CDFI - 1 

Community Development Financial Institutions 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 2008 FY 2009 FY 2010

Enacted ARRA Enacted Request $ Change % Change

 Community Development Financial Institutions 

Program $52,250 $90,000 $59,750 $113,600 $53,850 90.1%

 New Markets Tax Credit Program $4,120 $67 $4,200 $4,203 $3 0.1%

 Bank Enterprise Award Program $20,000 $0 $22,000 $22,000 $0 -

 Native Initiatives $8,000 $8,000 $8,500 $10,000 $1,500 17.6%

 Capital Magnet Fund $0 $0 $0 $80,000 $80,000 100.0%

 Administration $9,630 $1,933 $10,550 $13,797 $3,247 30.8%

 Financial Education and Counseling $0 $0 $2,000 $0 ($2,000) (100.0%)

Total Appropriated Resources $94,000 $100,000 $107,000 $243,600 $136,600 127.7%

Total FTE 75 - 75 84 9 12.0%

/1The CDFI Fund will seek to implement additional reforms to the BEA program to enhance the capacity of CDFI banks, and to 

strengthen partnerships between small community banks and CDFIs. 

/2 The Administration budget activity excludes resources to administer the New Markets Tax Credit program. 

FY 2010 Priorities 

• To certify qualified entities as Community Development Financial Institutions 

(CDFIs) and Community Development Entities (CDEs) so that these organizations 

may be eligible to compete for assistance under the CDFI Fund’s programs. 

• To expand access to credit, capital and financial services in low-, very low- and 

extremely-low income communities in the United States through expansion of 

awards to eligible CDFIs, including those serving rural and Native American 

communities. 

• To increase the availability of quality low-income housing in distressed 

communities through the new Capital Magnet Fund. 

• To encourage private sector investment in CDEs and CDFIs through competitive 

allocation of New Markets Tax Credits 

• To implement additional reforms to the Bank Enterprise Award program to enhance 

the capacity of CDFI banks, and to strengthen partnerships between small 

community banks and CDFIs. 

• To enhance compliance monitoring of prior year awardees in each CDFI Fund 

program and conduct strategic research to analyze the impact and outcomes of the 

CDFI Fund’s programs, including the effect of changing economic conditions. 
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Table of Contents 

Community Development Financial Institutions 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................................... 6

2.1 – Budget Adjustments Table..................................................................................... 6 

2A – Budget Increases and Decreases Description ........................................................ 6 

2.2 – Operating Levels Table.......................................................................................... 9 

2.3 – Appropriations Detail Table ................................................................................ 10 

2B – Appropriations Language and Explanation of Changes....................................... 11 

2C – Legislative Proposals ........................................................................................... 12 

Section 3 – Budget and Performance Plan ................................................................... 13

3.1 – Budget by Strategic Outcome .............................................................................. 13 

3.2.1 – Community Development Financial Institutions Program Budget and 

Performance Plan.......................................................................................................... 14 

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan................... 16 

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

3.2.4 – Native Initiatives Budget and Performance Plan.............................................. 18 

3.2.5 – Capital Magnet Fund Budget and Performance Plan........................................ 19 

3.2.6 – Administration Budget and Performance Plan ................................................. 20 

Section 4 – Supporting Materials .................................................................................. 21

4A – Human Capital Strategy Description ................................................................... 21 

4.1 – Summary of IT Resources Table ......................................................................... 24 

4B – Information Technology Strategy ........................................................................ 25 

4.2 – Program Assessment Table.................................................................................. 26 
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 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: Certification. To certify CDFIs and Community Development Entities 

(CDEs) so that they may participate in the CDFI Program, the Native American CDFI 

Assistance (NACA) Program, and the New Markets Tax Credit (NMTC) Program. At 

the beginning of FY 2009, the CDFI Fund has certified 808 entities as CDFIs and 3,424 

entities as CDEs. 

Priority 2: CDFI Program Awards. To expand access to credit, capital and financial 

services in low-, very low- and extremely low-income communities in the United States 

through expansion of awards to eligible CDFIs, including those serving rural and Native 

American communities. The CDFI Fund will accomplish this goal by providing meritbased grant awards to high-quality CDFIs through the CDFI Program and the Native 

American CDFI Assistance (NACA) Program. To date, the CDFI Fund has made a total 

of $657 million in awards through the CDFI and NACA programs. 

Priority 3: Capital Magnet Fund. To increase the availability of quality low-income 

housing in distressed communities through the new Capital Magnet Fund program 

(CMF). CMF grants will attract private capital and increase investment in affordable 

housing and economic development projects in disadvantaged communities. 

Priority 4: New Markets Tax Credit Program. To encourage private sector investment 

in low-income communities through the competitive allocation of tax credit authority to 

Community Development Entities (CDEs). To date, the CDFI Fund has awarded $19.5 

billion of investment authority to CDEs through the NMTC Program. 

Priority 5: Bank Enterprise Award program. The CDFI Fund will seek modifications 

to the BEA Program to enhance the capacity of CDFI banks, and to strengthen 

partnerships between community banks and CDFIs. 

Priority 6: Performance Monitoring and Evaluation. To enhance compliance 

monitoring activities for the suite of CDFI Fund programs, and analyzes the impact of 

CDFI Fund grant awards in distressed communities, including how changing economic 

conditions have affected the operating environment of the CDFI Fund’s programs and 

altered the supply and demand for capital and financial services in underserved 

communities. 
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1B – Program History and Future Outlook 

Starting with FY 2010, the CDFI Fund will administer four grant programs in support of 

community development finance: the CDFI Program; the NACA Program; a redesigned 

Bank Enterprise Award Program; and the CMF. The CDFI Fund also administers tax 

credit allocation authority through the NMTC Program. In addition to administering 

these programs, the CDFI Fund certifies organizations as CDFIs and CDEs, contracts 

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

conducts strategic research and program evaluations. 

FY 2007 is the most recent year for which complete program results data is available. In 

that year, CDFI Program awardees reported that over 9,100 businesses were financed as a 

result of CDFI Fund awards in FY 2008, helping to create or retain over 29,000 full-time 

equivalent jobs. These CDFIs financed over 1,000 commercial real estate properties and 

over 4,000 units of affordable housing. They also financed home purchases for over 

2,400 homebuyers, established bank accounts for over 800 “unbanked” persons, and 

provided financial literacy and other counseling to over 132,000 clients. 

FY 2007 NMTC Program awardees reported that, in FY 2008, $2.19 billion was invested 

in real estate projects in target communities, helping to develop or rehabilitate 21 million 

square feet of real estate and create 81,000 construction jobs. These awardees made an 

additional $1.15 billion of loans and investments to businesses in low-income 

communities, helping to create or retain 25,000 full time equivalent jobs. 

In FY 2008, the CDFI Fund: 

• Reviewed 170 applications requesting a total of $200 million through the Financial 

Assistance (FA) Component of the CDFI Program, and made 66 awards totaling 

$52 million; 

• Reviewed 55 applications requesting a total of $5.2 million through the Technical 

Assistance (TA) Component of the CDFI Program, and made 23 awards totaling $2 

million; 

• Reviewed 45 applications requesting a total of $17 million through the NACA 

Program, and made 29 awards totaling $8.2 million; 

• Reviewed 60 applications requesting a total of $49 million through the BEA 

Program, and made 52 awards totaling $20 million; and 

• Reviewed 239 applications requesting a total of $21.3 billion in investment 

authority through the NMTC Program, and made 70 awards totaling $3.5 billion.

The CDFI Fund has also made significant progress enhancing program administration 

business processes, enabling the fund to make award disbursements more quickly and at 

lower cost. Award disbursements during the first quarter of FY 2008 were 63% higher 

than the previous first quarter of FY 2007 for the CDFI Program. Disbursements for the 

NACA Program also increased 31% over the prior year period. These increases reflect 

improvements in business efficiencies in the disbursement system, ensuring awardees 

receive funds faster. 
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In FY 2009, the CDFI Fund anticipates further efficiency gains in award disbursements 

as a result of the waiver of the matching funds requirement included in the FY 2009 

American Recovery and Reinvestment Act (Recovery Act) for CDFI and NACA 

Program awardees in that year. 

Future Challenges 

To improve the impact of grant awards, the CDFI Fund needs to conduct a more rigorous 

analysis of low-income markets and the effectiveness of CDFIs in serving those markets. 

The Fund must ensure that its limited resources reach communities most in need of 

financial assistance. To this end, the CDFI Fund will work to strengthen its research 

capabilities and foster an application review process that results in the most effective 

allocation of grant awards. 

The CDFI Fund will also implement a completely new program in FY 2010, the Capital 

Magnet Fund, authorized by the Housing and Economic Recovery Act of 2008. The 

CMF will facilitate investment in the development, rehabilitation and purchase of 

affordable housing for low-, very low- and extremely low-income persons through a 

competitive grant application process. To successfully implement this important program, 

the CDFI Fund will need to increase its staff resources; research and implement best 

practices in the housing industry; develop application and review materials; market the 

program to ensure highest possible participation; select the highest caliber awardees; and 

implement rigorous compliance and evaluation protocols. 

Finally, the CDFI Fund also faces many challenges in administration of its programs, 

including the transition of its award administration activities to the Grants Management 

Line of Business (GMLoB), and transition to the shared service provider model for 

financial management and information technology services. Establishing uniform 

requirements through the GMLoB supports end-to-end grants management activities that 

promote citizen access, customer service, and agency financial and technical stewardship. 

Certain federal agencies provide these grant processing functions for their grant-making 

federal agency customers. This transition process will require a complete evaluation of 

the CDFI Fund’s award activities, from application to award, to determine which 

activities can be transitioned, and the most efficient process for making the transition. 
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 2009 Enacted 75 107,000

Changes to Base: 

Maintaining Current Levels (MCLs): - $250

Across the Board Program Reduction - (69)

Non-Pay Inflation Adjustment - 107

Pay Annualization - 76

Pay Inflation Adjustment - 136

Subtotal FY 2010 Changes to Base - $250

Total FY 2010 Base 75 107,250

Program Changes: 

Program Decreases: - ($2,000)

Financial Counseling Grants program - (2,000)

Program Increases: 9 $138,350

CDFI program - 53,850

Native Initiatives - 1,500

Capital Magnet Fund - 80,000

Capital Magnet Fund Implementation 6 1,300

Research, Evaluation & Performance 2 850

Transition to Departmental Offices' IT LAN 2 850

Subtotal FY 2010 Program Changes 9 $136,350

Total FY 2010 President's Budget Request 84 243,600

2A – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..............................................+$250,000 / +0 FTE 

Across the Board Program Reduction -$69,000 / +0 FTE 

The CDFI Fund continues to focus on improving the efficiency of its operations through 

a disciplined process of productivity improvement. 

Non-Pay Inflation Adjustment +$107,000 / +0 FTE 

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

and GSA rent. 

Pay Annualization +$76,000 / +0 FTE 

Funds are requested for the FY 2010 cost of the January 2009 pay raise. 

Pay Inflation Adjustment +$136,000 / +0 FTE 

Funds are requested for the January 2010 pay raise. 

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

Financial Counseling Grants program -$2,000,000 / +0 FTE 

The CDFI Fund will discontinue the financial counseling grants pilot program, begun in 

FY 2009, and reinvest these resources in its existing financial assistance and technical 

assistance grants programs. 
CDFI - 7 

Program Increases .....................................................................+$138,350,000 / +9 FTE 

CDFI program +$53,850,000 / +0 FTE 

The FY 2010 budget request seeks to increase funding to support the increased demand 

for CDFI Program grants. CDFIs use these grants 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 leverage CDFI Program awards by approximately 15:1. 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. 

Native Initiatives +$1,500,000 / +0 FTE 

Through the Native Initiatives, the CDFI Fund assists Native Communities (Native 

American, Alaskan Native and Native Hawaiian communities) to overcome certain 

barriers to financial services. The CDFI Fund achieves these objectives through two 

principal strategies: (i) the NACA Program, which provides financial assistance and 

technical assistance awards to new or existing Native CDFIs, and (ii) a complementary 

series of training programs, called Expanding Native Opportunities, that foster the 

development of new Native CDFIs, strengthen the operational capacity of existing Native 

CDFIs, and guide Native CDFIs in the creation of important financial education and asset 

building programs for their communities. The budget requests an additional $1.5 million, 

bringing the total program funding to $10 million. 

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

The CMF, authorized by the Housing and Economic Recovery Act of 2008, is a program 

to be 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 

$99 million in FY 2010. Given the current economic conditions, it is unlikely that funds 

will be available through this avenue in FY 2010. The budget requests $80 million in 

funding to begin this important program, which will stimulate the economy in the nation's 

most distressed neighborhoods. Grants awarded through the CMF will attract private 

capital and increase investment in affordable housing projects that are currently stalled 

due to the tightening of the credit market. 

Capital Magnet Fund Implementation +$1,300,000 / +6 FTE 

These resources will enable the CDFI Fund to hire additional grants and program 

compliance staff with expertise in programs designed to facilitate affordable housing and 

related investments. 

Research, Evaluation & Performance +$850,000 / +2 FTE 

Given the rapid restructuring of the nation's finance, housing and community 

development sectors, funding through the CDFI Fund's programs is being deployed in a 
CDFI - 8 

dramatically changing market environment which requires strategic research to assess 

and monitor. Such research on shifting and emerging market conditions is essential to 

understand the current and future development prospects of underserved and 

economically distressed communities so that policy makers and administrators can frame 

policy operations and target program resources most efficiently. Several research 

initiatives are planned, including: (i) an evaluation and redesign of the BEA Program 

with an emphasis on encouraging private financial institutions' investments in CDFIs; (ii) 

the development of performance metrics for the CMF; (iii) strategic research to analyze 

how changing economics and demographic conditions have affected the operating 

environment of the CDFI Fund's programs. 

Transition to Departmental Offices' IT LAN +$850,000 / +2 FTE 

In FY 2010, the CDFI Fund will transition from its separate information technology LAN 

to a shared service provided model, leveraging the Department of Treasury Departmental 

Offices LAN capabilities. This transition will result in a one time cost estimated at $1.5 

million. 
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2.2 – Operating Levels Table 

Bureau: Community 

Development Financial 

Institutions Fund

FY 2008 

Enacted

FY 2009 

ARRA

FY 2009 

President's 

Budget

Congressio

nal Action

Including 

Rescission

FY 2009 

Enacted 

Level

Proposed 

Reprogra

mmings

FY 2009 

Proposed 

Operating 

Level

FY 2010 

Requested 

Level

% Change

FY 2009 

to FY 2010

 

FTE 75 0 75 0 0 0 75 84 12.00%

Object Classification: 

11.1 - Full-time permanent 5,660 1,324 6,545 1,823 6,230 0 6,230 8,223 31.99%

12 - Personnel benefits 1,470 326 1,701 97 1,619 0 1,619 2,060 27.24%

21 - Travel and transportation of 

persons 

119 0 120 7 114 0 114 119 4.39%

22 - Transportation of things 20 0 20 0 20 0 20 20 0.00%

23.1 - Rental payments to GSA 1,411 0 1,465 (17) 1,447 0 1,447 1,553 7.33%

23.2 - Rental payments to others 193 0 117 99 189 0 189 190 0.53%

23.3 - Comm, utilities, and misc 

charges 

317 0 472 0 332 0 332 368 10.84%

24 - Printing and reproduction 20 0 20 0 20 0 20 20 0.00%

25.1 - Advisory and assistance 

services 

2,484 350 2,104 (27) 2,522 0 2,522 1,023 -59.44%

25.2 - Other services 1,008 0 330 737 630 0 630 1,035 64.29%

25.3 - Other purchases of goods 

and services from Govt. accounts 

867 0 952 269 911 0 911 867 -4.83%

25.5 - Research and development 

contracts 

0 0 0 0 0 0 0 1,500

26 - Supplies and materials 106 0 107 12 111 0 111 111 0.00%

31 - Equipment 75 0 75 0 75 0 75 111 48.00%

33 - Investments and loans 2,170 0 100 0 530 0 530 800 50.94%

41 - Grants, subsidies, and 

contributions 

78,080 98,000 14,492 62,443 92,250 0 92,250 225,600 144.55%

Total Budget Authority $94,000 $100,000 $28,620 $65,443 $107,000 $0 $107,000 $243,600 127.66%

 

Budget Activities: 

Community Development 

Financial Institutions Program 

52,250 90,000 14,592 34,043 59,750 0 59,750 113,600 90.13%

New Markets Tax Credit Program 4,120 67 4,203 0 4,200 0 4,200 4,203 0.07%

Bank Enterprise Award Program 20,000 0 0 21,400 22,000 0 22,000 22,000 0.00%

Native Initiatives 8,000 8,000 0 10,000 8,500 0 8,500 10,000 17.65%

Capital Magnet Fund 0 0 0 0 0 0 0 80,000

Administration 9,630 1,933 9,825 0 10,550 0 10,550 13,797 30.78%

Financial Education and 

Counseling 

0 0 0 0 2,000 0 2,000 0 -100.00%

Total Budget Authority $94,000 $100,000 $28,620 $65,443 $107,000 $0 $107,000 $243,600 127.66%

0.00%

0.00%

 
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2.3 – Appropriations Detail Table 

Dollars in Thousands 

(Dollars in Thousands)

FTE AMOUNT FTE AMOUNT FTE AMOUNTFTE AMOUNTFTE AMOUNT FTE A

New Appropriated Resources:

Community Development Financial

Institutions Program $52,886 $52,250 $90,000 $59,750 $113,600

New Markets Tax Credit Program 15 4,120 15 4,120 67 15 4,200 15 4,203

Bank Enterprise Award 19,981 20,000 22,000 22,000

Native Initiatives 7,327 8,000 8,000 8,500 10,000

Capital Magent Fund 80,000

Administration 38 8,997 60 9,630 1,933 60 10,550 69 13,797 15.00%

Financial Education/Counselling 2,000 0

Subtotal New Appropriated Resources 53 $93,311 75 $94,000 $100,000 75 $107,000 84 $243,600 12.00%

Other Resources:

Recoveries 658 500 500 500

FY 2

Resources Available for Obligation

FY 2008 FY 2008 FY 2009 FY 2010

Enacted Request

FY 2009

Obligations ARRA Enacted to FY 

% Ch

MOUNT

90.13%

0.00%

17.65%

30.78%

127.66%

Unobligated Balance 1,533 986 986 500 -49.29%

Offsetting Collections 600 500 500 500

Available multi-year/no-year funds 50 402 402 402

Subtotal Other Resources 0 $2,841 0 $2,388 0 $2,388 0 $1,902 -20.35%

Total Resources Available for Obligation 53 $96,152 75 $96,388 $100,000 75 $109,388 84 $245,502 12.00% 124.43%

009

2010

ange
CDFI - 11 

2B – Appropriations Language and Explanation of Changes 

DEPARTMENT OF THE TREASURY 

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 

FUND 

of 2008 (Public Law 110-289)], notwithstanding sections 4707(d) 

and 4707(e) of title 12, United States Code; and of which 

$80,000,000 shall 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 1331 of the Housing and Economic 

Recovery Act of 2008 ("HERA"; Public Law 110-289), to support 

financing for affordable housing and economic development 

projects: Provided further, That section 1339(h)(3) of the Federal 

Housing Enterprises Financial Safety and Soundness Act of 1992, as 

amended by section 1131 of HERA, shall be applied by substituting 

the term "at least 10 times the grant amount or such other amount 

(including none) that the Secretary may require" for "at least 10 

times the grant amount"; and up to [$14,750,000]$18,000,000 may 

be used for administrative expenses, including administration of the 

New Markets Tax Credit[, up to $7,500,000 may be used for the cost 

of direct loans, and 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 $16,000,000]Program. (Department of the Treasury 

Appropriations Act, 2009.) 

 proposed changes 

ude a waiver, for FY 

2010, of the 5-year cap and 

the matching funds 

requirements for the CDFI 

and NACA programs; in 

addition, the CMF leveraging 

requirement is proposed for 

modification for FY 2010. 

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, 

$243,600,000 to remain available until September 30, [2010] 2011, 

of which [$8,500,000] $113,600,000 shall be for the Community 

Development Financial Institutions Program; of which $10,000,000 

shall be for financial assistance, technical assistance, training and 

outreach programs, 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[, $2,000,000 shall 

be available for the pilot project grant program under section 

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

The

incl
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2C – Legislative Proposals 

For purposes of the CDFI Fund’s FY 2010 appropriations, the CDFI Fund is requesting a 

waiver of the statutory cap on award amounts (12 U.S.C. 4707 (d)) and a waiver of the 

matching funds requirements (12 U.S.C. 4707 (e)) for the FY 2010 funding rounds, given 

the current need to stabilize the economy. 

Award Cap Waiver 

The CDFI Fund proposes waiving the 3-year, $5 million cap (12 U.S.C. 4707(d)(1)-(2)) 

for FY 2010. The FY 2010 Budget includes a significant increase in CDFI Program 

resources, and the CDFI Fund requires the option to use some of the additional resources 

to fully fund high quality applicants that received awards in previous resources. Due to 

additional resources made available through the Recovery Act, and the increase of the FY 

2010 budget request, the Administration supports waiving the award cap. 

Matching Fund Waiver 

The second proposal waives the CDFI Programs matching funds provision in 2010, 

which requires applicants to match awards on a 1:1 basis with private funding. Given 

current credit market conditions, CDFIs may find it difficult to obtain affordable private 

credit. Under this proposal, highly qualified CDFIs will be able to apply even if they are 

struggling to find a private match. Given the market challenges in the credit and equities 

markets, many CDFIs are encountering a significant contraction of capital support to 

obtain matching funds. 

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 Administration supports waiving the matching 

funds requirement to enable all CDFIs that are able to serving distressed communities to 

be eligible to apply regardless of the market conditions that have impacted the ability to 

obtain matching funds. 
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Section 3 – Budget and Performance Plan

This table lists all FY 2010 resources by strategic goal, objective and outcome outlined in 

the FY 2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan is a 

corporate level plan for the 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 Treasury Strategic Plan, please go to: 

http://www.treas.gov/offices/management/budget/strategic-plan/

3.1 – Budget by Strategic Outcome 

Dollars in Thousands 

Treasury Strategic Outcome FY 2009 

ARRA

FY 2009 

Enacted

FY 2010 

Request

Percent 

Change

 Economic competitiveness 100,000 107,000 243,600 127.66%

Total $100,000 $107,000 $243,600 127.66%

3A – Community Development Financial Institutions Program ($113,600,000 from 

direct appropriations): The CDFI Program enables the CDFI Fund to carry out 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 Program also addresses Treasury’s strategic objective to increase economic growth 

and create jobs. The program comprises three components: Financial Assistance, 

Technical Assistance, and Training. 

• Financial assistance (FA) awards are only provided to entities that have been certified 

by the CDFI Fund as meeting the statutory criteria to be a CDFI. Because of the wide 

range of institution types that can be certified as CDFIs, the FA application process 

contains a degree of complexity not shared by other CDFI Fund award programs. 

Each applicant must describe and demonstrate its financial health, management 

capacity, and ability, based on historic and future projected activity, to deliver a 

product or service that will increase access to capital, credit and quality financial 

services in underserved communities. 

• Technical assistance (TA) grants serve to secure a sound foundation for developing 

CDFIs and can be used for training, technology and other one-time costs generally 

related to start-up or major growth phases of a CDFI. 

• Training programs are designed to support identified areas of skills improvement for 

CDFIs and other members of the financial service industry. The program supports 

Treasury’s objective to increase economic growth and create jobs by providing 

needed education and support for skills development to enable relevant parties to 

deliver or utilize financial services. 

In FY 2009, the CDFI Fund received an additional $90 million for the CDFI Program 

under the American Recovery and Reinvestment Act (the Recovery Act). With these 

additional resources, the CDFI Fund will make awards in two phases in FY 2009. The 
CDFI - 14 

entirety of the Recovery Act awards would be awarded in June of 2009 to CDFIs that had 

applied under the regular FY 2009 funding round. Disbursements would be made within 

60 days after award announcement. This accelerated schedule, combined with the waiver 

of the matching funds requirement for FY 2009 CDFI Program awardees will enable the 

fund to make all Recovery Act awards and disbursements before the end of fiscal 2009. 

An additional application round was opened to invite applicants to apply for CDFI 

Program awards made with the funds that were initially appropriated. These awards are 

anticipated to be made in September of 2009. 

Other Resources: Additional resources available for the CDFI Program in FY 2009 total 

$1,902,000, including $1,402,000 in available prior-year balances and $500,000 in 

offsetting collections. 

3.2.1 – Community Development Financial Institutions Program Budget and 

Performance Plan 

Community Development Financial Institutions Program Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated ARRA Enacted Request

 Appropriated Resources $30,268 $31,881 $52,886 $90,000 $59,750 $113,600

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

Total Resources $30,268 $31,881 $52,886 $90,000 $59,750 $113,600

Budget Activity Total $30,268 $31,881 $52,886 $90,000 $59,750 $113,600

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual ARRA Target Target

Community 

Development 

Financial Institutions 

Program 

Dollars of private and non-CDFI Fund 

investments that CDFIs are able to 

leverage because of their CDFI Fund 

Financial Assistance ($ millions) (Oe) 

1,400 778 621 NA 635 1391

Community 

Development 

Financial Institutions 

Program 

Number of full-time equivalent jobs 

created or maintained in underserved 

communities by businesses financed by 

CDFI program awardees (Oe) 

22,329 35,022 29,539 76,000 44,000 85,000

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: In FY 2008, the CDFI Fund leveraged $621 million in 

private and non-CDFI Program dollars, which was less than the target of $750 million. 

The shortfall was due to two reasons: (i) in FY 2008 there was a decrease in the amount 

of FA disbursements compared to that which was projected; and (ii) the calculated 

leverage ratio decreased from $21:1 to $19:1. The leverage ratio will change over time 

due to changing macroeconomic conditions and because of changes in the size and 

composition of the group of CDFIs that provide leverage information every year. In 

addition, different CDFIs have varying abilities to raise equity and borrow against equity, 

and, moreover, each CDFI invests in varying types of project with different project 

leverage. 
CDFI - 15 

In FY 2008, the CDFI Fund created or maintained 29,539 full-time equivalent jobs in 

underserved communities, a slight improvement over its goal of 28,676 jobs. 

3B – New Markets Tax Credit Program ($4,203,000 from direct appropriations): The 

NMTC Program spurs investment of private capital into a range of privately managed 

investment vehicles called Community Development Entities (CDEs). CDEs apply for 

allocations of NMTCs through annual, competitive allocation rounds. A CDE receiving 

an allocation of tax credits is authorized to provide such credits to private sector investors 

in exchange for equity investments (Qualified Equity Investments or QEIs) in the CDEs. 

The CDE then uses the proceeds from these equity investments to make loans and equity 

investments in economically distressed communities. An investor in the CDE receives 

tax credits against its federal income taxes for making the QEI. The tax credits provided 

to an investor total 39 percent of the cost of the investment and can be claimed over a 

seven-year credit allowance period. 

Through 2009, the CDFI Fund has been authorized to issue to CDEs allocation authority 

totaling $26 billion, including $3 billion that was authorized under the Recovery Act. Six 

award rounds have been completed to date, corresponding to tax credit allocations 

supporting $19.5 billion in private sector capital. In 2009, the CDFI Fund is authorized 

to make a total of $6.5 billion in awards -- $3.5 billion through its standard authorization, 

plus an additional $3 billion that was authorized under the Recovery Act. Of the 

Recovery Act authority, per the authorizing statute, $1.5 billion will be awarded to CDEs 

that applied under the 2008 NMTC allocation round. The CDFI Fund intends to 

announce these awards in May of 2009. The remaining $1.5 billion will be added to the 

pool of allocation authority available in the 2009 round, bringing that total up to $5 

billion. The CDFI Fund intends to announce the awardees under its 20009 round in 

October of 2009. 

The FY 2010 budget request will fund the costs required to administer the NMTC 

Program (because it is a tax credit program, there is no required program funding such as 

with the CDFI Fund’s monetary award programs). 
CDFI - 16 

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan 

New Markets Tax Credit Program Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated ARRA Enacted Request

 Appropriated Resources $3,968 $4,258 $4,120 $67 $4,203 $4,203

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

Total Resources $3,968 $4,258 $4,120 $67 $4,203 $4,203

Budget Activity Total $3,968 $4,258 $4,120 $67 $4,203 $4,203

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual ARRA Target Target

New Markets Tax 

Credit Program 

Community Development Entities' annual 

investments in low-income communities 

($ billions) (Oe) 

2 2.5 3.3 NA 2.5 2.5

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: In FY 2008, the CDFI Fund awarded to CDEs a total of 

$3.5 billion in investment authority, providing recipients the ability to raise this amount 

of capital to invest in low-income communities. As stated above, due to additional 

Recovery Act resources, the CDFI Fund will made additional awards totaling $1.5 billion 

to applicants that had applied in 2008. These new awards will be made in May of 2009. 

As reported in FY 2008 (based on reporting for program year 2007 results), CDEs 

exceeded the anticipated $2.5 billion in Qualified Low-Income Community Investments 

(QLICIs), by closing $3.3 billion in QLICIs. The CDFI Fund will continue to analyze the 

increasing rate that allocatees raise equity and make qualified investments, and use this 

analysis to set appropriate targets going forward. 

As also reported in FY 2008 (based on reporting for program year 2007 results), the 

NMTC Program created or maintained 105,900 jobs. Of this amount, 80,959 jobs 

pertained to real-estate development /rehabilitation projects (i.e. categorized as 

“construction”) and 24,941 jobs were associated to non real-estate projects (i.e. 

categorized as “business-support”). 

3C – Bank Enterprise Award Program ($22,000,000 from direct appropriations): The 

BEA Program was created in 1994 to encourage FDIC-insured financial institutions (i.e., 

banks and thrift institutions) to increase their investments in low-income communities 

and in CDFIs. BEA Program awards are made available through annual application 

rounds. The CDFI Fund instituted program changes in 2009 requiring most awardees to 

reinvest their award dollars in support of CDFIs or in additional qualifying low-income 

community activities. In FY 2010, the CDFI Fund will seek to make additional reforms 

to the BEA Program to enhance the capacity of CDFI banks, and to strengthen 

partnerships between community banks and CDFIs. The CDFI Fund will work with 
CDFI - 17 

Congress, the Office of Management and Budget and other stakeholders in the 

development of proposed reforms, and seek Congressional approval as appropriate. 

3.2.3 – Bank Enterprise Award Program Budget and Performance Plan 

Bank Enterprise Award Program Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated ARRA Enacted Request

 Appropriated Resources $13,286 $12,551 $19,981 $0 $22,000 $22,000

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

Total Resources $13,286 $12,551 $19,981 $0 $22,000 $22,000

Budget Activity Total $13,286 $12,551 $19,981 $0 $22,000 $22,000

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual ARRA Target Target

Bank Enterprise 

Award 

Increase in community development 

activities over prior year for all BEA 

program applicants ($ millions) (Oe) 

318 227 232 NA 202 210 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: The CDFI Fund received 60 applications requesting just 

over $49 million in FY 2008, compared to 61 applications requesting approximately $29 

million in FY 2007. The CDFI Fund selected 52 FDIC-insured institutions to receive 

approximately $20 million in awards. The FY 2008 applicants are headquartered in 19 

states and the District of Columbia, compared to the 18 states represented in the prior 

year. 

 

FY 2008 applicants provided $275.5 million in qualified loans or investments in 

distressed communities, $66.4 million in qualified loans, deposits and technical 

assistance to CDFIs, and $7.5 million in qualified equity investments and grants to 

CDFIs. 

FY 2008 BEA awardees increased their qualified community development activities by 

$232 million over the prior year. 

• $178.1 million increase in loans and investments in distressed communities; 

• $46.5 million increase in loans, deposits, and TA to CDFIs; and 

• $7.5 million increase in equity investments or grants. 

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

financing activity from one year to the next. In FY 2009, the CDFI Fund issued a revised 

interim rule for the BEA Program that requires 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). The CDFI Fund intends to continue to work closely with the Department and 

with the OMB to implement further reforms to this program targeted at enhancing the 
CDFI - 18 

capacity of CDFI banks, and to strengthen partnerships between community banks and 

CDFIs. 

3D – Native Initiatives ($10,000,000 from direct appropriations): Through the Native 

Initiatives, the CDFI Fund assists Native Communities (Native American, Alaskan 

Native and Native Hawaiian communities) to overcome certain barriers to financial 

services. The CDFI Fund achieves these objectives through two principal strategies: (i) 

the NACA Program, which provides financial assistance and technical assistance awards 

to new or existing Native CDFIs, and (ii) a complementary series of training programs, 

called Expanding Native Opportunities, that foster the development of new Native 

CDFIs, strengthen the operational capacity of existing native CDFIs, and guide Native 

CDFIs in the creation of important financial education and asset building programs for 

their communities. 

In FY 2009, the CDFI Fund received an additional $8 million for the NACA Program 

under the American Recovery and Reinvestment Act (the Recovery Act). The CDFI 

Fund developed an implementation plan under which the entirety of the Recovery Act 

awards would be awarded in June of 2009 to CDFIs that had applied under the 

appropriated funding round; with disbursements made within 60 days after award 

announcement. An additional application round was opened to invite other applicants to 

apply for CDFI Program awards made with the funds that were initially appropriated. 

These awards are anticipated to be made in September of 2009. 

3.2.4 – Native Initiatives Budget and Performance Plan 

Native Initiatives Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated ARRA Enacted Request

 Appropriated Resources $5,416 $5,816 $7,327 $8,000 $8,500 $10,000

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

Total Resources $5,416 $5,816 $7,327 $8,000 $8,500 $10,000

Budget Activity Total $5,416 $5,816 $7,327 $8,000 $8,500 $10,000

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Budget Activity Performance Measure Actual Actual Actual ARRA Target Target

Native Initiatives Annual percentage increase in the total 

assets of Native CDFIs (%) (Oe) 

182 19 19 NA 15 15

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

In FY 2008 NACA reported a 19% increase in the total assets of Native CDFIs from the 

target of 15%. 
CDFI - 19 

3E – Capital Magnet Fund ($80,000,000 from direct appropriations): The Capital 

Magnet Fund was enacted through the Housing and Economic Recovery Act of 2008. 

Through the Capital Magnet Fund, the CDFI Fund will carry out a competitive grant 

program for CDFIs and nonprofit organizations (if their principal purposes is the 

development or management of affordable housing) to attract private capital for increased 

investment in affordable housing and economic development projects (such as day care 

centers, workforce development centers, and health care clinics) in extremely low-, very 

low-, and low-income communities CMF will complement the CDFI Fund’s existing 

programs to stabilize or revitalize a low-income and underserved rural areas. The Act 

established the Capital Magnet Fund as a program that will be administered by the CDFI 

Fund. 

3.2.5 – Capital Magnet Fund Budget and Performance Plan 

Capital Magnet Fund Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated ARRA Enacted Request

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

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

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

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

Description of Performance: Performance measures for this program are under 

development. 

3F – Administration ($13,797,000 from direct appropriations): This budget activity 

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

the grant and tax credit programs it administers. This includes finalizing the terms of 

assistance agreements with awardees, making disbursements, and monitoring awardee 

compliance with the terms of their three-year award assistance and seven-year allocation 

agreements. 

The CDFI Fund administration will enhance compliance monitoring of prior year 

awardees in each CDFI Fund program in FY 2010. 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 engages in compliance site visits to further review the activities and recordkeeping of CDFIs and CDEs. 
CDFI - 20 

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

CDFI Fund’s programs as well determine how changing economic conditions have 

affected the operating environment of the CDFI Fund’s programs and altered the supply 

and demand for capital and financial services in underserved and economically distressed 

communities. 

In FY 2010, 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. The CDFI Fund will transition to the Departmental Offices’ IT LAN. 

3.2.6 – Administration Budget and Performance Plan 

Administration Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated ARRA Enacted Request

 Appropriated Resources $9,429 $9,410 $8,997 $1,933 $10,550 $13,797

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

Total Resources $9,429 $9,410 $8,997 $1,933 $10,550 $13,797

Budget Activity Total $9,429 $9,410 $8,997 $1,933 $10550 $13,797

Description of Performance: No specific performance goals/measures are presented for 

this budget activity as the work of the offices within this budget activity is captured 

within the other budget activities. 

The CDFI Fund has made significant progress in enhancing program administration 

business processes, enabling the fund to make award disbursements more quickly and at 

lower cost. Award disbursements during the first quarter of FY 2008 were 63% higher 

than the previous first quarter of FY 2007 for the CDFI Program. Disbursements for the 

NACA Program also increased 31% over the prior year period. These increases reflect 

improvements in business efficiencies in the disbursement system, ensuring awardees 

receive funds more quickly. 

In FY 2009, the CDFI Fund anticipates further efficiency gains in award disbursements 

as a result of the waiver of the matching funds requirement included in the FY 2008 

American Recovery and Reinvestment Act (Recovery Act) for CDFI and NACA 

Program awardees in that year. 

 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/
CDFI - 21 

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. 

Recruitment and Diversity 

Beginning in FY 2008 the CDFI Fund began backfilling its vacant positions. A number 

of positions were reallocated to the CDFI Fund’s Compliance Monitoring and Evaluation 

unit to emphasize the need to increase monitoring awardee and allocatee compliance with 

the terms of their assistance agreements, including a greater emphasis on a risk-based 

approach which will entail more site visits. 

The CDFI Fund’s Office of the Director established formal recruitment strategies, 

policies and procedures intended to provide guidance to managers in recruiting the best 

candidates in the public and private sector. These “best practice” procedures include 

structured interviews, standardized questions, and a diverse interview panel. The CDFI 

Fund has seen a significant difference in the quality of the candidates it is recruiting, and 

these procedures will continue to be used throughout FY 2010. 

Given the diversity of the CDFI Fund program’s and constituents, the CDFI Fund is 

dedicated to recruiting a diverse pool of employees to replicate the populations it serves. 

As part of the Director’s initiatives during FY 2009 and FY 2010, the CDFI Fund will be 

reaching out to organizations such as the Hispanic National Internship Program, the 

Washington Internships for Native American Students (WINS), Historical Black Colleges 

and Universities, and to trade organizations who represent those with disabilities. The 

CDFI Fund is also dedicated to recruiting individuals from the community and economic 

development community who share a common interest in the customers it serves. With 

the assistance of Departmental Offices, Office of Human Resources, the CDFI Fund has 

taken the opportunity to utilize a number of excepted service opportunities to recruit good 

talented individuals to help further its mission and its desire to increase its diversity. 

In addition to recruiting diverse employees, the CDFI Fund continues to ensure that 

employees are up-to-date with the proper training in diversity, in addition to sexual 

harassment, EEO, ethics and integrity awareness training. As part of the CDFI Fund’s 

dedication to its employees, all managers are required to attend a series of sessions that 

provides extensive information on all the topics listed above. 
CDFI - 22 

Employee Retention and Satisfaction 

In FY 2008, the CDFI Fund implemented an Employee Recognition and Award program 

designed to establish continual improvement of the Fund’s programs and operations 

through motivation and reward of its employees in keeping with its vision: an America 

win which all people have access to affordable credit, capital and financial services. The 

Employee Recognition and Award Program is designed to acknowledge employee 

contributions over and above that expected with “Quality” performance and is to be used 

in conjunction with the performance awards granted as part of the annual performance 

review process. 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. 

The CDFI Fund Director has also continued monthly “Brown Bag” lunches with line 

staff in order to stay connected to their needs and thoughts. 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. 

Beginning in FY 2007, the Office of the Director began establishing a collaborative 

relationship with the Departmental Offices National Treasury Employees Union (NTEU) 

Chapter. Today, employees have been properly designated as bargaining and nonbargaining unit employees so that those who are bargaining eligible may take advantage 

of the services provided to them. CDFI-NTEU relations continue to be productive and 

collaborative. Both entities have worked closely to respond to employee concerns and 

needs. 

Organizational Effectiveness 

During FY 2007 and FY 2008, the CDFI Fund underwent an awards process review to 

standardize policies and procedure and to bring more efficiency into the organization. In 

late FY 2008 the CDFI Fund implemented the new programmatic Standard Operating 

Procedures. Since implementation the CDFI Fund has significantly reduced the time it 

takes to process awards, particularly for the FY 2009 application rounds. The CDFI Fund 

anticipates an even better outcome during FY 2010. 

As part of a comprehensive skills assessment conducted by an outside contractor of CDFI 

Fund Employees, the CDFI Fund is currently implementing several recommendations 

that will continue into FY 2010. The CDFI Fund is currently working with an 8 (a) 

vendor identified by Treasury’s office of Small and Disadvantaged Business Utilization 

to provide position description consultation for all positions at the CDFI Fund to 

accurately reflect the roles and responsibilities of its employees. The vendor has been 

tasked with developing a position description plan that will provide numbers and types of 

positions, career ladder clarification, accurate roles and responsibilities and levels of 

authority, correct series numbers (if needed), statements of differences, and classification 

principles. 
CDFI - 23 

In addition to reviewing position descriptions, the CDFI Fund is currently developing 

mandatory Individual Development Plans (IDP) for all employees to assist them with 

their career goals and to achieve mission critical programs. The IDP’s will correlate with 

the new performance plans established by Departmental Offices in FY08 and the newly 

established position descriptions. This project is intended to assist with organizational 

efficiency during FY 2010, which will be a busy and successful year for the CDFI Fund. 

The Office of the Director is also working with an independent training organization to 

provide coaching and mentoring to all CDFI Fund managers. In addition to providing 

coaching and mentoring, the organization will provide 360 degree feedback simulations 

and will concentrate on personal skills, style and communication. The CDFI Fund is 

dedicated to providing training for the further development of their employees while 

achieving the goal of providing excellent service to its customers. 
CDFI - 24 

4.1 – Summary of IT Resources Table Dollars in Thousands 

Information Technology InvestmentsMajor IT Investments / Funding Source Budget Activity

FY 2007 &

Earlier

Enacted

FY 2008

Enacted

FY 2009

President's

Budget

None

Subtotal, Major IT Investments 0 0 0 

Community Investment Impact System (CIIS)

Community Development Financial

Institutions and New Markets Tax Credit

Program 670 414 -38.2% 427 3.1% 

Non-Major IT Investments 670 414 -38.2% 427 3.1% 

CDFI Infrastructure (Telecommunications)

Community Development Financial

Institutions, New Markets Tax Credit

Program, Bank Enterprise Awards

Program, and Native Initiatives Program 350 0 -100.0% 0 

CDFI Infrastructure (Office Automation)

Community Development Financial

Institutions, New Markets Tax Credit

Program, Bank Enterprise Awards

Program, and Native Initiatives Program 3,440 1,966 -42.8% 2,179 10.8% 

CDFI Infrastructure (IT Security)

Community Development Financial

Institutions, New Markets Tax Credit

Program, Bank Enterprise Awards

Program, and Native Initiatives Program 360 364 1.1% 0 -100.0% 

CDFI Infrastructure (Infrastructure)

Community Development Financial

Institutions, New Markets Tax Credit

Program, Bank Enterprise Awards

Program, and Native Initiatives Program 290 335 15.5% 335 0.0% 

Infrastructure Investments $4,440 $2,665 -40.0% $2,514 -5.7% 

None

Enterprise ArchitectureTotal IT Investments $5,110 $3,079 -39.7% $2,941 -4.5% 

% Change from

FY08 to FY09

% Change from

FY07 to FY08
CDFI - 25 

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 does, however, have a Chief Information Officer 

(CIO) Operating Plan which is administered by the CIO and ensures all decision making 

is integrated into the organizations planning, operations and budgeting processes. The 

operating plan utilizes existing processes and structures such as the Director's Operations 

Committee and the Technology Investment Board Executive Committee to ensure that 

the CDFI Fund's IT investments are tied to the organization's strategic plan, support the 

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

As described previously, the CDFI Fund faces many challenges in administration of its 

programs and plans to take steps in FY 2010 to address a number of these challenges. 

Specifically, the CDFI Fund is transitioning its award administration activities to the 

Grants Management Line of Business (GMLoB), and moving toward a shared service 

provider model for financial management and information technology services. As part 

of this transition process, the CDFI Fund will conduct a complete evaluation of its award 

activities, from application to award, to determine which activities can be transitioned, 

and the most efficient process for making the transition. 

The CDFI Fund's CIO is also responsible for ensuring that the agency's IT strategic goals 

conform to required legislation and Treasury and Presidential goals, such as the Federal 

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

Line of Business. This information, as well as budget and project management 

information for the Capital Planning and Investment Control process, is coordinated with 

the Treasury CIO office as part of the overall Treasury IT management process. 
CDFI - 26 

4.2 – Program Assessment Table 

Program Evaluation

Program Name: CDFI Fund: Finance and Technical Assistance

Year Evaluated: FY 2004

Rating: Adequate

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. The Fund has built the IT system needed to set a target for the second long-term measure.

5. Conduct an independent evaluattion of the program.

3. The Fund conducted the analysis needed, set the baseline for the efficiency measure and began measuring progress in FY 

2006.

5. A contract to evaluate the program was awarded in FY 2005 and is currently underway.

4. The Fund made disaggregated data available to the publid in January 2005 and will continue to do so annually.

2. Set a target ad timeframe for the second long-term measure.

3. Establish a baseline for the efficiency measure, set a target, and measure progress in achieving this target.

1. The CDFI Program is not unique because several states administer similar programs and CDFIs can use private sector 

equity investment to accomplish activities they otherwise would accomplish with CDFI Fund awards.

1. The Fund is not taking any action related to the duplication/redundancy finding because:

 a. Fewer than 10 states administer CDFI programs and none of these state programs fully meets the capital needs of the 

CDFIs in its state. Furthermore, CDFIs in 40 states do nothave access to any state CDFI program.

 b. There are too few private sector equity investments available to meet CDFIs' needs for capital.

4. Make disaggregated program performance data available to the public.
CDFI - 27 

Program Evaluation

Program Name: New Markets Tax Credit (NMTC)

Year Evaluated: FY 2004

Rating: Adequate

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. NMTC Program allocatees 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.

4. Conduct an independent evaluattion of the program.

3. The Fund conducted the analysis needed, set the baseline for the efficiency measure and began measuring progress in FY 

2006.

4. In FY 2005 the Fund issued an RFP for an independent evaluation of the program and the multi-year evaluation began in 

the last quarter for FY 2006.

2. Set targets for the annual performance measures and measure performance in achieving them.

3. Establish a baseline for the efficiency measure, set a target, and measure progress in achieving this target.

1. The program is not unique because other federal, state and local tax credit programs are available and because numerous 

programs at HUD (CDBG) and Commerce (EDA) augment the NMTC Program goal of improving low-income communities.

1. 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.

For a complete list of program results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html