Community Development

Financial Institutions Fund

FY 2016 

President’s Budget 

February 2, 2015
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Table of Contents 

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

1A – Mission Statement.................................................................................................................... 3

1.1 – Appropriations Detail Table .................................................................................................... 3

1B – Vision, Priorities and Context.................................................................................................. 3

1C – FY 2015 and FY 2016 Goals and Priorities............................................................................. 5

Section 2 – Budget Adjustments and Appropriation Language......................................................8

2.1 – Budget Adjustments Table ..............................................................................8

2A – Budget Increases and Decreases Description........................................................................... 8

Section 3 – Budget and Performance Plan ......................................................................................14

3A – Administration ....................................................................................................................... 14

3.1.2 – Community Development Financial Institutions Program Budget and Performance Plan 16

3C – New Markets Tax Credit Program ......................................................................................... 16

3.1.3 – New Markets Tax Credit Program...................................................................................... 17

3D – Bank Enterprise Award Program........................................................................................... 17

3.1.4 – Bank Enterprise Award Program........................................................................................ 18

3E – Native American CDFI Assistance Program.......................................................................... 18

3.1.5 – Native American CDFI Assistance Program...................................................................... 19

3F – Healthy Food Financing Initiative .......................................................................................... 19

3.1.6 – Healthy Food Financing Initiative ...................................................................................... 20

3G Capital Magnet Fund Program.................................................................................................. 20

Section 4 – Supplemental Information.............................................................................................22

4A – Summary of Capital Investments........................................................................................... 22

4B – CDFI Bond Guarantee Program............................................................................................. 23

4.1 – Resource Detail Table............................................................................................................ 23
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Section – Purpose

1A – Mission Statement

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

economic opportunity and promote community development investments for underserved 

populations and in distressed communities in the United States.

1.1 – Appropriations Detail Table

Dollars in thousands

CDFI Fund FY 2014 FY 2015 FY 2016 FY 2015 to FY 2016 

Appropriated Resources Enacted Enacted Request $ Change % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

CDFI Program 0 146,364 0 152,400 0 157,593 0 5,193 NA 3.41%

Bank Enterprise Award Program 0 18,000 0 18,000 0 0 0 -18,000 NA -100.00%

Native American CDFI Assistance 

Program 0 15,000 0 15,000 0 16,000 0 1,000 NA 6.67%

Administration* 76 24,636 79 23,100 87 24,930 8 1,830 10.13% 7.92%

Healthy Food Financing Initiative 0 22,000 0 22,000 0 35,000 0 13,000 NA 59.09%

Subtotal New Appropriated Resources 76 $226,000 79 $230,500 87 $233,523 8 $3,023 10.13% 1.31%

Other Resources:

Reimbursables 0 206 0 0 0 $0 0 0 NA 0.00%

User Fees* 0 0 0 249 0 986 0 737 NA 295.98%

Recovery from Prior Years 0 4,200 0 5,200 0 5,200 0 0 NA 0.00%

Unobligated Balances from Prior Years 0 24,817 0 10,856 0 5,500 0 -5,356 NA -49.34%

Subtotal Other Resources 0 $29,223 0 $16,305 0 $11,686 0 -4,619 NA -28.33%

Total Budgetary Resources 76 $255,223 79 $246,805 87 $245,209 8 -1,596 10.13% -0.65%

*This request reflects authorization of the Bond Guarantee Program in FY 2015.

1B – Vision, Priorities and Context

The vision of the CDFI Fund is to empower America’s economically underserved and distressed 

communities. Our priority is to advance the Department of the Treasury’s Strategic Goal No. 1:

Promote domestic economic growth and stability while continuing reforms of the financial system. 

The CDFI Fund is uniquely positioned as the federal government entity whose primary mission is to 

build the capacity of Community Development Financial Institutions (CDFIs) to provide loans, 

investments, business counseling, basic banking services, and financial literacy training to 

underserved and distressed communities.

Since its creation in 1994, the CDFI Fund has awarded almost $2.1 billion to CDFIs, community 

development organizations, and insured depository institutions through the CDFI Program, the 

Native American CDFI Assistance Program (NACA Program), and the Bank Enterprise Award 

Program (BEA Program). In addition, the CDFI Fund has allocated $40 billion in New Markets Tax 

Credit (NMTC) investment authority through the NMTC Program to Community Development 

Entities (CDEs), awarded $80 million through the Capital Magnet Fund (CMF), and awarded $9.1 

million through the Financial Education and Counseling (FEC) Pilot Program. Under FY 2013 and 

FY 2014 authority, through the CDFI Bond Guarantee Program, the Department of the Treasury 

provided four bond guarantees, totaling $525 million, to Qualified Issuers that provided bond loans 

to eight Eligible CDFIs.
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The CDFI Fund continues to experience growth in the demand for its award programs: 

• CDFI Program -- For the FY 2014 funding round of the CDFI Program, the CDFI Fund received 

336 applications requesting more than $393 million in total funding. In addition, the CDFI 

Fund received applications from 29 eligible organizations requesting over $84 million for the 

Healthy Food Financing Initiative (HFFI-FA). The CDFI Fund made 152 Financial Assistance 

(FA) and Technical Assistance (TA) awards totaling over $160 million and 12 HFFI-FA awards 

totaling $22.4 million. 

• NACA Program -- For the FY 2014 NACA Program funding round, the CDFI Fund received 46 

applications requesting more than $22 million in funding, and made 33 awards totaling $12.2 

million. 

• NMTC Program -- For the CY 2014 NMTC Program allocation round, the CDFI Fund received 

263 applications requesting approximately $219.9 billion in total allocation authority, and 

anticipates making an award announcement in the spring totaling approximately $3.5 billion. 

• BEA Program -- For the FY 2014 BEA Program funding round, the CDFI Fund received 98 

applications requesting approximately $211 million in awards, and made 69 awards totaling 

approximately $18 million. 

• CDFI Bond Guarantee Program -- For the FY 2013 round of the CDFI Bond Guarantee Program, 

the CDFI Fund received 8 guarantee applications requesting $825 million in bond guarantees, 

and the Department of the Treasury provided guarantees for a total of $325 million. For the FY 

2014 round of the program, the CDFI Fund received 3 guarantee applications, seeking a total of 

$415 million in guarantees and the Department of Treasury provided guarantees for $200 

million.

Progress towards Implementation of FY 2014 Priorities

In FY 2014, the CDFI Fund focused on a number of priority initiatives related to its business 

processes and award programs, to economically empower America’s underserved and distressed 

communities and advance the Department of the Treasury’s Strategic Goal 1 – Promote domestic 

economic growth and stability while continuing reforms of the financial system. 

Priority 1: CDFI Program Evaluation: The CDFI Program Evaluation has been completed by the 

external consultants and is currently undergoing internal review. The Evaluation is scheduled for 

release by February, 2015. 

Priority 2: Expanding CDFI Investments in Underserved Areas: In FY 2014, the CDFI Fund 

launched a new two-year capacity building initiative called “Expanding CDFI Investments in 

Underserved Areas.” This initiative was developed in response to a Congressional request in the

FY 2014 appropriation to expand access in underserved communities to CDFI Fund programs. The 

initiative will provide advanced training and technical assistance, including one-on-one assistance, 

peer cohort forums, and advanced implementation forums to assist established, as well as new and 

emerging, CDFIs seeking to increase investment activity in underserved markets. CDFIs will also 

have access to a virtual resource bank containing research and tools that can be used to increase their 

knowledge. Course training materials, third-party expert documents, and other resources will be 

made available to the public.
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Priority 3: Native CDFI Capacity and Sustainability: In FY 2014, the CDFI Fund launched a new 

two-year capacity building initiative called “Native CDFI Capacity and Sustainability.” This 

initiative will identify the needs of Native CDFIs, common challenges facing Native CDFIs, and 

technical assistance to address those challenges. The intent of this contract is to develop a 

multifaceted training and technical assistance program to support Native CDFIs’ efforts to become

sustainable and achieve greater impact in Native Communities. Further, the CDFI Fund will conduct 

a study on access to capital for Native Communities in FY 2015 for release in FY 2016. The data 

compiled for the study will be released in FY 2015.

Priority 4: Modernize Information Technology: The CDFI Fund awarded a contract to a small 

business to develop and implement its Awards Management Information System (AMIS). The AMIS 

will replace existing awards management systems (including compliance and reporting) over the next 

two years to better meet current and future business requirements.

Priority 5: Implement the OMB Supercircular: The CDFI Fund performed an analysis to comply 

with the requirements of OMB’s Supercircular. The purpose of the Supercircular is to streamline the 

existing guidance (circulars A-110, A-87, A-21, A-89, A-102, A-122, and A-133) and make 

additional changes to increase transparency of federal financial assistance. The Supercircular will 

result in changes to award-related documents and processes throughout the award life cycle, 

including pre-award and close-out. 

Priority 6: Strengthen Loan Portfolio Management and Monitoring: The CDFI Fund initiated the 

development of a portfolio management and monitoring system for the CDFI Bond Guarantee 

Program. The CDFI Fund will collect institution and loan level data, help analyze the data, and 

produce standard, ad-hoc, and OMB Circular A-129 compliant reports to inform decisions about 

overall program performance.

Priority 7: Implement CDFI Program Risk Rating Model: This project was launched in March 2014 

with the objective of developing risk-rating capabilities to meet a range of CDFI Fund needs across 

business units, including:

• Assessing organizational risk of CDFI applicants’ portfolios and management capabilities;

• Building a robust compliance risk assessment framework to identify emerging compliance risks 

among awardees; and

• Assessing CDFI industry-wide risk by awardee institution type, asset size, and geographical 

concentration, and other factors affecting industry performance.

The risk rating capability will provide a risk analysis of CDFIs to meet or ensure compliance with 

OMB requirements for federal loan and credit programs.

1C – FY 2015 and FY 2016 Goals and Priorities

In FY 2015 and FY 2016, the CDFI Fund will continue to implement the CDFI Program, the NACA 

Program, the Healthy Food Financing Initiative (HFFI), the NMTC Program, and CDFI Bond 

Guarantee Program. 
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Specifically, during FY 2015, the CDFI Fund will:

• Provide up to $750 million in guarantees for bonds issued under the CDFI Bond Guarantee 

Program;

• Continue efforts to develop and implement risk-based assessment tools to inform decisions and 

determine risks and overall trends in performance;

• Continue its implementation of the AMIS to automate business processes, strengthen internal 

operations and enhance reporting capabilities;

• Continue to cultivate intergovernmental, non-profit, and private partnerships to leverage 

resources for CDFIs around the country; and 

• Initiate an evaluation of the BEA Program and compliance research for the NMTC Program.

Fiscal Year 2016: The Department of the Treasury requests the following for FY 2016:

• $157.59 million for the CDFI Program to provide FA and TA awards. Through the CDFI Program, 

the CDFI Fund awards grants and loans to invest in and build the capacity of CDFIs to serve lowincome communities lacking adequate access to affordable financial products and services. The 

proposed FY 2016 Budget supports FA and TA awards to CDFIs to further goals that include, 

among others:

- Economic development (job creation, small business lending, and commercial real estate 

development);

- Affordable housing development (housing development and homeownership); 

- Provision of financial services (such as basic banking services to underserved communities); 

and

- Provision of development services (such as financial literacy or homebuyer counseling and 

education).

• $35 million for HFFI awards to CDFIs to expand financing for healthy food options in underserved

urban and rural communities, particularly through the development or equipping of grocery 

stores and other healthy food retailers. 

• $16 million to provide FA and TA awards through the NACA Program, which provides awards 

and training to CDFIs that primarily serve Native Communities and to entities proposing to 

become or create Native CDFIs, thereby increasing access to credit, capital, and financial 

services in Native Communities. Of this amount, $1 million would be used for technical 

assistance to build additional capacity for Native CDFI’s.

• $24.93 million in administrative funding to support a variety of purposes, including:

- Staffing and resource demands created by significant growth across all programs, including 

the NMTC, the CDFI Bond Guarantee program and Capital Magnet Fund;

- Administration of non-monetary programs and activities, including compliance monitoring 

and CDFI certification; 

- Continuation of evaluations of the effectiveness of CDFI Fund programs; and
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- Enhancement of existing management and information systems and improvement of 

operational efficiency and effectiveness.

Government Reorganization: The President is again asking Congress to revive an authority 

enabling him to submit fast-track proposals to reorganize or consolidate Federal programs and 

agencies in order to reduce the size of Government or cut costs. The Budget includes a variety of 

proposed reforms across government designed to drive efficiency and accountability, prevent 

duplication, and make government work better and smarter for the American people. One of these 

reorganizations the President would propose with this authority reiterates his previous proposal to

consolidate Federal business and trade programs into one more efficient and effective department 

dedicated to promoting U.S. competitiveness, exports, and American businesses and jobs. The 

proposal would integrate the six Federal agencies that focus primarily on business and trade, along 

with other related programs. These include the Department of Commerce’s core business and trade 

functions, the Small Business Administration, the Office of the U.S. Trade Representative, the 

Export-Import Bank, the Overseas Private Investment Corporation, and the U.S. Trade and 

Development Agency, as well as rural business programs at the Department of Agriculture, 

Treasury’s Community Development Financial Institutions Fund, and statistical agencies at the 

Department of Labor and National Science Foundation. To strengthen the new department’s focus 

on business and economic growth, the National Oceanic and Atmospheric Administration would be 

consolidated into the Department of Interior, strengthening stewardship and conservation efforts and 

enhancing scientific resources. The Budget schedules for these agencies and programs continue to 

reflect them in their current alignment.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Community Development Financial Institutions Fund FTE Amount

FY 2015 Enacted 79 $230,500 

Changes to Base:

Maintaining Current Levels (MCLs): - $437 

Pay raise - $100 

Pay annualization - $26 

FERs - $38 

Non-pay - $273 

Non-Recurring Costs: - ($523)

 Research and Evaluation (Data Collection) - ($523)

Efficiency Savings: - ($84)

 Travel Savings - ($84)

Subtotal Changes to Base - ($170)

Total FY 2016 Base 79 $230,330 

Program Changes:

Program Increases: 8 $21,193 

Community Development Financial Institutions Program - $5,193 

Native American CDFI Assistance Program - $1,000 

Healthy Food Financing Initiative - $13,000 

Administration - Capital Magnet Fund 8 $2,000 

Program Decreases: - ($18,000)

Bank Enterprise Award - ($18,000)

Total FY 2016 Request 87 $233,523 

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) .........................................................+$437,000 / +0 FTE

Pay-Raise +$100,000 / +0 FTE 

Funds are requested for the proposed January 2016 pay-raise.

Pay Annualization +$26,000 / +0 FTE 

Funds are requested for annualization of the January 2015 pay-raise.

FERs Contribution Increase +$38,000 / +0 FTE 

Funds are requested for increases in agency contributions to the Federal Employee Retirement 

System based on updated actuarial estimates.

Non-Pay +$273,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor costs such as travel, contracts, rent, 

supplies, and equipment.

Non-Recurring Cost ......................................................................................-$523,000 / +0 FTE

Administration - Research and Evaluation (Data Collection) -$523,000 / +0 FTE 

The CDFI Fund will non-recur a portion of research and evaluation funding.
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Efficiency Savings.............................................................................................-$84,000 / +0 FTE

Administration -$84,000 / +0 FTE

The CDFI Fund will reduce travel costs through the use of fewer travelers, video conference calling, 

and hosting of award announcements locally.

Program Increases ...............................................................+$21,193,000 / +8 FTE

CDFI Program +$5,193,000 / +0 FTE

The CDFI Fund will increase the amount and number of FA and TA awards. An increase of $5.19

million to the CDFI Program will result in 5 - 6 additional FA awards to increase the number of 

business and microenterprise loans, home improvement and purchase loans, residential real estate 

transactions, and other consumer loans and products offered by CDFI awardees.

Native American CDFI Assistance Program +$1,000,000 / +0 FTE

The CDFI Fund will increase the NACA Program by $1 million in order to increase participation by 

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

Healthy Food Financing Initiative +$13,000,000 / +0 FTE

The CDFI Fund will increase the amount and number of FA awards for the Healthy Foods Financing 

Initiative. An increase of $13 million will result in 6-7 more awards to expand the offering of 

affordable financing for healthy food retail options in distressed communities. 

Administration - Capital Magnet Fund +$2,000,000 / +8 FTE

The CDFI Fund will increase the administrative budget for the Capital Magnet Fund in the amount 

of $2 million to support estimated award funding. Awards made through the program will be funded 

by annual transfers from Fannie Mae and Freddie Mac.

Program Decreases ..................................................................................-$18,000,000 / +0 FTE

Bank Enterprise Award -$18,000,000 / +0 FTE

The President’s Budget proposes not to fund the BEA program in FY 2016.
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2.2 – Operating Levels Table

Dollars in thousands

Community Development Financial Institutions Fund FY 2014 FY 2015 FY 2016

Object Classification Actual Enacted Request

11.1 Full-time permanent 8,127 7,869 8,030

11.9 Personnel Compensation (Total) 8,127 7,869 8,030

12.0 Personnel benefits 2,537 2,046 2,238

Total Personnel and Compensation Benefits 10,664 9,915 10,268

21.0 Travel and transportation of persons 35 177 93

22.0 Transportation of things 0 4 4

23.3 Communication, utilities, and misc. charges 190 225 225

24.0 Printing and reproduction 0 125 100

25.1 Advisory and assistance services 5,040 6,473 7,238

25.2 Other services from non-Federal Sources 46 118 118

25.3 Other goods and services from Federal Sources 4,654 4,954 7,295

25.5 Research and development contracts 0 1,023 500

26.0 Supplies and materials 15 56 59

31.0 Equipment 8 30 30

33.0 Investments and loans 87 0 0

41.0 Grants, subsidies, and contributions 194,405 207,400 207,593

Total Non-Personnel 204,480 220,585 223,255

Total Budgetary Resources $215,144 $230,500 $233,523 

Budget Activities:

Community Development Financial Institutions Program 151,205 156,818 164,793

Bank Enterprise Award Program 35,058 18,132 0

Native American CDFI Assistance Program 15,750 18,695 18,000

Administration 30,716 30,110 26,416

Healthy Food Financing Initiative 22,493 23,050 36,000

Total Budgetary Resources $255,223 $246,805 $245,209 

FTE 76 79 87
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2B – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 

FUND

To carry out the Riegle Community Development and Regulatory 

Improvements Act of 1994 (subtitle A of title I of Public Law 103–

325), including services authorized by section 3109 of title 5, United

States Code, but at rates for individuals not to exceed the per diem 

rate equivalent to the rate for EX-3, [$230,500,000] $233,523,000. Of 

the amount appropriated under this heading—

(1) not less than [$152,400,000] $157,593,000, notwithstanding 

section 108(e)

of Public Law 103–325 (12 U.S.C. 4707(e)) with regard to Small 

and/or Emerging Community Development Financial Institutions 

Assistance awards, is available until September 30, [2016] 2017, for 

financial assistance and technical assistance under subparagraphs (A) 

and (B) of section 108(a)(1), respectively, of Public Law 103–325 

(12 U.S.C. 4707(a)(1)(A) and (B)), of which up to $3,102,500 may 

be used for the cost of direct loans: Provided, That the cost of direct 

and guaranteed loans, including the cost of modifying such loans, 

shall be as defined in section 502 of the Congressional Budget Act of 

1974: Provided further, That these funds are available to subsidize 

gross obligations for the principal amount of direct loans not to 

exceed $25,000,000; (2) not less than [$15,000,000] $16,000,000, 

notwithstanding section 108(e) of Public Law 103–325 (12 U.S.C. 

4707(e)), is available until September 30, [2016] 2017, 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; [(3) not less than

$18,000,000 is available until September 30, 2016, for the Bank 

Enterprise Award program;] ([4]3) not less than [$22,000,000] 

$35,000,000, notwithstanding subsections (d) and (e) of section 108 

of Public Law 103–325 (12 U.S.C. 4707(d) and (e)), is available until 

September 30, [2016] 2017, for a Healthy Food Financing Initiative

to provide financial assistance, technical assistance, training, and 

outreach to community development financial institutions for the 

purpose of offering affordable financing and technical assistance to 

expand the availability of healthy food options in distressed 

communities; ([5]4) up to [$23,100,000] $24,930,000 is available

until September 30, [2015] 2017, for administrative expenses, 

including administration of CDFI fund programs including the

As the number of programs 

the CDFI Fund administers 

has increased from two in the 

beginning to the current nine 

program areas, the timing of 

the annual life-cycle for 

these programs (from 

drafting the NOFA, NOAA 

or NOGA to the awarding 

and disbursement of awards) 

has had to be stretched 

across fiscal years. Thus, 

there is critical need to have 

the administration budget be 

two-year money paralleling 

the program budgets to 

effectively run the CDFI 

Fund’s programs. This is 

being compounded by the 

need to stand up the Capital 

Magnet Fund in fiscal year 

2015 without an associated 

administration budget.
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Appropriations Language Explanation of Changes

Capital Magnet Fund and the New Markets Tax Credit Program, of 

which up to $1,000,000 is for capacity building to expand CDFI 

investments in underserved areas, and up to $300,000 is for 

administrative expenses to carry out the direct loan program; and

([6]5) during fiscal year [2015] 2016, none of the funds available 

under this heading are available for the cost, as defined in section 502 

of the Congressional Budget Act of 1974, of commitments to 

guarantee bonds and notes under section 114A of the Riegle 

Community Development and Regulatory Improvement Act of 1994 

(12 U.S.C. 4713a): Provided, That commitments to guarantee bonds 

and notes under such section 114A shall not exceed [$750,000,000: 

Provided further, That such section 114A shall remain in effect until 

September 30, 2015] $1,000,000,000. (Department of the Treasury 

Appropriations Act, 2015.)

2C – Legislative Proposals

Treasury recommends extension of the CDFI Bond Guarantee Program through FY 2017 and 

proposes reforms to the program to increase participation and ensure credit-worthy CDFIs have 

access to this important source of capital, while continuing to maintain strong protections against 

credit risk. 

Justification

The CDFI Bond Guarantee Program provides CDFIs access to a significant source of capital. By 

providing guarantees of bonds issued by Qualified Issuers, the CDFI Bond Guarantee Program 

injects new and substantial capital into our nation’s most distressed communities. CDFIs can gain 

from the potential scale of the CDFI Bond Guarantee Program, which offers low-cost, long-term 

credit for the development of commercial real estate, rental housing, senior living, daycare or 

healthcare centers, small businesses, and rural infrastructure, among others. This will further close 

the gap of financing in these communities, generate new credit information in these market 

segments, and yield the benefit of lower financing costs for borrowers in these underserved 

communities. 

The Bond Guarantee Program provides CDFIs a critical source of below-market, long-term capital 

that is not available to the CDFI industry. The Budget proposes more flexible terms that will allow 

smaller credit-worthy institutions to participate in the program while more accurately accounting for 

credit risk. Treasury proposes the following legislative changes: (i) to extend the CDFI Bond 

Guarantee Program through FY 2017; (ii) to reduce the minimum bond issue size from $100 million 

to $25 million; (iii) to permit the Secretary to adjust the risk-share pool payment requirement, based 

on the borrower’s credit quality, from zero to four percent; (iv) to collect a mandatory one percent 

fee from all borrowers; and (v) to revise the relending account language to correct a technical 

drafting error. 

These changes will not impact the CDFI Fund's underwriting requirements and, as such, will not 

increase Federal exposure to credit risk. Additionally, the program will still be required to maintain 

a zero or negative credit subsidy rate and, therefore, generate no budgetary cost.
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Suggested Legislative Language

SEC. 126. AMENDMENTS TO COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 

BOND PROGRAM. Section 114A of the Riegle Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 4713a) is amended— (a) in subsection (c)(2) by striking ", 

multiplied by an amount equal to the outstanding principal balance of issued notes or bonds"; (b) by 

amending subsection (d) to read as follows— "(d) RISK-SHARE POOL.— Each qualified issuer 

shall, during the term of a guarantee provided under the Program, establish a risk-share pool, 

capitalized by contributions from eligible community development financial institution participants

in amounts that shall not exceed 4 percent of the guaranteed amount outstanding on the subject notes 

and bonds, which contribution amounts shall be determined by the Secretary for each eligible 

community development financial institution participant based on the Secretary's assessment of the 

participant's credit quality."; (c) in subsection (e)(2)(B), by striking "$100,000,000" and inserting 

"$25,000,000"; (d) in subsection (g) by amending the subsection to read as follows: "(g) FEES.—

"(1) IN GENERAL.— "(A) QUALIFIED ISSUER.—A qualified issuer that receives a guarantee 

issued under this section on a bond or note shall pay a fee to the Secretary, in an amount equal to 10 

basis points of the amount of the unpaid principal of the bond or note guaranteed. "(B) ELIGIBLE 

CDFI PARTICIPANT.—An eligible community development financial institution participant that 

receives a bond loan under this section shall pay a fee to the Secretary, in an amount equal to 1 

percent of the unpaid principal of the bond or note guaranteed. "(2) PAYMENT. — "(A) 

QUALIFIED ISSUER.—A qualified issuer shall pay the fee required under paragraph (1)(A) on an 

annual basis. "(B) ELIGIBLE CDFI PARTICIPANT.— An eligible community development

financial institution participant shall pay the fee required under paragraph (1)(B) at the time of loan 

disbursements to the participant."(3) USE OF FEES.—Fees collected by the Secretary— "(A) under 

paragraph (1)(A) shall be used to reimburse the Department of the Treasury for any administrative 

costs incurred by the Department in implementng the Program established under this section and 

shall be available until expended; and "(B) under paragraph (1)(B) shall be deposited by the 

Secretary into an account that shall be available to the Secretary to cover credit subsidy costs and to 

pay principal and interest on the guaranteed bonds or notes in the event of a delinquency in 

repayment of loans to eligible community development financial institution participants."; and (e) in 

subsection (k), by striking "2014" and inserting "2017". 
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Section 3 – Budget and Performance Plan

3A – Administration

($24,930,000 from direct appropriations): 

This budget activity encompasses the CDFI Fund’s operational support and management activities 

for each of its award programs and supports the CDFI Fund’s Strategic Goal No. 4: To increase 

resource and human capital management to maximize performance, efficiency, and program results. 

This includes, among other activities, developing regulations, Notices of Funding Availability, and 

application materials; reviewing and evaluating certification and funding applications; selecting 

awardees; finalizing the terms of award agreements; making disbursements; collecting and 

evaluating performance data; and monitoring awardees’ compliance. All of these tasks support 

activities that allow the CDFI Fund to carry out its overall mission.

Description of Performance:

The CDFI Fund has made significant progress enhancing its program administrative business 

processes, enabling quicker award disbursements. 

The CDFI Fund’s two administrative measures are organization-wide efficiency measures based on 

the weighted average of the number of applications/awards across all programs. (All-applicationaward and All-award-disbursement cycle times). 

The All-application-award Cycle Time performance target was 7.0 for FY 2014 and FY 2015. In 

FY 2014, the CDFI Fund completed its program application-award cycle time in 7.1 months and just 

missed meeting this performance goal. The application-award target was missed slightly because of 

a change in congressionally mandated matching funds requirements for the CDFI program under the 

appropriation language of December 2013 which required supplemental notification of applicants 

and additional reviews of the applicant’s matching documentation. The revised FY 2015 and 

FY 2016 targets are set at 7 months. 

The All-Award-Disbursement Cycle Time target is a measure in months of how quickly the CDFI 

Fund manages to initially disburse 85 percent of program funds after the award announcement. In 

FY 2013, the target of 3.5 months was not met as it took 4.5 months to assure the accuracy of all inkind matching requirements for grants and loans, particularly for the rates and terms of the matching 

loans. In FY 2014, because of the increased level of effort to ensure strong controls over the 

disbursement process, the CDFI Fund missed its target of 3.5 months as only 77 percent of program 

funds were initially disbursed within 3.5 months and current disbursement data indicate that initial 

disbursements should be completed in 4.5 months. The CDFI Fund has raised the awarddisbursement target from 3.5 to 4 months for FYs 2015 and 2016 since the past two years has shown 

that it takes around 4 months to make an initial disbursement on 85 percent of program funds. The 

matching funds requirements in the Core FA component of the CDFI Program necessitate strong 

internal controls and checks which slightly lengthens the process. Lastly, the incorporation of the 

OMB Supercirculrar requires the CDFI Fund to develop additional oversight procedures for the 

disbursement processes which will lengthen the timeline during FY 2015. 

. 
CDFI - 15

The All-Affordable Housing measure includes housing units reported by CDFI, NMTC and CMF 

program awardees. For FY2014 the target was exceeded due to higher than projected results 

achieved by CMF awardees. The targets for FY 2015 and 2016 do not factor in results from future 

rounds of funding for CMF and the FY 2015 targets include the final incremental contributions 

attributed to first round of CMF awards. The outcomes of the FY 2016 CMF awards will not be 

reported until FY 2017.

3.1.1 – Administration Budget and Performance Plan

The CDFI Fund’s suite of performance measures was comprehensively revised in FY 2010 so many 

of these measures only have four years of actual results. 

Dollars in Thousands

Administrative Budget Activity

Resource Level FY 2009 FY2010 FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Actual Actual Actual Actual Enacted Enacted Enacted Request

Appropriated Resources $12,483 $13,797 $18,602 $22,965 $21,764 $24,636 $23,600 $24,930 

Budget Activity Total $12,483 $13,797 $18,602 $22,965 $21,764 $24,636 $23,600 $24,930 

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

ALL - Award Cycle Time

(months)

N/A N/A 7.4 6.5 6.8 7.1 7.0 7.0

ALL - Disbursement Cycle 

Time (months)

N/A N/A 2.0 3.1 4.5 4.5 4.0 4.0

ALL - Number of affordable 

housing units developed or 

produced (units)

N/A N/A 19,083 27,433 26,391 32,621 36,000 29,000

Key: DISC - Discontinued and B - Baseline

3B Community Development Financial Institutions Program

($157,593,000 from direct appropriations): 

The CDFI Program supports the CDFI Fund’s Strategic Goal No. 1: To expand the capacity of 

financial institutions to provide credit, capital, and financial services to low-income and underserved 

populations. Through the CDFI Program, the CDFI Fund makes FA awards to CDFIs that have 

comprehensive business plans for creating community development impact and that demonstrate the 

ability to leverage private sector sources of financing, as well as TA grants to CDFIs and entities 

proposing to become CDFIs. 

Description of Performance:

The CDFI Fund has revised its performance measures for the CDFI financial assistance program to 

better measure the impact of CDFI awardees on distressed communities and underserved 

populations. The CDFI Fund worked with Treasury’s Office of Performance Budgeting (OPB) and 

Office of Strategic Planning and Performance Improvement (OSPPI) to develop two new measures: 

(1) the percentage of loans and investments originated in eligible distressed communities or made to 

underserved populations as measured against the total amount of loans originated by awardees, and; 

(2) the percentage of loans and investments originated in eligible distressed communities or to 

underserved populations as measured by the total number of loans originated by awardees. 
CDFI - 16

These two measures demonstrate the impact of CDFI awardees in serving eligible distressed 

communities and underserved populations by lending reported during the program year. By 

regulation all certified CDFIs must originate 60 percent or more of their loans and investments in 

eligible distressed census tracts or to underserved populations. The target is a threshold that must be 

met or exceeded recognizing the need for CDFIs to balance their mission of serving distressed 

communities and underserved populations against their safety and soundness considerations. 

As the historical data in table 3.1.2 indicates, the percentage share by amount of loans varies 

between 66 percent to nearly 85 percent in distressed communities and to underserved populations. 

When measured by the number of loans and investments, the share going to distressed communities 

and underserved populations has varied from 60 percent to nearly 80 percent. These trends indicate 

that CDFI awardees have been successful in meeting their mission of serving distressed communities 

and underserved populations both in terms of the amount and number of loans made to these target 

markets.

3.1.2 – Community Development Financial Institutions Program Budget and Performance

Plan

Dollars in Thousands

Community Development Financial Institutions Program Budget Activity

Resource Level FY 2009 FY2010 FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Actual Actual Actual Actual Enacted Enacted Enacted Request

Appropriated 

Resources $149,750 $107,600 $162,830 $146,035 $138,397 $146,364 $152,400 $157,593

Budget Activity Total $149,750 $107,600 $162,830 $146,035 $138,397 $146,364 $152,400 $157,593

Measure FY 2009 FY2010 FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Actual Actual Actual Actual Actual Actual Target Target

CDFI - Percentage of 

Loans & Investments 

Originated to Eligible 

Distressed communities or 

Underserved Populations 

by Dollar Amount 

(percentage)

N/A 74.8% 66.3% 84.9% 77.1% 70.8% 60.0% 60.00%

CDFI - Percentage of 

Loans & Investments 

Originated to Eligible 

Distressed communities or 

Underserved Populations 

by Number of Loans 

(percentage)

N/A 65.1% 60.6% 70.3% 79.6% 60.7% 60.0% 60.0%

Key: DISC - Discontinued and B - Baseline

3C – New Markets Tax Credit Program

($0 from direct program appropriations): 

Through the NMTC Program, the CDFI Fund facilitates new investment in low-income communities 

by attracting private sector capital to these communities through tax credits. These objectives align 

with the CDFI Fund’s Strategic Goal No. 2 – Increased public and private investment in distressed 

communities eligible to be served by the CDFI Fund’s programs. Individual and corporate investors 

may receive a credit against their federal income taxes in exchange for making equity investments in 
CDFI - 17

Community Development Entities (CDEs) that, in turn, use such proceeds to finance businesses and 

real estate projects in low-income communities. The investor’s tax credit equals 39 percent of the 

amount invested and is taken over seven years. 

The FY 2016 President’s Budget proposes to permanently extend the NMTC Program, allowing up 

to $5 billion in qualifying investments each year. The proposals would also permit the NMTC to 

offset Alternative Minimum Tax (AMT) liability.

Description of Performance:

The 2013 NMTC investment authority was allocated in FY 2014 due to delayed passage of the 

authorizing legislation. In the 2013 round, the NMTC Program awarded $3.5 billion in NMTC 

investment authority to 87 CDEs, out of a pool of 310 applicants requesting $25.9 billion. 

Legislative authorization for 2014 totaling $3.5 billion in total NMTC allocation authority is 

projected to be awarded in the spring of 2015. 

As of September 2014, CDEs have raised a cumulative total of $31.9 billion since the inception of 

the NMTC Program. The NMTC Program has targeted investments into the most distressed census 

tracts among those that meet statutory eligibility requirements. The FY 2014 NMTC annual 

reporting by allocatees totaled $4 billion in new financing, falling below the stretch target of $5 

billion which was put into place based on expectations about investments made from available tax 

authority balances. The FY 2015 and FY 2016 targets were set at $5 billion to reflect the actual 

annual tax credit authority requested. 

3.1.3 – New Markets Tax Credit Program

Dollars in Thousands

New Markets Tax Credit Program Budget Activity

Resource Level FY 2009 FY2010 FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Actual Actual Actual Actual Enacted Enacted Enacted Request

Appropriated Resources $4,267 $4,203 $0 $0 $0 $0 $0 $0 

Budget Activity Total $4,267 $4,203 $0 $0 $0 $0 $0 $0 

Measure

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Community Development 

Entities' Annual Qualified 

Low-Income Community 

Investments ($ billions)

$3.6 $3.1 $4.7 $5.5 $4.8 $4.0 $5.0 $5.0

NMTC-Percentage of 

Loans and Investments 

that went into Severely 

Distressed Communities

(percentage)

81% 73.4% 72.4% 70.4% 78.5% 73.8% 72.0% 72.0%

Key: DISC - Discontinued and B - Baseline

3D – Bank Enterprise Award Program

($0 from direct appropriations): 

Through the BEA Program, the CDFI Fund encourages insured depository institutions to increase 

investments and services in distressed communities and to provide financial assistance to CDFIs. 
CDFI - 18

These objectives align with the Department of the Treasury’s Strategic Goal No. 1: Promote 

domestic economic growth and stability while continuing reforms of the financial system.

Description of Performance

In FY 2014, the CDFI Fund received 98 eligible BEA Program applications requesting a total of 

approximately $211 million in awards, which is the largest amount in requested awards since the 

inception of the program. The CDFI Fund selected 69 FDIC-insured institutions to receive 

approximately $18 million in BEA Program awards. The average award amount was $258,962. FY 

2014 BEA Program awardees are headquartered in 24 states and the District of Columbia, compared 

to the 18 states and the District of Columbia represented in the prior year. FY 2014 BEA Program 

awardees increased their qualified community development activities over the prior year activities by 

$571.5 million while all FY 2014 BEA applicants increased their qualified community development 

activities by more than $723.5 million. The performance target for FY 2014 was exceeded as 

applicants substantially increased their qualified community development activities despite 

reductions in program funding. This behavior indicates a high level of commitment to the program 

by applicants and as result the target has been increased for FY 2015.

3.1.4 – Bank Enterprise Award Program

Dollars in Thousands

Bank Enterprise Award Program Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Enacted Enacted Enacted Request

Appropriated Resources $22,000 $25,000 $21,956 $18,000 $17,058 $18,000 $18,000 $0

Budget Activity Total $22,000 $25,000 $21,956 $18,000 $17,058 $18,000 $18,000 $0

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

BEA-Increase in Community 

Development Activities Over 

Prior Year For All BEA 

Program Applicants ($ 

million) 

$292 $290 $268.3 $432.4 $493.5 $723.5 $750 DISC

Key: DISC – Discontinued 

3E – Native American CDFI Assistance Program

($16,000,000 from direct appropriations):

Through the NACA Program, the CDFI Fund assists entities in overcoming barriers that prevent 

access to credit, capital, and financial services in American Indian, Alaska Native, and Native 

Hawaiian communities. The CDFI Fund makes monetary awards to increase the number and 

capacity of existing or new Native CDFIs (i.e., CDFIs that serve Native communities). In addition, 

the NACA Program provides training to help strengthen and develop Native CDFIs. Native CDFIs 

lend where others have not, and are serving the poorest in Native communities. In order for Native 

CDFIs to make a larger economic impact within Native communities, they require further technical 

assistance and capacity building to access financial capital. With the increased capacity building, 

Native CDFIs could, for example, expand their lending from an initial offering of micro-loans to 

making larger small business loans to better promote economic activity. These objectives align with 

the Department of the Treasury’s Strategic Goal 1: Promote domestic economic growth and stability 

while continuing reforms of the financial system. 
CDFI - 19

Description of Performance:

As detailed in Table 3.1.5, in FY 2014 NACA awardees reported originating 2,230 loans amounting 

to $100.5 million which greatly exceeded the targets of 1,300 loans and $22.5 million in loans 

because of the large increase in the asset size of reporting awardees. The targets for FYs 2014 and 

2015 have been adjusted upward based on an alternative forecasting technique using the number of 

reporting awardees, asset size and average loan size. In addition, research is underway to develop a 

new metric to measure the share of lending within and adjacent to tribal lands based on Federal 

Designations.

3.1.5 – Native American CDFI Assistance Program

Dollars in Thousands

Resource Level FY 2009 FY 2010 FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Actual Actual Actual Actual Enacted Enacted Enacted Request

Appropriated Resources $16,500 $12,000 $11,352 $12,000 $11,372 $15,000 $15,000 $16,000

Budget Activity Total $16,500 $12,000 $11,352 $12,000 $11,372 $15,000 $15,000 $16,000

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

NACA - Amount of 

Loans/Investments 

Originated (Annual) 

(Dollars in Millions)

N/A N/A $14.7 $21.2 $23.2.0 $100.5 $164 $164

NACA - Number of 

Loans/Investments 

Originated (Annual)

N/A N/A 1,004 1,170 1,508 2,230 1,860 1,860

Key: DISC - Discontinued and B - Baseline

3F – Healthy Food Financing Initiative

($35,000,000 from direct appropriations): 

The Healthy Food Financing Initiative (HFFI) is an interagency initiative involving the U.S. 

Department of the Treasury and the U.S. Department of Agriculture. The HFFI represents the 

federal government’s first coordinated step to eliminate “food deserts” – low-income urban and rural 

areas in the United States with limited access to affordable and nutritious food – by promoting a 

wide range of interventions that expand the supply of and demand for nutritious foods, including 

increasing the distribution of agricultural products, developing and equipping grocery stores, and 

strengthening producer-to-consumer relationships.

The HFFI has had a high response rate from applicants. To date, all 12 of the first-round HFFI 

awardees and 11 of the 12 second-round awardees have reported on three years of HFFI investments. 

In total, 99 loans/investments were made to 114 projects totaling $43,589,977 in HFFI eligible 

activities. A total of 64 retail outlets were funded resulting in 899,021 square feet of new retail 

space developed for projects ranging from small green grocers to large supermarkets, all serving 

low-income, low-access census tracts. Another 50 non-retail projects developed 1,122,816 square 

feet of space for eligible healthy food activities such as farming and development of distribution 

centers.

The HFFI supports the CDFI Fund’s Strategic Goal No. 1: To expand capacity of financial 

institutions to provide credit, capital, and financial services to low-income and underserved 
CDFI - 20

populations. Through the HFFI, the CDFI Fund awards CDFI Program funds to certified CDFIs to 

help address the need for healthy food in underserved and low-income communities. These 

organizations use federal grants, below market-rate loans, loan guarantees, and tax credits to attract 

private sector financing for projects that increase access to healthy food options.

Description of Performance:

The primary HFFI performance measure is the number of healthy food options created and 

maintained in low-income areas that have been identified through detailed census tract analysis as 

having limited access to healthy food options. In FY 2013 and 2014 program awardees reported 

baseline data on investments which created 31 retail outlets and 33 respectively for healthy food 

activities in low-income, low-access areas. As a result of this baseline reporting and additional 

program award rounds, preliminary targets have been set for FY 2015 and 2016.

3.1.6 – Healthy Food Financing Initiative

Dollars in Thousands

Healthy Food Financing Initiative Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Actual Actual Actual Actual Enacted Enacted Enacted Request

Appropriated Resources $0 $0 $0 $22,000 $20,849 $35,000 $22,000 $35,000

Budget Activity Total $0 $0 $0 $22,000 $20,849 $35,000 $22,000 $35,000

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

HFFI - Retail Outlets 

Created/Preserved N/A N/A N/A B 31 33 47 47

Key: DISC - Discontinued and B - Baseline

3G Capital Magnet Fund Program

($0 from direct appropriations): 

The Capital Magnet Fund (CMF), administered by the CDFI Fund, was authorized by the Housing 

and Economic Recovery Act of 2008 (HERA), which called for recurrent funding of the CMF

through assessments on securities of the Government-Sponsored Enterprises (GSEs) Fannie Mae 

and Freddie Mac. GSE funding for CMF was temporarily suspended in November of 2008 by the 

Federal Housing Finance Agency (FHFA) under its HERA authority. In FY 2010, Congress 

appropriated $80 million for an initial CMF funding round; however, no appropriations were made 

in subsequent years. In December 2014, the FHFA instructed the GSEs to begin setting aside and 

allocating funds to the CMF pursuant to HERA. This budget activity aligns with the Department of 

the Treasury’s Strategic Goal 1: Promote domestic economic growth and stability while continuing 

reforms of the financial system. 

From the 2010 funding round, the CDFI Fund announced $80 million in competitively awarded

grants to 23 CDFIs and qualified non-profit housing organizations serving 38 states. The CMF

awards have been used to increase capital investment for the development, preservation, 

rehabilitation, and purchase of affordable housing for low-, very low-, and extremely low-income

families, and for related economic development activities, including community services facilities. 
CDFI - 21

Awardees received their Assistance Agreements in July 2011 and disbursements of grant funding

later that year. As required by the Assistance Agreement, funds were committed to projects within 

two years of the agreement (July 2013) and disbursed within three years of the agreement (July

2014). All projects must be completed within five years of agreement (July 2016). Awardees 

committed to leveraging the CMF award by at least 10 times with other sources of capital, as well 

as committed to projects that meet percentages of targeted incomes and geographies.

Awardee reports available through September 30, 2014 indicate the following updates on CMFfinanced affordable housing and community development activities through FY 2013:

• Total number of affordable homes under development with CMF financing include: 8,758 (net 

addition of 1,955);

• Affordable rental homes financed: 7,913 (net addition of 1,612);

• Affordable homeowner-occupied homes financed: 845 (net addition of 343), including

assistance to 214 income-eligible, first-time homebuyers;

• Average CMF award investment in each unit of affordable housing developed: $11,200;

• Average total cost of each unit of affordable housing developed: $179,500

Description of Performance:

The primary performance measures of the CMF are the number of affordable housing units for 

which CMF funding was a source of financing and the degree to which other funding sources were 

leveraged by CMF financing. Data are included in performance table 3.1.1 above.
CDFI - 22

Section 4 – Supplemental Information

4A – Summary of Capital Investments

As part of its FY 2016 capital investment strategy, the CDFI Fund plans to spend approximately 

$5.07 million on Information Technology (IT). The CDFI Fund has no major IT investments, nor 

any capital investments other than IT.

Non-Major IT Investments

The CDFI Fund’s capital investment strategy is to become a consumer of commodity IT services 

(e.g., IT infrastructure services) and to focus its limited IT resources on IT solutions that directly 

support the mission of the CDFI Fund. One important mission-focused IT modernization activity is 

the implementation of an Award Management Information System (AMIS) — an enterprise, 

commercial, off-the-shelf product that will replace the CDFI Fund’s legacy business systems. The 

CDFI Fund awarded the AMIS contract to a small business in July 2014. The first AMIS 

deployment is planned for September 2015 with full deployment planned for September 2016. By 

streamlining business processes and leveraging modern automation and technology, the CDFI Fund 

will be able to handle larger volumes of awards, tax credits, and loan portfolios while achieving 

more transparency and better data quality and providing better service to its customers. 

Another mission-focused IT initiative is the modernization of the CDFI Fund public website. The 

CDFI Fund public website has not undergone a substantial redesign in over 10 years. This IT 

initiative will provide an innovative and modern design to the CDFI Fund public website, and will 

use the Department of Treasury’s SharePoint as a Service (SaaS) Platform to ensure a cost-effective 

solution. The new CDFI Fund public website is planned to be completed in July 2015.

In FY 2016, the CDFI Fund identified five non-major IT investments. Investments for Legacy 

Mission Systems (LMS) and the Community Investment Impact System (CIIS) are in Operations & 

Maintenance (O&M). The remaining three investments are AMIS and the CDFI Fund Public 

Website, which are described above, and IT Program Management Support. The IT Program 

Management Support investment includes planning, acquisition, and system deployment support 

services for the modernization of CDFI Fund mission systems. These services are being obtained 

via an Interagency Agreement with the Alcohol and Tobacco Tax and Trade Bureau (TTB).

IT Infrastructure Investments

In 2012, TTB assumed management of the CDFI Fund’s IT infrastructure. Treasury has seen 

numerous benefits from the CDFI Fund/TTB arrangement. It provides better availability and 

security for the CDFI Fund’s business data and systems, increases utilization of Treasury data 

centers, and enables the CDFI Fund to leverage existing Disaster Recovery and Continuity of 

Operations capabilities. With TTB, the CDFI Fund avoids software upgrade costs by using TTB’s 

enterprise software licenses, stops duplicative services (such as Web monitoring and filtering), and 

eliminates contracts used to maintain the CDFI Fund’s IT infrastructure.

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed and downloaded at:

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx. 

This website also contains a digital copy of this document.
CDFI - 23

4B – CDFI Bond Guarantee Program

The Small Business Jobs Act of 2010 (Public Law 111-240) created the CDFI Bond Guarantee 

Program. Bonds issued under the program support CDFI lending activity in underserved 

communities by providing a source of long-term capital. Qualified Issuers (CDFIs or their 

designees) issue bonds that are guaranteed by the Secretary of the Treasury and use the bond 

proceeds to make loans to Eligible CDFIs for eligible community and economic development 

purposes. Bond maturity cannot exceed 30 years. Under FY 2013 and FY 2014 authority, Treasury 

provided eight guarantees in the total amount of $525 million. The following objectives have been 

identified for the program for FY 2015:

• Approval of up to $750 million in guarantees;

• A compliance assessment of the Master Servicer/Trustee, Qualified Issuers and Eligible CDFIs.

4.1 – Resource Detail Table

Dollars in Thousands

Bond Guarantee Program

Resource Level FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Enacted Enacted Actual Actual Enacted Request

Obligations - - $325,000 $200,000 $750,000 $1,000,000 

Loan Limitation Obligation Authority - - - $750,000 $750,000 $1,000,000 

Collections1 - - - $489 $5,333 $18,442 

1

Includes the principal and interest repayments and a 10 basis point fee for administrative expenses pursuant to 

Section 1134 of the Small Business Jobs Act of 2010. These amounts assume a zero subsidy rate with bond 

loan disbursements of $46 million, $216.5 million, and $900 million in FY 2014, FY 2015, and FY 2016, 

respectively.

4.2 – Financing Accounts - Non-Budgetary Summary

Dollars in Thousands

Bond Guarantee Program

Resource Level FY 2011 FY2012 FY 2013 FY2014 FY 2015 FY2016

Enacted Enacted Actual Actual Enacted Request

Obligations - - $325,000 $200,000 $750,000 $1,000,000