Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in thousands

Appropriation FY 2011 FY 2012 FY 2013 FY 2012 TO FY 2013

 Enacted Enacted Request $ Change % Change

Bank Enterprise Award Program $21,956 $18,000 $15,000 ($3,000) -16.67%

Community Development Financial 

Institutions Program $144,660 $146,035 $127,953 ($18,082) -12.38%

Native American CDFI Assistance Program $11,976 $12,000 $12,000 $0 0.00%

Administration $22,954 $22,965 $21,047 ($1,918) -8.35%

Bank on USA Program $0 $0 $20,000 $20,000 NA

Healthy Food Financing Initiative $25,000 $22,000 $25,000 $3,000 13.64%

Subtotal, Community Development 

Financial Institutions Fund $226,546 $221,000 $221,000 $0 0.00%

Offsetting Collections - Reimbursables $1,468 $1,500 $1,053 ($447) -29.80%

Total Program Operating Level $228,014 $222,500 $222,053 ($447) -0.20%

Direct FTE 84 79 79 0 0.00%

Reimbursable FTE 0 0 0 0 NA

Total FTE 84 79 79 0 0.00%

Summary

The FY 2013 budget request for the 

Community Development Financial 

Institutions Fund (CDFI Fund) will ensure that 

the CDFI Fund meets its mission of increasing 

economic opportunity and promoting 

community development investments for 

underserved populations and in distressed 

communities in the United States.

Total resources required to support CDFI Fund

activities for FY 2013 are $221,000,000 from 

direct appropriations.

The CDFI Fund expands the availability of 

credit, investment capital, and financial 

services in distressed urban and rural 

communities, and 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, and the 

Small Business Jobs Act of 2010. 

The CDFI Fund’s investments work toward 

building private markets, improving local tax 

revenues (through job creation, business 

development, commercial real estate, housing 

development and homeownership), and 

empowering residents by stimulating the 

creation and expansion of diverse Community 

Development Financial Institutions (CDFIs), 

which provide loans, investments, business 

counseling, basic banking services and 

financial literacy training to underserved 

communities. The CDFI Fund’s activities 

leverage millions of private sector investment 

dollars from banks, foundations, and other 

funding sources.

The FY 2013 budget proposes funding for the 

CDFI program and Native program, as well as 

the Healthy Food Financing Initiative (HFFI) 

and the Bank on USA Program. The CDFI 

Fund request also includes funding for 

administration of the New Markets Tax Credit 

(NMTC) Program including a new 

Manufacturing Communities Tax Credit, and 
the Bond Guarantee (BG) Program. The BG 

Program was established by sections 1134 and 

1703 of the Small Business Jobs Act of 2010. 

The BG Program will support CDFI lending 

and investment activities in underserved areas 

by providing a source of long-term capital. 

The new Manufacturing Communities Tax 

Credit supports qualified investments in 

communities affected by military base closures 

or mass layoffs, such as those arising from 

plant closures.

CDFI FY 2013 Budget Highlights

Dollars in thousands

Community Development 

Financial Institutions Fund

FTE Amount

FY 2012 Enacted 79 $221,000

Changes to Base:

Maintaining Current Levels 

(MCLs):

- $269

Maintaining Current Levels - $269

Non-Recurring Costs: - ($300)

Census Data Analysis - ($300)

Efficiency Savings: - ($780)

Office Lease Savings - ($500)

Procurement Savings - ($280)

Subtotal FY 2013 Changes to 

Base

- ($811)

Total FY 2013 Base 79 $220,189

Program Changes:

Program Decreases: - ($22,189)

CDFI Program - ($18,082)

Bank Enterprise Award 

Program

- ($3,000)

Administration - ($1,107)

Program Increases: - $23,000

Bank on USA Program - $20,000

Healthy Food Financing 

Initiative

- $3,000

Total FY 2013 Request 79 $221,000

FY 2013 Budget Adjustments

FY 2012 Likely Enacted

The FY 2012 enacted direct appropriation for 

CDFI is $221,000,000.

Maintaining Current Levels (MCLs) 

Maintaining Current Levels +$269,000 / +0 

FTE

Funds are requested for inflation adjustments 

(1.7 percent) in non-labor expenses such as 

GSA rent adjustments, postage, supplies and 

equipment and health benefits and the increase 

in Federal Employees Retirement System 

participation. Funds are also requested for the 

proposed 2013 pay raise (0.5 percent).

Efficiency Savings

Office Lease Savings -$500,000 / +0 FTE

This savings results from procuring leased 

office space for a lower price.

Procurement Savings -$280,000 / +0 FTE

The CDFI Fund can achieve procurement 

savings by reducing non-competitive and highrisk contract actions and by implementing the 

use of socio-economic programs, such as 8(a) 

and small business set-asides. Other methods 

to achieve savings include strategic sourcing, 

advanced acquisition planning, and GSA 

discount savings.

Non-Recurring Costs

Census Data Analysis -$300,000 / +0 FTE

This is a one-time administrative cost savings

resulting from the decennial census data 

analysis requirement. The CDFI Fund will be 

required to launch a new version of the 

Community Investment Mapping System 

(CIMS) when the 2010 decennial census data 

is released in late 2012.

Program Decreases

CDFI Program -$18,082,000 / +0 FTE

The CDFI Fund will reduce the amount and 

number of financial assistance and technical 

assistance awards. The CDFI Fund will 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.

Bank Enterprise Award Program -$3,000,000 

/ +0 FTE

The CDFI Fund proposes to reduce the BEA 

Program by $3 million in FY 2013. Based on 

the current fiscal environment and competing 

CDFI Fund priorities, the CDFI Fund proposes 
to allocate these resources to other programs. 

The CDFI Fund will continue to evaluate the 

effectiveness of this program to determine 

future funding requests.

Administration -$1,107,000 / +0 FTE

The CDFI Fund proposes to reallocate current 

resources at a reduced cost providing 

additional internal capacity, particularly to the 

compliance monitoring area.

Program Increases

Bank on USA Program +$20,000,000 / +0 

FTE

Through this program, the CDFI Fund will 

facilitate access to, and evaluate the 

effectiveness of, affordable, high-quality 

financial products, services, and education to 

unbanked and underbanked individuals,

consistent with Section 1204 of the DoddFrank Wall Street Reform and Consumer 

Protection Act. 

Healthy Food Financing Initiative 

+$3,000,000 / +0 FTE

The FY 2013 budget proposes additional 

funding for the Healthy Food Financing 

Initiative (HFFI) to continue increasing the 

availability of affordable, healthy foods in 

underserved urban and rural communities. 

Explanation of Budget Activities

Community Development Financial 

Institutions Program ($127,953,000 from 

direct appropriations)

The CDFI Program uses federal resources to 

invest in and build the capacity of CDFIs to 

serve low-income and underserved individuals

and communities lacking adequate access to 

affordable financial products and services. 

The CDFI Program provides monetary awards 

for financial assistance to further economic 

development (job creation, business financing, 

and commercial real estate development); 

affordable housing (housing development and 

homeownership); and community 

development financial services (provision of 

basic banking services to underserved 

communities and financial literacy training). 

The CDFI Program also provides technical 

assistance awards to help CDFIs build their 

capacity to serve their target markets through 

the acquisition of consulting services, 

technology purchases, and staff/board training.

New Markets Tax Credit Program ($0 from 

direct appropriations)

The New Markets Tax Credit (NMTC) 

Program attracts private sector capital into 

low-income communities. Community 

Development Entities (CDEs) apply to the 

CDFI Fund for allocations of tax credit

investment authority in annual competitive 

rounds. Private investors receive tax credits

for equity investments in these CDEs, which in 

turn finance qualified businesses. In addition 

to awarding tax credits, the CDFI Fund 

monitors CDE compliance with the terms of 

their allocation agreements.

In addition, the FY 2013 President’s Budget 

proposes to reauthorize the NMTC Program 

through 2013, requesting $7 billion of 

allocation authority annually. The CDFI Fund 

is also requesting a statutory change to enable 

investors to use NMTC as an offset against 

their Alternative Minimum Tax. Of the $7 

billion requested for the NMTC Program in 

2013, the CDFI Fund anticipates allocating 

$250 million to support financing healthy food 

options in distressed communities as part of 

HFFI. Within the FY 2013 allocation request, 

the Budget also proposes to provide a new 

allocated tax credit, the Manufacturing 

Communities Tax Credit, which would support 

qualified investments in communities affected 

by military base closures or mass layoffs, such

as those arising from plant closures. This 

credit could be structured using the mechanism 

of the New Markets Tax Credit or an 

alternative allocated investment credit 
mechanism. The proposal would provide about 

$2 billion in credits per year for qualified 

investments approved in 2012, 2013 and 2014.

Bank Enterprise Award Program ($15,000,000 

from direct appropriations)

Through the Bank Enterprise Award (BEA) 

Program, the CDFI Fund encourages insured 

depository institutions to increase investments 

and services in distressed communities and 

financial assistance to CDFIs.

Native American CDFI Assistance Program 

($12,000,000 from direct appropriations)

The Native Initiatives includes two 

components: (i) the Native American CDFI 

Assistance (NACA) Program through which 

financial assistance and technical assistance 

awards are provided to build the capacity of 

new or existing Native CDFIs serving Native 

Communities, and (ii) complementary 

capacity-building initiatives that foster the 

development of Native CDFIs through training 

and technical assistance, strengthen their 

operational capacity, and guide them in the 

creation of important financial education and 

asset-building programs for their communities.

Administration ($21,047,000 from direct 

appropriations)

Administration encompasses the CDFI Fund’s 

operational support and management activities 

for each of the award and tax credit programs 

that it administers. This includes finalizing the 

terms of assistance agreements with awardees, 

making disbursements, and monitoring 

awardee compliance with the terms of their 

multi-year assistance and allocation 

agreements. In addition, resources will be 

utilized for a business application

enhancement upgrade and external program 

research evaluations. Administration funds 

will also support the non-monetary award 

programs and activities (the NMTC Program, 

CDFI and CDE certification and 

recertification) and the administration of the 

BG Program.

Healthy Food Financing Initiative 

($25,000,000 from direct appropriations)

Through the Administration’s Healthy Food 

Financing Initiative, the CDFI Fund will build 

on program achievements in FYs 2011 and 

2012, and continue to support and finance 

healthy food alternatives in low-income 

communities.

Bank on USA Program ($20,000,000 from 

direct appropriations)

Through the Bank on USA program, the CDFI 

Fund will work in partnership with Treasury’s 

Office of Financial Education and Financial 

Access to award grants to CDFIs and other 

entities to promote access to and innovations 

in affordable and appropriate financial services 

and basic consumer credit products for 

households without access to such products 

and services. These households face a number 

of problems, including high fees for alternative 

financial services such as check-cashing; 

barriers to saving and building credit; and 

increased exposure to risks such as fraud and 

theft.

Legislative Proposals

The CDFI Fund does not recommend any 

legislative changes for FY 2013.
CDFI Performance by Budget Activity

Budget Activity Performance Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Target Target

Community Development Financial 

Institutions Program

CDFI - Amount of 

Loans/Investments Originated 

(Annual) (Dollars in Millions)

N/A N/A 1,228.0 1,188.0 1,156.0

Administration ALL - Award Cycle Time (Months) N/A N/A 7.4 7.5 7.5

Administration ALL - Jobs Created/Maintained N/A N/A 55,274 43,335 43,335

New Markets Tax Credit Program Community Development Entities' 

Annual Investments In Low-Income 

Communities ($ billions) 

3.6 3.1 4.7 4.0 4.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

In the FY 2011 funding round of the CDFI 

Program, the CDFI Fund received applications 

from 407 organizations, requesting $514 

million in financial and technical assistance 

awards and the Healthy Food Financing 

Initiative (HFFI). The CDFI Fund awarded 

more than $167.3 million in grants to 167 

CDFIs serving distressed communities in 40 

states and the District of Columbia, including 

the full $25 million for HFFI. This activity 

shows that the demand for CDFI Fund 

financing continues to be robust.

As detailed in CDFI Fund Performance Budget 

Activity Table, in FY 2011, CDFI awardees 

reported originating loans totaling more than 

$1.2 billion based on their portfolio of 

activities in FY 2010. Because this measure 

was new in FY 2011, the data on the amount 

of loans or investments originated provides 

baseline information to benchmark and target 

program performance in the upcoming fiscal 

year. 

In FY 2011, the CDFI Fund set an 

experimental benchmark target of 7.5 months 

for its newly developed administrative 

efficiency measure, All Award Cycle Time,

which takes the weighted average of the award 

cycle time from the date when applications are 

received to the date of award announcement 

based on the weighted average of the number 

of awards per program. The CDFI Fund 

managed to reach this target despite the delays 

in the appropriation process.

Starting in FY 2011, program-level job 

creation/maintenance measures were 

standardized and consolidated into CDFI 

Fund-wide measures to reflect the outcome of 

all programs (rather than reporting individual 

program-level measures). Total jobs are 

computed as full-time equivalents. In FY 

2011, baseline data for the new composite Alljobs created and maintained measure totaled 

55,274. The targets for FY 2012 and FY 2013 

reflect lower requested budget levels and 

projected inflation adjustment, as well as the 

tapering off of Recovery Act investments. 

In FY 2011, NMTC allocatees reported annual 

investments of nearly $4.7 billion in lowincome communities by CDEs, exceeding the 

annual target of $3.1 billion, largely due to the 

continued impact of Recovery Act tax credit 

authority. Of these new investments, more 

than $2.2 billion went into non-real estate 

businesses, and more than $2.3 billion went 

into real estate activities. Future targets reflect 

the tapering off of Recovery Act investments

and are inflation adjusted.
The CDFI Fund contracted the Urban Institute 

to perform an evaluation of the NMTC 

Program which is expected to be released in 

FY 2012.

In FY 2012, the CDFI Fund is procuring 

contractor services for the evaluation of the 

CDFI Program. The CDFI Program evaluation

aims to determine how and to what extent the

program’s investments in CDFIs have 

benefited and contributed to the development 

of underserved communities in accordance 

with enabling legislation.