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Monday, November 28, 2022

The Community Development Financial Institutions (CDFI) Fund published a notice in today’s Federal Register, inviting comments concerning the new markets tax credit (NMTC) program allocation and qualified equity investment tracking system (AQEI).

Friday, November 18, 2022

The Community Development Financial Institutions (CDFI) Fund today released the notice of allocation availability (NOAA) for the calendar year (CY) 2022 round of the new markets tax credit, along with application materials and an updated application FAQ document. The NOAA will be published in the Federal Register Nov. 22. Up to $5 billion of allocation authority is available under the CY 2022 round. NMTC applications are due Jan. 26, 2023. The CDFI Fund also announced some NMTC program updates, including revised qualified equity investment (QEI) issuance requirements. The deadline for community development entity certification application submission is Dec. 2 and the deadline to register in the CDFI Fund Awards Management Information System for NMTC application is Dec. 15. The QEI issuance and qualified low-income community investment (QLICI) requirements are due May 4, 2023.

Monday, November 7, 2022

The Capital Magnet Fund (CMF) Coalition, an organization of CMF awardees and other stakeholders, last week sent a letter to the U.S. Department of Treasury recommending changes to how the Community Development Financial Institutions (CDFI) Fund administers the CMF program. The CMF Coalition letter recommends a separate application category for smaller applicants to which at least 10% of each year’s assessment would be allocated and for the CDFI Fund to use appropriations for its Capacity Building Initiative to provide training and technical assistance on the CMF program. The CMF Coalition also made 14 additional recommendations in the letter. The CMF program has awarded more than $1 billion through seven funding rounds to 139 organizations, including $336.4 million in June. The funds support financing for the preservation, rehabilitation, development or purchase of affordable housing as well as related development.

Friday, November 4, 2022

The Community Development Financial Institutions (CDFI) Fund today published in the Federal Register a request for public comment on its revised CDFI Certification Application for submission to the Office of Management and Budget. There are revisions to the application and reporting requirements.

Friday, October 28, 2022

The Community Development Financial Institutions (CDFI) Fund today announced the allocation of $5 billion in new markets tax credits (NMTCs) in the calendar year 2021 (CY 2021) allocation round. A total of 107 community development entities (CDEs) were awarded allocations. The CDEs are based in 35 states and the District of Columbia and more than 20% of the NMTC-financed investments will be made in rural communities. The CDFI Fund also released the annual award book, which reports that of the 107 allocatees, 45 will focus investment activities on a national service area, 25 will focus on a multi-state area, 18 will focus on a specific state and 19 will focus on specific local markets. The allocation amounts range from $20 million to $60million.

Tuesday, October 25, 2022

Allocation awards for the calendar year (CY) 2021 round of the new markets tax credit (NMTC) incentive will be announced Friday at 10:30 a.m. ET, according to a media advisory Tuesday from the U.S. Department of the Treasury. The 2021 round marks the second year of the incentive’s five-year extension at $5 billion annually. The Community Development Financial Institutions Fund (CDFI) Fund received 199 applications for this round of allocations. Round 18 applicants are headquartered in 43 states, the District of Columbia, Guam and Puerto Rico. These community development entities requested $14.7 billion in total NMTC allocation authority, nearly triple the $5 billion available under Round 18.

Wednesday, October 19, 2022

The Community Development Financial Institutions (CDFI) Fund will publish in Thursday’s Federal Register a notice and request for comment concerning pre-approval target market assessment methodologies used in the CDFI certification process. The CDFI Fund intends to publish a list of pre-approved target market assessment methodologies that CDFIs may use to demonstrate they are serving their identified target markets. The notice requests feedback on the proposed list of methodologies. Comments must be submitted in writing by Dec. 19.

Thursday, October 13, 2022

Nearly $60 billion in new markets tax credit (NMTC) investments were made through fiscal year 2020 (FY 2020), according to data and a summary report released today by the Community Development Financial Institutions (CDFI) Fund. The summary reported that $59.2 billion in NMTC investments were made from 2003 through 2020, including $2 billion in qualified equity investments by community development entities (CDEs). The report said that NMTC financing has helped build or rehabilitate more than 270 million square feet of commercial real estate and there has been more than $24 billion in investments in community facility projects. More than 600,000 construction jobs and more than 300,000 permanent jobs were created through the NMTC from 2003-2020, according to the report.

Tuesday, October 4, 2022

The Community Development Financial Institutions (CDFI) Fund today announced a preview of the revised certification application, annual certification and data collection report, and data collection mechanisms for CDFIs. The preview comes ahead of the Office of Management and Budget (OMB) seeking public input for 30 days on the revisions. The OMB request is the final opportunity for input before the changes are implemented in April 2023. Substantial updates have been made to the application and the reporting requirements since the first round of revisions were proposed in 2020, many changes due to comments submitted to the CDFI Fund. The CDFI Fund is in a blackout period for the submission of all new CDFI certification applications as it completes the build out of the application in the Awards Management Information System (AMIS).

Friday, September 30, 2022

The Community Development Financial Institutions (CDFI) Fund today announced that the U.S. Department of Treasury will issue three guarantees on behalf of five CDFIs totaling $355 million under the fiscal year 2022 CDFI Bond Guarantee Program. Three issuers–Community Reinvestment Fund, InBank and Opportunity Finance Network–will issue the bonds. The CDFI Bond Guarantee Program provides CDFIs with substantial long-term, fixed-rate capital for use in distressed communities. There is a minimum of $100 million per bond issuance.

Wednesday, September 28, 2022

Novogradac has resources available for private companies and nonprofits affected by Accounting Standards Codification (ASC) 842, which changed lease accounting standards. The change–which took effect Jan. 1 for fiscal years beginning after Dec. 15, 2021–affects the way certain contracts are accounted for under generally accepted accounting principles, particularly entities that are lessees. Rather than disclosing operating leases in notes to financial statements, but not on balance sheets, the new guidance requires lessees to record a right-of-use asset for the leased asset and a corresponding lease liability equal to the financial obligation over the lease term, as well as new disclosure requirements.

Monday, September 26, 2022

The Community Development Financial Institutions (CDFI) Fund today announced the largest technical assistance awards amount in the history of the CDFI program and the Native American CDFI Assistance (NACA) program, with $27.57 million going to 218 organizations. The awards are to help the organizations build their capacity to provide services to low-income and underserved people. The CDFI Fund said that 202 organizations received $25.22 million in CDFI program awards and 16 organizations received $2.35 million in NACA program awards.

Wednesday, September 7, 2022

The Community Development Financial Institutions (CDFI) Fund today published a CDFI Certification Cure Period Frequently Asked Questions (FAQ) document to inform CDFIs that are in a cure period how to resolve certification-related deficiencies.

Monday, August 22, 2022

The Financial Accounting Standards Board (FASB) today released an exposure draft of a proposed accounting standards update that would allow the expanded use of the proportional amortization method to account for investments in tax credit structures.

Tuesday, August 16, 2022

President Joe Biden today signed into law the Inflation Reduction Act (IRA), a $750 billion budget reconciliation bill that includes $369 billion in clean and renewable energy provisions that feature extensions of the renewable energy production tax credit (PTC) and investment tax credit (ITC).

Thursday, July 28, 2022

The Community Development Financial Institutions (CDFI) Fund published in today’s Federal Register a request for public comment concerning the criteria to designate a certified CDFI as a Minority Lending Institution (MLI). While no federal funding is associated with an MLI designation, the CDFI Fund seeks to implement this designation for CDFIs that wish to be recognized for high levels of service and accountability to minority populations and to identify barriers that those CDFIs experience in providing access to capital. The CDFI Fund will use the designation for limited purposes, including data collection and reporting. The Federal Register posting includes the list of questions to which the CDFI Fund is requesting comment. Comments must be submitted by Nov. 25.

Wednesday, July 20, 2022

The Community Development Financial Institutions (CDFI) Fund will pause the acceptance of new CDFI certification applications from Oct. 1, 2022, through April 2, 2023, as it deploys new application and reporting tools. The revised certification application, annual certification and data collection report will be released for a second round of public comment in the coming weeks by the Office of Management and Budget, with the updated versions implemented April 3, 2023. During the blackout period, CDFIs will be required to be in a state of good standing with respect to their certification status. Organizations must remain in compliance with all outstanding CDFI Fund awards reporting requirements, including recipients of the new markets tax credit (NMTC) and Capital Magnet Fund (CMF). The CDFI Fund posted a frequently asked questions document on the blackout period.

Friday, July 15, 2022

The Community Development Financial Institutions (CDFI) Fund will publish in Tuesday’s Federal Register an amended notice of funds availability (NOFA) for the fiscal year 2022 CDFI Equitable Recovery Program (CDFI ERP) round. The amended NOFA extends several deadlines, including an extension for CDFI ERP applications to Sept. 22 at 11:59 p.m. ET and extension to submit the OMB Standard Form-424 Mandatory to Aug. 18. In addition to the deadline extensions, the CDFI Fund also amended the NOFA to clarify eligibility requirements around audited financial statements. The CDFI ERP provides $1.75 billion to CDFIs in grants to respond to the economic impacts of the COVID-19 pandemic. Awards are provided to CDFIs to expand services in low- or moderate-income communities and to borrowers that have significant unmet capital or financial services needs and were disproportionally affected by the pandemic.

Thursday, June 30, 2022

The Community Development Financial Institutions (CDFI) Fund today announced that it tentatively plans to update low-income community data for the new markets tax credit (NMTC) incentive in spring 2023. The updated data will be based Census Bureau data from the 2016-2020 American Community Survey (ACS), with a one-year transition period. Eligibility is currently determined by data collected through the 2011-2015 ACS. 

Thursday, June 23, 2022

Surveyed community development entities (CDEs) using new markets tax credits (NMTCs) completed 277 projects that generated 52,718 jobs in 2021, according to the 2022 New Markets Tax Credit Progress Report, prepared by the NMTC Coalition. The organization has surveyed CDEs about their activity annually since 2005. Highlights of the 2021 report include that the 277 projects totaled $6.1 billion in investment and received $3.2 billion in NMTC allocation; projects were in 47 states and territories; 86% of projects were in severely distressed communities; a record 31% of NMTC financing went to non-metropolitan counties and the median equity price reported was 74 cents per dollar of credit.