CDFI Fund Will Not Meet April 3 Deadline to Reopen Application Process
Blackout period to be extended to review public comments, consider further changes.
The Treasury Department’s CDFI Fund needs more time to develop its new application and certification process, and will not meet its self-imposed April 3 deadline for reopening that process, fund officials announced Tuesday.
Instead, a new timeline for resuming the processing of applications will be announced “in the near future.”
“The CDFI Fund has been deliberate in its efforts to update the CDFI Certification process and will continue with that approach by carefully reviewing all public comments received in response to the latest request for public comments,” fund officials said. “While a lengthy delay should not be necessary, the time needed to deliberate on these comments and further adjust the application materials will require the CDFI Fund to postpone the launch of the new application and its associated reporting tools beyond the previously anticipated April timeline.”
The CDFI Fund has been under fire from both credit union and banking trade groups, along with members of Congress, over their efforts to update the application and certification process. Most recently, the leaders of the Senate Community Development Finance Caucus questioned whether fund and Treasury Department officials were circumventing certain regulatory steps by using the Paperwork Reduction Act to speed up the process.
Fund officials noted that the most recent version of the application was developed after six years of consideration and two previous requests for public comment.
More Potential Changes Coming
The officials further revealed they are continuing to review comments on the proposed application and are considering additional changes, for which they did not offer any details. They did however say they will provide stakeholders with time to review the new application before it becomes effected.
Additionally, the fund said that once the new application is implemented, all currently certified CDFIs will be provided a grace period to achieve compliance with the new regulations.