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 November 2021 publication of the FAQ document by adding, revising, or updating select questions from the earlier edition. Updates includes:
- Provides additional guidance on how to designate a Qualified Equity Investment (QEI) for Treasury Directive 9600 purposes.
- Emphasizes that the “substantial rehabilitation” threshold for purposes of meeting Section 3.3(h) of the Allocation Agreement is applicable to each building located on such property.
- Reminds Allocatees to maintain documentation for “unrelated” entity assessments required under Section 3.2(d) of the Allocation Agreement.
- Adds language that clarifies the size of a Qualified Low-Income Community Investment, or QLICI, is not a pertinent factor for “generally consistent” evaluation under Section 3.3(i) of the Allocation Agreement.
- Adds guidance for Section 4.13 of the Allocation Agreement that requires Allocatees to adhere to established written policies and procedures in their project selection, underwriting, and due diligence.
- Incorporates and references existing guidance for Section 6.13 of the Allocation Agreement (Qualified Active Low-Income Community Business disclosure) that exists in a separate guidance document.
- Provides new guidance for the removal of a designated Controlling Entity.
- Clarifies that a certain group of Allocatees are exempt from meeting the recently revised Controlling Entity definition.
The updated FAQ document is available on the NMTC Program webpage, http://www.cdfifund.gov/nmtc under Step 5: Compliance and Reporting.
For questions related to NMTC Program compliance, please contact the Office of Compliance Monitoring and Evaluation (OCME) by submitting an AMIS Service Request. You may also reach the OCME Helpdesk at firstname.lastname@example.org or at (202) 653-0423.
For further information on the NMTC Program, please visit the CDFI Fund’s website.
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