Department of the Treasury

Community Development 

Financial Institutions Fund

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2019
CDFI Fund - 2

Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table.......................................................................................... 4

1.3 – Operating Levels Table...................................................................................................... 5

C – Appropriations Language and Explanation of Changes....................................................... 6

D – Legislative Proposals ........................................................................................................... 6

Section II – Annual Performance Plan and Report................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1.1 Administration- Resources and Measures ......................................................................... 8

2A - Administration .................................................................................................................... 8

2.1.2 – Community Development Financial Institutions Program Resources and Measures..... 9

2B - Community Development Financial Institutions Program ................................................. 9

2.1.3 – New Markets Tax Credit Program Resources and Measures ....................................... 10

2C – New Markets Tax Credit Program ................................................................................... 10

2.1.4 – Bank Enterprise Award Program Performance and Measures ..................................... 12

2D – Bank Enterprise Award Program..................................................................................... 12

2.1.5 – Native American CDFI Assistance Program Performance and Measures.................... 13

2E – Native American CDFI Assistance Program.................................................................... 13

2.1.6 - Healthy Food Financing Initiative Performance and Measures .................................... 14

2F – Healthy Food Financing Initiative .................................................................................... 14

2.1.7 - Capital Magnet Fund Program Resource Detail Table.................................................. 15

2G - Capital Magnet Fund Program.......................................................................................... 15

2.1.8 - Bond Guarantee Program Resource Detail Table.......................................................... 15

2.1.9 - Financing Accounts – Non-Budgetary Summary.......................................................... 16

2H - CDFI Bond Guarantee Program ....................................................................................... 16

Section III – Additional Information ........................................................................................ 17

A – Summary of Capital Investments....................................................................................... 17

Non-Major IT Investments ....................................................................................................... 17

IT Infrastructure Investments.................................................................................................... 17
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Section I – Budget Request

A – Mission Statement

To expand economic opportunity for underserved people and communities by supporting the 

growth and capacity of a national network of community development lenders, investors and 

financial service providers. 

B – Summary of the Request 

The Community Development Financial Intuitions (CDFI) Fund supports Treasury’s Strategic Goal 

1 (Boost U.S. Economic Growth) and Strategic Goal 4 (Transform Government-wide Financial 

Stewardship). The Budget requests the following for the CDFI Fund for FY 2019:

 $14 million in administrative funding to support:

- Management of the CDFI, Bond Guarantee (BG), and New Markets Tax Credit (NMTC) 

Programs; and

- Ongoing certification and compliance monitoring for all programs, including the Bank 

Enterprise Award (BEA) Program, the CDFI Program, the Native American CDFI 

Assistance (NACA) Program, and the Healthy Food Financing Initiative (HFFI). 

 The Budget eliminates funding for the CDFI Fund’s four discretionary grant and direct loan 

programs (i.e. the CDFI Program, the BEA Program, the NACA Program, and HFFI) and 

proposes to extend the CDFI BG Program, which offers CDFIs low-cost, long-term financing 

at no cost to taxpayers. The Budget also includes a proposal to eliminate new funding for 

Capital Magnet Fund (CMF) effective in 2019.

- The CDFI BG Program provides CDFIs access to capital by providing guarantees of 

bonds issued by Qualified Issuers. CDFIs invest the bond proceeds into our nation’s 

most distressed communities. CDFIs benefit by accessing long-term credit at belowmarket interest rates. The BG Program incentivizes and empowers CDFIs to execute 

large-scale projects, including the development of charter schools, commercial real 

estate, rental housing, senior living, daycare or healthcare centers, small businesses, and 

rural infrastructure, among others. The program requires no credit subsidy.

- The Budget proposes an annual commitment authority of $500 million and program 

changes to (1) reduce the minimum bond issue size from $100 million to $50 million; and 

(2) correct a technical drafting error related to the calculation of the relending account 

maximum. 
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1.1 – Appropriations Detail Table

Dollars in Thousands

Community Development 

Financial Institutions Fund FY 2017 FY 2018 FY 2019 FY 2018 to FY 2019

Appropriated Resources Enacted** Annualized CR Request Change % Change

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Community Development 

Financial Institutions Program 0 $161,500 0 $160,403 0 $0 0 ($160,403) NA -100.00%

Bank Enterprise Award Program 0 $23,000 0 $22,844 0 $0 0 ($22,844) NA -100.00%

Native American CDFI Assistance 

Program 0 $15,500 0 $15,395 0 $0 0 ($15,395) NA -100.00%

Administration 74 $26,000 74 $25,823 42 $14,000 (32) ($11,823) -45.45% -45.78%

Healthy Food Financing Program 0 $22,000 0 $21,851 0 $0 0 ($21,851) NA -100.00%

Subtotal New Appropriated 

Resources 74 $248,000 74 $246,316 42 $14,000 (32) ($232,316) -45.45% -94.32%

Other Resources

User Fees * 0 $415 0 $700 0 $1,000 0 $300 NA 42.86%

Recovery From Prior Years 0 $642 0 $3,400 0 $2,500 0 ($900) NA -26.47%

Unobligated Balances Brought 

Forward 0 $28,312 0 $32,606 0 $5,000 0 ($27,606) NA -84.67%

Subtotal Other Resources 0 $29,369 0 $36,706 0 $8,500 0 ($28,206) NA -76.84%

Total Budgetary Resources 74 $277,369 74 $283,022 42 $22,500 (32) ($260,522) -45.45% -92.05%

* FY 2017 User Fees reflects authorization of the Bond Guarantee Program.

** This column reflects levels appropriated in H.R. 255, the Consolidated Appropriations Act of 2017. For further details on the 

execution of these resources see the 2019 Budget Appendix chapter for the Department of the Treasury. FY 2017 FTE employment 

level reflects actuals, and the $ amount represents 2017 Enacted.
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1.3 – Operating Levels Table

Dollars in Thousands

Community Development Financial Institutions Fund FY 2017 FY 2018 FY 2019

Object Classification Enacted1 Annualized CR Request

11.1 – Full-time permanent 9,085 9,382 4,589 

11.9 – Personnel Compensation (Total) 9,085 9,382 4,589 

12.0 – Personnel benefits 2,991 3,067 2,160 

Total Personnel and Compensation Benefits $12,076 $12,449 $6,749 

21.0 – Travel and transportation of persons 59 40 15 

24.0 – Printing and reproduction 11 5 1 

25.1 – Advisory and assistance services 5,707 2,551 0 

25.2 – Other services from non-Federal sources 38 15 15 

25.3 –Other goods and services from Federal sources 4,420 6,908 5,212 

25.7 – Operation and maintenance of equipment 0 2,967 2,003 

26.0 – Supplies and materials 42 35 5 

31.0 – Equipment 3,647 853 0 

41.0 – Grants, subsidies, and contributions 222,000 220,493 0 

Total Non-Personnel $235,924 $233,867 $7,251 

New Budgetary Resources $248,000 $246,316 $14,000 

FTE 74 74 42

Note: This table includes total annually appropriated funding (FY 2017 Enacted, FY 2018 Annualized CR, and FY 2019 Request).

1This column reflects levels appropriated in H.R. 255, the Consolidated Appropriations Act of 2017. For further details on the 

execution of these resources see the 2019 Budget Appendix chapter for the Department of the Treasury. FY 2017 FTE employment 

level reflects actuals, and the $ amount represents 2017 Enacted.
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C – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of 

Changes

DEPARTMENT OF THE TREASURY

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 

FUND

To carry out the Riegle Community Development and Regulatory 

Improvements Act of 1994 (subtitle A of title I of Public Law 103–

325), including services authorized by section 3109 of title 5, 

United States Code, but at rates for individuals not to exceed the 

per diem rate equivalent to the rate for EX-3, $14,000,000, to be 

used for administrative expenses, including administration of 

CDFI fund programs and the New Markets Tax Credit Program: 

Provided, That during fiscal year 2019, none of the funds available 

under this heading are available for the cost, as defined in section 

502 of the Congressional Budget Act of 1974, of commitments to 

guarantee bonds and notes under section 114A of the Riegle 

Community Development and Regulatory Improvement Act of 1994 

(12 U.S.C. 4713a): Provided further, That commitments to 

guarantee bonds and notes under such section 114A shall not 

exceed $500,000,000 through December 31, 2019: Provided 

further, That such section 114A shall remain in effect until 

December 31, 2019. 

Note.—A full-year 2018 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2018 (Division D of P.L. 115-56, as 

amended). The amounts included for 2018 reflect the annualized 

level provided by the continuing resolution.

Extension of the Bond 

Guarantee Program 

through December 31, 

2019 to allow more time 

to close complex and 

time-consuming bond 

commitments.

D – Legislative Proposals

The Budget requests extension of the CDFI Bond Guarantee Program through December 31, 

2019 and elimination of new allocations into the Capital Magnet Fund effective in FY 2019. 

Legislative Language

SEC. 126. AMENDMENTS TO COMMUNITY DEVELOPMENT FINANCIAL 

INSTITUTIONS BOND PROGRAM. Section 114A of the Riegle Community Development and 

Regulatory Improvement Act of 1994 (12 U.S.C. 4713a) is amended— (a) in subsection (c)(2) 

by striking ", multiplied by an amount equal to the outstanding principal balance of issued notes 

or bonds"; and (b) in subsection (e)(2)(B), by striking "$100,000,000" and inserting 

"$50,000,000".
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

The CDFI Fund’s mission is to expand economic opportunity for underserved people and 

communities by supporting the growth and capacity of a national network of community 

development lenders, investors, and financial service providers. The CDFI Fund supports the 

following Treasury’s FY 2018-2022 strategic goals: 

 Goal 1: Boost U.S. Economic Growth 

o Objective 1.2 – Strong Economic Fundamentals

 Goal 4: Transform Government-wide Financial Stewardship

o Objective 4.1 – Financial Data Access and Use

The CDFI Fund’s award recipients provide loans, investments, business counseling, basic 

banking services, and financial literacy training in some of the most distressed communities in 

the nation. These are the communities where job opportunities remain stagnant and that 

otherwise lack access to more mainstream forms of capital – the places in the United States that

are not progressing economically as other parts of our economy have improved. CDFI Fund 

award recipients use their awards to increase access to capital and help to improve the quality of 

life and the local economy in these communities.

The CDFI Fund has articulated five goals in its FY 2018-2022 Strategic Plan aimed at increasing

the impact of the CDFI Fund network by supporting the growth, reach, and performance of CDFI 

Fund awardees. These goals support Treasury’s strategic plan to: promote strong economic 

fundamentals; transform government-wide financial stewardship; and ensure financial data

access/use. 

The FY 2019 Budget will advance these goals by allowing the CDFI Fund to administer and 

fully staff the CDFI Fund’s programs that are authorized by Congress but do not require 

appropriated funds to make awards, i.e., the NMTC Program and CDFI BG Program. In 

addition, the CDFI Fund will continue to conduct ongoing program compliance for prior-year 

award recipients for all programs. 

The budget request is also intended to cover the cost to administer certification of CDFIs, as 

required by the Riegle Act, as well as Community Development Entities (CDEs), as required by

the NMTC program. CDFI certification is a prerequisite for eligibility for the BG Program and 

the Capital Magnet Fund (CMF), as well as other federal programs outside of the CDFI Fund. 

CDE certification is a prerequisite for eligibility for the NMTC program.
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B – Budget and Performance by Budget Activity

2.1.1 Administration- Resources and Measures

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Enacted Annualized 

CR Request

Appropriated Resources $21,764 $24,636 $23,100 $23,600 $26,000 $25,823 $14,000 

Budget Activity Total $21,764 $24,636 $23,100 $23,600 $26,000 $25,823 $14,000 

FTE 76 76 76 77 74 74 42

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

ALL - Award Cycle Time 

(Months) 6.8 7.9 8.3 7.6 6.3 7.0 7.0 7.0

All - Time to Initial 

Disbursement (# Months) N/A N/A N/A B N/A N/A 4.5 4.5

ALL - Number of Affordable 

Housing Units Developed or 

Produced

26,391 32,621 27,004 35,251 27,443 28,000 28,000 28,000

Key: B - Baseline

2A - Administration

($14,000,000 from direct appropriations):

This encompasses the CDFI Fund’s operational support and management activities for each of its 

ongoing award programs. It includes, among other activities, developing notices of award 

availability and application materials; reviewing and evaluating certification and award 

applications; selecting awardees; finalizing the terms of award agreements; making 

disbursements; collecting and evaluating performance data; monitoring awardees’ compliance; 

and award closeout processes. 

Description of Performance:

The CDFI Fund’s two administrative measures are organization-wide efficiency measures based 

on how quickly awards are made and funds are disbursed.

 The All Cycle Time measures the average time from the date when applications are received 

to the date of award announcement (calculated in months as an average across all programs). 

In FY 2017, the 7 month cycle-time target was met because it took on average only 6.3

months to make the awards. This achievement reflects improved efficiency in making 

awards, which is largely a function of the implementation of the Awards Management and 

Information system (AMIS).

 The Time to Initial Disbursement is a new measure that indicates in months how quickly the 

CDFI Fund completes award agreements and makes the first disbursement of funds or issues 

tax credits. The results for FY 2017 have not yet been tabulated because this measure cannot 

be computed until 4.5 months have elapsed after the end of FY 2017. 
CDFI Fund - 9

 The Number of Affordable Housing Units Developed or Produced measure captures the 

number of affordable housing units developed or produced as a result of CDFI Fund 

awards as reported by CDFI, NMTC, and CMF Program awardees and allocation 

recipients. The FY 2017 actual result of 27,433 affordable housing units was slightly 

below the target of 28,000 affordable housing units. The FY 2018 target remains 28,000 

units, and it reflects projected outcomes for program investments from prior-year award

recipients’ reported eligible affordable housing projects. 

2.1.2 – Community Development Financial Institutions Program Resources and Measures

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

CDFI Program Budget 

Activity Actual Actual Actual Actual Actual Annualized CR Request

Appropriated 

Resources $138,397 $146,364 $152,400 $153,423 $161,500 $160,403 $0

Budget Activity Total $138,397 $146,364 $152,400 $153,423 $161,500 $160,403 $0

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

CDFI - Percentage of Loans & 

Investments Originated in Eligible 

Distressed or Underserved 

Communities by Dollar Amount of 

Loans (Annual %)

77.1 70.8 80.1 80.9 81.2 60.0 60.0 N/A

CDFI - Percentage of Loans & 

Investments Originated in Eligible 

Distressed or Underserved 

Communities by Number of 

Loans

79.6 60.7 80.5 81.5 83.0 60.0 60.0 N/A

2B - Community Development Financial Institutions Program

($0 from direct appropriations): 

The CDFI Program makes Financial Assistance (FA) awards to CDFIs that have comprehensive 

business plans for creating community development impact and that demonstrate the ability to 

leverage private sector sources of financing, as well as Technical Assistance (TA) grants to 

CDFIs and entities proposing to become CDFIs. CDFIs use FA awards to further goals such as:

 Economic development (job creation, business development, and commercial real estate 

development);

 Affordable housing (rental housing and homeownership); and

 Financial services (provision of basic banking services and financial literacy training to 

underserved people and communities). 

Description of Performance:

The CDFI Program has two measures: (1) the percentage of loans and investments originated in 

eligible distressed communities or made to underserved populations, as measured against the 

total dollar amount of loans originated by awardees; and (2) the percentage of loans and 

investments originated in eligible distressed communities or to underserved populations, as 

measured against the total number of loans originated by awardees.
CDFI Fund - 10

Certification criteria require that all certified CDFIs originate at least 60.0 percent of their loans

and investments in eligible distressed census tracts or to underserved populations. The target is 

set at a level that allows CDFIs to balance their mission to serve distressed communities and 

underserved populations with their safety and soundness considerations. 

In FY 2017, the CDFI Program surpassed the 60.0 percent threshold for the percentage of both 

the dollar amount (81.2 percent) and the number of CDFI loans (83.0 percent) made to eligible 

distressed communities and underserved populations. The FY 2018 target remains 60.0 percent 

to ensure that CDFIs can balance mission with safety and soundness objectives.

2.1.3 – New Markets Tax Credit Program Resources and Measures 

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

New Markets Tax Credit 

Budget Activity Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources $0 $0 $0 $0 $0 $0 $0

Budget Activity Total $0 $0 $0 $0 $0 $0 $0

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

NMTC - Percentage of Loans 

and Investments That Went 

Into Severely Distressed 

Communities

78.5 73.8 75.2 74.5 77.5 74.0 75.0 75.0

2C – New Markets Tax Credit Program 

($0 from direct program appropriations):

The NMTC Program stimulates capital investment in low-income communities nationwide by 

permitting individual and corporate taxpayers to receive a non-refundable tax credit against 

federal income taxes for making equity investments in vehicles known as CDEs. CDEs that 

receive the tax credit allocation authority under the program are domestic corporations or 

partnerships that provide loans, investments, or financial counseling in low-income urban and 

rural communities. 

On December 18, 2015, Congress extended the authorization of the NMTC Program for 

$3.5 billion per year through 2019.

Description of Performance:

The Calendar Year (CY) 2015 and CY 2016 NMTC allocation authority was allocated in 

November 2016 as a combined round, in which the NMTC Program awarded $7 billion in 

NMTC allocation authority to 120 CDEs, out of a pool of 238 applicants requesting $17.6

billion. 

In FY 2017, 77.5 percent of NMTC investments were made in severely-distressed communities,

exceeding the target by more than three percentage points. This performance indicates that 

CDEs continue to meet their commitments in severely-distressed communities. Because the 

trend data indicates improvement, the CDFI Fund has elevated the FY 2018 and FY 2019 targets 

to 75 percent.
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In August 2017, the CDFI Fund released the Compliance Review of New Markets Tax Credit

Program1report commissioned by the CDFI Fund and conducted by Summit Consulting, LLC. 

The independent report examines whether NMTC recipients have complied with program 

requirements and if recipients’ “investment activities have aligned with the objectives of the 

NMTC Program.” The report emphasizes the NMTCs are being used as Congress intended – to 

attract private investment into projects in economically-distressed communities – and documents 

the ways CDEs are meeting and generally exceeding NMTC Program requirements.

The report addresses questions and recommendations posed by the Government Accountability 

Office regarding the distribution of benefits among the NMTC Program’s stakeholders, 

investors’ rates of return, and the role that other public investments play in NMTC investments. 

Among the report’s key findings are:

 CDEs often go beyond compliance requirements, providing more flexible capital and 

investing in more highly-distressed areas than the NMTC Program requires;

 The flexible financing provided by CDEs reduces the net cost of capital for borrowers; and

 Many CDEs use a rigorous project selection process that included a “but-for analysis,”

community benefit considerations, and advisory board involvement.

A review of NMTC projects showed that approximately two-thirds received public funding 

consistent with financing gaps. The remaining one-third revealed that projects located in highly 

distressed areas may need more public funding to attract private investment to enhance 

community benefits or to support initial project operating costs.

 

1 https://www.cdfifund.gov/Documents/Summit%20-

%20Compliance%20Review%20of%20New%20Markets%20Tax%20Credit%20Program%20-

%20August%20Date%20-%20508%20Compliant.pdf
CDFI Fund - 12

2.1.4 – Bank Enterprise Award Program Performance and Measures

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Bank Enterprise Award 

Program Budget Activity Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources $17,058 $18,000 $18,000 $19,000 $23,000 $22,844 $0

Budget Activity Total $17,058 $18,000 $18,000 $19,000 $23,000 $22,844 $0

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

BEA - Increase in Community 

Development Activities Over 

Prior Year For All BEA 

Program Applicants ($ million)

493.5 723.5 759.9 539 TBD 500 500 N/A

2D – Bank Enterprise Award Program

($0 from direct appropriations):

The BEA Program provides monetary awards to regulated banks and thrifts for increasing their 

investments in CDFIs through grants, stock purchases, loans, deposits, and other forms of 

financial and technical assistance, and for increasing their lending, investment, and service 

activities in economically-distressed communities where at least 30 percent of residents have 

incomes less than the national poverty level and where the unemployment rate is at least 1.5 

times the national unemployment rate. 

Description of Performance:

The BEA Program measures applicants’ increase in qualified community development activities 

over the prior year. In FY 2017, the CDFI Fund awarded $18.6 million from the FY 2016 

appropriated BEA Program funds. The award round for FY 2017 opened in September 2017,

with award announcements expected to be made in April 2018.

The performance target for the FY 2016 round was met. BEA program applicants documented 

$539 million in increased qualified community development activities, exceeding the target of 

$450 million.

In June 2017, the CDFI Fund released the Bank Enterprise Award Program Baseline Analysis 

and Evaluation2report, which is an independent third-party evaluation of the BEA Program. 

The report found that the BEA Program targets census tracts with much lower income levels and 

higher poverty rates than are typically required under the Community Reinvestment Act (CRA). 

In addition, applicants and awardees surveyed during the BEA Program evaluation indicated 

program awards mitigate the financial risks and costs of operating bank branches in highlydistressed communities and are a factor in shaping the financial products and services offered in 

these communities. The report’s analysis shows that CDFI banks and CDFIs generally lend at a 

greater frequency in highly distressed communities than CRA-reporting banks, and that BEA 

awardees typically originate a larger share of their loans in persistent-poverty areas than CRAreporting banks. The evaluation also found that the BEA Program has evolved over time, and it 

 

2 https://www.cdfifund.gov/news-events/news/Pages/news-detail.aspx?NewsID=260&Category=Press%20Releases
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now focuses on providing awards to smaller CDFI banks that increase their activities in 

distressed communities, as well as to larger non-CDFI banks that invest in CDFIs to reach more 

highly distressed areas than they otherwise would.

2.1.5 – Native American CDFI Assistance Program Performance and Measures

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Native American CDFI 

Assistance Program Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources $11,372 $15,000 $15,000 $15,500 $15,500 $15,395 $0

Budget Activity Total $11,372 $15,000 $15,000 $15,500 $15,500 $15,395 $0

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

NACA - Percentage of 

NACA Loans and 

Investments in Native Areas 

($ Amount of Loans)

75.5 57.9 65 61.2 42.6 50.0 50.0 N/A

NACA - Percentage of 

NACA Loans and 

Investments in Native Areas 

(# of Loans)

93.3 87 95.9 96.3 94.5 50.0 50.0 N/A

2E – Native American CDFI Assistance Program

($0 from direct appropriations):

Through the NACA Program, the CDFI Fund assists entities in overcoming barriers that prevent 

access to credit, capital, and financial services in American Indian, Alaska Native, and Native

Hawaiian communities. The NACA Program makes monetary awards to increase the number 

and capacity of existing or new Native CDFIs (i.e., CDFIs that serve Native communities). In 

addition, the NACA Program provides training to help strengthen and develop Native CDFIs. 

Native CDFIs lend where other mainstream financial institutions have not and serve the poorest 

individuals, families, and businesses in Native communities.

Description of Performance:

In FY 2016, two new measures of performance were approved for the NACA Program: (1) the 

percentage of the number of loans, and (2) the dollar amount of loans, made in tribal lands 

(based on Federal Designations of Tribal areas) or to Native people. In accordance with their 

Financial Assistance agreements, NACA awardees are required to originate 50.0 percent or more 

of their loans and investments in Native areas or to Native populations. This threshold is set to 

allow the awardees to balance their mission of serving Native areas and populations with safety 

and soundness considerations.

These two measures were first baselined in FY 2017 with outcome data from 2016. It showed 

that 61 percent of dollars originated, and over 96 percent of the number of loans originated, were 

in Native Areas or to Native borrowers. The preliminary data for FY 2017 reflects a shortfall in 

the dollar amount of loans originated – just 42.6 percent – but the target for the percent of loans 

was exceeded, with performance of 94 percent. The preliminary data is incomplete due to latefiled reports. Based on past reporting patterns, the CDFI Fund expects that complete data will 

show a higher percentage of the dollar amount of loans originated. Enhanced compliance 
CDFI Fund - 14

monitoring procedures and improvements in the performance reporting systems should mitigate 

these reporting problems in the future. The target for FY 2018 remains 50 percent.

2.1.6 - Healthy Food Financing Initiative Performance and Measures

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Healthy Food Financing 

Initiative Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources $20,849 $35,000 $22,000 $22,000 $22,000 $21,851 $0

Budget Activity Total $20,849 $35,000 $22,000 $22,000 $22,000 $21,851 $0

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

HFFI - Retail Outlets 

Created/Preserved 31 33 35 19 24 20 20 N/A

2F – Healthy Food Financing Initiative

($0 from direct appropriations):

The Healthy Food Financing Initiative (HFFI) aims to eliminate “food deserts” – low-income 

urban and rural areas in the United States with limited access to affordable and nutritious food –

by financing interventions that expand the supply of, and demand for, nutritious foods. The 

objectives include increasing the distribution of agricultural products, developing and equipping 

grocery stores, and strengthening producer-to-consumer relationships.

Through the HFFI, the CDFI Fund awards CDFI Program funds to certified CDFIs to help 

address the need for healthy food in underserved and low-income communities. These 

organizations use federal grants, below market-rate loans, loan guarantees, and tax credits to 

attract private sector financing for projects that increase access to healthy food options.

Description of Performance:

The primary HFFI performance measure is the number of healthy food retail stores created and 

maintained in low-income areas that have been identified through detailed census tract analysis 

as having limited access to healthy food options. In FY 2017, the number of HFFI Retail outlets 

created was 24. Under the current continuing resolution, the target is 20 new retail outlets for 

FY 2018. 
CDFI Fund - 15

2.1.7 - Capital Magnet Fund Program Resource Detail Table

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Capital Magnet Fund 

Program Actual Actual Actual Actual Actual Annualized CR * Request

GSE Distribution NA NA NA $100,292 $119,413 $0 $0 

Budget Activity Total $0 $0 $0 $100,292 $119,413 $0 $0

FTE 0 0 0 0 7 7 0

* The Budget assumes no funds will be provided to the CMF in 2018 in accordance with the Federal Housing Finance Agency's 

2014 stated policy that funds will not be transferred if the transfer would cause the GSEs to draw on the Treasury funding 

commitment under the Preferred Stock Purchase Agreements (PSPAs). The Budget anticipates that such a draw will occur in 2018 

as a result of the enactment of tax reform legislation.

2G - Capital Magnet Fund Program

($0 from direct appropriations):

The CMF program was authorized by the Housing and Economic Recovery Act of 2008, which 

calls for recurrent funding of the CMF through allocations from the Government-Sponsored 

Enterprises (GSEs) Fannie Mae and Freddie Mac. Through CMF, the CDFI Fund provides grants 

to CDFIs and qualified non-profit housing organizations to finance affordable housing, community 

service facilities, and economic development. Award recipients can use funds to create financing 

tools such as loan loss reserves, revolving loan funds, risk-sharing loans, and loan guarantees. The 

Budget proposes to suspend new allocations into the CMF effective in FY 2019.

Description of Performance: 

The primary performance measures of the CMF are the number of affordable housing units for 

which CMF funding was a source of financing, and the degree to which private funding sources 

were leveraged by CMF financing. Data are included in performance table 2.1.1 above.

Awardee reports available through September 30, 2017, indicate that the total number of 

affordable homes under development or completed with CMF financing, through the end of the 

awardees’ FY 2016 were:

 13,325 affordable homes under development or completed with CMF financing (a net 

addition of 2,430)

o Affordable rental homes financed: 11,727 (a net addition of 2,220)

o Affordable homeowner-occupied homes financed: 1,598 (a net addition of 210)

 Leverage: 1:20 (This ratio does not include leverage from the reinvestment of funds. The 

target set by Congress was 10 times leveraging.) 

2.1.8 - Bond Guarantee Program Resource Detail Table

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Bond Guarantee Program Actual Actual Actual Actual Actual Annualized 

CR Request

Obligations $325,000 $200,000 $327,000 $265,000 $260,000 $500,000 $500,000 

Loan Limitation Obligation 

Authority $1,000,000 $750,000 $750,000 $750,000 $500,000 $500,000 $500,000 
CDFI Fund - 16

2.1.9 - Financing Accounts – Non-Budgetary Summary 

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Anualizd 

CR Request

Obligations $325,000 $200,000 $327,000 $265,000 $260,000 $500,000 $500,000 

Collections* $0 $356 $2,966 $9,377 $20,927 $44,720 $72,310

*Includes the principal and interest repayments and a 10 basis point fee for administrative expenses pursuant to Section 1134 of the 

Small Business Jobs Act of 2010. These amounts assume a zero subsidy rate with bond loan disbursement of $456 million and 

$427 million, in FY 2018 and FY 2019, respectively.

2H - CDFI Bond Guarantee Program

Through the CDFI Bond Guarantee Program, Treasury provides a 100 percent guarantee of

bonds (including principal, interest, and call premiums) issued by Qualified Issuers. Bonds 

issued through the program support CDFI lending and investment activity in underserved

communities by providing a source of long-term capital. Qualified Issuers use bond proceeds to 

finance loans to eligible CDFIs for community and economic development purposes. 

Since the inception of the program, the total amount of bonds guaranteed is $1.362 billion. A

total of 26 Eligible CDFIs and three Qualified Issuers participate in the CDFI Bond Guarantee 

Program. Upon the closing of each bond, the eligible CDFIs have five years to lend or disburse 

the bond proceeds.

The table below provides the year-to-date (YTD) and proposed disbursement for the top eight 

asset classes.

Asset Class

YTD 

Disbursements

($ millions)

YTD 

Disbursements 

(%)

Proposed

Disbursements

($millions)

Proposed 

Disbursements

(%)

Charter schools $192.3 33.2% $346.6 25.4%

Rental housing $149.4 25.8% $334.2 24.5%

Commercial real estate $91.9 15.9% $269.9 19.8%

Financing Entity $72.3 12.5% $150.6 11.1%

Healthcare Facilities $29.8 5.15% $68.4 5.0%

Not-for-profits $29.0 5.0% $94.0 6.9%

Small business $8.3 1.4% $ 29.5 2.2%

Daycare centers $6.2 1.1% $ 28.5 2.1%

Performance Measure Changes

With the publication of Treasury’s Strategic Plan for FY 2018-2022, the CDFI Fund will work 

this year to baseline the performance for the new strategic objectives. This could result in 

changes to performance measures in the FY 2020 budget.
CDFI Fund - 17

Section III – Additional Information

A – Summary of Capital Investments

As part of its FY 2019 capital investment strategy, the CDFI Fund plans to spend approximately 

$2.55 million for operations and maintenance of its Information Technology (IT). The CDFI 

Fund has no major IT investments, nor any capital investments other than IT.

Non-Major IT Investments

For FY 2019, the CDFI Fund has identified two non-major IT investments: Awards Management 

Information System (AMIS) and the CDFI Fund public website. AMIS is an enterprise-wide

commercial, cloud-based solution that supports CDFI Fund certification, tax credit allocation, 

bond guarantee, and grant programs. The first AMIS deployment was implemented in

September 2015. Full deployment is planned for September 2018. The CDFI Fund public 

website, which is another cloud-based solution, provides access to general information about the 

CDFI Fund and is used to ensure the public can obtain information and guidance regarding CDFI 

Fund programs. For FY 2019, the CDFI Fund plans to provide Operations and Maintenance 

(O&M) support for these two IT investments.

IT Infrastructure Investments

The CDFI Fund’s IT infrastructure is managed via an Interagency Agreement with the Alcohol 

and Tobacco Tax and Trade Bureau (TTB). Treasury has seen numerous benefits from the CDFI 

Fund/TTB arrangement. It increases utilization of Treasury’s data centers and enables the CDFI 

Fund to leverage existing Disaster Recovery and Continuity of Operations capabilities. The 

CDFI Fund avoids software upgrade costs by using TTB’s enterprise software licenses. This 

reduces duplicative services (such as Web monitoring and filtering) and eliminates contracts 

used to maintain the CDFI Fund’s IT infrastructure.

A summary of the CDFI Fund’s capital investment resources, including major IT and nontechnology investments can be found at: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx

This website also contains a digital copy of this document.