Supporting Statement for CDFI FA TA Application.2009 renew

Supporting Statement

Community Development Financial Institutions Program Application

OMB Approval Number 1559-0021

A. Justification

1. Circumstances necessitating collection of information

Pursuant to the Community Development Banking and Financial Institutions Act of 1994 (the Act), as amended (12 USC 4701 et seq.), the Community Development Financial Institutions (CDFI) Program, Financial Assistance (FA) and Technical Assistance (TA)_Programs provide financial and technical assistance to selected applicants, Community Development Financial Institutions (CDFIs), in order to enhance their ability to make loans and investments and provide services for the benefit of designated investment areas and targeted populations. Form CDFI 0001 (attached) will be used by applicants to apply for this assistance. The information collected will be used to select awardees, based on a merit-based selection process. The requested information is required by the CDFI Program Regulations (12 CFR Part 1805) and respective Notice of Funds Availability.

2. Method of collection and use of data

The CDFI Fund will collect data once per funding round by means of an application. Applicants must complete and upload the application and all attachments (including legal certifications, eligibility forms, narrative answers, and financial information) via Grants.gov or through their myCDFIFund Account – the CDFI Fund’s database maintained for every applicant. All Application materials use Microsoft (MS) Word or Microsoft Excel templates, which will allow greater ease for collecting and compiling data into a database. The CDFI Fund uses the data collected to select eligible applicants that are the most highly qualified and to determine the applicable award amounts.

3. Use of Information Technology

Only electronic applications are accepted unless the Applicant receives advance permission from the CDFI Fund to submit otherwise. All Application materials use MS Word or MS Excel templates.

4. Efforts to identify duplication

The CDFI Fund requests information from applicants which is likely to be readily available and in a convenient form.

5. Impact on small entities

This application is not expected to have significant impact on small entities.

6. Consequences of less frequent collection and obstacles to burden reduction

The CDFI Fund cannot meet its statutory requirement to make funding decisions based on data received from applicants without the application. Elements specified in the Act and the CDFI Program Regulations limit the extent to which the burden can be reduced.

7. Circumstances requiring special information collection

The CDFI Fund requires Applicants to submit information on their Target Market through the Community Investment Mapping System (CIMS). This system allows the Applicant to enter decennial census data into CIMS, which helps determine if the communities they serve or intend to serve are qualified census tracts under the CDFI Program. This effort was in place with prior applications and does not change with this application.

8. Solicitation of comments on information collection

In accordance with the Paperwork Reduction Act of 1995, the Treasury Department published a notice in the Federal Register regarding the Financial Assistance and Technical Assistance Application of the CDFI Program on March 3, 2009, Volume 74, and page 9334. Please see Attachment A for the comments that were received and an explanation as to how they will be addressed in the revised application, which will be submitted for Paperwork Reduction Act review during FY 2010.

9. Provision of payment to respondents

No payments or gifts will be made to respondents.

10. Assurance of confidentiality

The CDFI Fund is subject to all applicable Federal regulations with respect to confidentiality of information supplied in the application process. The CDFI Fund provides assurances of confidentiality to applicants.

11. Justification of sensitive questions.

No questions of a sensitive nature are asked in the application form.

12. Estimate of the hour burden of information collection.

Application for Financial Assistance and Technical Assistance Program (Form 0001): 200 respondents x 1 response annually x 100 hours per respondent = 20,000 hours

(185 not-for-profit respondents and 15 business and for-profit respondents)

13. Estimate of total annual cost burden to respondents

It is not expected that this information collection will have a cost burden to respondents other than the hour burden described in item number 12. No purchases of equipment or services will need to be made by respondents for the sole purpose of completing the application.

14. Estimate of annualized cost to the Government

The primary costs to the Government are the review of the applications.

15. Any program changes or adjustments

The CDFI Fund expects to make further changes to clarify guidance, improve the format of the application and reduce the paperwork burden when it submits a revised application, which will be submitted for Paperwork Reduction Act review during FY 2010.

16. Plans for information tabulation and publication

The information collected through this application form will not be published.

17. Reasons for not displaying expiration date of OMB approval

The CDFI Fund intends to display the expiration date of the OMB approval on the application form.

18. Explanation of exceptions to certification statement

Not applicable.

Collections of Information Employing Statistical Methods

Not applicable.

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