Community Development Financial Institutions Fund 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Budget Activity Operating Plan Annualized 

CR Request $ Change % Change 

Community Development Financial Institutions 

Fund Program $165,000 $165,000 $215,383 $50,383 30.54% 

Economic Mobility Corps $2,000 $2,000 $2,000 $0 0.00% 

Bank Enterprise Award Program $26,000 $26,000 $26,000 $0 0.00% 

Native American CDFI Assistance Program $16,500 $16,500 $21,500 $5,000 30.30% 

Administrative $29,000 $29,000 $35,037 $6,037 20.82% 

Healthy Food Financing Initiative $23,000 $23,000 $23,000 $0 0.00% 

Small Dollar Loan Program $8,500 $8,500 $8,500 $0 0.00% 

Subtotal, Organization Title $270,000 $270,000 $331,420 $61,420 22.7% 

Offsetting Collections - Reimbursable $1,186 $1,250 $1,350 $100 8.00% 

Recovery from Prior Years $405 $500 $500 $0 0.00% 

Unobligated Balances Brought Forward $13,569 $218,045 $28,000 ($190,045) -87.16% 

Total Program Operating Level $15,160 $219,795 $29,850 ($189,945) 100.00% 

Direct FTE 82 82 89 7 8.54% 

Total Full-time Equivalents (FTE) 67 82 89 7 8.54% 

Summary 

The FY 2023 Budget requests an appropriation of $331,420,000 for the Community 

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

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

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

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

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

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

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

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

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

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

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

FY 2021, $1.25 billion of these funds were awarded through its newly established CDFI Rapid 

Response Program (CDFI RRP), which was designed to quickly deploy capital to CDFIs through 

a streamlined application and review process. In FY 2023, the CDFI Fund will award the 

remaining $1.75 billion under the Minority Lending Program to CDFIs to expand their lending, 

grant making and investments activity in low- or moderate-income minority communities and to 

minorities that have significant unmet capital or financial service needs. 

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

investments, business counseling, basic banking services, and financial literacy training to 
underserved communities. Working primarily through CDFIs, the CDFI Fund facilitates business 

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

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

and other funding sources on a cumulative basis. 

The FY 2023 Budget proposes funding for the CDFI Program and the Native American CDFI 

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

Program, the Economic Mobility Corps, and the Healthy Food Financing Initiative (HFFI). 

Treasury’s request also includes funding for the administration, operational support, and 

management associated with these programs, the New Markets Tax Credit (NMTC) Program, 

and the CDFI Bond Guarantee (BG) Program. 

Budget Highlights 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 82 $270,000 

Program Changes: 

Program Increases 7 $61,420 

CDFI Program 0 $50,383 

Native American CDFI Assistance (NACA) Program 0 $5,000 

Administration 7 $6,037 

FY 2023 President's Budget Request 89 331,420 

Budget Adjustments 

Program Increases

CDFI Program +$50,383,000 / +0 FTE 

This increase will result in larger Financial Assistance (FA) awards and will support Small 

and/or Emerging Community Development Financial Institutions Assistance applicants, 

providing more funding for capacity building grants through the Technical Assistance (TA) 

awards component. 

NACA Program +$5,000,000 / +0 FTE 

This increase will result in larger FA awards, as well as be used to increase participation by 

Native communities by improving technical assistance and capacity building for Native CDFIs. 

Administration +$6,037,000 / +7 FTE 

This increase will allow the CDFI Fund to focus on hiring, data collection and infrastructure 

needs that have been deferred in past years due to budget constraints. 

Legislative Proposals 

The FY 2023 Budget proposes to include $5 billion in long-term mandatory funding to support 

lending by eligible CDFIs to finance new construction and substantial rehabilitation that creates 

net new units of affordable rental and for sale housing known as the CDFI Affordable Housing 

Supply Fund. 

The purpose of the program is to increase and preserve the supply of affordable housing in single 

family and small properties (1-4 units) and small multifamily properties not to exceed 100 units. 
The Community Development Financial Institutions Fund will provide $5 billion in grants to 

Community Development Financial Institutions (CDFIs) to support financing for the 

construction, acquisition, rehabilitation and preservation of both rental and homeownership

housing, including accessory dwelling units.

This program will encourage the participation of small-scale developers and contractors. 

The program will support activities that: 

 ensure the sustainability, climate resiliency, and energy efficiency of affordable housing 

through rehabilitation; 

 focus on increasing the supply of affordable housing in underserved markets, including 

single family, small properties (1-4 units) and small multifamily properties with fewer than 

100 units; 

 create affordable homeownership opportunities through financing the construction and 

rehabilitation of single-family properties for individuals and families with incomes up to 

120% of AMI and up to 150% of the Area Median Income (AMI) in high cost areas 

(including acquisition and rehabilitation); 

 preserve and rehabilitate rental opportunities in Naturally Occurring Affordable Housing 

(NOAH);

 finance/ support the development of Accessory Dwelling Units (ADUs);

 preserve affordable housing that is at risk of conversion to market rate; and

 expand the supply of affordable housing through innovative approaches consistent with the 

goals of the program including the conversion of commercial properties to residential and 

utilization of modular housing.

Units financed under this program will have 10 years affordability compliance requirements. 

Performance Highlights 

 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Budget Activity Performance Measure Actual Actual Actual Target Target 

 

Community Development 

Financial Institutions 

Program 

CDFI - Percentage of Loans & 

Investments Originated in Eligible 

Distressed or Underserved 

Communities by Dollar Amount of 

Loans (Annual %) 

75.6 75.0 71.4 60.0 60.0 

Administration All Award Cycle Time (Months) 6.4 5.5 5.6 6.5 6.5 

Administration 

ALL- Number of Affordable 

Housing Units Developed or 

Produced 

61,839 44,361 58,125 I I 

New Markets Tax Credit 

Program 

NMTC - Percentage of Loans and 

Investments That Went Into 

Severely Distressed Communities 

80.3 77.2 77.0 75.0 75.0 

Key: I – Indicator 

Description of Performance 

For the FY 2021 CDFI Program round, the CDFI Fund awarded $140.8 million in Base FA and 

TA awards to 422 organizations. The CDFI Fund also awarded $18.6 million in PPC-FA to 125 
CDFIs specifically to serve Persistent Poverty Counties nationwide. In addition, the CDFI Fund 

awarded $23 million in HFFI-Financial Assistance to 10 CDFIs, as well as $6 million in 

Disability Funds-Financial Assistance awards to 14 CDFIs to help finance projects and services 

to assist individuals with disabilities. 

In the FY 2021 round of the NACA Program, the CDFI Fund awarded $14.3 million in Base-FA 

and TA awards to 34 organizations in 16 states. In addition, the CDFI Fund awarded $1.65 

million in NACA Program PPC-FA awards to eight Native CDFIs. 

In the FY 2021, the CDFI Fund awarded $5 billion in CY 2020 NMTC Program allocation 

authority to 100 organizations out of a pool of 208 applicants that requested $15.1 billion in 

NMTC allocations. On December 27, 2020, legislation was enacted extending allocation 

authority of the NMTC Program for five years through calendar year (CY) 2025 at $5 billion 

annually. The FY 2023 revenue proposal volume (also referred to as the “greenbook”) seeks a 

permanent reauthorization of the New Markets Tax Credit. Please see 

https://home.treasury.gov/policy-issues/tax-policy/revenue-proposals for more information. 

Highlights of Select Performance Measures 

In the FY 2021, the CDFI Program surpassed the 60.0% threshold for the percentage of both the 

dollar amount (71.4%) and the number of CDFI loans (75.7%) made to eligible distressed 

communities and underserved populations. 

In FY 2021, the NMTC Program recipients reported that over 77.0% of NMTC investments 

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

high rates of poverty and unemployment. 

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

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

average across all programs). The Award Cycle Time in FY 2021 was 5.6 months, surpassing the 

target of 6.5 months. FY 2021 reflects the inaugural round of the SDL Program as well as 

estimates for BEA and CMF programs, which are still in the midst of their FY2021 round 

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

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

the Minority Lending Program (MLP). 

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

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

by CDFI Program, NMTC Program, and CMF awardees. The FY 2021 actual result was 58,125 

affordable housing units developed or produced as a result of CDFI Fund program awards. This 

performance measure has been converted to an indicator beginning with FY 2021 because of the 

variability in projecting annually the number of affordable housing units funded for three 

programs made it difficult to project a reliable target.