The Community Development Financial Institutions Fund (CDFI Fund), U.S. Department of the Treasury, is soliciting comments concerning pre-approved Target Market assessment methodologies related to the Community Development Financial Institution (CDFI) Certification process.
To be a Certified CDFI, an entity must demonstrate that it serves at least one eligible Target Market (either an Investment Area or a Targeted Population). In addition, it must direct at least 60% of both the number and dollar volume of arm’s-length, on-balance sheet Financial Products to one or more eligible Target Market components. As part of its ongoing efforts to revise how new organizations become Certified as CDFIs and how currently Certified CDFIs meet annual reporting requirements, the CDFI Fund is requesting input on a new list of pre-approved Target Market assessment methodologies that entities applying for Certification as a CDFI may use to assess whether the end-users of an entity’s Financial Products or Financial Services are members of a pre-approved Target Market. Under the current policies and in the CDFI Certification Application, Applicants must describe and seek approval for each assessment methodology they have used and intend to use to confirm financing activity to their identified Target Market(s).
In an effort to increase transparency and reduce burden through the revised CDFI Certification Application, the CDFI Fund intends to publish a list of pre-approved Target Market assessment methodologies that Applicants and Certified CDFIs may use and rely upon to demonstrate that they are serving their identified Target Market(s). Only those Target Market assessment methodologies that have been approved by the CDFI Fund may be used when compiling Target Market data under the revised CDFI Certification Application. Through the revised CDFI Certification Application and Annual Certification and Data Collection Report, Applicants and Certified CDFIs will select from a drop-down menu the options in the methodology list that they used for each of their Target Market components (i.e., Investment Area, Low-Income Targeted Population, or Other Targeted Population).
Through a Request for Comment (RFC), the CDFI Fund seeks feedback from the public on the proposed list of pre-approved Target Market assessment methodologies. The CDFI Fund also seeks any additional information members of the public believe would assist the CDFI Fund in establishing policies and procedures related to the Target Market assessment methodologies. The CDFI Fund intends to consider the feedback received through this RFC prior to establishing a final list of pre-approved Target Market assessment methodologies. Please note, the CDFI Fund will not automatically retain previously accepted Target Market assessment methodologies that do not appear on the list of Proposed Pre-Approved Target Market Assessment Methodologies (provided below). Applicants that seek to use an alternative or modified methodology will be permitted to submit a service request through AMIS for consideration of that process to the CDFI Fund.
A complete list of the questions to which the CDFI Fund is seeking comment is contained in the Notice and Request for Public Comment that will be published in the Federal Register on October 20, 2022.
Comments must be submitted in writing by December 19, 2022, via the Federal eRulemaking Portal: www.regulations.gov. Follow the instructions highlighted in the Federal Register Notice for submitting comments.
Questions related to the Notice and Request for Public Comment can be directed to Michelle Dickens, Program Manager, Office of Certification Policy and Evaluation, CDFI Fund, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW, Washington, DC 20220, firstname.lastname@example.org, or by phone at (202) 653-0300. This contact is for questions only; comments must be submitted to the Federal Rulemaking portal to be considered by the CDFI Fund.
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