Community Development 

Financial Institutions Fund

FY 2013

President’s Budget

Submission
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Table of Contents

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

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

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

1B – Mission Priorities and Context.........................................................................................................3

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

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

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

2.2 – Operating Levels Table ................................................................................................................. 11

2B – Appropriations Language and Explanation of Changes................................................................. 12

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

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

3A – Administration ............................................................................................................................... 13

3.1.1 – Administration Budget and Performance Report and Plan......................................................... 15

3B – Community Development Financial Institutions Program ............................................................ 15

3.1.2 – CDFI Program Budget and Performance Report and Plan ......................................................... 17

3C – New Markets Tax Credit Program................................................................................................. 17

3.1.3 – New Markets Tax Credit Program Budget and Performance Report and Plan .......................... 19

3D – Bank Enterprise Award Program................................................................................................... 19

3.1.4 – Bank Enterprise Award Program Budget and Performance Report and Plan ............................ 20

3E –Native American CDFI Assistance Program .................................................................................. 20

3.1.5 – Native American CDFI Assistance Program Budget and Performance Report and Plan........... 21

3F – Healthy Food Financing Initiative.................................................................................................. 21

3.1.6 – Healthy Food Financing Initiative Budget and Performance Report and Plan........................... 22

3G – Bank on USA Program .................................................................................................................. 23

3.1.7 – Bank on USA Program Budget and Performance Report and Plan............................................ 23

3H – Financial Education and Counseling Pilot Program and Hawaii Consolidated............................. 24

3.1.8 – Financial Education and Counseling Pilot Program and Hawaii Consolidated Budget and 

Performance Report and Plan ................................................................................................................. 24

Section 4 – Supplemental Information.................................................................................................... 25

4A - Capital Investment Strategy ........................................................................................................... 25

4B – Bond Guarantee Program............................................................................................................... 26

4.1 – Resource Detail Table ................................................................................................................... 26

4.2 – Financing Accounts - Non-Budgetary Summary........................................................................... 26
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Section 1 – Purpose

1A – Mission Statement

The mission of the Community Development Financial Institutions (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

FY 2011 FY 2012 FY 2013 % Change

Resources Available for Obligation Enacted Enacted Request FY 2012 to FY 2013

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

 Bank Enterprise Award Program - $21,956 - $18,000 - $15,000 0.00% -16.67%

 Community Development Financial Institutions Program - 144,660 - 146,035 - 127,953 0.00% -12.38%

 Native American CDFI Assistance Program - 11,976 - 12,000 - 12,000 0.00% 0.00%

 Administration 84 22,954 79 22,965 79 21,047 0.00% -8.35%

 Bank on USA Program - - - - - 20,000 0.00% 100.00%

 Healthy Food Financing Initiative - 25,000 - 22,000 - 25,000 0.00% 13.64%

Subtotal New Appropriated Resources 84 $226,546 79 $221,000 79 $221,000 0.00% 0.00%

Other Resources:

 Reimbursables - $568 - $500 - $53 0.00% -89.40%

 User Fees/Offsetting Collections - 900 - 1,000 - 1,000 0.00% 0.00%

 Recovery from Prior Years - 790 - 790 - 790 0.00% 0.00%

 Unobligated Balances from PY - 29,945 - 53,257 - 51,157 0.00% -3.94%

Subtotal Other Resources - $32,203 - $55,547 - $53,000 0.00% -4.59%

Total Resources Available for Obligation 84 $258,749 79 $276,547 79 $274,000 0.00% -0.92%

NMTC Program Administration and Bond Guarantee Program Administration are included in the Administration 

budget activity within the FY 2013 CDFI Budget Request. Separately, $13.5 million is available through September 

30, 2012, for administration of the Bond Guarantee Program as provided in PL 111-240.

1B – Mission Priorities and Context

The CDFI Fund’s overarching mission is to increase economic opportunity and promote 

community development investments in America’s underserved and distressed communities. 

The CDFI Fund also advances the Department of the Treasury’s Strategic Goal No. 2: Enhance 

U.S. Competitiveness and Promote International Financial Stability and Balanced Global 

Growth. Since its creation in 1994, the CDFI Fund has awarded more than $1.4 billion to 

CDFIs, community development organizations, and FDIC-insured depository institutions 

through the CDFI Program, the Native American CDFI Assistance (NACA) Program, and the 

Bank Enterprise Award (BEA) Program. In addition, the CDFI Fund has allocated $29.5 billion 

in New Markets Tax Credit (NMTC) investment authority through the NMTC Program to 

Community Development Entities (CDEs), $80 million to awardees through the Capital Magnet 

Fund (CMF), and $4.1 million through the Financial Education and Counseling (FEC) Pilot 

Program, including the Hawaii FEC Pilot Program.

The CDFI Fund’s strategic goals were formulated to carry out its mission of increasing economic 
CDFI - 4

opportunity and promoting community development investments in distressed and underserved

communities:

1. To expand the capacity of financial institutions to provide credit, capital, and financial 

services to low-income and underserved populations. 

1

2. To improve economic conditions in distressed communities through increased public and 

private investment.

3. To expand access to financial services and improved financial education for underserved 

populations.

4. To increase resource and human capital management to maximize performance, efficiency, 

and program results.

The communities targeted by the CDFI Fund’s programs are distressed even in good economic 

times. As the country recovers from the worst economic conditions since the Great Depression, 

these very communities are especially vulnerable to local economic dislocation, tight credit 

conditions, home foreclosures, and unemployment, and are disproportionately affected by 

predatory lending.2

As specialized, community-based financial institutions for underserved communities and lowincome people, CDFIs have been vital to community stability and will be essential to economic 

recovery. For example, in 2010, CDFI Program awardees provided loans and investments that 

contributed to the creation of or that maintained 25,199 full-time jobs in underserved 

communities.

3

 These achievements are especially impressive and important in the context of 

extraordinarily daunting community conditions, heightened needs, and diminished resources 

available from mainstream financial institutions and financially strapped state and local 

governments.

As important and effective as they have been, CDFIs face several timely challenges. First, like 

other financial institutions, CDFI loan and investment portfolios have been stressed by the 

economic turbulence that confronts their borrowers and communities. Most CDFIs have 

weathered this challenge better than might be expected, with overall assets and capital under 

management for all reporting CDFIs beginning to recover from the severe contraction during the 

 

1 The language in these strategic goals is meant to summarize the various program objectives which vary slightly 

across programs, although all of these are defined in long-standing program regulations published in the Federal 

Register. For example in general ―low-income communities‖ are those in census tracts where the median income is 

less than or equal to 80% of the area median family income, although the exact denominator varies slightly by 

program. In general, ―distressed communities‖ refers to those which have high unemployment and poverty rates and 

low median family income. Within any one program, each term has a precise and published definition. However, to 

fully and carefully define these terms would be beyond the purview of this document. 

2 The Center for Community Capital has generated maps by congressional district illustrating the prevalence of 

subprime lending in low-income communities: Center for Community Capital, University of North Carolina. 

"Subprime Lending and Low-Income Communities." Available at: http://www.ccc.unc.edu/subPrime.php

3

See CDFI Fund Agency Financial Report, FY 2011, pages 16-17 for a discussion of the source and method for 

compiling this data from reporting awardees. 

http://www.cdfifund.gov/news_events/CDFI%20Fund%20FY%202011%20Agency%20Financial%20Report%20FI

NAL%2011%2016%2011.pdf
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recession and delinquency rates rising quite modestly. The CDFIs have avoided excessive 

leverage and continued to work closely with borrowers to address emerging problems. 

Second, many mainstream financial institutions have pulled back from partnerships with CDFIs.

4

as they have from other lending and investing activities in underserved communities and more 

generally. Other financial partners are requiring CDFIs to maintain greater capital reserves at a 

time of diminished capital investment in CDFIs. 

It is critical for the CDFI Fund to continue to capitalize and otherwise support CDFIs. The CDFI 

Fund is the only federal government entity whose primary mission is to build the capacity of 

CDFIs so that they can provide loans, investments, business counseling, basic banking services 

and financial literacy training to underserved communities.

Fiscal Year 2011 Accomplishments: In the FY 2011 funding round of the CDFI Program, the 

CDFI Fund received applications from 407 organizations, requesting $514 million in financial 

and technical assistance awards and the Healthy Food Financing Initiative (HFFI). The CDFI 

Fund awarded more than $167.3 million in grants to 167 CDFIs serving distressed communities 

in 40 states and the District of Columbia, including $25 million under the Administration’s 

HFFI— and many qualified applicants were not awarded or fully funded. This activity shows 

that the demand for CDFI Fund financing continues to be robust.

The CDFI Fund’s other major program, the NMTC Program, is likewise oversubscribed. In the 

2011 round of the NMTC Program, the CDFI Fund received 314 applications requesting more 

than $26.6 billion in tax credit allocation authority — exceeding the $3.5 billion authorized by 

Congress.

During FY 2011, the CDFI Fund administered the FY 2011 round of the BEA Program, and 

began developing the Bond Guarantee (BG) Program, a new program authorized and funded 

under the Small Business Jobs Act of 2010 (P.L. 111-240). 

In addition, in FY 2011, the CDFI Fund consulted and collaborated with Treasury’s Office of 

Small Business, Community Development and Housing Policy, with respect to Treasury’s 

implementation of the newly created Small Business Lending Fund.

Fiscal Years 2012 and 2013 Priorities: In FY 2012, the CDFI Fund will continue to execute its 

financial and technical assistance programs and complete development of the BG Program. In 

FY 2012, the BG Program plans to promulgate its implementing regulations, develop and release 

the application materials, and procure additional contracting services, as necessary. With the 

introduction of a new program, the CDFI Fund uses its resources:

 

4

"The Financial Crisis and CDFIs: A Brief Look at 2007-2009 CIIS Data." CDFI Fund, March 1, 2011. This

analysis of the 94 CDFI Fund awardees that reported in all three years from 2007 to 2009 found that while 69 

percent of total capital under management came from bank sources in 2007, the bank share had declined to 32 

percent by 2009. See: http://www.cdfifund.gov/impact_we_make/research/CDFI%20Crisis%20Trend%202007-

2009%20Presentation.pdf
CDFI - 6

 To develop application materials;

 To establish application review policies and procedures; 

 To establish reporting requirements and compliance monitoring protocols; 

 To engage in program outreach; and 

 To conduct research and manage existing research and evaluation contracts. 

The introduction of a new program, as well as the increase in awards made under its existing 

programs, adds to the CDFI Fund’s growing awardee compliance monitoring portfolio. 

Fiscal Year 2013: The Administration requests the following for FY 2013:

 $128 million for the CDFI Program to support financial and technical assistance grants. 

Through the CDFI Program, the CDFI Fund offers federal resources to invest in and to build the 

capacity of CDFIs to serve low-income communities lacking adequate access to affordable 

financial products and services. The FY 2013 Budget supports monetary awards for financial 

assistance (FA) and technical assistance (TA) to CDFIs to further goals such as:

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

development);

- Affordable housing (housing development and homeownership); 

- Financial services (such as basic banking services to underserved communities); and

- Development services (such as financial literacy or homebuyer counseling and 

education).

 Up to $25 million in award funding for the HFFI to CDFIs to expand the offering of 

affordable financing for healthy food retail options in distressed communities. The HFFI is a 

multi-year effort to increase 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. 

 $12 million to support the NACA Program. Through the NACA Program, the CDFI Fund 

provides FA awards, TA grants, 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. 

 $15 million to support the BEA Program. Through the BEA Program, the CDFI Fund 

provides grants to FDIC-insured banks and thrifts to invest in CDFIs and to increase their 

lending and financial services in economically distressed communities.

 Up to $20 million for the Bank on USA Program, as authorized in section 1204 of the DoddFrank Wall Street Reform and Consumer Protection Act, to promote access to affordable 

financial services and basic consumer credit products to the ―unbanked‖ and ―underbanked.‖

 $21 million in administrative funding to support a variety of purposes, including:
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- Staffing and resource demands created by the unprecedented growth across all 

programs; 

- Administration of non-monetary award programs and activities (CDFI and CDE 

certification and recertification), the issuance of $1 billion in bond guarantees for the BG 

Program, and administration of the NMTC Program, including a new $ 2 billion 

Manufacturing Communities Tax Credit that would support qualified investments in 

communities affected by military base closures or mass layoffs, such as those arising 

from plant closures; 

- Fulfillment of significantly increased compliance monitoring requirements; 

- Continuation of research and program evaluation of the effectiveness of CDFI Fund 

grants and awards and the NMTC program; and

- Enhancement of existing management and information systems and improvement of

operational efficiency and effectiveness.
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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 2012 Enacted 79 $221,000

Changes to Base:

Maintaining Current Levels (MCLs): - $269

Maintaining Current Levels - $269

Non-Recurring Costs: - ($300)

Census Data Analysis - ($300)

Efficiency Savings: - ($780)

Office Lease Savings - ($500)

Procurement Savings - ($280)

Subtotal FY 2013 Changes to Base - ($811)

Total FY 2013 Base 79 $220,189

Program Changes:

Program Decreases: - ($22,189)

CDFI Program - ($18,082)

Bank Enterprise Award Program - ($3,000)

Administration - ($1,107)

Program Increases: - $23,000

Bank on USA Program - $20,000

Healthy Food Financing Initiative - $3,000

Total FY 2013 Request 79 $221,000

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) .........................................................+$269,000 / +0 FTE

Maintaining Current Levels +$269,000 / +0 FTE 

Funds are requested for inflation adjustments (1.7 percent) in non-labor expenses such as GSA 

rent adjustments, postage, supplies and equipment and health benefits and the increase in Federal 

Employees Retirement System participation. Funds are also requested for the proposed 2013 pay 

raise (0.5 percent).

Efficiency Savings .........................................................................................-$780,000 / +0 FTE

Office Lease Savings -$500,000 / +0 FTE 

This savings results from procuring leased office space at a lower price.

Procurement Savings -$280,000 / +0 FTE 

The CDFI Fund can achieve procurement savings by reducing non-competitive and high-risk 

contract actions and by implementing the use of socio-economic programs, such as 8(a) and 

small business set-asides. Other methods to achieve savings include strategic sourcing, advanced 

acquisition planning, and GSA discount savings.

Non-Recurring Costs ....................................................................................-$300,000 / +0 FTE

Census Data Analysis -$300,000 / +0 FTE 

This is a one-time administrative cost savings resulting from the decennial census data analysis 

requirement. The CDFI Fund will be required to launch a new version of the Community 

Investment Mapping System (CIMS) when the 2010 decennial census data is released in late 

2012. The CDFI Fund will not need to fund this requirement in FY 2013.
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Program Decreases .................................................................................. -$22,189,000 / +0 FTE

CDFI Program -$18,082,000 / +0 FTE 

The CDFI Fund will reduce the amount and number of financial assistance and technical 

assistance awards. The CDFI Fund will also have to reduce the funding level for its multi-year 

Capacity-Building Initiative, which provides technical assistance and capacity-building services 

to CDFIs and the financial services industry. 

Bank Enterprise Award Program -$3,000,000 / +0 FTE 

The CDFI Fund proposes to reduce the BEA Program by $3 million in FY 2013. Based on the 

current fiscal environment and competing CDFI Fund priorities, the CDFI Fund proposes to 

allocate these resources to other programs. The CDFI Fund will continue to evaluate the 

effectiveness of this program to determine future funding requests. 

Administration -$1,107,000 / +0 FTE 

The CDFI Fund proposes to reallocate current resources at a reduced cost providing internal 

capacity, particularly to the compliance monitoring area. 

Program Increases .................................................................................. +$23,000,000 / +0 FTE

Bank on USA Program +$20,000,000 / +0 FTE 

The Bank on USA Program will facilitate access to, and evaluate the effectiveness of, affordable, 

high-quality financial products, services, and education to unbanked and underbanked 

individuals. 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. Additionally, many of these households lack access to 

reasonably-priced, short-term consumer credit to meet emergency or regular needs, and often 

turn to payday loans, refund anticipation loans, pawn shops, and other generally high-priced 

alternatives. 

If funds are appropriated to support the program, the Bank on USA Program would have several 

distinct components, including: 

1. Community Grant Program – Grants would be provided to community collaborations 

(including local governments, non-profits, CDFIs and other financial institutions) to plan, 

launch, expand or improve new or existing efforts to serve unbanked or underbanked 

populations. 

2. Innovation Awards – Funds would be utilized to fund prizes, awards, competitions and 

demonstrations to spur new product or service development or adoption. Treasury would 

engage partner organizations to help administer these programs, and would also seek 

other financing partners to help leverage Treasury’s award dollars. 

3. Technical Assistance – Funds would be used to support technical assistance and capacitybuilding for local Bank on USA initiatives serving communities in need.
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Healthy Food Financing Initiative +$3,000,000 / +0 FTE 

The FY 2013 budget provides additional funding for the HFFI to continue increasing the 

availability of affordable, healthy foods in underserved urban and rural communities. The CDFI 

Fund will make CDFI Program awards to CDFIs that will finance healthy food alternatives in 

low-income neighborhoods.
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2.2 – Operating Levels Table 

Dollars in Thousands

 FY 2011 FY 2012 FY 2013

 Actual President's Enacted Proposed Proposed Request

Community Development Financial Institutions Fund Budget Reprogra Operating

 mmings Level

FTE 65 90 79 0 79 79

Object Classification

11.1 - Full-time permanent 6,560 8,655 7,362 0 7,362 7,388

11.9 Personnel Compensation (Total) $6,560 $8,655 $7,362 $0 $7,362 $7,388

12 - Personnel benefits 1,842 2,313 2,579 0 2,579 2,590

21 - Travel and transportation of persons 181 119 186 0 186 179

22 - Transportation of things 4 20 6 0 6 6

23.1 - Rental payments to GSA 1,539 1,153 1,470 0 1,470 1,144

23.2 - Rental payments to others 0 190 37 0 37 37

23.3 - Communication, utilities, and misc charges 180 368 411 0 411 422

24 - Printing and reproduction 167 20 50 0 50 25

25.1 - Advisory and assistance services 5,483 0 7,323 0 7,323 5,815

25.2 - Other services 918 4,671 5,781 0 5,781 1,033

25.3 - Other purchases of goods and services from Govt. accounts 3,786 3,334 2,173 0 2,173 2,289

25.5 - Research and development contracts 0 1,500 1,350 0 1,350 0

26 - Supplies and materials 38 111 99 0 99 86

31 - Equipment 111 111 27 0 27 33

41 - Grants, subsidies, and contributions 193,931 204,694 192,146 0 192,146 199,953

Total Budget Authority $214,740 $227,259 $221,000 $0 $221,000 $221,000

Budget Activities:

Bank Enterprise Award Program 21,956 0 18,000 0 18,000 15,000

Community Development Financial Institutions Program 162,830 125,869 146,035 0 146,035 127,953

Native American CDFI Assistance Program 11,352 12,000 12,000 0 12,000 12,000

Administration 18,602 22,965 22,965 0 22,965 21,047

Bank on USA Program 0 41,425 0 0 0 20,000

Healthy Food Financing Initiative 0 25,000 22,000 0 22,000 25,000

Total Budget Authority $214,740 $227,259 $221,000 $0 $221,000 $221,000
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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 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, 

notwithstanding section 4707(e) of title 12, United States Code with regard to Small 

and/or Emerging Community Development Financial Institutions Assistance awards] 

EX-3, $221,000,000, to remain available until September 30, [2013] 2014; of which 

$12,000,000[, notwithstanding section 4707(e) of title 12, United States Code,] 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; of which, notwithstanding section 

108(d) of such Act, up to [$22,000,000] $25,000,000 shall be for a Healthy Food 

Financing Initiative to provide [grants and loans] 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; of which 

[$18,000,000] $15,000,000 shall be for the Bank Enterprise Awards program; of 

which up to $20,000,000 shall be to implement section 1204 of the Dodd-Frank Wall 

Street Reform and Consumer Protection Act (Public Law 111–203); and of which up 

to [$22,965,000] $21,047,000 may be used for administrative expenses, including 

administration of the New Markets Tax Credit Program, up to $550,000 for the 

CDFI Bond Guarantee Program, and up to $300,000 for the direct loan program; of 

which up to [$10,315,000] $8,337,500 may be used for the cost of direct loans[; and 

of which up to $250,000 may be used for administrative expenses to carry out the 

direct loan program]: 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: Provided further, That [of the funds awarded under this heading, not 

less than 10 percent shall be used for projects that serve populations living in 

persistent poverty counties (where such term is defined as any county that has had 20 

percent or more of its population living in poverty over the past 30 years, as 

measured by the 1990, 2000, and 2010 decennial censuses)] amounts provided under 

this heading shall be available for the cost of guarantees pursuant to and as 

authorized by section 114A of the Riegle Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 4701 et seq.): Provided further, That funds for 

the cost of guarantees are available to subsidize total loan principal not to exceed 

$1,000,000,000: Provided further, That, pursuant to such section 114A, up to 

$1,000,000 collected from administration fees may be used for administrative 

expenses of the CDFI Bond Guarantee Program, and shall be in addition to funds 

otherwise provided for administrative expenses of the CDFI Bond Guarantee 

Program. (Department of the Treasury Appropriations Act, 2012.)

Removing the 

matching funds 

requirement waiver. 

Not provided in 

previous budget 

submissions. 

To expand the 

objectives of HFFI.

Funds Bank on USA 

Program created in 

Dodd/Frank.

Was added by 

Congress and has 

never been included in 

the President’s 

request. This 

requirement is 

unnecessary as it is 

already being met by 

CDFI Fund Programs 

included in this 

legislative language. 

To implement the 

Bond Guarantee 

Program as required 

by section 502 of the 

Congressional Budget 

Act of 1974.

2C – Legislative Proposals

The CDFI Fund does have any legislative changes.
CDFI - 13

Section 3 – Budget and Performance Report and Plan

3A – Administration 

($21,047,000 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 (NOFAs), 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 these support activities allow the CDFI Fund to carry out its overall mission.

The goal owner for this budget activity is the Deputy Director of the CDFI Fund.

Description of Performance: 

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

processes, enabling quicker award disbursements. In consultation with Treasury’s Office of 

Performance Budgeting (OPB), new administrative efficiency measures were implemented 

beginning in FY 2010. These measures replaced the old administrative efficiency measure, 

which was based on the cost per application processed for each program. The new 

administrative measure has two components: cycle time from the date when applications are 

received to the date of award announcement, and time from the date of award announcement to 

date of disbursement.

These administrative measures (All-application-award and All-award-disbursement cycle times) 

were initially applied to each of the CDFI Fund’s programs, and were first tested through the 

deployment of the CDFI Fund’s Recovery Act funding rounds. In FY 2010, the two 

administrative measures were analyzed across all programs to formulate two composite, CDFI 

Fund-wide efficiency measures based on the weighted average of the number of awards per 

program. 

In FY 2011, these two CDFI Fund-wide composite administrative efficiency measures were 

baselined to set performance targets in FY 2012 and 2013. Each cycle time is measured in 

months and calculated as a weighted average of the number of awards in each round across all 

CDFI Fund programs. In FY 2011, the CDFI Fund set an experimental benchmark target of 7.5 

months for program application-award cycle time target, which the CDFI Fund managed to reach 

despite the delays in the appropriation process. In addition, an experimental benchmark target 

for award-disbursement cycle time was set for disbursing 85 percent of the awards within two

months of announcing the awards to test CDFI Fund’s administrative processes. This target was 

met. At this time, the CDFI Fund expects to keep the two administrative targets steady for the 

next two years, although the award-disbursement target has been raised to 2.5 months to ensure 

the necessary quality assurance in accordance with internal controls.

In consultation with OPB, the CDFI Fund has developed other composite performance measures 

that add up performance across programs. A discussion of these composite measures is reported 

in this section because they summarize the outcomes of all programs. Starting in FY 2011, 
CDFI - 14

program-level job creation/maintenance measures and affordable housing and businesses 

financed measures were standardized and consolidated into CDFI Fund-wide measures to reflect 

the outcome of all programs (rather than reporting individual program-level measures). In 

particular, the job creation/maintenance measure was standardized across programs. ―Jobs 

created‖ are new jobs created after the loan or investment is made. ―Jobs maintained‖ are jobs at 

the business at the time the loan or investment is made. Total jobs are derived for a given year 

from (i) all business loans originated in the CDFI awardee portfolio; (ii) all loans or investments 

made by NMTC allocatees in qualified low-income community business and tenant jobs; and 

(iii) all loans or investments made by other CDFI Fund program awardees. Total jobs are 

computed as full-time equivalents. 

In FY 2011, baseline data for the new composite All- jobs created and maintained measure 

totaled 55,274. This jobs created/maintained performance baseline data reflects the partial 

impact of Recovery Act investments deployed in this period, and this influence was considered 

when setting targets on a budget-adjusted basis for future years. Thus, the targets for FY 2012 

and FY 2013 reflect lower requested budget levels and projected inflation adjustment, as well as 

the tapering off of Recovery Act investments. 

In FY 2011 the baseline information for the composite All-affordable housing measure totaled 

19,083 units and includes real estate construction and rehabilitation units financed in part by 

CDFI Program financial assistance awardees and NMTC allocatees. In FY 2013 the Allaffordable housing measure will include CMF units financed, which will require the preliminary 

target established for FY 2013 to be revised upward based on detailed analysis of CMF 

awardees’ business plans and forecasts. Please note that when interpreting the outcome data 

reported for any performance measure in a given fiscal year, the outcomes are the results of prior 

year funding.

With respect to administrative performance plans in FY 2012, the CDFI Fund will develop 

baseline compliance reporting on the percent of awardees in default. In FY 2013, CDFI Fund 

staff will perform compliance desk reviews and, continue with plans for modernizing and 

automating the compliance review process. Moreover, the CDFI Fund will continue to 

implement an initiative to recertify CDFIs that have not undergone this process recently (within 

the past three years). It is important to maintain the integrity and strength of CDFI certification; 

beyond making CDFIs eligible for CDFI Fund funding programs, CDFI certification is a brand 

that carries with it other important tangible and intangible benefits, such as assisting CDFIs in

raising additional capital from mainstream banks, corporations, foundations, and state and local 

governments.

In FY 2012, the CDFI Fund began the initial phases of replacing its legacy business systems 

with the Awards Management Information System. Ultimately, the new system will result in a 

more efficient and reliable system that fully integrates all phases of the certification and awards 

information data system lifecycle, including certification and recertification, application reviews, 

awards agreements, disbursements, modifications, performance reporting and compliance status 

and close-outs.
CDFI - 15

3.1.1 – Administration Budget and Performance Report and Plan 

Dollars in Thousands 

Administration Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $0 $0 $9,630 $12,483 $13,797 $22,954 $22,965 $21,047

Total Resources $0 $0 $9,630 $12,483 $13,797 $22,954 $22,965 $21,047

Budget Activity Total $0 $0 $9,630 $12,483 $13,797 $22,954 $22,965 $21,047

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

ALL - Affordable Housing 

Units Created

N/A N/A N/A N/A N/A 19,083 16,419 16,018

ALL - Award Cycle Time 

(Months)

N/A N/A N/A N/A N/A 7.4 7.5 7.5

ALL - Disbursement Cycle 

Time (Months)

N/A N/A N/A N/A N/A 2.1 2.5 2.5

ALL - Jobs 

Created/Maintained

N/A N/A N/A N/A N/A 55,274 43,335 43,335

Key: DISC - Discontinued and B - Baseline

1/ In addition, $13.5 million is available through September 30, 2012 for administration of the Bond Guarantee 

Program provided in PL 111-240 through FY 2012.

2/ In FY 2009, the CDFI Fund received $1.9 million for administration of American Recovery and Reinvestment 

Act (ARRA), Public Law 111-05.

3B – Community Development Financial Institutions Program

($127,953,000 from direct appropriations) 

The program funded by this budget activity 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 

financial assistance awards to CDFIs that have comprehensive business plans for creating 

community development impact and that demonstrate the ability to leverage private sector 

sources of capital, as well as technical assistance grants to CDFIs and entities proposing to 

become CDFIs. The goal owner for this budget activity is the Program Manager for the CDFI 

Fund Program. 

Description of Performance

As detailed in Table 3.1.2, in FY 2011, CDFI awardees reported originating 16,313 loans 

totaling more than $1.2 billion based on their portfolio of activities in FY 2010.5 Because these 

 

5

In FY 2011 the CDFI Program added two new performance outcome measures: Number of loans/investments 

originated by CDFI awardees in the reporting year and Amount of loans/investments originated by CDFI awardees 
CDFI - 16

measures were new in FY 2011, the data on the amount and number of loans or investments 

originated provides baseline information to benchmark and target program performance in the 

upcoming fiscal year. Of these transactions, $296.8 million were originated for 5,233 business 

and microenterprise loans, $357.3 million for 5,010 home improvement and purchase loans, and 

$289 million for 679 residential real estate transactions. CDFI Program awardees provided funds 

for projects that created or maintained 25,199 jobs.6 Program performance targets are set slightly 

lower in the forthcoming fiscal years based on the level of budget requests and inflation 

adjustment.

The Percentage of eligible areas served by CDFI awardees measured 22.1 percent for the 

reporting period, with this metric providing a program coverage measure of the percentage of all 

program-eligible census tracts that had one or more transactions originated by a CDFI awardee. 

This data provides baseline information for this new performance metric to benchmark and target 

program performance for upcoming fiscal years: on a budget-adjusted basis the final 2012 target 

and proposed 2013 target are set at 20 percent.

7

 Targets are set slightly lower in the forthcoming 

fiscal years because there is uncertainty about the number and distribution of eligible census 

tracts with the adoption of the new five-year American Community Survey census data.

 

in the reporting year. These two new measures replace the CDFI Program’s private sector leverage measure, which 

was viewed as too sensitive to macroeconomic factors and has now been converted to an indicator.

6

See CDFI Fund Agency Financial Report, FY 2011, pages 16-17. This jobs data is based on loans and investments 

originated by the CDFIs awardees during the reporting year (a change from the prior reporting convention which 

was based on loans/investments outstanding).

7 The percentage of eligible areas served by CDFI awardees measures the percentage of all eligible census tracts 

receiving at least one origination in the past three years. This methodological change reduces fluctuations and 

ensures more accurate forecasting.
CDFI - 17

3.1.2 – CDFI Program Budget and Performance Report and Plan

Dollars in Thousands 

Community Development Financial Institutions Program Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $30,969 $31,881 $52,250 $149,750 $107,600 $144,660 $146,035 $127,953

Total Resources $30,969 $31,881 $52,250 $149,750 $107,600 $144,660 $146,035 $127,953

Budget Activity Total $30,969 $31,881 $52,250 $149,750 $107,600 $144,660 $146,035 $127,953

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

CDFI - Amount of 

Loans/Investments Originated 

(Annual) (Dollars in Millions)

N/A N/A N/A N/A N/A 1,228.0 1,188.0 1,156.0

CDFI - Number of 

Loans/Investments Originated 

(Annual)

N/A N/A N/A N/A N/A 16,313 16,000 16,000

Percentage of Eligible Areas 

Served by CDFI Awardees 

N/A N/A N/A N/A N/A 22.1 20.0 20.0

Key: DISC - Discontinued and B - Baseline

1/ The CDFI Program received $90 million of ARRA funding in FY 2009.

3C – New Markets Tax Credit Program

($0 from direct appropriations)

Through the NMTC Program, the CDFI Fund attracts private sector capital to low-income 

communities by allowing individual and corporate investors to receive a tax credit against their 

federal income taxes in exchange for making equity investments in Community Development 

Entities (CDEs); in turn, CDEs use the money to finance businesses and real estate projects in 

their communities. The investor’s tax credit equals 39 percent of the amount invested and is 

drawn over seven years. This activity supports the CDFI Fund’s Strategic Goal No. 2: To 

improve economic conditions in distressed communities through increased public and private 

investment.

In addition, the FY 2013 President’s Budget proposes to reauthorize the NMTC Program through 

2013, requesting $7 billion of allocation authority annually. The CDFI Fund is also requesting a 

statutory change to enable investors to use NMTC as an offset against their Alternative 

Minimum Tax. Of the $7 billion requested for the NMTC Program in 2013, the CDFI Fund 

anticipates allocating $250 million to support financing healthy food options in distressed 

communities as part of HFFI. Within the FY 2013 allocation request, the Budget also proposes 

to provide a new allocated tax credit, the Manufacturing Communities Tax Credit, which would 

support qualified investments in communities affected by military base closures or mass layoffs, 

such as those arising from plant closures. This credit could be structured using the mechanism of 
CDFI - 18

the New Markets Tax Credit or an alternative allocated investment credit mechanism. The 

proposal would provide about $2 billion in credits per year for qualified investments approved in 

2012, 2013 and 2014. The goal owner for this budget activity is the NMTC Program Manager.

Description of Performance

The 2010 NMTC authority was allocated in FY 2011 due to the late passage of The Tax Relief, 

Unemployment Insurance Reauthorization and Job Creation Act of 2010 in December 2010. For 

the 2010 round, the NMTC Program awarded, through its annual competitive application 

process, $3.5 billion in NMTC allocation authority to CDEs for targeted investments in lowincome communities. 

In FY 2011, NMTC allocatees reported annual investments of nearly $4.7 billion in low-income 

communities by CDEs, exceeding the annual target of $3.1 billion, largely due to the continued 

impact of Recovery Act tax credit authority. Of these new investments, more than $2.2 billion 

went into non-real estate businesses, and more than $2.3 billion went into real estate activities. 

In FY 2011, NMTC allocatees reported 30,075 jobs to be created by businesses, and another 

37,669 construction-related jobs (which are not tabulated in the All-Jobs measure which only 

counts non-construction jobs). Future targets reflect the tapering off of Recovery Act 

investments and are inflation adjusted.

To date, the cumulative CDE investment total has risen to $20.9 billion. More than 72 percent of 

new investments went to severely distressed communities, exceeding the target of 68 percent and 

reflecting the continued effect of Recovery Act tax credit authority.8 Future targets reflect the 

tapering off of Recovery Act investments and the uncertainty associated with the adoption of the 

of the new five-year American Community Survey census data (2006-2010) for defining 

program-eligible census tracts and the number and distribution of severely distressed 

communities.

 

8

See the CDFI Fund’s Agency Financial Report FY 2011, page 24 for source data. ―Severely distressed‖ 

communities include Census tracts with poverty rates above 30 percent; or median family incomes below 60 percent 

of the metropolitan or state median; or unemployment rates greater than 1.5 times the national average.
CDFI - 19

3.1.3 – New Markets Tax Credit Program Budget and Performance Report and Plan

Dollars in Thousands 

New Markets Tax Credit Program Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $4,254 $4,258 $4,120 $4,267 $4,203 $0 $0 $0

Total Resources $4,254 $4,258 $4,120 $4,267 $4,203 $0 $0 $0

Budget Activity Total $4,254 $4,258 $4,120 $4,267 $4,203 $0 $0 $0

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Community Development 

Entities' Annual Investments 

In Low-Income Communities 

($ billions) 

2.0 2.5 3.3 3.6 3.1 4.7 4.0 4.0

NMTC-Percentage of Loans 

and Investments that Went 

Into Severely Distressed 

Communities 

71.0 76.0 73.0 81.0 73.4 72.4 70.0 70.0

Key: DISC - Discontinued and B - Baseline

1/ The NMTC Program received $67 thousand of ARRA funding in FY 2009.

2/ NMTC Program Administration is included in the Administration budget activity for the FY 2013 Budget request.

3D – Bank Enterprise Award Program

($15,000,000 from direct appropriations)

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

increase investments and services in community development activities in distressed and lowincome communities and to provide financial assistance to CDFIs. These objectives align with 

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. The goal 

owner for this budget activity is the BEA Program Manager.

Description of Performance: In FY 2011, the CDFI Fund received 82 eligible applications 

requesting a total of approximately $78 million, compared to 76 applications requesting a total of 

approximately $94 million in FY 2010. The CDFI Fund selected 77 FDIC-insured institutions to 

receive approximately $22 million in BEA Program awards. The average award was $285,143. 

Awardees reported an increase in community development activities of $268 million in 2011. 

FY 2011 BEA Program awardees increased loans and investments in distressed communities by 

$201.1 million; increased equity investments, loans, deposits, and technical assistance to CDFIs 

by $66 million; and increased the provision of financial services in distressed communities by 

$1.2 million. These increases in community development activities are largely a result of the 

mission focus of community development banks. FY 2011 awardees are headquartered in 

21states and the District of Columbia, compared to the 20 states and the District of Columbia 
CDFI - 20

represented in the prior year. Due to delays related to finalizing the FY 2011 appropriations, the 

awards were not announced until the first quarter of FY 2012. 

3.1.4 – Bank Enterprise Award Program Budget and Performance Report and Plan

Dollars in Thousands 

Bank Enterprise Award Program Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $13,417 $12,551 $20,000 $22,000 $25,000 $21,956 $18,000 $15,000

Total Resources $13,417 $12,551 $20,000 $22,000 $25,000 $21,956 $18,000 $15,000

Budget Activity Total $13,417 $12,551 $20,000 $22,000 $25,000 $21,956 $18,000 $15,000

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

BEA-Increase in Community 

Development Activities Over 

Prior Year For All BEA 

Program Applicants ($ million) 

318.0 227.0 232.0 292.0 290.0 268.3 245.0 200.0

Key: DISC - Discontinued and B - Baseline

3E –Native American CDFI Assistance Program

($12,000,000 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. This budget activity 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 NACA Program, 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. The goal owner for this budget activity is the NACA

Program Manager.

Description of Performance

As detailed in Table 3.1.5, in FY 2011 NACA awardees reported originating more than 1,000 

loans amounting to $14.7 million.9 Because these performance metrics were new in FY 2011, 

the data on the amount and number of loans originated provide baseline information to target 

program performance in the upcoming fiscal year on an inflation-adjusted basis; as a result 

 

9

In FY 2011 the NACA Program added two new performance outcome measures: Number of loans/investments 

originated by NACA awardees in the reporting year; and Amount of loans/investments originated by NACA 

awardees in the reporting year. These two new measures replace the NACA Program’s asset growth measure, 

which has now been converted to an indicator because it was viewed as unstable and difficult to forecast due to the 

influence of external and macroeconomic factors. With respect to this asset growth indicator, NACA awardees 

reported a 4.7 percent increase in their assets in FY 2011.
CDFI - 21

targets are slightly lower. However, in a continued effort to achieve high future performance in 

key outcomes, the CDFI Fund, in partnership with Federal Reserve Board of Governors, several 

Federal Reserve Banks, and several federal agencies, will convene with Native and tribal 

representatives a series of regional events entitled ―Growing Economies in Indian Country 

Workshops‖ to establish open dialogue, identify regional concerns, highlight federal funding 

opportunities for Native Communities, and showcase successful development models.

In FY 2011 the NACA Program received 82 applications requesting a total of $29.4 million. The 

CDFI Fund awarded $11.85 million to 35 groups in 17 states. Of the $44.6 million in loans 

outstanding held by reporting Native CDFIs, more than 46 percent went to business loans, nearly 

25 percent for home purchase or home improvement loans, more than 19 percent for consumer 

loans, and the balance to residential and commercial real estate loans.

3.1.5 – Native American CDFI Assistance Program Budget and Performance Report and 

Plan

Dollars in Thousands 

Native American CDFI Assistance Program Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $5,810 $5,816 $8,000 $16,500 $12,000 $11,976 $12,000 $12,000

Total Resources $5,810 $5,816 $8,000 $16,500 $12,000 $11,976 $12,000 $12,000

Budget Activity Total $5,810 $5,816 $8,000 $16,500 $12,000 $11,976 $12,000 $12,000

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

NACA - Amount of 

Loans/Investments Originated 

(Annual) (Dollars in Millions)

N/A N/A N/A N/A N/A 14.7 14.5 14.5

NACA - Number of 

Loans/Investments Originated 

(Annual)

N/A N/A N/A N/A N/A 1,004 1,000 1,000

Key: DISC - Discontinued and B - Baseline

1/ The NACA Program received $8 million of ARRA funding in FY 2009.

3F – Healthy Food Financing Initiative

($25,000,000 from direct appropriations) 

The HFFI, a component of the First Lady’s Let’s Move! Campaign, is an inter-agency 

partnership between the Department of the Treasury and the Departments of Agriculture and 

Health and Human Services, made funding available to CDFIs, community and/or economic 

development organizations, non-profits, public agencies, and businesses to help address the need 

for healthy food in underserved and low-income communities. These organizations will use 

Federal grants, below market-rate loans, loan guarantees, and tax credits to attract private sector 
CDFI - 22

capital to projects that increase access to healthy food options, with a broad goal of eradicating 

food deserts by 2017.

This budget activity 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 populations. Through the HFFI, the CDFI Fund will award CDFI Program funds to 

CDFIs that will finance healthy food retail outlets in communities lacking adequate access to 

healthy food options. The goal owner for this budget activity is the HFFI Program Manager.

Description of Performance

The primary HFFI performance measurement is the number of retail food outlets created and 

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

as having limited access to healthy food retail options. In addition, HFFI projects will report on 

all other required CDFI performance data through the CDFI Fund’s Community Investment 

Impact System. Performance measures were developed in FY 2011, with baseline reporting 

slated to begin in FY 2013.10

3.1.6 – Healthy Food Financing Initiative Budget and Performance Report and Plan

Dollars in Thousands 

Healthy Food Financing Initiative Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $0 $0 $0 $0 $0 $25,000 $22,000 $25,000

Total Resources $0 $0 $0 $0 $0 $25,000 $22,000 $25,000

Budget Activity Total $0 $0 $0 $0 $0 $25,000 $22,000 $25,000

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

HFFI - Retail Outlets 

Created/Preserved

N/A N/A N/A N/A N/A N/A B N/A

Key: DISC - Discontinued and B - Baseline

 

10 HFFI awardees have one core program measure to report on which identifies low-income areas with low-access to 

healthy food options. In addition, all HFFI awardees must also report on all other required institutional and 

transaction data fields that any non-HFFI awardee must report on. For more detail on all of the non-HFFI 

performance reporting metrics please see the complete documentation for the Community Investment Impact 

System: http://www.cdfifund.gov/what_we_do/ciis.asp
CDFI - 23

3G – Bank on USA Program

($20,000,000 from direct appropriations)

Through the Bank on USA Program, the CDFI Fund will work in partnership with Treasury’s 

Office of Financial Education and Financial Access to promote access to, and innovations in, 

affordable and high-quality financial services, basic consumer credit products, and financial 

education for the ―unbanked‖ and ―underbanked.‖ According to the Federal Deposit Insurance 

Corporation (FDIC), 25 percent of all Americans are unbanked or under-banked (i.e., they have a 

bank account but also use alternative service providers such as check cashers or payday 

lenders).11 This budget activity supports the CDFI Fund’s Strategic Goal No. 3: To expand 

access to financial services and improved financial education for underserved populations. This 

budget activity provides access to basic financial services and consumer credit products to 

unbanked or underbanked communities. The goal owner for this budget activity is a CDFI Fund 

Senior Advisor. 

Description of Performance

The Bank on USA Program will measure performance based on the number of new accounts 

opened by persons who were previously unbanked, which will indicate whether institutions are 

providing unbanked and under-banked consumers access to affordable and appropriate financial 

products and services. This measure will be baselined in FY 2014. Additional performance 

indicators, such as additional financial products and services provided to new clients, and the 

number of clients provided with financial and credit counseling services, will be collected 

internally by the CDFI Fund from Bank on USA awardees to more accurately evaluate awardee

performance and overall program effectiveness.

3.1.7 – Bank on USA Program Budget and Performance Report and Plan

Dollars in Thousands 

Bank on USA Program Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $0 $0 $0 $0 $0 $0 $0 $20,000

Total Resources $0 $0 $0 $0 $0 $0 $0 $20,000

Budget Activity Total $0 $0 $0 $0 $0 $0 $0 $20,000

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

BankOn - Number of 

Accounts Opened

N/A N/A N/A N/A N/A N/A N/A B

Key: DISC - Discontinued and B - Baseline

 

11 See: ―FDIC National Survey of Unbanked and Underbanked Households‖, December 2009, 

http://www.fdic.gov/householdsurvey/
CDFI - 24

3H – Financial Education and Counseling Pilot Program and Hawaii Consolidated

($0 from direct appropriations)

Awardees for the FY 2009 funding round received their awards in August 2010 and were 

required to submit initial performance reporting results in January 2011. Awards for the FY 

2010 round were made in October 2010 and awardees were required to report their initial 

performance results in July 2011. Baseline data for each round are consolidated and reported in 

a single table with targets projected based on both initial results and the original business plans 

submitted by applicants. Program outcomes align with the CDFI Fund’s Strategic Goal No. 3: 

To expand access to financial services and improved financial education for underserved 

populations.

3.1.8 – Financial Education and Counseling Pilot Program and Hawaii Consolidated

Budget and Performance Report and Plan 

Dollars in Thousands 

Financial Education and Counseling Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Enacted Enacted Enacted Enacted Enacted Enacted Enacted Request

 Appropriated Resources $0 $0 $0 $2,000 $4,150 $0 $0 $0

Total Resources $0 $0 $0 $2,000 $4,150 $0 $0 $0

Budget Activity Total $0 $0 $0 $2,000 $4,150 $0 $0 $0

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

FEC - Number of Prospective 

Homebuyers Served

N/A N/A N/A N/A N/A 1,135 2,200 2,124

Key: DISC - Discontinued and B - Baseline

1/ FY 2010 includes $3.1 million for Hawaii Financial Education and Counseling.

Detailed information about each performance measure, including definition, verification and 

validation is available.
CDFI - 25

Section 4 – Supplemental Information

4A - Capital Investment Strategy

For FY 2013, the CDFI Fund plans to spend approximately $4.33 million on Information 

Technology (IT) as its capital investment strategy. 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 limited IT resources on IT solutions that 

directly support the mission of the CDFI Fund. One important mission-focused IT 

modernization activity is the acquisition of an Award Management Information System (AMIS)

— an enterprise commercial off-the-shelf product that will replace the CDFI Fund’s legacy 

business systems. By streamlining business processes and leveraging modern automation and 

technology, the CDFI Fund will be able to handle larger volumes of grants, tax credits, and loan 

portfolios while achieving more transparency and better data quality, and providing better 

service to our customers. 

Last year, the CDFI Fund identified three non-major IT investments: Community Investment 

Impact System (CIIS), CDFI Fund Public Website, and CDFI LAN. For FY 2013, the CDFI 

Fund will maintain CIIS and the CDFI Fund Public Website funding levels flat compared to FY 

2011. The CDFI LAN investment, which consisted of funding for both the grant processing 

systems and the supporting IT infrastructure, will be separated into two steady state, non-major 

IT investments. With AMIS to be deployed in the FY 2013/FY 2014 timeframe, this budget 

cycle is appropriate to separate maintenance of the CDFI Fund’s mission-based systems from 

supporting infrastructure.

In addition, the CDFI Fund will create a steady, non-major investment for IT Security and 

Privacy services. Separating IT Security and Privacy costs from other IT infrastructure costs will 

better represent the investment the CDFI Fund is making to secure its business systems, protect 

sensitive information, and provide proactive protection from viruses, spyware, and other threats.

IT Infrastructure Investments

The primary CDFI Fund IT infrastructure activity is the Data Center Consolidation Initiative. 

Beginning in 2010, the CDFI Fund has been decommissioning its current data centers and 

receiving commodity IT infrastructure services from another Treasury bureau, the Alcohol and 

Tobacco Tax and Trade Bureau (TTB). The scope of the Data Center Consolidation Initiative 

includes telecommunication services (e.g., network and Internet services), data center services 

(i.e., shutting down our data center), and end-user services (e.g., desktop management and 

consolidated software licenses).

The benefits of the Data Center Consolidation Initiative are numerous. 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 
CDFI - 26

by using TTB’s enterprise software licenses, stops duplicative services (such as Web monitoring 

and filtering), and eliminates contracts used to maintain CDFI Fund’s IT infrastructure. A 

summary of capital investment resources, including major information technology and nontechnology investments is available.

4B – Bond Guarantee Program

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

(BG) Program. These bonds will support CDFI lending and investment activity in underserved 

communities by providing a source of long-term capital. Qualified issuers can use funds raised 

through the bonds to issue or to refinance loans for eligible community and economic 

development purposes. Treasury may guarantee up to $1 billion in bonds each year, at a 

minimum of $100 million per bond. During FY 2012, the CDFI Fund will complete BG Program 

development, including promulgation of the program implementing regulations. In FY 2013, the

CDFI Fund anticipates administering $1 billion in bonds to qualified CDFIs. The following 

objectives have been identified for the BG Program for FY 2013:

 To approve Qualified Issuers to issue bonds; 

 As a portfolio risk management tool, to request an audit of CDFI borrowers in the BG 

Program in compliance with OMB Circular A-133; and

 To conduct on-site reviews of a representative sample of CDFI borrowers in the BG 

Program. On site reviews will be conducted by the Designated Bonding Authority (DBA).

4.1 – Resource Detail Table

Dollars in Thousands

Bond Guarantee Program FY 2010 FY 2011 FY 2012 FY 2013 % Change

Resource Level Enacted Enacted Enacted Request FY 2012 to 

FY 2015

Obligations1- - - $1,001,000 100.00%

Loan Limitation Obligation Authority1- - - $1,001,000 100.00%

1/Includes the 10 basis point fee for administrative expenses. Includes the 10 basis point fee for administrative 

expenses (pursuant to Section 114A (g)(1) of the Riegle Community Development and Regulatory Improvement 

Act of 1994, as amended by Section 1134 of the Small Business Jobs Act of 2010. 

4.2 – Financing Accounts - Non-Budgetary Summary

Dollars in Thousands

Bond Guarantee Program FY 2010 FY 2011 FY 2012 FY 2013 % Change

Resource Level Enacted Enacted Enacted Request FY 2012 to 

FY 2015

Obligations1- - - $1,001,000 100.00%

Collections2- - - $1,633 100.00%

1/Includes the 10 basis point fee for administrative expenses.

2/Includes the 10 basis point fee for administrative expenses plus 19 basis points on the disbursement of 

$333,333,333. The fee is calculated as a result of the equation to make a representative pool of CDFIs loans have 

a zero subsidy in the BG Program. Zero subsidy = Default Rate (net of recoveries) + (12.5) bps (financing 

spread to the Federal Financing Bank) + (300) bps (risk share pool per statute) + (19) bps (fee on disbursement). 

OMB will determine default rate for each CDFI loan pool based on BG Program credit subsidy model.