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Community Development 

Financial Institutions Fund

2014 President’s Budget
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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 Appropriation Language............................................... 9

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

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

2.2 – Operating Levels Table.................................................................................................... 12

2B – Appropriations Language and Explanation of Changes................................................... 13

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

Section 3 – Budget and Performance Plan ............................................................................... 15

3A – Administration ................................................................................................................. 15

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

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

3.1.2 – Community Development Financial Institutions Program Budget and Performance 

Plan ........................................................................................................................................... 18

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

3.1.3 – New Markets Tax Credit Program................................................................................ 20

3D – Bank Enterprise Award Program..................................................................................... 20

3.1.4 – Bank Enterprise Award Program.................................................................................. 21

3E – Native American CDFI Assistance Program.................................................................... 21

3.1.5 – Native American CDFI Assistance Program................................................................ 22

3F – Healthy Food Financing Initiative .................................................................................... 22

3.1.6 – Healthy Food Financing Initiative ................................................................................ 23

Section 4 – Supplemental Information...................................................................................... 24

4A – Summary of Capital Investments..................................................................................... 24

4B – Bond Guarantee Program................................................................................................. 25

4.1 – Resource Detail Table...................................................................................................... 25

4.2 – Financing Accounts - Non-Budgetary Summary............................................................. 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

 FY 2012 FY 2013 FY 2014 FY 2012 to FY 2014

Community Development Financial 

Institutions Fund Enacted Annualized Request $ Change % Change

Resources 

 CR Rate 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Community Development Financial 

Institutions Program 0 146,035 0 146,929 0 144,300 0 (1,735) NA -1.19%

Bank Enterprise Award Program 0 18,000 0 18,110 0 10,000 0 (8,000) NA -44.44%

Native American CDFI Assistance 

Program 0 12,000 0 12,073 0 12,000 0 0 NA 0.00%

Administration 79 22,965 79 23,106 76 23,636 (3) 671 -3.80% 2.92%

Healthy Food Financing Initiative 0 22,000 0 22,135 0 35,000 0 13,000 NA 59.09%

Subtotal New Appropriated Resources 79 $221,000 79 $222,353 76 $224,936 (3) $3,936 -3.80% 1.78%

Other Resources:

Reimbursables 0 0 0 106 0 109 0 109 NA NA

User Fees 0 0 0 0 0 491 0 491 NA NA

Recovery from Prior Years 0 2,591 0 6,600 0 4,700 0 2,109 NA 81.40%

Unobligated Balances from Prior Years 0 35,504 0 31,650 0 27,835 0 (7,669) NA -21.60%

Subtotal Other Resources 0 $38,095 0 $38,356 0 $33,135 0 ($4,960) NA -13.02%

Total Budgetary Resources 79 $259,095 79 $260,709 76 $258,071 (3) ($1,024) -3.80% -0.40%

1B – Vision, Priorities and Context

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

communities, and advance the Department of the Treasury’s Strategic Goal No. 2: Enhance U.S. 

Competitiveness and Promote International Financial Stability and Balanced Global Growth. 

The CDFI Fund is the only Federal government entity whose primary mission is to build the 

capacity of CDFIs so that they can provide loans, investments, business counseling, basic 

banking services, and financial literacy training to underserved communities.

Since its creation in 1994, the CDFI Fund has awarded more than $1.7 billion to Community 

Development Financial Institutions (CDFIs), community development organizations, and insured 

depository institutions through the CDFI Program, the Native American CDFI Assistance 

(NACA) Program, and the Bank Enterprise Award (BEA) Program. In addition, the CDFI Fund 

has allocated $33 billion in New Markets Tax Credit (NMTC) investment authority through the 

NMTC Program to Community Development Entities (CDEs), $80 million to awardees through 

the Capital Magnet Fund (CMF), and $6.1 million through the Financial Education and 

Counseling (FEC) Pilot Program, including the Hawaii FEC Pilot Program.
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The CDFI Fund has experienced growth in its awards and compliance responsibilities: 

 Number of awards made: The number of awards that the CDFI Fund made in FY 2012 

(369 awards) represents an increase of 18 percent over the number of awards made 

in FY 2011 (314 awards). The FY 2012 number of awards made for the NMTC Program

is not included in the totals listed here as the program has not yet completed the 2012 

round.

 Number of awardees under compliance monitoring: The CDFI Fund expects 1,426 

awardees to be under compliance monitoring in FY 2013. The compliance management 

program at the CDFI Fund will review and assess awardee compliance from more than 

5,000 reports to be submitted in each of FYs 2013 and 2014 as a result of this volume 

of active awards.

 Number of applications received: The number of applications received across all CDFI 

Fund programs in FY 2012 (808 applications total) represents an increase of 2 percent

over the number of applications received in FY 2011 (789 applications). For the FY 

2012 Financial and Technical Assistance components of the CDFI Program funding 

round, the CDFI Fund received 389 applications requesting almost $378.7 million in 

total funding. For the FY 2012 NACA Program funding round, the CDFI Fund received 

66 applications requesting a total of $20.9 million in funding. For the CY 2012 

NMTC allocation round, the CDFI Fund received 282 applications requesting 

approximately $21.9 billion in total allocation authority. For the FY 2012 BEA 

Program funding round, the CDFI Fund received 71 applications requesting 

approximately $88.5 million in awards.

Fiscal Year 2012 Priorities and Accomplishments: 

In Fiscal Year 2012, the CDFI Fund focused on a number of initiatives related to its business 

processes, award programs, and CDFI capacity-building activities, as the following section 

outlines. The CDFI Fund’s four priority projects align with Treasury’s Strategic Goal 2 –

Enhance U.S. competitiveness and promote international financial stability and balanced global 

growth.

Priority Projects:

Priority 1: Strengthen Compliance Management Function – The CDFI Fund continued its efforts 

to strengthen the oversight of award recipients by hiring five additional staff for the compliance 

management business unit; developing a performance metrics baseline for percent of awardees in 

default; developing a risk-based approach to compliance management by developing processes 

that focus on monitoring for performance, impact, and risk; completing by the end of 1Q2013

detailed reviews of activities and transactions underlying data reported by 20 awardees, either 

through compliance visits to the awardee’s offices or through review of detailed information 

submitted in response to a ―desk audit‖; implementing a new portfolio management model for a 

quicker response on compliance issues; and launching a recertification effort to recertify as many 

as 750 CDFIs whose original certifications had previously been extended beyond an initial threeyear term. This project aligns with the CDFI Fund’s Strategic Goal 4 – Increased resource and 

human capital management to maximize performance, efficiency, and program results.
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Priority 2: Launch CDFI Program Evaluation Project – In FY 2012, the CDFI Fund kicked off an 

evaluation to determine how and to what extent the CDFI program’s investments in CDFIs have 

benefited and contributed to the development of underserved communities. The evaluation, 

expected to be completed in two years, will assess industry-wide performance benchmarks for 

awardees and compare these outcomes with appropriate peer groups of non-awardee CDFIs 

(both certified CDFIs and non-certified CDFIs) to better gauge the relative impact of the 

program on financial performance, risk, and social impacts. This research seeks to develop 

appropriate evaluation techniques using multiple evaluation methods including surveys, original 

data gathering, and statistical techniques to assess the results of the program on CDFIs and the 

communities that they serve, particularly the provision of improved access to capital and credit 

in low-income and underserved communities. This project aligns with the CDFI Fund’s 

Strategic Goal 1 – Expanded capacity of financial institutions to provide credit, capital, and 

financial services to low-income and underserved populations. 

Priority 3: Implement CDFI Bond Guarantee Program – The CDFI Bond Guarantee Program 

supports CDFI lending and investment activity in underserved communities by providing a 

source of long-term financing. The Interim Final Rule was published in the Federal Register on 

February 5, 2013. This project aligns with the CDFI Fund’s Strategic Goal 2 – Improved 

economic conditions in distressed communities through increased public and private investment.

Priority 4: Modernize Information Technology – To reduce costs and improve service and 

reliability, the CDFI Fund transitioned its Information Technology (IT) systems and services to 

the Alcohol and Tobacco Tax and Trade Bureau (TTB) including email and shared drives, 

Internet and network access, and all servers. This transition has enabled the CDFI Fund to 

eliminate its two data centers and focus IT resources on procuring an Awards Management 

Information System (AMIS) that meets present and future business requirements. The AMIS 

investment will improve the efficiency of awards management processes throughout the 

organization. This project aligns with the CDFI Fund’s Strategic Goal 4 – Increased resource 

and human capital management to maximize performance, efficiency, and program results.

Other Accomplishments

 In conjunction with the U.S. Department of Agriculture’s (USDA) Rural Business and 

Cooperative Programs, the CDFI Fund released important new guidance for lenders 

interested in financing rural businesses through the NMTC Program and the USDA's 

Business and Industry Loan Guarantee Program. The guidance demonstrates the CDFI 

Fund’s commitment to exploring ways to collaborate with other Federal agencies to 

direct more resources to the underserved.

 The CDFI Fund released new program eligibility criteria in May 2012 for the NMTC 

Program that was based on recently released data from the 2006-2010 American 

Community Survey. The release of these new criteria, which replaced criteria based on 

data drawn from the 2000 Census, enables community and economic developers to target 

their investments in low-income communities using the most recent data available on 

income and poverty in the United States. In addition, the CDFI Fund released new 
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eligibility criteria for the CDFI Program and the NACA Program in February 2013, and 

plans to release the BEA Program eligibility criteria by the end of FY 2013.

The CDFI Fund has capitalized on the success of the Capacity Building Initiative, which 

provides training and technical assistance to help CDFIs expand their ability to serve their 

communities, by expanding the online resources available to CDFIs, including:

 Establishing the Financing Healthy Food Options Resource Bank on the CDFI Fund 

website. The Resource Bank makes the training and resource materials used for the 

Financing Healthy Food Options training series available to the general public and 

members of the CDFI industry. The CDFI Fund has also added Resource Banks for both 

the CDFI Capitalization and the Portfolio Management training series;

 Releasing the CDFI Industry Analysis: Summary Report, which examines the state of the 

CDFI industry and its performance through the recent recession. The report, which was 

financed by the CDFI Fund and produced as part of the Capacity Building Initiative by 

the Center on Social Innovation and Finance at the Carsey Institute of the University of 

New Hampshire, explores a variety of important issues to help CDFIs serve more people, 

access more funds, and increase their impact; and

 Releasing the results of a major new study, Searching for Markets: The Geography of 

Inequitable Access to Healthy and Affordable Food, showing that 24.8 million Americans 

live in areas with limited supermarket access in the continental United States. This study, 

which was financed by the CDFI Fund, will help CDFIs target their resources in areas of 

highest need. 

Fiscal Years 2013 and 2014 Priorities: In FY 2013 and FY 2014, the CDFI Fund will continue 

to execute its CDFI Program (Financial Assistance and Technical Assistance), NACA Program, 

BEA Program, and Healthy Food Financing Initiative (HFFI), as well as continue

implementation of the CDFI Bond Guarantee Program. Specifically, during FY 2013, the CDFI 

Fund will:

 Develop application materials and procure additional contracting services as necessary to 

implement the CDFI Bond Guarantee Program. The CDFI Fund anticipates publishing 

the Notice of Guarantee Authority, Qualified Issuer Application, and Guarantee 

Application in May 2013. The CDFI Fund will begin the review and approval of 

Qualified Issuer and Guarantee applications in July 2013.

 Require all CDFIs whose original certifications have expired to undergo a full 

recertification process to ensure that eligible institutions retain certification status while 

upholding the integrity of the certification.

 The CDFI Fund is developing a process to confirm annually the certification status of all 

certified CDFIs.

 Reevaluate policies, procedures, and processes to streamline operations and improve 

administrative efficiency and efficacy.
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 Cultivate intergovernmental, non-profit, and private partnerships to leverage resources 

for CDFIs around the country.

Fiscal Year 2014: The Treasury Department requests the following for FY 2014:

 $144.3 million for the CDFI Program to provide Financial Assistance (FA) and Technical 

Assistance (TA) awards. Through the CDFI Program, the CDFI Fund awards grants and 

loans to invest in and to build the capacity of CDFIs to serve low-income communities 

lacking adequate access to affordable financial products and services. The proposed FY 

2014 Budget supports FA and TA awards to CDFIs to further goals such as:

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

real estate development);

- Affordable housing (housing development and homeownership); 

- Financial services (such as basic banking services to underserved communities); 

and

- Development services (such as financial literacy or homebuyer counseling and 

education).

 $10 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. Consistent with federal efforts to promote improving social outcomes while 

more effectively allocating public resources, the CDFI Fund will seek to better align the 

Pay for Success (PFS) model with existing BEA qualified activities. The CDFI Fund will 

collect and track PFS-related financing activity along with other inputs (e.g., BEA 

program evaluation) for consideration of future program changes. Awardees that engage 

in PFS-related activities may be publicly acknowledged by the CDFI Fund.

 Up to $35 million for HFFI awards to CDFIs to expand the offering of affordable 

financing for healthy food retail options in distressed communities. The Administration 

is working to eliminate food deserts by 2017. As part of this effort, the HFFI increases

the availability of affordable, healthy foods in underserved urban and rural communities, 

particularly through the development or equipping of grocery stores and other healthy 

food retailers. The HFFI request in FY 2014 includes $10 million in grants funding 

previously administered by the Department of Health and Human Services’ Community 

Economic Development program.

 $12 million to provide FA and TA awards through 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, thereby increasing access to credit, capital, 

and financial services in Native Communities. 

 $23.6 million in administrative funding to support a variety of purposes, including:

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

- Implementation and oversight of the CDFI Bond Guarantee Program;
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- Administration of non-monetary award programs and activities including CDFI 

and CDE certification and recertification; 

- Continuation of research and program evaluation of the effectiveness of CDFI 

Fund awards and the NMTC Program; and

- Enhancement of existing management and information systems and improvement 

of operational efficiency and effectiveness.
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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 2012 Enacted 79 $221,000

FY 2013 Annualized CR Rate 79 $222,353

Changes to Base:

Adjustment to Request (4) ($1,353)

Adjustment to FTE Estimate (4) -

Continuing Resolution Increase - ($1,353)

Maintaining Current Levels (MCLs): - $266

Pay-Raise - $81

Non-Pay - $185

Non-Recurring Costs: - ($500)

Program Management Support - ($500)

Efficiency Savings: 1 ($853)

IT and Other Contract Savings 1 ($853)

Subtotal Changes to Base (3) ($2,440)

Total FY 2014 Base 76 $219,913

Program Changes:

Program Decreases: - ($11,302)

Bank Enterprise Award Program - ($8,000)

CDFI Core Program - ($1,735)

Administration - ($1,567)

Program Increases: - $16,325

Healthy Food Financing Initiative - $13,000

Administration - Bond Guarantee Program - $1,825

Administration - Research and Evaluation (Data Collection) - $1,500

Total FY 2014 Request 76 $224,936

2A – Budget Increases and Decreases Description

Adjustment to Request ...............................................................................-$1,353,000 / -4 FTE

Adjustment to FTE Estimate +$0 / -4 FTE 

Full time employees (FTEs) are reduced by four to align to historical usage.

Continuing Resolution Increase -$1,353,000 / +0 FTE 

The across-the-board 0.612 percent increase provided in the CR through March 27, 2013 is nonrecurred.

Maintaining Current Levels (MCLs) .........................................................+$266,000 / +0 FTE

Pay-Raise +$81,000 / +0 FTE 

The President's Budget proposes a 1 percent pay-raise for federal employees in 2014.

Non-Pay +$185,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment.
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Non-Recurring Costs ....................................................................................-$500,000 / +0 FTE

Program Management Support -$500,000 / +0 FTE 

This is a one-time savings in the administrative account resulting from a reduction in the cost of 

the project management support for IT systems acquisition and deployment.

Efficiency Savings .........................................................................................-$853,000 / +1 FTE

IT and Other Contract Savings -$853,000 / +1 FTE 

The CDFI Fund will achieve efficiency savings through reductions to existing management 

contracts, particularly in the Information Technology area. A portion of these savings is 

contingent on CDFI hiring an additional FTE to replace the current IT security contractor.

Program Decreases ..................................................................................-$11,302,000 / +0 FTE

Bank Enterprise Award Program -$8,000,000 / +0 FTE 

The CDFI Fund proposes to reduce the BEA Program by $8 million in FY 2014. Based on the 

current fiscal environment and competing CDFI Fund priorities, the CDFI Fund proposes to 

allocate these resources to other programs.

CDFI Core Program -$1,735,000 / +0 FTE 

The CDFI Fund will reduce the amount and number of financial assistance and technical 

assistance awards. The CDFI Fund may also reduce the funding level for its multi-year Capacity

Building Initiative, which provides technical assistance and capacity-building services to CDFIs 

and the financial services industry.

Administration -$1,567,000 / +0 FTE 

The CDFI Fund proposes to reallocate current resources to the CDFI Bond Guarantee Program 

and research and evaluation.

Program Increases ..................................................................................+$16,325,000 / +0 FTE

Healthy Food Financing Initiative +$13,000,000 / +0 FTE 

The FY 2014 Budget provides additional funding for the HFFI to continue increasing the 

availability of affordable, healthy foods in underserved urban and rural communities. The CDFI 

Fund will make CDFI Program awards to CDFIs that will finance healthy food alternatives in 

low-income neighborhoods. Of the additional funding requested, $10 million comes from grants 

funding that was previously administered by the Department of Health and Human Services’ 

Community and Economic Development (CED) program. These funds will continue to serve the 

CDFI Fund’s goal of increasing access to healthy, affordable food in communities that currently 

lack these options. 

Administration - Bond Guarantee Program +$1,825,000 / +0 FTE 

The CDFI Fund estimates administration of the CDFI Bond Guarantee Program in FY 2014 will 

cost $2,316,000. Approximately $491,000 will be offset by collection of a statutory 

administrative fee on issued loan guarantees. Treasury proposes to reinvest $1,825,000 to meet 
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the remaining program administration requirements, including the provision of contract support 

to provide technical assistance to CDFI Bond Guarantee Program staff in the following areas: 

origination, credit review, loan monitoring, and outreach.

Administration - Research and Evaluation (Data Collection) +$1,500,000 / +0 FTE 

The CDFI Fund is requesting funding for research and evaluation projects for the following three 

proposals: 

 Development of Community Development Impact Measurement Estimator (CDIME) -

Estimated Cost: $650,000 to $750,000

 Analysis of Federal Reserve and Federal Financial Institutions Examination Council 

(FFIEC) Historical Community Reinvestment Data - Estimated Cost: $400,000

 Support the Research and Evaluation Activities for New Programs - Estimated Cost: 

$400,000 
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2.2 – Operating Levels Table

Dollars in Thousands

Community Development Financial Institutions Fund FY 2012 FY 2013 FY 2014

 Actual Annualized Request

Object Classification CR Rate 

11.1 - Full-time permanent 6,832 8,196 8,486

11.9 - Personnel Compensation (Total) 6,832 8,196 8,486

12.0 - Personnel benefits 1,968 2,130 2,206

Total Personnel and Compensation Benefits $8,800 $10,326 $10,692

21.0 - Travel and transportation of persons 153 177 161

22.0 - Transportation of things 4 4 4

23.1 - Rental payments to GSA 932 0 0

23.3 - Communication, utilities, and misc charges 135 135 135

24.0 - Printing and reproduction 151 25 25

25.1 - Advisory and assistance services 9,920 11,783 10,930

25.2 - Other services 381 350 113

25.3 - Other purchases of goods & serv frm Govt accounts 6,870 8,170 8,140

25.5 - Research and development contracts 0 1,100 1,500

26.0 - Supplies and materials 85 86 56

31.0 - Equipment 143 33 30

41.0 - Grants, subsidies, and contributions 199,732 228,520 226,285

Total Non-Personnel 218,506 250,383 247,379

Total Budgetary Resources $227,306 $260,709 $258,071

Budget Activities:

Community Development Financial Institutions Program 147,905 156,731 154,102

Bank Enterprise Award Program 21,956 36,110 28,110

Native American CDFI Assistance Program 13,594 14,670 12,705

Administration 23,055 29,559 26,657

Healthy Food Financing Initiative 20,796 23,639 36,497

Total Budgetary Resources $227,306 $260,709 $258,071

FTE 69 79 76

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

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 Community Development Banking and Financial Institution

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 

EX-3, $224,936,000, to remain available until September 30, 2015; of which 

$12,000,000 shall be 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; of 

which, notwithstanding section 108(d) of such Act, up to $35,000,000 shall be 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 to expand 

the availability of healthy food options in distressed communities; of which 

$10,000,000 shall be for the Bank Enterprise Awards program; and of which up to 

$23,636,000 may be used for administrative expenses, including administration of 

the New Markets Tax Credit Program and the CDFI Bond Guarantee Program,

and up to $300,000 for administrative expenses to carry out the direct loan 

program; and of which up to $2,222,500 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: Provided further, That up to $10,000,000 of the amounts provided 

under this heading shall be available for the cost of guarantees pursuant to and as 

authorized by section 114A of the Riegle Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 4701 et seq.): Provided further, That funds for 

the cost of guarantees are available to subsidize total loan principal not to exceed

$1,000,000,000: Provided further, That, pursuant to such section 114A, up to 

$1,000,000 collected from administration fees may be used for administrative

expenses of the CDFI Bond Guarantee Program, and shall be in addition to funds 

otherwise provided for administrative expenses of the CDFI Bond Guarantee 

Program.

Waiver of 

award cap for 

HFFI

applicants. 

Adds FCRA 

requirement 

for CDFI 

Bond 

Guarantee 

Program. 
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2C – Legislative Proposals

Treasury recommends a legislative change for the Bond Guarantee Program that would 

accomplish the following: (1) clarify that Section 114A of the Riegle Community Development 

and Regulatory Improvement Act of 1994 (12 U.S.C. 4713a) complies with requirements under 

the Federal Credit Reform Act, and (2) extend the program through FY 2015, one year beyond 

its existing sunset date at the end of FY 2014.

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 long-term 

credit at below-market interest rates. The CDFI Bond Guarantee Program is a groundbreaking 

effort to accelerate community economic revitalization across the nation.

Given the delay in developing the program regulations, Treasury proposes that the CDFI Bond 

Guarantee Program be extended through FY 2015 to allow for an additional amount of $1 billion 

of authority be authorized. It is also recommended that language be included that clarifies the 

statute to fulfill FCRA requirements. 

Suggested Legislative Language

SEC. 126. Section 114A of the Riegle Community Development and Regulatory Improvement Act 

of 1994 (12 U.S.C. 4713a) is amended as follows: (1) by amending subsection (h) to read as 

follows: (h) FEDERAL CREDIT REFORM ACT.—The provisions of this section satisfy the 

requirements of subsections (b) and (e) of section 504 of the Congressional Budget Act of 1974.; 

(2) in subsection (k), by striking "2014" and inserting "2015".
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Section 3 – Budget and Performance Plan

3A – Administration

($23,636,000 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 (NOFAs), 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. The goal owner for this budget activity is the Deputy Director of the CDFI Fund.

During FY 2013, the CDFI Fund will finalize the CDFI Bond Guarantee Program’s 

infrastructure in key areas to include origination, credit and risk management, and loan 

monitoring and compliance. The CDFI Fund has also hosted four stakeholder listening sessions 

across the United States to educate potential applicants on the structure of the program and 

requirements for participation. To support infrastructure development through FY 2014, the 

CDFI Fund proposes to leverage existing resources within Treasury and other government 

agencies. These resources – 9 Detailees, 6 Schedule A hires - will play a central role in managing 

and providing internal controls for the CDFI Bond Guarantee Program and will be absorbed 

within the existing request for the Administration function. In addition, increased staffing and 

contractors will support the CDFI Fund in achieving program objectives and filling critical 

functions identified in OMB Circular A-129 with respect to credit program implementation and 

management. Objectives and critical functions for the CDFI Bond Guarantee Program in FY 

2014 include:

 Reviewing and approving Qualified Issuer and Guarantee Applications;

 Educating prospective applicants about the program;

 Implementing comprehensive risk management measures that will include conducting on-site 

reviews of servicers and a representative sample of Eligible CDFIs; and

 Monitoring Eligible CDFIs and their outstanding loan portfolios.

Upon expiration of the program, the CDFI Fund will rely on existing internal resources to 

conduct loan monitoring and compliance reviews of Eligible CDFIs.

Description of Performance: 

The CDFI Fund has made significant progress enhancing its program administrative business 

processes, enabling quicker award disbursements. 

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 (Allapplication-award and All-award-disbursement cycle times). 
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In FY 2012, the CDFI Fund completed its program application-award cycle time in 6.5 months, a 

full month sooner than the target of 7.5 months. While the CDFI Fund outperformed the FY 

2012 target by making the awards in less time, staff analysis indicates that this was due to a onetime alignment of application and award rounds across different programs’ award cycles, 

principally attributable to the early staging of the BEA Program round. However, the CDFI 

Fund does not expect to replicate this performance in FY 2013 because of changes in program 

application and award calendar cycles to align CDFI Program application with CDFI 

recertification requirements, and the expected launch of the CDFI Bond Guarantee Program. 

Thus, the target is 7.5 months in FYs 2013 and 2014. 

The All- Award-disbursement cycle time target of 2.5 months, which is a measure of how quickly 

the CDFI Fund manages to disburse program funds after the award announcement, was not met 

as it took 3.1 months to disburse 85 percent of the awards. The shortfall in meeting the awarddisbursement cycle time was largely due to the reinstitution of the matching award requirements 

for the FA component of the CDFI Program. Considerable effort was required by program and 

financial management staff to assure the accuracy of all in-kind matching requirements for grants 

and loans, particularly for the rates and terms of the matching loans. As a result of the increased 

level of effort to ensure strong controls over the disbursement process, the CDFI Fund has raised

the target award-disbursement target to 3.5 months for FY 2013 and 2014.

The CDFI Fund’s composite performance measures also include two composite program 

measures (All-jobs created/maintained and All-affordable housing units developed or produced),

which provide combined results from all of the CDFI programs.

In FY 2012, the CDFI Fund reported for its All-jobs created and maintained measure a total of 

57,023, exceeding the target largely due to the phased impact of Recovery Act investments 

reported in this period. The All-jobs target for FY 2013 reflects lower requested budget levels 

and a projected inflation adjustment, as well as the tapering off of Recovery Act investments. 

The All- jobs target for FY 2014 reflects the increase in tax credit authority.

In FY 2012, the composite All-affordable housing measure totaled 27,433 units, which include 

real estate construction and rehabilitation units financed in part by CDFI Program financial 

assistance awardees and NMTC allocatees. The target was exceeded largely due to a higher than 

anticipated housing portfolio initiated by CDFI program awardees. In FYs 2013 and 2014, the 

All-affordable housing target reflects the anticipated increase of Capital Magnet Fund units 

financed.

With respect to administrative performance plans in FY 2013, the CDFI Fund is developing 

baseline compliance reporting on the percent of awardees in default. In FY 2013, CDFI Fund 

staff will perform compliance desk reviews and continue with plans for modernizing and 

automating the compliance review process. Moreover, the CDFI Fund will implement an 

initiative to recertify CDFIs that must be recertified in FY 2013. It is important to maintain the 

integrity and strength of CDFI certification; beyond making CDFIs eligible for CDFI Fund 

programs, CDFI certification is a brand that carries with it other important tangible and 

intangible benefits, such as assisting CDFIs in attracting additional financing from mainstream 

banks, corporations, foundations, and state and local governments.
CDFI - 17

3.1.1 – Administration Budget and Performance Plan

The CDFI Fund’s suite of performance measures was comprehensively revised in FY 2010 so 

many of these measures only have two years of actual results. The targets for FYs 2013 and 

2014 have been adjusted in light of FY 2012 actual data.

Dollars in Thousands

Administration Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $0 $9,630 $12,483 $13,797 $18,602 $22,965 $23,106 $23,636

 Reimbursable Resources $0 $0 $0 $0 $0 $0 $106 $0

Budget Activity Total $0 $9,630 $12,483 $13,797 $18,602 $22,965 $23,212 $23,636

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

ALL - Award Cycle Time N/A N/A N/A N/A 7.4 6.5 7.5 7.5

ALL - Disbursement Cycle 

Time

N/A N/A N/A N/A 2.0 3.1 3.5 3.5

ALL - Jobs Created/Maintained N/A N/A N/A N/A 55,274 57,023 50,000 60,000

ALL - Number of affordable 

housing units developed or 

produced

N/A N/A N/A N/A 19,083 27,433 24,000 24,000

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

3B Community Development Financial Institutions Program

($144,300,000 from direct appropriations): 

The program funded by this budget activity 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 

financial assistance awards to CDFIs that have comprehensive business plans for creating 

community development impact and that demonstrate the ability to leverage private sector 

sources of financing, as well as technical assistance grants to CDFIs and entities proposing to 

become CDFIs. The goal owner for this budget activity is the Program Manager for the CDFI 

Program. 

Description of Performance:

As detailed in Table 3.1.2, in FY 2012, CDFI Program awardees reported originating 17,547 

loans totaling nearly $1.3 billion based on their portfolio of activities in FY 2012, exceeding the 

target for the number and amount of loans originated.1 Of these transactions, $363 million were 

 

1

In FY 2011, the CDFI Program added two new performance outcome measures: Number of loans/investments 

originated by CDFI awardees in the reporting year and Amount of loans/investments originated by CDFI awardees 
CDFI - 18

originated for 6,345 business and microenterprise loans, $197.8 million for 4,379 home 

improvement and purchase loans, and $318.5 million for 503 residential real estate transactions. 

The Percentage of eligible areas served by CDFI awardees measured 21.2 percent for the 

reporting period, slightly exceeding the target. This metric provides a program coverage 

measure of the percentage of all program-eligible census tracts that had one or more transactions 

originated by a CDFI Program awardee.2 Targets are set slightly lower in the forthcoming fiscal 

years because there is uncertainty about the number and distribution of eligible census tracts with 

the adoption of the new five-year American Community Survey census data. 

3.1.2 – Community Development Financial Institutions Program Budget and Performance 

Plan

Dollars in Thousands

Community Development Financial Institutions Program Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $31,881 $52,250 $149,750 $107,600 $162,830 $146,035 $146,929 $144,300

Budget Activity Total $31,881 $52,250 $149,750 $107,600 $162,830 $146,035 $146,929 $144,300

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

CDFI - Amount of 

Loans/Investments Originated 

(Annual) $ millions

N/A N/A N/A N/A 1,228.0 1,298.0 1,200.0 1,200.0

CDFI - Number of 

Loans/Investments Originated

(Annual)

N/A N/A N/A N/A 16,313 17,547 16,900 16,900

Percentage of Eligible Areas 

Served by CDFI Awardees 

N/A N/A N/A N/A 22.1 21.2 20.0 20.0

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

3C – New Markets Tax Credit Program

($0 from direct 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 that 

allow individual and corporate investors to receive a tax credit against their Federal income taxes 

 

in the reporting year. These two new measures replace the CDFI Program’s private sector leverage measure, which 

was viewed as too sensitive to macroeconomic factors and has now been converted to an indicator. 

2 The percentage of eligible areas served by CDFI Program awardees measures the percentage of all eligible census 

tracts receiving at least one origination in the past three years. This methodological change reduces fluctuations and 

ensures more accurate forecasting.
CDFI - 19

in exchange for making equity investments in Community Development Entities (CDEs). In 

turn, the money is used to finance businesses and real estate projects in their communities. The 

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

In addition, the FY 2014 President’s Budget proposes to permanently extend the NMTC, 

allowing up to $5 billion in qualifying investment in each year beginning in 2014. The proposal 

would also permit the NMTC to permanently offset AMT liability.

The Budget also proposes to provide a new allocated tax credit, the Manufacturing Communities 

Tax Credit Program, which would support qualified investments in communities affected by 

military base closures or mass layoffs, such as those arising from plant closures. This would 

provide about $2 billion in credits for qualified investments approved in each of the three years, 

2014 through 2016.

Description of Performance:

The 2011 NMTC authority was allocated in FY 2012 due to delays in the passage of the 

authorizing legislation. In the 2011 round, the NMTC Program awarded, through its annual 

competitive application process, $3.6 billion in NMTC investment allocation authority to CDEs, 

providing tax credit allocation authority to CDEs for targeted financing in low-income 

communities. 

In FY 2012, based on program activities from 2011, NMTC allocatees reported annual financing 

of nearly $5.5 billion in low-income communities, exceeding the annual target of $4 billion, 

largely due to the continued impact of Recovery Act tax credit authority. Of this new financing, 

more than $2.5 billion went into non-real estate businesses, and more than $2.9 billion went into 

real estate activities. The FY 2013 target of $4.5 billion reflects the available tax credit authority 

for the year. The FY 2014 target increase to $5 billion reflects the increase in available tax credit 

authority for making Qualified Equity Investments.

Performance targets for the proposed Manufacturing Communities Tax Credit Program will be 

developed based on eligibility criteria for identifying communities affected by mass layoffs at 

closed manufacturing facilities and military base closures. The CDFI Fund will work with the 

Bureau of Labor Statistics Mass Layoff program, as well as the Office of Economic Adjustment 

of the Department of Defense, to assess available data and indicators for identifying affected 

communities.

To date, the cumulative CDE financing total has risen to $26.4 billion. More than 70 percent of 

new financing went to severely distressed communities reported in FY2012, meeting the target 

of 70 percent.3 Future targets reflect the tapering off of Recovery Act activity and the 

uncertainty associated with the adoption of the of the new five-year American Community 

Survey census data (2006-2010) for defining program-eligible census tracts and the number and

distribution of severely distressed communities. 

 

3

―Severely distressed‖ communities include Census tracts with poverty rates above 30 percent; or median family 

incomes below 60 percent of the metropolitan or state median; or unemployment rates greater than 1.5 times the 

national average.
CDFI - 20

3.1.3 – New Markets Tax Credit Program

Dollars in Thousands

New Markets Tax Credit Program Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $4,258 $4,120 $4,267 $4,203 $0 $0 $0 $0

Budget Activity Total $4,258 $4,120 $4,267 $4,203 $0 $0 $0 $0

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

Community Development 

Entities' Annual Qualified 

Equity Investments In LowIncome Communities ($ 

billions)

2.5 3.3 3.6 3.1 4.7 5.5 4.5 5.0

NMTC-Percentage of Loans 

and Investments that Went Into 

Severely Distressed 

Communities 

76.0 73.0 81.0 73.4 72.4 70.4 70.0 70.0

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

3D – Bank Enterprise Award Program

($10,000,000 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 

to CDFIs. These objectives align with the Department of the Treasury’s Strategic Goal 2: To 

Enhance Economic Growth, Competitiveness, and Sustainability in the U.S. economy. 

Description of Performance:

In FY 2012, the CDFI Fund received 71 eligible applications requesting a total of approximately 

$88.5 million, compared to 82 applications requesting a total of approximately $68 million in FY 

2011. The CDFI Fund selected 59 FDIC-insured institutions to receive approximately $18 

million in BEA Program awards. The average award was $304,569. FY 2012 BEA Program 

awardees increased their qualified community development activities over the prior year 

activities by $383.3 million and all applicants increased by $432.4 million. The target was 

exceeded as applicants increased their focus on qualified community development activities. FY 

2012 awardees are headquartered in 18 states and the District of Columbia, compared to the 22 

states and the District of Columbia represented in the prior year. Due to delays related to 

finalizing the FY 2012 appropriations, the FY 2012 awards were not announced until the first 

quarter of FY 2013. The target for FY 2014 reflects expected lower program funding levels.
CDFI - 21

3.1.4 – Bank Enterprise Award Program

Dollars in Thousands

Bank Enterprise Award Program Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $12,551 $20,000 $22,000 $25,000 $21,956 $18,000 $18,110 $10,000

Budget Activity Total $12,551 $20,000 $22,000 $25,000 $21,956 $18,000 $18,110 $10,000

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

BEA-Increase in Community 

Development Activities Over 

Prior Year For All BEA 

Program Applicants ($ million) 

227.0 232.0 292.0 290.0 268.3 432.4 330.0 250.0

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

3E – Native American CDFI Assistance Program

($12,000,000 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, through the NACA Program, makes monetary awards 

to increase the number and capacity of existing or new Native CDFIs — i.e., CDFIs that serve 

Native Communities. In addition, the NACA Program provides training to help strengthen and 

develop Native CDFIs. 

Description of Performance:

As detailed in Table 3.1.5, in FY 2012 NACA awardees reported originating 1,170 loans 

amounting to $21.7 million. The target for the number and amount of loans originated 

substantially exceeded the initial target which was established based on only one year of data. Of 

the $21.7 million in loans originated by reporting Native CDFIs, nearly 39 percent went to 

business loans, more than 35 percent for home purchase or home improvement loans, more than 

10.5 percent for consumer loans, and the balance to commercial real estate and other types of 

loans. Future targets are being recalibrated as additional data is acquired for this new 

performance measures. 
CDFI - 22

3.1.5 – Native American CDFI Assistance Program

Dollars in Thousands

Native American CDFI Assistance Program Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $5,816 $8,000 $16,500 $12,000 $11,352 $12,000 $12,073 $12,000

Budget Activity Total $5,816 $8,000 $16,500 $12,000 $11,352 $12,000 $12,073 $12,000

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

NACA - Amount of 

Loans/Investments Originated 

(Annual) (Dollars in Millions)

N/A N/A N/A N/A 14.7 21.2 20.0 20.0

NACA - Number of 

Loans/Investments Originated 

(Annual)

N/A N/A N/A N/A 1,004 1,170 1,000 1,000

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

3F – Healthy Food Financing Initiative

($35,000,000 from direct appropriations): 

The Healthy Food Financing Initiative is an interagency initiative involving the U.S. Department 

of the Treasury and the U.S. Department of Agriculture. The HFFI represents the Federal 

government’s first coordinated step to eliminate ―food deserts‖ – low-income urban and rural 

areas in the United States with limited access to affordable and nutritious food – by promoting a 

wide range of 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 to projects that increase access to healthy food 

options. The goal owner for this budget activity is the CDFI Program Manager.

Description of Performance:

The primary HFFI performance measurement is the number of retail food outlets created and 

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

as having limited access to healthy food retail options. In addition, HFFI projects will report on 

all other required CDFI performance data through the CDFI Fund’s Community Investment 
CDFI - 23

Impact System Performance measures that were developed in FY 2011, with baseline reporting 

slated to begin in FY 2013.4

3.1.6 – Healthy Food Financing Initiative

Dollars in Thousands

Healthy Food Financing Initiative Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Enacted Enacted Enacted Annualized 

CR Rate

Request

 Appropriated Resources $0 $0 $0 $0 $0 $22,000 $22,135 $35,000

Budget Activity Total $0 $0 $0 $0 $0 $22,000 $22,135 $35,000

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

HFFI - Retail Outlets 

Created/Preserved

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

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

 

4 HFFI awardees have one program measure to report on that identifies low-income areas with low-access to healthy 

food options. In addition, all HFFI awardees must also report on all other required institutional and transaction data 

fields as any non-HFFI awardee. For more detail on all of the non-HFFI performance reporting metrics please see 

the complete documentation for the Community Investment Impact System: 

http://www.cdfifund.gov/what_we_do/ciis.asp
CDFI - 24

Section 4 – Supplemental Information

4A – Summary of Capital Investments

As part of its FY 2014 capital investment strategy, the CDFI Fund plans to spend approximately 

$4.88 million on Information Technology (IT). The CDFI Fund has no major IT investments, 

nor any capital investments other than IT.

Non-Major IT Investments

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 IT resources on IT solutions that directly 

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

activity is the acquisition of an Award Management Information System (AMIS) — an 

enterprise commercial off-the-shelf product that will replace the CDFI Fund’s legacy business 

systems. By streamlining business processes and leveraging modern automation and technology, 

the CDFI Fund will be able to handle larger volumes of grants, tax credits, and loan portfolios 

while achieving more transparency and better data quality, and providing better service to its 

customers. 

Last year, the CDFI Fund identified seven non-major IT investments. Investments for the CDFI 

Fund Public Website and Legacy Mission Systems are in Operations & Maintenance (O&M), 

and their funding levels will remain flat compared to FY 2012. The Community Investment 

Impact System (CIIS) investment is also in O&M, but will show an increase, because the 

supporting contract expires in FY 2013 and will need to be re-competed. The CDFI LAN 

investment, which consisted of funding for CDFI Fund’s IT infrastructure, will be 

decommissioned now that the CDFI Fund IT infrastructure is being managed by another 

Treasury bureau, TTB. The Information Technology Security investment, which consisted of 

funding for contract labor to support Federal Information Security Management Act (FISMA) 

and operational security, will be decommissioned, because these services will be provided by an 

additional FTE. The remaining two investments are AMIS, which is described above, and IT 

Program Management Support. The IT Program Management Support investment includes 

planning, acquisition, and system deployment support services for the modernization of CDFI 

Fund mission systems. These services are being obtained via an Interagency Agreement with 

TTB.

IT Infrastructure Investments

The primary CDFI Fund IT infrastructure activity is the Data Center Consolidation Initiative. In 

FY 2010, the CDFI Fund began decommissioning its current data centers and receiving 

commodity IT infrastructure services from TTB. The scope of the Data Center Consolidation 

Initiative includes telecommunication services (e.g., network and Internet services), data center 

services (i.e., shutting down CDFI Fund data centers), and end-user services (e.g., desktop 

management, consolidated software licenses and IT Help Desk). As of May 2012, TTB assumed 

management of the CDFI Fund IT infrastructure, which enabled the CDFI Fund to complete the 

decommissioning of its on-site data center.
CDFI - 25

4B – Bond Guarantee Program

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

Program (BG Program). These bonds will support CDFI lending and investment activity in 

underserved communities by providing a source of long-term capital. Qualified issuers (CDFIs 

or their designees) will issue Bonds that are guaranteed by Treasury and use the Bond Proceeds 

to make Bond Loans to Eligible CDFIs for Eligible Community and Economic Development 

Purposes. Treasury may guarantee up to 10 Bonds per year. The Bond maturity cannot exceed 

30 years. During FY 2013, the CDFI Fund will complete the BG Program development and 

implementation and anticipates administering up to its authorized cap in Bond authority. The 

following objectives have been identified for the BG Program for FY 2014:

 As a portfolio management and loan monitoring tool, on-site reviews of a representative 

sample of Qualified Issuers and Eligible CDFIs and performance and impact analyses of the 

entire BG Program Bond Loan portfolio; and

 A compliance assessment of the Master Servicer/Trustee, Qualified Issuers and Eligible 

CDFIs to the Bond Documents across the loan lifecycle.

4.1 – Resource Detail Table

Dollars in Thousands

Bond Guarantee Program

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Request Request

Obligations - - - $1,000,000 $1,000,000

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

4.2 – Financing Accounts - Non-Budgetary Summary

Dollars in Thousands

Bond Guarantee Program

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Enacted Enacted Enacted Request Request

Obligations - - - $1,000,000 $1,000,000

Collections1- - - $2,442 $13,504

1/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. Zero subsidy rate with Bond Loan disbursements levels of 

$50,000,000; $250,000,000; $250,000,000; $250,000,000; and $200,000,000, respectively, over a 5 year period 

for FY2013 and FY2014.