Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in thousands

 FY 2012 FY 2013 FY 2014 FY 2012 TO FY 2014

 Enacted Annualized Request $ Change % Change

Budget Activity CR Rate 

Community Development Financial 

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

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

Native American CDFI Assistance Program $12,000 $12,073 $12,000 $0 0.00%

Administration $22,965 $23,106 $23,636 $671 2.92%

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

Subtotal, Community Development 

Financial Institutions Fund $221,000 $222,353 $224,936 $3,936 1.78%

Offsetting Collections - Reimbursables $0 $106 $109 $109 NA

User Fees $0 $0 $491 $491 NA

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

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

Total Program Operating Level $259,095 $260,709 $258,071 ($1,024) -0.40%

Direct FTE 79 79 76 (3) -3.80%

Reimbursable FTE 0 0 0 0 NA

Total FTE 79 79 76 (3) -3.80%

Summary

The FY 2014 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 2014 are $224,936,000 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 2014 budget proposes funding for the

CDFI Program and Native American CDFI 

Assistance (NACA) Program, as well as the 
Healthy Food Financing Initiative (HFFI), and 

Bank Enterprise Award (BEA) 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 

Program, and the CDFI Bond Guarantee 

Program. The CDFI Bond Guarantee 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 

Program supports qualified investments in 

communities affected by military base closures 

or mass layoffs, such as those arising from plant 

closures.

CDFI FY 2014 Budget Highlights

Dollars in Thousands

Community Development Financial 

Institutions Fund FTE Amount

FY 2012 Enacted 79 $221,000

FY 2013 Annualized CR Rate 79 $222,353

Changes to Base:

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

Adjustment to FTE Estimate (4) -

Continuing Resolution Increase - ($1,353)

Maintaining Current Levels (MCLs): - $266

Pay-Raise - $81

Non-Pay - $185

Non-Recurring Costs: - ($500)

Program Management Support - ($500)

Efficiency Savings: 1 ($853)

IT and Other Contract Savings 1 ($853)

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

Total FY 2014 Base 76 $219,913

Program Changes:

Program Decreases: - ($11,302)

Bank Enterprise Award Program - ($8,000)

CDFI Core Program - ($1,735)

Administration - ($1,567)

Program Increases: - $16,325

Healthy Food Financing Initiative - $13,000

Administration - Bond Guarantee 

Program - $1,825

Administration - Research and 

Evaluation (Data Collection) - $1,500

Total FY 2014 Request 76 $224,936

FY 2014 Budget Adjustments

Adjustment to Request 

Adjustment to FTE Estimate +$0 / -4 FTE

Full time employees (FTEs) are reduced by 

four to align to historical usage.

Continuing Resolution Increase -$1,353,000 / 

+0 FTE

The across-the-board 0.612 percent increase 

provided in the CR through March 27, 2013 is 

non-recurred.

Maintaining Current Levels (MCLs) 

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

The President's Budget proposes a 1 percent 

pay-raise for federal employees in 2014.

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

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment.

Non-Recurring Costs

Program Management Support -$500,000 / +0 

FTE

This is one-time savings in the administrative 

account resulting from a reduction in the cost 

of the project management support for IT 

systems acquisition and deployment, which is 

only in place for one year after the transition to 

the Alcohol and Tobacco Tax and Trade 

Bureau is complete.

Efficiency Savings

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

FTE

The CDFI Fund will achieve efficiency 

savings through reductions to existing 

management contracts, particularly in 

Information Technology. A portion of these 

savings is contingent upon the CDFI Fund 

hiring an additional FTE to replace the current 

IT security contractor.

Program Decreases

Bank Enterprise Award Program -$8,000,000 

/ +0 FTE

The CDFI Fund proposes to reduce the BEA 

Program by $8 million in FY 2014. Based on 

the current fiscal environment and competing 

CDFI Fund priorities, the CDFI Fund proposes 

to allocate these resources to other programs.
CDFI Core Program -$1,735,000 / +0 FTE

The CDFI Fund will reduce the amount and 

number of financial assistance and technical 

assistance awards. The CDFI Fund 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.

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

The CDFI Fund proposes to reallocate current 

resources to the CDFI Bond Guarantee 

Program and research and evaluation.

Program Increases

Healthy Food Financing Initiative 

+$13,000,000 / +0 FTE

The FY 2014 Budget continues to support the 

current level of government-wide investments 

that increase the availability of affordable, 

healthy foods in underserved urban and rural 

communities. The CDFI Fund will make CDFI 

Program awards to CDFIs that will finance 

healthy food alternatives in low-income 

neighborhoods. Of the amount requested, $10 

million comes from grants funding that was 

previously administered by the Department of 

Health and Human Services’ Community and 

Economic Development (CED) program. 

These funds will continue to serve the CDFI 

Fund’s goal of increasing access to healthy, 

affordable food in communities that currently 

lack these options.

Administration - Bond Guarantee Program 

+$1,825,000 / +0 FTE

The CDFI Fund estimates administration of 

the CDFI Bond Guarantee Program in FY 

2014 will cost $2,316,000. Approximately 

$491,000 will be offset by the collection of a 

statutory administrative fee on issued loan 

guarantees. Treasury proposes to reinvest 

$1,825,000 to meet the remaining program 

administration requirements, including the 

provision of contract support to provide 

technical assistance to CDFI Bond Guarantee 

Program staff in the following areas: 

origination, credit review, loan monitoring, 

and outreach.

Administration - Research and Evaluation 

(Data Collection) +$1,500,000 / +0 FTE

The CDFI Fund is requesting funding for 

research and evaluation projects for the 

following three proposals: 

 Development of Community Development 

Impact Measurement Estimator (CDIME) -

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

 Analysis of Federal Reserve and Federal 

Financial Institutions Examination 

Council (FFIEC) Historical Community 

Reinvestment Data - Estimated Cost: 

$400,000

 Support the Research and Evaluation 

Activities for New Programs - Estimated 

Cost: $400,000

Explanation of Budget Activities

Community Development Financial 

Institutions Program ($144,300,000 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 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 through the terms of their 

allocation agreements.

The FY 2014 President’s Budget proposes to 

permanently extend the NMTC, allowing up to 

$5 billion in qualifying investment in each 

year beginning in 2014. The proposal would 

also permit the NMTC to permanently offset 

AMT liability. Within the FY 2014 allocation 

request, the Budget also proposes to provide a 

new allocated tax credit, the Manufacturing 

Communities Tax Credit Program, which 

would support qualified investments in 

communities affected by military base closures 

or mass layoffs, such as those arising from 

plant closures. This would provide about $2 

billion in credits for qualified investments 

approved in each of the three years, 2014 

through 2016.

Bank Enterprise Award Program ($10,000,000 

from direct appropriations)

Through the BEA Program, the CDFI Fund 

encourages insured depository institutions to 

increase investments and services in distressed 

communities and financial assistance to 

CDFIs. Consistent with Federal efforts to 

promote improving social outcomes while 

more effectively allocating public resources, 

the CDFI Fund will seek to better align the 

Pay for Success (PFS) model with existing 

BEA qualified activities. The CDFI Fund will 

collect and track PFS-related financing activity 

along with other inputs (e.g., BEA program 

evaluation) for consideration of future 

program changes. Awardees that engage in 

PFS-related activities may be publicly 

acknowledged by the Fund.

Native American CDFI Assistance Program

($12,000,000 from direct appropriations)

The Native Initiatives includes two 

components: (i) the 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 ($23,636,000 from direct 

appropriations)

Administration encompasses the CDFI Fund’s 

operational support and management activities 

for each of the monetary awards and tax credit 

program 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 

CDFI Bond Guarantee Program.

Healthy Food Financing Initiative

($35,000,000 from direct appropriations)

Through the Administration’s Healthy Food 

Financing Initiative, the CDFI Fund will build 

on program achievements in FYs 2011, 2012 
and 2013, and continue to support and finance 

healthy food alternatives in low-income 

communities.

Legislative Proposals

The CDFI Fund proposes legislative changes 

to the CDFI Bond Guarantee Program for FY 

2014: 1) extend the CDFI Bond Guarantee 

Program through FY 2015; and 2) clarification 

that Section 114A of the Riegle Community 

Development and Regulatory Improvement 

Act of 1994 (12 U.S.C. 4713a) fulfills the 

Federal Credit Reform Act (FCRA) 

requirements.

CDFI Performance by Budget Activity

Budget Activity Performance Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Target Target

Community Development 

Financial Institutions Program

CDFI - Amount of 

Loans/Investments Originated 

(Annual) $ millions

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

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

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

New Markets Tax Credit Program Community Development Entities' 

Annual Qualified Equity 

Investments In Low-Income 

Communities ($ billions)

3.1 4.7 5.5 4.5 5.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

In the FY 2012 funding round of the CDFI 

Program, the CDFI Fund received applications 

from 389 organizations, requesting $378.7 

million in financial and technical assistance 

awards and the Healthy Food Financing 

Initiative (HFFI). The CDFI Fund awarded 

more than $175 million in grants to 177 CDFIs 

serving distressed communities in 41 states 

and the District of Columbia, including $23 

million for HFFI. This activity shows that the 

demand for CDFI Fund financing continues to 

be robust.

As detailed in the CDFI Fund Performance by 

Budget Activity Table, in FY 2012, CDFI 

awardees reported originating loans totaling 

more than $1.3 billion based on their portfolio 

of activities in FY 2011, exceeding the target. 

Because this measure was new in FY 2011, the 

additional year of performance data on the 

amount of loans or investments has provided 

better data to benchmark and target program 

performance in for Fiscal Years 2013 and 

2014. 

In FY 2012, the CDFI Fund completed its 

program application-award cycle time in 6.5 

months, a full month sooner than the target of 

7.5 months. Staff analysis indicates that this 

was due to a one-time alignment of application 

and award rounds across different programs’ 

award cycles, principally attributable to the 

early staging of the BEA Program round. 

However, the CDFI Fund does not expect to 

replicate this performance in FY 2013 because 

of changes in program application and award 

calendar cycles to align the CDFI Program 
application with CDFI recertification 

requirements, and the expected launch of the 

CDFI Bond Guarantee Program. Thus, the 

target is 7.5 months in FYs 2013 and 2014. 

In FY 2012, the CDFI Fund reported for its 

All-jobs created and maintained measure a 

total of 57,023 which exceeded the target 

largely due to the lagged impact of Recovery 

Act investments reported in this period. The 

target for FY 2013 reflects lower requested 

budget levels and a projected inflation 

adjustment, as well as the tapering off of 

Recovery Act investments. The target for FY 

2014 reflects the increase in tax credit 

authority.

In FY 2012, NMTC allocatees reported annual 

qualified investments of nearly $5.5 billion in 

low-income communities by CDEs. Of these 

new investments, more than $2.5 billion went 

into non-real estate businesses, and more than 

$2.9 billion went into real estate activities. In 

addition, CDEs reported $4.5 billion in 

Qualified Equity Investments, exceeding the 

annual target of $4.0 billion. The FY 2013 

target of $4.5 billion reflects the available tax 

credit authority for the year. The FY 2014

target increase to $5.0 billion reflects the 

increased tax credit authority to make 

additional qualified equity investments.

Performance targets for the proposed 

Manufacturing Communities Tax Credit 

Program will be developed based on eligibility 

criteria for identifying communities affected 

by mass layoffs at closed manufacturing 

facilities and base closures. The CDFI Fund 

will work with the Bureau of Labor Statistics 

Mass Layoff program, as well as the Office of 

Economic Adjustment of the Department of 

Defense to assess available data and indicators 

for identifying affected communities.

The CDFI Fund contracted with the Urban 

Institute to perform an evaluation of the 

NMTC Program, and the final revised report is 

expected to be released in FY 2013.

In FY 2012, the CDFI Fund awarded a 

contract 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.