Request for Public Comment: Annual Certification and Data Collection Report and Abbreviated Transaction Level Report

The Office of Management and Budget (OMB) has published a request for a final round of comment on revisions to the Community Development Financial Institutions Fund’s (CDFI Fund’s) Annual Certification and Data Collection Report (ACR) and abbreviated Transaction Level Report (TLR). This comment period offers the public an opportunity to provide input on further modifications proposed to the ACR and the updated methods for collecting transactional level data from all Certified CDFIs.

The CDFI Fund initially solicited comments on annual reporting requirements and data collection tools for Certified CDFIs in May 2020. Since then, additional revisions have been made to the ACR and the CDFI Fund’s data collection tools to coincide with the proposed new CDFI Certification Application.

View the Federal Register notice for the full request for public comment and instructions on how to submit feedback. Comments must be submitted by January 13, 2023 to be considered.

Transactional Level Reporting Modifications

Currently, transaction level reporting is only required in accordance with award compliance. Under the new Certification policies, transaction level reporting will be required for verification of Target Market activity thresholds. However, the CDFI Fund is making a departure from what was proposed in May 2020. Specifically, the CDFI Fund is no longer proposing the creation of a separate “Certification Transaction Level Report (CTLR).” Instead, the CDFI Fund is now proposing that all CDFIs will be required to submit a version of the existing TLR where the number of required data fields will vary by award status.

The CDFI Fund is moving forward with the Financial Services Table and Loan Purchases Table, which were originally proposed as part of the CTLR. These two new objects will be implemented as components to the existing TLR and available for completion based on applicability.

The TLR’s Consumer Loan Report (CLR), which is currently only completed by credit unions and banks, now will require regulated entities to report loan counts and dollar amounts for individual Other Targeted Population (OTP) categories. Data in the CLR will continue to be reported at the aggregated census tract level.

Any geocoding of transactions, whether Financial Products or Financial Services, will be done through the existing CDFI TLR Address Report.

Certification Application

New CDFI Certification Applicants will complete and submit an abbreviated version of the existing Community Development Financial Institutions Program (CDFI Program) or Native American CDFI Assistance Program (NACA Program) TLR prior to the submission of their CDFI Certification Application. This abbreviated TLR will be used to assess applicable Target Market percentage benchmarks in the Applicant’s proposed Target Market(s). Applicants must report on origination activity for their most recently completed fiscal year prior to the submission of their Application.

Annual Certification and Data Collection Report

In order to maintain their Certification status, Certified CDFIs must demonstrate compliance with the Target Market percentage benchmarks each fiscal year. The ACR will use submitted TLR data to confirm Target Market activity. Certified CDFIs will be required to submit their TLR records prior to their ACR submission.

Full details about the proposed TLR requirements can be found in the Related Materials section below.

Annual Certification and Data Collection Report Modifications

Currently, all Certified CDFIs are required to complete an ACR on an annual basis in order to maintain their Certification status, unless otherwise determined by the CDFI Fund. The ACR is due 90 days after the end of a Certified CDFI’s most recently completed fiscal year. Failure to file the required ACR may result in a loss of Certification status and may lead to additional sanctions for CDFIs that are program Recipients. In addition to allowing the CDFI Fund to annually assess CDFIs’ compliance with Certification guidelines, the ACR also collects data that provides insights into the CDFI industry.

To coincide with the revisions outlined in the new CDFI Certification Application, the CDFI Fund has made further changes to the ACR since its original 2020 proposed revisions. This will ensure that existing CDFIs are being held to the same evaluation, benchmarks, and review criteria as newly Certified CDFIs. For example:

• The deadline for organizations to submit their ACR will be extended. Certified CDFIs will be required to submit their ACR within 180 days of the end of their fiscal year.
• In order to answer the ACR’s Target Market activity questions, a Certified CDFI will use its TLR submission for the same reporting period. A Certified CDFI that fails to meet the Target Market benchmark over its most recently completed fiscal year may maintain its Certification by demonstrating that it met the benchmark over a three-year period through the last day of its most recently completed fiscal year.
• Certified CDFIs will be required to complete three new tables as part of the ACR:
  • Source of Investment Capital Table
  • Contributed Operating Revenue Table
  • Loans and Leases Table
• Expansion of the use of federal regulator call report data to populate data in the Financial Data section as well as the Loans and Leases Table for Banks, Credit Unions, and Depository Institution Holding Companies.
• Certified CDFIs will report on any annual changes in the demographic make-up of their Board and Executive Staff through the ACR.
• The ACR’s Responsible Financing section will have questions whose answers may result in a Certified CDFI not being eligible for CDFI Certification renewal.
• The ACR will have a series of questions to determine whether a Certified CDFI can retain its Native CDFI Designation or become newly designated.

Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/PRAMain.

Additional details are contained in the CDFI Fund Annual Certification and Data Collection Report Form and Instructions provided in the Related Materials section below. For information about revisions to the proposed CDFI Certification Application, including updated CDFI Certification Application Frequently Asked Questions, visit the CDFI Certification, ACR & CTLR Reporting Revisions page.

Related Materials:

• Federal Register Notice
• CDFI Fund Annual Certification and Data Collection Report & Instructions (For Comment)
• Abbreviated CDFI Transaction Level Report Form for CDFI Certification Applicants and Certified CDFIs that are not current Financial Assistance (FA) Recipients Form & Data Point Guidance (For Comment)
• CDFI Certification Application & Data Collection Reporting Revisions Page