Community Development Financial Institutions Fund 

Program Summary by Budget Activity 

(Dollars in thousands) 

 Community Development Financial Institutions 

Program 

 Bank Enterprise Award Program 

 Native Initiatives 

 Capital Magnet Fund 

Administration 

 New Markets Tax Credit Program Administration* 

 Financial Education and Counseling 

 Hawaii Financial Ed and Counseling 

 Bank on USA Initiative 

 Healthy Food Financing Initiative 

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

N/A $22,000 $25,000 $0 ($25,000) (100.0%)

$8,000 $8,500 $12,000 $12,000 $0 0%

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

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

$67 $4,200 $4,203 Inc. Inc. Inc.

N/A $2,000 $1,000 $0 ($1,000) (100.0%)

N/A N/A $3,150 $0 ($3,150) (100.0%)

N/A N/A N/A $50,000 $50,000 100.0%

N/A N/A N/A $25,000 $25,000 100.0% 

*NMTC administration is rolled up into the Administration budget activity for the FY 2011 Budget request 

Appropriation FY 2009 

ARRA Enacted 

FY 2010 

Enacted 

FY 2011 

Request $ Change % Change

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

Explanation of Request 

The FY 2011 request for the Community 

Development Financial Institutions (CDFI) 

Fund) will ensure that the CDFI Fund meets 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. 

Through its various programs and initiatives, 

the CDFI Fund enables locally based 

organizations to further goals such as 

economic development that supports the 

expansion of affordable housing, small 

businesses, community facilities, and 

community development financial services. 

Total resources required to support CDFI Fund 

activities for FY 2011 are $250,000,000 from 

direct appropriations. 

Purpose of Program 

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. The CDFI Fund’s 

investments work toward building private 

markets, creating healthy local tax revenues 

(through job creation, business development, 

commercial real estate and housing 

development and homeownership), and 

empowering residents by stimulating the 

creation and expansion of diverse community 

development financial institutions (CDFIs, 

which provide basic banking services to 

underserved communities and financial 

literacy training). The CDFI Fund provides 

infusions of capital to institutions that serve 

economically distressed communities and lowincome individuals. The CDFI Fund’s 

activities leverage millions of private sector 

investment dollars from banks, foundations, 

and other funding sources. 

The CDFI Fund will implement two new 

initiatives beginning in FY 2011. 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. The Healthy Food Financing Initiative 

will support CDFIs for the purpose of 

increasing the availability of affordable, 

healthy foods in underserved urban and rural 

communities, particularly through the 

Department of the Treasury - Budget in Brief FY 2011 Page 37
(Dollars in thousands) 

Appropriation Amount 

FY 2010 Enacted 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) 

Total FY 2011 Base 246,888

Subtotal FY 2011 Changes to Base $138 

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: $112,262 

Bank on USA Initiative 50,000 

Healthy Food Financing Initiative 25,000 

CDFI Program 32,400 

Administration 4,862

New Markets Tax Credit Program Inc. 

Total FY 2011 Budget Request 250,000 

Subtotal FY 2011 Program Changes $3,112 

development or equipping of grocery stores 

and other healthy food retailers. 

CDFI FY 2011 Budget Highlights

FY 2011 Budget Adjustments 

FY 2010 Enacted 

The FY 2010 enacted direct appropriation for 

the CDFI Fund is $246,750,000. 

Maintaining Current Levels (MCLs) 

Adjustments Necessary to Maintain Current 

Levels +$289,000 / +0 FTE 

Funds are requested for: FY 2011 cost of the 

January 2010 pay increase of $54,000; 

proposed January 2011 pay raise of $128,000; 

the cost of the increase in the FERS agency 

contribution percentage of $22,000, and nonlabor related items such as contracts, travel, 

supplies, equipment and GSA rent adjustments 

of $85,000. 

Efficiencies Savings 

Procurement Savings -$151,000 / +0 FTE 

Achieve procurement savings by reducing 

non-competitive actions and implementing the 

use of social-economic programs such as 8(a) 

and small business set-asides. Other methods 

used to achieve savings are proper acquisition 

planning, strategic sourcing (use of agency and 

government-wide contract vehicles) in order to 

obtain better pricing for commonly acquired 

goods and services. 

Program Decreases 

Capital Magnet Fund (CMF) -$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 (BEA) 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 Ed 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 

Department of the Treasury - Budget in Brief FY 2011 Page 38
to improve the financial awareness of the 

underbanked and unbanked. 

Program Increases 

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

The FY 2011 budget request seeks to increase 

funding to support the increased demand for 

CDFI Program awards. 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. 

CDFIs use these awards to increase their 

overall capacity, and their ability to offer 

loans, investments and other financial services 

in underserved communities. 

Through the CDFI Program, the CDFI Fund 

will continue and expand the CapacityBuilding Initiative launched in 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. 

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. 

Healthy Food Financing Initiative 

+$25,000,000 / +0 FTE 

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. 

Administration +$4,863,000 / +6 FTE 

Resources will be realigned to cover additional 

administrative support costs for IT 

enhancements, to 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 and 

the Healthy Food Financing Initiative. The 

CDFI Fund will set aside funds to cover costs 

associated with the projected move from its 

current location, prior to the lease expiration in 

early 2012, and to retain and re-allocate 

Recovery Act staff to monitor a growing 

portfolio of awards. 

Additionally, resources will be utilized to 

administer and oversee a rapidly growing 

number of NMTC allocations and Community 

Development Entities (CDEs), in addition to 

assessing how changing economic conditions 

have affected the investment environment for 

NMTCs. 

Explanation of Budget Activities 

Salaries and Expenses 

Community Development Financial 

Institutions Program ($140,000,000 from 

direct appropriations) 

The CDFI Program uses federal resources to 

invest in and build the capacity of CDFIs to 

serve low-income people 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 

Department of the Treasury - Budget in Brief FY 2011 Page 39
communities and financial literacy training). 

The CDFI Program also provides technical 

assistance awards to help start-up and existing 

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 (included in 

Administration appropriations) 

The NMTC Program attracts private sector 

capital into low-income communities. 

Community Development Entities apply to the 

CDFI Fund for allocations of tax credits in 

annual competitive rounds. The CDEs, in 

turn, provide tax credits to private investors in 

low-income communities. In addition to 

awarding tax credits, the CDFI Fund monitors 

CDE compliance with the terms of their 

allocation agreements. The amount requested 

in this account funds the administrative 

expenses of the NMTC Program. 

Native Initiatives ($12,000,000 from direct 

appropriations) 

The Native Initiatives comprises two 

components: (i) the Native American CDFI 

Assistance (NACA) Program through which 

financial assistance and technical assistance 

awards are provided to build the capacity of 

new or existing Native CDFIs serving Native 

Communities, and (ii) complementary 

capacity-building initiatives that seek to foster 

the development of Native CDFIs through 

training and technical assistance. The CDFI 

Fund achieves these objectives through the 

NACA Program, which provides financial 

assistance and technical assistance awards to 

new or existing Native CDFIs, and a 

complementary series of training programs 

called Expanding Native Opportunities. These 

training programs foster the development of 

new Native CDFIs, strengthen their 

operational capacity, and guide them in the 

creation of important financial education and 

asset building programs for their communities. 

Administration ($23,000,000 from direct 

appropriations) 

Administration encompasses the CDFI Fund’s 

operational support and management activities 

for each of the award 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. In addition, resources 

will be utilized for a business application 

enhancement upgrade, external program 

research evaluations, and to 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 costeffective manner. 

Department of the Treasury - Budget in Brief FY 2011 Page 40
CDFI Performance by Budget Activity 

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. 

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 

Budget 

Activity Performance Measure 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Actual Actual Target Actual Target 

Met? Target Target 

CDFI Administrative costs per Financial 

Program Assistance (FA) application processed 

(E) 

7,180 7,200 6,920 3,283 Y DISC DISC 

CDFI Dollars of private and non-CDFI Fund 

Program investments that CDFIs are able to 

leverage because of their CDFI Fund 

Financial Assistance ($ millions) (Oe) 

778 621 635 1,298 Y 600* 700* 

CDFI Number of full-time equivalent jobs 

Program created or maintained in underserved 

communities by businesses financed by 

CDFI Program Awardees (Oe) 

35,022 29,539 30,000 70,260 Y 85,000 85,000 

New Markets Community Development Entities' 

Tax Credit (CDEs) annual investments in lowProgram income communities ($ billions) (Oe) 

2.5 3.3 2.5 3.6 Y 2.5 2.5 

Native Administrative costs per number of 

Initiatives Native American CDFI Assistance 

(NACA) applications processed ($)(E) 

13,510 10,990 9,090 3,162 Y DISC DISC 

Native Annual percentage increase in the total 

Initiatives assets of Native CDFIs (%) (Oe) 

19 19 15 23 Y 15 19 

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

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

Description of Performance 

investments in low-income communities. As 

reported in FY 2009 (based on reporting from 

program year 2008 results), cumulative 

investments in low-income 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). 

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. 

Department of the Treasury - Budget in Brief FY 2011 Page 41