The Community Development Financial Institutions Fund (CDFI Fund) has provided an updated Frequently Asked Questions (FAQ) document for New Markets Tax Credit Program (NMTC Program) compliance on its website. This document supersedes the May 2017 publication of the FAQ document by adding, revising, or updating select questions from the earlier edition. Updates include:
- Information on how allocation transfers and QEI reporting is tracked in the CDFI Fund’s Award Management Information System (AMIS), and Allocatee reporting requirements in AMIS;
- A definition of “housing unit” to clarify the forms of affordable housing that can be financed by Allocatees’ Qualified Low-Income Community Investments (QLICIs);
- Clarifying guidance for meeting the small dollar QLICI requirement;
- Information on determining if a project is located in a Food Desert through the use of USDA’s Food Access Research Atlas;
- New guidance for reporting the dissolution of a Community Development Entity (CDE) and on the process for removing a Controlling Entity;
- An alternative means for calculating a homebuyer’s debt-to-income ratio for the purposes of meeting the affordable housing definition; and
- Clarification that 3rd party unaffiliated debt providers to the Qualified Active Low-Income Community Business (QALICB) may use QLICIs to repay debt providers of the associated Qualified Equity Investment (QEI).
The updated FAQ document may found on the NMTC Program webpage (www.cdfifund.gov/nmtc) under the ‘How to Apply’ section by clicking on Step 5: Compliance and Reporting. For questions related to NMTC Program compliance, please contact the Office of Certification, Compliance Monitoring and Evaluation (CCME) by submitting an AMIS Service Request. You may also reach the CCME Helpdesk at ccme@cdfi.treas.gov or at (202) 653-0423.
For further information on the New Markets Tax Credit Program, please visit the CDFI Fund’s website.