CDFI Fund: New Market Tax Credits Certification, Compliance and Monitoring FAQs Updated

The Community Development Financial Institutions Fund (CDFI Fund) has provided an updated Frequently Asked Questions (FAQ) document for NMTC compliance on its website. This document supersedes the December 2014 and October 2015 publications of the FAQ document by adding, revising, or updating select questions from these earlier editions. Updated guidance includes:

  • Clarifying guidance on the use of QLICI proceeds to repay incurred cost associated with monetized asset owned or controlled by a QALICB or an Affiliate of a QALICB;
  • Clarifying guidance on monitoring compliance with the unrelated entity requirement in Section 3.2(d) of the allocation agreement as it applies to the CY2015 NMTC Application;
  • Restrictions on the use of QLICI proceeds to directly or indirectly reimburse expenditures incurred by a QALICB or Project Sponsor as it applies to the CY2015 NMTC Application;
  • Defining activities that “support health related services” as it relates to QLICIs in federally designated medically underserved areas;
  • Monitoring “Innovative Investments” for the purpose of meeting Section 3.2(l) of the allocation agreement;
  • Updated links to resources relating to Areas of Higher Distress;
  • Revision to the definition of Real Estate QALICB versus Non-Real Estate QALICB for purposes of the allocation agreement.

The updated FAQ document may found on the New Markets Tax Credit Program Compliance page of the CDFI Fund’s website. Questions may be directed to the Office of Certification, Compliance Monitoring and Evaluation at (202) 653-0423 or ccme@cdfi.treas.gov.

To learn more about the New Markets Tax Credit Program or the CDFI Fund, please visit the CDFI Fund’s website at www.cdfifund.gov.