[Federal Register: March 10, 2006 (Volume 71, Number 47)]
[Notices]
[Page 12423-12424]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10mr06-161]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Amendment of Notice of Allocation Availability (NOAA) for the CY
2006 Allocation Round of the New Markets Tax Credit Program
AGENCY: Community Development Financial Institutions Fund, Department
of the Treasury.
ACTION: Additional information regarding the administration of New
Markets Tax Credit allocation authority created by the Gulf Opportunity
Zone Act of 2005.
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SUMMARY: The Gulf Opportunity Zone Act of 2005 (GO Zone Act or Act) was
signed into law on December 21, 2005 (Pub. L. 109-135). The GO Zone Act
provides $1 billion of additional New Markets Tax Credit (NMTC)
allocation authority for use by Community Development Entities (CDEs)
with a significant mission of recovery and redevelopment of the Gulf
Opportunity Zone (GO Zone). The Act makes available an additional $300
million in allocation authority for each of the calendar year (CY) 2005
and 2006 allocation rounds and an additional $400 million in allocation
authority for the CY 2007 allocation round. Pursuant to Section
45D(f)(3) of the Internal Revenue Code, the Community Development
Financial Institutions (CDFI) Fund will carry over the CY 2005
allocation authority to the CY 2006 allocation round that was announced
by the Notice of Allocation Availability published on July 15, 2005 (70
FR 41075), as amended on September 14, 2005 (70 FR 54446) (together,
the NOAA), such that an additional $600 million in allocation authority
will be available for allocation to applicants in the CY 2006 round of
the NMTC Program that satisfy the GO Zone allocation eligibility
requirements set forth below.
Go Zone Allocation Eligibility: Through this notice, the CDFI Fund
is not soliciting, nor will it accept, any new applications for the CY
2006 NMTC Program allocation round. To be eligible to receive an
allocation from the $600 million of GO Zone allocation authority
available in the CY 2006 NMTC Program allocation round, an applicant
must meet all of the following criteria:
(i) The applicant must have submitted an allocation application by
the deadline required by the NOAA (or by any deadline extension
authorized by the CDFI Fund);
(ii) The applicant must have satisfied all eligibility requirements
contained in the NOAA (including minimum scoring thresholds set forth
in section V.B of the NOAA); and
(iii) The applicant must have a significant mission of recovery and
redevelopment of the GO Zone. In order to demonstrate a ``significant
mission of recovery and redevelopment of the GO Zone,'' a CDE must
have, at a minimum: (A) Indicated (in its response to Question
12 of the allocation application) that the GO Zone is included
within its particular geographic service area; (B) specified (in its
response to Question 29 of the allocation application) that it
intends to target activities to Low-Income Communities in certain
Federal Emergency Management Agency (FEMA)-declared disaster areas; and
(C) demonstrated to the satisfaction of the CDFI Fund that it has
significant resources in the GO Zone to support its recovery and
redevelopment efforts and a significant track record of providing
financing and related services in the GO Zone.
[[Page 12424]]
The GO Zone is defined in the GO Zone Act as ``that portion of the
Hurricane Katrina disaster area determined by the President to warrant
individual or individual and public assistance from the Federal
Government under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of Hurricane Katrina'' (Pub. L. 109-135,
Section 101). The Hurricane Katrina Disaster Area is defined as ``an
area with respect to which a major disaster has been declared by the
President before September 14, 2005, under section 401 of such Act by
reason of Hurricane Katrina'' (Pub. L. 109-135, Section 101).
The CDFI Fund will contact each CY 2006 NMTC applicant that
satisfies items (iii)(A) and (B) above, and ask each such applicant to
submit responses to a supplemental questionnaire that will help the
CDFI Fund evaluate whether the applicant has a significant mission of
recovery and redevelopment in the GO Zone. Such applicants must provide
the CDFI Fund with responses to the supplemental questionnaire by the
deadlines established by the CDFI Fund; failure to meet said deadlines
will result in a determination of ineligibility for a GO Zone
allocation.
After the CDFI Fund confirms that the GO Zone is included within an
applicant's particular geographic service area and that the applicant
intends to target activities to Low-Income Communities in certain FEMA-
declared disaster areas, then the CDFI Fund reviewers will rate (i)
whether the applicant has significant resources in the GO Zone to
support its recovery and redevelopment efforts and (ii) the applicant's
track record of providing financing and related services in the GO
Zone.
In assessing whether the applicant has significant resources in the
GO Zone to support its recovery and redevelopment efforts, reviewers
will consider, among other things, the applicant's (or its Controlling
Entity's) current physical presence in the GO Zone. In assessing an
applicant's track record of providing financing and related services in
the GO Zone, reviewers will consider, among other things, the
applicant's (or its Controlling Entity's) track record of providing
financing products and services in the GO Zone over the past five
years.
Go Zone Allocation Determinations: The CDFI Fund will evaluate and
score all applications, rank all applicants, and make final allocation
determinations in accordance with the policies and procedures set forth
in section V.B of the NOAA and this amendment. Final allocation
determinations for the $3.5 billion in allocation authority described
in the NOAA will be awarded prior to allocation determinations for the
$600 million in GO Zone allocation authority. After the CDFI Fund has
made its final allocation determinations for the $3.5 billion
allocation authority, it will make final allocation determinations for
the GO Zone allocation authority in rank order of score, with priority
to those applicants that were rated as having the strongest significant
mission of recovery and redevelopment of the GO Zone but were not
selected to receive an allocation under the initial $3.5 billion of
allocation authority. If allocation authority is still available, the
CDFI Fund may provide additional GO Zone allocation authority to
eligible applicants that were selected to receive an allocation from
the initial $3.5 billion, provided the CDFI Fund determines that they
have the capacity to administer additional allocation authority in the
GO Zone. Unallocated GO Zone allocation authority, if any, will be
carried over to the CY 2007 round of the NMTC Program, pursuant to IRC
45D(f)(3).
Go Zone Allocation Agreement Terms: All CDEs that are awarded GO
Zone allocation authority will be required, as a condition of their
allocation agreements with the CDFI Fund, to invest 100 percent of the
Qualified Low-Income Community Investments (QLICIs) from the GO Zone
allocation in the GO Zone. In addition, GO Zone CDEs will be required
to maintain accountability to the GO Zone through their advisory or
governing board representation. Additional terms and conditions for GO
Zone allocation authority will be set forth in the allocation
agreements.
All other information and requirements set forth in the NOAA shall
remain effective, as published.
FOR FURTHER INFORMATION, CONTACT: Applications and other information
regarding the Fund and its programs may be obtained from the Fund's Web
site at http://www.cdfifund.gov. The Fund may post on its website
additional information regarding the special GO Zone allocation
authority. Applicants may contact the CDFI Fund with questions or to
obtain technical assistance regarding the GO Zone allocation authority
as follows:
A. Information technology support: Technical support can be
obtained by calling (202) 622-2455 or by e-mail at
ithelpdesk@cdfi.treas.gov. These are not toll free numbers.
B. Programmatic support: If you have any questions about the
programmatic requirements of this NOAA amendment, contact the Fund's
NMTC Program Manager by e-mail at cdfihelp@cdfi.treas.gov, by telephone
at (202) 622-6355, by facsimile at (202) 622-7754, or by mail at CDFI
Fund, 601 13th Street, NW, Suite 200 South, Washington, DC 20005. These
are not toll-free numbers.
C. Administrative support: If you have any questions regarding the
administrative requirements of this NOAA amendment, contact the Fund's
Grants Manager by e-mail at grantsmanagement@cdfi.treas.gov, by
telephone at (202) 622-8226, by facsimile at (202) 622-6453, or by mail
at CDFI Fund, 601 13th Street, NW., Suite 200 South, Washington, DC
20005. These are not toll free numbers.
D. IRS support: For questions regarding the tax aspects of the NMTC
Program, contact Branch Five, Office of the Associate Chief Counsel
(Passthroughs and Special Industries), IRS, by telephone at (202) 622-
3040, by facsimile at (202) 622-4753, or by mail at 1111 Constitution
Avenue, NW., Attn: CC:PSI:5, Washington, DC 20224. These are not toll
free numbers.
E. Legal counsel support: If you have any questions or matters that
you believe require response by the Fund's Office of Legal Counsel,
please refer to the document titled ``How to Request a Legal Review,''
found on the Fund's Web site at http://www.cdfifund.gov.
Authority: 26 U.S.C. 45D; 31 U.S.C. 321; 26 CFR 1.45D-1.
Dated: March 3, 2006.
Arthur A. Garcia,
Director, Community Development Financial Institutions Fund.
[FR Doc. E6-3372 Filed 3-9-06; 8:45 am]
BILLING CODE 4810-70-P