CDFI Funding Round to Open This Fall
Treasury Department recognizes CDFI certification application delays are having an impact on CUs.
On Nov. 1, the U.S. Treasury Departments CDFI Fund published a blog post announcing the FY2024 funding round will open up sometime later this fall. All the while, applications for becoming CDFI certified remains on indefinite hold after a series of untold issues have delayed new CDFI certifications for more than a year.
According to the post, the CDFI Program and Native American CDFI Assistance Program (NACA Program) “will consist of funding provided” by the Consolidated Appropriations Act and the upcoming FY 2024 appropriations. That total level of funding is not yet known.
“In addition, the CDFI Fund recognizes that the delay in reopening the CDFI Certification Application submission portal has an impact on those organizations that intend to apply for Certification under the new CDFI Certification Application in time to submit a Financial Assistance (FA) award Application for the upcoming CDFI Program or NACA Program Application round,” the post stated.
The CDFI Fund announced a blackout period for applications in October 2022 while the U.S. Treasury figured out updated application and recertification processes. The new CDFI Certification Application process was scheduled to roll out April 3, but unexplained delays have pushed the blackout period to “an undetermined” amount of time.
Just before the end of October, CUNA officials made a plea to the Senate Banking Committee to help remove the logjam and push Treasury to un-pause the application process.
In a letter to the Senate Committee, CUNA President/CEO Jim Nussle wrote, “The longer Treasury delays finalization of these requirements, the longer communities across the nation miss out on housing and economic opportunities.”
Apparently due to those delays, according to the Treasury’s blog post, the CDFI Fund intends to implement a one-time process change to allow organizations with pending CDFI Certification Applications to apply in the FY 2024 round.
“Typically, the CDFI Fund requires FA Applicants to be Certified CDFIs as of the date the applicable NOFAs are published in the Federal Register,” the post stated. “For this coming round, organizations that are not Certified will have the opportunity to submit their CDFI Certification Application by the date specified in the NOFAs. This shift will allow those organizations seeking CDFI Certification to apply, utilizing the newly revised CDFI Certification Application, and still maintain eligibility to apply for an FA award.”
Details of the newly revised application process have not been published.
READ MORE: The CDFI Fund Impact Blog.