Request for Public Comment: Community Development Financial Institution (CDFI) Certification Application
The U.S. Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently, the Community Development Financial Institutions Fund (CDFI Fund), U.S. Department of the Treasury, is soliciting comments concerning the CDFI Certification Application.
In December 2023, the CDFI Fund released a revised version of the CDFI Certification Application to ensure its CDFI Certification policies and procedures meet statutory and regulatory requirements, are responsive to the evolving nature of the CDFI industry, and protect government resources. After reviewing close to 1,400 CDFI Certification Applications since the release of the revised requirements, the CDFI Fund is seeking public comment on additional changes to the CDFI Certification Application, related tools, and policies. These changes will align the CDFI Certification Application and policies with the Administration’s Executive Orders and efforts to reduce waste, fraud, and abuse within federal programs.
The CDFI Fund invites comments on: (a) whether the collection of information is necessary for the proper performance of the functions of the CDFI Fund, including whether the information shall have practical utility; (b) the accuracy of the CDFI Fund’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
The proposed Application changes also include improvements to streamline and improve the application experience for organizations seeking to be Certified as a CDFI. For example, the CDFI Fund proposes eliminating the Accountability section of the Application. In order to be a Certified CDFI, entities will no longer be required to have approved board membership accountability to each proposed Target Market. Instead, Accountability will be assessed through an entity’s financial product and financial services activity in their proposed Target Markets.
In addition, the CDFI Fund requests comments in response to proposed changes to eligible Target Market types; the timing and availability of the CDFI Certification Application; efforts to target fraud, waste, and abuse in federal programs; revisions to Application questions and attachments; and eligibility requirements for CDFI Certification. The full list of questions for public comment is included in the Federal Register notice.
Comments must be submitted in writing by 60 days after the date of publication of the Federal Register notice via the Federal eRulemaking Portal at www.regulations.gov.
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