July 7 -- The Community Development Financial Institutions Fund (CDFI Fund), Department of the Treasury requests comments from the public regarding methods by which it can enhance and improve the impact of the Capital Magnet Fund; streamline or minimize the administrative burden on Capital Magnet Fund applicants and award recipients; as well as safeguard public funds. Information provided in response to this Request will allow the CDFI Fund to consider the development of policies and programs that better support and expand Capital Magnet Fund activities to spur investment in affordable housing and related economic development efforts that serve low-income families and communities. Written comments must be received on or before September 5, 2023.
The Capital Magnet Fund (CMF) was established through the Housing and Economic Recovery Act of 2008 (HERA), Public Law 110–289, section 1131. Per the statute, the allocations to the Capital Magnet Fund are to be used to carry out a competitive grant program administered by the CDFI Fund.
HERA requires Fannie Mae and Freddie Mac to set aside an amount equal to 4.2 basis points for each dollar of their unpaid principal balances of total new business purchases to be allocated to the Housing Trust Fund (administered by the Department of Housing and Urban Development) and the Capital Magnet Fund.
Through CMF, the CDFI Fund is authorized to make grants to Certified Community Development Financial Institutions (CDFIs) and Nonprofit Organizations (if one of their principal purposes is the development or management of affordable housing). CMF Awards must be used to attract private financing for and increase investment in: (1) the Development, Preservation, Rehabilitation, and Purchase of Affordable Housing for primarily Extremely Low-, Very Low-, and Low-Income Families; and (2) Economic Development Activities which, In Conjunction with Affordable Housing Activities, will implement a Concerted Strategy to stabilize or revitalize a Low-Income or Underserved Rural Area.
The purpose of this Request for Information (RFI) is to solicit public input related to CMF. Specifically, the goals of this RFI are: (1) to clarify terms, concepts, and requirements of the CMF program to improve CMF Recipients' understanding of their obligations and requirements under the program; (2) to ensure the CMF Program requirements adequately address activities and current business practices in the affordable housing industry; (3) to identify opportunities to reduce the burden of administering CMF Awards for CMF Recipients while ensuring accountability; (4) to identify opportunities to better align the CMF program with the rules, terms, practices, and definitions of other significant federal funding sources for affordable housing, as a way to facilitate compatibility and reduce CMF Recipient burden; and (5) to determine how the CMF Program can better promote and incorporate policy priorities such as economic development in conjunction with affordable housing and affordable homeownership.
Specific Information Requested . . .
FRN:
https://www.federalregister.gov/d/2023-14407
