Community Development Financial Institutions 

Fund 

Mission Statement 

To expand the capacity of financial institutions to provide credit, capital and financial 

services to underserved populations and communities in the United States. 

Program Summary by Appropriations Account Dollars in Thousands 

Appropriation FY 2006 FY 2007 FY 2007 FY 2008

Program Account Enacted

President's 

Budget CR-rate Request

$ from 

CR-rate 

% from

CR-rate

Community Development 

Financial Institutions 

Program $30,969 $0 $23,007 $24,437 $1,430 6.22%

New Markets Tax Credit 

Program 4,254 4,314 3,802 4,120 318 8.36%

Bank Enterprise Award 13,417 0 9,591 0 (9,591) -100.00%

Native Initiatives 5,810 0 3,600 0 (3,600) -100.00%

Portfolio Management 0 3,507 0 0 0 0.00%

Total Appropriated Resources $54,450 $7,821 $40,000 $28,557 ($11,443) -28.61%

FY 2008 Priorities 

• Provide allocations of tax credits under the New Markets Tax Credit Program, 

• Provide grants, loans and equity investments under the CDFI Program, and 

• Manage the Fund’s existing portfolio of awards.
Table of Contents 

Section 1 – Purpose ........................................................................................................... 2

1A – Description of Bureau Vision and Priorities.......................................................... 2 

1B – Program History and Future Outlook..................................................................... 2 

Section 2 – Budget Adjustments and Appropriation Language................................... 4

2.1 – Budget Adjustments Table..................................................................................... 4 

2A – Budget Increases and Decreases Description......................................................... 4 

2.2 – Operating Levels Table.......................................................................................... 6 

2B – Appropriation Language ........................................................................................ 7 

2C – Legislative Proposals.............................................................................................. 7 

Section 3 – Budget and Performance Plan ..................................................................... 8

3.1 – Appropriation Detail Table.................................................................................... 8 

3A – Community Development Financial Institutions Program ................................... 8 

3.2.1 – Community Development Financial Institutions Program Budget and 

Performance Plan.......................................................................................................... 10 

3B – New Markets Tax Credit Program ...................................................................... 11 

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan................... 12 

Section 4 – Supporting Materials.................................................................................. 14

4.1 – Human Resources Table ...................................................................................... 14 

4A – Human Capital Strategy Description ................................................................... 14 

4.2 – Summary of IT Resources Table ......................................................................... 15 

4B – Information Technology Strategy ........................................................................ 16 

4.3 – PART Evaluation Table....................................................................................... 17 

CDFI - 1 
Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The mission of the Community Development Financial Institution Fund (the Fund) is to 

expand the capacity of financial institutions to provide credit, capital and financial 

services to underserved populations and communities in the United States. 

The Fund has three priorities: 

1. Issue Allocations of Tax Credits Under the New Markets Tax Credit (NMTC) Program

– The NMTC Program attracts private sector capital into low-income communities 

through Community Development Entities (CDEs). CDEs raise funds by providing tax 

credits to private investors in exchange for equity investments, which are then invested in 

low-income communities. CDEs apply for allocations of NMTCs through annual, 

competitive allocation rounds. 

2. Make Grants Under the Community Development Financial Institutions (CDFI)

Program – The CDFI Program provides financial assistance grants, technical assistance 

grants, and training to carry out the Fund’s mission of expanding the capacity of financial 

institutions to provide credit, capital and financial services to underserved populations 

and communities in the United States.

3. Manage the Existing Portfolio of Awards – Certain activities pertaining to the existing 

portfolio of grant awards are required. These activities consist of finalizing the terms of

assistance agreements with recent awardees, making disbursements under awards not 

fully disbursed as of the end of FY 2007, and monitoring awardee compliance with the 

terms of their three-year award assistance agreements. This later step includes reviewing 

annual reports provided by awardees to ensure that their performance meets the goals as 

stipulated in the assistance agreements and that unmet performance is explained. 

1B – Program History and Future Outlook 

The CDFI Fund administers direct funding programs in support of Community 

Development Financial Institutions (CDFIs) and also administers the New Markets Tax 

Credit (NMTC) Program. 

In FY 2006, the Fund processed $208 million of grant applications which resulted in 

awards totaling approximately $43 million through the Fund’s direct funding programs. 

The Fund also processed $28.3 billion of applications to the New Markets Tax Credit 

program, for which 63 allocations totaling $4.1 billion were made. These awards and 

allocations were processed in a seamless and timely manner using the Fund’s electronic 

award processing system. 

CDFI - 2 
As required under the Presidential Management Agenda (PMA) initiatives, during FY 

2006 the Fund took in 278 applications for its three grant programs through the 

consolidated Grants.gov intake system. The Fund also began preparing its migration plan 

to the PMA Grants Management Line of Business (GMLoB) initiative and has selected 

the Department of Health and Human Services, Administration for Children and Families 

as its partner for this effort. 

In FY 2006, the Fund reported 22,329 jobs created or retained by CDFI awardees and 

NMTC allocatees. In addition, the Fund’s financial assistance awards leveraged an 

additional $1.4 billion dollars, which equates to a leverage factor of $27:$1 (every $1 of 

the Fund’s financial assistance awards resulted in an additional $27 raised and leveraged 

by awardees). 

A significant accomplishment during FY 2005 was the full implementation of a webbased system that allows for the collection of data from Fund awardees – the Community 

Investment Impact System (CIIS). Data collected through FY 2006 provided the specific 

location and characteristics of each loan in an awardee’s portfolio and allows the Fund to 

measure impact at the census tract level and compare awardees’ lending behavior to that 

of traditional financial institutions. This management information system is important 

because CIIS enables the Fund to measure its performance against its targets and 

demonstrate how and where the Fund’s dollars are used. This impact performance 

management system is unique within the community development industry. 

The awarding of tax credit allocations under the NMTC Program was due to expire at the 

end of calendar year 2007. However, the 109th Congress passed legislation (P.L. 109-

432) in its final hours which included an extension of the New Markets Tax Credit 

Program through December 31, 2008, with an additional credit volume supporting $3.5 

billion in investor capital. 

CDFI - 3 
Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

Appropriation: Community Development Financial Institutions Fund FTE Amount

FY 2006 Appropriation (P.L. 109-115) 68 $55,000

Rescission (P.L. 109-148) 0 (550)

FY 2006 Enacted 0 $54,450

FY 2007 President's Budget 35 $7,821

CR-rate Adjustment 28 32,179

FY 2007 CR-rate 63 $40,000

Changes to Base: 

Maintaining Current Levels (MCLs):

Non-Pay Inflation Adjustment 77

Pay Annualization 24

Pay Inflation Adjustment 149

Total FY 2008 Base 63 $40,250

Program Decreases:

Bank Enterprise Award Program (7) (9,591)

Native Initiatives (6) (3,600)

Program Increases:

Community Development Financial Institutions Prog. 11 1,309

New Markets Tax Credit Program 2 189

Subtotal FY 2008 Program Changes 0 (11,693)

Total FY 2008 Request 63 $28,557

2A – Budget Increases and Decreases Description 

Adjustments ................................................................................+$32,179,000 / +28 FTE 

CR-rate Adjustment +$32,179,000 / +28 FTE Adjustment from the FY 2007 President's 

Budget to reach the FY 2007 Continuing Resolution annualized rate (CR-rate). 

Maintaining Current Levels (MCLs) ..............................................+$250,000 / +0 FTE 

Non-Pay Inflation Adjustment +$77,000 / +0 FTE Funds are requested for the non-labor 

related items such as contracts, travel, supplies, equipment and GSA rent adjustments. 

Pay Annualization +$24,000 / +0 FTE Funds are requested for the FY 2008 cost of the 

January 2007 pay increase. 

Pay Inflation Adjustment +$149,000 / +0 FTE Funds are requested for the proposed 

January 2008 pay raise. 

Program Decreases ......................................................................-$13,191,000 / -13 FTE 

Bank Enterprise Award Program -$9,591,000 / -7 FTE The Fund is not requesting 

resources for the Bank Enterprise Award (BEA) Program in FY 2008. 

Native Initiatives -$3,600,000 / -6 FTE No separate authorization exists for Native 

Initiatives so no separate set aside is being requested in FY 2008. 

CDFI - 4 
Program Increases .......................................................................+$1,498,000 / +13 FTE 

Community Development Financial Institutions Prog. +$1,309,000 / +11 FTE The Fund 

is seeking an increased level of funding for this program. Because no separate 

authorization exists for Native Initiatives, no separate funding is being requested in FY 

2008 for Native Initiatives and the related 6 FTEs used to administer Native Initiatives 

will instead be used to administer the CDFI Program. 

In addition, due to no funding being requested for the BEA Program in FY 2008, five of 

the seven FTEs utilized by the BEA Program will be moved to the CDFI Program. 

New Markets Tax Credit Program +$189,000 / +2 FTE Due to no funding being 

requested for the BEA Program in FY 2008, 2 (of the 7) FTEs utilized by the BEA 

Program will be moved to the NMTC Program. 

CDFI - 5 
2.2 – Operating Levels Table 

Dollars in Thousands 

Appropriation Title: Community Development

Financial Institutions Fund FY 2006 

Enacted

FY 2007 

President's 

Budget

CR-Rate 

Adjustment

FY 2007

CR-Rate

Proposed

Reprogrammings

FY 2007 

Proposed

Operating

Level

FY 2008 

Requested

Level

FTE 68 35 28 63 63 63

Object Classification:

11.1 Full-Time Permanent Positions......................... $5,349 $3,681 $1,513 $5,194 $5,194 $5,267

11.1 Other than Full-Time Permanent Positions....... 0 0 0 0 0 0

11.5 Other Personnel Compensation........................ 0 0 0 0 0 0

11.8 Special Personal Services Payments................ 0 0 0 0 0

11.9 Personnel Compensation (Total)................... $5,349 $3,681 $1,513 $5,194 $5,194 $5,267

12.0 Personnel Benefits............................................ 1,372 942 414 1,356 1,356 1,373

13.0 Benefits to Former Personnel...........................

0

. 0 0 0 0 0

21.0 Travel................................................................

0

. 103 70 42 112 112 112

22.0 Transportation of Things.................................... 20 20 0 20 20 20

23.1 Rental Payments to GSA................................... 1,118 898 517 1,415 1,415 1,428

23.2 Rent Payments to Others.................................. 48 15 79 94 94 94

23.3 Communications, Utilities, & Misc..................... 262 172 0 172 172 180

23.5 Telecommunications (includes WCF)........... 0 0 131 131 131 137

24.0 Printing and Reproduction................................. 10 10 10 20 20 20

25.1 Advisory & Assistance Services........................ 3,722 1,566 1,563 3,129 3,129 2,511

25.2 Other Services................................................... 393 169 169 338 338 271

25.3 Purchase of Goods/Serv. from Govt. Accts...... 1,093 206 443 649 649 598

25.4 Operation & Maintenance of Facilities............... 0 0 0 0 0

25.5 Research & Development Contracts................. 0 0 0 0 0 0

25.6 Medical Care..................................................... 0 0 0 0 0 0

25.7 Operation & Maintenance of Equipment...........

0

. 0 0 0 0 0

25.8 Subsistence & Support of Persons...................

0

. 0 0 0 0 0

26.0 Supplies and Materials...................................... 47 18 77 95 95 94

31.0 Equipment......................................................... 75 54 21 75 75 75

32.0 Lands and Structures........................................ 0 0 0 0 0 0

33.0 Investments & Loans......................................... 1,802 0 870 870 870 740

41.0 Grants, Subsidies.............................................. 39,036 0 26,330 26,330 26,330 15,637

42.0 Insurance Claims & Indemn.............................. 0 0 0 0 0 0

43.0 Interest and Dividends..............................

0

... 0 0 0 0 0

44.0 Refunds............................................................. 0 0 0 0 0 0

Total Budget Authority.......................................

0

... $54,450 $7,821 $32,179 $40,000 $0 $40,000 $28,557

Budget Activities:

Community Development Financial Institutions 

Program $30,969 $0 $23,007 $23,007 $23,007 $24,437

New Markets Tax Credit Program 4,254 4,314 (512) 3,802 3,802 4,120

Bank Enterprise Awards Program 13,417 0 9,591 9,591 9,591 0

Native Initiatives 5,810 0 3,600 3,600 3,600 0

Portfolio Management 0 3,507 (3,507) 0 0

Total Budget Authority.......................................

0

... $54,450 $7,821 $32,179 $40,000 $0 $40,000 $28,557

CDFI - 6 
2B – Appropriation Language 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

COMMUNITY DEVELOPMENT FINANCIAL 

INSTITUTIONS FUND PROGRAM ACCOUNT 

To carry out the Community Development Banking and 

Financial Institutions Act of 1994 (Public Law 103–325), 

including services authorized by 5 U.S.C. 3109, but at 

rates for individuals not to exceed the per diem rate 

equivalent to the rate for ES–3, $28,557,000, to remain 

available until September 30, 2009, of which up to 

$12,200,000 may be used for administrative expenses, 

including administration of the New Markets Tax Credit, 

up to $2,500,000 may be used for the cost of direct loans, 

and up to $250,000 may be used for administrative 

expenses to carry out the direct loan program: Provided, 

That the cost of direct loans, including the cost of 

modifying such loans, shall be as defined in section 502 of 

the Congressional Budget Act of 1974, as amended: 

Provided further, That these funds are available to 

subsidize gross obligations for the principal amount of 

direct loans not to exceed $5,000,000. 

Eliminates unauthorized 

set aside for Native 

Initiatives. 

2C – Legislative Proposals 

The CDFI Fund has no legislative proposals for FY 2008. 

CDFI - 7 
Section 3 – Budget and Performance Plan

3.1 – Appropriation Detail Table 

Dollars in Thousands 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

33 $30,969 23 $30,268 0 $0 31 $23,007 42 $24,437 35.48% 6.22%

New Markets Tax Credit Program 19 $4,254 15 $3,936 19 $4,314 19 $3,802 21 $4,120 10.53% 8.36%

Bank Enterprise Awards Program 6 $13,417 5 $13,286 0 $0 7 $9,591 0 $0 -100.00% -100.00%

Native Initiatives 10 $5,810 5 $5,416 0 $0 6 $3,600 0 $0 -100.00% -100.00%

0 $0 0 $0 16 $3,507 0 $0 0 $0 0.00% 0.00%

Subtotal New Appropriated Resources 68 $54,450 48 $52,906 35 $7,821 63 $40,000 63 $28,557 0.00% -28.61%

Other Resources:

Unobligated Balances 0 $4,033 0 $3,602 0 $0 0 $2,046 0 $500 0.00% -75.56%

Offsetting Collections 0 $732 0 $682 0 $0 0 $1,000 0 $1,000 0.00% 0.00%

Recoveries 0 $1,481 0 $1,431 0 $0 0 $2,000 0 $1,000 0.00% -50.00%

Subtotal Other Resources 0 $6,246 0 $5,715 0 $0 0 $5,046 0 $2,500 0.00% -50.46%

Total Resources Available for Obligation 68 $60,696 48 $58,621 35 $7,821 63 $45,046 63 $31,057 0.00% -31.05%

Portfolio Management

CR-Rate Request to FY 2008

Community Development Financial

Institutions Program

Resources Available for Obligation Enacted Obligations President's Budget

% Change

FY 2006 FY 2006 FY 2007 FY 2007 FY 2008 FY 2007

3A – Community Development Financial Institutions Program ($24,437,000 from 

direct appropriations): The CDFI Program enables the Fund to carry out its mission of 

expanding the capacity of financial institutions to provide credit, capital and financial 

services to underserved populations and communities in the United States. The CDFI 

Program also addresses Treasury’s strategic objective to increase economic growth and 

create jobs. The program is comprised of three components: Financial Assistance, 

Technical Assistance, and Training. 

• Financial Assistance awards are only provided to entities that have been certified 

by the Fund as meeting the statutory criteria to be a CDFI. Because of the wide 

range of institution types that can be certified as CDFIs, the financial assistance 

application process contains a degree of complexity not shared by other Fund 

award programs. Each applicant must describe and demonstrate its financial 

health, management capacity, and ability, based on historic and future projected 

activity, to deliver a product or service that will increase access to capital, credit 

and quality financial services in underserved communities. For every $1 in 

financial assistance awards, awardees are able to raise an additional $27, so the 

approximately $12.4 million in FY 2008 FA awards should result in an additional 

$335 million raised and deployed into low income communities. 

• Technical Assistance grants serve to secure a sound foundation for developing 

CDFIs and can be used for training, technology and other one-time costs 

generally related to start-up or major growth phases of a CDFI. 

• Training programs are designed to support identified areas of skills improvement 

for CDFIs and other members of the financial service industry. The program

supports Treasury’s objective to increase economic growth and create jobs by 

providing needed education and support for skills development to enable relevant 

parties to deliver or utilize financial services. 

CDFI - 8 
Other Resources: Other resources of funds in FY 2008 total $2,500,000 which are 

available for use by the CDFI Program, as follows (amounts in thousands): 

Amount

Available

Unobligated Balances 

$ 500

Offsetting Collections

$ 1,000

Recoveries

$ 1,000

$ 2,500

Consists of awards obligated during FY 2007 which were subsequently

deobligated, and so are available for obligation in FY 2008.

Consists of amounts appropriated for FY 2007 not obligated by the end of 

that fiscal year. The Fund's appropriations are available for use over a twoyear period

Consists of investment income as well as the proceeds from the redemption 

of investments, available for new awards

The Fund’s Financial Assistance Awards Pay for Themselves 

Financial assistance (FA) awards in the form of grants, loans and equity investments are 

used by awardees to invest in businesses and real estate in economically distressed areas. 

These investments create jobs and increase the amount of residential housing and 

commercial real estate. 

These jobs created, along with the increase in residential housing and commercial real 

estate, result in an increase in tax revenue (consisting of Federal, state and local income

taxes, and social security taxes), reduce the amount of state unemployment benefits paid 

out, and increase the amount of local property taxes. 

The Fund calculates that FA awards disbursed by the Fund during FY 2004 of 

approximately $68 million will create approximately 10,600 jobs, finance almost 34,000 

residential housing units, and will finance $245 million of commercial real estate. The 

resulting annual increase in Federal, state and local taxes and benefits will be 

approximately $84 million, as follows: 

 

• Federal tax benefits: an additional $12.9 million, consisting of Federal income

and social security taxes; 

• State benefits: an additional $21.9 million consisting of state income taxes and a 

reduction in the amount of unemployment benefits paid out; and 

• Local tax benefits: an additional $49.6 million in residential and commercial real 

estate taxes collected. 

CDFI - 9 
Based on the above, Fund FA awards pay for themselves in five years with just the 

increase in Federal tax revenue alone. When state and local benefits are factored in, Fund 

awards pay for themselves in a single year 

3.2.1 – Community Development Financial Institutions Program Budget and 

Performance Plan 

Dollars in Thousands 

Community Development Financial 

Institutions Program Budget Activity

Includes Strategic Objective E1A

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $41,160 $31,560 $30,969 $0 $24,437

 Other Resources 0 0 0 0 0

Total Operating Level $41,160 $31,560 $30,969 $0 $24,437

Human Resources

 Appropriated FTE 41 33 33 0 42

 Other FTE 0 0 0 0 0

Total FTE (direct and reimbursable) 41 33 33 0 42

Community Development Financial 

Institutions Program Budget Activity

Includes Strategic Objective E1A

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline $5,130 $6,920 $5,130

Actual $5,130 $8,710

Administrative costs per Financial Assistance 

(FA) application processed (E) 

Met Yes No

Target $669 $500 $1,100 $861 $643

Actual $1,300 $1,800 $1,400

Dollars of private and non-CDFI Fund 

investments that CDFIs are able to leverage 

because of their CDFI Fund Financial 

Assistance. (in millions) (Oe)

Met Yes Yes Yes

Target 5,852 26,995 29,158 34,009 37,000

Actual 9,212 23,656 22,329

Number of full-time equivalent jobs created or 

maintained in underserved communities by

businesses financed by CDFI Program 

Awardees and New Markets Tax Credit (NMTC) 

Allocatees (Oe) 

Met Yes No No

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

FY 2007 Performance Targets are based on the FY 2007 CR-rate 

Description of Performance: 

In fiscal year 2006, the Fund made $24 million in FA awards to CDFIs that primarily 

serve rural and urban low-income communities. 

In FY 2006, the Fund reported that it significantly exceeded the $1.1 billion private 

leverage goal for FA funds by leveraging $1.4 billion in private and non-CDFI Fund 

dollars. The Fund also exceeded the reported FY 2004 and FY 2005 private leverage 

goals. Furthermore, awardees have reported greater project leverage by partnering with 

other entities to finance projects. Overall, the leverage ratio has increased from $20:$1 to 

$27:$1 from fiscal year 2004 to fiscal year 2006. 

 

CDFI - 10 
FY 2005 was the second year in a row that the Fund greatly exceeded the established 

target of leveraging its award dollars. As a result, in November 2005, the Fund adjusted 

the outyear targets which are now based on these higher actual leverage ratios to ensure 

that the targets are challenging, yet realistic. 

The table above shows performance information pertaining to the number of jobs created 

or retained for all budget activities. The breakdown of this information by budget 

activity is as follows: 

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target

CDFI 5,852 5,417 7,132 5,990 5,615

NMTC Baseline 21,288 22,026 28,019 31,385

BEA* - 250 - - -

Total Target 26,955 5,852 29,158 34,009 37,000 

Actual

CDFI 7,179 12,335 13,777 NA NA

NMTC 905 11,321 8,552 NA NA

BEA* 1,128 NA NA NA NA

Total Actual 23,656 9,212 22,329 NA NA

*The BEA Program was a component of the target number in FY 2005. 

The performance measure was rewritten and BEA is no longer included.

The Fund did not achieve the goal of 29,158 full-time equivalent (FTE) jobs expected for 

FY 2006. The shortfall is driven by an overestimate of the number of jobs that the 

NMTC program would create or maintain per year. The Fund developed the FY 2006 

NMTC FTE jobs target based on data from the allocatees’ FY 2003 performance. The 

Fund encountered two difficulties when working with the FY 2003 data set. First, the 

data set is small representing only eight organizations and 28 transactions. Second, the 

data set represents the initial year of the NMTC activity, so the transactions may not be 

“typical” moving forward. The Fund is currently reviewing allocatees’ FY 2005 actual 

performance data. Once these data are final, the Fund plans to use them and the FY 2004 

actual performance data to revise future year performance targets. 

3B – New Markets Tax Credit Program ($4,120,000 from direct appropriations): The 

NMTC Program spurs investment of private capital into a range of privately managed 

investment vehicles called Community Development Entities (CDEs). CDEs apply for 

allocations of NMTCs through annual, competitive allocation rounds. CDEs receiving an 

allocation of tax credits provide tax credits to private sector investors in exchange for 

equity investments in the CDEs. The CDEs then use the proceeds from these equity 

investments to make loans and equity investments in New Markets businesses located in 

CDFI - 11 
and serving economically distressed communities. The investors in the CDEs receive a 

credit against Federal income taxes for making the qualified equity investments, which 

must in turn be used to invest in low-income communities. The credit provided to 

investors totals 39 percent of the cost of the investment and is claimed over a seven-year 

credit allowance period. A total of $19.5 billion in investor capital will be raised under 

the NMTC Program. Four funding rounds have been completed corresponding to tax 

credit allocations supporting $12.1 billion in private sector capital, with the final round to 

occur in FY 2008. The final allocation round will provide tax credit allocations 

supporting $3.5 billion in investor capital. 

The Gulf Opportunity Zone legislation, passed in December of 2005 to reach areas 

harmed by Hurricane Katrina, authorized the Fund to provide an allocation of tax credits 

supporting an additional $1 billion of investor capital to qualified applicants in Alabama, 

Mississippi and Louisiana. The Fund allocated tax credits supporting $600 million of this 

amount in addition to the $3.5 billion it awarded in the fourth round in 2005. The Fund 

will allocate tax credits supporting the remaining $400 million when it makes the 2007 

allocation of $3.5 billion. 

The FY 2008 budget request will fund the costs required to administer the NMTC 

program (because it is a tax credit program, there is no required program funding such as 

under the Fund’s grant programs). 

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan 

Dollars in Thousands 

New Markets Tax Credit Program 

Budget Activity

Includes Strategic Objective E1A

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $4,700 $6,494 $4,254 $4,314 $4,120

 Other Resources 0 0 0 0 0

Total Operating Level $4,700 $6,494 $4,254 $4,314 $4,120

Human Resources

 Appropriated FTE 19 19 19 19 21

 Other FTE 0 0 0 0 0

Total FTE (direct and reimbursable) 19 19 19 19 21

New Markets Tax Credit Program Budget 

Activity

Includes Strategic Objective E1A

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline $5,390 $4,875 $5,390

Actual $5,390 $4,360

Administrative costs per number of New Markets 

Tax Credit (NMTC) applications processed ($) 

(E) Met Yes Yes

Target Baseline $1.4 $1.6 $2.1 $2.5

Actual $0.1 $1.1 $2

Amount of investments in low-income 

communities that Community Development 

Entitites (CDEs) have made with capital raised 

through their New Markets Tax Credit (NMTC) 

tax credit allocations ($ in billions)(Oe) 

Met Yes No Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

FY 2007 Performance Targets are based on the FY 2007 CR-rate 

CDFI - 12 
Description of Performance: 

In fiscal year 2006, the Fund made $4.1 billion in tax credit allocations, providing 

recipients the potential ability to raise this amount of capital to invest in low-income

communities. The Fund works closely with the IRS to implement this program. 

In FY 2006, CDEs exceeded the anticipated $1.6 billion in Qualified Low Income

Community Investments (QLICIs), by closing $2.0 billion in QLICIs. Given the newness 

of the NMTC Program, the Fund is just beginning to get a realistic picture of how quickly 

the NMTC dollars will flow. The Fund will continue to analyze the increasing rate that 

allocatees raise equity and make qualified investments, and use this analysis to set 

appropriate targets going forward. 

Currently performance pertaining to the number of jobs created or maintained, as it 

pertains to the NMTC Program, is included in the measure found under the CDFI 

Program budget activity on page 10. 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treas.gov/offices/management/dcfo/accountability-reports/2006-

par/Part_IV_Appendices.pdf

CDFI - 13 
Section 4 – Supporting Materials 

4.1 – Human Resources Table 

Changes in Full Time Equivalents

Direct FTE FY 2006 FY 2007 FY 2008

Base: Year-end Actual from Prior Year 50 48 63

Increases:

Reason #1: Backfilling of prior-year and 

current-year vacant positions. 4 20 10

Subtotal, Increases 4 20 10

Decreases:

Reason #1: Normal Attrition. -6 -5 -6

Reason #2: Net reduction due to reduction in 

program funding. -4

Subtotal, Decreases -6 -5 -10

Year-end Actual/Estimated FTEs 48 63 63

Net Change from prior year SOY to budget year EOY 15

4A – Human Capital Strategy Description 

The FY 2007 CR-Rate provides resources for the Bank Enterprise Award (BEA) 

program, Native Initiatives, and the CDFI program. This $40 million budget will also 

fund the administrative costs for operating the New Markets Tax Credit Program. 

A total of 7 FTEs administer the BEA Program of which 4 FTEs pertain to specific 

individuals and 3 FTEs pertain to BEA-related tasks performed by several people. All 

BEA-related skills are transferable to other Fund activities. Without the need to 

administer the BEA Program in FY 2008, the Fund will transfer the 7 BEA FTEs to other 

Fund activities, and not hire any new positions in FY 2008. The Human Capital 

Challenge for FY 2008 is to manage the number of FTEs and the related skill sets in FY 

2007 to minimize the need for any FTE changes in FY 2008 and thereafter in the event of 

program funding changes. 

In addition, the FY 2008 budget request does not include the separate set aside for Native 

Initiatives. The related FTEs used to administer the Native Initiatives program will 

instead be used to administer the CDFI Program. 

CDFI - 14 
4.2 – Summary of IT Resources Table 

Dollars in Millions

FY 2006 FY 2007 

Major IT

Investments /1 Budget Activity/Funding Source

Identify the Program that

the System is Aligned to

Operating

Plan Obligations

Operating

Plan

President's 

Budget 

NoneSubtotal, Major IT Investments $0.0 $0.0 $0.0 0.0% $0.0 Non-Major IT InvestmentsCommunity InvestmentImpact System (CIIS)

Community Development Financial Institutionsand New Markets Tax Credit Programs

Community Development Financial Institutions and New Markets Tax Credit Programs

0.65 1.00 0.67 -33.0% 0.00 

Subtotal, Non-Major IT Investments $0.65 $1.00 $0.67 -33.0% $0.00 Infrastructure InvestmentsCDFI Infrastructure (Telecommunications)

Community Development Financial Institutions,Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

Community Development Financial Institutions, Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

0.20 0.20 0.20 0.0% 0.15 

CDFI Infrastructure (Office Automation)

Community Development Financial Institutions,Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

Community Development Financial Institutions, Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

2.26 2.46 2.69 9.3% 0.75 

CDFI Infrastructure(IT Security)

Community Development Financial Institutions,Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

Community Development Financial Institutions, Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

0.24 0.11 0.36 227.3% 0.00 

CDFI Infrastructure (Infrastructure)

Community Development Financial Institutions,Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

Community Development Financial Institutions, Bank Enterprise Awards, Native Initiatives and New Markets Tax Credit Programs

0.32 0.08 0.19 137.5% 0.10 

Subtotal, Infrastructure Investments $3.02 $2.85 $3.44 20.7% $1.00 Enterprise ArchitectureNoneSubtotal, Enterprise Architecture $0.00 $0.00 $0.00 0.0% $0.00 Total IT Investments $3.67 $3.85 $4.11 6.8% $1.00 /1 These investments do not meet the criteria for OMB's Exhibit 300

FY 2005 % Change 

from FY05

Actuals to

FY06

fr

CDFI - 15 
4B – Information Technology Strategy 

The CDFI Fund does not have any Major IT investments (using Department of the 

Treasury guidelines for defining Major IT investments), and, as such, is not required to 

submit an OMB 300. The CDFI Fund does, however, have a formal IT review and 

planning process which is overseen by the Technology Investment Board Executive 

Committee (TIBEC), which consists of three senior agency officials and is advised by the 

Chief Information Officer. The goal of this committee is to ensure that the CDFI Fund’s 

IT investments are tied to the organization’s strategic plan, support the agency’s mission 

and remain strictly within the approved budget. The TIBEC also ensures that the 

agency’s IT strategic goals conform with required legislation and Treasury and 

Presidential goals, such as the Federal Information Security Management Act (FISMA), 

Grants.gov and the Grants Management Line of Business. 

CDFI - 16 
4.3 – PART Evaluation Table 

PART Name: Bank Enterprise Award (BEA) Program

Year PARTed: FY 2002

Rating: Results Not Demonstrated/Measures Adequate

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. While there is some evidence that BEA awardees use awards to reinvest in community development 

initiatives, program results are hard to measure because it cannot be determined how awardees would 

behave in the absence of the program.

2. As the award is for past performance, there are no prospective performance requirements on how

awardees spend award funds. This prevents the Fund from ensuring that program awardees commit to the

long-term goals of the program.

3. Conduct an independent evaluation of the program.

4. Measure progress in meeting long-term outcome goals and annual performance goals.

5. Make statutory changes to the authorizing legislation that would clearly distinguish this program from the

mandates of the Community Reinvestment Act and would insure that award funds are spent on community

development activities.

1. The Fund determined that it could more effectively achieve its strategic objectives if the BEA Program 

regulations and NOFA were revised to target awards:

To CDFIs with a greater need for the incentive provided by the BEA Program award, and

To "personal wealth" and "community asset" building activities.

The BEA Program revised interim rule and subsequent NOFAs contain several revisions to ensure that the 

program:

Better targets awards to community development activities in distressed areas, and

5. The Fund considered amending the BEA statute to allow it to make awards based on prospective 

commitments to engage in innovative investment activities but determined that it was not politically feasible.

Achieves greater operational efficiencies for applicants and the Fund.

2. The Fund had been planning to conduct an evaluation of the BEA Program in FY 2006 but discontinued 

that planning when it was believed that the Program would cease to exist in FY 2006.

3. The Fund had been planning to conduct an evaluation of the BEA Program in FY 2006 but discontinued 

that planning when it was believed that the Program would cease to exist in FY 2006. Congress ultimately

appropriated funding for the BEA Program in FY 2006. As part of its FY 2006 appropriation, Congress 

requested that GAO perform a review of the BEA Program, which was recently completed. The GAO issued 

its report in July 2006.

4. The Fund began measuring progress toward meeting long-term and annual goals in FY 2003 and has

measured progress annually since then.

CDFI - 17 
PART Name: CDFI Fund: Finance and Technical Assistance

Year PARTed: FY 2004

Rating: Adequate

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. The Fund has built the IT system needed to set a target for the second long-term measure.

5. A contract to evaluate the program was awarded in FY 2005 and is currently underway.

a. Fewer than 10 states administer CDFI programs and none of these state programs fully meets the

capital needs of the CDFIs in its state. Furthermore, CDFIs in 40 states do not have access to any state

CDFI program.

b. There are too few private sector equity investments available to meet CDFIs' needs for capital.

3. The Fund conducted the analysis needed, set the baseline for the efficiency measure and began

measuring progress in FY 2006.

4. The Fund made disaggregated data available to the public in January 2005 and will continue to do so

annually.

1. The CDFI Program is not unique because several states administer similar programs and CDFIs can use

private sector equity investment to accomplish activities they otherwise would accomplish with CDFI Fund

awards.

1. The Fund is not taking any action related to the duplication/redundancy finding because:

4. Make disaggregated program performance data available to the public.

5. Conduct an independent evaluation of the program.

2. Set a target and timeframe for the second long-term measure.

3. Establish a baseline for the efficiency measure, set a target, and measure progress in achieving this

target.

CDFI - 18 
PART Name: New Markets Tax Credit (NMTC)

Year PARTed: FY 2004

Rating: Adequate

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

4. In FY 2005 the Fund issued an RFP for an independent evaluation of the program and the multi-year

evaluation began in the last quarter of FY 2006.

3. The Fund conducted the analysis needed, set the baseline for the efficiency measure and began

measuring progress in FY 2006.

2. NMTC Program allocatees submitted data in June 2005 that the Fund needed in order to set performance

measure targets. The Fund set targets and began measuring its achievements in FY 2005.

1. The program is not unique because other federal, state and local tax credit programs are available and

because numerous programs at HUD (CDBG) and Commerce (EDA) augment the NMTC Program goal of

improving low-income communities.

2. Set targets for the annual performance measures and measure performance in achieving them.

3. Establish a baseline for the efficiency measure, set a target, and measure progress in achieving this

target.

1. The Fund is not taking any action on the duplicative/redundancy finding because, in the Fund's opinion, 

the other available programs complement rather than duplicate the NMTC Program.

4. Conduct an independent evaluation of the program.

For a complete list of PART results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html

CDFI - 19