Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 92283 

III. Transition to the Industry-Based 

Verification Program 

While today NHTSA is announcing 

that it will discontinue the Traffic 

Enforcement Technologies Program and 

no longer maintain a CPL, it will 

maintain the CPL for one year after the 

date of publication of this notice to 

permit manufacturers with devices on 

the current CPL time to enter devices 

into the industry-based verification 

program. Accordingly, as of November 

21, 2025 NHTSA will retire the CPL that 

it maintained through the Interim 

Administrative Guide for the Traffic 

Enforcement Technologies Program. 

Manufacturers that prefer a verification 

of DTR radar devices they produce may 

engage the industry-based verification 

program developed by NIST. 

IV. Industry-Based Verification 

Program 

Manufacturers of DTR Radar devices 

may, at their expense, obtain product 

verification through third-party 

verification programs conducted by 

entities that are accredited pursuant to 

the International Organization for 

Standardization/International 

Electrotechnical Commission (ISO/IEC) 

Standard 17065 (see https://

www.iso.org/obp/ui/#iso:std:isoiec:17065:ed-1:v1:en to learn more about 

becoming an accredited verification 

entity). Accredited verification entities 

must perform the required testing in 

conformance with the standard 

developed by the Institute of Electrical 

and Electronics Engineers (IEEE) and is 

listed as the 2450–2019—IEEE Standard 

for the Performance of Down-the-Road 

Radar Used in Traffic Speed 

Measurements, published November 5, 

2019 (see https://standards.ieee.org/ 

ieee/2450/6920/). A list of entities that 

are accredited verification entities to 

IEEE Standard 2450–2019 is located 

here https://www.nist.gov/mml/mmsd/ 

security-technologies-group/down-roaddtr-radar. The IEEE standard is the 

baseline for verification requirements 

and associated test procedures for 

down-the-road (DTR) traffic radar 

speed-measuring devices. A DTR radar 

device that is found to meet the IEEE 

standard will be added to a verified 

product listing, that is a list of product 

models that have demonstrated 

compliance to applicable performance 

requirements and specifications. 

Unmanned radar speed-measuring 

devices, automated speed enforcement, 

or DTR radar range measurements are 

not covered in this standard. 

The industry-based verification 

program includes initial and 

surveillance performance requirements 

and the use of the Verification Mark to 

be placed on all verified units. The 

testing entity will provide 

documentation to the manufacturer that 

its product meets the IEEE standard. 

The industry-based Verification 

Program will maintain a verified 

product list on its website for products 

that meet the performance 

specifications. More information about 

the Down-the-Road Radar Devices 

verification program, including 

information related to entities that are 

accredited to IEEE Standard 2450–2019, 

is located here: https://www.nist.gov/ 

mml/mmsd/security-technologiesgroup/down-road-dtr-radar. 

Authority: 23 U.S.C. 403; 49 CFR 1.95; 

49 CFR 501.8. 

Nanda Narayanan Srinivasan, 

Associate Administrator, Research and 

Program Development. 

[FR Doc. 2024–27130 Filed 11–20–24; 8:45 am] 

BILLING CODE 4910–59–P 

DEPARTMENT OF THE TREASURY 

Community Development Financial 

Institutions Fund 

Funding Opportunity Title: Notice of 

Allocation Availability (NOAA) Inviting 

Applications for the Calendar Years 

(CY) 2024–2025 Allocation Round of the 

New Markets Tax Credit (NMTC) 

Program 

Announcement Type: Announcement 

of NMTC Allocation availability. 

DATES: 

TABLE 1—CY 2024–2025 ALLOCATION ROUND NMTC PROGRAM CRITICAL DEADLINES FOR APPLICANTS

Description Deadline/date 

Time 

(eastern 

time—ET) 

Submission method 

Request to modify CDE certification service area ........................................ December 3, 2024 ........ 11:59 p.m ...... Electronically via AMIS. 

Subsidiary CDE Certification Application for meeting Qualified Equity Investment (QEI) issuance thresholds.December 3, 2024 ........ 11:59 p.m ...... Electronically via AMIS. 

CY 2024–2025 Allocation Application Registration ...................................... December 5, 2024 ........ 5:00 p.m ........ Electronically via AMIS. 

Amendment request to add Subsidiary CDEs to Allocation Agreements for 

meeting QEI issuance thresholds.

January 17, 2025 .......... 11:59 p.m ...... Electronically via AMIS. 

Amendment request to remove a Controlling Entity from Allocation Agreement(s).January 17, 2025 .......... 11:59 p.m ...... Electronically via AMIS. 

Last date to contact CDFI Fund staff ........................................................... January 27, 2025 .......... 5:00 p.m ........ Electronically via AMIS. 

CY 2024–2025 Allocation Application (including required Attachments) ..... January 29, 2025 .......... 5:00 p.m ........ Electronically via AMIS. 

QEI Issuance and making Qualified Low Income Community Investments 

(QLICIs) by.

April 17, 2025 ............... 11:59 p.m ...... Not Applicable. 

Report QEIs and certify QLICIs by ............................................................... April 24, 2025 ............... 11:59 p.m ...... Electronically via AMIS. 

Executive Summary: This NOAA is 

issued in connection with the CY 2024– 

2025 allocation round (Allocation 

Round) of the New Markets Tax Credit 

Program (NMTC Program), as authorized 

by Title I, subtitle C, section 121 of the 

Community Renewal Tax Relief Act of 

2000 (Pub. L. 106–554) as amended. 

Through the NMTC Program, the 

Community Development Financial 

Institutions Fund (CDFI Fund) provides 

authority to certified CDEs to offer an 

incentive to investors in the form of tax 

credits over seven years, which is 

expected to stimulate the provision of 

private investment capital that, in turn, 

will facilitate economic and community 

development in Low-Income 

Communities. Through this NOAA, the 

CDFI Fund announces the availability of 

$10 billion of NMTC Allocation 

authority in this Allocation Round. 

In this NOAA, the CDFI Fund 

specifically addresses how a CDE may 

apply to receive an allocation of 

NMTCs, the competitive procedure 

through which NMTC Allocations will 

be made, and the actions that will be 

taken to ensure that proper allocations 

are made to appropriate entities. 


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I. Allocation Availability Description 

A. Programmatic changes from the CY 

2023 allocation round: 

1. Allocation Application Updates: 

The NMTC Allocation Application has 

been revised as part of its renewal under 

the Paperwork Reduction Act. The 

Allocation Application will be 

evaluated as described in Section V of 

this NOAA. 

2. Prior QEI Issuance Requirements: 

Prior-year NMTC Allocatees will be 

subject to minimum thresholds for QEI 

issuance and closing of QLICIs with 

respect to their prior-year NMTC 

Allocations. These thresholds and 

deadlines have been revised in 

comparison to the CY 2023 NOAA. See 

Section III. A.5(a) of this NOAA for 

additional details. 

3. CDE Certification: The CDFI Fund 

will only consider an Applicant as 

eligible for an NMTC Allocation in this 

Allocation Round if the Applicant is 

certified as a CDE as of the publication 

date of this NOAA in the Federal 

Register. 

II. Allocation Information 

A. Allocation amounts: Pursuant to 

the Taxpayer Certainty and Disaster Tax 

Relief Act of 2020, the CDFI Fund 

expects that it may allocate to CDEs the 

authority to issue to their investors the 

aggregate amount of $10 billion in 

equity as to which NMTCs may be 

claimed, as permitted under IRC 

§ 45D(f)(1)(D). Pursuant to this NOAA, 

the CDFI Fund anticipates that it may 

issue up to $120 million in tax credit 

investment authority per Allocatee. The 

CDFI Fund, in its sole discretion, 

reserves the right to allocate amounts in 

excess of or less than the anticipated 

maximum allocation amount should the 

CDFI Fund deem it appropriate. The 

CDFI Fund reserves the right to allocate 

NMTC authority to any, all, or none of 

the entities that submit Applications in 

response to this NOAA, and in any 

amounts it deems appropriate. 

B. Type of award: NMTC Program 

awards are made in the form of 

allocations of tax credit investment 

authority. 

C. Program guidance and regulations: 

This NOAA describes Application and 

NMTC Allocation requirements for the 

CY 2024–2025 Allocation Round of the 

NMTC Program and should be read in 

conjunction with: (i) the final NMTC 

Program Income Tax Regulations issued 

by the Internal Revenue Service (IRS) 

(26 CFR 1.45D–1, published on 

December 28, 2004), as amended and 

related guidance, notices and other 

publications (collectively referred to as 

the ‘‘IRS NMTC Regulations’’ in this 

NOAA); and (ii) the Application and 

related materials for this Allocation 

Round. All such materials may be found 

on the CDFI Fund’s website at https:// 

www.cdfifund.gov. The CDFI Fund 

requires Applicants to review these 

documents. Capitalized terms used, but 

not defined, in this NOAA have the 

respective meanings assigned to them in 

the NMTC Program Allocation 

Application, Internal Revenue Code 

(IRC) § 45D or the IRS NMTC 

regulations. In the event of any 

inconsistency between this NOAA, the 

CY 2024–2025 Allocation Application 

(Application), and guidance issued by 

the CDFI Fund thereto, and IRC § 45D or 

the IRS NMTC Regulations, the 

provisions of IRC § 45D and the IRS 

NMTC Regulations shall govern. 

D. Allocation Agreement: Each 

Allocatee must sign an Allocation 

Agreement, which must be 

countersigned by the CDFI Fund, before 

the NMTC Allocation is effective. The 

Allocation Agreement contains the 

terms and conditions of the NMTC 

Allocation. For further information, see 

Section VI.B of this NOAA. 

E. Statutory and national policy 

requirements: The CDFI Fund will 

manage and administer the NMTC 

Program in a manner so as to ensure that 

NMTC Allocations associated programs 

are implemented in full accordance 

with the U.S. Constitution, Federal law, 

statutory, and public policy 

requirements: including, but not limited 

to, those protecting free speech; 

religious liberty; public welfare; the 

environment; and prohibiting 

discrimination. 

III. Eligibility 

A. Eligible Applicants: IRC § 45D 

specifies certain eligibility requirements 

that each Applicant must meet to be 

eligible to apply for an allocation of 

NMTCs. The following sets forth 

additional detail and certain additional 

dates that relate to the submission of 

Applications under this NOAA for the 

available NMTC Allocation authority. 

1. CDE certification: For purposes of 

this NOAA, the CDFI Fund will only 

consider an Applicant as eligible for an 

NMTC Allocation in this round if the 

Applicant is certified as a CDE as of the 

Federal Register publication date of the 

NOAA. The CDFI Fund will not provide 

NMTC Allocation authority to 

Applicants that are not certified as CDEs 

or to entities that are certified as 

Subsidiary CDEs. 

2. Modifying CDE Service Area: If an 

Applicant currently certified as a CDE 

wishes to change its designated CDE 

Service Area for this Allocation Round, 

then it must submit a CDE Service Area 

Amendment Application to request 

such a change from the CDFI Fund, and 

the CDE Service Area Amendment 

Application must be received by the 

CDFI Fund by the deadline listed in 

Table 1. A request to change a CDE’s 

Service Area will need to include the 

revised service area designation and 

updated accountability information that 

demonstrates that the CDE has the 

required representation from LowIncome Communities in the revised CDE 

Service Area. 

3. Repayment or Refinancing of QEI 

with QLICI Proceeds: An Applicant 

must commit that it will not permit the 

use of the proceeds of QEIs to make 

QLICIs in Qualified Active Low-Income 

Community Businesses (QALICBs) 

where QLICI proceeds are used, in 

whole or in part, to repay or refinance 

a debt or equity provider whose capital 

was used to fund the QEI, or are used 

to repay or refinance any Affiliate of 

such a debt or equity provider, except 

where: (i) the QLICI proceeds are used 

to repay or refinance documented 

reasonable expenditures that are 

directly attributable to the qualified 

business of the QALICB, and such 

reasonable expenditures were incurred 

no more than 24 months prior to the 

QLICI closing date; or (ii) no more than 

five percent of the total QLICI proceeds 

from the QEI are used to repay or 

refinance documented reasonable 

expenditures that are directly 

attributable to the qualified business of 

the QALICB. Refinance includes 

transferring cash or property, directly or 

indirectly, to the debt or equity provider 

or an Affiliate of the debt or equity 

provider. 

4. Do Not Pay: The CDFI Fund will 

contact the Do Not Pay Business Center 

to ensure that an Applicant, its 

Controlling Entity, and any Affiliate(s) 

are not prohibited from receiving 

Federal funds. An Applicant, its 

Controlling Entity, and any Affiliate(s) 

reported by the Do Not Pay Business 

Center as having a pending or 

delinquent debt to the Federal 

government will be required to 

demonstrate that it has resolved such 

pending or delinquent debt. Applicants 

that fail to demonstrate resolution of 

such pending or delinquent debt to the 

Federal government will be found 

ineligible to receive an allocation. 

5. Controlling Entities: An 

organization that was a Controlling 

Entity to an Allocatee in a prior round(s) 

and subsequently separated from that 

Allocatee as a result of an amendment 

to the Allocation Agreement(s), may not 

claim the NMTC-related track record of 

such Allocatee. 


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6. Prior award recipients or 

Allocatees: Applicants must be aware 

that success in a prior Application or 

allocation round of any of the CDFI 

Fund’s programs is not indicative of 

success under this NOAA. For purposes 

of this NOAA, and eligibility 

determinations, the CDFI Fund will 

consider an Affiliate to be any entity 

that meets the definition of Affiliate as 

defined in the NMTC Allocation 

Application materials, or any entity 

otherwise identified as an Affiliate by 

the Applicant in its NMTC Allocation 

Application materials. 

Prior award recipients of any CDFI 

Fund program are eligible to apply 

under this NOAA, except as follows: 

(a) Prior Allocatees and Qualified 

Equity Investment (QEI) issuance and 

Qualified Low Income Community 

Investment (QLICI) requirements: CDEs 

that are Allocatees under the CY 2019 

to the CY 2023 rounds must finalize at 

least the percentage of QEIs noted in 

Table 2 for each NMTC Allocation 

round and use at least the percentage of 

those QEIs designated in Schedule 1, 

section 3.2(j) of their Allocation 

Agreements to make QLICIs by the 

deadline in Table 1. CDEs that are 

Allocatees under the CY 2019 to the CY 

2023 allocation rounds and CDEs that 

are Allocatees designated as Rural CDEs 

in their CY 2022 and CY 2023 

Allocation Agreement must meet the 

thresholds outlined in Table 2. 

TABLE 2—QEI ISSUANCE AND QLICI REQUIREMENTS

Prior round allocation 

Finalized QEI 

requirement 

(%) 

Rural CDE 

finalized QEI 

requirement 

(%) 

QLICIs 

CY 2019 .............................. 100 100 As stated in Schedule 1, Section 3.2(j) of the applicable Allocation Agreement. 

CY 2020 .............................. 90 90 

CY 2021 .............................. 80 80 

CY 2022 .............................. 60 50 

CY 2023 .............................. 10 0 

In addition to the requirements noted 

above, a CDE is not eligible to receive 

an NMTC Allocation pursuant to this 

NOAA if an Affiliate of the Applicant is 

a prior Allocatee and has not met the 

minimum QEI issuance and QLICI 

thresholds as set forth in Table 2 for 

Allocatees in the prior allocation rounds 

of the NMTC Program. 

For purposes of this section of the 

NOAA, the CDFI Fund will only 

recognize as ‘‘finalized’’ those QEIs that 

have been properly reported in AMIS 

Allocation and QEI Tracking System for 

Qualified Equity Investments (AQEIs) 

by the deadline in Table 1. Allocatees 

and their Subsidiary Allocatees, if any, 

are advised to access AMIS to record 

each QEI that they issue to an investor 

in exchange for cash. Furthermore, the 

CDFI Fund will only recognize QLICIs 

that have been certified in AMIS by the 

deadline in Table 1. Instructions on 

recording a QEI and QLICIs in AMIS are 

available at https://www.cdfifund.gov/ 

amisreporting. Applicants may be 

required, upon notification from the 

CDFI Fund, to submit documentation to 

substantiate the required QEI issuance 

and QLICI thresholds. 

Any prior Allocatee that requires 

action by the CDFI Fund (i.e., certifying 

a Subsidiary entity as a CDE; adding a 

Subsidiary CDE to an Allocation 

Agreement; etc.) in order to meet the 

QEI issuance requirements above must 

submit a CDE Certification Application 

for Subsidiary CDEs and/or Allocation 

Agreement amendment requests by the 

respective deadlines in Table 1, in order 

to guarantee that the CDFI Fund 

completes all necessary approvals prior 

to the QEI issuance deadline in Table 1. 

Applicants for Subsidiary CDE 

certification may obtain information 

regarding CDE certification and the CDE 

Certification Application process in 

AMIS on the CDFI Fund’s website at 

https://www.cdfifund.gov/programstraining/certification/cde/Pages/ 

default.aspx. 

(b) Pending determination of 

noncompliance or default: If an 

Applicant or Affiliate of the Applicant 

is a prior award recipient or Allocatee 

under any CDFI Fund program and if: (i) 

it has demonstrated noncompliance 

with a previous assistance or award 

agreement or default under a previous 

Allocation Agreement or pursuant to 

any other agreement under any CDFI 

Fund program; and (ii) the entity has 

been given a timeframe to cure the 

noncompliance or default, the CDFI 

Fund will consider the Applicant’s 

Application under this NOAA during 

the time period given for the entity to 

cure the noncompliance or default, and 

until such time as the CDFI Fund makes 

a final determination that the entity is 

in noncompliance or default. 

(c) Noncompliance or default status: 

The CDFI Fund will not consider an 

Application submitted by an Applicant 

that is a prior CDFI Fund award 

recipient or Allocatee under any CDFI 

Fund program if, as of the Application 

deadline of this NOAA: (i) the CDFI 

Fund has made a final determination in 

writing that such Applicant or Affiliate 

of an Applicant is in noncompliance 

with or default of a previously executed 

Assistance Agreement, Award 

Agreement, Allocation Agreement, Bond 

Loan Agreement, or Agreement to 

Guarantee; and (ii) the CDFI Fund has 

provided written notification that such 

entity is ineligible to apply for or 

receive any future CDFI Fund awards or 

allocations. Such entities will be 

ineligible to submit an Application for 

such time period as specified by the 

CDFI Fund in writing. Additionally, 

regardless of whether a sanction or 

remedy is imposed, the CDFI Fund will 

not consider an Application submitted 

by an Applicant or Affiliate of an 

Applicant if the default on a prior 

Allocation Agreement of the Applicant 

or Affiliate occurs during the time 

period beginning 12 months prior to the 

Application deadline and ending with 

the CY 2024–2025 allocation award 

announcement. The CDFI Fund will not 

consider any Applicant that has 

defaulted on a loan from the CDFI Fund 

within five years of the Application 

deadline. 

(d) Contacting the CDFI Fund: 

Accordingly, Applicants that are prior 

award recipients and/or Allocatees 

under any CDFI Fund program are 

advised to comply with the 

requirements specified in assistance, 

allocation and/or award agreement(s). 

All outstanding reports and compliance 

questions should be directed to the 

Office of Compliance Monitoring and 

Evaluation (OCME) through a Service 

Request initiated in AMIS. Requests 

submitted less than 30 calendar days 

prior to the Application deadline may 

not receive a response before the 

Application deadline. The CDFI Fund 

will respond to Applicants’ reporting, 

compliance and CDE certification 


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inquiries Monday through Friday, 

between the hours of 9:00 a.m. and 5:00 

p.m. ET, starting the date of publication 

of this NOAA through the ‘‘Last date to 

contact CDFI Fund staff’’ specified in 

Table 1. Inquiries received after the 

‘‘Last date to contact the CDFI Fund 

staff’’ will be responded to after the 

Allocation Application deadline. 

7. Failure to accurately respond to a 

question in the Assurances and 

Certifications section of the Application, 

submit the required written explanation, 

or provide any updates: In its sole 

discretion, the CDFI Fund may deem the 

Applicant’s Application ineligible if the 

CDFI Fund determines that the 

Applicant inaccurately responded to a 

question, accurately responded to a 

question, but failed to submit a required 

written explanation, or failed to notify 

the CDFI Fund of any changes to the 

information submitted between the date 

of Application and the date the 

Allocatee executes the Allocation 

Agreement, with respect to the 

Assurances and Certifications. In 

making this determination, the CDFI 

Fund will take into consideration, 

among other factors, the materiality of 

the question, the substance of any 

supplemental responses provided, and 

whether the information in the 

Applicant’s supplemental responses 

would have a material adverse effect on 

the Applicant, its financial condition or 

its ability to perform under an 

Allocation Agreement, should the 

Applicant receive an allocation. 

8. Entities that propose to transfer 

NMTCs to Subsidiary CDEs: Both forprofit and non-profit CDEs may apply 

for NMTC Allocation authority, but only 

a for-profit CDE is permitted to provide 

NMTCs to its investors. A non-profit 

Applicant wishing to apply for an 

NMTC Allocation must demonstrate, 

prior to entering into an Allocation 

Agreement with the CDFI Fund, that: (i) 

it controls one or more Subsidiary CDEs 

that are for-profit entities; and (ii) it 

intends to transfer the full amount of 

any NMTC Allocation it receives to said 

Subsidiary CDEs. An Applicant wishing 

to transfer all or a portion of its NMTC 

Allocation to a Subsidiary CDE is not 

required to create the Subsidiary prior 

to submitting an NMTC Allocation 

Application to the CDFI Fund. However, 

the Subsidiary entities must be certified 

as CDEs by the CDFI Fund and enjoined 

as parties to the Allocation Agreement 

at closing or by amendment to the 

Allocation Agreement after closing. 

The CDFI Fund requires a non-profit 

Applicant to submit a CDE Certification 

Application to the CDFI Fund on behalf 

of at least one for-profit Subsidiary 

within 30 days after the non-profit 

Applicant receives notification from the 

CDFI Fund of its allocation award, as 

such Subsidiary must be certified as a 

CDE prior to entering into an Allocation 

Agreement with the CDFI Fund. The 

CDFI Fund reserves the right to rescind 

the award if a non-profit Applicant that 

does not already have a certified forprofit Subsidiary CDE fails to submit a 

CDE Certification Application for one or 

more for-profit Subsidiaries within 30 

days of the date it receives notification 

from the CDFI Fund of its allocation 

award. 

9. Entities that submit Applications 

together with Affiliates; Applications 

from common enterprises: 

(a) As part of the Allocation 

Application review process, the CDFI 

Fund will evaluate whether Applicants 

are Affiliates, as such term is defined in 

the Allocation Application. If an 

Applicant and its Affiliate(s) wish to 

submit Allocation Applications, they 

must do so collectively, in one 

Application; an Applicant and its 

Affiliate(s) may not submit separate 

Allocation Applications. If Affiliated 

entities submit multiple Applications, 

the CDFI Fund will reject all such 

Applications received, except for those 

state-owned or state-controlled 

governmental Affiliated entities. In the 

case of state-owned or state-controlled 

governmental entities, the CDFI Fund 

may accept Applications submitted by 

different government bodies within the 

same state, but only to the extent the 

CDFI Fund determines that the business 

strategies and/or activities described in 

such Applications, submitted by 

separate entities, are distinctly 

dissimilar and/or are operated and/or 

managed by distinctly dissimilar 

personnel, including staff, board 

members and identified consultants. In 

such cases, the CDFI Fund reserves the 

right to limit award amounts to such 

entities to ensure that the entities do not 

collectively receive more than the $120 

million cap. 

If the CDFI Fund determines that the 

Applications submitted by different 

government bodies in the same state are 

not distinctly dissimilar and/or operated 

and/or managed by distinctly dissimilar 

personnel, it will reject all such 

Applications. 

(b) For purposes of this NOAA, the 

CDFI Fund will also evaluate whether 

each Applicant is operated or managed 

as a ‘‘common enterprise’’ with another 

Applicant in this Allocation Round 

using the following indicia, among 

others: (i) whether different Applicants 

have the same individual(s), including 

the Authorized Representative, staff, 

board members and/or consultants, 

involved in day-to-day management, 

operations and/or investment 

responsibilities; (ii) whether the 

Applicants have business strategies and/ 

or proposed activities that are so similar 

or so closely related that, in fact or 

effect, they may be viewed as a single 

entity; and/or (iii) whether the 

Applications submitted by separate 

Applicants contain significant narrative, 

textual or other similarities such that 

they may, in fact or effect, be viewed as 

substantially identical Applications. In 

such cases, the CDFI Fund will reject all 

Applications received from such 

entities. 

(c) Furthermore, an Applicant that 

receives an NMTC Allocation in this 

Allocation Round (or its Subsidiary 

Allocatee) may not become an Affiliate 

of or member of a common enterprise 

(as defined above) with another 

Applicant that receives an NMTC 

Allocation in this Allocation Round (or 

its Subsidiary Allocatee) at any time 

after the submission of an Allocation 

Application under this NOAA. This 

prohibition, however, generally does not 

apply to entities that are commonly 

controlled solely because of common 

ownership by QEI investors. This 

requirement will also be a term and 

condition of the Allocation Agreement 

(see Section VI.B of this NOAA and 

additional Application guidance 

materials on the CDFI Fund’s website at 

https://www.cdfifund.gov for more 

details). 

10. Entities created as a series of 

funds: An Applicant whose business 

structure consists of an entity with a 

series of funds must apply for CDE 

certification for each fund. If such an 

Applicant represents that it is properly 

classified for Federal tax purposes as a 

single partnership or corporation, it may 

apply for CDE certification as a single 

entity. If an Applicant represents that it 

is properly classified for Federal tax 

purposes as multiple partnerships or 

corporations, then it must submit a CDE 

Certification Application for the 

Applicant and each fund it would like 

to participate in the NMTC Program, 

and each fund must be separately 

certified as a CDE. Applicants should 

note, however, that receipt of CDE 

certification as a single entity or as 

multiple entities is not a determination 

that an Applicant and its related funds 

are properly classified as a single entity 

or as multiple entities for Federal tax 

purposes. Regardless of whether the 

series of funds is classified as a single 

partnership or corporation or as 

multiple partnerships or corporations, 

an Applicant may not transfer any 

NMTC Allocations it receives to one or 

more of its funds unless the fund is a 

certified CDE that is a Subsidiary of the 


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Applicant, enjoined to the Allocation 

Agreement as a Subsidiary Allocatee. 

11. Entities that are Bank Enterprise 

Award Program (BEA Program) award 

recipients: An insured depository 

institution investor (and its Affiliates 

and Subsidiaries) may not receive a BEA 

Program award for the same investment 

in a CDE that is used to claim NMTCs. 

Likewise, an insured depository 

institution investor (and its Affiliates 

and Subsidiaries) may not receive a BEA 

Program award for the same investment 

in a CDE that is used to claim NMTCs. 

12. Insured Depository Institutions: 

An Applicant that is or is affiliated with 

an insured depository institution will 

not be awarded an NMTC Allocation if 

it has a composite rating of ‘‘5’’ on its 

most recent examination, performed in 

accordance with the Uniform Financial 

Institutions Rating System. 

Furthermore, the CDFI Fund will not 

award an NMTC Allocation to an 

Applicant that is an insured depository 

institution or is an Affiliate of an 

insured depository institution, if during 

the time period beginning with the 

Application deadline and ending with 

the execution of the CY 2024–2025 

Allocation Agreement; the Applicant 

received any of the following: 

(a) CRA assessment rating of below 

‘‘Satisfactory’’ on its most recent 

examination; 

(b) A going concern opinion on its 

most recent audit; or 

(c) A Prompt Corrective Action 

directive from its regulator. 

IV. Application and Submission 

Information 

A. Address to request Application 

package: Applicants must submit 

Applications electronically under this 

NOAA, through the CDFI Fund’s AMIS. 

Following the publication of this 

NOAA, the CDFI Fund will make the 

electronic Allocation Application 

available on its website at https://

www.cdfifund.gov. 

B. Application content requirements: 

Detailed Application content 

requirements are found in the 

Application related to this NOAA. 

Applicants must submit all materials 

described in and required by the 

Application by the applicable deadlines. 

Applicants will not be afforded an 

opportunity to provide any missing 

materials or documentation, except, if 

necessary and at the request of the CDFI 

Fund. Electronic Applications must be 

submitted solely by using the format 

made available via AMIS. Additional 

information, including instructions 

relating to the submission of supporting 

information (e.g., the Controlling 

Entity’s representative signature page, 

Assurances and Certifications 

supporting documents, investor letters, 

organizational charts), is set forth in 

further detail in the CY 2024–2025 

NMTC Application—AMIS Navigation 

Guide for this Allocation Round. An 

Application must include a valid and 

current Employer Identification Number 

(EIN) issued by the Internal Revenue 

Service (IRS) and assigned to the 

Applicant and, if applicable, its 

Controlling Entity. Electronic 

Applications without a valid EIN are 

incomplete and cannot be transmitted to 

the CDFI Fund. For more information on 

obtaining an EIN, please contact the IRS 

at (800) 829–4933 or www.irs.gov. Do 

not include any personal Social Security 

Numbers as part of the Application. 

C. NMTC Application Registration 

(Application Registration): CY 2024– 

2025 Allocation Round Applicants are 

first required to complete and save the 

Application Registration section of the 

NMTC Allocation Application in AMIS 

by the Application Registration deadline 

in Table 1 in order to be able to submit 

the remaining sections of the CY 2024– 

2025 Allocation Application by the 

Application deadline. Applicants that 

do not complete and save the 

Application Registration by the 

Application Registration deadline in 

Table 1, will not be able to subsequently 

submit a CY 2024–2025 Allocation 

Application in AMIS. 

An Applicant may not submit more 

than one Application in response to this 

NOAA. In addition, as stated in Section 

III.A.8 of this NOAA, an Applicant and 

its Affiliates must collectively submit 

only one Allocation Application; an 

Applicant and its Affiliates may not 

submit separate Allocation Applications 

except as outlined in Section III.A.8 

above. Once an Application is 

submitted, an Applicant will not be 

allowed to change any element of its 

Application. 

D. Form of Application submission: 

Applicants may only submit 

Applications under this NOAA 

electronically via AMIS. Applications 

and required attachments sent by mail, 

facsimile, or email will not be accepted. 

Submission of an electronic Application 

will facilitate the processing and review 

of Applications and the selection of 

Allocatees; further, it will assist the 

CDFI Fund in the implementation of 

electronic reporting requirements. 

Electronic Applications must be 

submitted solely by using the CDFI 

Fund’s website and must be sent in 

accordance with the submission 

instructions provided in the CY 2024– 

2025 NMTC Application—AMIS 

Navigation Guide for this Allocation 

Round. AMIS will only permit the 

submission of Applications in which all 

required questions and tables are fully 

completed. Additional information, 

including instructions relating to the 

submission of supporting information 

(e.g., the Controlling Entity’s 

representative signature page, 

Assurances and Certifications 

supporting documents, investor letters, 

and organizational charts) is set forth in 

further detail in the CY 2024–2025 

NMTC Application—AMIS Navigation 

Guide for this Allocation Round. 

E. Application submission dates and 

times: Electronic Applications must be 

received by the Allocation Application 

deadline in Table 1. Electronic 

Applications cannot be transmitted or 

received after Allocation Application 

deadline in Table 1. In addition, 

Applicants must electronically submit 

supporting information (e.g., the 

Controlling Entity’s representative 

signature page, investor letters, and 

organizational charts). The Controlling 

Entity’s representative signature page, 

investor letters, and organizational 

charts must be submitted on or before 

the Application deadline in Table 1. For 

details, see the instructions provided in 

the CY 2024–2025 NMTC Application— 

AMIS Navigation Guide for this 

Allocation Round on the CDFI Fund’s 

website. 

Applications and other required 

documents received after this date and 

time will be rejected. Please note that 

the document submission deadlines in 

this NOAA and/or the Allocation 

Application are strictly enforced. 

F. Intergovernmental Review: Not 

applicable. 

G. Funding Restrictions: For allowable 

uses of investment proceeds related to 

an NMTC Allocation, please see 26 

U.S.C. 45D and the final regulations 

issued by the Internal Revenue Service 

(26 CFR 1.45D–1, published December 

28, 2004 and as amended) and related 

guidance. Please see Section I, above, 

for the Programmatic Changes of this 

NOAA. 

H. Paperwork Reduction: Under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35), an agency may not conduct 

or sponsor a collection of information, 

and an individual is not required to 

respond to a collection of information, 

unless it displays a valid OMB control 

number. Pursuant to the Paperwork 

Reduction Act, the Application has been 

assigned the following control number: 

1559–0016. 

V. Application Review Information 

A. Review and selection process: All 

Allocation Applications will be 

reviewed for eligibility and 

completeness. To be complete, the 


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Application must contain, at a 

minimum, all information described as 

required in the Application form. An 

incomplete Application will be rejected. 

Once the Application has been 

determined to be eligible and complete, 

the CDFI Fund will conduct the 

substantive review of each Application 

in two parts (Phase 1 and Phase 2) in 

accordance with the criteria and 

procedures generally described in this 

NOAA and the Allocation Application. 

In Phase 1, two reviewers will 

evaluate and score the Business Strategy 

and Community Outcomes sections of 

each Application. An Applicant must 

exceed a minimum overall aggregate 

base score threshold and exceed a 

minimum aggregate section score 

threshold in each scored section in 

order to advance from the Phase 1 to the 

Phase 2 part of the substantive review 

process. In Phase 2, the CDFI Fund will 

rank Applicants and determine the 

dollar amount of allocation authority 

awarded in accordance with the 

procedures set forth below. Factors 

considered in Phase 2 include the 

relevant business strategy and 

community outcome criteria from 

Section V.B and the additional factors 

outlined in Section V.C of this NOAA. 

B. Criteria: 

1. Business Strategy (25-point 

maximum): 

(a) When assessing an Applicant’s 

business strategy, reviewers will 

consider, among other things: the 

Applicant’s products, services and 

investment criteria; a pipeline of 

potential business loans or investments 

consistent with an Applicant’s request 

for an NMTC Allocation; the prior 

performance of the Applicant or its 

Controlling Entity, particularly as it 

relates to making similar kinds of 

investments as those it proposes to 

make with the proceeds of QEIs; the 

Applicant’s prior performance in 

providing capital or technical assistance 

to disadvantaged businesses or 

communities; and the extent to which 

the Applicant intends to make QLICIs in 

one or more businesses in which 

persons unrelated to the entity hold a 

majority equity interest. 

Under the Business Strategy criterion, 

an Applicant will generally score well 

to the extent that it will deploy debt or 

investment capital in products or 

services which are flexible or nontraditional in form and on better terms 

than available in the marketplace. An 

Applicant will also score well to the 

extent that, among other things: (i) it has 

identified a set of clearly defined 

potential borrowers or investees; (ii) it 

describes the due diligence it will 

conduct prior to making QLICIs to 

determine whether a QALICB will 

remain financially viable and 

operational; (iii) it has a track record of 

successfully deploying loans or equity 

investments and providing services 

similar to those it intends to provide 

with the proceeds of QEIs; (iv) its 

projected dollar volume of NMTC 

Allocation deployment is supported by 

its track record of deployment; and (v) 

in the case of an Applicant proposing to 

purchase loans from CDEs, the 

Applicant will require the CDE selling 

such loans to re-invest the proceeds of 

the loan sale to provide additional 

products and services to Low-Income 

Communities. 

(b) Priority Points: In addition, as 

provided by IRC § 45D(f)(2), the CDFI 

Fund will ascribe additional points to 

entities that meet one or both of the 

statutory priorities. First, the CDFI Fund 

will give up to five additional points to 

any Applicant that has a record of 

having successfully provided capital or 

technical assistance to disadvantaged 

businesses or communities. Second, the 

CDFI Fund will give five additional 

points to any Applicant that intends to 

satisfy the requirement of IRC 

§ 45D(b)(1)(B) by making QLICIs in one 

or more businesses in which persons 

unrelated (within the meaning of IRC 

§ 267(b) or IRC § 707(b)(1)) to an 

Applicant (and the Applicant’s 

Subsidiary CDEs, if the Subsidiary 

Allocatee makes the QLICI) hold the 

majority equity interest. Applicants may 

earn points for one or both statutory 

priorities. Thus, Applicants that meet 

the requirements of both priority 

categories can receive up to a total of ten 

additional points. A record of having 

successfully provided capital or 

technical assistance to disadvantaged 

businesses or communities may be 

demonstrated either by the past actions 

of an Applicant itself or by its 

Controlling Entity (e.g., where a new 

CDE is established by a nonprofit 

corporation with a history of providing 

assistance to disadvantaged 

communities). An Applicant that 

receives additional points for intending 

to make investments in unrelated 

businesses and is awarded an NMTC 

Allocation must meet the requirements 

of IRC § 45D(b)(1)(B) by investing 

substantially all of the proceeds from its 

QEIs in unrelated businesses. The CDFI 

Fund will include an Applicant’s 

priority points when ranking Applicants 

during Phase 2 of the review process, as 

described below. 

2. Community Outcomes (25-point 

maximum): In assessing the potential 

benefits to Low-Income Communities 

that may result from the Applicant’s 

proposed investments, reviewers will 

consider, among other things, the degree 

to which the Applicant is likely to: (i) 

achieve significant and measurable 

community development outcomes in 

its Low-Income Communities; (ii) invest 

in particularly economically distressed 

markets including areas identified in the 

Allocation Application; (iii) engage with 

local communities regarding 

investments; (iv) ensure that 

investments benefit Low-Income 

Persons and Low-Income Community 

Residents; and (v) involve community 

representatives in the governing board 

and/or advisory board in approving 

investment criteria or decisions. 

An Applicant will generally score 

well under this section to the extent 

that, among other things: (a) it will 

generate clear and well supported 

community development outcomes; (b) 

it has a track record of producing 

quantitative and qualitative community 

outcomes that are similar to those 

projected to be achieved with an NMTC 

Allocation; (c) it commits to working in 

particularly economically distressed or 

otherwise underserved communities as 

identified in the Allocation Application; 

(d) its activities are part of a broader 

community or economic development 

strategy; (e) it demonstrates a track 

record of community engagement 

around past investment decisions; and 

(f) it ensures that an NMTC investment 

into a project or business is supported 

by and will be beneficial to Low-Income 

Persons and residents of Low-Income 

Communities, including how input 

received through community 

engagement and data analysis inform its 

investment decisions. 

C. Phase 2 Evaluation: 

1. Application Ranking and Anomaly 

Reviews: Using the numeric scores from 

Phase 1, Applicants are ranked on the 

basis of each Applicant’s combined 

scores in the Business Strategy and 

Community Outcomes sections of the 

Application plus one half of the priority 

points. If, in the case of a particular 

Application, a reviewer’s total base 

score or section score(s) (in one or more 

of the two Application scored sections) 

varies significantly from the other 

reviewer’s total base scores or section 

scores for such Application, the CDFI 

Fund may, in its sole discretion, obtain 

the evaluation and numeric scoring of a 

third reviewer to determine whether the 

anomalous score should be replaced 

with the score of the third reviewer. 

2. Late Reports: In the case of an 

Applicant or any Affiliates that have 

previously received an award or NMTC 

Allocation from the CDFI Fund through 

any CDFI Fund program, the CDFI Fund 

will deduct up to five points from the 

Applicant’s rank score for the 


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Applicant’s (or its Affiliate’s) failure to 

meet any of the reporting deadlines set 

forth in any assistance, award or 

Allocation Agreement(s), if the reporting 

deadlines occurred during the period 

from December 20, 2023 to the 

Application deadline in this NOAA. 

3. Prior Year Allocatees: In the case of 

Applicants (or their Affiliates) that are 

prior year Allocatees, the Applicant will 

complete Part V of the Application and 

the CDFI Fund will review the activities 

of the prior year Allocatee to determine 

whether the entity has: (a) effectively 

utilized its prior-year NMTC Allocations 

in a manner generally consistent with 

the representations made in the relevant 

Allocation Application (including, but 

not limited to, the proposed product 

offerings, business type, fees and 

markets served (i.e. service area) and 

notable relationships); (b) issued QEIs 

and closed QLICIs in a timely manner; 

and (c) substantiated a need for 

additional NMTC Allocation authority. 

The CDFI Fund will use this 

information in determining whether to 

reject or reduce the allocation award 

amount of its NMTC Allocation 

Application. 

An Applicant will be evaluated more 

favorably under Part V of the 

Application to the extent that it clearly 

explains: (i) how it ensures that the 

NMTCs allocated to QALICBs did not 

exceed the amount necessary to assure 

QALICB feasibility; (ii) the community 

outcomes or benefits that were 

generated as a result of the transactions; 

(iii) the source(s) and amount(s) of 

leveraged debt; (iv) the NMTC-related 

fees and third-party expenses paid by 

the QALICB or the QALICB’s Affiliates, 

including actions taken to control 

expenses paid by QALICBs and 

investors; and (v) the quantified value of 

the investment acquired by the QALICBs 

at the end of the seven-year credit 

period, to the extent the Applicant’s 

past transactions have been structured 

to allow QALICBs to acquire a portion 

of QLICIs at the end of the seven-year 

credit period. An Applicant will also be 

evaluated favorably to the extent the 

activities undertaken with the NMTC 

dollars are consistent with the business 

strategy presented in the relevant 

Allocation Application (e.g. product 

offerings; business type; fees and 

markets served; notable relationships, 

etc.). 

4. Management Capacity: In assessing 

an Applicant’s management capacity, 

the CDFI Fund will consider, among 

other things, the current and planned 

roles, as well as qualifications of the 

Applicant’s (and Controlling Entity’s, if 

applicable): principals; board members; 

management team; and other essential 

staff or contractors, with specific focus 

on: experience in providing loans; 

equity investments or financial 

counseling and other services, including 

activities similar to those described in 

the Applicant’s business strategy; asset 

management and risk management 

experience; experience with fulfilling 

compliance requirements of other 

governmental programs, including other 

tax credit programs; and the Applicant’s 

(or its Controlling Entity’s) financial 

health. CDFI Fund evaluators will also 

consider the extent to which an 

Applicant has protocols in place to 

ensure ongoing compliance with NMTC 

Program requirements and the 

Applicant’s projected income and 

expenses related to managing an NMTC 

Allocation. 

An Applicant will be generally 

evaluated more favorably under this 

section to the extent that its 

management team or other essential 

personnel have experience in: (a) 

identifying and underwriting loans and/ 

or equity investments or providing 

financial counseling and other services 

in Low-Income Communities, if 

applicable, particularly those likely to 

be served with QLICIs from the 

Applicant; (b) asset and risk 

management; and (c) fulfilling 

government compliance requirements, 

particularly tax credit program 

compliance. An Applicant will also be 

evaluated favorably to the extent it 

demonstrates strong financial health 

and a high likelihood of remaining a 

going-concern, including support from 

the Controlling Entity, if applicable; it 

clearly explains its NMTC fees as well 

as levels of income and expenses; has 

policies and systems in place to ensure 

portfolio quality, ongoing compliance 

with NMTC Program requirements; and, 

if it is a Federally-insured financial 

institution, has its most recent 

Community Reinvestment Act (CRA) 

rating as ‘‘outstanding.’’ 

5. Capitalization Strategy: When 

assessing an Applicant’s capitalization 

strategy, the CDFI Fund will consider, 

among other things: the key personnel 

of the Applicant (or Controlling Entity) 

and their track record of raising capital, 

particularly from for-profit investors; 

the extent to which the Applicant has 

secured investments or commitments to 

invest in NMTC (if applicable), or 

indications of investor interest 

commensurate with its requested 

amount of NMTC Allocations, or, if a 

prior Allocatee, the track record of the 

Applicant or its Affiliates in raising 

Qualified Equity Investments in the past 

five years; the Applicant’s strategy for 

identifying additional investors, if 

necessary, including the Applicant’s (or 

its Controlling Entity’s) prior 

performance with raising equity from 

investors, particularly for-profit 

investors; the distribution of the 

economic benefits of the tax credit; and 

the extent to which the Applicant 

intends to invest the proceeds from the 

aggregate amount of its QEIs at a level 

that exceeds the requirements of IRC 

§ 45D(b)(1)(B) and the IRS regulations. 

An Applicant will be evaluated more 

favorably under this section to the 

extent that: (a) it or its Controlling 

Entity demonstrate a track record of 

raising investment capital; (b) it has 

secured investor commitments, or has a 

reasonable strategy for obtaining such 

commitments, or, if it or its Affiliates is 

a prior Allocatee with a track record in 

the past five years of raising Qualified 

Equity Investments and; (c) it generally 

demonstrates that the economic benefits 

of the tax credit will be passed through 

to a QALICB; and (d) it intends to invest 

the proceeds from the aggregate amount 

of its QEIs at a level that exceeds the 

requirements of IRC § 45D(b)(1)(B) and 

the IRS regulations. In the case of an 

Applicant proposing to raise investor 

funds from organizations that also will 

identify or originate transactions for the 

Applicant or from Affiliated entities, 

said Applicant will be evaluated more 

favorably to the extent that it will offer 

products with more favorable rates or 

terms than those currently offered by its 

investor(s) or Affiliated entities and/or 

will target its activities to areas of 

greater economic distress than those 

currently targeted by the investor or 

Affiliated entities. 

6. Contacting Applicants: As a part of 

the substantive review process, the CDFI 

Fund may permit the NMTC Allocation 

recommendation panel member(s) to 

request information from Applicants for 

the sole purpose of obtaining, clarifying 

or confirming Application information 

or omission of information. In no event 

shall such contact be construed to 

permit an Applicant to change any 

element of its Application. At this point 

in the process, an Applicant may be 

required to submit additional 

information about its Application in 

order to assist the CDFI Fund with its 

final evaluation process. If the 

Applicant (or the Controlling Entity or 

any Affiliate) has previously been 

awarded an NMTC Allocation, the CDFI 

Fund may also request information on 

the use of those NMTC Allocations, to 

the extent that this information has not 

already been reported to the CDFI Fund. 

Such requests must be responded to 

within the time parameters set by the 

CDFI Fund. The selecting official(s) will 

make a final allocation determination 

based on an Applicant’s file, including, 


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without limitation, eligibility under IRC 

§ 45D, the reviewers’ scores and the 

amount of NMTC Allocation authority 

available. 

7. Award Decisions: The CDFI Fund 

will award allocations in descending 

order of the final rank score, subject to 

Applicants meeting all other eligibility 

requirements; provided, however, that 

the CDFI Fund, in its sole discretion, 

reserves the right to reject an 

Application and/or adjust award 

amounts as appropriate based on 

information obtained during the review 

process. 

D. Allocations serving NonMetropolitan counties: As provided for 

under Section 102(b) of the Tax Relief 

and Health Care Act of 2006 (Pub. L. 

109–432), the CDFI Fund shall ensure 

that Non-Metropolitan counties receive 

a proportional allocation of QEIs under 

the NMTC Program. The CDFI Fund will 

endeavor to ensure that 20 percent of 

the QLICIs to be made using QEI 

proceeds are invested in NonMetropolitan counties. In addition, the 

CDFI Fund will ensure that the 

proportion of Allocatees that are Rural 

CDEs is, at a minimum, equal to the 

proportion of Applicants in the highly 

qualified pool that are Rural CDEs. A 

Rural CDE is one that has a track record 

of at least three years of direct financing 

experience, has dedicated at least 50 

percent of its direct financing dollars to 

Non-Metropolitan counties over the past 

five years, and has committed that at 

least 50 percent of its NMTC financing 

dollars with this NMTC Allocation will 

be deployed in such areas. NonMetropolitan counties are counties not 

contained within a Metropolitan 

Statistical Area, as such term is defined 

in OMB Bulletin No. 20–01 (Revised 

Delineations of Metropolitan Statistical 

Areas, Micropolitan Statistical Areas, 

and Combined Statistical Areas, and 

Guidance on Uses of the Delineations of 

These Areas) and applied using 2020 

census tracts. 

Applicants that meet the minimum 

scoring thresholds will be advanced to 

Phase 2 review and will be provided 

with ‘‘preliminary’’ awards, in 

descending order of final rank score, 

until the available allocation authority 

is fulfilled. Once these ‘‘preliminary’’ 

award amounts are determined, the 

CDFI Fund will then analyze the 

Allocatee pool to determine whether the 

two Non-Metropolitan proportionality 

objectives have been met. 

The CDFI Fund will first examine the 

‘‘preliminary’’ awards and Allocatees to 

determine whether the percentage of 

Allocatees that are Rural CDEs is, at a 

minimum, equal to the percentage of 

Applicants in the highly qualified pool 

that are Rural CDEs. If this objective is 

not achieved, the CDFI Fund will 

provide awards to additional Rural 

CDEs from the highly qualified pool, in 

descending order of their final rank 

score, until the appropriate percentage 

balance is achieved. In order to 

accommodate the additional Rural CDEs 

in the Allocatee pool within the 

available NMTC Allocation limitations, 

a formula reduction may be applied as 

uniformly as possible to the allocation 

amount for all Allocatees in the pool 

that have not committed to investing a 

minimum of 20 percent of their QLICIs 

in Non-Metropolitan counties. 

The CDFI Fund will then determine 

whether the pool of Allocatees will, in 

the aggregate, invest at least 20 percent 

of their QLICIs (as measured by dollar 

amount) in Non-Metropolitan counties. 

The CDFI Fund will first apply the 

‘‘minimum’’ percentage of QLICIs that 

Allocatees indicated in their 

Applications would be targeted to NonMetropolitan areas to the total NMTC 

Allocation award amount of each 

Allocatee (less whatever percentage the 

Allocatee indicated would be retained 

for non-QLICI activities) and total these 

figures for all Allocatees. If this 

aggregate total is greater than or equal to 

20 percent of the QLICIs to be made by 

the Allocatees, then the pool is 

considered balanced and the CDFI Fund 

will proceed with the NMTC Allocation 

process. However, if the aggregate total 

is less than 20 percent of the QLICIs to 

be made by the Allocatees, the CDFI 

Fund will consider requiring any or all 

of the Allocatees to direct up to the 

‘‘maximum’’ percentage of QLICIs that 

the Allocatees indicated would be 

targeted to Non-Metropolitan counties, 

taking into consideration their track 

record and ability to deploy dollars in 

Non-Metropolitan counties. If the CDFI 

Fund cannot meet the goal of 20 percent 

of QLICIs in Non-Metropolitan counties 

by requiring any or all Allocatees to 

commit up to the maximum percentage 

of QLICIs that they indicated would be 

targeted to Non-Metropolitan counties, 

the CDFI Fund may add additional 

highly qualified Rural CDEs (in 

descending order of final rank score) to 

the Allocatee pool. In order to 

accommodate any additional Allocatees 

within the allocation limitations, a 

formula reduction will be applied as 

uniformly as possible, to the allocation 

amount for all Allocatees in the pool 

that have not committed to investing a 

minimum of 20 percent of their QLICIs 

in Non-Metropolitan counties. 

E. Right of rejection: The CDFI Fund 

reserves the right to reject any NMTC 

Allocation Application in the case of a 

prior CDFI Fund award recipient, if 

such Applicant has failed to comply 

with the terms, conditions, and other 

requirements of the prior or existing 

assistance or award agreement(s) with 

the CDFI Fund or any other agreement 

under any CDFI Fund program. The 

CDFI Fund reserves the right to reject 

any NMTC Allocation Application in 

the case of a prior CDFI Fund Allocatee, 

if such Applicant has failed to comply 

with the terms, conditions, and other 

requirements of its prior or existing 

Allocation Agreement(s) with the CDFI 

Fund. The CDFI Fund reserves the right 

to reject any NMTC Allocation 

Application in the case of any 

Applicant, if an Affiliate of the 

Applicant has failed to meet the terms, 

conditions and other requirements of 

any prior or existing assistance 

agreement, award agreement, Allocation 

Agreement, or any other agreement 

under any CDFI Fund program with the 

CDFI Fund. 

The CDFI Fund reserves the right to 

reject or reduce the allocation award 

amount of any NMTC Allocation 

Application in the case of a prior 

Allocatee, if such Applicant has failed 

to use its prior NMTC Allocation(s) in 

a manner that is generally consistent 

with the business strategy (including, 

but not limited to, the proposed product 

offerings, business type, fees, markets 

served (i.e. service area), and notable 

relationships) set forth in the Allocation 

Application(s) related to such prior 

NMTC Allocation(s) or such Applicant 

has been found by the IRS to have 

engaged in a transaction or series of 

transactions designed to achieve a result 

that is inconsistent with the purposes of 

IRC § 45D. The CDFI Fund also reserves 

the right to reject or reduce the 

allocation award amount of any NMTC 

Allocation Application in the case of an 

Affiliate of the Applicant that is a prior 

Allocatee and has failed to use its prior 

NMTC Allocation(s) in a manner that is 

generally consistent with the business 

strategy (including, but not limited to, 

the proposed product offerings, business 

type, fees, markets served (i.e., service 

area), and notable relationships) set 

forth in the Allocation Application(s) 

related to such prior NMTC 

Allocation(s) or has been found by the 

IRS to have engaged in a transaction or 

series of transactions designed to 

achieve a result that is inconsistent with 

the purposes of IRC § 45D. 

The CDFI Fund reserves the right to 

reject an NMTC Allocation Application 

if information (including, but not 

limited to, administrative errors; 

submission of inaccurate information; or 

omission of information) comes to the 

attention of the CDFI Fund that 

adversely affects an Applicant’s 


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eligibility for an award, adversely affects 

the CDFI Fund’s evaluation or scoring of 

an Application, adversely affects the 

CDFI Fund’s prior determinations of 

CDE certification, or indicates fraud or 

mismanagement on the part of an 

Applicant, its Affiliate(s), or the 

Controlling Entity, if such fraud or 

mismanagement by the Affiliate(s) or 

Controlling Entity would hinder the 

Applicant’s ability to perform under the 

Allocation Agreement. If the CDFI Fund 

determines that any portion of the 

Application is incorrect in any material 

respect, the CDFI Fund reserves the 

right, in its sole discretion, to reject the 

Application. 

The CDFI Fund reserves the right to 

reject any NMTC Allocation Application 

if additional information is obtained 

that, after further due diligence and in 

the discretion of the CDFI Fund, would 

hinder the Applicant’s ability to 

effectively perform under the Allocation 

Agreement. 

In the case of Applicants (or the 

Controlling Entity, or Affiliates) that are 

regulated or receive oversight by the 

Federal government or a state agency (or 

comparable entity), the CDFI Fund may 

request additional information from the 

Applicant regarding Assurances and 

Certifications or other information about 

the ability of the Applicant to effectively 

perform under the Allocation 

Agreement. The NMTC Allocation 

recommendation panel or selecting 

official(s) reserve(s) the right to consult 

with and take into consideration the 

views of the appropriate Federal 

banking and other regulatory agencies. 

In the case of Applicants (or Affiliates 

of Applicants) that are also Small 

Business Investment Companies, 

Specialized Small Business Investment 

Companies or New Markets Venture 

Capital Companies, the CDFI Fund 

reserves the right to consult with and 

take into consideration the views of the 

Small Business Administration. 

The CDFI Fund reserves the right to 

conduct additional due diligence on all 

Applicants, as determined reasonable 

and appropriate by the CDFI Fund, in its 

sole discretion, related to the Applicant, 

Affiliates, the Applicant’s Controlling 

Entity and the officers, directors, 

owners, partners and key employees of 

each. This includes the right to consult 

with the IRS if the Applicant (or the 

Controlling Entity, or Affiliates) has 

previously been awarded an NMTC 

Allocation. 

F. Allocation Announcement: Each 

Applicant will be informed of the CDFI 

Fund’s award decision through an 

electronic notification whether selected 

for an allocation or not selected for an 

allocation, which may be for reasons of 

Application incompleteness, 

ineligibility, or substantive issues. 

Eligible Applicants that are not selected 

for an allocation based on substantive 

issues may receive information on the 

score ranges of Applications that are 

selected for an allocation. This 

information will be provided in a format 

and within a timeframe to be 

determined by the CDFI Fund, based on 

available resources. 

The CDFI Fund further reserves the 

right to change its eligibility and 

evaluation criteria and procedures, if 

the CDFI Fund deems it appropriate. If 

said changes materially affect the CDFI 

Fund’s award decisions, the CDFI Fund 

will provide information regarding the 

changes through the CDFI Fund’s 

website. 

The CDFI Fund reserves the right, in 

its sole discretion, to rescind an 

allocation made under this NOAA, 

should an Allocatee or Affiliate be 

identified as ineligible due to pending 

or delinquent debt to the Federal 

government in the Do Not Pay database. 

There is no right to appeal the CDFI 

Fund’s NMTC Allocation decisions. The 

CDFI Fund’s NMTC Allocation 

decisions are final. 

VI. Award Administration Information 

A. Allocation Award Compliance. 

1. Failure to meet reporting 

requirements: If an Allocatee, or an 

Affiliate of an Allocatee, is a prior CDFI 

Fund award recipient or Allocatee 

under any CDFI Fund program and is 

not current on the reporting 

requirements set forth in the previously 

executed assistance, allocation, or 

award agreement(s) or any other 

agreement under any CDFI Fund 

program as of the date the CDFI Fund 

provides notification of an NMTC 

Allocation award or thereafter, the CDFI 

Fund reserves the right, in its sole 

discretion, to reject the Application, 

delay entering into an Allocation 

Agreement, and/or impose limitations 

on an Allocatee’s ability to issue QEIs to 

investors until said prior award 

recipient or Allocatee is current on the 

reporting requirements in the previously 

executed assistance, allocation, or 

award agreement(s) or any other 

agreement under any CDFI Fund 

program. Please note that the automated 

systems the CDFI Fund uses for receipt 

of reports submitted electronically 

typically acknowledges only a report’s 

receipt; such an acknowledgment does 

not warrant that the report received was 

complete and therefore met reporting 

requirements. 

2. Pending determination of 

noncompliance or default: If an 

Allocatee or an Affiliate of an Allocatee 

is a prior award recipient or Allocatee 

under any CDFI Fund program and if: (i) 

it has demonstrated noncompliance 

with a previous assistance or award 

agreement or a default under an 

Allocation Agreement or any other 

agreement under any CDFI Fund 

program; and (ii) the entity has been 

given a timeframe to cure the 

noncompliance or default, the CDFI 

Fund reserves the right, in its sole 

discretion, to delay entering into an 

Allocation Agreement and/or to impose 

limitations on the Allocatee’s ability to 

issue QEIs to investors, during the time 

period given for the entity to cure the 

noncompliance or default and until 

such time as the CDFI Fund makes a 

final determination that the entity is in 

noncompliance or default, and 

determination of remedies related to the 

defaulted Allocation Agreement, if 

applicable, in the sole determination of 

the CDFI Fund. If the prior award 

recipient, Allocatee or Affiliate of the 

Allocatee in question is unable to 

satisfactorily resolve the issues of 

noncompliance or default, in the sole 

determination of the CDFI Fund, the 

CDFI Fund reserves the right, in its sole 

discretion, to terminate and rescind the 

award notification made under this 

NOAA. 

3. Determination of noncompliance or 

default status: If after the Application 

deadline of this NOAA and prior to 

entering into an Allocation Agreement 

through this NOAA, the CDFI Fund has 

made a final determination that an 

Allocatee or an Affiliate of the Allocatee 

that is a prior CDFI Fund award 

recipient or Allocatee under any CDFI 

Fund program is (i) noncompliant with 

a previously executed assistance or 

award agreement, or is in default of a 

previously executed Allocation 

Agreement or any other agreement 

under any CDFI Fund program; and (ii) 

the CDFI Fund has provided written 

notification that the Recipient is 

ineligible to apply for or receive any 

future awards or allocations for a 

specified timeframe or, regardless of 

whether a sanction or remedy is 

imposed, the default on a prior 

Allocation Agreement of the Applicant 

or Affiliate occurs during the time 

period beginning 12 months prior to the 

Application deadline and ending with 

the execution of the CY 2024–2025 

Allocation Agreement, the CDFI Fund 

reserves the right, in its sole discretion, 

to delay entering into an Allocation 

Agreement and/or to impose limitations 

on the Allocatee’s ability to issue QEIs 

to investors, or to terminate and rescind 

the NMTC Allocation made under this 

NOAA. 


lotter on DSK11XQN23PROD with NOTICES1
92292 Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 

B. Allocation Agreement: Each 

Allocatee (including their Subsidiary 

Allocatees) must enter into an 

Allocation Agreement with the CDFI 

Fund. The Allocation Agreement will 

set forth certain required terms and 

conditions of the NMTC Allocation 

which may include, but are not limited 

to, the following: (i) the amount of the 

awarded NMTC Allocation; (ii) the 

approved uses of the awarded NMTC 

Allocation (e.g., loans to or equity 

investments in QALICBs, loans to or 

equity investments in other CDEs); (iii) 

the approved service area(s) in which 

the proceeds of QEIs may be used, 

including the dollar amount of QLICIs 

that must be invested in NonMetropolitan counties; (iv) 

commitments to specific innovative 

investments discussed by the Allocatee 

in its Allocation Application; (v) the 

time period by which the Allocatee may 

obtain QEIs from investors; (vi) 

reporting requirements for the 

Allocatee; and (vii) a requirement to 

maintain certification as a CDE 

throughout the term of the Allocation 

Agreement. If an Allocatee represented 

in its NMTC Allocation Application that 

it intends to invest substantially all of 

the proceeds from its investors in 

businesses in which persons unrelated 

to the Allocatee hold a majority equity 

interest, the Allocation Agreement will 

contain a covenant to that effect. 

In addition to entering into an 

Allocation Agreement, each Allocatee 

must furnish to the CDFI Fund an 

opinion from its legal counsel or a 

similar certification, the content of 

which will be further specified in the 

Allocation Agreement, to include, 

among other matters, an opinion that an 

Allocatee (and its Subsidiary Allocatees, 

if any): (i) is duly formed and in good 

standing in the jurisdiction in which it 

was formed and the jurisdiction(s) in 

which it operates; (ii) has the authority 

to enter into the Allocation Agreement 

and undertake the activities that are 

specified therein; (iii) has no pending or 

threatened litigation that would 

materially affect its ability to enter into 

and carry out the activities specified in 

the Allocation Agreement; and (iv) is 

not in default of its articles of 

incorporation, bylaws or other 

organizational documents, or any 

agreements with the Federal 

government. 

If an Allocatee identifies Subsidiary 

Allocatees, the CDFI Fund reserves the 

right to require an Allocatee to provide 

supporting documentation evidencing 

that it Controls such entities prior to 

entering into an Allocation Agreement 

with the Allocatee and its Subsidiary 

Allocatees. The CDFI Fund reserves the 

right, in its sole discretion, to rescind its 

NMTC Allocation award if the Allocatee 

fails to return the Allocation Agreement, 

signed by the authorized representative 

of the Allocatee, and/or provide the 

CDFI Fund with any other requested 

documentation, including an approved 

legal opinion, within the deadlines set 

by the CDFI Fund. 

C. Fees: The CDFI Fund reserves the 

right, in accordance with applicable 

Federal law and, if authorized, to charge 

allocation reservation and/or 

compliance monitoring fees to all 

entities receiving NMTC Allocations. 

Prior to imposing any such fee, the CDFI 

Fund will publish additional 

information concerning the nature and 

amount of the fee. 

D. Reporting: The CDFI Fund will 

collect information, on at least an 

annual basis from all Allocatees and/or 

CDEs that are recipients of QLICIs, 

including such audited financial 

statements and opinions of counsel as 

the CDFI Fund deems necessary or 

desirable, in its sole discretion. The 

CDFI Fund will require the Allocatee to 

retain information as the CDFI Fund 

deems necessary or desirable and shall 

provide such information to the CDFI 

Fund when requested to monitor each 

Allocatee’s compliance with the 

provisions of its Allocation Agreement 

and to assess the impact of the NMTC 

Program in Low-Income Communities. 

The CDFI Fund may also provide such 

information to the IRS in a manner 

consistent with IRC § 6103 so that the 

IRS may determine, among other things, 

whether the Allocatee has used 

substantially all of the proceeds of each 

QEI raised through its NMTC Allocation 

to make QLICIs. The Allocation 

Agreement shall further describe the 

Allocatee’s reporting requirements. 

The CDFI Fund reserves the right, in 

its sole discretion, to modify these 

reporting requirements if it determines 

it to be appropriate and necessary; 

however, such reporting requirements 

will be modified only after due notice 

to Allocatees. 

VII. Agency Contacts 

The CDFI Fund will provide 

programmatic and information 

technology support related to the 

Allocation Application Mondays 

through Fridays, between the hours of 

9:00 a.m. and 5:00 p.m. ET through the 

last day to contact the CDFI Fund in 

Table 1. The CDFI Fund will not 

respond to phone calls emails, or 

Service Requests in AMIS concerning 

the Application that are received after 

the last day to contact the CDFI Fund. 

The CDFI Fund will respond to such 

phone calls, emails, or Service Requests 

in AMIS after the Allocation 

Application deadline in Table 1. 

Applications and other information 

regarding the CDFI Fund and its 

programs may be obtained from the 

CDFI Fund’s website at https://

www.cdfifund.gov. The CDFI Fund will 

post on its website responses to 

questions of general applicability 

regarding the NMTC Program. 

A. Information technology support: 

Technical support can be obtained by 

calling (202) 653–0422 or by submitting 

a Service Request in AMIS. People who 

have visual or mobility impairments 

that prevent them from accessing the 

Low-Income Community maps using the 

CDFI Fund’s website should call (202) 

653–0422 for assistance. These are not 

toll free numbers. 

B. Programmatic support: If you have 

any questions about the programmatic 

requirements of this NOAA, contact the 

CDFI Fund’s NMTC Program Manager 

by submitting a Service Request in 

AMIS; or by telephone at (202) 653– 

0421. These are not toll free numbers. 

C. Administrative support: If you have 

any questions regarding the 

administrative requirements of this 

NOAA, contact the CDFI Fund’s NMTC 

Program Manager by submitting a 

Service Request in AMIS, or by 

telephone at (202) 653–0421. These are 

not toll free numbers. 

D. IRS support: For questions 

regarding the tax aspects of the NMTC 

Program, contact James Holmes and 

Dillon Taylor, Office of the Chief 

Counsel (Passthroughs and Special 

Industries), IRS, by telephone at (202) 

317–4137, or by facsimile at (855) 591– 

7867. These are not toll free numbers. 

Applicants wishing for a formal ruling 

request should see IRS Internal Revenue 

Bulletin 2020–1, issued January 4, 2020. 

VIII. Information Sessions 

In connection with this NOAA, the 

CDFI Fund may conduct one or more 

information sessions that will be 

produced in Washington, DC and 

broadcast over the internet via 

webcasting as well as telephone 

conference calls. For further information 

on these upcoming information 

sessions, please visit the CDFI Fund’s 

website at https://www.cdfifund.gov. 

Authority: 26 U.S.C. 45D; 31 U.S.C. 

321; 26 CFR 1.45D–1. 

Pravina Raghavan, 

Director, Community Development Financial 

Institutions Fund. 

[FR Doc. 2024–27029 Filed 11–20–24; 8:45 am] 

BILLING CODE 4810–05–P 


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