CDFI-1

Overview

Mission Statement

Increase economic opportunity and promote community development investments for 

underserved populations and in distressed communities in the United States.

Program Summary by Budget Activity

Dollars in Thousands

Appropriation FY 2010 FY 2011 FY 2012 Change 

FY10 to FY12

Enacted Annualized

CR Level

Request $ Change % Change

 Community Development Financial Institutions Program $107,600 $107,600 $125,869 $18,269 16.98%

 Bank Enterprise Award Program $25,000 $25,000 $0 ($25,000) (100.0%)

 Native Initiatives $12,000 $12,000 $12,000 $0 -

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

 Administration* $18,000 $18,000 $22,965 $4,965 27.58%

 Financial Education and Counseling $1,000 $1,000 $0 ($1,000) (100.0%)

 Hawaii Financial Ed and Counseling $3,150 $3,150 $0 ($3,150) (100.0%)

 Bank on USA Initiative N/A N/A $41,425 $41,425 100.0%

 Healthy Food Financing Initiative N/A N/A $25,000 $25,000 100.0%

Total Appropriated Resources $246,750 $246,750 $227,259 ($19,491) (7.9%)

Total FTE 84 84 90 6 7.14%

* NMTC Program Administration is included in the Administration budget activity for the FY 2012 Budget request.

** In addition, $13.5 million is available for the administration of the Bond Guarantee Program provided in PL 111-

240.

FY 2012 Priorities

In accordance with the Department of the Treasury’s Strategic Goal of Ensuring that the 

U.S. and World Economies Perform at Full Economic Potential, the Strategic Objective 

of Improved Economic Opportunity, Mobility and Security with Robust, Real, Sustainable 

Economic Growth at Home and Abroad, and the Strategic Outcome of Strong U.S. 

Economic Competitiveness, the CDFI Fund’s FY 2012 priorities are:

• To administer all award and certification programs and initiatives effectively, 

efficiently, and in a timely manner; improve management processes through 

continuous assessment of policies and procedures; and align administrative resources 

to address programmatic growth. 

• To implement the Healthy Food Financing Initiative that will support CDFIs to 

increase the availability of affordable, healthy foods in underserved urban and rural 

communities.

• To support human capital investment to develop staff skills and expertise. To

significantly upgrade award management and information technology systems to 

more cost effectively administer an increased application workload, increased 

compliance monitoring activities, and new research initiatives. 
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Table of Contents

Overview ............................................................................................................................ 1

Mission Statement........................................................................................................... 1

Program Summary by Budget Activity........................................................................... 1

FY 2012 Priorities........................................................................................................... 1

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

1A – Description of Bureau Vision and Priorities.......................................................... 3

1B – Program History and Future Outlook..................................................................... 3

Section 2 – Budget Adjustments and Appropriation Language................................... 6

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

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

2.3 – Appropriations Detail............................................................................................. 9

2B – Appropriations Language and Explanation of Changes....................................... 10

Section 3 – Budget and Performance Plan ................................................................... 11

3.1 – Budget by Strategic Outcome .............................................................................. 11

3.2.1 – CDFI Program Budget and Performance Plan.................................................. 11

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan ................... 12

3.2.3 – Bank Enterprise Award Program Budget and Performance Plan ..................... 13

3.2.4 – Native Initiatives Budget and Performance Plan.............................................. 14

3.2.5 – Capital Magnet Fund Budget and Performance Plan........................................ 15

3.2.6 – Administration Budget and Performance Plan ................................................. 16

3.2.7 – Healthy Food Financing Initiative Budget and Performance Plan ................... 17

3.2.8 - Bank on USA Initiative Budget and Performance Plan .................................... 18

3.2.9 – Financial Education and Counseling Pilot Program Budget and Performance 

Plan ............................................................................................................................... 19

3.2.10 – Financial Education and Counseling Pilot Program (Hawaii) Budget and 

Performance Plan.......................................................................................................... 19

Section 4 – Supporting Materials .................................................................................. 20

4A-- Human Capital Strategy ....................................................................................... 20
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Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

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.

In accordance with the Department of the Treasury’s goal of repairing and reforming the 

financial system, the CDFI Fund’s FY 2012 priorities are:

Priority 1: To administer all award and certification programs and initiatives effectively, 

efficiently, and in a timely manner; improving management processes through continuous 

assessment of policies and procedures and aligning administrative resources to address 

programmatic growth. The CDFI Fund will develop and implement new initiatives in 

FY 2012; administer existing programs efficiently, effectively and in a timely manner; 

address increased programmatic requirements; and position the CDFI Fund to undertake 

new initiatives beyond FY 2012, as needed.

Priority 2: To implement the Healthy Food Financing Initiative that will support CDFIs 

to increase the availability of affordable, healthy foods in underserved urban and rural 

communities.

Priority 3: To support human capital investment to develop staff skills and expertise. 

The CDFI Fund will undertake activities to develop and maintain staff skills and 

expertise in order to be responsive to the latest trends in the fields of community 

development finance, economic development and federal agency policies and practices.

Priority 4: To significantly upgrade award management and information technology 

systems to more cost effectively administer an increased application workload, increased 

compliance monitoring activities, and new research initiatives. The CDFI Fund will 

enhance its information technology systems, including hardware and applications, in 

order to support significant programmatic growth.

1B – Program History and Future Outlook

Fiscal Year 2010: In FY 2010, in addition to the CDFI and Native award programs, the 

CDFI Fund implemented two new initiatives: the Capital Magnet Fund (CMF) and the 

Financial Education and Counseling (FEC) Pilot Program. During this time the CDFI 

Fund processed:

• 322 Financial Assistance (FA) applications and made 147 FA awards totaling 

$102 million under the FA component of the CDFI Program;

• 86 Technical Assistance (TA) applications and made 32 TA awards totaling 

$2.9 million under the TA component of the CDFI Program;

• 61 applications and made 45 awards totaling $10.3 million under its Native 

Initiatives;
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• 76 applications and made 69 awards totaling $25 million under the BEA Program;

• 233 applications and made 9 awards totaling $6.15 million under the FEC Program 

(FY 2009 and FY 2010 funding);

• 250 applications under the New Markets Tax Credit Program, which will be awarded 

in February 2011;

• 1,595 compliance reviews by the Certification, Compliance, Monitoring, and 

Evaluation office during FY 2009 and FY 2010.

In addition, in FY 2010, the CDFI Fund launched a multi-year capacity building initiative 

through which it has entered into vendor contracts to provide technical assistance and 

capacity building services to CDFIs. Moreover, the CDFI Fund launched a multi-year 

effort to re-certify all CDFIs whose certification determinations are at least three years 

old (encompassing approximately 600 CDFIs). The CDFI Fund also certified 142 new 

institutions as CDFIs, and re-certified an additional 56 organizations as CDFIs. 

Fiscal Year 2011: During the first quarter of FY 2011, the CDFI Fund processed a total 

of 230 applications and made 23 awards totaling $80 million under the CMF Program. 

During FY 2011, the CDFI Fund will implement a new initiative and assist in the 

implementation of another that were authorized and funded under the Small Business 

Jobs Act of 2010 (P.L. 111-240): 

• The CDFI Bond Guarantee Program (Sec. 1134); and 

• The Small Business Lending Fund Program related to Community Development 

Loan Funds (Sec. 4102), in support of Treasury’s Office of Financial Institutions.

In addition, , the CDFI Fund is preparing to implement a new initiative authorized in 

Title 12 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 

(P.L. 111-203): 

• The Bank on USA Program (Section 1204) in conjunction with Treasury’s Office 

of Financial Education and Financial Access.

 

Finally, in FY 2011, the CDFI Fund is also prepared to administer the Healthy Food 

Financing Initiative through its CDFI Program as well as through the NMTC Program. 

Fiscal Year 2012 (proposed): During FY 2012, the CDFI Fund will continue to execute 

its core programs and administer the new programs that were implemented during 

FY 2011. With the introduction of new programs, the CDFI Fund will use its resources 

to: engage in program outreach, develop application materials, establish application 

review policies and procedures, and establish reporting requirements and compliance 

monitoring protocols. The introduction of new programs, as well as the increase in 

awards made under its existing programs, will also add to the CDFI Fund’s growing 

portfolio of awardees. 

The CDFI Fund is requesting $125.9 million for the Community Development Financial 

Institutions (CDFI) Program. The CDFI Program uses federal resources to invest in and 
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build the capacity of CDFIs to serve low-income people and communities lacking adequate 

access to affordable financial products and services. The FY 2012 funding request will 

provide monetary awards for Financial Assistance (FA) and Technical Assistance (TA) to 

CDFIs to further goals such as:

• Economic development (job creation, business development, and commercial real 

estate development);

• Affordable housing (housing development and homeownership); and

• Community development financial services (provision of basic banking services 

to underserved communities and financial literacy training).

The CDFI Fund will also provide critical support to the Healthy Food Financing Initiative 

(HFFI), including $25 million in grant funding to CDFIs in order to expand the offering 

of affordable financing for healthy food retail options in distressed communities, and 

$250 million of New Markets Tax Credit allocation authority. 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. 

In 2012, the Departments of Agriculture, Health and Human Services, and Treasury have 

partnered to make available over $400 million in financing to community development 

financial institutions, other nonprofits, public agencies, and businesses with sound 

strategies for addressing the healthy food needs of communities. These organizations will 

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

private sector capital for an even greater investment in projects that increase access to 

fresh produce and other healthy foods. The goal is to eliminate food deserts in our nation 

over seven years.

The CDFI Fund is also requesting $12 million to continue its effort for the Native 

Initiatives Program. The objective of the Native Initiatives Program is to increase 

opportunities and to provide access to credit, capital, and financial services to Native 

CDFIs that are primarily serving Native Communities. 

The CDFI Fund requests $22.9 million in administrative funding for FY 2012. These 

administrative resources will be used to, among other things:

• Accommodate the staffing and resource demands created by the unprecedented 

growth in existing programs and new programs; 

• Address significantly increased compliance monitoring requirements; and 

• Provide research and program evaluation efforts.

The CDFI Fund requests $41.4 million for its Bank on USA initiative. The Bank on USA 

Initiative will promote access to affordable and appropriate financial services and basic 

consumer credit products for households without access to such products and services. 
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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 2010 Enacted 84 $246,750

FY 2011 Annualized CR Level 84 $246,750

Changes to Base:

Adjustment to Reach Policy Level: 6 $3,144

Adjustment to Reach FY 2011 President's Policy 6 $3,144

Maintaining Current Levels (MCLs): - $201

Maintaining Current Levels - $201

Efficiencies, Savings & Base Reductions: - ($1,830)

Office Relocation - ($1,700)

Procurement Savings - ($130)

Subtotal FY 2012 Changes to Base 6 $1,515

Total FY 2012 Base 90 $248,265

Program Changes:

Program Decreases: - ($22,706)

Community Development Financial Institutions Program - ($14,131)

Bank on USA Initiative - ($8,575)

Program Reinvestment: - $1,700

Adjustment to Support New Programs - $1,700

Subtotal FY 2012 Program Changes - ($21,006)

Total FY 2012 Request 90 $227,259

2A – Budget Increases and Decreases Description

Adjustment to Reach Policy Level.......................................+3,144,000/ +0FTE

Adjustment to Reach FY 2011 President’s Policy +3,144,000/ +0 FTE 

Adjustment to reach the FY 2011 President’s Policy Level

Maintaining Current Levels (MCLs) ..............................................+$201,000 / +0 FTE 

Maintain Current Levels +201,000 / +0 FTE

Funds are requested for inflation adjustments in non-labor expenses such as GSA rent 

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

Federal Employee Retirement System participation. No inflation adjustment is requested 

for pay in FY 2012.

Efficiencies Savings and Base Reductions......................................-$1,830,000 / -0 FTE

Procurement Savings -$130,000 / +0 FTE

Reducing non-competitive and high-risk contract actions and implementing the use of 

socio-economic programs such as 8(a) and small business set-asides can achieve 

procurement savings. Other methods to achieve savings include strategic sourcing, 

advanced acquisition planning, and GSA discount savings.

Office Relocation – 1,700,000 / -0 FTE 

This is a one-time cost in the administrative account which is associated with the CDFI 

Fund’s FY 2011 office relocation.
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Program Decreases.......................................................-$22,706,000 / -0 FTE

Community Development Financial Institutions Program - $14,131,000 / -0 FTE

The CDFI Fund will reduce the amount and number of Financial Assistance and 

Technical Assistance awards and the funding level for the capacity building initiative, 

which complements existing funding for technical assistance and capacity building 

services to CDFIs. However, the impact of the reduction in funding is mitigated by 

additional financial support to CDFIs from other Treasury programs, including the more 

than $500 million that has been made available to CDFIs under the Community 

Development Capital Initiative (CDCI) in FY 2010, and the up to $300 million that is 

authorized under Small Business Lending Fund (SBLF) in FY 2011.

Bank on USA Initiative - $8,575,000 / -0 FTE

The FY 2012 request is reduced because certain one-time fixed costs incurred in FY 2011 

will not be incurred in FY 2012 (technical assistance to local Bank on USA programs, 

research contracts, and start-up and related administrative costs).

Program Reinvestment....................................................+1,700,000 / +0 FTE

Administration Resources to Support New Programs +$1,700,000 / +0 FTE 

The CDFI Fund will redirect reinvestment of non-recurring cost from the office relocation to 

cover the additional administrative support costs resulting from the implementation of 

two high-priority initiatives—the Bank on USA Initiative and the Healthy Food 

Financing Initiative. 
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2.2 – Operating Levels Table

Dollars in Thousands

Community Development Financial Institutions Fund

FY 2010

Enacted

FY 2011

Annualized 

CR Level

Proposed 

Reprogrammings

FY 2011

Proposed 

Operating 

Level

FY 2012 

Request

FTE 84 84 - 84 90

Object Classification

11.1 - Full-time permanent $8,223 $6,965 $0 $6,965 $8,655

12 - Personnel benefits $2,060 $1,786 $0 $1,786 $2,313

21 - Travel and transportation of persons $119 $167 $0 $167 $119

22 - Transportation of things $20 $6 $0 $6 $20

23.1 - Rental payments to GSA $1,553 $1,470 $0 $1,470 $1,553

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

23.3 - Communication, utilities, and misc charges $368 $0 $0 $0 $368

24 - Printing and reproduction $20 $84 $0 $84 $20

25.1 - Advisory and assistance services $1,023 $3 $0 $3 $0

25.2 - Other services $1,035 $4,941 $0 $4,941 $4,671

25.3 - Other purchases of goods and services from 

Govt. accounts $867 $2,481 $0 $2,481 $3,334

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

26 - Supplies and materials $111 $70 $0 $70 $111

31 - Equipment $111 $27 $0 $27 $111

33 - Investments and loans $800 $0 $0 $0 $0

41 - Grants, subsidies, and contributions $228,750 $228,750 $0 $228,750 $204,294

Total Budget Authority $246,750 $246,750 $0 $246,750 $227,259

Budget Activities

Community Development Financial Institutions Program $107,600 $107,600 $0 $107,600 $125,869

Bank Enterprise Award Program $25,000 $25,000 $0 $25,000 $0

Native Initiatives $12,000 $12,000 $0 $12,000 $12,000

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

Administration $18,000 $18,000 $0 $18,000 $22,965

Financial Education and Counseling $1,000 $1,000 $0 $1,000 $0

Hawaii Financial Ed and Counseling $3,150 $3,150 $0 $3,150 $0

Bank on USA Initiative $0 $0 $0 $0 $41,425

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

Total Budget Authority $246,750 $246,750 $0 $246,750 $227,259
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2.3 – Appropriations Detail

(Dollars in Thousands)

FY 2012

Budget 

Request

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Community Development Financial 

Institutions Program $102,987 $107,600 $107,600 $125,869

Bank Enterprise Award $24,715 $25,000 $25,000 $0

Native Initiatives $10,909 $12,000 $12,000 $12,000

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

Administration 1, 2 84 $17,535 84 $18,000 84 $18,000 90 $22,965

Financial Education and Counseling 

Pilot Program $0 $1,000 $1,000 $0

Financial Education and Counseling 

Pilot Program (Hawaii) $0 $3,150 $3,150 $0

Bank on USA Initiative $0 $0 $0 $41,425

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

Subtotal New Appropriated Resource 84 $156,146 84 $246,750 84 $246,750 90 $227,259

Other Resources:

Recoveries 154 154 194 194

Unobligated Balance 104,111 8,591 24,000 14,000

Offsetting Collections - Reimbursables 1,000 1,000 1,160 1,160

Available multi-year/no-year funds 3,976 2,587 3,976 400

Subtotal Other Resources 0 $109,241 0 $12,332 0 $29,330 0 $15,754

Total Resources Available for Obligatio 84 $265,387 84 $259,082 84 $276,080 90 $243,013 1

/ NMTC Program Administration is included in the Administration budget activity for the FY 2012 Budget request.

FY 2011

FY 2010 

Obligations

Annualized CR 

Level Resources Available for Obligation FY 2010 Enacted

2

/ In addition, $13.5 million is available for administration of the Bond Guarantee Program provided in PL 111-240
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2B – Appropriations Language and 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, 

227,259,000, to remain available until September 30, 2013; of 

which $12,000,000 shall be for financial assistance, technical 

assistance, training and outreach programs, under sections 105 

through 109 of the Community Development Banking and Financial 

Institutions Act of 1994 (12 U.S.C. 4704-4708), designed to benefit 

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 $25,000,000 shall 

be for a Healthy Food Financing Initiative to provide grants and 

loans 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 $41,425,000 shall be for initiatives to 

establish bank accounts for low and moderate-income persons who 

do not have bank accounts with financial institutions and to improve 

access to the provision of bank accounts as authorized by section 

1204 of Public Law 111-203; of which up to $22,965,000 may be 

used for administrative expenses, including administration of the 

New Markets Tax Credit; of which up to $10,315,000 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 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.

Restores waiving the 

match for HFFI

2C - Legislative Proposals

The CDFI Fund does not recommend any legislative changes for FY 2012.
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Section 3 – Budget and Performance Plan 

This table lists all FY 2012 resources by strategic goal, objective and outcome outlined in 

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

provides a description of what the agency intends to accomplish over the next five years.

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treasury.gov/about/budget-performance/strategic-plan/Pages/index.aspx

3.1 – Budget by Strategic Outcome

(Dollars in Thousands)

Treasury Strategic Outcome FY 2010 

Enacted

FY 2011 

Annualized 

CR Level

FY 2012 

Request

% Change

FY10 to FY12

 Strong U.S. economic competitiveness 246,750 246,750 227,259 -7.89%

Total $246,750 $246,750 $227,259 -7.89%

3A – Community Development Financial Institutions Program ($125,869,000 from 

direct appropriations): Through the CDFI Program, the CDFI Fund makes Financial 

Assistance (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 capital, and Technical Assistance (TA) grants to CDFIs and entities 

proposing to become CDFIs in order to build their capacity to advance community 

development and meet capital access needs in their target markets. 

3.2.1 – CDFI Program Budget and Performance Plan

(Dollars in Thousands)

Community Development Financial Institutions Program Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $50,941 $149,750 $107,600 $107,600 $125,869

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

Total Resources $50,941 $149,750 $107,600 $107,600 $125,869

Budget Activity Total $50,941 $149,750 $107,600 $107,600 $125,869

Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

ALL - Award Cycle Time N/A N/A B 7.5 7.5

ALL - Disbursement Cycle Time N/A N/A B 2.0 2.0

ALL - Jobs Created/Maintained N/A N/A B 51,312 48,991

CDFI - Amount of Loans/Investments Originated (Annual) N/A N/A N/A B B

CDFI - Number of Loans/Investments Originated (Annual) N/A N/A N/A B B

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

DISC - Discontinued, and B - Baseline
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Description of Performance: In FY 2010, CDFIs reported leveraging private investment 

in the prior year of over $1.9 billion (based on reporting from program year 2009 results), 

more than triple the target of $600 million; this success was largely due to increased 

CDFI Program funding which was met by private sector commitments despite the effects 

of the financial crisis. In FY 2011, the leveraged private investment measure is being 

replaced by two new measures on the number and amount of loans originated by CDFI 

awardees. These two new measures will be baselined in FY 2011. In addition, in 

FY 2011 the FTE job creation/maintenance measures and the two administrative cycle 

time measures will be consolidated into CDFI Fund-wide measures reflecting the 

outcomes of all programs.

3B – New Markets Tax Credit Program: Through the NMTC Program, the CDFI 

Fund spurs the investment of new private sector capital into low-income areas through 

Community Development Entities (CDEs), which in turn use the privately managed 

investment vehicles to make loans and equity investments in businesses and real estate 

projects in low-income communities. By making an equity investment in CDEs, 

individual and corporate investors can receive a tax credit against their federal income 

taxes worth 39 percent of the value of the amount invested in the CDE over seven years.

3.2.2 – New Markets Tax Credit Program Budget and Performance Plan

(Dollars in Thousands) 

New Markets Tax Credit Program Administration* Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

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

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

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

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

Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

ALL - Award Cycle Time N/A N/A B 7.5 7.5

ALL - Disbursement Cycle Time N/A N/A B 2.0 2.0

ALL - Jobs Created/Maintained N/A N/A B 51,312 48,991

Community Development Entities' Annual 

Investments In Low-Income Communities ($ 

billions) (Oe)

3.3 3.6 3.1 3.0 3.0

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

DISC - Discontinued, and B – Baseline

* NMTC Program Administration is included in the Administration budget activity for the FY 2012 Budget request.

Description of Performance: In FY 2010, the NMTC Program competitively awarded 

$5 billion in NMTC allocation authority to CDEs, including $1.5 billion in Recovery Act 
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authority, providing tax credit allocation authority to CDEs for targeted investments in 

low-income communities. As reported in FY 2010 (based on reporting from program 

year 2009 results), cumulative investments in low-income communities by CDEs rose to 

$15.8 billion (exceeding the performance target) and amounted to an annual increase of 

$3.1 billion over the prior year (exceeding the annual target by $600 million). In 

FY 2011 the FTE job creation/maintenance measures and the two administrative cycle 

time measures will be consolidated into CDFI Fund-wide measures reflecting the

outcomes of all programs.

3C – 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 financial assistance to CDFIs. 

The CDFI Fund does not propose to fund the BEA Program in FY 2012.

3.2.3 – Bank Enterprise Award Program Budget and Performance Plan

(Dollars in Thousands) 

Bank Enterprise Award Program Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $19,924 $22,000 $25,000 $25,000 $0

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

Total Resources $19,924 $22,000 $25,000 $25,000 $0

Budget Activity Total $19,924 $22,000 $25,000 $25,000 $0

Description of Performance: In FY 2010, the CDFI Fund received 76 applications 

requesting a total of $94 million compared to 58 applications requesting approximately 

$57 million in FY 2009. The CDFI Fund selected 69 FDIC-insured institutions to receive 

approximately $25 million in awards. FY 2010 applicants were headquartered in 

20 states and the District of Columbia. In the FY 2010 funding round (based on the 2009 

Assessment Period), awardees provided $373.9 million in qualified loans or investments 

in distressed communities, $53.9 million in qualified loans, deposits and technical 

assistance to CDFIs, and $233.3 million in qualified financial services in distressed 

communities. The CDFI Fund does not propose to fund the BEA in FY 2012.

3D – Native Initiatives: ($12,000,000 from direct appropriations): Through the Native 

Initiatives, 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 Native Initiatives’ central program is the Native American 

CDFI Assistance Program (NACA Program), through which the CDFI Fund makes 

monetary awards to increase the number and capacity of existing or new CDFIs serving 
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Native Communities. In addition, the Native Initiatives provide training to help 

strengthen and develop Native CDFIs. 

3.2.4 – Native Initiatives Budget and Performance Plan

(Dollars in Thousands) 

Native Initiatives Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $7,979 $16,500 $12,000 $12,000 $12,000

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

Total Resources $7,979 $16,500 $12,000 $12,000 $12,000

Budget Activity Total $7,979 $16,500 $12,000 $12,000 $12,000

Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

ALL - Award Cycle Time N/A N/A B 7.5 7.5

ALL - Disbursement Cycle Time N/A N/A B 2.0 2.0

ALL - Jobs Created/Maintained N/A N/A B 51,312 48,991

NACA - Amount of Loans/Investments Originated 

(Annual)

N/A N/A N/A B B

NACA - Number of Loans/Investments Originated 

(Annual)

N/A N/A N/A B B

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

DISC - Discontinued, and B - Baseline

Description of Performance: In FY 2010, the NACA Program received 61 applications 

requesting a total of $23.7 million. The CDFI Fund awarded 45 organizations a total of 

$10.3 million for both FA and TA funding in FY 2010. In FY 2010, the Native Initiatives 

registered a 26 percent increase in the total assets of Native CDFIs. In FY 2011, the total 

assets measure is being replaced by two new measures on the number and amount of 

loans originated by NACA Program awardees. These two new measures will be baselined 

in FY 2011. In addition, in FY 2011 the FTE job creation/maintenance measures and the 

two administrative cycle time measures will be consolidated into CDFI Fund-wide 

measures reflecting the outcomes of all programs.

3E – Capital Magnet Fund ($0 from direct appropriations): Through the CMF the 

CDFI Fund increases capital investment for the development, preservation, rehabilitation, 

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

families, and related economic development activities. As initially conceived, the CMF 

was to be capitalized through proceeds from Fannie Mae and Freddie Mac. The CDFI 

Fund does not propose to fund the CMF in FY 2012.
CDFI-15

3.2.5 – Capital Magnet Fund Budget and Performance Plan

(Dollars in Thousands)

Capital Magnet Fund Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

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

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

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

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

Description of Performance: In its inaugural FY 2010 Capital Magnet Fund (CMF) 

funding round, the CDFI Fund announced $80 million in competitively awarded grants to 

23 CDFIs and qualified nonprofit housing organizations serving 38 states. The CDFI 

Fund received a total of 230 applications for the FY 2010 CMF funding round. In 

FY 2011, the CDFI Fund will baseline awardees' performance reporting. Awardees will 

be required to report annually: number of affordable housing units developed or 

produced; number/percentage of low-income renters/owners; number/percentage of very 

low-income renters/owners; number of jobs produced; leverage ratio; and deployment 

rate. In addition, in FY 2011 the FTE job creation/maintenance measures and the two 

administrative cycle time measures will be consolidated into CDFI Fund-wide measures 

reflecting the outcomes of all programs.

3F – Administration ($22,965,000 from direct appropriations): This budget activity 

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

its award programs. This includes, among other activities: developing regulations, Notice 

of Funds 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. 

During FY 2011, the CDFI Fund will incur one-time cost in the administrative account, 

which is associated with the CDFI Fund’s FY 2011 office relocation. The CDFI Fund 

will redirect the non-recurring savings from the office relocation to cover the additional 

administrative support costs resulting from the implementation of two high-priority 

initiatives—the Bank on USA Initiative and the Healthy Food Financing Initiative. 

In FY 2012, the CDFI Fund will continue to enhance compliance monitoring of all 

awardees. The CDFI Fund has developed IT systems that allow awardees to report 

information to the CDFI Fund through on-line reporting tools, as well as IT systems that 

compare the report submissions to the awardees’ assistance agreements to flag any 

incidences of non-compliance. CDFI Fund staff engages in compliance desk reviews and 

site visits to monitor further the activities and record keeping of CDFIs and CDEs. 
CDFI-16

Since the CDFI Fund’s inception in 1994, its business processes and types of programs 

have evolved and undergone substantial changes and modifications. However, the 

corresponding changes in the IT systems and applications used to manage the awards

process have not been made based on a unified architecture and/or a common technology 

platform. Instead, the IT system has been subjected to recurrent modifications with

varying business requirements, often resulting in stove-piped designs. The management 

information system is being replaced with a more efficient, reliable, scalable, and cost 

effective system that fully integrates all phases of the information system lifecycle.

3.2.6 – Administration Budget and Performance Plan

(Dollars in Thousands)

Administration Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $9,492 $11,883 $18,000 $18,000 $22,965

 Reimbursable Resources $0 $0 $0 $260 $0

Total Resources $9,492 $11,883 $18,000 $18,260 $22,965

Budget Activity Total $9,492 $11,883 $18,000 $18,260 $22,965

Description of Performance: The CDFI Fund has made significant progress enhancing 

program administrative business processes, enabling quicker award disbursements. New 

administrative productivity measures were implemented beginning in FY 2010. These 

measures replace the old administrative efficiency measure, which was intrinsically 

difficult to compute because it required allocating a share of organizational overhead to 

each program. The new program-level 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 new administrative measures were initially deployed for each of the CDFI Fund’s 

programs. These measures were first tested through the deployment of the CDFI Fund’s 

Recovery Act funding rounds. In FY 2009, two months after Recovery Act grant awards 

were announced, the CDFI Fund disbursed all $98 million to 59 CDFIs and 10 Native 

CDFIs. In addition, the CDFI Fund entered into allocation agreements with CDEs for 

$1.5 billion in Recovery Act NMTC authority within 60 days of award announcement. 

In FY 2010, these two program efficiency measures (application-award and awarddisbursement cycle times) were analyzed across all programs to formulate a composite, 

CDFI-Fund-wide efficiency measure based on the weighted average of the number of 

awards per program.

In FY 2011, these two administrative efficiency measures will be baselined for 

performance reporting in FY 2012. In addition, a performance indicator was formulated 

for tracking the cycle time from the date when Notice of Funding Availability (NOFA) is 
CDFI-17

posted to the date when applications are received (in months). Cycle time is calculated as 

a weighted average across all CDFI Fund programs, weighted by the number of 

applications per program in each round. In conjunction with the two cycle time 

performance measures, this new indicator will allow the CDFI Fund to monitor and 

adjust the NOFA-application cycle time to accommodate the deployment of additional 

program application rounds; thus, this indicator is intrinsically meant to be a management 

tool to gauge overall program deployment cycle time, rather than as a performance 

measure.

3G – Healthy Food Financing Initiative ($25,000,000 from direct appropriations): 

Through the HFFI, the CDFI Fund will make CDFI Program awards and NMTC 

allocation authority to CDFIs and CDEs that will finance healthy food alternatives in 

food deserts and low-income neighborhoods.

3.2.7 – Healthy Food Financing Initiative Budget and Performance Plan

(Dollars in Thousands)

Healthy Food Financing Initiative Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

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

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

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

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

Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

HFFI - Retail Outlets Created/Preserved N/A N/A N/A B B

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

DISC - Discontinued, and B - Baseline

Description of Performance: Proposed HFFI performance metrics include square footage 

of new retail food outlets created; jobs created at food outlets; and the total number of 

healthy food retail outlets financed. Performance measures will be implemented in 

FY 2011, with reporting slated to begin in FY 2012.

3H – Bank on USA Initiative ($41,425,000 from direct appropriations): Through the 

Bank on USA Initiative, the CDFI Fund will work in partnership with Treasury’s Office 

of Financial Education and Financial Access to promote access to and innovations in 
CDFI-18

affordable and appropriate financial services, basic consumer credit products and 

financial education for households without access to such products and services. 

3.2.8 - Bank on USA Initiative Budget and Performance Plan

(Dollars in Thousands)

Bank on USA Initiative Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $0 $0 $0 $0 $41,425

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

Total Resources $0 $0 $0 $0 $41,425

Budget Activity Total $0 $0 $0 $0 $41,425

Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

Bank on - Number of Accounts Opened N/A N/A N/A B B

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

DISC - Discontinued, and B - Baseline

Description of Performance: The Bank on USA Initiative will measure performance 

based on the number of new accounts opened. This measures whether institutions are 

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

products and services. This measure will be baselined in FY 2011. Additional 

performance indicators will be collected by the CDFI Fund from Bank on awardees to 

more accurately evaluate awardee performance and overall program effectiveness.

3J – Financial Education and Counseling Pilot Program ($0 from direct 

appropriations): Through the FEC Pilot Program, the CDFI Fund makes grants to 

eligible organizations to provide a range of financial education and counseling services to 

prospective homebuyers. The CDFI Fund does not propose to fund the FEC Pilot 

Program in FY 2012.
CDFI-19

3.2.9 – Financial Education and Counseling Pilot Program Budget and Performance 

Plan

(Dollars in Thousands)

Financial Education and Counseling Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $0 $2,000 $1,000 $1,000 $0

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

Total Resources $0 $2,000 $1,000 $1,000 $0

Budget Activity Total $0 $2,000 $1,000 $1,000 $0

3K – Financial Education and Counseling Pilot Program (Hawaii) ($0 from direct 

appropriations): Through the FEC Pilot Program (Hawaii), the CDFI Fund makes grants 

to eligible organizations to provide a range of financial education and counseling services 

to prospective homebuyers in the State of Hawaii. The CDFI Fund does not propose to 

fund the FEC Pilot Program (Hawaii) in FY 2012.

3.2.10 – Financial Education and Counseling Pilot Program (Hawaii) Budget and 

Performance Plan

(Dollars in Thousands)

Hawaii Financial Ed and Counseling Budget Activity

Resource Level FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Obligated Obligated Enacted Annualized CR 

Level

Request

 Appropriated Resources $0 $0 $3,150 $3,150 $0

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

Total Resources $0 $0 $3,150 $3,150 $0

Budget Activity Total $0 $0 $3,150 $3,150 $0

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/
CDFI-20

Section 4 – Supporting Materials

4A-- Human Capital Strategy

The CDFI Fund’s Human Capital strategy is designed to further the CDFI Fund’s mission 

and operations by developing a Five-Year Human Capital Plan, identifying 

organizational effectiveness, improving employee training and development, enhancing 

the CDFI Fund’s recruitment and diversity strategies, and improving employee retention 

and satisfaction. 

Five-Year Human Capital Plan: Currently, the CDFI Fund is developing a five-year 

strategic plan that aligns with the growing needs of the CDFI community. 

As part of the strategic planning process, the CDFI is outlining a five-year human capital 

plan to coincide with the five-year strategic plan. The human capital plan will serve as a 

roadmap to ensure that the CDFI Fund is able to close employee skill gaps that have been 

identified. Areas of focus will be within the compliance and research divisions, which 

will be heavily relied on to monitor compliance and track performance of awardees. The 

human capital plan will also identify ways to address attrition, as it is critical to the 

success of the CDFI Fund to have a plan of action to recruit and retain high performers.

Organizational Effectiveness: From FY 2008 through FY 2010, the CDFI Fund 

underwent an evaluation of the efficiency and effectiveness of its operations. This 

involved extensive internal assessments of every business unit to determine what was 

working well, what areas needed improvement and where the organization was 

duplicating services and/or costs. Managers and staff served an active role by working 

with contractors to capture pertinent business processes and by evaluating standard 

operating procedures. 

Training & Development: To ensure mission success into the future, the CDFI Fund 

needs a talented group of employees and leaders able to produce results and able to 

inspire, motivate, and guide others to produce. 

During the second quarter of FY 2010, the CDFI Fund launched the CDFI Fund 

Academy, training, development and succession-planning tool designed to ensure that the 

CDFI Fund staff have the skills they need to achieve mission success. The CDFI Fund 

Academy prepares staff to take on more challenging and broader roles, as well as more

responsibilities, within their area of technical responsibility; provides opportunities to 

understand customer and industry issues; enhances staff understanding, effectiveness and 

mobility across programs and business units; and creates a culture of current and future

leaders who value people and focus on achieving valuable results that matter to the 

communities we serve. Through the CDFI Fund Academy, each employee has access to a 

coach to assist with career and/or personal development. 

Recruitment and Diversity: During FY 2009 and FY 2010, the CDFI Fund has 

aggressively staffed vacant positions using its established recruitment strategies. The 

CDFI Fund is dedicated to recruiting a diverse pool of applicants to reflect its diverse 
CDFI-21

constituents. During FY 2011 and FY 2012, the CDFI Fund will continue the Director’s 

outreach initiative to organizations such as the Hispanic National Internship Program, the 

Washington Internships for Native American Students, Historical Black Colleges and 

Universities, and to organizations that represent persons with disabilities. Given the 

current economic challenges in the CDFI community, the CDFI Fund will also target 

individuals from the community and economic development finance industries. This will 

help bring years of specialized experience to enhance the CDFI Fund’s mission. 

Employee Retention and Satisfaction: In FY 2012, the CDFI Fund will continue 

surveying its employees to measure employment satisfaction and identify opportunities 

for improvement. The Director will continue regular informal outreach meetings 

(including “Brown Bag” lunches) with line staff in order to stay connected to their needs 

and concerns. The meetings help employees to understand policy, program decisions, 

and provide an opportunity to share ideas with the Director. In FY 2010, the CDFI Fund 

developed a group of Change Champions; these business unit liaisons serve as change 

communicators between management and staff. The Change Champions will continue 

into FY 2012 to assist with future changes to programs and operations. In order to 

promote a fully engaged workforce, senior management will ensure that employee ideas 

and recommendations are captured early through meetings, working groups, policy 

discussions, and other methods. 

Through the Employee Recognition and Award Program, managers and staff 

acknowledge employee contributions over and above what is expected with “Quality” 

performance. The award program is designed to establish continual improvement of the 

CDFI Fund’s programs and operations through motivation and reward of employees. 

Awards include Special Act Awards, On-the-Spot Awards, Time off Awards, and nonmonetary awards (such as certificates and tours of historical landmarks in the 

Washington, D.C. area). 
CDFI-22

4.1 - Summary of IT Resources Table

(Dollars in Thousands)

Budget Activity

FY 2009

Enacted

FY 2010

Enacted

FY 2012 

Request

None $0 $0 0.0% $0 $0 0.0%

Subtotal, Major IT Investments $0 $0 0.0% $0 $0 0.0%

CDFI Non-Major Investments

CIIS is a web-based data collection 

system that CDFIs and CDEs use to 

submit their Institution-Level Reports 

and Transaction-Level Reports to the 

Fund. CDFI LAN supports email, 

grants processing and all business 

areas within the Fund. CDFI Fund 

Website C $427 $450 5.3% $450 $2,222 367.8%

Non-Major IT Investments $427 $450 5.3% $450 $2,222 367.8%

CDFI Infrastructure (End User)

The CDFI Fund's annual office 

automation budget to support the 

Grants Management system. $2,179 $2,584 118.6% $2,584 $1,450 -52.5%

CDFI Infrastructure (Mainframes and Servers)

CDFI Fund infrastructure costs for 

hardware and system administration 

services for Grant processing 

requirements. $0 $80 100.0% $80 $440 340.0%

CDFI Infrastructure (Telecommunications)

Telecommunications and web hosting 

services for the CDFI Fund including 

web hosting services from TTB. $335 $355 5.9% $355 $310 -26.0%

Infrastructure Investments $2,514 $3,019 20.1% $3,019 $2,200 -39.7%

None

Enterprise Architecture

Total IT Investments $2,941 $3,469 18.0% $3,469 $4,422 7.2%

Major IT Investments / Funding Source

% Change 

from FY 2010 

to FY 2012

FY 2011 

Annualized 

CR Level

% Change 

from FY 2009 

to FY 2010
CDFI-23

4B – Information Technology Strategy

The CDFI Fund does not have any Major IT investments, as the term is defined by 

Treasury guidelines for defining Major IT investments. As such, the CDFI Fund is not 

required to submit an OMB 300, and instead submits Exhibit 53 for No Major IT 

investments. However, the CDFI Fund’s Chief Operations Officer (COO) ensures that all 

decision-making is integrated into the organization’s planning, operations, and budgeting 

processes. The Supervisory IT Specialist assists the COO in ensuring that existing 

processes and structures supporting IT investments are tied to the strategic plan, support 

the mission, and remain within the approved budget. 

The IT unit is responsible for ensuring that the CDFI Fund’s IT strategic goals conform 

to legislative requirements, the goals of Treasury and the Administration, the Federal 

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

Technology Infrastructure Line of Business (ITILoB). This information, as well as 

budget and project management information for the Capital Planning and Investment 

Control process is coordinated with Treasury’s Office of the Chief Information Officer as 

part of the Department’s IT management process. 

The FY 2012 budget request includes the costs associated with new investments that will 

allow the CDFI Fund to better support its award programs. The CDFI Fund must create a 

more stable IT infrastructure to improve operational efficiency, research capabilities, and 

to enhance compliance monitoring for all awards. The CDFI Fund also proposes to form 

a new formal IT Governance/Compliance framework that will monitor measurable 

objectives and the overall performance of IT resources and to implement a Grants 

Management Information System Modernization Plan.

The CDFI Fund has analyzed its business processes and is developing a single, 

comprehensive, enterprise-wide to-be target architecture for its grant’s management 

system that optimizes business processes by streamlining and eliminating unnecessary 

redundancies, removing stove-piped and program-specific procedures, and leveraging 

automation and technology. The benefits associated with this transition are enterprisewide and will result in a more efficient, flexible, and scalable organization that can 

handle the larger volume of awards that are managed by the CDFI Fund. This 

modernization initiative will enable the CDFI Fund to provide more transparency, better 

data quality, and improve governance within the organization, all resulting in a better 

value to customers.
CDFI-24

4C – Place-Based Policies and Programs

Summary of CDFI Fund Programs: The following programs have requested funding 

and/or authorization in the FY 2012 budget request:

CDFI Program: Provides Financial Assistance awards to institutions that are certified as 

CDFIs, which in turn provide loans, investments, financial services (including financial 

education) and technical assistance to underserved populations and low-income 

communities; and Technical Assistance grants to certified CDFIs and entities that will 

become certified as CDFIs within three years. 

Native Initiatives: Provides Financial Assistance awards, Technical Assistance grants, 

and training to Native CDFIs and other Native entities proposing to become or create 

Native CDFIs.

NMTC Program: Provides tax allocation authority to certified CDEs, enabling investors 

to claim tax credits against their Federal income taxes; the CDEs, in turn, use the capital 

raised to make investments in low-income communities.

Bank on USA Initiative: Provides competitive grants to a variety of entities, including 

financial service providers, community-based organizations and governmental entities, 

for use in promoting access to and innovations in affordable and appropriate financial 

services, basic consumer credit products and financial education unbanked and underbanked households. 

Healthy Foods Financing Initiative: Through the HFFI, the CDFI Fund will make CDFI 

Program awards and NMTC allocation authority to CDFIs and CDEs, respectively, for 

the purpose of financing projects that will increase the availability of healthy food 

alternatives in food deserts and other areas that currently lack access to healthy and 

nutritious food options.

Applicability of Place-Based Policies and Programs: The CDFI Fund programs do not 

fit neatly into the concept of “place-based” initiatives. Each of these programs, to a 

varying degree, could be considered “place-based” given their goals of improving 

communities and promoting economic growth. However, the programs are not focused 

on specific geographic areas. Some program awardees may be serving a local area, but 

many have a nationwide footprint and/or focus on delivering services to low-income 

individuals, without a dedicated focus to a particular community. Furthermore, requiring 

CDFIs to limit their investments to certain geographies may impact their ability to serve 

low-income persons, diversify their loan pool, mitigate risks, and achieve financial 

sustainability. Similarly, by limiting NMTC investments to more narrowly defined 

geographical areas, CDEs may be challenged to achieve balanced portfolios and 

acceptable financial returns that meet both the financial goals of investors and the social 

goals of the program.