Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in Thousands

FY 2022 FY 2023 FY 2024 FY 2023 to FY 2024

Appropriated Resources Operating Plan Operating Plan Request % Change

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Community Development Financial 

 Institutions Fund Program 0 $171,383 0 $194,000 0 $201,179 NA 3.7%

Economic Mobility Corps 0 $2,000 0 $2,000 0 $0 NA -100.0%

Bank Enterprise Award Program 0 $35,000 0 $35,000 0 $35,000 NA 0.0%

Native American CDFI Assistance 

Program 0 $21,500 0 $25,000 0 $25,000 NA 0.0%

Administrative 71 $33,617 89 $35,000 91 $37,299 2.2% 6.6%

Healthy Food Financing Initiative 0 $23,000 0 $24,000 0 $24,000 NA 0.0%

Small Dollar Loan Program 0 $8,500 0 $9,000 0 $9,000 NA 0.0%

Bond Guarantee Program Credit Subsidy 0 $0 0 $0 0 $10,000 NA 100.0%

Subtotal New Appropriated Resources 71 $295,000 89 $324,000 91 $341,478 2.2% 5.4%

Other Resources

User Fees 0 $1,218 0 $1,200 0 $1,250 NA 4.2%

Recoveries from Prior Years 0 $1,111 0 $500 0 $1,000 NA 100.0%

Unobligated Balances from Prior Years 0 $218,045 0 $237,621 0 $259,100 NA 9.0%

Subtotal Other Resources 0 $220,374 0 $239,321 0 $261,350 NA 9.2%

Total Budgetary Resources 71 $515,374 89 $563,321 91 $602,828 2.2% 7.0%

FY 2022 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

This table excludes COVID-19 pandemic funds

Summary

The FY 2024 Budget requests an appropriation of $341,478,343 for the Community

Development Financial Institutions Fund (CDFI Fund) to administer the CDFI Fund’s programs 

and oversee the existing portfolio of awards. The CDFI Fund supports Treasury’s strategic goal 

of Boosting U.S. Economic Growth and Transforming Government-wide Financial Stewardship.

The CDFI Fund expands the availability of credit, investment capital, and financial services in 

distressed urban and rural communities and for underserved populations. The CDFI Fund carries 

out the Community Development Banking and Financial Institutions Act of 1994, as well as 

certain programmatic provisions of the Community Renewal Tax Relief Act of 2000, the

Housing and Economic Recovery Act of 2008 (HERA), the Small Business Jobs Act of 2010, 

and the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (P. L. 116-

260) that provided $3 billion for emergency support for Community Development Financial

Institutions (CDFIs) and communities responding to the COVID-19 pandemic.

1

In the Spring of FY 2023, the CDFI Fund will award an additional $1.73 billion in grant funds to 

CDFIs to address the economic impact of the COVID-19 pandemic through the CDFI Equitable 

Recovery Program (CDFI ERP). These grants will further assist distressed communities by 

expanding lending, grant making, and increasing investment activity in low- or moderate-income 

1 In FY 2021, $1.25 billion of these funds were awarded through the newly established CDFI Rapid Response Program (CDFI 

RRP), which was designed to quickly deploy capital to CDFIs through a streamlined application and review process.
communities and to borrowers that have significant unmet capital or financial service needs and 

to enable CDFIs to build organizational capacity and acquire technology, staff and other tools 

necessary to accomplish the activities under a CDFI ERP Award.

The CDFI Fund supports the creation and expansion of diverse CDFIs, which provide loans,

investments, business counseling, basic banking services, and financial literacy training to

underserved communities. Working primarily through CDFIs, the CDFI Fund facilitates business 

development, commercial real estate, housing development and home ownership. The CDFI 

Fund’s activities leverage billions of private sector investment dollars from banks, foundations 

and other funding sources on a cumulative basis.

The FY 2024 Budget proposes funding for the CDFI Program, the Native American CDFI

Assistance (NACA) Program, the Bank Enterprise Award (BEA) Program, the Small Dollar 

Loan (SDL) Program, and the Healthy Food Financing Initiative (HFFI). Treasury’s request also 

includes funding for the administration, operational support, and management associated with 

these programs, the New Markets Tax Credit (NMTC) Program, and the CDFI Bond Guarantee 

(BG) Program.

Budget Highlights

Dollars in Thousands

Community Development Investment Fund FTE Amount

FY 2023 Operating Plan 89 $324,000 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $1,204 

Pay Annualization (2023 4.6% average pay raise) 0 $187 

Pay Raise (5.2% average pay raise) 0 $642 

Non-Pay 0 $375 

Subtotal Changes to Base 0 $1,204 

FY 2024 Current Services 89 $325,204 

Program Changes:

Program Decreases 0 ($2,000)

Economic Mobility Corps 0 ($2,000)

Program Increases: 0 $18,274 

CDFI Program 0 $7,179 

BGP Credit Subsidy 0 $10,000 

Administration 2 $1,095 

Subtotal Program Changes 0 16,274 

FY 2024 President's Budget Request 91 $341,478 

Budget Adjustments

Pay Annualization (4.6% in FY 2023) +$187,000 / +0 FTE

Funds are requested for annualization of the January 2023 4.6% average pay raise. 

Pay Raise (5.2% in FY 2024) +$642,000 / +0 FTE

Funds are requested for a 5.2% average pay raise in January 2024. 
Non-Pay (2.0% in FY 2024) +$375,000 / +0 FTE

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment.

Program Decreases ......................................................................................-$2,000,000 / -0 FTE 

Economic Mobility Corps -$2,000,000 / -0 FTE

Due to decreased ongoing demand for the Economic Mobility Corps (EMC), no funding is 

included for this initiative as part of the CDFI Fund’s budget request. However, eligible 

organizations can still apply for awards under the Corporation for National and Community 

Service’s AmeriCorps State and National Direct program to support EMC-related activities, 

which place service members in Certified CDFIs, through funding directly appropriated to that 

program.

Program Increases ....................................................................................+$18,274,000 / +2 FTE

CDFI Program +$7,179,000 / +0 FTE

Increasing the CDFI Program budget by $7,179,000 would provide an increase to Base-Financial 

Assistance (FA) Awards to CDFIs, Technical Assistance (TA) Awards, and Persistent Poverty 

Counties-FA (PPC-FA) Awards.

BGP Credit Subsidy +$10,000,000 / +0 FTE

Request for $10,000,000 to modify existing over-collateralization and/or recourse requirements 

for individual applications thereby expanding the potential pool of CDFIs that could successfully 

participate in the BG Program.

Administration +$1,095,000 / +2 FTE

Request $1,095,000 to support the hiring of two additional staff to support a range of work 

related to research and data collection, geospatial analysis, evaluation of activities that include 

compliance monitoring for the effectiveness of CDFI Fund programs.

Legislative Proposals 

The Budget proposes to modify the Capital Magnet Fund Program, section 1339 of the Housing 

and Economic Recovery Act (HERA), to allow for certain existing statutory requirements to be 

determined by the Secretary, either via promulgation of regulations or in the annual Notice of 

Fund Availability. Current market conditions and the CDFI Fund’s experience with this 

affordable housing program necessitate changes to the program to make it more accessible to 

applicants, and more effective in spurring the production and preservation of affordable housing.

Specific requirements and standards in the statute create significant obstacles to potential 

applicants wishing to apply for these funds, such as the required 10:1 ratio of leverage of private 

and other public funding, a two-year commitment deadline, and restrictions related to targeting 

funds. Modifications proposed to the statute would allow for the Secretary to establish or modify 

standards for these requirements to address market conditions over time and ensure effective 

utilization of funds across diverse geographies.

Funding for this program is not typically appropriated. Per HERA requirements, Fannie Mae and 

Freddie Mac provide allocations annually based on their annual unpaid principal mortgage 
balances. The first awards based on these allocations were made in 2016. Eligible applicants for 

Capital Magnet Fund awards include CDFIs and nonprofit affordable housing developers.

Performance Highlights

FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Budget Activity Performance Measure Actuals Actuals Actuals Target Target

Community 

Development 

Financial

Institutions Program

CDFI - Percentage of Loans &

Investments Originated in

Eligible Distressed or

Underserved Communities by

Dollar Amount of Loans 

(Annual %)

75.0 71.4 67.1 60.0 60.0

Community 

Development 

Financial

Institutions Program

CDFI - Percentage of Loans & Investments 

Originated in Eligible Distressed or Underserved 

Communities by Number of Loans

79.6 75.7 77.7 60.0 60.0

Administration All Award Cycle Time

(Months) 5.5 5.6 8.8 6.5 6.5

Administration

ALL- Number of Affordable

Housing Units Developed or

Produced

44,361 58,125 72,807 I I

New Markets Tax 

Credit Program

NMTC - Percentage of Loans

and Investments That Went

Into Severely Distressed

Communities

77.2 77.0 79.0 75.0 75.0

Key: I - Indicator

Description of Performance

For the FY 2022 CDFI Program round, the CDFI Fund awarded $25.22 million in CDFI 

Program TA awards to 202 organizations headquartered in 41 states, the District of Columbia, 

and Puerto Rico. Additionally, on February 28, 2023 the CDFI Fund announced $149.2 million 

in FA awards to 233 CDFIs for FY 2022 in calendar year (CY) 2023. 

In addition to the FA awards, the CDFI Fund also provided the following supplemental FA 

awards for FY 2022 in CY 2023:

• $23 million to 8 CDFIs through the HFFI-FA awards, a supplemental program designed to 

encourage investments in businesses that provide healthy food options for communities;

• $6.5 million to 13 CDFIs through the Disability Fund-FA awards, a supplemental program 

designed to help CDFIs finance projects and services that will assist individuals with 

disabilities; and

• $17.6 million to 137 CDFIs through the PPC-FA awards, a supplemental program designed 

to encourage investments in Persistent Poverty Counties nationwide.

On October 28, 2022, the CDFI Fund announced $5 billion NMTC awards for the CY 2021 

NMTC Program allocation authority to 107 organizations out of a pool of 199 applicants that 

requested $14.7 billion in NMTC allocations.
Highlights of Select Performance Measures

In the FY 2022, the CDFI Program surpassed the 60.0 percent threshold for the percentage of 

both the dollar amount (67.1 percent) and the number of CDFI loans (77.7 percent) made to 

eligible distressed communities and underserved populations. 

In FY 2022, the NMTC Program recipients reported that over 79.0% of NMTC investments 

made were in severely distressed areas. These are communities with low median incomes and 

high rates of poverty and unemployment.

The All Award Cycle Time metric is an efficiency measure of the average time from the date 

when applications are received to the date of award announcement (calculated in months as an 

average across all programs). The Award Cycle Time in FY 2022 was 8.8 months, exceeding the 

target of 6.5 months. FY 2022 reflects the inaugural round of the SDL Program as well as 

estimates for BEA and CMF programs, which are still in the midst of their FY 2021 round 

application reviews. For FY 2023 the target will remain at 6.5 months because the CDFI Fund 

will be standing up additional programs funded by the Consolidated Omnibus Act of 2021 such 

as the Minority Lending Program (MLP). 

The Number of Affordable Housing Units Developed or Produced metric measures the number 

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

by CDFI Program, NMTC Program, and CMF awardees. In FY 2021, this performance measure 

was converted to an indicator because the variability in projecting annually the number of 

affordable housing units funded for three programs made it difficult to project a reliable target. 

For the FY 2022 actual result, the CDFI Fund has included the units resulting from the FY 2021 

CDFI-RRP awardees, too. The FY 2022 actual result is 72,807 affordable housing units.

The requested additional funding for the CDFI Program should allow the CDFI Fund to continue 

to meet and possibly exceed its benchmark of 60.0 percent of both the dollar amount and the 

number of CDFI loans made to eligible distressed communities and underserved populations. 

This additional investment may impact the number of affordable housing units developed or 

produced. The requested increase in administration dollars for staffing may mean additional staff 

to assist in the program rounds which may help the CDFI Fund met or fall under its 

administrative performance measures such as the award cycle time.