Department of the Treasury 

Community Development 

Financial Institutions Fund 

Congressional Justification 

for Appropriations and 

Annual Performance 

Report and Plan 

FY 2018 
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

2.1.4 – Bank Enterprise Award Program Performance and Measures ..................................... 11

2D – Bank Enterprise Award Program ..................................................................................... 11

2.1.5 – Native American CDFI Assistance Program Performance and Measures .................... 12

2E – Native American CDFI Assistance Program .................................................................... 12

2.1.6 - Healthy Food Financing Initiative Performance and Measures .................................... 13

2F – Healthy Food Financing Initiative .................................................................................... 13

2.1.7 - Capital Magnet Fund Program Resource Detail Table .................................................. 14

2G - Capital Magnet Fund Program.......................................................................................... 14

2.1.8 - Bond Guarantee Program Resource Detail Table ......................................................... 14

2.1.9 - Financing Accounts – Non-Budgetary Summary ......................................................... 14

2H - CDFI Bond Guarantee Program ....................................................................................... 14

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

A – Summary of Capital Investments ....................................................................................... 17
CDFI Fund - 3 

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 Fund (CDFI Fund) requests the following for 

FY 2018: 

 $14 million in administrative funding to support: 

- Management of the Community Development Financial Intuitions (CDFI) Bond 

Guarantee (BG) Program and the New Markets Tax Credit (NMTC) Program; and 

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

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

(NACA) Program and Healthy Food Financing Initiative (HFFI). 

 The Budget eliminates funding for the 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, as the program requires no credit subsidy. 

- The CDFI BG Program provides CDFIs access to a significant source of capital. The 

CDFI BG Program injects new and substantial capital into our nation’s most distressed 

communities by providing guarantees of bonds issued by Qualified Issuers. CDFIs 

benefit from the potential scale of the CDFI BG Program, which offers long-term credit 

at below-market 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. These benefits will be realized at no cost to 

taxpayers because the program requires no credit subsidy. 

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

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

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

maximum. 
CDFI Fund - 4 

1.1 – Appropriations Detail Table 

Dollars in Thousands

Community Development Fund 

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Community Development Fund Institutions 

Program 0 $153,423 0 $153,131 0 0 ($153,131) NA -100%

Bank Enterprise Award Program 0 $19,000 0 $18,964 0 0 ($18,964) NA -100.00%

Native American CDFI Assistance 

Program 0 $15,500 0 $15,471 0 0 ($15,471) NA -100.00%

Administration 77 $23,600 77 $23,555 42 $14,000 35 ($9,555) 45.45% -40.56%

Healthy Food Financing Program 0 $22,000 0 $21,958 0 0 ($21,958) NA -100.00%

Subtotal New Appropriated Resources 77 $233,523 77 $233,079 42 $14,000 35 ($219,079) 45.45% -93.99%

Other Resources*: NA NA

User Fees** 0 $220 0 $362 0 $619 0 $257 NA 70.99%

Recoveries from Prior Years 0 $3,375 0 $3,400 0 $3,400 0 $0 NA 0.00%

Unobligated Balances Brought Forward 0 $5,500 0 $21,545 0 $18,964 0 ($2,581) NA -11.98%

Subtotal Other Resources 0 $9,095 0 $25,307 0 $22,983 0 ($2,324) NA -9.18%

Total Budgetary Resources 77 $242,618 77 $258,386 42 $36,983 35 ($221,403) 45.45% -85.69%

* FY 2016 Other Resources are actual

**This request reflects authorization of the Bond Guranatee Program in FY 2016

Enacted Annualized Request $ Change % Change

FY 2016 FY 2017 FY 2018 FY 2017 to FY 2018

 
CDFI Fund - 5 

1.3 – Operating Levels Table 

Dollars in Thousands

Community Development Financial Institutions Fund FY 2016 FY 2017 FY 2018

Object Classification Actual* Annualized Request

 CR

11.1 - Full-time permanent $8,748 $9,311 $4,589

11.9 - Total personnel compensation $8,748 $9,311 $4,589

12.0 - Personnel benefits $2,866 $3,120 $2,160

Total Personnel and Compensation Benefits $11,614 $12,431 $6,749

21.0 - Travel and transportation of persons $72 $103 $37

22.0 - Transportation of things $0 $3 $1

24.0 - Printing and reproduction $5 $5 $2

25.1 - Advisory and assistance services $4,999 $3,355 $0

25.2 - Other services from non-Federal sources $170 $118 $63

25.3 - Other goods and services from Federal sources $5,726 $4,546 $5,518

25.7 - Operation and maintenance of equipment $523 $0 $1,603

26.0 - Supplies and materials $61 $59 $27

31.0 - Equipment $383 $2,935 $0

33.0 - Investments and loans $499 $0 $0

41.0 - Grants, subsidies, and contributions $188,466 $209,524 $0

Total Non-Personnel $200,904 $220,648 $7,251

Subtotal New Budgetary Resources $212,518 $233,079 $14,000

Budget Activities**: Column1 Column2 Column3

Community Development Financial Instituitions Program $156,798 $156,531 $3,400

Bank Enterprise Award Program** $24,500 $40,509 $18,964

Native American CDFI Assistance Program $15,500 $15,471 $0

Administration $23,820 $23,917 $14,619

Healthy Food Financing Program $22,000 $21,958 $0

Total Budgetary Resources $242,618 $258,386 $36,983

FTE 77 77 42

* FY 2016 actual includes FY 2015 awards made in FY 2016.

** All but Administration are funded with two-year appropriations.

*** The FY 2017 Bank Enterprise Award Program budget resource includes FY 2016 grant funding of $19 million 

to be awarded in FY 2017. The FY 2018 amount represents the FY 2017 grant funding that will be awarded in 

FY 2018.
CDFI Fund - 6 

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 2018, 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: Provided further, That such 

section 114A shall remain in effect until September 30, 2018. 

Note.—A full-year 2017 appropriation for this account was not 

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

assumes this account is operating under the Further Continuing 

Appropriations Act, 2017 (P.L. 114–254). The amounts included 

for 2017 reflect the annualized level provided by the continuing 

resolution.

 

Extension of the Bond 

Guarantee Program 

through FY 2018.

D – Legislative Proposals 

The Budget requests extension of the CDFI Bond Guarantee Program through FY 2018 and 

elimination of new allocations into the Capital Magnet Fund effective in FY 2018. 

Suggested 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". 

 
CDFI Fund - 7 

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 FY 2018-2022 Strategic 

Plan is currently under development. The Annual Performance Plan will be updated in the FY 

2019 Budget to reflect the new Treasury priorities. 

The CDFI Fund’s award recipients include Community Development Financial Institutions 

(CDFIs), Community Development Entities (CDEs), Federal Deposit Insurance Corporation 

(FDIC)-insured banks, and nonprofit housing organizations that together and in partnership with 

traditional banks and other community organizations 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 and communities 

in the United States that are feeling “left behind” 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 primary goal of the CDFI Fund’s Strategic Plan is to “increase the impact of the CDFI Fund 

network by supporting the growth, reach, and performance of CDFI Fund awardees.” The 

requested budget will advance this goal 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. 

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

required by the Riegle Act, and of CDEs. CDFI certification is a prerequisite for eligibility for 

the BG Program and the Capital Magnet Fund (CMF), as well as other federal programs outside 

the CDFI Fund. CDE certification is a prerequisite for eligibility for NMTC. 

 
CDFI Fund - 8 

B – Budget and Performance by Budget Activity 

2.1.1 Administration- Resources and Measures 

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $21,965 $21,764 $24,636 $23,100 $23,544 $23,555 $14,000 

Budget Activity Total $21,965 $21,764 $24,636 $23,100 $23,544 $23,555 $14,000 

FTE 79 76 76 79 77 77 42

Administration Budget Activity

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 - 

Actual Actual Actual Actual Actual Target Target Target FY 2016 

Trend

ALL - Award Cycle Time 

(Months)

6.5 6.8 7.9 8.3 7.6 7.0 7.0 7.0

All - Time to Initial 

Disbursement (# Months) 

N/A N/A N/A N/A B 4.5 4.5 4.5 N/A

ALL - Number of Affordable 

Housing Units Developed or 

Produced 

27,433 26,391 32,621 27,004 35,251 29,000 27,433 28,000 

Key: B - Baseline

2A - Administration 

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

This budget activity encompasses the CDFI Fund’s operational support and management 

activities for each of its ongoing award programs. This 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-application-award 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 2016, the cycle time was 7.6 months, missing the target 

of 7 months as a result of higher-than-expected application volume and the combining of the 

2015 and 2016 allocation rounds of the New Markets Tax Credit Program. In FY 2018, as a 

result of implementation of the CDFI Fund’s Award Management Information System, it is 

expected that processing of applications for ongoing programs (i.e., NMTC, CMF, and BG 

Programs) will take 7 months from intake to award announcement. 
CDFI Fund - 9 

 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. In FY 2016, the CDFI Fund developed new baseline data and targets for FY 

2017 and FY 2018, consistent with the award disbursement processes required by the Office 

of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and 

Audit Requirements for Federal Awards (Uniform Requirements or UAR). 

The All-Affordable Housing 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 allocatees. 

 

2.1.2 – Community Development Financial Institutions Program Resources and Measures 

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $146,035 $138,397 $146,364 $152,400 $153,423 $153,131 $0 

Budget Activity Total $146,035 $138,397 $146,364 $152,400 $153,423 $153,131 $0 

CDFI Program Budget Activity

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

CDFI - Percentage of Loans & 

Investments Originated in 

Eligible Distressed or 

Underserved Communities by 

Dollar Amount of Loans 

(Annual %)

84.9 77.1 70.8 80.1 80.9 60.0 60.0 N/A

CDFI - Percentage of Loans & 

Investments Originated in 

Eligible Distressed or 

Underserved Communities by 

Number of Loans

84.9 79.6 60.7 80.5 81.5 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 (housing development and homeownership); and 

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

underserved people and communities). 
CDFI Fund - 10 

Description of Performance:

The CDFI Program has two measures: (1) 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. 

Certification criteria require that all certified CDFIs originate at least 60 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 service distressed communities and 

underserved populations with their safety and soundness considerations. 

In FY 2016 the CDFI Program surpassed the 60 percent threshold for the percentage of both the 

dollar amount (80.9 percent) and the number (81.5 percent) of CDFI loans made to eligible 

distressed communities and underserved populations. 

For FY 2018 no target will be set for the program, although outcomes may still be reported for 

prior year awardees. 

2.1.3 – New Markets Tax Credit Program Resources and Measures 

Dollars in Thousands

New Market Tax Credit Program Budget Activity

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

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 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2011 -

Actual Actual Actual Actual Actual Target Target Target FY 2016 

Trend

NMTC - Percentage of Loans 

and Investments That Went 

Into Severely Distressed 

Communities

70.4 78.5 73.8 75.2 74.5 72.0 74.0 N/A

Key: DISC - Discontinued, B - Baseline

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. 
CDFI Fund - 11 

Description of Performance: 

The CY 2015 and CY 2016 NMTC investment authority was allocated in November 2016 as a 

combined round, in which the NMTC Program awarded $7 billion in NMTC investment 

authority to 120 CDEs, out of a pool of 238 applicants requesting $17.6 billion.

In FY 2016, 74.5 percent of NMTC investments were made in severely distressed communities 

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

continue to meet their commitments in severely distressed communities. 

2.1.4 – Bank Enterprise Award Program Performance and Measures 

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $18,000 $17,058 $18,000 $18,000 $19,000 $18,964 $0 

Budget Activity Total $18,000 $17,058 $18,000 $18,000 $19,000 $18,964 $0 

Bank Enterprise Award Program Budget Activity

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

BEA - Increase in Community 

Development Activities Over 

Prior Year For All BEA Program 

Applicants ($ million)

432 493 571 460 460 450 450 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. The CDFI Fund expects to award up to $19 million in appropriated BEA 

Program funds in the award round for FY 2016, which was deferred to FY 2017. The award 

round for FY 2017 is currently scheduled to open in late September 2017 with award 

announcements to be made in February 2018. 

The performance target for the FY 2016 round is set at $450 million in increased qualified 

community development activities. 
CDFI Fund - 12 

In FY 2017 the CDFI Fund also expects to publish a third-party evaluation of the BEA Program 

and its effectiveness in increasing FDIC-insured bank investments in the nation’s most distressed 

communities. 

2.1.5 – Native American CDFI Assistance Program Performance and Measures 

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $12,000 $11,372 $15,000 $15,000 $15,000 $15,471 $0 

Budget Activity Total $12,000 $11,372 $15,000 $15,000 $15,000 $15,471 $0 

Native American CDFI Assistance Program Budget Activity

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

NACA - Percentage of NACA 

Loans and Investments in 

Native Areas ($ Amount of 

Loans)

N/A 75.5 57.9 65.0 48.4 50.0 50.0 N/A

NACA - Percentage of NACA 

Loans and Investments in 

Native Areas (# of Loans %)

N/A 93.3 87.0 95.9 94.9 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: 

The CDFI Fund had created two new measures of performance for the NACA Program: the 

percentage of the number and 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 percent or more of their loans and 

investments in native areas or to native populations. As such, the target is a threshold that must 

be met or exceeded. The level of this threshold is set to allow the awardees to balance their 

mission of serving native areas and populations with safety and soundness considerations; hence 

this is not an increasing target. 

For FY 2018 no target will be set for the program because no funding is being requested, 

although outcomes still may be reported for prior year awardees. 
CDFI Fund - 13 

2.1.6 - Healthy Food Financing Initiative Performance and Measures 

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $22,000 $20,849 $35,000 $22,000 $22,000 $21,958 $0 

Budget Activity Total $22,000 $20,849 $35,000 $22,000 $22,000 $21,958 $0 

Healthy Food Financing Initiative Budget Activity

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

HFFI - Retail Outlets 

Created/Preserved

0 31 33 35 19 32 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. This 

includes 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 2016, the number of HFFI Retail outlets 

created was 19, which fell short of the target of 32 outlets. There is considerable variation in 

both size and type of HFFI retail outlet investments, making accurate targeting difficult. 

For FY 2018 no target will be set for the program because no funding is being requested, 

although outcomes still may be reported for prior year awardees. 
CDFI Fund - 14 

2.1.7 - Capital Magnet Fund Program Resource Detail Table 

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

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

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

FTE 0 0 0 0 0 7 6 

Capital Magnet Fund Program Budget Activity

2G - Capital Magnet Fund Program 

($0 from direct appropriations):

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

(HERA), 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 the new allocations into the CMF 

effective in FY 2018. 

2.1.8 - Bond Guarantee Program Resource Detail Table

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Reqest

Obligations $0 $325,000 $200,000 $327,000 $265,000 $432,000 $500,000 

Loan Limitation 

Obligation Authority $0 $0 $750,000 $750,000 $750,000 $750,000 $500,000 

Bond Guarantee Program

2.1.9 - Financing Accounts – Non-Budgetary Summary 

Dollars in Thousands

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Annualized 

CR Request

Obligations $0 $325,000 $200,000 $327,000 $265,000 $432,000 $500,000 

Collections $0 $0 $356 $2,966 $9,377 $29,813 $40,247 

Bond Guarantee Program

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 $121 million and $160 million, in FY 2017 and FY 2018, 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 
CDFI Fund - 15 

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 $1.1 billion. A total 

of 17 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 $150.2 35.8% $321.6 28.8% 

Rental housing $131.3 31.3% $270.5 24.2% 

Commercial real estate $ 86.5 20.6% $253.9 22.7% 

Not-for-profits $ 23.7 5.7% $ 92.7 8.3% 

Healthcare facilities $ 12.6 3.0% $ 68.4 6.1% 

Small business $ 7.7 1.8% $ 28.5 2.6% 

CDFI to financing entity $ 5.1 1.2% $ 15.6 1.4% 

Daycare centers $2.7 0.6% $ 28.5 2.6% 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Changes and Justification 

1. All – Disbursement Cycle Time 

measured in months. (Discontinue) 

This measure of the efficiency of the grant 

disbursement process has been replaced by the 

Uniform Administrative Requirements (UAR) 

which limits award disbursements to the amount 

that can be expended by recipients for allowable 

uses during the year. 

2. Time to Initial Disbursement measured in 

months. (New measure) 

The new measure evaluates the amount of time 

between award announcements and the initial 

disbursement of funds, thereby measuring 

disbursement efficiency as defined by the UAR. 

Reported in Congressional Justification (CJ) and 

Quarterly Performance Review (QPR). 

3. Bank Enterprise Award (BEA) Program 

– Increase in community development 

activities over prior year for all Program 

Applicants measured in $ millions. 

(Change to indicator) 

The BEA Program measure is an indicator rather 

than an output measure. Office of Performance 

Budgeting will work with the CDFI Fund to 

develop an output or outcome measure. Continue 

reporting in CJ and QPR. 

4. Native American CDFI Award (NACA) 

– Amount of loans/investments 

The current measure is volatile and does not 

effectively measure program performance. 
CDFI Fund - 16 

originated measured in $ millions. 

(Discontinue) 

5. NACA – Number of loans/investments 

originated measure by number of loans. 

(Discontinue) 

The current measure is volatile and does not 

effectively measure program performance. 

6. Percentage of NACA loans and 

investments in Native Areas measured by 

dollar amount of loans. (New Measure) 

The new measure will quantify the extent to 

which eligible areas are being served by NACA 

awardees in relation to annual total dollar 

loan/investment amount. Report new measure in 

CJ and QPR. 

7. Percentage of NACA loans and 

investments in Native Areas measured by 

number of loans. (New measure) 

The new measure will quantify the extent to 

which eligible areas are being served by NACA 

awardees in relation to annual total number of 

loan/investment activity. Report new measure in 

CJ and QPR. 

8. New Market Tax Credit – Community 

Development Entities’ annual qualified 

equity investments in low income 

communities ($billions). (Change to 

indicator) 

Targets are largely dependent on the annual tax 

allocation levels authorized by Congress. 

9. Healthy Food Financing Initiative – 

Number of Retail outlets 

created/preserved. (Change to indicator) 

The variation in the size and scope of retail 

projects is considerable, making it difficult to 

forecast targets. Continue reporting in CJ and 

QPR. 
CDFI Fund - 17 

Section III – Additional Information 

A – Summary of Capital Investments 

As part of its FY 2018 capital investment strategy, the CDFI Fund plans to spend approximately 

$4 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 2018, the CDFI Fund has identified three non-major IT investments: Awards 

Management Information System (AMIS); Community Investment Impact System (CIIS); and 

the CDFI Fund public website. AMIS is an enterprise, commercial, cloud-based solution that 

supports the CDFI Fund certification, tax credit allocation, bond guarantee, and grant programs. 

The first AMIS deployment went live in September 2015 with full deployment planned for 

September 2017. CIIS is a web-based data collection system that provides CDFI Fund program 

performance and outcome reporting to the Administration, Congress and the public. The CDFI 

Fund public website, which is another cloud-based solution, provides access to general 

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

regarding CDFI Fund programs. For FY 2018, the CDFI Fund plans to provide Operations and 

Maintenance (O&M) support for these three 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 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 

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

to maintain the CDFI Fund’s IT infrastructure. 

A summary of capital investment resources, including major information technology 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.