Community Development

Financial Institutions Fund

FY 2017

President’s Budget

February 9, 2016
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Table of Contents

Section 1 – Purpose........................................................................................................................3

1A – Mission Statement................................................................................................................3

1.1 – Appropriations Detail Table ..........................................................................................3

1B – Vision, Priorities, and Context............................................................................................3

Section 2 – Budget Adjustments and Appropriations Language ..............................................9

2.1 – Budget Adjustments Table..................................................................................................9

2A – Budget Increases and Decreases Description ....................................................................9

Section 2 – Budget Adjustments and Appropriations Language ............................................11

2.2 – Operating Levels Table........................................................................................................11

2B – Appropriations Language and Explanation of Changes................................................12

2C – Legislative Proposals .........................................................................................................14

Section 3 – Budget and Performance Plan ................................................................................16

3.1.1 – Administration Budget and Performance Plan .................................................................17

3B - Community Development Financial Institutions Program...................................................17

3.1.2 – CDFI Program Budget and Performance Plan............................................................18

3C – New Markets Tax Credit Program.......................................................................................18

3.1.3 – New Markets Tax Credit Program ...............................................................................19

3D – Bank Enterprise Award Program.........................................................................................19

3.1.4 – Bank Enterprise Award Program.................................................................................20

3E – Native American CDFI Assistance Program .......................................................................20

3.1.5 – Native American CDFI Assistance Program ...............................................................21

3F – Healthy Food Financing Initiative........................................................................................21

3.1.6 – Healthy Food Financing Initiative ................................................................................22

3G - Capital Magnet Fund Program.........................................................................................22

3H - CDFI Bond Guarantee Program ......................................................................................23

3.1.7 – Bond Guarantee Program Resource Detail Table.......................................................24

3.1.8 – Financing Accounts – Non-Budgetary Summary ........................................................24

Section 4 – Supplemental Information ......................................................................................25

4A – Summary of Capital Investments.....................................................................................25
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Section 1 – Purpose

1A – Mission Statement

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

increase economic opportunity and promote community development investments for underserved 

populations and in distressed communities in the United States.

1.1 – Appropriations Detail Table

Dollars in Thousands

Community Development Financial Institutions Fund FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

Appropriated Resources Enacted Enacted Request $ Change % Change

 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Community Development Financial Institutions Program 0 152,400 0 153,423 0 153,423 0 0 0% 0%

Bank Enterprise Award Program 0 18,000 0 19,000 0 19,000 0 0 0% 0%

Native American CDFI Assistance Program 0 15,000 0 15,500 0 15,500 0 0 0% 0%

Administration 79 23,100 79 23,600 87 26,000 8 2,400 10.13% 10.17%

Healthy Food Financing Initiative 0 22,000 0 22,000 0 22,000 0 0 0% 0%

Small Dollar Loan Program 0 0 0 0 0 10,000 0 10,000 0% N/A

Subtotal New Appropriated Resources 79 $230,500 79 $233,523 87 $245,923 8 $12,400 10.13% 5.31%

Other Resources:

User Fees* 0 1,040 0 1,059 0 1,269 0 210 0% 19.83%

Recovery from Prior Years 0 3,924 0 5,200 0 5,200 0 0 0% 0%

Unobligated Balances from Prior Years 0 10,856 0 5,500 0 5,500 0 0 0% 0%

Subtotal Other Resources 0 $15,820 0 $11,759 0 $11,969 0 $210 0% 1.79%

Total Budgetary Resources 79 $246,320 79 $245,282 87 $257,892 8 $12,610 10.13% 5.14%

*Portion reflects authorization of the Bond Guarantee Program

1B – Vision, Priorities, and Context

The CDFI Fund’s vision is to economically empower America’s underserved and distressed

communities. Our priority is to advance the Department of the Treasury’s Strategic Goal No. 1:

Promote domestic economic growth and stability while continuing reforms of the financial system. 

The CDFI Fund is uniquely positioned as the federal government entity whose primary mission is 

to build the capacity of CDFIs to provide loans, investments, business counseling, basic banking 

services, and financial literacy training to underserved and distressed communities.

Since its creation in 1994, the CDFI Fund has awarded almost $2.3 billion to CDFIs, community 

development organizations, and insured depository institutions through the CDFI Program, the 

Native American CDFI Assistance Program (NACA Program), Healthy Food Financing Initiative 

(HFFI), and the Bank Enterprise Award (BEA) Program. In addition, the CDFI Fund has allocated

$43.5 billion in New Markets Tax Credit (NMTC) allocation authority through the NMTC 

Program to Community Development Entities (CDEs), and awarded $80 million through the 

Capital Magnet Fund (CMF). Under the FY 2013, FY 2014, and FY 2015 authorities in the CDFI 

Bond Guarantee Program, the Department of the Treasury provided seven bond guarantees totaling 

$852 million to Qualified Issuers that provided bond loans to sixteen Eligible CDFIs.

The CDFI Fund continues to experience growth in the demand for its award programs: 

• CDFI Program -- For the FY 2015 funding round of the CDFI Program, the CDFI Fund 

received 356 qualified applications requesting more than $435 million in total funding. In

addition, the CDFI Fund received applications from 33 qualified organizations requesting 
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over $101 million for the Healthy Food Financing Initiative-Financial Assistance (HFFI-FA)

Program. In September 2015, the CDFI Fund announced that 152 organizations received $160 

million in CDFI Program awards. Additionally, 11 organizations received $22 million in 

HFFI-FA awards.

• NACA Program -- For the FY 2015 NACA Program funding round, the CDFI Fund received 

54 qualified applications requesting $34 million in funding. In September 2015, the CDFI 

Fund announced that 43 organizations received nearly $20 million in NACA Program awards.

• NMTC Program -- For the CY 2014 NMTC Program allocation round, the CDFI Fund 

received 263 qualified applications requesting approximately $19.9 billion in total allocation 

authority, and made 76 awards totaling approximately $3.5 billion. The CDFI Fund opened the 

CY 2015 NMTC Program award round in October 2015.

• BEA Program -- For the FY 2015 BEA Program funding round, the CDFI Fund received 103

qualified applications requesting approximately $177 million in awards. In September 2015, 

the CDFI Fund announced that 83 organizations received approximately $18.1 million in BEA 

Program awards.

• CDFI Bond Guarantee Program -- For FY 2015, the maximum guarantee authority was $750 

million and the CDFI Fund received six guarantee applications seeking a total of $680 million 

in guarantee authority. In FY 2015, the Department of the Treasury provided three bond 

guarantees totaling $327 million to Qualified Issuers that provided bond loans to nine Eligible 

CDFIs.

FY 2015 Priorities and Progress

In FY 2015, the CDFI Fund focused on a number of priority initiatives related to its award 

programs and business processes.

Priority 1: CDFI Program Evaluation: The CDFI Fund released two evaluation reports in March

2015 that provide the first-ever analysis and evaluation of the effectiveness of CDFIs compared to 

mainstream lenders. The first report, CDFIs Stepping Into the Breach: An Impact Evaluation 

Summary Report, undertaken by Michael Swack, Eric Hangen and Jack Northrup from the Carsey 

School of Public Policy at the University of New Hampshire, is an analysis of the impact of 

financial assistance awards from the CDFI Program on CDFI loan fund recipients. The second 

report, Introduction to Risk and Efficiency among CDFIs: A Statistical Evaluation using Multiple 

Methods, conducted by Gregory Fairchild from the Darden School of Business at the University of 

Virginia and Ruo Jia from the Stanford Graduate School of Business, is an analysis of CDFI banks 

and credit unions to assess their risk of failure and their operational efficiency relative to 

mainstream financial institutions. 

The reports concluded that CDFIs are resilient and a reliable resource for capital in underserved 

communities, manage risk as well as more conventional lenders, and perform as efficiently as 

mainstream financial institutions. The reports recommended that the CDFI Fund better measure 

the performance and impact of CDFIs. In response to these findings, the CDFI Fund developed 

the Annual Certification and Data Collection Report that all certified CDFIs will be required to 

complete. The CDFI Fund will use this data to better understand the structure and performance of 
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the CDFI industry. As discussed below, this is one component of the CDFI Fund’s risk assessment

framework.

Priority 2: Expanding CDFI Investments in Underserved Areas: In FY 2014, the CDFI Fund 

launched a new multi-year capacity building initiative called “Expanding CDFI Investments in 

Underserved Areas.” This initiative was developed in response to a Congressional request, backed 

by funding in the CDFI Fund’s FY 2014 appropriation, to expand the reach of CDFIs into 

underserved communities. In FY 2015, the CDFI Fund provided advanced training and technical 

assistance to CDFIs, including one-on-one assistance and peer cohort forums, to increase their

presence and investment activity in underserved communities. The CDFI Fund’s Virtual Resource 

Bank made the materials and toolkit from the three free, in-person training sessions conducted in 

FY 2015 available to the public. In FY 2016, the CDFI Fund will conduct 15 recorded technical 

assistance webinars on topics related to expanding CDFI coverage in underserved areas and 

provide additional online resources on topics related to market analysis, expanding business 

operations and models, capitalizing CDFIs, forming new entities, measuring CDFI impact, and 

increasing collaboration and partnerships.

Priority 3: Native CDFI Capacity and Sustainability: In FY 2014, the CDFI Fund launched a multiyear capacity building initiative called “Building Native CDFIs’ Sustainability and Impact” to 

develop a multifaceted training and technical assistance program to support Native CDFIs’ efforts

to become sustainable and achieve greater impact in Native Communities. In FY 2015, this 

initiative provided a wide range of specialized training, technical assistance, and peer learning 

opportunities designed to meet the unique needs of Native CDFIs at all stages of growth. 

Additionally, the CDFI Fund commissioned a report on access to capital for Native Communities

to be released in FY 2016.

Priority 4: CDFI Fund Capacity Building Initiative Innovation Challenge: In May 2015, the CDFI 

Fund launched an Innovation Challenge as part of its capacity building activities. This initiative 

was developed using funding provided in the FY 2015 appropriation to expand CDFI investments 

in underserved communities. The goal of the challenge was to support the development of 

methods, models, tools, or products that the CDFI industry could use to expand or increase 

investments in underserved areas. The CDFI Fund awarded a contract of $947,000 to the 

Association for Enterprise Opportunity (AEO) to build and test an online tool for matching CDFIs 

with small businesses in low-income areas that need investment.

Priority 5: Implement the Award Management Information System (AMIS): In FY 2015, the 

CDFI Fund began replacing its legacy awards management system with the launch of AMIS, an 

integrated, enterprise-wide cloud-based solution. The benefits of AMIS will include increased 

efficiency in processing grant, loan, bond, and tax credit applications, greater accuracy, and 

transparency of program data, and better integration of information across programs. AMIS will 

be implemented in phases over several years. In FY 2016, the CDFI/NACA, CMF, BEA and 

NMTC Programs will be converted to AMIS, including certification, funding applications, and 

disbursement of awards. Subsequent phases to be implemented in FY 2017 include conversion of

the BGP and compliance for all programs.
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Priority 6: CDFI Assessment and Risk Management Framework: The CDFI Assessment and Risk 

Management Framework is a set of tools that will allow the CDFI Fund to improve the 

certification and award-making processes, more accurately assess the performance of CDFIs, more 

efficiently manage compliance risk and better track industry-wide trends. In FY 2015, the CDFI 

Fund completed Minimum and Prudent Standards (MAPS) that will serve as the core risk metrics

for CDFIs across programs and completed a review of key performance measures and risk factors 

for the Annual Certification and Data Collection Report (see below). In FY 2016, the CDFI Fund 

will design and test application assessment tools for the CDFI/NACA program and for compliance. 

The build out and implementation of these tools will begin in FY 2017.

Priority 7: Annual Certification and Data Collection Report: In 2015, the CDFI Fund developed 

the Annual Certification and Data Collection Report that all certified CDFIs will be required to 

complete. Data collected from the report will be entered into an industrywide database that will 

help the CDFI Fund better understand the structure and performance of the industry as a whole. 

The report has been approved by the Office of Management and Budget (OMB) in accordance 

with the Paper Reduction Act. The report will be implemented in calendar year 2016.

Priority 8: Bank Enterprise Award (BEA) Program Evaluation: In 2015, the CDFI Fund began an 

evaluation of the BEA Program. The objective is to assess the program’s performance and 

determine the extent to which the program has increased bank investments in CDFIs and 

underserved areas. The evaluation will include a detailed analysis of the evolution of the program, 

the characteristics of applicants and awardees, and the types and levels of activities undertaken by 

applicants, awardees, and peer banks in the communities they serve. A written survey and indepth interviews will also be conducted by the research team led by A. Reddix and Associates, the 

Woodstock Institute, and the National Community Reinvestment Coalition. The evaluation will be 

completed in 2016.

Priority 9: NMTC Program Compliance Risk Research: In FY 2015 the CDFI Fund began work on 

a study to address issues related to monitoring NMTC Program outcomes and mitigating 

compliance risks throughout the seven-year tax credit reporting period. The NMTC Program 

allocation agreement establishes programmatic and compliance reporting requirements to ensure 

the tax credit is delivering maximum public benefit to qualified low-income community 

businesses. The study will analyze the financial structures associated with different investments 

and project types and their programmatic and compliance outcomes. The key compliance risks 

include the complexity of investment structures and the variation in project types and costs, which 

make it difficult to determine the investor rate of return, the costs of capital to qualified borrowers,

and the fees to borrowers and investors. In addition, there is a recognized need to improve 

financial monitoring of allocatees and sub-allocatees and to assess the effectiveness of the 

financing structure in bringing investment projects to completion. The research will be completed

by March 31, 2017.

Priority 10: Capital Magnet Fund (CMF): CMF was authorized by the Housing and Economic 

Recovery Act of 2008 (HERA), which requires the Government Sponsored Enterprises (GSEs), 

Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage 

Corporation (Freddie Mac) to set aside annual allocations to fund CMF. The Federal Housing 

Finance Agency (FHFA), acting as the GSEs’ conservator, temporarily suspended these allocations
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before they began, and Congress appropriated $80 million to fund an initial round of the CMF in 

FY 2010. In December 2014, the FHFA lifted its suspension of the GSEs’ allocation and directed 

the GSEs to begin allocating funds for the CMF for calendar year 2015. The CDFI Fund

anticipates opening the second round of funding in early 2016.

Priority 11: CDFI Fund Strategic Plan: The CDFI Fund is creating a new five-year strategic plan.

In order to create a viable plan informed by the needs of communities, the CDFI Fund hosted a

national listening tour during the summer of 2015. Intended to foster discussion and engagement 

among local community development leaders and practitioners, the listening tour was co-hosted by 

the CDFI Fund, the Federal Reserve Bank of San Francisco, Federal Reserve Bank of Kansas CityDenver Branch, Federal Reserve Bank of Chicago, Federal Reserve Bank of New York, and 

Federal Reserve Bank of Atlanta. Participants at each session included community development 

experts, thought leaders, and practitioners, including speakers from the Federal Reserve Banks and 

local CDFIs. Over 300 individuals participated in-person and another 70 participated in 

conference calls. Another 280 individuals responded to an electronic survey with questions that 

mirrored the topics discussed in the listening sessions. The CDFI Fund will use input from the 

sessions to shape the high-level framework, as well as a strategic plan that aligns with Treasury’s 

strategic plan. The CDFI Fund expects to complete its strategic plan by the end of FY 2016.

FY 2016 and FY 2017 Priorities

In FY 2016 and FY 2017, the CDFI Fund will continue to implement the following programs:

• CDFI Program, 

• Native American CDFI Assistance Program,

• Healthy Food Financing Initiative,

• New Markets Tax Credit Program, 

• Bank Enterprise Award Program, 

• CDFI Bond Guarantee Program, and 

• Capital Magnet Fund. 

Additionally, the CDFI Fund will continue to prioritize the use of data and evidence in its 

programs and operations. Specifically, during FY 2016, the CDFI Fund will:

• Continue efforts to develop and implement the CDFI Assessment and Risk Management 

Framework;

• Fully implement AMIS to automate business processes, strengthen internal operations and 

enhance reporting capabilities;

• Deploy the CDFI Annual Certification and Data Collection Report;

• Release the BEA Program evaluation;

• Continue work on the compliance research project for the NMTC Program begun in October 

2015, which is scheduled to be completed by March 31, 2017;

• Continue to build capacity for CDFIs to expand investments in underserved rural areas; and

• Release the “Access to Credit and Capital in Native Communities” report.
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FY 2017 Budget Request 

The CDFI Fund requests the following for FY 2017:

• $153.4 million for the CDFI Program to provide FA and TA awards, training and technical 

assistance. Through the CDFI Program, the CDFI Fund makes awards to invest in and build 

the capacity of CDFIs to serve low-income communities lacking adequate access to affordable 

financial products and services. The proposed budget supports FA and TA awards to CDFIs to 

further goals that include, among others:

- Economic development (job creation, small business lending, and commercial real estate 

development);

- Affordable housing development (housing development and homeownership); 

- Provision of financial services (such as basic banking services to underserved 

communities); and

- Provision of development services (such as financial literacy or homebuyer counseling and 

education).

• $19 million for the BEA Program, which incentivizes insured banks and thrifts to invest in 

CDFIs and increase their lending and financial services in economically distressed 

communities. 

• $15.5 million for FA and TA awards for the NACA Program, which provides awards and 

training to CDFIs that primarily serve Native Communities and to entities proposing to become 

or create Native CDFIs. These awards will increase access to credit, capital, and financial 

services in Native Communities.

• $26 million in administrative funding to support a variety of purposes, including:

- Staffing and resource demands created by significant growth across all programs, including 

the CDFI/NACA Program, NMTC Program, CDFI Bond Guarantee Program, and Capital 

Magnet Fund;

- Administration of non-monetary programs and activities, including compliance monitoring 

and CDFI certification;

- Enhancement of existing management and information systems including the integration of 

the Community Investment Impact System into AMIS and improvement of operational 

efficiency and effectiveness.

- Development of the Community Development Impact Measuring Estimator (CDIME) 

modeling tool to standardize the reporting of job and social impact performance measures. 

• $22 million for HFFI awards to CDFIs to expand financing for healthy food options in 

underserved urban and rural communities. 

• $10 million for the Small Dollar Loan Program to provide CDFIs with FA grants to establish 

loan loss reserve funds and TA grants for capacity building. This funding will encourage 

CDFIs to address the issue of predatory lending in their communities and provide an 

alternative to payday lenders.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Community Development Financial Institutions Fund FTE Amount

FY 2016 Enacted 79 $233,523

Changes to Base

Maintaining Current Levels (MCLs) 0 $412

Pay-Raise 0 $100

Pay Annualization 0 $33

Non-Pay 0 $279

Non-Recurring Costs 0 ($337)

Research and Evaluation (Data Collection) 0 ($337)

Subtotal Changes to Base 0 $75

Total FY 2017 Base 79 $233,598

Program Changes

Program Increases 0 $12,325

Administration 8 $2,325

Small Dollar Loan Program 0 $10,000

Subtotal Program Changes 0 $12,325

Total FY 2017 Request 87 $245,923

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) .........................................................+$412,000 / +0 FTE

Pay-Raise +$100,000 / +0 FTE 

Funds are requested for the proposed January 2017 pay-raise.

Pay Annualization +$33,000 / +0 FTE 

Funds are requested for annualization of the January 2016 pay-raise.

Non-Pay +$279,000 / +0 FTE 

Funds are requested for non-labor costs such as travel, contracts, rent, and equipment.

Non-Recurring Costs:.....................................................................................-$337,000 / +0 FTE

Administration - Research and Evaluation (Data Collection) -$337,000 / +0 FTE 

The CDFI Fund will non-recur a portion of research and evaluation funding. This reduction will 

not impact on-going research and evaluation initiatives.

Program Increases:...................................................................................+$12,325,000 / +8 FTE

Administration +$2,325,000 / +8 FTE

This increase will allow the CDFI Fund to allocate an estimated $74 million in awards under the 

Capital Magnet Fund (CMF) and to develop the Community Development Impact Measuring 

Estimator (CDIME) modeling tool. Awards made through the CMF program will be funded by 

annual transfers from Fannie Mae and Freddie Mac pursuant to the Housing and Economic 

Recovery Act of 2008 (HERA). 

The CDIME modeling tool will standardize the reporting of job and social impact performance 

measures. This web-based modeling tool will draw on a variety of data sources from major federal 

statistical agencies including the Census Bureau, Center for Economic Studies, Bureau of 
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Economic Analysis, Department of Labor and Housing and Urban Development to develop 

statistical estimates for industry- and community-level outcomes, such as job creation and 

retention rates, and various community impacts for a given level of investment. The CDIME will 

improve reporting data quality and lay the foundation for more robust performance measurement. 

Currently, the impact data collected by the CDFI Fund is self-reported and not validated. CDIME 

will allow for external validation of impact data, making it a more reliable tool for evaluating 

program effectiveness.

Small Dollar Loan Program + $10,000,000 / + 0 FTE

The CDFI Fund requests $10 million to support the Small Dollar Loan Program. This funding will 

be used to encourage CDFIs to address the issue of predatory lending in their communities and 

provide an alternative to payday lenders. Small dollar loans typically carry higher credit risk and 

transaction costs than other types of loans in a CDFI’s portfolio. Financial Assistance grants will 

provide funding for loan loss reserves to mitigate the increased risk of default by the borrower. 

Technical Assistance grants will assist in offsetting higher loan origination and servicing costs. 

Section 1206 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (P.L. 111–203)

defines small dollar loans as those that do not exceed $2,500. CDFIs will be required to provide 

non-federal matching funds in an amount equal to 50 percent of the amount received from the 

CDFI Fund. An estimated 10 awards will be provided through this initiative.
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Section 2 – Budget Adjustments and Appropriations Language

2.2 – Operating Levels Table

Dollars in Thousands

Community Development Financial Institutions Fund FY 2015 FY 2016 FY 2017

Object Classification Actual Enacted Request

11.1 - Full-time permanent 7,869 8,030 8,163

11.9 - Personnel Compensation (Total) 7,869 8,030 8,163

12.0 - Personnel benefits 2,046 2,238 2,273

Total Personnel Compensation and Benefits $9,915 $10,268 $10,436

21.0 - Travel and transportation of persons 177 93 93

22.0 - Transportation of things 4 4 4

23.3 - Communication, utilities, and misc charges 225 225 225

24.0 - Printing and reproduction 125 100 100

25.1 - Advisory and assistance services 6,473 6,073 7,073

25.2 - Other services 118 118 118

25.3 - Other purchases of goods & serv frm Govt accounts 4,954 6,130 7,722

25.5 – Research and development contracts 1,023 500 163

26.0 - Supplies and materials 56 59 59

31.0 - Equipment 30 30 30

41.0 – Grants, subsidies, and contributions 207,400 209,923 219,900

Total Non-Personnel 220,585 223,255 235,487

Subtotal New Appropriated Resources $230,500 $233,523 $245,923

Budget Activities:

Community Development Financial Institutions Program 156,457 165,023 165,123

Bank Enterprise Award Program 18,132 19,000 19,000

Native American CDFI Assistance Program 18,695 15,500 15,500

Administration 29,986 23,759 26,269

Healthy Food Financing Initiative 23,050 22,000 22,000

Small Dollar Loan Program 0 0 10,000

Total Budgetary Resources* $246,320 $245,282 $257,892

FTE 79 79 87

*This table includes all available resources, including annual appropriations, available multi-year appropriations, reimbursable 

resources and offsetting collections and user fees
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2B – 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, $[233,523,000]245,923,000. Of the 

amount appropriated under this heading—

(1) not less than $153,423,000, notwithstanding section 108(e) of 

Public Law 103–325 (12 U.S.C. 4707(e)) with regard to Small and/or 

Emerging Community Development Financial Institutions Assistance 

awards, is available until September 30, [2017]2018, for financial 

assistance and technical assistance under subparagraphs (A) and (B) of 

section 108(a)(1), respectively, of Public Law 103–325 (12 U.S.C. 

4707(a)(1)(A) and (B)), of which up to $[3,102,500]2,882,500 may be 

used for the cost of direct loans: Provided, That the cost of direct and

guaranteed loans, including the cost of modifying such loans, shall be 

as defined in section 502 of the Congressional Budget Act of 1974: 

Provided further, That these funds are available to subsidize gross 

obligations for the principal amount of direct loans not to exceed 

$25,000,000; 

(2) not less than $15,500,000, notwithstanding section 108(e) of Public 

Law 103–325 (12 U.S.C. 4707(e)), is available until September 30, 

[2017]2018, for financial assistance, technical assistance, training and 

outreach programs designed to benefit Native American, Native 

Hawaiian, and Alaskan Native communities and provided primarily 

through qualified community development lender organizations with 

experience and expertise in community development banking and 

lending in Indian country, Native American organizations, tribes and 

tribal organizations, and other suitable providers; 

(3) not less than $19,000,000 is available until September 30, 

[2017]2018, for the Bank Enterprise Award program; 

(4) not less than $22,000,000, notwithstanding subsections (d) and (e) 

of section 108 of Public Law 103–325 (12 U.S.C. 4707(d) and (e)), is 

available until September 30, [2017]2018, for a Healthy Food 

Financing Initiative to provide financial assistance, technical assistance, 

training, and outreach to community development financial institutions 

for the purpose of offering affordable financing and technical assistance 

Revises the direct loan 

cost allowance based on 

updated subsidy rate.
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to expand the availability of healthy food options in distressed 

communities; 

(5) up to $[23,600,000]26,000,000 is available until September 30, 

[2016]2018, for administrative expenses, including administration of 

CDFI fund programs and the New Markets Tax Credit Program, of 

which [not less than $1,000,000 is for capacity building to expand 

CDFI investments in underserved rural areas, and] up to $300,000 is for 

administrative expenses to carry out the direct loan program; [and]

(6) not less than $10,000,000 is available until September 30, 2018, to 

provide grants for loan loss reserve funds and to provide technical 

assistance for small dollar loan programs under section 1206 of the 

Dodd-Frank Wall Street Reform and Consumer Protection Act (Public 

Law 111–203);

([6]7) during fiscal year [2016]2017, 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, 

That commitments to guarantee bonds and notes under such section 

114A shall not exceed $[750,000,000]1,000,000,000: Provided further, 

That such section 114A shall remain in effect until September 30, 

[2016]2017. (Department of the Treasury Appropriations Act, 2016.)

Extends the availability 

of Administration 

funding by one year to 

match program funding 

availability and removes

capacity building text 

which is not part of the 

FY 2017 request. 

Provides funding for the 

Small Dollar Loan 

Program.

Extends the Bond 

Guarantee Program

through FY 2017.
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2C – Legislative Proposals

Treasury recommends extension of the CDFI Bond Guarantee Program through FY 2017. 

Justification

The CDFI Bond Guarantee Program provides CDFIs access to a significant source of capital. By 

providing guarantees of bonds issued by Qualified Issuers, the CDFI Bond Guarantee Program 

injects new and substantial capital into our nation’s most distressed communities. CDFIs can gain 

from the potential scale of the CDFI Bond Guarantee Program, which offers low-cost, long-term 

credit for the development of commercial real estate, rental housing, senior living, daycare or 

healthcare centers, small businesses, and rural infrastructure, among others. This will further close 

the gap of financing in these communities, generate new credit information in these market 

segments, and yield the benefit of lower financing costs for borrowers in these underserved 

communities. These benefits will be realized at no cost to taxpayers because the program requires 

no subsidy.

Treasury proposes the following legislative changes: (i) to extend the CDFI Bond Guarantee 

Program through FY 2017; (ii) to reduce the minimum bond issue size from $100 million to $25 

million; (iii) to permit the Secretary to adjust the risk-share pool payment requirement, based on 

the borrower’s credit quality, from zero to four percent; (iv) to collect a mandatory one percent fee 

from all borrowers; and (v) to revise the relending account language to correct a technical drafting 

error. 

Suggested Legislative Language (same language proposed in the FY 2016 President’s 

Budget)

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"; (b) by amending subsection (d) to read as follows— "(d) RISK-SHARE POOL.— Each 

qualified issuer shall, during the term of a guarantee provided under the Program, establish a riskshare pool, capitalized by contributions from eligible community development financial institution 

participants in amounts that shall not exceed 4 percent of the guaranteed amount outstanding on 

the subject notes and bonds, which contribution amounts shall be determined by the Secretary for 

each eligible community development financial institution participant based on the Secretary's 

assessment of the participant's credit quality."; (c) in subsection (e)(2)(B), by striking 

"$100,000,000" and inserting "$25,000,000"; (d) in subsection (g) by amending the subsection to 

read as follows: "(g) FEES.— "(1) IN GENERAL.— "(A) QUALIFIED ISSUER.—A qualified 

issuer that receives a guarantee issued under this section on a bond or note shall pay a fee to the 

Secretary, in an amount equal to 10 basis points of the amount of the unpaid principal of the bond 

or note guaranteed. "(B) ELIGIBLE CDFI PARTICIPANT.—An eligible community development 

financial institution participant that receives a bond loan under this section shall pay a fee to the 

Secretary, in an amount equal to 1 percent of the unpaid principal of the bond or note guaranteed. 

"(2) PAYMENT. — "(A) QUALIFIED ISSUER.—A qualified issuer shall pay the fee required 

under paragraph (1)(A) on an annual basis. "(B) ELIGIBLE CDFI PARTICIPANT.—An eligible 

community development financial institution participant shall pay the fee required under paragraph 

(1)(B) at the time of loan disbursements to the participant."(3) USE OF FEES.—Fees collected by 
CDFI - 15

the Secretary— "(A) under paragraph (1)(A) shall be used to reimburse the Department of the 

Treasury for any administrative costs incurred by the Department in implementing the Program 

established under this section and shall be available until expended; and "(B) under paragraph 

(1)(B) shall be deposited by the Secretary into an account that shall be available to the Secretary to 

cover credit subsidy costs and to pay principal and interest on the guaranteed bonds or notes in the 

event of a delinquency in repayment of loans to eligible community development financial 

institution participants."; and (e) in subsection (k), by striking "2014" and inserting "2017". 
CDFI - 16

Section 3 – Budget and Performance Plan

3A – Administration

($26,000,000 from direct appropriations):

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

for each of its award programs and supports the CDFI Fund’s Strategic Goal No. 4: To increase 

resource and human capital management to maximize performance, efficiency, and program 

results. This includes, among other activities, developing regulations, notices of funding 

availability, and application materials; reviewing and evaluating certification and funding 

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

collecting and evaluating performance data; and monitoring awardees’ compliance. All of these 

tasks support activities that allow the CDFI Fund to carry out its overall mission. 

Description of Performance:

The CDFI Fund’s administrative performance metrics measure progress in enhancing its program 

administrative business processes to enable quicker award decisions and disbursement of award

funds. 

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

on the weighted average of the number of applications/awards across all programs. 

• The All-application-award Cycle Time performance target was set at 7 months for FY 2015

and FY 2016. In FY 2015, the application-award target was missed by more than one month 

because of a change in matching funds requirements under the December 2014 appropriation 

language which required supplemental notification of applicants and additional reviews of the 

applicant’s matching funds documentation. The seven-month target has been retained for both 

FY 2016 and 2017 because the CDFI Fund has revised its internal policies and procedures to 

improve the cycle time performance through implementation of new application review and 

matching funds procedures. In addition, once the CDFI Fund’s new Awards Management 

Information System (AMIS) is fully deployed, the application cycle time should benefit from 

the automation of application intake and review.

• The All-Award-Disbursement Cycle Time measures in months how quickly the CDFI Fund 

manages to disburse 85 percent of program funds after the award announcement. The FY 2015 

target was set at 4 months. The FY 2015 results will be available in February 2016, four 

months after the last award announcement, when the relevant data is available. Internal 

projections indicate the CDFI Fund will not meet its FY 2015 target due to changes in award 

disbursement processes required by the Office of Management and Budget’s Uniform 

Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

(Uniform Guidance). The Uniform Guidance requires that grant funds be disbursed in tranches 

as opposed to single disbursements. Accordingly, the CDFI Fund plans to revise this measure 

to reflect time to initial disbursement and establish new baseline targets in FY 2016.

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. The actual results of 27,004 affordable housing units for FY 2015 fell short of the 

ambitious target of 36,000 units. The target was missed due to changes in housing investments 

across programs. There were declines in housing lending by CDFI awardees largely due to a 
CDFI - 17

decline in the number of awardees focusing on housing (3,000 fewer units than the prior year), a 

slight decline in NMTC housing investments (540 fewer than the prior year) and a deferral of the 

completion of 1,300 CMF funded housing units to 2016. These trends illustrate the difficulty in 

projecting targets for activities not directly required under awardees’ assistance agreements. A 

provisional target is retained for 2016 which does not factor in results from future rounds of 

funding for CMF. Please note that for CMF awards made in FY 2016, the outcomes will not be 

reported until FY 2018.

3.1.1 – Administration Budget and Performance Plan

Dollars in Thousands

Administration Budget Activity

Resource Level FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016 

Enacted

FY 2017 

Request

Appropriated Resources $13,797 $18,602 $22,965 $21,764 $24,636 $23,100 $23,600 $26,000

Budget Activity Total $13,797 $18,602 $22,965 $21,764 $24,636 $23,100 $23,600 $26,000

Measure FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2015 

Target

FY 2016 

Target

FY 2017 

Target

ALL - Award Cycle Time 

(months) N/A 7.4 6.5 6.8 7.1 8.3 7.0 7.0 7.0

ALL - Disbursement Cycle 

Time (months) N/A 2.0 3.1 4.5 4.5 4.5* 4.0 4.5 4.5

ALL - Number of Affordable 

Housing Units Developed or 

Produced (units)

N/A 19,083 27,433 26,391 32,621 27,004 36,000 29,000 29,000

Key: DISC - Discontinued

 *Projected results. The earliest this measure can be reported is February 2016 (four months after the last award announcement).

3B - Community Development Financial Institutions Program

($153,423,000 from direct appropriations): 

The CDFI Program supports the CDFI Fund’s Strategic Goal No. 1: To expand the capacity of 

financial institutions to provide credit, capital, and financial services to low-income and 

underserved populations. Through the CDFI Program, the CDFI Fund makes 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 TA grants to 

CDFIs and entities proposing to become CDFIs. 

Description of Performance:

The CDFI Fund revised its performance measures for the CDFI financial assistance program to 

better measure the impact of CDFI awardees in distressed communities and on underserved 

populations. The CDFI Fund worked with Treasury’s Office of Performance Budgeting (OPB) 

and Office of Strategic Planning and Performance Improvement (OSPPI) to develop two new 

measures: (1) percentage of loans and investments originated in eligible distressed communities or 

made to underserved populations as measured against the total 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 by the total number of loans originated by 

awardees.
CDFI - 18

These two measures demonstrate the impact of CDFI awardees in serving eligible distressed 

communities and underserved populations by lending reported during the program year. 

Certification procedures require that all certified CDFIs must originate 60 percent or more of their 

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

is a threshold that must be met or exceeded recognizing the need for CDFIs to balance their 

mission to service distressed communities and underserved populations against their safety and 

soundness considerations. In FY 2015 the CDFI Program surpassed the 60 percent threshold for 

both the percentage in the amount and number of CDFI loans made to eligible distressed 

communities and underserved populations. There are annual fluctuations in the percentage loans 

deployed to distressed communities and underserved populations due to annual changes in the 

cohort of CDFI awardees and changes in their loan originations necessary to maintain their safety 

and soundness considerations while meeting their commitments and mission as a certified CDFI.

3.1.2 – CDFI Program Budget and Performance Plan

Dollars in Thousands

CDFI Program Budget Activity

Resource Level FY 2010 

Actuals

FY 2011 

Actuals

FY 2012 

Actuals

FY 2013 

Actuals

FY 2014 

Actuals

FY 2015 

Actuals

FY 2016 

Enacted

FY 2017 

Request

Appropriated Resources $107,600 $162,830 $146,035 $138,397 $146,364 $152,400 $153,423 $153,423

Budget Activity Total $107,600 $162,830 $146,035 $138,397 $146,364 $152,400 $153,423 $153,423

Measure FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2015 

Target

FY 2016 

Target

FY 2017 

Target

CDFI - Percentage of 

Loans & Investments 

Originated to Eligible 

Distressed communities 

or Underserved 

Populations by Dollar 

Amount (percentage)

74.80% 66.30% 84.90% 77.10% 70.80% 80.10% 60.00% 60.00% 60.00%

CDFI - Percentage of 

Loans & Investments 

Originated to Eligible 

Distressed communities 

or Underserved 

Populations by Number 

of Loans (percentage)

65.10% 60.60% 70.30% 79.60% 60.70% 80.20% 60.00% 60.00% 60.00%

Key: DISC - Discontinued

3C – New Markets Tax Credit Program

($0 from direct program appropriations):

Through the NMTC Program, the CDFI Fund facilitates new investment in low-income 

communities by attracting private sector capital to these communities through tax credits. These 

objectives align with the CDFI Fund’s Strategic Goal No. 2 – Increased public and private 

investment in distressed communities eligible to be served by the CDFI Fund’s programs. 

Individual and corporate investors may receive a credit against their federal income taxes in 

exchange for making equity investments in Community Development Entities (CDEs) that, in turn, 

use such proceeds to finance businesses and real estate projects in low-income communities. The 

investor’s tax credit equals 39 percent of the amount invested and is taken over seven years. On 

December 18, 2015, Congress extended the authorization of the NMTC program for $3.5 billion 

per year through 2019.
CDFI - 19

Description of Performance:

The 2014 NMTC investment authority was allocated in FY 2015 due to delayed passage of the 

authorizing legislation. In the 2014 round, the NMTC Program awarded $3.5 billion in NMTC 

investment authority to 76 CDEs, out of a pool of applicants requesting $19.9 billion. 

The target for qualified low-income community investments (QLICIs) in FY 2015 was set at $5

billion to reflect the actual annual tax credit authority requested. The target was not met because 

the prior year’s tax credit authority was limited to $3.5 billion, although actual investments 

reported were $3.02 billion. The 2011-2013 trends reflect the effect of higher tax credit authority 

at $5 billion and the subsequent decrease in 2014 for QLICIs reflects the lower levels of tax credit 

authority rather than program’s effectiveness. The CDFI Fund will consider replacement measures 

in FY 2016.

A complementary measure of the NMTC program performance is the percentage of loans and

investments in severely distressed communities. 75.2 percent of loans and investments were made 

in severely distressed communities in FY 2015, exceeding the target of 72 percent. This 

performance indicates that NMTC investors continue to meet their commitments in severely 

distressed communities. The targets for FY 2016 and FY 2017 are set at 72 percent.

3.1.3 – New Markets Tax Credit Program

Dollars in Thousands

New Markets Tax Credit Budget Activity

Resource Level FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016 

Enacted

FY 2017 

Request

Appropriated Resources $4,203 $0 $0 $0 $0 $0 $0 $0

Budget Activity Total $4,203 $0 $0 $0 $0 $0 $0 $0

Measure FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2015 

Target

FY 2016 

Target

FY 2017 

Target

Community Development Entities' 

Annual Qualified Low-Income 

Community Investments ($ billions)

3.1 4.7 5.5 4.8 4.0 3.0 5.0 3.5 3.5

NMTC-Percentage of Loans and 

Investments that went into Severely 

Distressed Communities (percentage)

73.4% 72.4% 70.4% 78.5% 73.8% 75.2% 72.0% 72.0% 72.0%

Key: DISC - Discontinued

3D – Bank Enterprise Award Program

($19,000,000 from direct appropriations):

Through the BEA Program, the CDFI Fund encourages insured depository institutions to increase 

investments and services in distressed communities and to provide financial assistance and support 

to CDFIs. These objectives align with the CDFI Fund’s Strategic Goal No. 2 – Increased public 

and private investment in distressed communities eligible to be served by the CDFI Fund’s 

programs. 

Description of Performance: This measures the Bank Enterprise Award (BEA) applicants' increase 

in qualified community development activities over the prior year. The BEA target of $723.5 
CDFI - 20

million was not met in FY 2015 but the results are consistent with trends over time. In FY 2014, 

the measure hit an all-time high of $723.5 million but fell to $459.9 million in FY 2015. The

decline most likely reflects a delayed response by applicants to reductions in program funding and 

uncertainty about the future of the program. The targets for FY 2016 and FY 2017 have been set at 

the FY 2015 performance level pending an ongoing program evaluation.

The CDFI Fund initiated an evaluation of the BEA Program in FY 2015. The evaluation will 

examine the program’s performance and potentially lead to the adoption of alternative program 

performance measures. The current measure can fluctuate widely from year to year, as shown in 

table 3.1.4, due to external factors such as the level of funding set by Congress. The evaluation is 

scheduled to be complete in FY 2016.

3.1.4 – Bank Enterprise Award Program

Dollars in Thousands

Bank Enterprise Award Program Budget Activity

Resource Level FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016 

Enacted

FY 2017 

Request

Appropriated Resources $25,000 $21,956 $18,000 $17,058 $18,000 $18,000 $19,000 $19,000

Budget Activity Total $25,000 $21,956 $18,000 $17,058 $18,000 $18,000 $19,000 $19,000

Measure FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2015 

Target

FY 2016 

Target

FY 2017 

Target

BEA - Increase in Community 

Development Activities Over Prior 

Year For All BEA Program 

Applicants ($ million) 

290.0 268.3 432.4 493.5 723.5 459.9 723.5 460.0 460.0

Key: DISC - Discontinued

3E – Native American CDFI Assistance Program

($15,500,000 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 CDFI Fund 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 others have not, and are serving the poorest in Native communities. In 

order for Native CDFIs to make a larger economic impact within their communities, they require 

further technical assistance and capacity building. With increased capacity building, Native CDFIs 

could, for example, expand their lending from an initial offering of micro-loans to making larger 

small business loans to better promote economic activity. These objectives align with the 

Department of the Treasury’s Strategic Goal 1: Promote domestic economic growth and stability 

while continuing reforms of the financial system. 

Description of Performance: These output measures reflect the number and amount of loans or 

investments originated by Native American CDFI awardees in a given year. In FY 2015, the target 

was missed for originations but exceeded for number of loans. These measures are difficult to 

forecast due to variability in NACA awardee originations. The CDFI Fund is exploring potential 

changes to these measures to mirror those of the CDFI Program (see above table 3.1.2), which 
CDFI - 21

track the impact of a program on target populations as opposed to aggregate output. The targets 

for FY 2016 and FY 2017 have been set at the FY 2015 performance level pending a review of 

potential changes.

3.1.5 – Native American CDFI Assistance Program

Dollars in Thousands

Native American CDFI Assistance Program Budget Activity

Resource Level FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016 

Enacted

FY 2017 

Request

Appropriated Resources $12,000 $11,352 $12,000 $11,372 $15,000 $15,000 $15,500 $15,500

Budget Activity Total $12,000 $11,352 $12,000 $11,372 $15,000 $15,000 $15,500 $15,500

Measure FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015

Actual

FY 2015 

Target

FY 2016 

Target

FY 2017 

Target

NACA - Amount of 

Loans/Investments Originated 

(Annual) (Dollars in Millions)

N/A 14.7 21.2 23.2 100.5 68.0 164.0 68.0 68.0

NACA - Number of 

Loans/Investments Originated 

(Annual)

N/A 1,004 1,170 1,508 2,230 2,424 1,860 2,424 2,424

Key: DISC - Discontinued

3F – Healthy Food Financing Initiative

($22,000,000 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, including 

increasing the distribution of agricultural products, developing and equipping grocery stores, and 

strengthening producer-to-consumer relationships.

This budget activity supports the CDFI Fund’s Strategic Goal No. 1: To expand capacity of 

financial institutions to provide credit, capital, and financial services to low-income and 

underserved populations. 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 options 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 2015, the number of HFFI Retail outlets 

created was 35, which is well short of the target of 47 outlets. There is considerable variation in 

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

Additional research is being conducted to develop more robust target estimates, although this may 

require additional data collection from awardees. The targets for FY 2016 and FY 2017 have been 

set at 35 outlets created or preserved. 
CDFI - 22

3.1.6 – Healthy Food Financing Initiative

Dollars in Thousands

Healthy Food Financing Initiative Budget Activity

Resource 

Level FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016 

Enacted

FY 2017 

Request

Appropriated 

Resources $0 $0 $22,000 $20,849 $35,000 $22,000 $22,000 $22,000

Budget 

Activity Total $0 $0 $22,000 $20,849 $35,000 $22,000 $22,000 $22,000

Measure FY 2010 

Actual

FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2015 

Target

FY 2016 

Target

FY 2017 

Target

HFFI - Retail Outlets 

Created/Preserved N/A N/A B 31.0 33.0 35.0 47.0 35.0 35.0

Key: DISC - Discontinued

3G - Capital Magnet Fund Program

($0 from direct appropriations):

The Capital Magnet Fund (CMF), administered by the CDFI Fund, was authorized by the 

Housing and Economic Recovery Act of 2008 (HERA), which called for recurrent funding of the 

CMF through assessments on securities of the Government-Sponsored Enterprises (GSEs) Fannie 

Mae and Freddie Mac. GSE funding for CMF was temporarily suspended in November of 2008 

by the Federal Housing Finance Agency (FHFA) under its HERA authority. In FY 2010, 

Congress appropriated $80 million for an initial CMF funding round; however, no appropriations 

were made in subsequent years. In December 2014, the FHFA instructed the GSEs to begin 

setting aside and allocating funds to the CMF pursuant to HERA. This budget activity aligns with 

the Department of the Treasury’s Strategic Goal 1: Promote domestic economic growth and 

stability while continuing reforms of the financial system. 

From the 2010 funding round, the CDFI Fund announced $80 million in competitively awarded

grants to 23 CDFIs and qualified non-profit housing organizations serving 38 states. The CMF

awards have been used to increase capital investment for the development, preservation, 

rehabilitation, and purchase of affordable housing for low-, very low-, and extremely low-income

families, and for related economic development activities, including community services facilities. 

No CMF funding has been appropriated since FY 2010.

Awardees received their Assistance Agreements in July 2011 and disbursements of grant funding

later that year. As required by the Assistance Agreement, funds were committed to projects 

within two years of the agreement (July 2013) and disbursed within three years of the agreement 

(July 2014). All projects must be completed within five years of agreement (July 2016). 

Awardees committed to leveraging the CMF award by at least 10 times with other sources of

capital, as well as committed to projects that meet percentages of targeted incomes and 

geographies.
CDFI - 23

The CDFI Fund reopened the CMF program in January 2016 following FHFA’s decision to lift

its suspension of the GSEs’ allocations under the Housing and Economic Recovery Act of 2008. 

The CDFI Fund estimates $74 million will be awarded in the FY 2016 round. 

Description of Performance:

The primary performance measures of the CMF were 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 3.1.1 above.

Awardee reports available through September 30, 2015 indicate the following results for CMFfinanced affordable housing and community development activities, based on investments through 

the end of the awardees’ prior year activities:

Total number of affordable homes under development or completed with CMF financing include: 

9,887 (net addition of 1,129);

• Affordable rental homes financed: 8,813 (net addition of 900);

• Affordable homeowner-occupied homes financed: 1,074 (net addition of 229); includes 

assistance to 328 income-eligible first-time homebuyers;

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

target set by Congress was 10 times leveraging.)

3H - CDFI Bond Guarantee Program

The Small Business Jobs Act of 2010 (Public Law 111-240) created the CDFI Bond Guarantee 

Program. Bonds issued under the program support CDFI lending activity in underserved 

communities by providing a source of long-term capital. Qualified Issuers (CDFIs or their 

designees) issue bonds that are guaranteed by the Secretary of the Treasury and use the bond 

proceeds to make loans to Eligible CDFIs for eligible community and economic development 

purposes. Bond maturity cannot exceed 30 years. Under the FY 2013, FY 2014, and FY 2015 

guarantee authorities, Treasury provided seven bond guarantees in the total amount of $852 

million to Qualified Issuers that provided bond loans to sixteen Eligible CDFIs. The CDFI Bond 

Guarantee Program provided longer term capital to the Eligible CDFIs in comparison to their 

traditional sources of debt capital. The weighted average bond loan term-to-maturity under the 

program is 18.78 years versus the average loan maturity of ten years or less for the loans provided 

by the majority of the lenders to the CDFI industry. The CDFI Bond Guarantee Program provides 

the Eligible CDFIs five years from the bond issuance date to disburse the bond loans. Since the 

inception of the program, the Eligible CDFIs disbursed $165 million or 19% of the bond loans to 

three of the twelve asset classes: commercial real estate, charter schools, and rental housing. The 

proposed disbursement plan for the Eligible CDFIs includes the remaining nine asset classes: 

small business, healthcare facilities, rural infrastructure, senior living and long-term care, daycare 

centers, owner-occupied homes, not-for-profit organizations, loans to CDFIs, and loans to 

financing entities.

The following objectives have been identified for the program for FY 2017:

• Approval of up to $1 billion in guarantees; and

• A review of the annual compliance assessment of the Master Servicer/Trustee, Qualified 

Issuers, and Eligible CDFIs.
CDFI - 24

3.1.7 – Bond Guarantee Program Resource Detail Table

Dollars in Thousands

Bond Guarantee Program

Resource Level FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016 

Estimated

FY 2017 

Request

Obligations $325,000 $200,000 $327,000 $750,000 $1,000,000

 Loan Limitation Obligation Authority - $750,000 $750,000 $750,000 $1,000,000

3.1.8 – Financing Accounts – Non-Budgetary Summary

Dollars in Thousands

Bond Guarantee Program

Resource Level FY 2011 

Actual

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016 

Estimated

FY 2017 

Request

Obligations $325,000 $200,000 $327,000 $750,000 $1,000,000

Collections - $356 $2,966 $13,400 N/A

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 disbursements of $38 million, 

$119 million, and $235 million in FY 2014, FY 2015, and FY 2016, respectively.
CDFI - 25

Section 4 – Supplemental Information

4A – Summary of Capital Investments

As part of its FY 2017 capital investment strategy, the CDFI Fund plans to spend approximately 

$6.58 million on Information Technology (IT). The CDFI Fund has no major IT investments, nor 

any capital investments other than IT.

Non-Major IT Investments

For FY 2017, the CDFI Fund has identified two non-major IT investments; AMIS, described 

below, and the Community Investment Impact System (CIIS), which will be retired in FY 2017 as 

its IT system capabilities will be implemented within AMIS.

The CDFI Fund’s capital investment strategy is to become a consumer of commodity IT services 

(e.g., IT infrastructure services) and to focus its limited resources on IT solutions that directly 

support the mission of the CDFI Fund. One important mission-focused IT modernization activity 

is the implementation of AMIS — an enterprise, commercial, cloud-based solution that will 

replace the CDFI Fund’s legacy business systems. The first AMIS deployment went live in 

September 2015 with full deployment planned for September 2016. AMIS capabilities will 

continue to be expanded by adding the CDFI Program Risk Assessment Framework, and reporting 

capabilities currently provided by CIIS.

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. With TTB, 

the CDFI Fund avoids software upgrade costs by using TTB’s enterprise software licenses, 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 viewed and downloaded at:

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

This website also contains a digital copy of the plan.