Community Development Financial Institutions (CDFI) Fund 

Mission Statement 

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

services to underserved populations and communities in the United States. 

Program Summary by Budget Activity 

(Dollars in Thousands) 

Appropriation FY 2009 FY 2010 FY 2011

ARRA Enacted Enacted Request $ Change % Change

 Community Development Financial Institutions 

Program $90,000 $59,750 $107,600 $140,000 $32,400 30.3%

 Bank Enterprise Award Program N/A $22,000 $25,000 $0 ($25,000) (100.0%)

 Native Initiatives $8,000 $8,500 $12,000 $12,000 $0 -

 Capital Magnet Fund N/A N/A $80,000 $0 ($80,000) (100.0%)

 Administration $1,933 $10,550 $13,797 $23,000 $5,000 27.8%

 New Markets Tax Credit Program Administration* $67 $4,200 $4,203 Inc. Inc. Inc.

 Financial Education and Counseling N/A $2,000 $1,000 $0 ($1,000) (100.0%)

 Hawaii Financial Ed and Counseling N/A N/A $3,150 $0 ($3,150) (100.0%)

 Bank on USA N/A N/A N/A $50,000 $50,000 100.0%

 Healthy Food Financing Initiative N/A N/A N/A $25,000 $25,000 100.0%

Total Appropriated Resources $100,000 $107,000 $246,750 $250,000 $3,250 1.3%

Total FTE - 60 84 90 6 7.1%

*NMTC Program Administration is included in the Administration budget activity for the FY 2011 Budget request

FY 2011 Priorities 

• To administer all programs and initiatives effectively, efficiently, and in a timely 

manner, and to improve all management processes through continuous assessment of 

the CDFI Fund’s policies and procedures. 

• To enhance the CDFI Fund’s compliance monitoring capabilities to handle the 

increase in the number and types of awards resulting from new programs and funding. 

• To implement an external program evaluation of the CDFI Program and Native 

American CDFI Assistance (NACA) Program. 

• To take steps to enhance the CDFI Fund’s information technology applications, 

including contracting with a shared service provider for a more cost effective 

approach to managing the increased application workload, compliance monitoring, 

and research reporting. 

• To launch the Bank on USA initiative that will promote access to affordable and 

appropriate financial services and basic consumer credit products for households 

without access to such products and services. 

• To support the Healthy Food Financing Initiative for the purpose of increasing 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. 

• To find adequate office space and take the necessary steps to move the operations of 

the CDFI Fund in a rapid seamless and cost-effective manner. 

• To evaluate the impact of Capital Magnet Fund (CMF) grants so that future resource 

decisions can be informed by this analysis. 

• To evaluate the enhancements made to the BEA Program in FY 2009 and FY 2010 

and apply this analysis to future funding and programmatic decisions. 

CDFI - 1 
Table of Contents 

Community Development Financial Institutions (CDFI) Fund.................................... 1

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

1A – Description of Bureau Vision and Priorities .......................................................... 3

1B – Program History and Future Outlook ..................................................................... 4

Section 2 – Budget Adjustments and Appropriation Language ................................... 7

2.1 – Budget Adjustments Table ..................................................................................... 7

2A – Budget Increases and Decreases Description ........................................................ 7

2.2 – Operating Levels Table ...................................................................................... 112

2.3 – Appropriations Detail .......................................................................................... 12

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

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

3.1 – Budget by Strategic Outcome .............................................................................. 15

3.2.1 – Community Development Financial Institutions Program Budget and 

Performance Plan .......................................................................................................... 16

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan ................... 17

3.2.3 – Bank Enterprise Award Program Budget and Performance Plan ..................... 17

3.2.4 – Native Initiatives Budget and Performance Plan .............................................. 19

3.2.5 – Capital Magnet Fund Budget and Performance Plan ........................................ 20

3.2.6 – Administration Budget and Performance Plan ................................................. 21

3.2.7 – Healthy Food Financing Initiative Budget and Performance Plan ................... 23

3.2.8 – Bank on USA Budget and Performance Plan ................................................... 24

3.2.9 – Financial Education and Counseling Budget and Performance Plan ............... 24

3.2.10 – Hawii Financial Education and Counseling Budget and Performance Plan ... 25

Section 4 – Supporting Materials .................................................................................. 27

4.1 – Summary of IT Resources Table ......................................................................... 30

4B – Information Technology Strategy ........................................................................ 31

4.2 – Program Assessment Table .................................................................................. 32

CDFI - 2 
Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

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

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

services to underserved populations and communities in the United States. 

The CDFI Fund has established the following priorities to meet this mission: 

Priority 1: Administer all programs and initiatives effectively, efficiently, and in a 

timely manner. To improve all management processes through continuous assessment 

of the CDFI Fund’s policies and procedures. 

Priority 2: Enhance compliance monitoring capabilities. To enhance the CDFI 

Fund’s compliance monitoring capabilities to handle the increase in the number and types 

of awards resulting from new programs and funding. 

Priority 3: Conduct research, evaluation, and performance reporting. To 

implement an external program evaluation of the CDFI Program and NACA Program to 

assess the long-term impact of increased access to financial services for economically 

distressed communities and underserved populations. Additionally, the CDFI Fund plans 

to evaluate CMF and the BEA Program to inform future resource decisions. 

Priority 4: Initiate a significant information technology applications upgrade. To 

take steps to enhance the CDFI Fund’s information technology applications, including 

contracting with a shared service provider for a more cost effective approach to managing 

the increased application workload, compliance monitoring, and research reporting. 

Priority 5: Launch the Bank on USA Initiative. To promote access to 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. 

Priority 6: Implement the Healthy Food Financing Initiative. To increase 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. 

 

Priority 7: Relocate to a new headquarters. 

To find adequate office space and take the necessary steps to move the operations of the 

CDFI Fund in a rapid, seamless and cost-effective manner. 

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1B – Program History and Future Outlook 

For FY 2011, the CDFI Fund proposes to administer three core award programs and two 

new initiatives in support of its mission: the CDFI Program; the NACA Program; the 

NMTC Program; the Healthy Food Financing Initiative (a component of the CDFI 

Program); and the Bank on USA Initiative. In addition to administering these award 

programs and initiatives, the CDFI Fund will continue to certify organizations as CDFIs 

and CDEs, contract with third-party entities to provide training and technical assistance 

to CDFIs, and conduct strategic research and program evaluations. 

For the FY 2010 rounds of the CDFI and NACA programs (whose application deadlines 

have passed as of the date of this submittal), the CDFI Fund: 

• Received 408 CDFI Program applications requesting $467.4 million in assistance, 

a 97 percent increase from the $237.7 million requested through the original, preRecovery Act application solicitation of the FY 2009 round. 

• Received 61 NACA Program applications requesting $23.7 million in assistance, 

a 30 percent increase from the $18.3 million requested through the original, preRecovery Act application solicitation of the FY 2009 round. 

In the 2009 round of the NMTC Program, the CDFI Fund: 

• Received 249 applications requesting a total of $22.5 billion in investment 

authority. 

CDFI Industry

CDFIs play a unique role in their local markets that is distinct from traditional banks and 

the continued survival of CDFIs through the current downturn would provide essential 

financial services to these communities. As of July 2009, there were 784 certified CDFIs, 

representing $26.7 billion in assets. Of these institutions, there are 64 banks ($17.3 

billion in total assets) and 137 credit unions ($4.5 billion in assets), as well as 583 loan 

funds and venture capital funds ($4.9 billion in assets). 

CDFIs fill a gap in the market through their focus on low-to-moderate income (LMI) 

communities and are required through their certification by the CDFI Fund to allocate 60 

percent of their efforts in LMI communities. CDFIs serve communities that traditional 

banks often find unattractive, and many CDFIs provide non-conforming financial 

services and products at below-market pricing. In addition, some CDFIs use “missiondriven” deposit funding made by foundations and other socially motivated investors in 

CDFIs to finance their lending. Moreover, CDFIs maintain a significant focus on small 

business lending, and in the current economic environment, CDFIs are registering greater 

demand for loans as traditional lenders have curtailed lending activities in many LMI 

communities. Indeed, 61 percent of respondents to the CDFI Market Conditions Survey 

in the third quarter of 2009 reported an increase in applications over the previous year. 

By and large, CDFIs have survived the economic downturn, but they have been severely 

buffeted by rising unemployment in LMI communities which is well above national 

CDFI - 4 
averages, resulting in deteriorating CDFI loan portfolio performance. Nonetheless, in the 

third quarter 2009, non-performing loans averaged 5.4 percent as a percentage of total 

loans for all reporting CDFIs in the CDFI Market Conditions Survey versus 3.7 percent 

for traditional peer banks. It is in this context that communities served by CDFIs 

recognize that they may not see new entrants if existing CDFIs fail. 

Future Challenges

Changing Economic Environment:

In recent years, the community development finance industry has been significantly 

challenged by the current economic crisis; the need to provide financial services to 

people who do not currently have or have never had a formal relationship with the 

mainstream financial services industry (the “unbanked”); the hurricane devastation in the 

Gulf Coast; and the disinvestment of low-income communities as a result of rising 

foreclosure rates. Also, the challenges in the debt and equities markets have led to a 

significant contraction of capital support for many CDFIs. This contraction in capital 

support is coming at a time when many CDFIs are seeing an increased demand for their 

products as many of the traditional mainstream lenders are reducing their lending 

activities. 

The role of CDFIs have been given an important boost by the arrival of the new 

Administration, which views the CDFI industry as a key part of its strategy to address the 

economic challenges within distressed communities. The first major step was the 

passage of the American Recovery and Reinvestment Act (ARRA) that provided the 

CDFI Fund extra funding—$100 million beyond its annual appropriation for fiscal year 

2009—to enhance the lending capacity of CDFIs. The new legislation also contained an 

additional $3 billion of New Markets Tax Credit allocation authority that is being evenly 

divided between the 2008 and 2009 rounds of the program. 

The CDFI Fund implemented the Recovery Act funding with remarkable success. Just 

four and a half months after the enactment of the Recovery Act, the CDFI Fund 

announced financial assistance awards to 59 CDFIs and to 10 Native CDFIs. In just 60 

days following the award announcement, the CDFI Fund had disbursed 100 percent of 

the funds awarded to CDFIs through the Recovery Act. In addition, the CDFI Fund also 

re-opened the New Markets Tax Credit Program application round to award an additional 

$1.5 billion of Recovery Act allocation authority within 100 days of enactment, and 

closed all of the award agreements within 30 days of the award announcement. 

These ARRA awards and the 2010 and 2011 Budget requests are a part of the 

Administration’s efforts to invest directly in communities and support community 

institutions across the country that address a wide variety of economic development 

issues. These investments are generating capital for first-time homebuyer loans, 

providing investments in small businesses and microenterprises, and supporting the 

development of affordable housing and community facilities across the country. 

Additionally, many of the CDFIs that have received support are engaged in innovative 

CDFI - 5 
lending to support foreclosure prevention efforts, encouraging entrepreneurs to launch 

small businesses, expanding bilingual credit unions, and offering alternatives to payday 

and predatory lenders. 

Finally, award disbursements represent only one way that the CDFI Fund has been 

helping to address the economic crisis. Last fall, as the crisis deepened, the CDFI Fund 

formed a new Advisory Board Subcommittee to determine the impact of the crisis on the 

institutions that the CDFI Fund supports and to offer policy recommendations to increase 

our support. Many recommendations have already been implemented, including the 

launching a new Capacity-Building Initiative for CDFIs. 

Staffing: 

The CDFI Fund will implement and manage new and expanding award programs and 

initiatives in FY 2011. In order to accomplish successful implementation and 

management of these Administration priorities, the CDFI Fund has requested funding in 

FY 2011 to support additional staff and office space. To support the Healthy Food 

Financing Initiative, new subject matter experts with extensive knowledge in the 

financing of grocery stores and other healthy food retailers in underserved communities 

will be required. In addition, to support the Bank on USA initiative new subject matter 

experts with significant experience developing consumer credit products for households 

and consumer awareness will be required. 

CDFI - 6 
Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table (Dollars in Thousands) 

Community Development Financial Institutions Fund FTE Amount

FY 2010 Enacted 84 246,750

Changes to Base: 

Maintaining Current Levels (MCLs): - $289

FERS % Change - 22

Non-Pay Inflation Adjustment - 85

Pay Annualization - 54

Pay Inflation Adjustment - 128

Efficiencies Savings: - ($151)

Procurement Savings - (151)

Subtotal FY 2011 Changes to Base - $138

Total FY 2011 Base 84 246,888

Program Changes: 

Program Decreases: - ($109,150)

Bank Enterprise Award Program - (25,000)

Capital Magnet Fund - (80,000)

Financial Education and Counseling - (1,000)

Hawaii Financial Ed and Counseling - (3,150)

Program Increases: 6 $112,262

Bank on USA - 50,000

Healthy Food Financing Initiative - 25,000

CDFI Program - 32,400

Administration 6 4,862

New Markets Tax Credit Program - Inc.

Subtotal FY 2011 Program Changes 6 $3,112

Total FY 2011 Budget Request 90 250,000

2A – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .............................................. +$289,000 / +0 FTE 

Non-Pay Inflation Adjustment +$85,000 / +0 FTE 

Funds are requested for non-pay related items such as contracts, travel, supplies, 

equipment, and GSA rent. 

Pay Annualization +$54,000 / +0 FTE 

Funds are requested for the FY 2011 cost of the January 2010 pay raise. 

Pay Inflation Adjustment +$128,000 / +0 FTE 

Funds are requested for the January 2011 pay raise. 

FERS Percent Change +$22,000 / +0 FTE

Funds are requested for the increase in agency retirement contribution percentages for GS 

employees from 11.2 percent to 11.5 percent for FY 2011 as required by OPM. 

Efficiencies Savings ............................................................................ -$151,000 / +0 FTE 

Procurement Savings -$151,000 / 0 FTE

Reducing non-competitive actions and implementing the use of social-economic 

programs such as 8(a) and small business set-asides can achieve procurement savings. 

Other methods to achieve savings will be proper acquisition planning, strategic sourcing 

CDFI - 7 
(use of agency and government-wide contract vehicles) in order to obtain better pricing 

for commonly acquired goods and services. 

Program Increases ....................................................$112,262,000 / +6 FTE 

CDFI Program +$32,400,000 / +0 FTE

The FY 2011 Budget seeks to increase funding to support the greater demand for CDFI 

Program resources. In FY 2010, the CDFI Fund received 408 applications requesting 

$467.4 million in assistance, a 97 percent increase from the $237.7 million requested 

through the original, pre-Recovery Act application solicitation of the FY 2009 round. In 

FY 2009, the CDFI Fund awarded $143 million through its financial assistance program 

to 121 certified CDFIs. An analysis of the CDFI Fund's application pool found that there 

were still 216 highly qualified and unfunded applicants for financial assistance grants that 

requested $328,510,806. CDFIs use these awards to increase their overall capacity, and 

their ability to offer loans, investments and other financial services in underserved 

communities. Awards are used by CDFIs to, among other things, increase their net 

assets, create loan loss reserves, and offer subordinated debt products. As a result, CDFIs 

are able to significantly leverage CDFI Program awards. This translates into significantly 

more lending in support of small businesses and microenterprises, first time homeowners, 

and the development and rehabilitation of low-income housing and community facilities, 

such as charter schools and day care centers. 

Through the CDFI Program, the CDFI Fund will continue the Capacity-Building 

Initiative launched in FY 2009 that will make new, specialized technical assistance and 

training available to CDFIs nationwide, enabling them to expand their lending activities 

and to spur economic growth in the communities they serve. Training will cover key 

issues currently affecting CDFIs and the communities they serve, including affordable 

housing and business lending, portfolio management, risk assessment, foreclosure 

prevention, financing of healthy food options, training in CDFI business processes, and 

assistance with liquidity and capitalization challenges. The Capacity-Building Initiative 

will also offer direct on-site technical assistance and individualized capacity-building 

plans in addition to focusing on extending CDFI coverage to underserved communities – 

including a specialized focus in rural areas. 

Healthy Food Financing Initiative +$25,000,000 / +0 FTE

The 2011 Budget provides funding for a new multi-year Healthy Food Financing 

Initiative (HFFI) that will increase 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. To support this initiative, the 

Departments of Agriculture, Health and Human Services, and Treasury have partnered to 

make available over $400 million in financial and technical assistance to community 

development financial institutions, other nonprofits, public agencies, and businesses with 

sound strategies for addressing the healthy food needs of communities. These 

organizations will use federal grants, below-market rate loans, loan guarantees and tax 

credits to attract private sector capital for an even greater investment in projects that 

increase access to fresh produce and other healthy foods. The goal is to substantially 

reduce the number of food deserts in our nation over the next several years. 

CDFI - 8 
Food deserts are communities in which residents do not have access to affordable and 

healthy food options. Instead of supermarkets and grocery stores, these communities are 

typically served by fast food restaurants and convenience stores that offer little if any 

healthy options. This lack of access contributes to a poor diet and can lead to higher 

levels of obesity and other diet-related diseases, such as diabetes and heart disease. Most 

often, these communities are economically distressed and less attractive, under 

conventional financing, to retailers of healthy food. But effective local programs have 

shown that well-targeted financing and technical assistance can create viable business 

outcomes and access to healthier food options. Targeting federal financial assistance to 

these areas will not only increase the supply of healthy foods and create new markets for 

farmers, but also create jobs and support broader development efforts to revitalize 

distressed communities. 

CDFIs are specialized financing institutions that have developed innovative and 

successful models to respond to a variety of needs in underserved communities, including 

demand for healthier food options. Grants and technical assistance to CDFIs will spur 

private sector investment, which will increase affordable financing for grocery store 

development; supplies and equipment to improve food production technology; 

improvements and modernization of food distribution mechanisms and infrastructure; and 

the development of outreach and training programs to bring healthy food options to even 

more communities. 

Bank on USA Initiative +$50,000,000 / +0 FTE

The Bank on USA Initiative will promote access to 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. Additionally, many of 

these households lack access to reasonably-priced short-term consumer credit to meet 

emergency or regular needs, and often turn to payday loans, refund anticipation loans, 

pawn shops and other generally high-priced alternatives. 

The Bank on USA Initiative would have several distinct components, including: 

1. A grant program to seed local initiatives to bank the unbanked and provide 

appropriate financial products and services to unbanked and underbanked lowand moderate-income people; 

2. Outreach and technical assistance, including the development of outreach and 

partnerships, education tools, and the maintenance of a web-based toolkit for 

practitioners, to states, localities and other entities engaged in efforts to achieve 

these goals; 

3. Research and development on expanding access to bank accounts, including the 

development of model low-cost, simple banking products, as well as the 

development of model implementation and outreach strategies, which will include 

the integration of financial access and financial education; 

CDFI - 9 
4. Outreach to a broad array of financial institutions including national and 

community banks and credit unions, including but reaching well beyond CDFIs, 

to encourage adoption of model products and services; 

5. An awareness campaign at the national and local levels aimed at the unbanked; 

6. The facilitation of partnerships between local and national stakeholders, including 

partnerships between federal agencies, state and local governments, financial 

institutions, and non-profit organizations to improve coordination and 

effectiveness of efforts to bank the underbanked and unbanked. 

Administration +$4,862,000 / +6 FTE

Resources will be realigned to cover additional administrative support costs for IT 

enhancements, analyze the outcomes and impact of the CDFI Fund’s programs, and to 

stand up and administer two high-priority initiatives—the Bank on USA Initiative (+4 

FTE) and the Healthy Food Financing Initiative (+2 FTE). The CDFI Fund will set aside 

funds to cover costs associated with the projected move from its current location, due to 

the lease expiration in early 2012, and to monitor a growing portfolio of awards. 

Additionally, resources will be utilized to administer and oversee a rapidly growing 

number of NMTC allocations and CDEs, in addition to assessing how changing 

economic conditions have affected the investment environment for NMTCs. 

Program Decreases.......................................................-$109,150,000/ -0 FTE 

Capital Magnet Fund -$80,000,000 / -0 FTE

The CDFI Fund is proposing not to fund the CMF in FY 2011. Treasury will undertake a 

careful review of the impact of FY 2010 funding, and future resource decisions will be 

informed by this analysis. 

Bank Enterprise Award Program -$25,000,000 / -0 FTE

The CDFI Fund is proposing not to fund the BEA Program in FY 2011. Instead, the Fund 

will evaluate the enhancements made to the program in FY 2009 and FY 2010 and apply 

this analysis to future funding and programmatic decisions. 

Financial Education and Counseling - $1,000,000 / -0 FTE

The CDFI Fund is proposing not to fund the Financial Education and Counseling Pilot 

Program in FY 2011. The Bank on USA initiative will employ an educational campaign 

to improve the financial awareness of the underbanked and unbanked. 

Hawaii Financial Education and Counseling - $3,150,000 / -0 FTE

The CDFI Fund is proposing not to fund the Hawaii Financial Education and Counseling 

Program is FY 2011. The Bank on USA initiative will employ an educational campaign 

to improve the financial awareness of the underbanked and unbanked. 

CDFI - 10 
2.2 – Operating Levels Table

(Dollars in Thousands) 

Community Development 

Financial Institutions Fund

FY 2009 

ARRA

FY 2009 

Enacted

FY 2010 

President's 

Budget

Congressio

nal Action

Including 

Rescission

FY 2010 

Enacted 

Level

Proposed 

Reprogra

mmings

FY 2010 

Proposed 

Operating 

Level

FY 2011 

Requested 

Level

 

FTE 0 75 84 0 0 0 0 90

Object Classification: 

11.1 - Full-time permanent 1,324 6,230 8,223 8,223 0 8,223 8,424

12 - Personnel benefits 326 1,619 2,060 2,060 0 2,060 2,060

21 - Travel and transportation of 0 114 119 119 0 119 119

persons 

22 - Transportation of things 0 20 20 20 0 20 20

23.1 - Rental payments to GSA 0 1,447 1,553 1,553 0 1,553 1,553

23.2 - Rental payments to others 0 189 190 190 0 190 190

23.3 - Comm, utilities, and misc 0 332 368 0 368 0 368 368

charges 

24 - Printing and reproduction 0 20 20 0 20 0 20 20

25.1 - Advisory and assistance 350 2,522 1,023 1,023 0 1,023 4,323

services 

25.2 - Other services 0 630 1,035 1,035 0 1,035 3,334

25.3 - Other purchases of goods 0 911 867 867 0 867 867

and services from Govt. accounts 

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

contracts 

26 – Supplies and materials 0 111 111 111 0 111 111

31 – Equipment 0 75 111 0 111 0 111 111

33 - Investments and loans 0 530 800 0 800 0 800 0

41 - Grants, subsidies, and 98,000 92,250 225600 3,150 228,750 0 228,750 227,000

contributions 

Total Budget Authority 100,000 $107,000 $243,600 $3,150 $246,750 $0 $246,750 $250,000

 

Budget Activities: 

Community Development 90,000 59,750 113,600 -6,000 107,600 0 107,600 140,000

Financial Institutions Program 

Bank Enterprise Award Program 0 22,000 22,000 3,000 25,000 0 25,000 0

Native Initiatives 8,000 8,500 10,000 2,000 12,000 0 12,000 12,000

Capital Magnet Fund 81,300 -1,300 80,000 80,000 

Administration 1,933 10,550 12,497 1,300 13,797 0 13,797 23,000

New Markets Tax Credit Program 67 4,200 4,203 0 4,203 0 4,203 Inc.

Financial Education and 0 2,000 0 1,000 1,000 0 1,000 0

Counseling 

Hawaii Financial Ed and 3,150 3,150 3,150

Counseling 

Bank on USA Initiative 0 0 0 0 0 0 0 50,

Healthy Food Financing Initiative 0 0 0 0 0 0 0 25,

Total Budget Authority $100,000 $107,000 $243,600 $3,150 $246,750 $0 $246,750 $250,000

 

000

000

CDFI - 11 
2.3 – Appropriations Detail 

(Dollars in Thousands) 

 

FY 2009 

Enacted 

FY 2009 

ARRA Enacted

FY 2010 

Enacted 

FY 2011 

Request 

% Change FY 

2010 

to FY 2011 Resources Available for Obligation 

 FTE Amount FTE Amount FTE Amount FTE Amount FTE Amount

New Appropriated Resources: 

Community Development 

Financial Institutions Program $59,750 $90,000 $107,600 $140,000 30.01%

Bank Enterprise Award $22,000 $25,000 $0 -100.00%

Native Initiatives $8,500 $8,000 $12,000 $12,000 0.00%

Capital Magnet Fund $80,000 $0 -100.00%

Administration 60 $10,550 $1,933 69 $13,797 90 $23,000 27.78%

New Markets Tax Credit Program 15 $4,200 $67 15 $4,203 Inc. 0.00%

Financial Education/Counseling $2,000 $1,000 $0 -100.00%

Hawaii Financial Ed and 

Counseling $3,150 $0 -100.00%

Healthy Food Financing Initiative $25,000 100.00%

Bank on USA $50,000 100.00%

Subtotal New Appropriated 

Resources 60 $107,000 $100,000 84 $246,750 90 $250,000 7.14% 1.32%

 

Other Resources: 

Recoveries 500 0 500 0 N/A

Unobligated Balance 986 0 500 0 N/A 

Offsetting Collections 500 0 500 899 N/A 

Available multi-year/no-year funds 402 0 402 0 N/A 

Subtotal Other Resources 0 $2,388 0 $1,902 0 $899 

Total Resources Available for 

Obligation 60 $109,388 $100,000 84 $248,652 90 $250,899 7.14% 0.90%

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2B – Appropriations Language and Explanation of Changes 

DEPARTMENT OF THE TREASURY 

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 

FUND 

To carry out the Community Development Banking and Financial 

Institutions Act of 1994 (Public Law 103-325), including services 

authorized by 5 U.S.C. 3109, but at rates for individuals not to 

exceed the per diem rate equivalent to the rate for ES-3, 

[notwithstanding sections 4707(d) and 4707(e) of title 12, United 

States Code, $166,750,000] $250,000,000, to remain available until 

September 30, [2011] 2012; of which $12,000,000 shall be for 

financial assistance, technical assistance, training and outreach 

programs, under sections 105 through 109 of the Community 

Development Banking and Financial Institutions Act of 1994 (12 

U.S.C. 4704-4708), 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 

[$1,000,000 shall be available for the pilot project grant program 

under section 1132(d) of division A of the Housing and Economic 

Recovery Act of 2008 (Public Law 110-289); of which $3,150,000 

shall be for an additional pilot project grant to an eligible 

organization located in the State of Hawaii for financial education 

and pre-home ownership counseling as authorized in section 

1132(d) of division A of the Housing and Economic Recovery Act 

of 2008 (Public Law 110-289), and], notwithstanding section 

4707(d), up to $25,000,000 shall be for a Healthy Food Financing 

Initiative to provide grants and loans 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 [up to $18,000,000 

may] $50,000,000 shall be for financial assistance, technical 

assistance, training and outreach programs to community 

development financial institutions, other financial service 

organizations, non-profit organizations, states, and local 

governments, and partnerships of such entities (or a financial service 

organization designated as a fiscal agent on behalf of such entity) for 

the purpose of seeding local initiatives to establish bank accounts for 

low and moderate-income persons who do not have bank accounts 

with financial institutions, and providing appropriate financial 

products and services to underbanked persons, and for the purpose 

of encouraging such persons to enter into formal banking 

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relationships and access financial services and development 

services, and to evaluate the results of such efforts; of which up to 

$23,000,000 may be used for administrative expenses, including 

administration of the New Markets Tax Credit; of which up to 

$10,200,000 may be used for the cost of direct loans; and of which 

up to $250,000 may be used for administrative expenses to carry out 

the direct loan program: Provided, That the cost of direct loans, 

including the cost of modifying such loans, shall be as defined in 

section 502 of the Congressional Budget Act of 1974: Provided 

further, That these funds are available to subsidize gross obligations 

for the principal amount of direct loans not to exceed $25,000,000. 

[For an additional amount to be transferred to the ``Capital Magnet 

Fund'', as authorized by section 1339 of the Federal Housing 

Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 

1301 et seq.), as amended by section 1131 of the Housing and 

Economic Recovery Act of 2008 (Public Law 110-289), to support 

financing for affordable housing and economic development 

projects, $80,000,000, to remain available until September 30, 2011: 

Provided, That, for fiscal year 2010, section 1339(h)(3) of the 

Federal Housing Enterprises Financial Safety and Soundness Act of 

1992, as amended by section 1131 of the Housing and Economic 

Recovery Act of 2008 (Public Law 110-289), shall be applied by 

substituting the term ``at least 10 times the grant amount or such 

other amount that the Secretary may require'' for ``at least 10 times 

the grant amount''.] (Department of the Treasury Appropriations 

Act, 2010.) 

CDFI - 14 
Section 3 – Budget and Performance Plan

This table lists all FY 2011 resources by strategic goal, objective and outcome outlined in 

the FY 2007-2012 Department of the Treasury Strategic Plan, which is a corporate level 

plan for The Treasury Department that provides a description of what the agency intends 

to accomplish over the next five years. 

For detailed information about the FY 2007-2012 Department of the Treasury Strategic 

Plan, please go to: http://www.treas.gov/offices/management/budget/strategic-plan/

3.1 – Budget by Strategic Outcome 

(Dollars in Thousands) 

FY 2010 

Enacted

FY 2011 

Request Treasury Strategic Outcome Percent Change

 Economic competitiveness 246,750 250,000 1.32%

Total $246,750 $250,000 1.32%

3A – Community Development Financial Institutions Program ($140,000,000 from 

direct appropriations): Through the CDFI Program, the CDFI Fund provides Financial 

Assistance (FA) in the form of grants, loans, and equity investments to CDFIs, and 

Technical Assistance (TA) grants to CDFIs and entities that plan to become CDFIs. 

 

• FA awards are in the form of grants, loans, and equity investments to CDFIs that 

have comprehensive business plans for creating community development impact and 

that demonstrate the ability to leverage private sector sources of capital. 

• TA awards are for CDFIs and entities proposing to become CDFIs in order to build 

their capacity to advance community development and meet capital access needs in 

their target markets. TA awards can also be accessed by larger and more established 

CDFIs to support their continued development. 

In February 2009, the CDFI Program received $90 million in funds through the American 

Recovery and Reinvestment Act (the Recovery Act). In order to disburse the funding as 

quickly and efficiently as possible into the national economy, the CDFI Fund used the 

Recovery Act funding for awards made through the initial funding round. Applicants that 

did not receive an award in the initial funding round were also considered for an award 

during the supplemental funding round (using FY 2009 appropriated dollars), as 

described above. The Recovery Act waived the matching funds requirement, as well as 

the $5 million limit on awards that an awardee can receive in a three-year period. 

In the initial funding round (using Recovery Act dollars), the CDFI Program considered 

125 applicants requesting a total of $229.7 million. Fifty-nine awards were made totaling 

$90 million, with individual awards ranging from $500,000 to $2 million. (Please see 

Table 1 for details.) Awards were announced on June 29, 2009, and funds were fully 

disbursed within 60 days. 

CDFI - 15 
In FY 2010, the CDFI Program received 408 applications requesting an estimated $467 

million. 

3.2.1 – Community Development Financial Institutions Program Budget and 

Performance Plan 

(Dollars in Thousands) 

Community Development Financial Institutions Program Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $31,881 $52,886 $90,000 $59,750 $107,600 $140,000

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

Total Resources $31,881 $52,886 $90,000 $59,750 $107,600 $140,000

Budget Activity Total $31,881 $52,886 $90,000 $59,750 $107,600 $140,000

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Administrative costs per Financial Assistance 7,180 7,200 6,920 3,283 N/A DISC DISC

(FA) application processed (E) 

 Administrative cycle time from the date when N/A N/A N/A N/A N/A 8 8

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A 2 2

announcement to date of disbursement in 

months (E) 

Dollars of private and non-CDFI Fund 778 621 635 1,298 N/A 600* 700*

investments that CDFIs are able to leverage 

because of their CDFI Fund Financial 

Assistance ($ millions) (Oe) 

Number of full-time equivalent jobs created or 35,022 29,539 30,000 70,260 4,700# 85,000 85,000

maintained in underserved communities by 

businesses financed by CDFI Program 

Awardees (Oe) 

Key: Oe – Outcome Measure, E – Efficiency Measure, Ot - Output/Workload Measure, DISC - discontinued. *Note that the 

matching funds requirement was waved by Congress for FY 2009 and FY 2010 due to the economic crisis. In addition, the 

performance data for FY2010 and 2011 will be based on the prior year activity (2009 and 2010 respectively) and the targets are 

set at half the level indicated by trends prior to the financial crisis. # Note that the FTE job target for ARRA funds per OMB 

guidance must exclude leveraged funds and must only report the proportional contribution of CDFIs lending on job creation. 

Reports of FTE job creation for other years represent the full effects of leveraged funds and project leverage for the CDFIs loan 

portfolio. 

Description of Performance: In FY 2009, CDFIs reported leveraging from private 

investment in the prior year nearly $1.3 billion (based on reporting from program year 

2008 results), which was more than double the target of $635 million; this success was 

largely due to increased program funding which was met by private sector commitments 

before the full onset of the financial crisis. As a result, CDFIs helped provide funds for 

projects that created or maintained 70,260 jobs, which exceeded the target of 30,000 jobs. 

3B – New Markets Tax Credit Program (included under Administration 

appropriations): The NMTC Program spurs the investment of new private sector capital 

into low-income areas through CDEs, which in turn use the privately managed 

investment vehicles to make loans and equity investments in businesses and real estate 

projects in low-income communities. 

CDFI - 16 
By making an equity investment in a CDE, individual and corporate investors can receive 

a tax credit against their federal income taxes worth 39 percent of the value of the amount 

invested in the CDE over seven years. 

In FY 2009, NMTC Program received 249 applications requesting a total of $22.5 billion 

in investment authority through the NMTC Program. 

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan 

(Dollars in Thousands) 

New Markets Tax Credit Program Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $4,258 $4,120 $67 $4,200 $4,203 Inc.

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

Total Resources $4,258 $4,120 $67 $4,200 $4,203 Inc. 

Budget Activity Total $4,258 $4,120 $67 $4,200 $4,203 $5,200

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Administrative costs per number of New 5,320 7,400 4,875 3,254 N/A DISC DISC 

Markets Tax Credit (NMTC) applications 

processed ($) (E) 

 Administrative cycle time from the date when N/A N/A N/A N/A N/A 6 6 

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A 2 2 

announcement to date of disbursement in 

months (E) 

Community Development Entities' (CDEs) 2.5 3.3 2.5 3.6 N/A 2.5 2.5

annual investments in low-income communities 

($ billions) (Oe) 

Number of full-time equivalent jobs projected N/A N/A N/A N/A N/A B 60,000

to be created or maintained in underserved 

communities. 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, B - baseline, and DISC - Discontinued 

Description of Performance: In FY 2009, the NMTC Program competitively awarded 

$6.5 billion in NMTC allocation authority to CDEs, including both Recovery Act rounds, 

which provided tax credit allocation authority to Community Development Entities 

(CDEs) for targeted investments in low-income communities. As reported in FY 2009 

(based on reporting from program year 2008 results), cumulative investments in lowincome communities by CDEs rose to $12.5 billion (exceeding the performance target by 

$1.1 billion), and an annual increase of $3.6 billion over the prior year (exceeding the 

annual target by $1.1 billion). 

3C – Bank Enterprise Award Program ($0 from direct appropriations): The CDFI 

Fund is proposing not to fund the BEA Program in FY 2011.

CDFI - 17 
3.2.3 – Bank Enterprise Award Program Budget and Performance Plan 

(Dollars in Thousands) 

Bank Enterprise Award Program Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $12,551 $19,981 $0 $22,000 $25,000 $0

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

Total Resources $12,551 $19,981 $0 $22,000 $25,000 $0

Budget Activity Total $12,551 $19,981 $0 $22,000 $25,000 $0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Administrative costs per number of Bank 1,950 3,070 1,455 2,366 N/A DISC N/A 

Enterprise Award (BEA) Applications 

processed ($) (E) 

 Administrative cycle time from the date when N/A N/A N/A N/A N/A 6 N/A

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A 2 N/A

announcement to date of disbursement in 

months (E) 

Commercial real estate properties financed by 301 287 285 500 N/A DISC N/A

BEA Program applicants that provide access 

to essential community products and services 

in underserved communities (Oe) 

Increase in community development activities 227 232 202 292 N/A 210 N/A

over prior year for all BEA Program 

applicants ($ million) (Oe) 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and DISC - Discontinued 

Description of Performance: The CDFI Fund received 58 applications requesting a total 

of $57 million in FY 2009, compared to 60 applications requesting approximately $47 

million in FY 2008. The CDFI Fund selected 55 FDIC-insured institutions to receive 

approximately $22 million in awards. The FY 2009 applicants are headquartered in 25 

states and the District of Columbia, compared to the 19 states represented in the prior 

year. 

FY 2009 applicants provided $310.6 million in qualified loans or investments in 

distressed communities, $173.7 million in qualified loans, deposits and technical 

assistance to CDFIs, and $53.2 million in qualified financial services in distressed 

communities. 

FY 2009 BEA awardees increased their qualified community development activities by 

$292.3 million over the prior year: 

• $214.2 million increase in loans and investments in distressed communities; 

• $74.6 million increase in loans, deposits, and TA to CDFIs; and 

• $3.5 million increase in financial services and deposit in distressed communities. 

BEA awards are made based on an increase in the applicant’s community development 

financing activity from one year to the next. The increase in lending in distressed 

communities reported in the FY 2009 funding round is significantly higher than FY 

CDFI - 18 
2008’s increase in similar activities. This is partly attributable to the increase in the 

percentage of CDFI bank awardees as compared to FY 2008. The FY 2009 funding 

round also saw an increase in financing provided to CDFIs over FY 2008 application 

levels. 

In FY 2009, the CDFI Fund issued a revised interim rule for the BEA Program that 

required BEA Program awardees to use BEA award proceeds for certain qualified 

community development financing purposes (in addition to having demonstrated the 

increase in prior year community development activity). 

3D – Native Initiatives ($12,000,000 from direct appropriations): The Native Initiatives 

are intended to assist entities in overcoming barriers that prevent access to credit, capital 

and financial services in Native American, Alaskan Native, and Native Hawaiian 

communities. Native Initiatives’ central program is the NACA Program, which increases 

the number and capacity of existing or new CDFIs serving Native Communities. In 

addition, the Native Initiatives provide training to help strengthen and develop Native 

CDFIs. 

In February 2009, the CDFI Fund received $8 million in appropriations under the 

Recovery Act for the NACA Program. In order to disburse the funding as quickly and 

efficiently as possible into the national economy, Recovery Act funding was used for 

awards made through the initial funding round. 

The Recovery Act waived the matching funds requirement as well as the $5 million limit 

an awardee can receive in a 3-year period. During FY 2009, the NACA Program 

considered 10 applicants requesting $8 million for Recovery Act funding. Awards were 

made to all the awardees for $8 million with awards capped at $730,000. Awards were 

made for FA as well as TA. Awards were announced on July 1 and fully disbursed within 

60 days. 

In FY 2010, the NACA Program received 61 applications requesting an estimated $23.7 

million. 

3.2.4 – Native Initiatives Budget and Performance Plan 

(Dollars in Thousands) 

Native Initiatives Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $5,816 $7,327 $8,000 $8,500 $12,000 $12,000

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

Total Resources $5,816 $7,327 $8,000 $8,500 $12,000 $12,000

Budget Activity Total $5,816 $7,327 $8,000 $8,500 $12,000 $12,000

CDFI - 19 
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Administrative costs per number of Native 13,510 10,990 9,090 3,162 N/A DISC DISC 

American CDFI Assistance (NACA) 

applications processed ($)(E) 

Administrative cycle time from the date when N/A N/A N/A N/A N/A 6 6 

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A 2 2 

announcement to date of disbursement in 

months (E) 

Annual percentage increase in the total assets of 19 19 15 23 N/A 15 19

Native CDFIs (%) (Oe) 

 Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and DISC - Discontinued 

Description of Performance: In FY 2009, the Native Initiatives, which provides financial 

assistance, technical assistance, and training to Native CDFIs and other Native entities 

seeking to become or create Native CDFIs, registered a 23 percent increase in the total 

assets of Native CDFIs in the program year. 

3E – Capital Magnet Fund ($0 from direct appropriations): The CMF, authorized by 

the Housing and Economic Recovery Act of 2008, is a program administered by the 

CDFI Fund for the purpose of increasing capital investment for the development, 

preservation, rehabilitation, or purchase of affordable housing for low-, very low-, and 

extremely low-income families, and related economic development activities. As 

initially conceived, the CMF was to be capitalized through proceeds from Fannie Mae 

and Freddie Mac, projected by the Congressional Budget Office to exceed $156.1 million 

in FY 2011. The CDFI Fund is proposing not to fund the CMF in FY 2011 but will 

monitor the FY 2010 award disbursements and evaluate the community development 

impact. 

3.2.5 – Capital Magnet Fund Budget and Performance Plan 

(Dollars in Thousands) 

Capital Magnet Fund Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $0 $0 $0 $0 $80,000 $0

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

Total Resources $0 $0 $0 $0 $80,000 $0

Budget Activity Total $0 $0 $0 $0 $80,000 $0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Number of affordable housing units developed N/A N/A N/A N/A N/A Baseline N/A or produced (Oe) 

Number of jobs produced (e.g., construction 

jobs at the housing development) (Oe) N/A N/A N/A N/A N/A Baseline N/A 

Leverage ratio (outside dollars raised to CMF 

grant) (Oe) N/A N/A N/A N/A N/A Baseline N/A 

Deployment rate (time from receipt of grant to 

obligation of funds) (E) N/A N/A N/A N/A N/A Baseline N/A 

 Key: Oe - Outcome Measure, E - Efficiency Measure, and Ot - Output/Workload Measure 

CDFI - 20 
Description of Performance: The CDFI Fund will use its existing CDFI program metrics, 

with some customization, to measure performance of the Capital Magnet Fund. 

Awardees will be required to report annually for five years using the existing electronic 

reporting system at the CDFI Fund. Proposed metrics include: 

• Number of affordable housing units developed or produced 

o Number/percentage of low-income renters/owners 

o Number/percentage of very low-income renters/owners 

• Number of jobs produced (e.g., construction jobs at the housing development) 

• Leverage ratio (outside dollars raised to CMF grant) 

• Deployment rate (time from receipt of grant to obligation of funds) 

3F – Administration ($23,000,000 from direct appropriations): This budget activity 

encompasses the CDFI Fund’s operational support and management activities for each of 

its award programs. This includes finalizing the terms of assistance agreements with 

awardees, making disbursements, and monitoring awardee compliance with the terms of 

assistance and allocation agreements. 

The CDFI Fund will continue to enhance compliance monitoring of all awardees in each 

CDFI Fund program in FY 2011. The CDFI Fund has developed IT systems that allow 

awardees to report information to the CDFI Fund through on-line reporting tools, as well 

as IT systems that monitor the report submissions against the awardee’s assistance 

agreement to flag any incidence of non-compliance. CDFI Fund staff also engage in 

compliance site visits to further review the activities and record-keeping of CDFIs and 

CDEs. 

Through strategic research, the CDFI Fund will analyze the impact and outcome of its 

programs as well and determine how changing economic conditions have affected the 

operating environment and altered the supply and demand for capital and financial 

services in underserved and economically distressed communities. 

In FY 2011, the CDFI Fund will continue its efforts to improve business processes and 

realize efficiency gains in program administration, completing the transition to the shared 

service provider model in its financial management and IT support functions begun in FY 

2009. 

Since the CDFI Fund’s inception in 1994, the business processes and types of programs 

have evolved and undergone changes and modifications. The corresponding changes in 

the IT systems and applications used to manage the awards process, however, have not 

been made based on a unified architecture and/or a common technology platform. 

Instead, the IT system has been under recurrent modifications subject to stove-piped 

designs and varying business requirements. The management information system needs 

to be replaced with a more efficient, reliable, scalable, and cost effective system that fully 

integrates all phases of the information system lifecycle. 

CDFI - 21 
The CDFI Fund’s responsibilities are expanding as new award programs are entrusted to 

it for management and oversight—increasing the need for a reliable, efficient, and 

scalable awards management information system. The current IT systems applications 

are not flexible or scalable enough to fully support additional projects. The CDFI Fund 

will explore ways to improve IT systems, including contracting with a shared service 

provider that can support CDFI Fund’s grants management current and future needs more 

efficiently. 

The Administration budget activity also includes resources to implement an external 

program evaluation of the CDFI Program and NACA Program to assess the long-term 

impact of increased access to financial services for economically distressed communities 

and underserved populations. In addition, the CDFI Fund must find adequate office 

space and take the necessary steps to move the operations of the headquarters of the 

CDFI Fund in a rapid seamless and cost-effective manner. The estimated cost to relocate 

is approximately $2 million. 

3.2.6 – Administration Budget and Performance Plan 

(Dollars in Thousands) 

Administration Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $9,410 $8,997 $1,933 $10,550 $13,797 $17,800

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

Total Resources $9,410 $8,997 $1,933 $10,550 $13,797 $17,800

Budget Activity Total $9,410 $8,997 $1,933 $10,550 $13,797 $17,800

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

 

Please see programmatic budget activity 

performance tables for administrative cost and 

cycle time measures 

 Key: Oe - Outcome Measure, E - Efficiency Measure, and Ot - Output/Workload Measure 

Description of Performance: 

The CDFI Fund has made significant progress enhancing program administrative 

business processes, enabling quicker award disbursements. A new “administrative 

productivity measure” will be implemented beginning in FY 2010. This measure will 

replace the old “administrative efficiency” measure, which was intrinsically difficult to 

compute because it required allocating a share of organizational overhead to each 

program. The new program-level measure has two components: 

• Cycle time from the date when applications are received to the date of award 

announcement; and 

• Time from date of award announcement to date of disbursement. 

These new administrative measures will be developed for each program administered by 

the CDFI Fund. These measures were first tested in deploying the CDFI Fund’s 

Recovery Act programs. In FY 2009, the CDFI Fund, exactly two months after awards 

CDFI - 22 
were announced for community development grants through the Recovery Act, 

completely disbursed all $98 million to 59 CDFIs and 10 Native CDFIs. In addition, The 

CDFI Fund entered into allocation agreements with CDEs for $1.5 billion in Recovery 

Act Tax Credit Authority within 60 days of providing them with a Notice of Award. 

In fiscal year 2009, the following performance measures capture the administration 

efficiency of the CDFI Fund. 

• CDFI Program administrative cost per financial assistance application processed 

was $3,283, less than half of the target of $6,920, largely due to improved cost 

accounting for the actual direct and imputed costs for processing applications and 

the higher volume of applications due to Recovery Act awards. 

• Native American CDFI Assistance Program administrative cost per financial 

assistance application processed was $3,162, substantially below the target of 

$9,090, due largely to improved cost accounting for application processing and a 

higher volume of applications associated with Recovery Act awards. 

• New Market Tax Credit Program administrative costs per application were 

$3,254, substantially below the target of $4,875. The improvement was largely 

due to improved cost accounting for application processing and a higher volume 

of applications as a result of Recovery Act awards. 

• The Bank Enterprise Award Program administrative cost per application 

processed was $2,366, 61 percent higher than the target of $1,455, but 

significantly below the 2008 cost of $3,070. Higher costs were largely due to the 

procurement of additional services to assist in processing high volumes of 

applications. 

3G – Healthy Food Financing Initiative ($25,000,000 from direct appropriations): A 

component of the CDFI Program, HFFI will expand the financing of healthy food 

alternatives in low-income neighborhoods. 

3.2.7 Healthy Food Financing Initiative Budget and Performance Plan

(Dollars in Thousands) 

Healthy Food Financing Initiative Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $0 $0 $0 $0 $0 $25,000

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

Total Resources $0 $0 $0 $0 $0 $25,000

Budget Activity Total $0 $0 $0 $0 $0 $25,000

 

CDFI - 23 
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Administrative cycle time from the date when N/A N/A N/A N/A N/A N/A 6 

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A N/A 2 

announcement to date of disbursement in 

months (E) 

Additional performances measures are currently under development 

 Key: Oe - Outcome Measure, E - Efficiency Measure, and Ot - Output/Workload Measure 

Description of Performance: Performance measures will be developed during FY 2010 

and implemented in FY 2011. 

3H – Bank on USA Initiative ($50,000,000 from direct appropriations): To promote 

access to 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. 

3.2.8 - Bank on USA Initiative Budget and Performance Plan 

(Dollars in Thousands) 

Bank on USA Initiative Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $0 $0 $0 $0 $0 $50,000

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

Total Resources $0 $0 $0 $0 $0 $50,000

Budget Activity Total $0 $0 $0 $0 $0 $50,000

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Administrative cycle time from the date when N/A N/A N/A N/A N/A N/A 6 

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A N/A 2 

announcement to date of disbursement in 

months (E) 

Additional performances measures are currently under development 

Key: Oe - Outcome Measure, E - Efficiency Measure, and Ot - Output/Workload Measure 

Description of Performance: Performance measures will be developed during FY 2010 

and implemented in FY 2011. 

3 I – Financial Education and Counseling ($0 from direct appropriations): The CDFI 

Fund is not proposing to fund the Financial Education and Counseling Pilot Program in 

FY 2011. The Bank on USA initiative will employ an educational campaign to improve 

the financial awareness of the underbanked and unbanked. 

CDFI - 24 
3.2.9 – Financial Education and Counseling Budget and Performance Plan 

(Dollars in Thousands) 

Financial Education and Counseling Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $0 $0 $0 $0 $1,000 $0

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

Total Resources $0 $0 $0 $0 $0 $10,000

Budget Activity Total $0 $0 $0 $0 $1,000 $0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Measure Actual Actual Target Actual ARRA Target Target

Administrative cycle time from the date when N/A N/A N/A N/A N/A 6 6 

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A 2 2 

announcement to date of disbursement in 

months (E) 

Number of people receiving counseling (Oe) N/A N/A N/A N/A N/A B N/A 

Number of hours or training provided (Oe) N/A N/A N/A N/A N/A B N/A 

 Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and B - baseline 

Description of Performance: The Financial Education and Counseling (FEC) Pilot 

Program has yet to issue any awards and the CDFI Fund is developing performance 

metrics based on number of clients provided critical financial literacy or for prospective 

homebuyers provided financial education and counseling services, and will develop 

outcome measures to track resulting impacts on the number who increased their credit 

score, and the number who were able to purchase a home at a good rate. The CDFI Fund 

staff will review data to be requested of awardees and set appropriate measures. The 

CDFI Fund will further develop these performance measures during FY 2010 and 

implement them in FY 2011. 

3J – Hawaii Financial Education and Counseling ($0 from direct appropriations): The 

CDFI Fund is not proposing to fund the Hawaii Financial Education and Counseling 

Program in FY 2011. The Bank on USA initiative will employ an educational campaign 

to improve the financial awareness of the underbanked and unbanked. 

3.2.10 – Hawaii Financial Education and Counseling Budget and Performance Plan 

(Dollars in Thousands) 

Hawaii Financial Education and Counseling Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligated Obligated ARRA Obligated Enacted Request

 Appropriated Resources $0 $0 $0 $0 $3,150 $0

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

Total Resources $0 $0 $0 $0 $3,150 $0

Budget Activity Total $0 $0 $0 $0 $3,150 $0

CDFI - 25 
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Measure

Actual Actual Target Actual ARRA Target Target

Administrative cycle time from the date when N/A N/A N/A N/A N/A 6 6 

applications are received to the date of award 

announcement in months (E) 

Administrative time from date of award N/A N/A N/A N/A N/A 2 2 

announcement to date of disbursement in 

months (E) 

Number of people receiving counseling (Oe) N/A N/A N/A N/A N/A B N/A 

Number of hours or training provided (Oe) N/A N/A N/A N/A N/A B N/A 

 Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and B - baseline 

Description of Performance: Performance measures will be consistent with the Financial 

Education and Counseling measures and will be implemented in FY 2011. 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: http://treas.gov/offices/management/budget/

 

CDFI - 26 
Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

The CDFI Fund’s Human Capital and Operational strategy is to implement an operational 

structure and procedures to best further the mission and operations of the Fund through 

staff employment/retention, recognition, employee relations, and performance and 

development. 

The CDFI Fund’s Human Capital Strategic Plan has been developed to respond to three 

major strategic goals aligned with the CDFI Fund’s mission: Organizational 

Effectiveness, Recruitment and Diversity, and Employee Retention and Satisfaction. 

Organizational Effectiveness 

During FY 2008 and FY 2009, the CDFI Fund underwent an evaluation of the efficiency 

and effectiveness of its operations through extensive internal assessments of every 

business unit within the CDFI Fund to determine what was working well, what areas 

needed improvement, and where the organization overall may be duplicating services 

and/or costs. During this process managers and line employees played an active role in 

working with various contractors and assessors to capture pertinent business processes. 

Based on these assessments the CDFI Fund is on the path of streamlining its business 

processes so that the organization may focus on its mission of expanding the capacity of 

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

populations and communities in the United States. The CDFI Fund is accomplishing this 

through leveraging already established operational programs through Departmental 

Offices such as informational technology, financial management, human resources, and 

travel services. 

In addition, the CDFI Fund realigned itself through reorganization during the last quarter 

of FY 2009 and the first quarter of FY 2010. The reorganization is intended to enhance 

mission accomplishment by allowing the CDFI Fund to focus fully on the core work – 

the awards programs, as well as eliminate duplication and reduce costs for essential (nonprogram) services. The reorganization will also result in increased efficiencies and 

greater accountability for managers. 

During the second quarter of FY 2010, the CDFI Fund will be developing a three to five 

year strategic plan that coincides with the growing needs of the CDFI community. 

Through professional facilitation, employees at all levels will be fully involved in 

crafting ideas and approaches that will enhance the CDFI Fund’s mission. 

To also ensure mission success into the future, the CDFI Fund needs a diverse group of 

employees and leaders who are able to produce results and who are able to inspire, 

motivate and guide others to produce. During FY 2010 and the first quarter of FY 2011, 

CDFI - 27 
the CDFI Fund will launch the Fund Academy which will be a key training and 

development and succession-planning tool designed to ensure that the CDFI Fund has the 

staff it needs to achieve mission success. The Fund Academy is intended to prepare staff 

to take on higher and broader roles and responsibilities in their area of technical 

responsibility; provide opportunities to obtain an understanding of customer and industry 

issues; enhance understanding, effectiveness and mobility across programs and business 

units; provide opportunities to participate and contribute while learning; and create a 

culture of current and future leaders who value people and understand and focus on 

achieving valuable results that matter to the community we serve. 

Recruitment and Diversity 

During FY 2009 the CDFI Fund aggressively staffed its vacant positions using its 

established formal recruitment strategies, policies and procedures intended to recruit the 

best candidates in the public and private sectors. The CDFI Fund continues to be 

dedicated to recruiting a diverse pool of employees to replicate the diverse constituents it 

serves. During FY 2010 and FY 2011, the CDFI Fund will continue the Director’s 

initiative of reaching out to organizations such as the Hispanic National Internship 

Program, the Washington Internships for Native American Students (WINS), Historically 

Black Colleges and Universities, and to trade organizations that represent persons with 

disabilities. Given the current economic challenges in the CDFI community, the CDFI 

Fund will also target individuals from the community and economic development 

communities who share a common interest in the customers we serve. This will help 

bring professional depth and years of specialized experience to enhance the CDFI Fund’s 

mission. 

In addition, the CDFI Fund intends to continue to grow its Compliance Monitoring and 

Evaluation unit to emphasize increased monitoring of awardee and allocatee compliance 

with the terms of assistance agreements, including a adoption of a risk-based approach 

which will entail more site visits. 

Employee Retention and Satisfaction 

During FY 2009, the CDFI Fund began to survey its employees to identify opportunities 

for improvement. This initiative will continue with subsequent surveys throughout FY 

2010 and FY 2011. The Director also fully intends to continue monthly “Brown Bag” 

lunches with line staff in order to stay connected to their needs and concerns. The 

lunches help employees with understanding the decisions that are made throughout the 

organization and provides them an opportunity to share their ideas with the Director. In 

order to promote a fully engaged workforce, senior management would like to ensure 

employee’s ideas and recommendations are captured early through meetings, working 

groups, policy discussions and other productive methods. 

Through the CDFI Fund Employee Recognition and Award Program, managers and linestaff will be able to continue to acknowledge employee contributions over and above 

what is expected with “Quality” performance. The Award Program is designed to 

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promote continual improvement of the CDFI Fund’s programs and operations through 

motivation and rewarding employees in keeping with its vision: an America in which all 

people have access to affordable credit, capital and financial services. Awards consist of 

Special Act Awards, On-the-Spot Awards, Time Off Awards, and non-monetary awards 

such as certificates and tours of historical landmarks in the Washington, D.C. area that 

also promote diversity. 
4.1 – Summary of IT Resources Table 

Information Technology Investments

FY 2008 FY 2009 FY 2010 

% Change from President's % Change from 

Major IT Investments / Funding Source Budget Activity Enacted Enacted FY08 to FY09 Budget FY09 to FY10 

None $0 $0 $0 

Subtotal, Major IT Investments $0 $0 $0 

Community Development Financial Institutions and New 

Community Investment Impact System (CIIS) Market Tax Credit Program $414 $427 -3.1% $450 -5.4% Non-Major IT Investments $414 $427 3.1% $450 5.4% 

Community Development Financial Institutions, New Market Tax Credit Program, Bank Enterprise Awards Program, and 

CDFI Infrastructure (Office Automation) Native Initiatives Program $1,966 $2,179 -10.8% $2,584 -18.6% 

Community Development Financial Institutions,New Market Tax Credit Program, Bank Enterprise Awards Program, and 

CDFI Infrastructure (IT Security) Native Initiatives Program $364 $0 $80 

Community Development Financial Institutions, New Market Tax Credit Program, Bank Enterprise Awards Program, and 

CDFI Infrastructure (Infrastructure) Native Initiatives Program $335 $335 $355 -6.0% 

Infrastructure Investments $2,665 $2,514 5.7% $3,019 -20.1% 

NoneEnterprise ArchitectureTotal IT Investments $3,079 $2,941 -4.5% $3,469 18.0% 

CDFI - 30 
4B – Information Technology Strategy 

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

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

submit an OMB 300. The CDFI Fund submits the Exhibit 53 for No Major IT 

investments. However, the CDFI Fund’s Chief Operations Officer (COO) ensures all 

decision making is integrated into the organizations planning, operations and budgeting 

processes. The Lead IT Supervisor assists the COO to ensure the existing processes and 

structures supporting IT investments are tied to the organization's strategic plan, support 

the agency's mission and remain strictly within the approved budget. 

The Lead IT Specialist is responsible for ensuring that the agency's IT strategic goals 

conform to required legislation, the Department of the Treasury, and Presidential goals, 

such as the Federal Information Security Management Act (FISMA), Grants.gov, and the 

Information Technology Infrastructure Line of Business (ITILoB). This information, as 

well as budget and project management information for the Capital Planning and 

Investment Control process, is coordinated with the Department of the Treasury Office of 

the Chief Information Officer as part of the agency’s IT management process. 

 

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4.2 – Program Assessment Table 

Program Name: CDFI Fund—Finance and Technical Assistance 

Assessment and Improvement Actions (Bureau Actions Planned of Underway) 

• The Fund made disaggregated data available to the public in January 2005 

and will continue to do so annually. 

• A Contract to evaluate the CDFI Training and Certification Program was 

awarded in 2005 and completed in August 2007. 

• The CDFI Fund intends to awards a competitive contract in FY 2011 for 

conducting an external evaluation of the long-term economic development 

impact of the Financial and Technical Assistance program. 

• During fiscal year 2009, CDFI did not meet its goal of making Recovery 

Act awards within 120 days of the enactment of the Recovery Act. 

Awards were provided to awardees within 134 days of the law’s 

enactment. However this marked an improvement of 121 days, or nearly 

50 percent, over the fiscal year 2008 level. 

• The CDFI Fund disbursed 100 percent of all Recovery Act awards within 

60 days of the date of award notification, an improvement of 210 days (78 

percent) over the fiscal year 2008 result of 270 days. 

• During 2009, the CDFI Fund sought to make Recovery Act awards within 

120 days of enactment of the Recovery Act. Although CDFI did not meet 

its target, the notice of award was provided to awardees within 133 days of 

enactment. This is an improvement of 167 days, nearly 50 percent faster 

than fiscal year 2008. 

• During 2009, the CDFI Fund exceeded its goal to disburse 85 percent of 

all Recovery Act awards within 60 days of the date of award notification; 

100 percent of awards were made in this time frame. This represents a 70 

percent improvement from fiscal year 2008, going from 210 days to 60 

days. 

Program Name: New Markets Tax Credit (NMTC) 

Assessment and Improvement Actions (Bureau Actions Planned of Underway) 

• The Fund is not taking any action related to the duplication/redundancy 

finding because, in the Fund’s opinion, the other available programs 

complement rather than duplicate the NMTC Program. 

• NMTC Program allocates submitted data in June 2005 that the Fund 

needed in order to set performance measure targets. The Fund set targets 

and began measuring its achievements in FY 2005. 

• The Fund conducted the analysis needed, set the baseline for the efficiency 

measure and began measuring progress in FY 2006. 

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• In FY 2005 the CDFI Fund awarded a contract for phase I of an 

independent evaluation of the New Markets Tax Credit Program which 

detailed the methodology for the large-scale, long –term evaluation. The 

work was conducted between July 2006 and July 2007. 

• In October 2007 the CDFI Fund contracted to conduct a four-year 

program evaluation of the New Markets Tax Credit Program which is 

scheduled to be completed in September 2011.