Through the FEC Pilot Program, the CDFI Fund shall provide grants to Eligible Organizations to enable them to provide a range of financial education and counseling services to prospective homebuyers, with the goals of:
- increasing the financial knowledge and decision-making capabilities of prospective homebuyers;
- assisting prospective homebuyers to develop monthly budgets, build personal savings, finance or plan for major purchases, reduce their debt, improve their financial stability, and set and reach their financial goals;
- helping prospective homebuyers to improve their credit scores by understanding the relationship between their credit histories and their credit scores; and
- educating prospective homebuyers about the options available to build savings for short- and long-term goals.
The ultimate program goals of the FEC Pilot Program are to identify successful methods resulting in positive behavioral change for financial empowerment, and to establish program models for organizations to carry out effective financial education and counseling services to prospective homebuyers.
Funding can be requested for all expenses related to the administration, operation and implementation of a FEC Pilot program, which include but are not limited to personnel, professional services, materials and supplies, equipment and capital expenditures, other program expenses, and indirect expenses that support the program and staff - provided that no more than 15 percent of the funds may be used to support such indirect expenses. FEC Pilot Program grant funds are intended to offer financial support for the Applicant to implement the strategies outlined in this Application. Please refer to the FY 2009 FEC Pilot Program NOFA (coming soon) for additional information regarding use of funds.
In addition to meeting the criteria as outlined in the FY 2009 FEC Pilot Program NOFA, all Applicants are required to submit an online Applicant Eligibility Questionnaire with their Application via their myCDFIFund account.
In order to be deemed an Eligible Organization, the Applicant entity must be a certified CDFI, a U.S. Department of Housing and Urban Development (HUD) approved Housing Counseling Agency, a Credit Union, a governmental entity (State government, Local government or Tribal government), or a collaborative effort of two or more such entities.
In addition, the Applicant entity must demonstrate that it meets certain minimum threshold requirements with respect to its experience and ability to provide Financial Education and Counseling Services resulting in documented Positive Behavioral Changes to Prospective Homebuyers. Specifically, the Applicant must certify that:
- it has provided Financial Education and Counseling Services for a period of at least three years immediately prior to the Application deadline;
- it has at least two full time equivalent position dedicated to the development and/or delivery of Financial Education and Counseling Services;
- it has provided Financial Education and Counseling Services to at least 100 Potential Homebuyers in the past year, or has served an average of at least 150 clients per year over the past three years, and subsequently tracked Positive Behavioral Change outcomes with respect to such services; and
- it has independent budget resources of at least $50,000 currently available for the provision of Financial Education and Counseling Services.
These certifications will be made as part of the Applicant Information Questionnaire. Applicants that cannot provide these certifications will be deemed not to have the minimum requisite experience and ability to administer an award under the FEC Pilot Program, and will not be eligible for FEC Pilot Program awards.