIN assigned by the Internal
                                     Revenue Service.
                                    <bullet> The CDFI Fund will reject
                                     an Application submitted with the
                                     EIN of a parent or Affiliate
                                     organization.
                                    <bullet> The EIN of the Applicant
                                     organization in AMIS must match the
                                     EIN on the SF-424 submitted through
                                     Grants.gov.
DUNS number.......................  <bullet> Pursuant to OMB guidance
                                     (68 FR 38402), each Applicant must
                                     apply using its unique DUNS number
                                     in Grants.gov.
                                    <bullet> The CDFI Fund will reject
                                     an Application submitted with the
                                     DUNS number of a parent or
                                     Affiliate organization.
                                    <bullet> The DUNS number of the
                                     Applicant in AMIS must match the
                                     DUNS number on the SF-424 submitted
                                     through Grants.gov.
System for Award Management (SAM).  <bullet> Each Applicant must have an
                                     active SAM registration in order to
                                     submit the required Application
                                     materials through Grants.gov.
                                    <bullet> SAM is a web-based,
                                     government-wide application that
                                     collects, validates, stores, and
                                     disseminates business information
                                     about the federal government's
                                     trading partners in support of the
                                     contract awards, grants, and
                                     electronic payment processes. See
                                     SAM.gov for more information.
                                    <bullet> Applicants must have a DUNS
                                     number and an EIN in order to
                                     register in SAM.
                                    <bullet> Applicants must complete
                                     registration in SAM in order to be
                                     able to complete the Grants.gov
                                     registration and submit an SF-424.
AMIS Account......................  <bullet> Each Applicant must
                                     register as an organization in AMIS
                                     and submit all required Application
                                     materials through the AMIS portal.
                                    <bullet> If the Applicant does not
                                     fully register its organization in
                                     AMIS by the deadline set forth in
                                     Table 1, its Application will be
                                     rejected without further
                                     consideration.
                                    <bullet> The Authorized
                                     Representative must be included as
                                     a ``user'' in the Applicant's AMIS
                                     account.
                                    <bullet> An Applicant that fails to
                                     properly register and update its
                                     AMIS account may miss important
                                     communications from the CDFI Fund
                                     or not be able to successfully
                                     submit an Application.
501(c)(4) status..................  <bullet> Pursuant to 2 U.S.C. 1611,
                                     any 501(c)(4) organization that
                                     engages in lobbying activities is
                                     not eligible to apply for or
                                     receive a CMF Award.
Compliance with Nondiscrimination   <bullet> An Applicant may not be
 and Equal Opportunity Statutes,     eligible to receive an award if
 Regulations, and Executive Orders.  proceedings have been instituted
                                     against it in, by, or before any
                                     court, governmental agency, or
                                     administrative body, and a final
                                     determination, issued within the
                                     last 3 years as of the date of this
                                     NOFA, indicates the Applicant has
                                     violated any of the following laws:
                                     Title VI of the Civil Rights Act of
                                     1964, as amended (42 U.S.C. 2000d);
                                     Section 504 of the Rehabilitation
                                     Act of 1973 (29 U.S.C. 794); the
                                     Age Discrimination Act of 1975 (42
                                     U.S.C. 6101-6107); Title VIII of
                                     the Civil Rights Act of 1968, as
                                     amended (42 U.S.C. 3601 et seq.);
                                     and Executive Order 13166,
                                     Improving Access to Services for
                                     Persons with Limited English
                                     Proficiency.
Debarment Check...................  <bullet> The CDFI Fund will conduct
                                     a debarment check and will not
                                     consider an Application if the
                                     Applicant is delinquent on any
                                     Federal debt or otherwise
                                     ineligible to receive a Federal
                                     award.

[[Page 34688]]

 
Depository Institution Holding      <bullet> In the case where a CDFI
 Company Applicant.                  Depository Institution Holding
                                     Company Applicant intends to carry
                                     out the activities of its award
                                     through its Subsidiary CDFI Insured
                                     Depository Institution, the
                                     Application must be submitted by
                                     the CDFI Depository Institution
                                     Holding Company and reflect the
                                     activities and financial
                                     performance of the Subsidiary CDFI
                                     Insured Depository Institution.
                                    <bullet> The Authorized
                                     Representative of the Depository
                                     Institution Holding Company
                                     Applicant must certify that the
                                     information included in the
                                     Application represents that of the
                                     Subsidiary CDFI Insured Depository
                                     Institution, and that the Award
                                     will be used to support the
                                     Subsidiary CDFI Insured Depository
                                     Institution for the eligible
                                     activities outlined in the
                                     Application.
Insured CDFI--Insured Credit Union  <bullet> To be eligible for an
 and Insured Depository              Award, each Insured Depository
 Institution.                        Institution Applicant must have a
                                     CAMELS/CAMEL rating (rating for
                                     banks and credit unions,
                                     respectively), by its Federal
                                     regulator of at least ``3.''
                                    <bullet> Organizations with CAMELS/
                                     CAMEL ratings of ``4 or 5'' will
                                     not be eligible for awards.
                                    <bullet> Organizations with a Prompt
                                     Corrective Action directive from
                                     its regulator will not be eligible
                                     for awards.
                                    <bullet> The CDFI Fund will also
                                     evaluate material concerns
                                     identified by the Appropriate
                                     Federal Banking Agency in
                                     determining eligibility of Insured
                                     Depository Institution Applicants.
------------------------------------------------------------------------

    Any Applicant that does not meet the criteria in Table 2 is 
ineligible to apply for a CMF Award under this NOFA. Further, Section 
III.B describes additional considerations applicable to prior 
Recipients and/or Allocatees under any CDFI Fund program.
    B. Prior Recipients and/or Allocatees: Applicants must be aware 
that success in a prior round of any of the CDFI Fund's programs is not 
indicative of success under this NOFA. Prior Recipients and/or 
Allocatees under any CDFI Fund program are eligible to apply under this 
NOFA, except as noted in Table 3:

 Table 3--Eligibility Requirements for Applicants Which Are Prior Award/
                          Allocation Recipients
------------------------------------------------------------------------
             Criteria                            Description
------------------------------------------------------------------------
Pending resolution of               <bullet> The CDFI Fund will consider
 noncompliance.                      an Application submitted by an
                                     Applicant that has pending
                                     noncompliance issues if the CDFI
                                     Fund has not yet made a final
                                     compliance determination.
Noncompliance status..............  <bullet> The CDFI Fund will not
                                     consider an Application submitted
                                     by an Applicant that has a
                                     previously executed award
                                     agreement(s) if, as of the date of
                                     the NOFA, (i) the CDFI Fund has
                                     made a determination that such
                                     entity is noncompliant with a
                                     previously executed agreement and
                                     (ii) the CDFI Fund has provided
                                     written notification that such
                                     entity is ineligible to apply for
                                     or receive any future CDFI Fund
                                     awards or allocations. Such
                                     entities will be ineligible to
                                     submit an Application for such time
                                     period as specified by the CDFI
                                     Fund in writing.
                                    <bullet> The CDFI Fund will not
                                     consider any Applicant that has
                                     defaulted on a CDFI Fund program
                                     loan within five years of the AMIS
                                     Application deadline.
------------------------------------------------------------------------

    C. Contacting the CDFI Fund: Accordingly, Applicants that are prior 
Recipients and/or Allocatees under any CDFI Fund program are advised to 
comply with requirements specified in an Assistance Agreement, 
allocation agreement, bond loan agreement, or agreement to guarantee. 
All outstanding reporting and compliance questions should be directed 
to the Office of Certification, Compliance Monitoring and Evaluation 
help desk by AMIS Service Requests or by telephone at (202) 653-0421; 
except in the case of Capital Magnet Fund reporting and compliance 
questions, which should be directed to the Capital Magnet Fund help 
desk by completing a Service Request through the Awards Management 
Information System using ``CMF--Compliance'' as the Service Request 
type. Alternatively, the public can contact Capital Magnet Fund staff 
via email at <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="a9eae4efe9cacdcfc087dddbccc8da87cec6df">[email protected]</a>. The CDFI Fund will not respond to 
Applicants' reporting, compliance, or disbursement telephone calls or 
email inquiries that are received after 5:00 p.m. ET on September 13, 
2018 until after the Application deadline. The CDFI Fund will respond 
to technical issues related to AMIS Accounts through 5:00 p.m. ET on 
September 17, 2018, via AMIS Service Requests, or at 
<a href="/cdn-cgi/l/email-protection#a1e0ece8f2e1c2c5c7c88fd5d3c4c0d28fc6ced7"><span class="__cf_email__" data-cfemail="01404c485241626567682f75736460722f666e77">[email protected]</span></a>, or by telephone at (202) 653-0422.
    D. Cost sharing or matching funds requirements: Not applicable.
    E. Other Eligibility Criteria:
    1. Entities that Submit Applications Together with Affiliates: As 
part of the Application review process, the CDFI Fund considers whether 
Applicants are Affiliates, as such term is defined in 12 CFR 1807.104. 
If an Applicant and its Affiliate(s) wish to submit Applications, they 
must do so through one of the Affiliated entities, in one Application; 
an Applicant and its Affiliates may not submit separate Applications. 
If Affiliates submit multiple or separate Applications, the CDFI Fund 
may, at its discretion, reject all such Applications received or select 
only one of the submitted Applications to deem eligible, assuming that 
Application meets all other eligibility criteria in Section III of this 
NOFA.
    Furthermore, an Applicant that receives an award in this CMF round 
may not become an Affiliate of another Applicant that receives an award 
in this CMF round at any time after the submission of a CMF Application 
under this NOFA. This requirement will also be a term and condition of 
the Assistance Agreement (see additional Application guidance materials 
on the CDFI Fund's website at http://www.cdfifund.gov/cmf for more 
details).
    2. An Applicant will not be eligible to receive a CMF Award if the 
Applicant fails to demonstrate in the Application that its CMF Award 
would result in Eligible Project Costs (Leveraged Costs plus those 
costs funded by the CMF Award) that equal at least 10 times the amount 
of the CMF Award. Note that no costs attributable to Direct 
Administrative Expenses may be considered Eligible Project Costs.

IV. Application and Submission Information

    A. Address to Request Application Package: Application materials 
can be found on the Grants.gov and the CDFI Fund's website at 
www.cdfifund.gov/cmf. Applicants may request a paper version of any 
Application material by contacting the CDFI Fund Help Desk by email at 
<a href="/cdn-cgi/l/email-protection#33505e55735057555a1d47415652401d545c45"><span class="__cf_email__" data-cfemail="89eae4efc9eaedefe0a7fdfbece8faa7eee6ff">[email protected]</span></a> or by phone at (202) 653-0421.
    B. Content and Form of Application Submission: The CDFI Fund will 
post to its website, at www.cdfifund.gov/cmf,

[[Page 34689]]

instructions for accessing and submitting an Application. Detailed 
Application content requirements are found in the Application and 
related guidance documents.
    All Applications must be prepared in English and calculations must 
be made in U.S. dollars. Table 4 lists the required funding Application 
documents for the FY 2018 CMF Round. Applicants must submit all 
required documents for the Application to be deemed complete. The CDFI 
Fund reserves the right to request and review other pertinent or public 
information that has not been specifically requested in this NOFA or 
the Application. Information submitted by the Applicant that the CDFI 
Fund has not specifically requested will not be reviewed or considered 
as part of the Application. Information submitted must accurately 
reflect the Applicant's activities and/or its Subsidiary Insured 
Depository Institution, in the case where the Applicant is an Insured 
Depository Institution Holding Company.

                 Table 4--Funding Application Documents
------------------------------------------------------------------------
      Application document         Submission format       Required?
------------------------------------------------------------------------
Standard Form (SF) 424 Mandatory  Fillable PDF in     Required for all
 Form.                             Grants.gov.         Applicants.
CMF Application.................  AMIS..............  Required for all
                                                       Applicants.
------------------------------------------------------------------------
                     Attacihments to the Application
------------------------------------------------------------------------
Audited financial statements,     PDF in AMIS.......  Required for all
 including any Single Audit                            Applicants.
 filed with the Federal Audit
 Clearinghouse, if the Applicant
 was required to have a Single
 Audit completed (most recent 2
 fiscal years).
Any management letters related    PDF in AMIS.......  Required for all
 to the audited financial                              Applicants.
 statements (most recent 2
 fiscal years).
State Charter, Articles of        PDF in AMIS.......  Required only for
 Incorporation, or other                               Applicants that
 establishing documents                                are not Certified
 designating that the Applicant                        CDFIs.
 is a nonprofit or not-for-
 profit entity under the laws of
 the organization's State of
 formation.
A certification demonstrating     PDF in AMIS.......  Required only for
 tax exempt status from the IRS.                       Applicants that
 For Applicants that are                               are not Certified
 governmental instrumentalities                        CDFIs.
 only, and as long as all other
 eligibility requirements are
 met, the CDFI Fund will accept
 a legal opinion from counsel,
 in form and substance
 acceptable to the CDFI Fund,
 opining that the Applicant is
 exempt from federal taxation.
Articles of incorporation, by-    PDF in AMIS.......  Required only for
 laws or other documents                               Applicants that
 demonstrating that the                                are not Certified
 Applicant has a principal                             CDFIs.
 purpose of managing or
 developing affordable housing.
------------------------------------------------------------------------

    The CDFI Fund has a sequential, two-step process that requires the 
submission of Application documents in separate systems and on separate 
deadlines. The SF-424 form must be submitted through Grants.gov and all 
other Application documents through the AMIS portal. The CDFI Fund will 
not accept Applications via email, mail, facsimile, or other forms of 
communication, except in extremely rare circumstances that have been 
pre-approved by the CDFI Fund. The separate Application deadlines for 
the SF-424 and all other Application materials are listed in Tables 1 
and 5. Only the Authorized Representative or Application Point of 
Contact designated in AMIS may submit the Application through AMIS.
    Applicants are strongly encouraged to submit the SF-424 as early as 
possible through Grants.gov in order to provide sufficient time to 
resolve any submission problems. Applicants should contact Grants.gov 
directly with questions related to the registration or submission 
process, as the CDFI Fund does not administer the Grants.gov system.
    The CDFI Fund strongly encourages Applicants to start the 
Grants.gov registration process as soon as possible, as it may take 
several weeks to complete (refer to the following link: http://www.grants.gov/web/grants/register.html). An Applicant that has 
previously registered with Grants.gov must verify that its registration 
is current and active. If an Applicant has not previously registered 
with Grants.gov, it must first successfully register with SAM, as 
described in Section IV.D below.
    C. Dun and Bradstreet Data Universal Numbering System (DUNS): 
Pursuant to the Uniform Administrative Requirements, each Applicant 
must provide as part of its Application submission, a valid Dun & 
Bradstreet Data Universal Numbering System (DUNS) number. Any Applicant 
without a DUNS number will not be able to register in SAM or register 
and submit an Application in the Grants.gov system. Please allow 
sufficient time for Dun & Bradstreet to respond to inquiries and/or 
requests for DUNS numbers.
    D. System for Award Management (SAM): Any entity applying for 
Federal grants or other forms of Federal financial assistance through 
Grants.gov must be registered in SAM before submitting its Application 
materials through that platform. The SAM registration process can take 
a month or longer to complete. A signed notarized letter identifying 
the authorized Entity Administrator for the entity associated with the 
DUNS number is required by SAM before the registration will be 
activated. This requirement is applicable to new entities registering 
in SAM, as well as existing entities with registrations being updated 
or renewed in SAM. Applicants cannot register in SAM without both an 
EIN and DUNS number. Applicants that have previously completed the SAM 
registration process must verify that their SAM accounts are current 
and active. Each Applicant must continue to maintain an active SAM 
registration with current information at all times during which it has 
an active Federal award or an application under consideration by a 
Federal awarding agency. The CDFI Fund will not consider any Applicant 
that fails to properly register or activate its SAM account and, as a 
result, is unable to submit its Application by the Application 
deadline. Applicants must contact SAM directly with questions related 
to registration or SAM account changes, as the CDFI Fund does not 
maintain this system. For more information about SAM, please visit 
https://www.sam.gov.

[[Page 34690]]



                                Table 5--Grants.gov Registration Timeline Summary
----------------------------------------------------------------------------------------------------------------
                  Step                                 Agency                Estimated minimum time to complete
----------------------------------------------------------------------------------------------------------------
Obtain a DUNS number....................  Dun & Bradstreet...............  One Week.*
Register in SAM.gov.....................  System for Award Management      One Month.*
                                           (SAM).
Register in Grants.gov..................  Grants.gov.....................  One Week.**
----------------------------------------------------------------------------------------------------------------
* Applicants are advised that the stated duration are estimates only and represent minimum timeframes. Actual
  timeframes may take longer. The CDFI Fund will not consider any Applicant that fails to properly register or
  activate its SAM account, has not yet received a DUNS number, and/or fails to properly register in Grants.gov.
** This estimate assumes an Applicant has a DUNS number, an EIN number, and is already registered in SAM.gov.

    E. Submission Dates and Times:
    1. Submission Deadlines: Table 6 lists the deadlines for submission 
of the documents related to the FY 2018 CMF Funding Round:

                                  Table 6--FY 2018 CMF Deadlines for Applicants
----------------------------------------------------------------------------------------------------------------
                                                     Time--eastern time
            Document                  Deadline              (ET)                    Submission method
----------------------------------------------------------------------------------------------------------------
SF-424 Mandatory form..........  August 20, 2018...  11:59 p.m. ET.....  Electronically via Grants.gov.
Create AMIS Account (if the      August 27, 2018...  11:59 p.m. ET.....  Electronically via AMIS.
 Applicant does not already
 have one).
CMF Application and Required     September 17, 2018  5:00 p.m. ET......  Electronically via AMIS.
 Attachments.
----------------------------------------------------------------------------------------------------------------

    2. Confirmation of Application Submission in Grants.gov and AMIS: 
Applicants are required to submit the OMB SF-424 Mandatory Form through 
the Grants.gov system, under the FY 2018 Capital Magnet Fund Funding 
Opportunity Number (listed at the beginning of this NOFA). All other 
required Application materials must be submitted through the AMIS 
website. Application materials submitted through each system are due by 
the applicable deadline listed in Table 6. Applicants must submit the 
SF-424 by an earlier deadline than that of the other required 
Application materials in AMIS. If the SF-424 is not successfully 
accepted through Grants.gov by the corresponding deadline, the 
Applicant will not be able to submit the additional Application 
materials in AMIS, and the Application will be deemed ineligible. Thus, 
Applicants are strongly encouraged to submit the SF-424 as early as 
possible in the Grants.gov portal, given submission problems may impact 
the ability to submit a complete Application.
    (a) Grants.gov Submission Information: Each Applicant will receive 
an initial email from Grants.gov immediately after submitting the SF-
424, confirming that the submission has entered the Grants.gov system. 
This email will contain a tracking number for the submitted SF-424. 
Within 48 hours, the Applicant will receive a second email which will 
indicate if the submitted SF-424 was either successfully validated or 
rejected with errors. However, Applicants should not rely on the email 
notification from Grants.gov to confirm that their SF-424 was 
validated. Applicants are strongly encouraged to use the tracking 
number provided in the first email to closely monitor the status of 
their SF-424 by checking Grants.gov directly. The Application materials 
submitted in AMIS are not accepted by the CDFI Fund until Grants.gov 
has validated the SF-424. If using the Grants.gov Workspace function, 
please note that the Application package has not been submitted if you 
have not received a tracking number.
    (b) AMIS Submission Information: AMIS is a web-based portal where 
Applicants will directly enter their Application information and add 
required attachments listed in Table 4. Each Applicant must register as 
an organization in AMIS in order to submit the required Application 
materials through this portal. AMIS will verify that the Applicant 
provided the minimum information required to submit an Application. 
Applicants are responsible for the quality and accuracy of the 
information and attachments included in the Application submitted in 
AMIS. The CDFI Fund strongly encourages the Applicant to allow 
sufficient time to confirm the Application content, review the material 
submitted, and remedy any issues prior to the Application deadline. 
Applicants can only submit one Application in AMIS. Upon submission, 
the Application will be locked and cannot be resubmitted, edited, or 
modified in any way. The CDFI Fund will not unlock or allow multiple 
Application submissions.
    Prior to submission, each Application in AMIS must be signed by an 
Authorized Representative. An Authorized Representative is an officer, 
or other individual, who has the actual authority to legally bind and 
make representations on behalf of the Applicant; consultants working on 
behalf of the Applicant cannot be designated as Authorized 
Representatives. The Applicant may include consultants as Application 
point(s) of contact, who will be included on any communication 
regarding the Application and will be able to submit the Application, 
but cannot sign the Application. The Authorized Representative and/or 
Application point(s) of contact must be included as ``Contacts'' in the 
Applicant's AMIS account. The Authorized Representative must also be a 
``user'' in AMIS. An Applicant that fails to properly register and 
update its AMIS account may miss important communications from the CDFI 
Fund or fail to submit an Application successfully. Only the Authorized 
Representative or Application point of contact, listed in the 
Application, can submit the Application in AMIS. After submitting its 
Application, the Applicant will not be permitted to revise or modify 
its Application in any way or attempt to negotiate the terms of an 
award.
    3. Multiple Application Submissions: Applicants are only permitted 
to submit one complete Application. However, the

[[Page 34691]]

CDFI Fund does not control Grants.gov, which does allow for multiple 
application submissions. Thus, if an Applicant submits multiple SF-424 
Applications in Grants.gov, the CDFI Fund will only review the SF-424 
Application submitted in Grants.gov that is attached to the AMIS 
Application. Applicants can only submit one Application through AMIS.
    4. Late Submission: The CDFI Fund will not accept an Application 
submitted after the applicable Grants.gov or AMIS Application deadline, 
except where the submission delay was a direct result of a Federal 
government administrative or technological error. This exception 
includes any errors associated with Grants.gov, SAM.gov, AMIS or any 
other applicable government system. Please note that this exception 
does not apply to errors arising from obtaining a DUNS number from Dun 
& Bradstreet, which is not a government entity. An Applicant unable to 
make timely submission of its Application due to any errors in the 
process of obtaining a DUNS number will not be allowed to submit its 
Application after the Application deadline has passed. In the event of 
a government administrative or technological error causing delay, the 
Applicant must submit a request for acceptance of late Application 
submission and include documentation of the error no later than two 
business days after the applicable Application deadline. The CDFI Fund 
will not respond to requests for acceptance of late Application 
submissions after that time period. Applicants must submit late 
Application submission requests via Service Request in AMIS with the 
subject line of ``FY2018 CMF: Late Application Submission Request.''
    5. Intergovernmental Review: Not Applicable.
    6. Funding Restrictions: CMF Awards are limited by the following:
    (a) A Recipient shall use CMF Award funds only for the eligible 
activities set forth in 12 CFR 1807.301 and as described in Section 
II.C and Section II.E of this NOFA and its Assistance Agreement.
    (b) A Recipient may not disburse CMF Award funds to an Affiliate, 
Subsidiary, or any other entity without the CDFI Fund's prior written 
approval.
    (c) CMF Award dollars shall only be paid to the Recipient.
    (d) The CDFI Fund, in its sole discretion, may pay CMF Awards in 
amounts, or under terms and conditions, which are different from those 
requested by an Applicant. However, the CDFI Fund will not grant an 
Award in excess of the amount requested by the Applicant.

V. Application Review Information

    A. Criteria: All complete and eligible Applications will be 
reviewed in accordance with the criteria and procedures described in 
the CMF Interim Rule, this NOFA, the Application guidance, and the 
Uniform Administrative Requirements. As part of the review process, the 
CDFI Fund reserves the right to contact the Applicant by telephone, 
email, mail, or through an on-site visit for the sole purpose of 
clarifying or confirming Application information at any point during 
the review process. The CDFI Fund reserves the right to collect such 
additional information from Applicants as it deems appropriate. If 
contacted, the Applicant must respond within the time period 
communicated by the CDFI Fund or its Application may be rejected. For 
the sake of clarity, specific application evaluation criteria are 
described in the context of the overall Application review and 
selection process described in Section V.B. below.
    B. Review and Selection Process:
    The CDFI Fund will evaluate each complete and eligible Application 
using the multi-phase review process described in this Section. For the 
first two parts of the review process, the Quantitative Assessment and 
External Review, the Applications will be grouped into two categories: 
(1) Financing entities and (2) housing developers/managers. Certified 
CDFIs will be categorized as financing entities. Nonprofit 
Organizations will select whether they are primarily financing entities 
or housing developers/managers. These two groups will be evaluated on 
the criteria listed in this section. The CDFI Fund may elect to use a 
different criteria where appropriate, in order to evaluate the 
financial health, capacity, and strategies of these distinct entity 
types. In general, these differences are noted in this section and the 
Application.
    1. Quantitative Assessment: Each complete and eligible Application 
will receive a numeric score based on the responses to quantitative 
questions in the Application. Applications may receive a score of up to 
100 points based on the following factors outlined in Table 7.

                                    Table 7--Quantitative Assessment Factors
----------------------------------------------------------------------------------------------------------------
                  Section                       Points                      Assessment criteria
----------------------------------------------------------------------------------------------------------------
Business and Leveraging Strategy...........           40  <bullet> Private leverage multiplier.
                                                          <bullet> Reasonableness of projected activities based
                                                           on track record.
                                                          <bullet> Applicant-level leverage multiplier.
                                                          <bullet> Whether the Application is proposing to serve
                                                           Iowa, Maine, North Dakota, Wyoming the U.S. Virgin
                                                           Islands, Guam, the Northern Mariana Islands, American
                                                           Samoa or Puerto Rico.
Community Impact...........................           35  <bullet> Percent of rental housing units targeted to
                                                           Very Low-Income (VLI) or below (50 percent of AMI or
                                                           below).
                                                          <bullet> Percent of Homeownership units targeted to
                                                           Low-Income or below (80 percent of AMI or below).
                                                          <bullet> Relevant track record of financing and/or
                                                           supporting units targeted to VLI or LI families.
                                                          <bullet> Commitment to only finance Economic
                                                           Development Activities in Low-Income Areas (if
                                                           proposing Economic Development Activities).
                                                          <bullet> Percent of housing units to be financed and/
                                                           or supported in Areas of Economic Distress.
Organizational Capacity....................           25  <bullet> Capitalization.
                                                          <bullet> Operating Performance.
                                                          <bullet> Liquidity.
                                                          <bullet> Audit Results.
----------------------------------------------------------------------------------------------------------------

    Within the Business and Leveraging Strategy Section of the 
Quantitative Assessment, an Applicant will generally score more 
favorably to the extent it: Proposes to leverage a higher multiplier of 
private capital (up to 10 times the amount of the CMF Award); has a 
volume of projected activities supported by its track record; and is 
proposing to leverage some portion of capital at the Applicant-level. 
An Applicant will also score slightly more favorably if it is proposing 
to serve Iowa, Maine, North Dakota, Wyoming, the U.S. Virgin Islands, 
Guam, the Northern Mariana Islands, American Samoa or Puerto Rico.
    Within the Community Impact Section, an Applicant will generally

[[Page 34692]]

score more favorably to the extent that it commits to one or more of 
the following: Financing and/or supporting a higher percentage of 
rental housing units targeted to Very Low-Income Families (if proposing 
to use CMF for rental housing), and/or financing and/or supporting a 
higher percentage of Homeownership units targeted to Low-Income 
Families (if proposing to use CMF for Homeownership). The Applicant 
will also score more favorably to the extent that it commits to: 
Financing and/or supporting Economic Development Activities in Low-
Income Areas only (if proposing to use CMF for Economic Developments 
Activities), and financing and/or supporting a higher percentage of 
units located in Areas of Economic Distress. Areas of Economic Distress 
are census tracts: (a) Where at least 20 percent of households that are 
Very Low-Income (50 percent of AMI or below) spend more than half of 
their income on housing; or (b) where the unemployment rate is at least 
1.5 times the national average; or (c) that are Low-Income Housing Tax 
Credit Qualified Census Tracts; or (d) where greater than 20 percent of 
households have incomes below the poverty rate and the rental vacancy 
rate is at least 10 percent; or (e) where greater than 20 percent of 
the households have incomes below the poverty rate and the 
homeownership vacancy rate is at least 10 percent; or (f) are 
Underserved Rural Areas as defined in the CMF Interim Rule (as amended 
February 8, 2016; 12 CFR part 1807).
    Within the Financial Health section, Applicants will generally 
score more favorably to the extent that their 3-year financial data 
indicate, among other things, the following: Strong capitalization; 
strong operating performance; strong liquidity; and that the Applicant 
has not had any negative findings (e.g., opinion other than 
unqualified; a ``going concern paragraph;'' repeat findings of 
reportable conditions; material weaknesses in internal control) in any 
of the three most recently completed annual audits, including its 
Single Audit, if applicable.
    Once the quantitative score is determined, Applicants in each of 
the two categories (financing entities and housing developers/managers) 
will be ranked in descending order based on their quantitative review 
score. The top 80 percent of Applications in each category will be 
forwarded to the next level of review: External Review. The CDFI Fund 
reserves the right to forward additional Applications to the External 
Review phase in order to ensure that a diversity of geographies 
(including different states as well as Metropolitan and Rural Areas) 
are served by the Applicants reviewed in the External Review phase. The 
CDFI Fund also reserves the right to forward all Applicants to the 
External Review phase, regardless of Quantitative Assessment score, if 
fewer than 140 CMF Applications are received.
    2. External Review: Applications that advance from the Quantitative 
Assessment will be separately scored by two or more external non-
Federal reviewers who are selected based on criteria that include: A 
professional background in affordable housing or a background community 
and economic development finance with experience with affordable 
housing. These reviewers must complete the CDFI Fund's conflict of 
interest process and be approved by the CDFI Fund. Reviewers will be 
assigned a set number of Applications, consisting of either financing 
entity Applicants or housing developer/manager Applicants, to review. 
The reviewer will provide a score for each of the Applications assessed 
in accordance with the scoring criteria outlined in Section V.B.2 of 
this NOFA and the Application materials.
    The external reviewer's evaluation will result in the Application 
being awarded up to 100 total points by each reviewer. These points 
will be distributed across three sections: Business and Leveraging 
Strategy (40 possible points), Community Impact (35 possible points), 
and Organizational Capacity (25 possible points). An Applicant's final 
External Review score will be a composite based on the external 
reviewers' evaluation and Quantitative Assessment factors. The majority 
of the score will be based on the external reviewers' evaluation.
    (a) Business and Leveraging Strategy (40 points): In the Business 
and Leveraging Strategy section, the Applicant will address: (i) The 
needs of communities and persons in its proposed Service Area and the 
extent to which the proposed strategy addresses these needs; (ii) the 
affordable housing, economic development, and financing gaps addressed 
by its business strategy; (iii) the projected CMF activities and track 
record; (iv) the role CMF plays in its project financing strategy; (v) 
its strategy for leveraging private capital with a CMF Award; and (vi) 
its strategy for leveraging its CMF Award at the Enterprise-level, 
through re-investments, and/or at the Project-level (as applicable).
    An Applicant will generally score more favorably in the criteria 
evaluated by the external reviewer to the extent that it: (i) Clearly 
aligns its proposed CMF Award activities with the affordable housing 
needs and financing gaps it identifies; (ii) demonstrates that its 
strategy and activities will result in more favorable financing rates 
and terms; (iii) demonstrates that its projected activities are 
achievable based on the Applicant's strategy and track record; (iv) 
describes a clear process for locating projects and proposes activities 
that have a clear need for CMF financing; (v) has a credible pipeline 
of projects; (vi) has a clear strategy for and track record of 
leveraging private capital; and (vii) has a clear strategy for and 
demonstrates a track record of leveraging funds at the Enterprise-
level, through re-investments, and/or at the Project-level (as 
applicable). The extent to which the Applicant proposes to meet the 
disaster recovery needs of the areas ``most impacted and distressed'' 
resulting from a major disaster declared in 2017 (as identified by HUD 
and published in the Federal Register at 83 FR 5844) will also be 
considered in the External Review phase.
    (b) Community Impact (35 points): In the Community Impact Section, 
the Applicant will address: (i) The extent to which the Applicant's 
strategy is likely to lead to the Affordable Housing and/or Economic 
Development Activities impacts referenced in the Application; (ii) its 
strategy and track record of financing and/or supporting housing units 
targeted to Low-Income Families (for Homeownership) and to Very Low-
Income Families (for rental); (iii) its plans for financing and/or 
supporting Affordable Housing in Areas of Economic Distress; (iv) its 
community engagement and partnerships; (v) if applicable, its strategy 
and track record of financing and/or supporting Economic Development 
Activities and how these activities fit in a Concerted Strategy and 
will benefit the residents of nearby Affordable Housing.
    An Applicant will generally score more favorably in the criteria 
evaluated by the external reviewer to the extent that it: (i) 
Demonstrates how its business strategy will result in one or more of 
the Affordable Housing and/or Economic Development Activities impacts 
identified in the Application and the extent to which it has 
articulated and quantified measurements and evidence to support these 
impacts; (ii) demonstrates a clear and compelling strategy for 
financing and/or supporting housing units targeted to Low-Income 
Families (for Homeownership) and Very-Low Income Families (for rental); 
(iii) presents a strong ability to finance and/or support Affordable 
Housing in Areas of Economic Distress; (iv) has community engagement 
and

[[Page 34693]]

partnerships that will lead to greater unit production, allow the 
Applicant to serve geographic areas it otherwise could not reach, and/
or result in identified community impacts that benefit Affordable 
Housing residents; and (v) for Economic Development Activities, 
demonstrates how its proposed Economic Development Activities fit 
within a Concerted Strategy and will benefit the residents of the 
nearby Affordable Housing.
    (c) Organizational Capacity (25 points): In the Organizational 
Capacity section, the Applicant will discuss: (i) Its management team 
and key staff; (ii) the roles and responsibilities of those staff in 
managing a CMF Award; (iii) its past experience managing Federal awards 
(including past CMF Awards); and (iv) its financial health and lending 
or property portfolio (as applicable).
    An Applicant will generally score more favorably in the criteria 
evaluated by the external reviewer to the extent that it demonstrates: 
(i) Strong qualifications of its key personnel with respect to their 
skills and experience in identifying investments, underwriting or 
developing similar projects (as applicable), managing a portfolio of 
similar activities and ensuring compliance with program requirements; 
(ii) success in administering prior CMF Awards, CDFI and/or other 
Federal program awards; (iii) strong financial health; and (iv) solid 
portfolio performance (as applicable).
    (d) Scoring anomaly: If, in the case of a particular Application, 
the reviewers' total External Review scores vary significantly from 
each other, the CDFI Fund may, in its sole discretion, obtain the 
evaluation and numeric scoring of an additional reviewer to determine 
whether the anomalous score should be replaced with the score of the 
additional reviewer.
    3. Internal Review: At the conclusion of the External Review phase, 
each group of Applications (financing entities and housing developers/
managers) will be ranked separately based on their External Review 
score. The CMF Program Manager will then determine the overall number 
of Applications that will be initially forwarded for Internal Review. 
The CMF Program Manager may elect to initially forward up to 50 
Applications to the Internal Review phase to receive further 
consideration for a CMF Award. Such Applications will be forwarded for 
Internal Review in descending order of External Review score. The 
forwarded Applications will be drawn from the financing entity and 
housing developer/manager groups in proportion to each group's 
representation in the overall Application pool. For example, if the 
Applicant pool is 60 percent financing entities and 40 percent housing 
developers/managers and the CMF Program Manager elects to forward 50 
Applications to the Internal Review Phase, the highest scoring 30 
Applications from the financing entity group and the highest scoring 20 
Applications from the housing developers/managers group would be 
forwarded to Internal Review.
    These forwarded Applications will constitute the highly qualified 
pool. During the Internal Review, CDFI Fund staff will prioritize the 
Applications in the highly qualified pool for an award based on a 
combination of the following criteria: (i) Final External Review score; 
(ii) alignment with CMF statutory and policy priorities; (iii) the 
overall quality of the Applicant's strategy; and (iv) the Applicant's 
organizational capacity and financial health. The CDFI Fund will not 
attempt to ensure any specific balance of financing entities and 
housing developers/managers in the final Award pool.
    In assessing the Application's alignment with CMF statutory and 
policy priorities, CDFI Fund staff will consider the following factors, 
including, but not limited to: The Applicant's proposed activities in 
Areas of Economic Distress; income targeting of the portfolio of 
Affordable Housing units to be financed and/or supported; the amount of 
private capital it will leverage with a CMF Award; and the amount of 
new Enterprise-level private capital that the Applicant will attract to 
its Service Area.
    In assessing the quality of the Applicant's strategy, the CDFI Fund 
staff will consider the following factors, including, but not limited 
to: (i) The quality of the Applicant's strategy with respect to how the 
strategy and financing activities address identified community needs; 
(ii) whether the proposed financing activities will help to fill the 
financing gaps in their market; (iii) whether the CMF funds will 
contribute to the Applicant offering more favorable rates and terms 
than are currently available in its Service Area; (iv) whether the 
Applicant's projections are supported by its organizational track 
record, as well as the quality of its pipeline; (v) whether the 
proposed deployment/redeployment schedule is realistic, achievable and 
risk has been appropriately considered; (vi) the likely success of the 
strategy to leverage private capital; (vii) whether the strategy is 
adaptable to changing market conditions; (viii) whether the Applicant's 
strategy is likely to create identified community impacts and the 
extent to which the Applicant has articulated quantifiable measurements 
and evidence to support these impacts; (ix) the Applicant's approach 
for financing/supporting Affordable Housing in Areas of Economic 
Distress and meeting Affordable Housing income targeting goals; and (x) 
to the extent the Applicant is proposing to undertake Economic 
Development Activities, how those activities are part of a Concerted 
Strategy and will benefit residents of affordable housing.
    In assessing the Applicant's organizational capacity and financial 
health, the CDFI Fund Staff will consider the following factors, 
including, but not limited to, the Applicant's: Financial position and 
organizational strength; ability to meet Federal Award management 
standards and file appropriate reports and address findings from 
audits; and staff capacity. Applicants may be re-prioritized for an 
Award or Award amounts may be reduced as a result of this analysis.
    In the case of an Applicant that has received awards from other 
Federal programs, the CDFI Fund reserves the right to contact officials 
from the appropriate Federal agency or agencies to determine whether 
the Recipient is in compliance with current or prior award agreements, 
and to take such information into consideration before making a CMF 
Award.
    In addition to the criteria outlined above, the Applicant's ability 
to deploy the CMF Award in a timely manner will be a key determinant in 
funding recommendation. Deployment considerations may include the 
Applicant's track record of activities compared with projections, the 
Applicant's progress in committing and/or deploying past CMF Awards, 
and whether the Applicant received a FY 2018 CDFI/NACA Program award 
for a similar business strategy as the proposed use of the CMF Award. 
The CDFI Fund may also consider the geographies served when determining 
funding recommendations.
    4. Selection: Once Applications have been internally evaluated and 
preliminary award determinations have been made, the Applications will 
be forwarded to a selecting official for a final award determination. 
After preliminary award determinations are made, the selecting official 
will review the list of potential Recipients to determine whether the 
Recipient pool meets the following statutory objectives:
    (a) The potential Recipients' proposed Service Areas collectively 
represent broad geographic coverage throughout the United States; and

[[Page 34694]]

    (b) The potential Recipients' proposed activities equitably 
represent both Metropolitan Areas and Rural Areas. For the purposes of 
the FY 2018 CMF Round, the term Rural Areas is defined per 12 CFR 
1282.1 (Enterprise Duty To Serve Final Rule) as (i) A census tract 
outside of a Metropolitan Statistical Area as designated by the Office 
of Management and Budget; or (ii) A census tract in a Metropolitan 
Statistical Area as designated by the Office of Management and Budget 
that is outside of the Metropolitan Statistical Area's Urbanized Areas, 
as designated by the U.S. Department of Agriculture's (USDA) Rural-
Urban Commuting Area (RUCA) Code #1, and outside of tracts with a 
housing density of over 64 housing units per square mile for USDA's 
RUCA Code #2. The CDFI Fund will publish a dataset indicating which 
census tracts are designated as Rural Areas for the FY 2018 Round on 
its website.
    The CDFI Fund reserves the right to modify CMF Award amounts and/or 
the CMF Recipient pool if deemed necessary to achieve either of these 
statutory objectives. In order to evaluate the geographic coverage of 
the potential CMF Recipient pool, Applicants will be asked to designate 
one of the following three Service Area types in their Applications: 
Local, Statewide, or Multi-State. These Service Area types are further 
defined in the Application; the largest Service Area an Applicant can 
propose is a 10 state Multi-State Service Area. To achieve greater 
investment in Rural Areas and/or broader geographic coverage, the CDFI 
Fund may consider an Application ranked outside of the highly qualified 
pool to receive an Award. However, the CDFI Fund will not award an 
Application that scores in the bottom 50 percent of the External Review 
score rankings. During the selection process, the CDFI Fund also 
reserves the right to modify or place restrictions on the Service Area 
requested in any Applicant's Application in order to further these 
statutory objectives.
    In cases where the selecting official's award determination varies 
significantly from the initial CMF Award amount recommended by the CDFI 
Fund staff review, the CMF Award recommendation will be forwarded to a 
reviewing official for final determination. The CDFI Fund, in its sole 
discretion, reserves the right to reject an Application and/or adjust 
CMF Award amounts as appropriate, based on information obtained during 
the review process.
    5. Insured Depository Institution Applicants: In the case of 
Applicants that are Insured Depository Institutions or Insured Credit 
Unions, the CDFI Fund will consider safety and soundness information 
from the Appropriate Federal Banking Agency or Appropriate State 
Agency, as applicable. If the Applicant is a CDFI Depository 
Institution Holding Company, the CDFI Fund will consider information 
provided by the Appropriate Federal Banking Agency and Appropriate 
State Agency about both the CDFI Depository Institution Holding Company 
and the CDFI Insured Depository Institution that will expend and carry 
out the Award. If the Appropriate Federal Banking Agency or Appropriate 
State Agency identifies safety and soundness concerns, the CDFI Fund 
will assess whether the concerns cause or will cause the Applicant to 
be incapable of undertaking the activities for which funding has been 
requested.
    6. Right of Rejection: The CDFI Fund reserves the right to reject 
an Application if information (including administrative errors) comes 
to the attention of the CDFI Fund that adversely affects an Applicant's 
eligibility for an award, adversely affects the CDFI Fund's evaluation 
or scoring of an Application, or indicates fraud or mismanagement on 
the Applicant's part. If the CDFI Fund determines that any portion of 
the Application is incorrect in any material respect, the CDFI Fund 
reserves the right, in its sole discretion, to reject the Application. 
The CDFI Fund reserves the right to change its eligibility and 
evaluation criteria and procedures, if the CDFI Fund deems it 
appropriate. If said changes materially affect the CDFI Fund's award 
decisions, the CDFI Fund will provide information regarding the changes 
through the CDFI Fund's website. There is no right to appeal the CDFI 
Fund's award decisions. The CDFI Fund's award decisions are final.
    7. Anticipated Award Announcement: The CDFI Fund anticipates making 
CMF Award announcements in early 2019.

VI. Federal Award Administration Information

    A. Award Notification: Each successful Applicant will receive 
notification from the CDFI Fund stating that its Application has been 
approved for an award. Each Applicant not selected for an award will 
receive notification and provided a debriefing document in its AMIS 
account.
    B. Administrative and Policy Requirements Prior to Entering into an 
Assistance Agreement: The CDFI Fund may, in its discretion and without 
advance notice to the Recipient, terminate the award or take other 
actions as it deems appropriate if, prior to entering into an 
Assistance Agreement, information (including an administrative error) 
comes to the CDFI Fund's attention that adversely affects the 
following: The Recipient's eligibility for an award; the CDFI Fund's 
evaluation of the Application; the Recipient's compliance with any 
requirement listed in the Uniform Requirements; or indicates fraud or 
mismanagement on the Recipient's part.
    If the Recipient's certification status as a CDFI changes prior to 
entering into an Assistance Agreement, the CDFI Fund reserves the 
right, in its sole discretion, to re-calculate the CMF Award, or modify 
the Assistance Agreement based on the Recipient's non-CDFI status.
    By receiving notification of a CMF Award, the Recipient agrees 
that, if the CDFI Fund becomes aware of any information (including an 
administrative error) prior to the Effective Date of the Assistance 
Agreement that either adversely affects the Recipient's eligibility for 
an CMF Award, or adversely affects the CDFI Fund's evaluation of the 
Recipient's Application, or indicates fraud or mismanagement on the 
part of the Recipient, the CDFI Fund may, in its discretion and without 
advance notice to the Recipient, rescind the notice of award or take 
other actions as it deems appropriate.
    The CDFI Fund reserves the right, in its sole discretion, to 
rescind an award if the Recipient fails to return the Assistance 
Agreement, signed by an Authorized Representative of the Recipient, 
and/or provide the CDFI Fund with any other requested documentation, 
within the CDFI Fund's deadlines.
    In addition, the CDFI Fund reserves the right, in its sole 
discretion, to terminate and rescind the Assistance Agreement and the 
award made under this NOFA for any criteria described in Table 8:

[[Page 34695]]



    Table 8--Requirements Prior To Executing an Assistance Agreement
------------------------------------------------------------------------
         Requirement                            Criteria
------------------------------------------------------------------------
Failure to meet reporting      <bullet> If a Recipient received a prior
 requirements.                  award or allocation under any CDFI Fund
                                program and is not current on the
                                reporting requirements set forth in the
                                previously executed assistance, award,
                                allocation, bond loan agreement(s), or
                                agreement to guarantee, as of the date
                                of the notice of award, the CDFI Fund
                                reserves the right, in its sole
                                discretion, to delay entering into an
                                Assistance Agreement and/or to delay
                                making a Payment of CMF Award, until
                                said prior Recipient or Allocatee is
                                current on the reporting requirements in
                                the previously executed assistance,
                                award, allocation, bond loan
                                agreement(s), or agreement to guarantee.
                               <bullet> If such a prior Recipient or
                                Allocatee is unable to meet this
                                requirement within the timeframe set by
                                the CDFI Fund, the CDFI Fund reserves
                                the right, in its sole discretion, to
                                terminate and rescind the notice of
                                award and the CMF Award made under this
                                NOFA.
                               <bullet> Please note that automated
                                systems employed by the CDFI Fund for
                                receipt of reports submitted
                                electronically typically acknowledge
                                only a report's receipt; such
                                acknowledgment does not warrant that the
                                report received was complete, nor that
                                it met reporting requirements. If said
                                prior Recipient or Allocatee is unable
                                to meet this requirement within the
                                timeframe set by the CDFI Fund, the CDFI
                                Fund reserves the right, in its sole
                                discretion, to terminate and rescind the
                                notice of Award and the CMF Award made
                                under this NOFA.
Failure to maintain CDFI       <bullet> A Recipient must be a Certified
 Certification (if              CDFI or an eligible Nonprofit
 applicable) or eligible        Organization, as each is defined in the
 Nonprofit Organization         CMF Interim Rule and this NOFA, prior to
 status (if applicable).        entering into an Assistance Agreement.
                               If, at any time prior to entering into an
                                Assistance Agreement under this NOFA, an
                                Applicant that is a Certified CDFI has
                                submitted reports (or failed to submit
                                an annual certification report as
                                instructed by the CDFI Fund) to the CDFI
                                Fund that demonstrate noncompliance with
                                the requirements for certification, but
                                the CDFI Fund has yet to make a final
                                determination regarding whether or not
                                the entity is Certified, the CDFI Fund
                                reserves the right, in its sole
                                discretion, to delay entering into an
                                Assistance Agreement and/or to delay
                                making a Payment of CMF Award, pending
                                full resolution, in the sole
                                determination of the CDFI Fund, of the
                                noncompliance.
                               <bullet> If the Applicant is unable to
                                meet this requirement, in the sole
                                determination of the CDFI Fund, the CDFI
                                Fund reserves the right, in its sole
                                discretion, to terminate and rescind the
                                notice of award and the CMF Award made
                                under this NOFA.
Pending resolution of          <bullet> If, at any time prior to
 noncompliance.                 entering into an Assistance Agreement
                                under this NOFA, an Applicant that is a
                                prior CDFI Fund award Recipient or
                                Allocatee under any CDFI Fund program
                                has submitted reports to the CDFI Fund
                                that demonstrate noncompliance with a
                                previous assistance, award, or
                                allocation agreement, but the CDFI Fund
                                has yet to make a final determination
                                regarding whether or not the entity is
                                in default of its previous assistance,
                                award, allocation, bond loan agreement,
                                or agreement to guarantee, the CDFI Fund
                                reserves the right, in its sole
                                discretion, to delay entering into an
                                Assistance Agreement and/or to delay
                                making a Payment of CMF Award, pending
                                full resolution, in the sole
                                determination of the CDFI Fund, of the
                                noncompliance.
                               <bullet> If said prior Recipient or
                                Allocatee is unable to meet this
                                requirement, in the sole determination
                                of the CDFI Fund, the CDFI Fund reserves
                                the right, in its sole discretion, to
                                terminate and rescind the notice of
                                award and the CMF Award made under this
                                NOFA.
Default or Equivalent          <bullet> If, at any time prior to
 Noncompliance status.          entering into an Assistance Agreement,
                                the CDFI Fund determines that a
                                Recipient is in default (or equivalent
                                noncompliance status) of an active,
                                previously executed agreement with the
                                CDFI Fund and the Recipient was provided
                                written notification of such
                                determination, the CDFI Fund can delay
                                entering into an Assistance Agreement,
                                until the Recipient has cured the
                                default (or equivalent noncompliance
                                status), if applicable, by taking
                                actions the CDFI Fund has specified
                                within the specified timeframe.
Final Default and Sanctions..  <bullet> If the CDFI Fund has found the
                                Recipient in final default of a prior
                                executed agreement and provided
                                notification of sanctions, the CDFI Fund
                                may delay entering into an Assistance
                                Agreement with the Recipient, impose
                                conditions prior to entering in
                                Assistance Agreement, or modify or
                                rescind all or a portion of the CMF
                                Award made under this NOFA within the
                                time period specified in such
                                notification.
Compliance with Federal civil  <bullet> The CDFI Fund will terminate and
 rights requirements.           rescind the Assistance Agreement and the
                                CMF Award made under this NOFA if, prior
                                to entering into an Assistance Agreement
                                under this NOFA, the Recipient receives
                                a final determination, made within the
                                last 3 years of the date of this NOFA,
                                in any proceeding instituted against the
                                Recipient in, by, or before any court,
                                governmental, or administrative body or
                                agency, declaring that the CMF Award
                                Recipient has violated the following
                                laws: Title VI of the Civil Rights Act
                                of 1964, as amended (42 U.S.C. 2000d);
                                Section 504 of the Rehabilitation Act of
                                1973 (29 U.S.C. 794); the Age
                                Discrimination Act of 1975 (42 U.S.C.
                                6101-6107); Title VIII of the Civil
                                Rights Act of 1968, as amended (42
                                U.S.C. 3601 et seq.); and Executive
                                Order 13166, Improving Access to
                                Services for Persons with Limited
                                English Proficiency.
Do Not Pay...................  <bullet> The CDFI Fund reserves the
                                right, in its sole discretion, to
                                rescind an award if the Recipient is
                                identified as an ineligible Recipient in
                                the Do Not Pay database.
                               <bullet> The Do Not Pay Business Center
                                was developed to support Federal
                                agencies in their efforts to reduce the
                                number of improper payments made through
                                programs funded by the Federal
                                government.
Safety and soundness.........  <bullet> If it is determined that the
                                Recipient is or will be incapable of
                                meeting its CMF Award obligations, the
                                CDFI Fund will deem the Recipient to be
                                ineligible or require it to improve
                                safety and soundness conditions prior to
                                entering into an Assistance Agreement.
------------------------------------------------------------------------

    C. Assistance Agreement: Each Applicant that is selected to receive 
an award under this NOFA must enter into an Assistance Agreement with 
the CDFI Fund in order to become a Recipient and receive Payment. Each 
CMF Award under this NOFA generally will have a period of performance 
that begins with the announcement date of the award and continues until 
the end of the period of affordability, as set forth at 12 CFR 
1807.401(d) and 12 CFR 1807.402, and as further set forth in the 
Assistance Agreement.
    1. The Assistance Agreement will set forth certain required terms 
and conditions of the CMF Award, which will include, but not be limited 
to:
    (a) The amount of the award;
    (b) The approved uses of the award;
    (c) The approved Service Area in which the award may be used;
    (d) Performance goals and measures;
    (e) Reinvestment requirements for Program Income; and
    (f) Reporting requirements for all Recipients.
    2. Prior to executing the Assistance Agreement, the CDFI Fund may, 
in its discretion, allow Recipients to request changes to the Service 
Area of the Award and certain performance goals
and measures. The CDFI Fund, in its sole determination, may approve or 
reject these requested changes or propose other modifications, 
including a reduction in the Award amount. The CDFI Fund will only 
approve performance goals and measures or Service Area changes if it 
determines that such requested changes do not undermine the competitive 
process upon which the CMF Award determination was made. The CDFI Fund 
may also, in its discretion, provide Recipients the opportunity to add 
states to their Service Area in order to serve states not already 
covered in the Award

[[Page 34696]]

pool and to further HERA's goal that the CMF serve geographically 
diverse areas of every state. Any modifications agreed upon prior to 
the execution of the Assistance Agreement will become a condition of 
the Award.
    3. The Assistance Agreement shall provide that, prior to any 
determination by the CDFI Fund that a Recipient has failed to comply 
substantially with the Act, the CMF Interim Rule, or the environmental 
quality regulations, the CDFI Fund shall provide the Recipient with 
reasonable notice and opportunity for hearing. If the Recipient fails 
to comply substantially with the Assistance Agreement, the CDFI Fund 
may:
    (a) Require changes in the performance goals set forth in the 
Assistance Agreement;
    (b) Reduce or terminate the CMF Award; or
    (c) Require repayment of any CMF Award that has been distributed to 
the Recipient.
    4. The Assistance Agreement shall also provide that, if the CDFI 
Fund determines noncompliance with the terms and conditions of the 
Assistance Agreement on the part of the Recipient, the CDFI Fund may:
    (a) Bar the Recipient from reapplying for any assistance from the 
CDFI Fund; or
    (b) Take such other actions as the CDFI Fund deems appropriate or 
as set forth in the Assistance Agreement.
    5. In addition to entering into an Assistance Agreement, each 
Applicant selected to receive a CMF Award must furnish to the CDFI Fund 
a certificate of good standing from the jurisdiction in which it was 
formed. The CDFI Fund may, in its sole discretion, also require the 
Applicant to furnish an opinion from its legal counsel, the content of 
which may be further specified in the Assistance Agreement, and which, 
among other matters, opines that:
    (a) The Recipient is duly formed and in good standing in the 
jurisdiction in which it was formed and the jurisdiction(s) in which it 
transacts business;
    (b) The Recipient has the authority to enter into the Assistance 
Agreement and undertake the activities that are specified therein;
    (c) The Recipient has no pending or threatened litigation that 
would materially affect its ability to enter into and carry out the 
activities specified in the Assistance Agreement;
    (d) The Recipient is not in default of its articles of 
incorporation or formation, bylaws or operating agreements, other 
organizational or establishing documents, or any agreements with the 
Federal government; and
    (e) The CMF affordability restrictions that are to be imposed by 
deed restrictions, covenants running with the land, or other CDFI Fund 
approved mechanisms are recordable and enforceable under the laws of 
the State and locality where the Recipient will undertake its CMF 
activities.
    D. Paperwork Reduction Act: Under the Paperwork Reduction Act (44 
U.S.C. chapter 35), an agency may not conduct or sponsor a collection 
of information, and an individual is not required to respond to a 
collection of information, unless it displays a valid OMB control 
number. If applicable, the CDFI Fund may inform Applicants that they do 
not need to provide certain Application information otherwise required. 
Pursuant to the Paperwork Reduction Act, the Capital Magnet Fund 
Application has been assigned the following control number: 1559-0036.
    E. Reporting: The CDFI Fund will require each Recipient that 
receives a CMF Award through this NOFA to account for and report to the 
CDFI Fund on the use of the CMF Award. This will require Recipients to 
establish administrative controls, subject to the Uniform 
Administrative Requirements and other applicable OMB guidance. The CDFI 
Fund will collect information from each such Recipient on its use of 
the CMF Award annually following Payment and more often if deemed 
appropriate by the CDFI Fund in its sole discretion. The CDFI Fund will 
provide guidance to Recipients outlining the format and content of the 
information required to be provided to describe how the funds were 
used.
    The CDFI Fund may collect information from each Recipient 
including, but not limited to, an Annual Report with the components 
listed in Table 9:

                     Table 9--Reporting Requirements
------------------------------------------------------------------------
           Criteria                           Description
------------------------------------------------------------------------
Single Audit Narrative Report  The Recipient must submit, via AMIS, a
 (or like report).              Single Audit Narrative Report for each
                                year of its period of performance
                                notifying the CDFI Fund whether it is
                                required to have a single audit pursuant
                                to OMB Single Audit requirements.
Single Audit (if applicable).  If a nonprofit Recipient is required to
                                complete a Single Audit Report, it must
                                be submitted to the Federal Audit
                                Clearinghouse (see 2 CFR subpart F--
                                Audit Requirements in the Uniform
                                Requirements) and AMIS (optional).
Financial Statement Audit....  For-profit and nonprofit Recipients must
                                submit a Financial Statement Audit (FSA)
                                report in AMIS, performed by an
                                independent certified public accountant,
                                as specified in the Assistance
                                Agreement. This report will not be
                                required for Insured Credit Unions,
                                Insured Depository Institutions, or
                                Depository Institution Holding
                                Companies.
Performance Report...........  The Recipient must submit a performance
                                report not less than annually, which is
                                a progress report on the Recipient's use
                                of the CMF Award towards meeting its
                                performance goals, affordable housing
                                outcomes, and the Recipient's overall
                                performance. The CMF Performance Report
                                covers the Announcement Date through the
                                Investment Period for the CMF Award and
                                the ten-year Affordability Period for
                                each Project. The Investment Period
                                shall mean the period beginning with the
                                Effective Date of the Assistance
                                Agreement and ending not earlier than
                                the fifth year anniversary of the
                                Effective Date, or as otherwise
                                established in the Assistance Agreement.
                                The Affordability Period shall mean, for
                                each Project, the period beginning on
                                the date when the Project is placed into
                                service and consisting of the full ten
                                consecutive years thereafter, or as
                                otherwise established in the Assistance
                                Agreement.
                               If the Recipient fails to meet a
                                performance goal or reporting
                                requirements, it must submit an
                                explanation of noncompliance via AMIS.
Environmental Review.........  The Recipient shall submit the
                                Environmental Review Notification Report
                                each time the Recipient identifies a new
                                proposed CMF project for which (i) a
                                categorical exclusion does not apply and/
                                or (ii) the Recipient determines that
                                the proposed project does involve
                                actions that normally require an
                                Environmental Impact Statement, as
                                described in 12 CFR part 1815. The
                                Environmental Review Notification Report
                                must be submitted to the CDFI Fund no
                                later than ninety (90) days prior to the
                                date that funds are Committed to a
                                project.
------------------------------------------------------------------------

    Each Recipient is responsible for the timely and complete 
submission of the annual reporting documents. The CDFI Fund will use 
such information to monitor each Recipient's compliance with the 
requirements set forth in the Assistance Agreement and to assess the 
impact of the CMF. The CDFI Fund reserves the right, in its sole 
discretion, to modify these reporting requirements if it determines it 
to be appropriate and necessary; however, such reporting

[[Page 34697]]

requirements will be modified only after notice to Recipients.
    F. Financial Management and Accounting: The CDFI Fund will require 
Recipients to maintain financial management and accounting systems that 
comply with Federal statutes, regulations, and the terms and conditions 
of the CMF Award. These systems must be sufficient to permit the 
preparation of reports required by general and program specific terms 
and conditions, including the tracing of funds to a level of 
expenditures adequate to establish that such funds have been used in 
accordance with the Federal statutes, regulations, and the terms and 
conditions of the CMF Award.
    The cost principles used by Recipients must be consistent with 
Federal cost principles; must support the accumulation of costs as 
required by the principles; and must provide for adequate documentation 
to support costs charged to the CMF Award. In addition, the CDFI Fund 
will require Recipients to: Maintain effective internal controls; 
comply with applicable statutes and regulations, the Assistance 
Agreement, and related guidance; evaluate and monitor compliance; take 
action when not in compliance; and safeguard personally identifiable 
information.

VII. Agency Contacts

    A. Availability: The CDFI Fund will respond to questions and 
provide support concerning this NOFA and the Application between the 
hours of 9:00 a.m. and 5:00 p.m. ET, starting on the date of the 
publication of this NOFA until the close of business on the third 
business day preceding the Application deadline. The CDFI Fund will not 
respond to questions or provide support concerning the Application that 
are received after 5:00 p.m. ET on said date, until after the 
Application deadline. CDFI Fund IT support will be available until 5:00 
p.m. ET on date of the Application deadline. Applications and other 
information regarding the CDFI Fund and its programs may be obtained 
from the CDFI Fund's website at http://www.cdfifund.gov/cmf. The CDFI 
Fund will post on its website responses to questions of general 
applicability regarding the CMF.
    B. The CDFI Fund's contact information is listed in Table 10:

                                          Table 10--Contact Information
----------------------------------------------------------------------------------------------------------------
                                                                       Telephone No.
            Type of question                   Preferred method          (not toll          Email addresses
                                                                           free)
----------------------------------------------------------------------------------------------------------------
CMF.....................................  Submit a Service Request      202-653-0421  <a href="/cdn-cgi/l/email-protection#beddd3d8fedddad8d790caccdbdfcd90d9d1c8"><span class="__cf_email__" data-cfemail="9af9f7fcdaf9fefcf3b4eee8fffbe9b4fdf5ec">[email protected]</span></a>.
                                           in AMIS.
CDFI Certification......................  Submit a Service Request      202-653-0423  <a href="/cdn-cgi/l/email-protection#3251515f57725156545b1c46405753411c555d44"><span class="__cf_email__" data-cfemail="4a2929272f0a292e2c23643e382f2b39642d253c">[email protected]</span></a>.
                                           in AMIS.
Compliance Monitoring and Evaluation....  Submit a Service Request      202-653-0423  <a href="/cdn-cgi/l/email-protection#dab9b9b7bf9ab9bebcb3f4aea8bfbba9f4bdb5ac"><span class="__cf_email__" data-cfemail="f695959b93b69592909fd88284939785d8919980">[email protected]</span></a>.
                                           in AMIS.
Information Technology Support..........  Submit a Service Request      202-653-0422  <a href="/cdn-cgi/l/email-protection#befff3f7edfedddad8d790caccdbdfcd90d9d1c8"><span class="__cf_email__" data-cfemail="6c2d21253f2c0f080a0542181e090d1f420b031a">[email protected]</span></a>.
                                           in AMIS.
----------------------------------------------------------------------------------------------------------------

    The preferred method of contact is to submit a Service Request (SR) 
within AMIS. For a CMF Application question, select ``General Inquiry'' 
for the record type and select ``CMF--Application'' for the type. For a 
CDFI Certification or Compliance question, select ``General Inquiry'' 
for the record type and select the appropriate type. For Information 
Technology, select ``General Inquiry'' for the record type and select 
``CMF-AMIS technical problem'' for the type. Failure to select the 
appropriate type of SR could result in delays in responding to your 
question.
    C. Communication with the CDFI Fund: The CDFI Fund will use AMIS to 
communicate with Applicants and Recipients, using the contact 
information maintained in their respective AMIS accounts. Therefore, 
the Recipient and any Subsidiaries, signatories, and Affiliates must 
maintain accurate contact information (including contact persons and 
Authorized Representatives, email addresses, fax numbers, phone 
numbers, and office addresses) in its AMIS account(s). For more 
information about AMIS please see the Help documents posted at https://amis.cdfifund.gov/s/Training.

VIII. Other Information

    The CMF regulations are set forth in 12 CFR part 1807. 12 CFR 
1807.105 provides the CDFI Fund the ability to waive any part of the 
regulations for good cause: ``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 shall be in writing and supported by a 
statement of the facts and the grounds forming the basis of the waiver. 
For a waiver in an 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.'' Pursuant to this requirement, the 
CDFI Fund is publishing notification in this NOFA that it hereby waives 
a portion of 12 CFR 1807.501 for all Recipients of CMF Awards.
    A. Statement of Facts: Per Sec.  4569(h)(4) of HERA, grants under 
CMF ``shall be committed for use within 2 years.'' Pursuant to HERA, 
the CDFI Fund issued regulations through the CMF Interim Rule (12 CFR 
part 1807). 12 CFR 1807.501(a) requires CMF Recipients to issue 
Commitments for use of the Award within two years of the Effective Date 
of the Assistance Agreement. 12 CFR 1807.501(b) requires that the 
Commitment be a written, legally binding agreement to provide CMF Award 
proceeds to a qualifying Family, developer, or project sponsor for each 
specific Project. A legally-binding agreement means that the Recipient 
must have a counterparty to which it can issue the Commitment. This 
definition of Commitment effectively precludes CMF Award Recipients 
from Committing CMF Award dollars to an Affordable Housing or Economic 
Development Activity where the Recipient itself conducts or provides 
Loan Loss Reserves for the Development, Preservation, Rehabilitation, 
or Purchase of Affordable Housing or Economic Development Activity, and 
there is not a counterparty to effectuate a legally-binding agreement.
    B. Grounds for Waiver: The CDFI Fund has discovered that Recipients 
are varied in their business models and entity types and thus their 
ability to identify a separate legal entity to demonstrate the CMF 
Award is Committed also varies. Some Recipients are developers and will 
use their CMF Awards for predevelopment activities and thus have not 
created a separate legal entity in the early stages of a Project. Those 
Recipients that are tribal entities may not be able to create a 
separate legal entity due to the laws of their tribal government. 
Recipients that are using their CMF Award for Purchase often are 
required to have a mortgage lending license under state law that allows 
them to provide mortgages. Thus

[[Page 34698]]

requiring a Recipient to have a legally binding agreement with an 
entity that has a mortgage lending license is often not feasible. In 
this scenario, it is more reliable to have the Recipient provide the 
mortgage financing directly to the Low-Income Families. The CDFI Fund 
has determined that for the purpose of evidencing Commitment to a 
Project for Purchase and achieving Project Completion for Purchase, a 
Recipient's entire portfolio of Homeownership financed and/or supported 
with its CMF Award will be deemed a Project.
    For the above stated reasons, the CDFI Fund is issuing a general 
waiver herein of 12 CFR 1807.501(b) in cases where the CMF Award 
Recipient serves in the role as the developer for the Project or is 
financing and/or supporting a Project for Purchase and the Project is 
not owned, sponsored, or being developed by a limited partnership or 
limited liability company or other separate entity. Additionally, the 
CDFI Fund is issuing a general waiver herein of 12 CFR 1807.501(b) in 
cases where the Recipient is committing its CMF Award to a Loan Loss 
Reserve made by the Recipient, where the reserve is not pledged to a 
third party or separate entity affiliated with the Recipient, but is 
used to reserve against losses from loans directly made by the 
Recipient.
    In lieu of a legally binding written agreement, such Recipients 
will be able to evidence a Commitment via a Board of Director's 
resolution for an identified Project. The resolution will be required 
to be in the form and substance acceptable to the CDFI Fund in its sole 
discretion. The CDFI Fund has determined that providing this waiver 
does not adversely affect the achievement of the purposes of HERA.

    Authority:  Pub. L. 110-289. 12 U.S.C. 4701, 12 CFR part 1805, 
12 CFR part 1807, 12 CFR part 1815, 12 U.S.C. 4502.

Mary Ann Donovan,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2018-15473 Filed 7-19-18; 8:45 am]
 BILLING CODE 4810-70-P


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