credit-related services in the neighborhood
served by the lender to low-income families and
others not adequately served by traditional
lending institutions.
(3) SELECTION CRITERIA.—The Secretary shall
approve applications under this subsection based on
competitive selection criteria, which the Secretary
shall establish by regulation.
(4) 
NOTIFICATION.—The 
Secretary 
shall
promptly notify each applicant of the approval or
disapproval of the applicant’s application. In the
case of any disapproval, such notification shall in-
clude a statement of the reasons for the disapproval
and of the availability of technical assistance under
section 1519.
SEC. 1517. ASSISTANCE AGREEMENTS.
(a) REQUIREMENT.—The Secretary may not provide
assistance under section 1514 for an application for such
assistance approved under section 1516 unless the com-
munity development lender or eligible entity submitting
the application enters into a written agreement with the
Secretary under this section.
(b) CONTENTS.—An agreement under this section
shall provide the following:
(1) NEIGHBORHOOD SERVED.—A delineation of
the boundaries of the low-income neighborhood with-
in which the community development lender shall be
located and in which the lender shall conduct its
principal operations.
(2) COMPLIANCE WITH REQUIREMENTS.—That
the community development lender shall comply with
the requirements under section 1515.
(3) SAFE AND SOUND OPERATION.—That the
community development lender shall operate in a fi-
nancially safe and sound manner.
(4) BOOKS AND RECORDS.—That the commu-
nity development lender shall operate and maintain
books and records in accordance with the regulations
issued by the Secretary under section 1518 and will
provide the Secretary with access to such books and
records for purposes of determining the compliance
of the lender with the requirements of this subtitle
and the provisions of the agreement under this
section.
(5) PERFORMANCE
STANDARDS
AND
SANC-
TIONS.—Standards for the performance and finan-
cial operation of the community development lender
appropriate for the particular lender, including
standards relating to the lending volume, portfolio
performance, personnel development, service to the
neighborhood served by the lender, and sanctions for
failure to comply with such standards.
(6) REPORTS.—That the community develop-
ment lender (or the eligible entity establishing the
community development lender) shall submit reports
to the Secretary including such information, at such
times, and in such manner, as required by the Sec-
retary and provided in the agreement.
(7) ASSISTANCE.—The amount of assistance to
be provided to the community development lender
(or eligible entity establishing the community devel-
opment lender), the purposes under section 1514(b)
for which such assistance will be used, and the tim-
ing and terms of the disbursement of such assist-
ance.
(8) OTHER CONDITIONS.—That the community
development lender shall comply with any other writ-
ten conditions (which shall be contained in the
agreement) that the Secretary considers appropriate
to carry out the purposes of this subtitle.
(9) PERIOD OF COMPLIANCE.—The period dur-
ing which the community development lender shall
comply with the provisions of the agreement under
this section, which shall not be shorter than 12
months in duration.
(c) FEDERAL OR OTHER REGULATION OF LEND-
ER.—An agreement under this section may not be con-
strued to annul, alter, affect, or exempt the community
development lender receiving assistance pursuant to the
agreement (or established by the eligible entity receiving
such assistance) from complying with any Federal, State,
or local laws, ordinances, and regulations applicable to the
financial and other operations of community development
lender or with any orders or rulings of any agency or in-
strumentality of the Federal Government or the State or
local government responsible for the supervision, approval,
regulation, or insuring of the community development
lender.
SEC. 1518. BOOKS, RECORDS, AND AUDITS.
(a) BOOKS AND RECORDS.—During the applicable
assistance agreement term, a community development
lender that receives assistance under section 1514 (or es-
tablished by an eligible entity that receives such assist-
ance) shall maintain the books and records of the lender
in the manner that the Secretary shall, by regulation,
require.
(b) EXAMINATIONS AND AUDITS.—
(1) RECERTIFICATION.—The Secretary shall,
not less than once each year during the applicable
assistance agreement term, conduct an examination
of the books, records, and financial accounts and
transactions of each community development lender
receiving assistance under section 1514 (or estab-
lished by an eligible entity receiving assistance under
such section) for the purpose of determining compli-
ance of the lender with this subtitle and the provi-
sions of the agreement.
(2) OTHER.—During the applicable assistance
agreement term, the Secretary may conduct any
other examinations and audits of such a community
development lender and its accounts and trans-
actions that the Secretary considers appropriate to
determine the condition of the lender and compliance
with the provisions of the assistance agreement.
SEC. 1519. TECHNICAL ASSISTANCE FOR ORGANIZING AND
OPERATING 
COMMUNITY 
DEVELOPMENT
LENDERS.
(a) ASSISTANCE TO ESTABLISH COMMUNITY DEVEL-
OPMENT LENDERS.—The Secretary shall carry out a pro-
gram under this subsection to provide technical assistance
in establishing community development financial institu-
tions, which shall include—