FROM THE CDFI FUND: The Community Development Financial Institutions Fund (CDFI Fund) will update its timeline for rolling out the new CDFI Certification Application and anticipates revising the version that was released for public comment in the Federal Register on November 4, 2022.
The CDFI Fund has been deliberate in its efforts to update the CDFI Certification process and will continue with that approach by carefully reviewing all public comments received in response to the latest request for public comments. While a lengthy delay should not be necessary, the time needed to deliberate on these comments and further adjust the Application materials will require the CDFI Fund to postpone the launch of the new Application and its associated reporting tools beyond the previously anticipated April timeline.
During this period, the CDFI Fund’s current pause on CDFI Certification Application submissions will continue to remain in effect. The CDFI Fund will announce a revised timeline in the near future. In the meantime, please note the following points about the CDFI Fund’s plans moving forward.
- Comment Review and Additional Application Revisions. The CDFI Fund will review all comments received in response to the November 2022 solicitation and is considering further changes to the final Application materials.
- Publication of Information. In order to provide time for stakeholders to familiarize themselves with the new Application, the CDFI Fund will make an updated version of the final CDFI Certification Application available prior to it becoming effective.
- Implementation of Grace Period. As the CDFI Fund has already stated publicly, once the new Application is implemented all currently Certified CDFIs will be provided a grace period by which to achieve compliance with the new CDFI Certification Application and guidelines. The CDFI Fund will provide currently Certified CDFIs the time necessary to transition to the new Certification Application.
- Data and Material Submission. The CDFI Fund is actively making improvements to its Awards Management Information System (AMIS) to ensure CDFIs are able to efficiently submit data and all supporting material required by the new CDFI Certification Application.
- Public Outreach. After it conducts a more complete review of comments, the CDFI Fund intends to schedule public events to provide CDFI stakeholders updates on the process and steps that the CDFI Fund will be taking towards finalizing the revised CDFI Certification Application, as well as provide clarifying information surrounding specific details of the new Application.
In an interview with Tribal Business News, NCN’s CEO/Chairman Pete Upton said the CDFI Fund’s decision to delay the rollout is a sign that the Treasury is listening to how the proposed changes could impact Indian Country as well as other underinvested communities the industry serves.
“I think they are listening,” Upton told Tribal Business News. “I have had conversations with them, and they are definitely listening to Indian Country and the entire industry. I think it is a good thing that they are being prudent in their decision and listening to the comments.”
Under the proposed changes, a CDFI would be prohibited from issuing mortgage loans with balloon payments or terms longer than 30 years or any interest-only loan. CDFIs would also be barred from counting youth-based programs as qualifying development services and would be limited in the amount of staff time dedicated to development services. Click here to read NCN’s comment letter to the CDFI Fund about these proposed changes.
For guidance and supporting information related to the CDFI Fund’s work revising the CDFI Certification Application, ACR and abbreviated TLR visit the CDFI Fund’s CDFI Certification Application & Data Collection Reporting Revisions webpage.
Any questions regarding compliance related to existing CDFI Certification should be directed to the Certification, Compliance Monitoring and Evaluation Help Desk via an AMIS Service Request, via e-mail at [email protected], or phone at (202) 653-0423.