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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Notices
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2020: American Samoa, Guam, the Northern Mariana Islands, and the U.S.
Virgin Islands.
E. Funding limitations: The CDFI
Fund reserves the right to fund, in whole or in part, any, all, or none of the Applications submitted in response to this NOFA.
II. Federal Award Information A. Funding Availability: The CDFI
Fund plans to award up to $380.2
million in grants for the CMF FY 2021
Round under this NOFA. Eligible organizations of all sizes are encouraged to apply, including new and previous Applicants, past CMF Recipients, and Applicants focused on Homeownership, Rental housing, or both. HERA prohibits the CDFI Fund from obligating more than 15% of the aggregate available in CMF Awards to any Applicant, its Subsidiaries and Affiliates in the same funding round. In past rounds, the CDFI
Fund has typically provided awards smaller than the statutory cap. For example, for the FY 2020 funding round, awards ranged from $750,000 to $8,000,000, with an average award of $3.7 million. Given the larger amount of funding available for the FY 2021 CMF
round compared with the FY 2020 CMF
round, the CDFI Fund will consider award requests that significantly exceed the maximum award amounts made in past rounds. In addition, the CDFI Fund anticipates issuing more awards at various award sizes, including smaller awards. Given the administrative and compliance responsibilities for Recipients, the CDFI Fund will not accept Applications for the FY 2021
CMF Round that request less than $500,000 and will not provide awards below $500,000 to any CMF Award Recipient for the FY 2021 CMF Round.
The CDFI Fund reserves the right, in its sole discretion, to provide a CMF
Award in an amount other than that which the Applicant requests. However, the Award amount will not exceed the Applicants Award request as stated in its Application, nor will the Award amount be less than the Applicants minimum Award request if one is provided in the Application. An Applicant may receive only one Award through the FY 2021 CMF Round, though one or more Affiliates of an Applicant, if eligible, may separately apply and be awarded.
B. Types of Awards: The CDFI Fund will provide CMF Awards in the form of grants. CMF Awards must be used to support the eligible activities as set forth in 12 CFR 1807.301. A CMF Award Recipient may not distribute the CMF
Award to any Affiliate, Subsidiary, or third-party entity in any manner that
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would create a Subrecipient relationship as defined in the Uniform Administrative Requirements without the CDFI Funds prior written consent.
The Recipient of a CMF Award must retain all obligations related to the Award. This restriction does not prevent a Recipient from using its CMF Award to loan to or invest directly in an Affiliate separate legal entity or in a specific Project being undertaken by an Affiliate, unless the Affiliate received a CMF Award in the same funding round.
C. Limitations on using CMF Awards in conjunction with other CDFI Fund awards/allocations: 1. A CMF Award Recipient may not use its CMF Award for any project that also receives funding from other CDFI Fund program awards or allocations the Recipient or any of its Affiliates has received, except when the CMF Award dollars are used to finance/support a different phase of development in the same Project than that financed by other CDFI Fund awards or allocations. The separate phases of development financing are: 1
Predevelopment; 2 acquisition; 3 site work preconstruction; 4
construction/rehabilitation; 5
permanent financing; and 6 bridge financing between two or more phases.
Additionally, one or more Affiliated entities may not use CMF Award funds from the same funding round to finance/
support the same Project, regardless of whether the funds are used in different phases of the Project.
The phase restriction above does not apply to the Recipients prior CMF
Awards. The Recipient may combine its multiple CMF Awards to provide financing on any Project, including financing the same phase of any Project.
However, the Recipient may not deem the same costs as Eligible Project Costs under multiple CMF Awards and must prorate the unit production performance across its multiple CMF Awards.
Similarly, Affiliates with CMF Awards from different rounds may only use those Awards to finance the same Project if they prorate Eligible Projects and unit production performance among the Affiliates i.e., Affiliates may not use the same Eligible Project Costs or housing units to meet Assistance Agreement requirements under separate CMF Awards.
If providing Homeownership assistance, a CMF Award may be used in conjunction with awards/allocations from other CDFI Fund programs only if the Project can be divided into such phases, and the CMF Award is used in a different phase from the other CDFI
Fund program awards/allocations. To clarify, a CMF Award cannot be used for a Homeownership property that is
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permanently financed or supported by both the Recipients or any of its Affiliates CMF Award and an award/
allocation from another CDFI Fund program e.g., down payment assistance funded from CMF Award may not be combined with a permanent mortgage funded from another CDFI Fund program.
2. Costs financed and/or supported by the Recipients other awards/allocations from CDFI Fund programs, including awards from prior CMF rounds, may not be counted or reported as Leveraged Costs for the CMF Award pursuant to this NOFA as further set forth in the Assistance Agreement. While the Recipient may combine its CMF Award pursuant to this NOFA with prior issued CMF Awards to finance/support the same Project, each CMF Award must separately meet the program requirements as outlined in the applicable Assistance Agreement and the CMF Interim Rule 12 CFR part 1807.
In all cases, the CMF Award remains subject to the following restriction imposed by the CDFI Bond Guarantee Program: Award funds received under any CDFI Fund program cannot be used by any participant of the CDFI Bond Guarantee Program, including Qualified Issuers, Eligible CDFIs, and Secondary Borrowers, to pay principal, interest, fees, administrative costs, or issuance costs including Bond Issuance Fees related to the CDFI Bond Guarantee Program, or to fund the Risk Share Pool for a Bond Issue all capitalized terms used in this sentence, other than CMF
Award, shall have the meanings ascribed to them in the CDFI Bond Guarantee Program regulations and applicable guidance.
D. Anticipated Start Date and Period of Performance: The CDFI Fund anticipates the period of performance for the FY 2021 CMF Round to begin in early 2022. The period of performance for each CMF Award begins with the date that the CDFI Fund announces the Recipients of FY 2021 CMF Awards and continues until the end of the ten-year period of affordability for all Projects financed and/or supported with the CMF Award, as set forth at 12 CFR
1807.401d and 12 CFR 1807.402, and as further set forth in the Assistance Agreement, during which time the Recipient must meet certain Performance Goals.
E. Eligible Activities: A CMF Award must support or finance activities that attract private capital for and increase investment in i the Development, Preservation, Rehabilitation, or Purchase of Affordable Housing for primarily Low-, Very Low-, and
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