CDFI Fund Launches New Capacity-Building Initiative

Specialized technical assistance and training to be delivered

Washington, DC - The U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund announced today a Request for Proposals (RFP) for a new Capacity-Building Initiative to greatly expand technical assistance and training opportunities for community development financial institutions (CDFIs) nationwide. This Capacity-Building Initiative will significantly boost the ability of CDFIs to deliver financial products and services to underserved communities nationwide.

"I am excited to announce this new commitment that will enhance direct technical assistance and training to CDFIs to ensure their growth and sustainability in the face of the ongoing economic challenges," said CDFI Fund Director Donna J. Gambrell. "Increasing resources to provide this type of capacity building was a key recommendation of our Community Development Advisory Board and one of many recommendations that has been quickly implemented. I am confident that this effort will not only ensure that the CDFI Fund is best positioned to lead CDFIs through the financial crisis, but also position the entire CDFI industry to expand their lending activities and spur economic growth in distressed communities."

Building on the success of the traditional CDFI Program awards, the new Capacity-Building Initiative will make specialized technical assistance and training resources available industry-wide. Training will cover key issues currently affecting CDFIs and the communities they serve, including affordable housing and business lending, portfolio management, risk assessment, foreclosure prevention, training in CDFI business processes, and assistance with liquidity and capitalization challenges. The Capacity-Building Initiative will also offer direct on-site technical assistance and individualized capacity-building plans in addition to focusing on extending CDFI coverage to underserved communities including a specialized focus in rural areas.

The RFP includes task orders for the following key issues:

• CDFI Solutions for Foreclosure Prevention

  Under this Task Order, the contractor shall provide training and/or technical assistance services to build the capacity of CDFIs to help respond to the nation's foreclosure crisis. The primary objective is to provide participants the capacity to effectively implement foreclosure prevention programs or to strengthen existing programs. This initiative will focus particularly on CDFIs serving communities most affected by the current housing crisis.

  The CDFI Fund seeks contractors who can identify and share critical resources and best practices in foreclosure prevention that are being used by the CDFI industry, CDFI partners or other community development lending institutions. Capacity-building should support the development of financial products, accessing available resources (i.e. financial and technical), and the implementation of development services (post-purchase housing counseling, foreclosure prevention counseling). The CDFI Fund envisions this initiative as complementing, rather than supplementing, existing foreclosure prevention programs.

• CDFI Expansion

  Under this Task Order, the contractor shall provide market research to help the CDFI Fund determine if and how training and/or technical assistance services should be provided to communities hardest hit by the recession. The primary objective is to help the CDFI Fund lay the foundation for a training and technical assistance strategy by: 1) identifying which communities have been the hardest hit by the recession; 2) if a CDFI serves those areas hardest hit; 3) if a CDFI does serve such areas, what kind of capacity building would be most appropriate, if at all; and 4) if a CDFI does not substantially serve the hardest hit areas, what is the extent of the need for such an entity.

  
  The CDFI Fund seeks a contractor(s) who can perform the market research and data analysis in order to achieve the Task Orders primary objective. This will require access to the latest economic and financial indicators used to measure the recession's impact in the nation's communities. It also requires knowledge of the CDFI industry and the role CDFIs play in their communities. Offeror must state how it will define "hardest hit" and demonstrate the research abilities to determine if a CDFI exists in those communities. They must also be able to identify the type of technical assistance and training that would be most useful to a CDFI functioning in the nation's most distressed communities. Furthermore, they must be able to offer recommendations for creating a CDFI if one does not exist in the community and the role CDFIs can play in helping the community regain economic stability.

• Portfolio Management and Risk Assessment

  Under this Task Order, the contractor shall provide training and/or technical assistance services to build the capacity of CDFIs to respond to the nation's economic crisis. The primary objective is to provide participants the capacity to effectively assess the risks in their loan portfolios and manage these risks.

  The CDFI Fund seeks contractors who can identify and share critical resources and best practices in risk assessment and portfolio management that are being used by the CDFI industry, CDFI partners or other community development lending institutions. Contractors should have the capacity to identify subject-matter experts and make them available to CDFIs across the nation to provide direct technical assistance as required. The CDFI Fund envisions this initiative as providing immediate support to enable CDFIs to sustain their operations

• Liquidity and Capitalization

  Under this Task Order, the contractor shall provide market research on: 1) current avenues for capacity and liquidity for CDFIs; 2) barriers to achieving greater capitalization and liquidity; and 3) best prospects for achieving capitalization and liquidity. The contractor shall take the results of this research and implement a program of training and technical assistance to support the capital structure of CDFIs. The contractor may provide support to the Fund in its efforts to improve avenues for capacity and liquidity.

  The CDFI Fund seeks contractor(s) who can perform the market research and data analysis in order to achieve the primary objective of the Task Order. This shall require in-depth knowledge of the CDFI industry and the role CDFIs play in their communities. Offeror must also be able to identify the type of technical assistance and training that would be most useful in producing immediate results. Furthermore, they must be able to offer recommendations to the CDFI Fund regarding its role in improving capital access to CDFIs beyond its current funding programs.

Potential firms or organizations wishing to respond to the RFP can find the solicitation, BPD-CDF-09-CI-0010, posted on FedBizOpps (www.fbo.gov), the Federal government's information clearinghouse for contract opportunities. Additional task orders will be issued in the future.

The CDFI Fund anticipates that the contracts will be awarded this fall and that the technical assistance and training will be available to CDFIs the spring of 2010.

For more information on the CDFI Fund and its programs, please visit www.cdfifund.gov.