Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 4077 

Key to ‘‘Reason for Delay’’ 

1. Awaiting additional information 

from applicant. 

2. Extensive public comment under 

review. 

3. Application is technically complex 

and is of significant impact or 

precedent-setting and requires extensive 

analysis. 

4. Staff review delayed by other 

priority issues or volume of special 

permit applications. 

Meaning of Application Number 

Suffixes 

N—New application. 

M—Modification request. 

PM—Party to application with 

modification request. 

Issued in Washington, DC, on January 13, 

2009. 

Delmer F. Billings, 

Director, Office of Hazardous Materials, 

Special Permits and Approvals. 

Application number Applicant Reason 

for delay 

Estimated date 

of completion 

Modification to Special Permits 

14167–M ........................................................................... Trinityrail, Dallas, TX ........................................................ 4 02–28–2009 

8723–M ............................................................................. Alaska Pacific Power Company, Anchorage, AK ............. 1 02–28–2009 

New Special Permit Applications 

14668–N ........................................................................... Lincoln Composites, Lincoln, NE ..................................... 1 02–28–2009 

14689–N ........................................................................... Trinity Industries, Inc., Dallas, TX .................................... 2, 3 02–28–2009 

14733–N ........................................................................... GTM Technologies, Inc., San Francisco, CA ................... 1, 3 03–31–2009 

[FR Doc. E9–1010 Filed 1–21–09; 8:45 am] 

BILLING CODE 4910–60–M 

DEPARTMENT OF THE TREASURY 

Community Development Financial 

Institutions Fund 

New Markets Tax Credit Program 

Funding Opportunity Title: Notice of 

Allocation Availability (NOAA) Inviting 

Applications for the CY 2009 Allocation 

Round of the New Markets Tax Credit 

Program. 

Announcement Type: Initial 

announcement of tax credit allocation 

availability. 

Dates: Electronic applications must be 

received by 5 p.m. ET on April 8, 2009. 

Applications sent by mail, facsimile or 

other form will not be accepted. The 

Community Development Financial 

Institutions Fund (the Fund) will not 

accept applications in paper form, other 

than the assigned signature page and 

certain paper attachments (see Section 

IV.D. of this NOAA for more details). 

Applications must meet all eligibility 

and other requirements and deadlines, 

as applicable, set forth in this NOAA. 

Allocation applicants that are not yet 

certified as Community Development 

Entities (CDEs) must submit an 

application for certification as a CDE 

that is postmarked on or before March 

3, 2009 (see Section III of this NOAA for 

more details). 

Executive Summary: This NOAA is 

issued in connection with the calendar 

year 2009 tax credit allocation round of 

the New Markets Tax Credit (NMTC) 

Program, as authorized by Title I, 

subtitle C, section 121 of the 

Community Renewal Tax Relief Act of 

2000 (Pub. L. 106–554) and amended by 

section 221 of the American Jobs 

Creation Act of 2004 (Pub. L. 108–357), 

section 101 of the Gulf Opportunity 

Zone Act of 2005 (Pub. L. 108–357), and 

Division A, section 102 of the Tax Relief 

and Health Care Act of 2006 (Pub. L. 

109–432) (the Act). Through the NMTC 

Program, the Fund provides authority to 

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 Fund announces the 

availability of $3.5 billion of NMTC 

authority authorized by the Act. 

In this NOAA, the Fund specifically 

addresses how an entity 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. 

I. Allocation Availability Description 

A. Programmatic changes: 

1. Allocation Amounts. As described 

in Section IIA, the Fund anticipates that 

it will provide allocation awards of not 

more than $100 million per applicant. 

This current $100 million cap is a 

reduction from the 2008 round cap of 

$125 million. In the 2008 allocation 

round, 70 entities received allocations 

totaling $3.5 billion. The Fund reduced 

the cap this year to better ensure a wider 

distribution of awards to the most 

highly qualified applicants. 

2. Prior QEI Issuance Requirements. 

In order to be eligible to apply for 

NMTC allocations in the 2009 round, as 

described in Section III.A.2(a), 

applicants that have received NMTC 

allocation awards in previous rounds 

are required to meet minimum Qualified 

Equity Investment (QEI) issuance 

thresholds with respect to their prioryear allocations. The CDFI Fund has 

adjusted some of these QEI 

requirements, in response to credit 

market conditions at the time of the 

publication of this NOAA. 

B. Program guidance and regulations: 

This NOAA provides guidance for the 

application and allocation of NMTCs for 

the seventh round of the NMTC Program 

and should be read in conjunction with: 

(i) Guidance published by the Fund on 

how an entity may apply to become 

certified as a CDE (66 FR 65806, 

December 20, 2001); (ii) the final 

regulations issued by the Internal 

Revenue Service (26 CFR 1.45D–1, 

published on December 28, 2004) and 

related guidance, notices and other 

publications; and (iii) the application 

and related materials for this seventh 

NMTC Program allocation round. All 

such materials may be found on the 

Fund’s Web site at http:// 

www.cdfifund.gov. 

The Fund encourages applicants to 

review these documents. Capitalized 

terms used, but not defined, in this 

NOAA shall have the respective 

meanings assigned to them in the 

allocation application, IRC § 45D or the 

IRS regulations. 

II. Allocation Information 

A. Allocation amounts: Pursuant to 

the Act, the Fund expects that it may 

allocate to CDEs the authority to issue 

to their investors up to the aggregate 

amount of $3.5 billion in equity as to 

which NMTCs may be claimed, as 


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4078 Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 

permitted under IRC § 45D(f)(1)(D). 

Pursuant to this NOAA, the Fund 

anticipates that it will not issue more 

than $100 million in tax credit 

allocation authority per applicant. The 

Fund, in its sole discretion, reserves the 

right to allocate amounts in excess of or 

less than the anticipated maximum 

allocation amount should the Fund 

deem it appropriate. In order to receive 

an allocation in excess of the $100 

million cap, an applicant, at a 

minimum, will need to demonstrate 

that: (i) No part of its strategy can be 

successfully implemented without an 

allocation in excess of the applicable 

cap; or (ii) its strategy will produce 

extraordinary community impact. The 

Fund reserves the right to allocate tax 

credit authority to any, all, or none of 

the entities that submit an application 

in response to this NOAA, and in any 

amount it deems appropriate. 

B. Types of awards: NMTC Program 

awards are made in the form of tax 

credit authority. 

C. Notice of Allocation and Allocation 

Agreement: Each Allocatee under this 

NOAA must sign a Notice of Allocation 

and an Allocation Agreement before the 

NMTC Allocation is effective. The 

Notice of Allocation and the Allocation 

Agreement contain the terms and 

conditions of the allocation. For further 

information, see Section VI of this 

NOAA. 

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 

$3.5 billion in general NMTC allocation 

authority. 

1. CDE certification: For purposes of 

this NOAA, the Fund will not consider 

an application for an allocation of 

NMTCs unless: (a) The applicant is 

certified as a CDE at the time the Fund 

receives its NMTC Program allocation 

application; or (b) the applicant submits 

an application for certification as a CDE 

that is postmarked on or before March 

3, 2009. Applicants for certification may 

obtain a CDE certification application 

through the Fund’s Web site at http:// 

www.cdfifund.gov. Applications for CDE 

certification must be submitted as 

instructed in the application form. An 

applicant that is a community 

development financial institution 

(CDFI) or a specialized small business 

investment company (SSBIC) does not 

need to submit a CDE certification 

application; however, it must register as 

a CDE on the Fund’s Web site on or 

before 5 p.m. ET on March 3, 2009. 

The Fund will not provide allocations 

of NMTCs to applicants that are not 

certified as CDEs. See Section IV.D.1.(c) 

of this NOAA for further requirements 

relating to postmarks. 

If an applicant that has already been 

certified as a CDE wishes to change its 

designated CDE service area, it must 

submit its request for such a change to 

the Fund; and the request must be 

received by the Fund by 5 p.m. ET on 

April 8, 2009. The CDE service area 

change request must be sent from the 

applicant’s authorized representative 

and include the applicable CDE control 

number, the revised service area 

designation, and an updated 

accountability chart that reflects 

representation from Low-Income 

Communities in the revised service area. 

The service area change request must be 

sent by e-mail to cdfihelp@cdfi.treas.gov 

or by facsimile to (202) 622–7754. 

2. Prior awardees or Allocatees: 

Applicants must be aware that success 

in a prior round of any of the Fund’s 

programs is not indicative of success 

under this NOAA. For purposes of this 

section, the Fund will consider an 

Affiliate to be any entity that meets the 

definition of Affiliate as defined in the 

NMTC allocation application, or any 

entity otherwise identified as an 

Affiliate by the applicant in its NMTC 

allocation application materials. Prior 

awardees are eligible to apply under this 

NOAA, except as follows: 

(a) Prior Allocatees and Qualified 

Equity Investment (QEI) issuance 

requirements: The following describes 

the QEI issuance requirements 

applicable to prior Allocatees, including 

those Allocatees that received 

allocations pursuant to special 

allocation authority under the Gulf 

Opportunity Zone Act of 2005 (‘‘GO 

Zone Allocatees’’). 

A prior Allocatee in the first round of 

the NMTC Program (CY 2001–2002) is 

not eligible to receive a NMTC 

Allocation pursuant to this NOAA 

unless the Allocatee is able to 

affirmatively demonstrate that, as of 

11:59 p.m. ET on June 17, 2009, it has 

issued and received funds in-hand (the 

term ‘‘funds in-hand’’ does not include 

committed funding) from its investors 

for 95 percent of its QEIs relating to its 

CY 2001–2002 NMTC Allocation. 

A prior Allocatee in the second round 

of the NMTC Program (CY 2003–2004) 

is not eligible to receive a NMTC 

Allocation pursuant to this NOAA 

unless the Allocatee is able to 

affirmatively demonstrate that, as of 

11:59 p.m. ET on June 17, 2009, it has: 

(i) Issued and received funds in-hand 

from its investors for at least 80 percent 

of its QEIs relating to its CY 2003–2004 

NMTC Allocation; or (ii) issued and 

received funds in-hand from its 

investors for at least 60 percent of its 

QEIs and that 100 percent of its total CY 

2003–2004 NMTC Allocation has been 

exchanged for funds in-hand from 

investors, or has been committed by its 

investors. 

A prior Allocatee in the third round 

of the NMTC Program (CY 2005) is not 

eligible to receive a NMTC Allocation 

pursuant to this NOAA unless the 

Allocatee is able to affirmatively 

demonstrate that, as of 11:59 p.m. ET on 

June 17, 2009, it has: (i) Issued and 

received funds in-hand from its 

investors for at least 60 percent of its 

QEIs relating to its CY 2005 NMTC 

Allocation; or (ii) issued and received 

funds in-hand from its investors for at 

least 50 percent of its QEIs and that at 

least 80 percent of its total CY 2005 

NMTC Allocation has been exchanged 

for funds in-hand from investors, or has 

been committed by its investors. 

A prior Allocatee in the fourth round 

of the NMTC Program (CY 2006) is not 

eligible to receive a NMTC Allocation 

pursuant to this NOAA unless the 

Allocatee is able to affirmatively 

demonstrate that, as of 11:59 p.m. ET on 

June 17, 2009, it has: (i) Issued and 

received funds in-hand from its 

investors for at least 50 percent of its 

QEIs relating to its CY 2006 NMTC 

Allocation; or (ii) issued and received 

funds in-hand from its investors for at 

least 40 percent of its QEIs and that at 

least 80 percent of its total CY 2006 

NMTC Allocation has been exchanged 

for funds in-hand from investors, or has 

been committed by its investors. 

A prior Allocatee (with the exception 

of a GO Zone Allocatee) in the fifth 

round of the NMTC Program (CY 2007) 

is not eligible to receive a NMTC 

Allocation pursuant to this NOAA 

unless the Allocatee is able to 

affirmatively demonstrate that, as of 

11:59 p.m. ET on June 17, 2009, it has: 

(i) Issued and received funds in-hand 

from its investors for at least 50 percent 

of its QEIs relating to its CY 2006 NMTC 

Allocation; or (ii) issued and received 

funds in-hand from its investors for at 

least 20 percent of its QEIs and that at 

least 60 percent of its total CY 2007 

NMTC Allocation has been exchanged 

for funds in-hand from investors, or has 

been committed by its investors. 

A prior GO Zone Allocatee in the fifth 

round is not eligible to receive a NMTC 

Allocation pursuant to this NOAA 

unless the Allocatee is able to 

affirmatively demonstrate that, as of 

11:59 p.m. ET on June 17, 2009, it has: 

(i) Issued and received funds in-hand 


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Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 4079 

from its investors for at least 20 percent 

of its QEIs relating to its CY 2007 NMTC 

Allocation. 

A prior Allocatee (with the exception 

of a Rural CDE Allocatee) in the sixth 

round of the NMTC Program (CY 2008) 

is not eligible to receive a NMTC 

Allocation pursuant to this NOAA 

unless the Allocatee is able to 

affirmatively demonstrate that, as of 

11:59 p.m. ET on June 17, 2009, it has: 

(i) Issued and received funds in-hand 

from its investors for at least 30 percent 

of its QEIs relating to its CY 2008 NMTC 

Allocation; or (ii) issued and received 

funds in-hand from its investors for at 

least 10 percent of its QEIs and that at 

least 30 percent of its total CY 2008 

NMTC Allocation has been exchanged 

for funds in-hand from investors, or has 

been committed by its investors. A 

Rural CDE is not required to meet the 

above QEI issuance and commitment 

thresholds with regard to its 2008 

NMTC allocation award. 

In addition to the requirements 

described above, an entity is not eligible 

to receive a NMTC Allocation pursuant 

to this NOAA if an Affiliate of the 

applicant is a prior Allocatee and has 

not met the requirements for the 

issuance and/or commitment of QEIs as 

set forth above for the Allocatees in the 

prior allocation rounds of the NMTC 

Program. 

Notwithstanding the above, if an 

applicant has received multiple NMTC 

allocation awards between the second 

round (CY 2003–2004) and the sixth 

round (CY 2008), the applicant shall be 

deemed to be eligible to apply for a 

NMTC Allocation pursuant to this 

NOAA if the applicant is able to 

affirmatively demonstrate that, as of 

11:59 p.m. ET on June 17, 2009, it has 

issued and received funds in-hand from 

its investors for at least 60 percent of its 

QEIs relating to its cumulative 

allocation amounts from these prior 

NMTC Program rounds. Applicants that 

have received GO Zone allocations 

under the fifth round (CY 2007) may 

choose to exclude such allocations from 

this cumulative calculation, provided 

that the Allocatee has issued and 

received funds in-hand from its 

investors for at least 20 percent of its 

QEIs relating to its CY 2007 GO Zone 

allocation. Rural CDEs that received 

allocations under the sixth round (CY 

2008) may choose to exclude such 

allocations from this cumulative 

calculation. 

For purposes of this section of the 

NOAA, the Fund will only recognize as 

‘‘issued’’ those QEIs that have been 

finalized in the Fund’s Allocation 

Tracking System (ATS) by the deadlines 

specified above. Allocatees and their 

Subsidiary transferees, if any, are 

advised to access ATS to record each 

QEI that they issue to an investor in 

exchange for funds in-hand. For 

purposes of this section of the NOAA, 

‘‘committed’’ QEIs are only those Equity 

Investments that are evidenced by a 

written, signed document in which an 

investor: (i) Commits to make an 

investment in the Allocatee in a 

specified amount and on specified 

terms; (ii) has made an initial 

disbursement of the investment 

proceeds to the Allocatee, and such 

initial disbursement has been recorded 

in ATS as a QEI; (iii) commits to 

disburse the remaining investment 

proceeds to the Allocatee based on 

specified amounts and payment dates; 

and (iv) commits to make the final 

disbursement to the Allocatee no later 

than June 17, 2011. 

The applicant will be required, upon 

notification from the Fund, to submit 

adequate documentation to substantiate 

the required issuances of and 

commitments for QEIs. 

Applicants should be aware that these 

QEI issuance requirements represent the 

minimum threshold requirements that 

must be met in order to submit an 

application for assistance under this 

NOAA. As stated in Section V.B.2 of 

this NOAA, the Fund reserves the right 

to reject an application and/or adjust 

award amounts as appropriate based on 

information obtained during the review 

process—including an applicant’s track 

record of raising QEIs and/or deploying 

its QLICIs. 

Prior Allocatees that require any 

action by the Fund (e.g., 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 their requests by no later than 

April 3, 2009 in order to guarantee that 

the Fund completes all necessary 

approvals prior to June 17, 2009. 

Applicants for certification may obtain 

a CDE certification application through 

the Fund’s Web site at http:// 

www.cdfifund.gov. Applications for CDE 

certification must be submitted as 

instructed in the application form. 

(b) Failure to meet reporting 

requirements: The Fund will not 

consider an application submitted by an 

applicant if the applicant or any of its 

Affiliates is a prior Fund awardee or 

Allocatee under any Fund program and 

is not current on the reporting 

requirements set forth in a previously 

executed assistance, allocation or award 

agreement(s), as of the application 

deadline of this NOAA. Please note that 

the Fund only acknowledges the receipt 

of reports that are complete. As such, 

incomplete reports or reports that are 

deficient of required elements will not 

be recognized as having been received. 

(c) Pending resolution of 

noncompliance: If an applicant is a 

prior awardee or Allocatee under any 

Fund program and if: (i) it has 

submitted complete and timely reports 

to the Fund that demonstrate 

noncompliance with a previous 

assistance, award or Allocation 

Agreement; and (ii) the Fund has yet to 

make a final determination as to 

whether the entity is in default of its 

previous assistance, award or Allocation 

Agreement, the Fund will consider the 

applicant’s application under this 

NOAA pending full resolution of the 

noncompliance, in the sole 

determination of the Fund. Further, if 

an Affiliate of the applicant is a prior 

Fund awardee or Allocatee and if such 

entity: (i) Has submitted complete and 

timely reports to the Fund that 

demonstrate noncompliance with a 

previous assistance, award or Allocation 

Agreement; and (ii) the Fund has yet to 

make a final determination as to 

whether the entity is in default of its 

previous assistance, award or Allocation 

Agreement, the Fund will consider the 

applicant’s application under this 

NOAA pending full resolution of the 

noncompliance, in the sole 

determination of the Fund. 

(d) Default status: The Fund will not 

consider an application submitted by an 

applicant that is a prior Fund awardee 

or Allocatee under any Fund program if, 

as of the application deadline of this 

NOAA, the Fund has made a final 

determination that such applicant is in 

default of a previously executed 

assistance, allocation or award 

agreement(s) and the Fund has provided 

written notification of such 

determination to such applicant. 

Further, an entity is not eligible to apply 

for an allocation pursuant to this NOAA 

if, as of the application deadline of this 

NOAA, the Fund has made a final 

determination that an Affiliate of the 

applicant is a prior Fund awardee or 

Allocatee under any Fund program and 

has been determined by the Fund to be 

in default of a previously executed 

assistance, allocation or award 

agreement(s) and the Fund has provided 

written notification of such 

determination. Such entities will be 

ineligible to apply for an award 

pursuant to this NOAA so long as the 

Applicant’s, or its Affiliate’s, prior 

award or allocation remains in default 

status or such other time period as 

specified by the Fund in writing. 

(e) Termination in default: The Fund 

will not consider an application 

submitted by an applicant that is a prior 


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4080 Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 

Fund awardee or Allocatee under any 

Fund program if: (i) Within the 12- 

month period prior to the application 

deadline of this NOAA, the Fund has 

made a final determination that such 

applicant’s prior award or allocation 

terminated in default of a previously 

executed assistance, allocation or award 

agreement(s); (ii) the Fund has provided 

written notification of such 

determination to such applicant; and 

(iii) the final reporting period end date 

for the applicable terminated assistance, 

allocation or award agreement(s) falls 

within the 12-month period prior to the 

application deadline of this NOFA. 

Further, an entity is not eligible to 

apply for an allocation pursuant to this 

NOAA if: (i) Within the 12-month 

period prior to the application deadline 

of this NOAA, the Fund has made a 

final determination that an Affiliate of 

the applicant is a prior Fund awardee or 

Allocatee under any Fund program 

whose award or allocation terminated in 

default of a previously executed 

assistance, allocation or award 

agreement(s); (ii) the Fund has provided 

written notification of such 

determination to the defaulting entity; 

and (iii) the final reporting period end 

date for the applicable terminated 

assistance, allocation or award 

agreement(s) falls within the 12-month 

period prior to the application deadline 

of this NOAA. 

(f) Undisbursed award funds: The 

Fund will not consider an application 

submitted by an Applicant that is a 

prior Fund Awardee under any Fund 

program if the Applicant has a balance 

of undisbursed award funds (defined 

below) under said prior award(s), as of 

the applicable application deadline of 

this NOAA. 

Furthermore, an entity is not eligible to 

apply for an award pursuant to this 

NOAA if an Affiliate of the applicant is 

a prior Fund Awardee under any Fund 

program, and has a balance of 

undisbursed award funds under said 

prior award(s), as of the applicable 

application deadline of this NOAA. In a 

case where an Affiliate of the applicant 

is a prior Fund Awardee under any 

Fund program and has a balance of 

undisbursed award funds under said 

prior award(s) as of the applicable 

application deadline of this NOAA, the 

Fund will include the combined awards 

of the Applicant and such Affiliated 

entities when calculating the amount of 

undisbursed award funds. 

For purposes of the calculation of 

undisbursed award funds for the BEA 

Program, only awards made to the 

Applicant (and any Affiliates) three to 

five calendar years prior to the end of 

the calendar year of the application 

deadline of this NOAA are included 

(‘‘includable BEA awards’’). Thus, for 

purposes of this NOAA, undisbursed 

BEA Program award funds are the 

amount of FYs 2004, 2005 and 2006 

awards that remain undisbursed as of 

the application deadline of this NOAA. 

For purposes of the calculation of 

undisbursed award funds for the CDFI 

Program and the Native Initiatives 

Funding Programs, only awards made to 

the Applicant (and any entity that 

Controls the Applicant, is Controlled by 

the Applicant or shares common 

management officials with the 

Applicant, as determined by the Fund) 

two to five calendar years prior to the 

end of the calendar year of the 

application deadline of this NOAA are 

included (‘‘includable CDFI/NI 

awards’’). Thus, for purposes of this 

NOAA, undisbursed CDFI Program and 

Native Initiative (NI) awards are the 

amount of FYs 2004, 2005, 2006 and 

2007 awards that remain undisbursed as 

of the application deadline of this 

NOAA. 

To calculate total includable BEA/ 

CDFI/NI awards: amounts that are 

undisbursed as of the application 

deadline of this NOAA cannot exceed 

five percent (5%) of the total includable 

awards. Please refer to an example of 

this calculation in the 2009 Allocation 

Application Q&A document, available 

on the Fund’s Web site. 

The ‘‘undisbursed award funds’’ 

calculation does not include: (i) Tax 

credit allocation authority made 

available through the New Market Tax 

Credit (NMTC) Program; (ii) any award 

funds for which the Fund received a full 

and complete disbursement request 

from the Awardee by the applicable 

application deadline of this NOAA; (iii) 

any award funds for an award that has 

been terminated, in writing, by the Fund 

or deobligated by the Fund; or (iv) any 

award funds for an award that does not 

have a fully executed assistance or 

award agreement. The Fund strongly 

encourages Applicants requesting 

disbursements of ‘‘undisbursed funds’’ 

from prior awards to provide the Fund 

with a complete disbursement request at 

least 30 business days prior to the 

application deadline of this NOAA. 

(g) Contact the Fund: Accordingly, 

Applicants that are prior awardees and/ 

or Allocatees under any other Fund 

program are advised to: (i) Comply with 

the requirements specified in assistance, 

allocation and/or award agreement(s), 

and (ii) contact the Fund to ensure that 

all necessary actions are underway for 

the disbursement of any outstanding 

balance of a prior award(s). All 

outstanding reports and compliance 

questions should be directed to the 

Compliance Manager by e-mail at 

cme@cdfi.treas.gov and all 

disbursement questions should be 

directed to the Fund’s Financial 

Manager. Requests submitted less than 

thirty calendar days prior to the 

application deadline may not receive a 

response before the application 

deadline. 

Both the Compliance Manager and the 

Financial Manager may be reached by 

telephone at (202) 622–8226; by 

facsimile at (202) 622–6453; or by mail 

to CDFI Fund, 601 13th Street, NW., 

Suite 200 South, Washington, DC 20005. 

The Fund will respond to Applicants’ 

reporting, compliance or disbursement 

questions between the hours of 9 a.m. 

and 5 p.m. ET, starting the date of 

publication of this NOAA through April 

6, 2009 (one day before the application 

deadline). The Fund will not respond to 

Applicants’ reporting, compliance or 

disbursement phone calls or e-mail 

inquiries that are received after 5 p.m. 

ET on April 6, 2009 until after the 

funding application deadline of April 8, 

2009. 

3. Entities that propose to transfer 

NMTCs to Subsidiaries: Both for-profit 

and non-profit CDEs may apply to the 

Fund for allocations of NMTCs, but only 

a for-profit CDE is permitted to provide 

NMTCs to its investors. A non-profit 

applicant wishing to apply for a NMTC 

Allocation must demonstrate, prior to 

entering into an Allocation Agreement 

with the Fund, that: (i) It controls one 

or more Subsidiaries that are for-profit 

entities; and (ii) it intends to transfer the 

full amount of any NMTC Allocation it 

receives to said Subsidiary. 

An applicant wishing to transfer all or 

a portion of its NMTC Allocation to a 

Subsidiary is not required to create the 

Subsidiary prior to submitting a NMTC 

allocation application to the Fund. 

However, the Subsidiary entities must 

be certified as CDEs by the Fund, and 

enjoined as parties to the Allocation 

Agreement at closing or by amendment 

to the Allocation Agreement after 

closing. Before the NMTC Allocation 

transfer may occur it must be preapproved by the Fund, in its sole 

discretion. 

The Fund strongly encourages a nonprofit applicant to submit a CDE 

certification application to the Fund on 

behalf of the Subsidiary within 30 days 

after the non-profit applicant receives a 

Notice of Allocation from the Fund; as 

such Subsidiary must be certified as a 

CDE prior to entering into an Allocation 

Agreement with the Fund. A non-profit 

applicant that fails to certify one or 

more for-profit subsidiaries within 30 

days of receiving a Notice of Allocation 


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from the Fund is subject to the Fund 

rescinding the award. 

4. Entities that submit applications 

together with Affiliates; applications 

from common enterprises: (a) As part of 

the allocation application review 

process, the Fund considers whether 

applicants are Affiliates, as such term is 

defined in the allocation application. If 

an applicant and its Affiliates wish to 

submit allocation applications, they 

must do so collectively, in one 

application; an applicant and its 

Affiliates may not submit separate 

allocation applications. If Affiliated 

entities submit multiple applications, 

the Fund reserves the right either to 

reject all such applications received or 

to select a single application as the only 

application considered for an allocation. 

For purposes of this NOAA, in 

addition to assessing whether applicants 

meet the definition of the term 

‘‘Affiliate’’ found in the allocation 

application, the Fund will consider: (i) 

Whether the activities described in 

applications submitted by separate 

entities are, or will be, operated and/or 

managed as a common enterprise that, 

in fact or effect, may be viewed as a 

single entity; (ii) whether the 

applications submitted by separate 

entities contain significant narrative, 

textual or other similarities, and (iii) 

whether the business strategies and/or 

activities described in applications 

submitted by separate entities are so 

closely related, in fact or effect, they 

may be viewed as substantially identical 

applications. In such cases, the Fund 

reserves the right either to reject all 

applications received from all such 

entities; to select a single application as 

the only one that will be considered for 

an allocation; and, in the event that an 

Application is selected to receive an 

allocation award, to deem certain 

activities ineligible. 

(b) Furthermore, an applicant that 

receives an allocation in this allocation 

round (or its Subsidiary transferee) may 

not become an Affiliate of or member of 

a common enterprise (as defined above) 

with another applicant that receives an 

allocation in this allocation round (or its 

Subsidiary transferee) 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 Fund’s Web site at 

http://www.cdfifund.gov for more 

details). 

5. Entities created as a series of funds: 

An applicant whose business structure 

consists of an entity with a series of 

funds may apply for CDE certification as 

a single entity, or as multiple entities. 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 may submit a single CDE 

certification application on behalf of the 

entire series of funds, 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 transfer is pre-approved by 

the Fund, in its sole discretion, which 

will be a condition of the Allocation 

Agreement. 

6. Entities that are BEA Program 

awardees: An insured depository 

institution investor (and its Affiliates 

and Subsidiaries) may not receive a 

NMTC Allocation in addition to a BEA 

Program award for the same investment 

in a CDE. Likewise, an insured 

depository institution investor (and its 

Affiliates and Subsidiaries) may not 

receive a BEA Program award in 

addition to a NMTC Allocation for the 

same investment in a CDE. 

IV. Application and Submission 

Information 

A. Address to request application 

package: Applicants must submit 

applications electronically under this 

NOAA, through the Fund Web site. 

Following the publication of this 

NOAA, the Fund will make the 

electronic allocation application 

available on its Web site at http:// 

www.cdfifund.gov. Applications sent by 

mail, facsimile or other form will not be 

accepted. The Fund will not accept 

applications in paper form, other than 

the signed signature page and certain 

paper attachments, as specified below 

and in the application. 

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. Electronic 

applications must be submitted solely 

by using the format made available at 

the Fund’s Web site. Additional 

information, including instructions 

relating to the submission of signature 

forms and supporting information, is set 

forth in further detail in the electronic 

application. An application must 

include a valid and current Employer 

Identification Number (EIN) issued by 

the Internal Revenue Service and 

assigned to the applicant and, if 

applicable, it’s Controlling Entity. 

Electronic applications without a valid 

EIN are incomplete and cannot be 

transmitted to the Fund. For more 

information on obtaining an EIN, please 

contact the Internal Revenue Service at 

(800) 829–4933 or http://www.irs.gov. 

An applicant may not submit more 

than one application in response to this 

NOAA. In addition, as stated in Section 

III.A.4 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. 

Once an application is submitted, an 

applicant will not be allowed to change 

any element of its application. 

C. Form of application submission: 

Applicants may only submit 

applications under this NOAA 

electronically. Applications sent by 

facsimile or by e-mail 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 Fund in the implementation of 

electronic reporting requirements. 

1. Electronic applications: Electronic 

applications must be submitted solely 

by using the Fund’s Web site and must 

be sent in accordance with the 

submission instructions provided in the 

electronic application form. Applicants 

will need access to Internet Explorer 5.5 

or higher, or Netscape Navigator 6.0 or 

higher, Windows 98 or higher (or other 

system compatible with the above 

Explorer and Netscape software) and 

optimally at least a 56Kbps Internet 

connection in order to meet the 

electronic application submission 

requirements. The Fund’s electronic 

application system 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 signature forms and 

supporting information, is set forth in 


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further detail in the electronic 

application. 

D. Application submission dates and 

times: 

1. Application Deadlines 

(a) Electronic applications: Must be 

received by 5 p.m. ET on April 8, 2009. 

Electronic applications cannot be 

transmitted or received after 5 p.m. ET 

on April 8, 2009. In addition, applicants 

that submit electronic applications must 

separately submit (by mail or other 

courier delivery service) a signature 

page, and all other required paper 

attachments. The signature page and 

additional documents must be 

postmarked on or before April 10, 2009. 

See application instructions, provided 

in the electronic application, for further 

detail. Applications and other required 

documents and other attachments 

postmarked or received after these dates 

and times will be rejected. If the 

signature page is not postmarked by the 

deadlines specified above, the 

application will be rejected. See Section 

IV.D.1.(c) of this NOAA for further 

requirements relating to postmarks. 

Additional deadlines (if any) relating to 

the submission of general supporting 

documentation will be further detailed 

in the electronic application. Please 

note that the document submission 

deadlines in this NOAA and/or the 

allocation application are strictly 

enforced. 

(b) Postmark: For purposes of this 

NOAA, the term ‘‘postmark’’ is defined 

by 26 CFR 301.7502–1. In general, the 

Fund will require that the postmarked 

document bear a postmark date that is 

on or before the applicable deadline. 

The document must be in an envelope 

or other appropriate wrapper, properly 

addressed as set forth in this NOAA and 

delivered by the United States Postal 

Service or any other private delivery 

service designated by the Secretary of 

the Treasury. For more information on 

designated delivery services, please see 

IRS Notice 2002–62, 2002–2 C.B. 574. 

E. Intergovernmental Review: Not 

applicable. 

F. Funding Restrictions: For allowable 

uses of investment proceeds related to a 

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 related guidance. Please see Section 

I, above, for the Programmatic Changes 

of this NOAA. 

G. Other Submission Requirements: 

1. Addresses: The signature page and 

attachments for electronic applications 

must be sent as directed in the 

application materials to the Bureau of 

Public Debt, the application intake 

coordinator for the Fund. The signature 

page or attachments will not be 

accepted at the Fund’s offices in 

Washington, DC. Signature pages or 

attachments received in the Fund’s 

offices will be rejected. Except for the 

signature page and attachments, 

electronic applications must be 

submitted solely by using the Fund’s 

Web site and must be sent in accordance 

with the submission instructions 

provided in the electronic application 

form. 

V. Application Review Information 

There are two parts to the substantive 

review process for each allocation 

application: Phase 1 and Phase 2. In 

Phase 1, the Fund will evaluate each 

application, assigning points and 

numeric scores according to the criteria 

described below. In Phase 2, the Fund 

will rank applicants in accordance with 

the procedures set forth below. 

A. 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; 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; the projected level of the 

applicant’s pipeline of potential 

investments; and the extent to which 

the applicant intends to make Qualified 

Low-Income Community Investments 

(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: (i) Are designed to meet 

the needs of underserved markets; (ii) 

are flexible or non-traditional in form 

and on better terms than available in the 

marketplace; and (iii) focus on 

customers or partners that typically lack 

access to conventional sources of 

capital. An applicant will also score 

well to the extent that it: (i) Has a track 

record of successfully providing 

products and services similar to those it 

intends to use with the proceeds of 

QEIs; (ii) has identified, or has a process 

for identifying, potential transactions; 

(iii) demonstrates a likelihood of issuing 

QEIs and making the related QLICIs in 

a time period that is significantly 

shorter than the 5-year period permitted 

under IRC§ 45D(b)(1); and (iv) 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 Fund 

will ascribe additional points to entities 

that meet one or both of the statutory 

priorities. First, the Fund will give up 

to five (5) additional points to any 

applicant that has a record of having 

successfully provided capital or 

technical assistance to disadvantaged 

businesses or communities. Second, the 

Fund will give five (5) 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 (or the 

applicant’s subsidiary CDEs) 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 

(10) 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 a 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 Fund 

will factor in an applicant’s priority 

points when ranking applicants during 

Phase 2 of the review process, as 

described below. 

2. Community Impact (25-point 

maximum): In assessing the impact on 

communities expected to result from the 

applicant’s proposed investments, 

reviewers will consider, among other 

things, the degree to which the 

applicant is likely to achieve significant 

and measurable community 

development and economic impacts in 

its Low-Income Communities, and 

whether the applicant is working in 

particularly economically distressed 

markets and/or in concert with Federal, 

state or local government or community 

economic development initiatives (e.g., 

Empowerment Zones, Enterprise 

Communities, and Renewal 


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Communities). An applicant will 

generally score well under this section 

to the extent that: (a) It articulates how 

its strategy is likely to produce 

significant and measurable community 

development and economic impacts that 

would not be achieved without NMTCs; 

and (b) it is working in particularly 

economically distressed or otherwise 

underserved communities and/or in 

concert with other Federal, state or local 

government or community economic 

development initiatives. 

3. Management Capacity (25-point 

maximum): In assessing an applicant’s 

management capacity, reviewers will 

consider, among other things, the 

qualifications of the applicant’s 

principals, its board members, its 

management team, and other essential 

staff or contractors, with specific focus 

on: Experience in deploying capital or 

technical assistance, including activities 

similar to those described in the 

applicant’s business strategy; experience 

in raising capital; asset management and 

risk management experience; experience 

with fulfilling compliance requirements 

of other governmental programs, 

including other tax programs; and the 

applicant’s (or its Controlling Entity’s) 

financial health. Reviewers will also 

consider the extent to which an 

applicant has protocols in place to 

ensure ongoing compliance with NMTC 

Program requirements and the level of 

involvement of community 

representatives and other stakeholders 

in the design, implementation or 

monitoring of an applicant’s business 

plan and strategy. In the case of an 

applicant (or any entity that Controls 

the applicant, is Controlled by the 

applicant or shares common 

management officials with the 

applicant, as determined by the Fund) 

that has received a NMTC Allocation 

from the Fund under a prior allocation 

round, reviewers will consider the 

activities that have occurred to date 

with respect to the prior allocation(s). 

An applicant will generally score well 

under this section to the extent that its 

management team or other essential 

personnel have experience in: (a) 

Deploying capital or technical 

assistance in Low-Income Communities, 

particularly those likely to be served by 

the applicant with the proceeds of QEIs; 

(b) raising capital, particularly from forprofit investors; (c) asset and risk 

management; and (d) fulfilling 

government compliance requirements, 

particularly tax program compliance. 

An applicant will also score well to the 

extent it has policies and systems in 

place to ensure ongoing compliance 

with NMTC Program requirements, and 

to the extent that Low-Income 

Community stakeholders play an active 

role in designing or implementing its 

business plan. In the case of an 

applicant (or any entity that Controls 

the applicant, is Controlled by the 

applicant or shares common 

management officials with the 

applicant, as determined by the Fund) 

that has received a NMTC Allocation 

from the Fund under a prior allocation 

round, reviewers will consider the 

activities that have occurred to date 

with respect to the prior allocation(s). 

4. Capitalization Strategy (25-point 

maximum): When assessing an 

applicant’s capitalization strategy, 

reviewers will consider, among other 

things: The extent to which the 

applicant has secured investments, 

commitments to invest, or indications of 

interest in investments from investors, 

commensurate with its requested 

amount of tax credit allocations; 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 

extent to which the applicant identifies 

how existing investors will leverage 

their investments in Low-Income 

Communities or how new investors will 

be brought into such investments; the 

distribution of the economic benefits of 

the tax credit; 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, including the extent to 

which the applicant has identified the 

financial resources outside of the NMTC 

investments necessary to support its 

operations or finance its activities; and 

the applicant’s timeline for utilizing an 

NMTC Allocation. 

An applicant will generally score well 

under this section to the extent that: (a) 

It has secured investor commitments, or 

has a reasonable strategy for obtaining 

such commitments; (b) its request for 

allocations is commensurate with both 

the level of QEIs it is likely to raise and 

its expected investment strategy to 

deploy funds raised with NMTCs; (c) it 

generally demonstrates that the 

economic benefits of the tax credit will 

be passed through to end users; (d) it is 

likely to leverage other sources of 

funding in addition to NMTC investor 

dollars; and (e) 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 score well to the extent 

that it will offer products with more 

favorable rates or terms than those 

currently offered by the investor and/or 

will target its activities to areas of 

greater economic distress than those 

currently targeted by the investor. 

B. Review and selection process: All 

allocation applications will be reviewed 

for eligibility and completeness. The 

Fund may consult with the IRS on the 

eligibility requirements under IRC 

§ 45D. To be complete, the 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 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. 

1. Phase 1: Reviewers will evaluate 

and score each application in the first 

part of the review process. An applicant 

must exceed a minimum overall 

aggregate base score threshold and 

exceed a minimum aggregate section 

score threshold in each of the four 

application sections (Business Strategy, 

Community Impact, Management 

Capacity, and Capitalization Strategy) in 

order to advance from the first part of 

the substantive review process. If, in the 

case of a particular application, a 

reviewer’s total base score or section 

score(s) (in one or more of the four 

application sections), varies 

significantly from the median of the 

reviewers’ total base scores or section 

scores for such application, the Fund 

may, in its sole discretion, obtain the 

comments and recommendations of an 

additional reviewer to determine 

whether the anomalous score should be 

replaced with the score of the additional 

reviewer. 

2. Phase 2: Once the Fund has 

determined which applicants have met 

the required minimum overall aggregate 

base score and aggregate section score 

thresholds, the Fund will rank 

applicants on the basis of their 

combined scores in the Business 

Strategy and Community Impact 

sections of the application and will 

make adjustments to each applicant’s 

priority points so that these points 

maintain the same relative weight in the 

ranking of applicant scores in Phase 2 

as in Phase 1. The Fund will award 

allocations in the order of this ‘‘Final 

Rank Score,’’ subject to applicants’ 

meeting all other eligibility 

requirements; provided, however, that 


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the 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. Most notably, in the 

case of applicants (or their Affiliates) 

that are prior year allocatees, the Fund 

will review the activities of the prior 

year allocatee to determine whether the 

entity has: (a) Effectively utilized its 

prior-year allocations; and (b) 

substantiated a need for additional 

allocation authority. 

3. Outstanding Reports. In the case of 

an applicant, or an Affiliate of the 

applicant, that has previously received 

an award or allocation from the Fund 

through any Fund program, the Fund 

will consider and will deduct points for 

the applicant’s (or its Affiliate’s) failure 

to meet the reporting deadlines set forth 

in any assistance, award or Allocation 

Agreement(s) with the Fund during the 

entity’s two complete fiscal years prior 

to the application deadline of this 

NOAA (generally FY 2007 and 2008). 

C. 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 Fund shall ensure that 

non-metropolitan counties receive a 

proportional allocation of Qualified 

Equity Investments (QEIs) under the 

NMTC Program. To this end, the Fund 

will ensure that the proportion of 

allocatees that are Rural CDEs is, at a 

minimum, equal to the proportion of 

applicants in the Phase 2 review pool 

that are Rural CDEs; and ensure that at 

least 20 percent of the QLICIs to be 

made using QEI proceeds are invested 

in Non-Metropolitan counties. A Rural 

CDE is one that has over the past five 

years dedicated at least 50 percent of its 

activities to Non-Metropolitan counties 

and has committed that at least 50 

percent of its NMTC activities will be 

conducted in such areas. NonMetropolitan counties are counties not 

contained within a Metropolitan 

Statistical Area, as such term is defined 

in OMB Bulletin No. 99–04 (Revised 

Statistical Definitions of Metropolitan 

Areas (MAs) and Guidance on Uses of 

MA Definitions) and applied using 2000 

census data. 

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 $3.5 billion in allocation 

authority is expended. Once these 

‘‘preliminary’’ award amounts are 

determined, the Fund will then analyze 

the allocatee pool to determine whether 

the two Non-Metropolitan 

proportionality objectives have been 

met. 

The 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 Phase 2 review pool 

that are Rural CDEs. If this objective is 

not achieved, the Fund will provide 

awards to additional Rural CDEs from 

the Phase 2 pool, in descending order of 

their Final Rank Score, until the 

appropriate percentage balance is 

achieved. In order to accommodate the 

additional allocatees within the $3.5 

billion allocation limitations, a formula 

reduction will be applied uniformly to 

the allocation amount for all allocatees 

in the pool. 

The Fund will then ensure that the 

pool of allocatees will, in the aggregate, 

invest at least 20 percent of their QLICIs 

(as measured by dollar amount) in NonMetropolitan counties. The Fund will 

first apply the ‘‘minimum’’ percentage 

of QLICIs that allocatees indicated in 

their applications would be targeted to 

Non-Metropolitan areas to the total 

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 Fund will proceed 

with the allocation process. However, if 

the aggregate total is less than 20 

percent of the QLICIs to be made by the 

allocatees, the Fund will consider 

requiring any or all of the Allocatees to 

direct up to the ‘‘maximum’’ percentage 

of QLICIs that they indicated would be 

targeted to Non-Metropolitan counties; 

taking into consideration their track 

record and ability to deploy dollars in 

Non-Metropolitan counties. 

D. Questions: All outstanding reports 

or compliance questions should be 

directed to the Compliance Manager by 

e-mail at cme@cdfi.treas.gov; by 

telephone at (202) 622–8226; by 

facsimile at (202) 622–6453; or by mail 

to CDFI Fund, 601 13th Street, NW., 

Suite 200 South, Washington, DC 20005. 

The Fund will respond to reporting or 

compliance questions between the 

hours of 9 a.m. and 5 p.m. ET, starting 

the date of the publication of this NOAA 

through April 6, 2009. The Fund will 

not respond to reporting or compliance 

phone calls or e-mail inquiries that are 

received after 5 p.m. ET on April 6, 

2009 until after the funding application 

deadline of April 8, 2009. 

E. Right of rejection: The Fund 

reserves the right to reject any NMTC 

allocation application in the case of a 

prior Fund awardee, 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 Fund. The Fund 

reserves the right to reject any NMTC 

allocation application in the case of a 

prior 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 Fund. The 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 or Allocation Agreement 

with the Fund. 

The Fund reserves the right to reject 

any NMTC allocation application in the 

case of a prior Fund 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 and 

markets served) set forth in the 

allocation application(s) related to such 

prior allocation(s). The Fund also 

reserves the right to reject any NMTC 

allocation application in the case of an 

Affiliate of the applicant that is a prior 

Fund Allocatee and has failed to use its 

prior NMTC allocation(s) in a manner 

that is generally consistent with the 

business strategy set forth in the 

allocation application(s) related to such 

prior allocation(s). 

The Fund reserves the right to reject 

a NMTC allocation application if 

information (including administrative 

errors) comes to the attention of the 

Fund that adversely affects an 

applicant’s eligibility for an award, 

adversely affects the Fund’s evaluation 

or scoring of an application, or indicates 

fraud or mismanagement on the part of 

an applicant. If the Fund determines 

that any portion of the application is 

incorrect in any material respect, the 

Fund reserves the right, in its sole 

discretion, to reject the application. 

As a part of the substantive review 

process, the Fund may permit 

reviewer(s) to make telephone calls to 

applicants for the sole purpose of 

obtaining, clarifying or confirming 

application information. In no event 

shall such contact be construed to 

permit an applicant to change any 

element of its application. Reviewers 

will not contact applicants without the 

prior approval of the Fund. At this point 

in the process, an applicant may be 

required to submit additional 

information about its application in 


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order to assist the Fund with its final 

evaluation process. Such requests must 

be responded to within the time 

parameters set by the Fund. The 

selecting official(s) will make a final 

allocation determination based on an 

applicant’s file, including, without 

limitation, eligibility under IRC § 45D, 

the reviewers’ scores and the amount of 

allocation authority available. In the 

case of applicants (or Affiliates of 

applicants) that are regulated by the 

Federal government or a State agency 

(or comparable entity), the Fund’s 

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

consult with and take into consideration 

the views of the appropriate Federal or 

State 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 Fund reserves 

the right to consult with and take into 

consideration the views of the Small 

Business Administration. 

The Fund reserves the right to 

conduct additional due diligence, as 

determined reasonable and appropriate 

by the Fund, in its sole discretion, 

related to the applicant and its officers, 

directors, owners, partners and key 

employees. 

Each applicant will be informed of the 

Fund’s award decision either through a 

Notice of Allocation if selected for an 

allocation (see Section VI.A. of this 

NOAA) or a declination letter, if not 

selected for an allocation, which may be 

for reasons of application 

incompleteness, ineligibility or 

substantive issues. All applicants that 

are not selected for an allocation based 

on substantive issues will likely be 

given the opportunity to obtain feedback 

on the strengths and weaknesses of their 

applications. This feedback will be 

provided in a format and within a 

timeframe to be determined by the 

Fund, based on available resources. 

The Fund further reserves the right to 

change its eligibility and evaluation 

criteria and procedures, if the Fund 

deems it appropriate. If said changes 

materially affect the Fund’s award 

decisions, the Fund will provide 

information regarding the changes 

through the Fund’s Web site. 

There is no right to appeal the Fund’s 

allocation decisions. The Fund’s 

allocation decisions are final. 

VI. Award Administration Information 

A. Notice of Allocation: The Fund 

will signify its selection of an applicant 

as an Allocatee by delivering a signed 

Notice of Allocation to the applicant. 

The Notice of Allocation will contain 

the general terms and conditions 

underlying the Fund’s provision of an 

NMTC Allocation including, but not 

limited to, the requirement that an 

Allocatee and the Fund enter into an 

Allocation Agreement. The applicant 

must execute the Notice of Allocation 

and return it to the Fund. By executing 

a Notice of Allocation, the Allocatee 

agrees that, if prior to entering into an 

Allocation Agreement with the Fund, 

information (including administrative 

errors) comes to the attention of the 

Fund that adversely affects the 

Allocatee’s eligibility for an award, 

adversely affects the Fund’s evaluation 

or scoring of the Allocatee’s application, 

or indicates fraud or mismanagement on 

the part of the Allocatee, the Fund may, 

in its discretion and without advance 

notice to the Allocatee, terminate the 

Notice of Allocation or take such other 

actions as it deems appropriate. 

Moreover, by executing a Notice of 

Allocation, an Allocatee agrees that, if 

prior to entering into an Allocation 

Agreement with the Fund, the Fund 

determines that the Allocatee is not in 

compliance with the terms of any prior 

assistance agreement, award agreement, 

and/or Allocation Agreement entered 

into with the Fund, the Fund may, in its 

discretion and without advance notice 

to the Allocatee, either terminate the 

Notice of Allocation or take such other 

actions as it deems appropriate. The 

Fund reserves the right, in its sole 

discretion, to rescind the allocation and 

the Notice of Allocation if the Allocatee 

fails to return the Notice of Allocation, 

signed by the authorized representative 

of the Allocatee, along with any other 

requested documentation, by the 

deadline set by the Fund. 

1. Failure to meet reporting 

requirements: If an Allocatee, or an 

Affiliate of an Allocatee, is a prior Fund 

awardee or Allocatee under any Fund 

program and is not current on the 

reporting requirements set forth in the 

previously executed assistance, 

allocation or award agreement(s), as of 

the date of the Notice of Allocation or 

thereafter, the Fund reserves the right, 

in its sole discretion, to delay entering 

into an Allocation Agreement and/or to 

impose limitations on an Allocatee’s 

ability to issue QEIs to investors until 

said prior awardee or Allocatee is 

current on the reporting requirements in 

the previously executed assistance, 

allocation or award agreement(s). Please 

note that the Fund only acknowledges 

the receipt of reports that are complete. 

As such, incomplete reports or reports 

that are deficient of required elements 

will not be recognized as having been 

received. If said prior awardee or 

Allocatee is unable to meet this 

requirement within the timeframe set by 

the Fund, the Fund reserves the right, in 

its sole discretion, to terminate and 

rescind the Notice of Allocation and the 

allocation made under this NOAA. 

2. Pending resolution of 

noncompliance: If an Allocatee is a 

prior awardee or Allocatee under any 

Fund program and if: (i) It has 

submitted complete and timely reports 

to the Fund that demonstrate 

noncompliance with a previous 

assistance, award or Allocation 

Agreement; and (ii) the Fund has yet to 

make a final determination as to 

whether the entity is in default of its 

previous assistance, award or Allocation 

Agreement, the 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 Qualified Equity 

Investments to investors, pending full 

resolution, in the sole determination of 

the Fund, of the noncompliance. 

Further, if an Affiliate of an Allocatee is 

a prior Fund awardee or Allocatee and 

if such entity: (i) Has submitted 

complete and timely reports to the Fund 

that demonstrate noncompliance with a 

previous assistance, award or Allocation 

Agreement; and (ii) the Fund has yet to 

make a final determination as to 

whether the entity is in default of its 

previous assistance, award or Allocation 

Agreement, the 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, 

pending full resolution, in the sole 

determination of the Fund, of the 

noncompliance. If the prior awardee or 

Allocatee in question is unable to 

satisfactorily resolve the issues of 

noncompliance, in the sole 

determination of the Fund, the Fund 

reserves the right, in its sole discretion, 

to terminate and rescind the Notice of 

Allocation and the allocation made 

under this NOAA. 

3. Default status: If, at any time prior 

to entering into an Allocation 

Agreement through this NOAA, the 

Fund has made a final determination 

that an Allocatee that is a prior Fund 

awardee or Allocatee under any Fund 

program is in default of a previously 

executed assistance, allocation or award 

agreement(s) and has provided written 

notification of such determination to the 

Allocatee, the 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, until 

said prior awardee or Allocatee has 

submitted a complete and timely report 


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4086 Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 

demonstrating full compliance with said 

agreement within a timeframe set by the 

Fund. Further, if at any time prior to 

entering into an Allocation Agreement 

through this NOAA, the Fund has made 

a final determination that an Affiliate of 

the Allocatee is a prior Fund awardee or 

Allocatee under any Fund program, and 

is in default of a previously executed 

assistance, allocation or award 

agreement(s) and has provided written 

notification of such determination to the 

defaulting entity, the 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, until said prior awardee or 

Allocatee has submitted a complete and 

timely report demonstrating full 

compliance with said agreement within 

a timeframe set by the Fund. If said 

prior awardee or Allocatee is unable to 

meet this requirement, the Fund 

reserves the right, in its sole discretion, 

to terminate and rescind the Notice of 

Allocation and the allocation made 

under this NOAA. 

4. Termination in default: If (i) within 

the 12-month period prior to entering 

into an Allocation Agreement through 

this NOAA, the Fund has made a final 

determination that an Allocatee that is 

a prior Fund awardee or Allocatee 

under any Fund program whose award 

or allocation was terminated in default 

of such prior agreement; (ii) the Fund 

has provided written notification of 

such determination to such 

organization; and (iii) the final reporting 

period end date for the applicable 

terminated agreement falls in such 

organization’s 2007 or 2008 fiscal year, 

the 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. Furthermore, if 

(i) Within the 12-month period prior to 

entering into an Allocation Agreement 

through this NOAA, the Fund has made 

a final determination that an Affiliate of 

the Allocatee is a prior Fund awardee or 

Allocatee under any Fund program 

whose award or allocation was 

terminated in default of such prior 

agreement; (ii) the Fund has provided 

written notification of such 

determination to the defaulting entity; 

and (iii) the final reporting period end 

date for the applicable terminated 

agreement falls in such defaulting 

entity’s 2007 or 2008 fiscal year, the 

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. 

B. Allocation Agreement: Each 

applicant that is selected to receive a 

NMTC Allocation (including the 

applicant’s Subsidiary transferees) must 

enter into an Allocation Agreement with 

the 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 Qualified Active LowIncome Businesses or 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) the time 

period by which the applicant may 

obtain QEIs from investors; (v) reporting 

requirements for all applicants receiving 

NMTC Allocations; and (vi) a 

requirement to maintain certification as 

a CDE throughout the term of the 

Allocation Agreement. If an applicant 

has 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 applicant hold 

a majority equity interest, the Allocation 

Agreement will contain a covenant 

whereby said applicant agrees that it 

will invest substantially all of said 

proceeds in businesses in which 

persons unrelated to the applicant hold 

a majority equity interest. 

In addition to entering into an 

Allocation Agreement, each applicant 

selected to receive a NMTC Allocation 

must furnish to the Fund an opinion 

from its legal counsel, the content of 

which will be further specified in the 

Allocation Agreement, to include, 

among other matters, an opinion that an 

applicant (and its Subsidiary 

transferees, 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 

transferees, the 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 

transferees. The Fund reserves the right, 

in its sole discretion, to rescind its 

Notice of Allocation if the Allocatee 

fails to return the Allocation Agreement, 

signed by the authorized representative 

of the Allocatee, and/or provide the 

Fund with any other requested 

documentation, within the deadlines set 

by the Fund. 

C. Fees: The 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 

Fund will publish additional 

information concerning the nature and 

amount of the fee. 

D. Reporting: The Fund will collect 

information, on at least an annual basis, 

from all applicants that are awarded 

NMTC Allocations and/or are recipients 

of QLICIs, including such audited 

financial statements and opinions of 

counsel as the Fund deems necessary or 

desirable, in its sole discretion. The 

Fund will use such information 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 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 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 Fund will provide programmatic 

and information technology support 

related to the allocation application 

between the hours of 9 a.m. and 5 p.m. 

ET through April 6, 2009. The Fund will 

not respond to phone calls or e-mails 

concerning the application that are 

received after 5 p.m. ET on April 6, 

2009 until after the allocation 

application deadline of April 8, 2009. 

Applications and other information 

regarding the Fund and its programs 

may be obtained from the Fund’s Web 

site at http://www.cdfifund.gov. The 


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Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 4087 

Fund will post on its Web site responses 

to questions of general applicability 

regarding the NMTC Program. 

A. Information technology support: 

Technical support can be obtained by 

calling (202) 622–2455 or by e-mail at 

ithelpdesk@cdfi.treas.gov. People who 

have visual or mobility impairments 

that prevent them from accessing the 

Low-Income Community maps using the 

Fund’s Web site should call (202) 622– 

2455 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 

Fund’s NMTC Program Manager by email at cdfihelp@cdfi.treas.gov, by 

telephone at (202) 622–6355, by 

facsimile at (202) 622–7754, or by mail 

at CDFI Fund, 601 13th Street, NW., 

Suite 200 South, Washington, DC 20005. 

These are not toll-free numbers. 

C. Administrative support: If you have 

any questions regarding the 

administrative requirements of this 

NOAA, contact the Fund’s Awards 

Manager by e-mail at 

grantsmanagement@cdfi.treas.gov, by 

telephone at (202) 622–8226, by 

facsimile at (202) 622–6453, or by mail 

at CDFI Fund, 601 13th Street, NW., 

Suite 200 South, Washington, DC 20005. 

These are not toll free numbers. 

D. IRS support: For questions 

regarding the tax aspects of the NMTC 

Program, contact Branch Five, Office of 

the Associate Chief Counsel 

(Passthroughs and Special Industries), 

IRS, by telephone at (202) 622–3040, by 

facsimile at (202) 622–4753, or by mail 

at 1111 Constitution Avenue, NW., Attn: 

CC:PSI:5, Washington, DC 20224. These 

are not toll free numbers. 

E. Legal counsel support: If you have 

any questions or matters that you 

believe require response by the Fund’s 

Office of Legal Counsel, please refer to 

the document titled ‘‘How to Request a 

Legal Review,’’ found on the Fund’s 

Web site at http://www.cdfifund.gov. 

VIII. Information Sessions 

In connection with this NOAA, the 

Fund may conduct multiple information 

sessions around the country at locations 

to be announced, as well as an 

information session that will be 

produced in Washington, DC and 

broadcast over the internet via 

Webcasting. For further information on 

these upcoming information sessions, 

please visit the Fund’s Web site at 

http://www.cdfifund.gov or call the 

Fund at (202) 622–9046. 

Authority: 26 U.S.C. 45D; 31 U.S.C. 321; 26 

CFR 1.45D–1. 

Dated: January 13, 2009. 

Donna J. Gambrell, 

Director, Community Development Financial 

Institutions Fund. 

[FR Doc. E9–1131 Filed 1–21–09; 8:45 am] 

BILLING CODE 4810–70–P 


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