CDFI Seeks Public Comment on Revised Certification of Material Event Form

The Community Development Financial Institutions (CDFI) Fund recently published a notice in the Federal Register of proposed revisions to a Certification of Material Events Form. This form is for use in CDFI Fund assistance, award, allocation, or bond loan agreements for various CDFI programs, including the New Markets Tax Credit program.

Participants in the relevant CDFI programs use this form to indicate a recipient’s or allocatee’s material event, explain the event, and describe the entity’s response to the event. Material events are those that may cause or lead to an entity violating the terms of its award, agreement, regulation, or law. With respect to Certified Community Development Entities (CDEs) and Community Development Financial Institutions (CDFIs), material events are conditions or events that cause an entity to no longer meet one or more certification criteria.

If participants in the relevant programs fail to use this form to report a material event within 30 days of its occurrence, they violate the terms of their agreement. This violation can constitute an event of default or noncompliance with the program. Since default or noncompliance can lead to the loss of program benefits, entities should be mindful of their responsibilities to report material events and comply with other program requirements.

Participants in the following programs, among others, must use this form:

  1. New Markets Tax Credit (NMTC) program
  2. CDFI Bond Guarantee program
  3. Capital Magnet Fund program

The notice calls for public comment on the revisions. All comments are due by April 8, 2022. The CDFI Fund is inviting comments on the following issues:

  1. Whether the collection of information is necessary for the proper performance of the functions of the CDFI Fund, including whether the information shall have practical utility
  2. The accuracy of the CDFI Fund’s estimate of the burden of the collection of information
  3. Ways to enhance the quality, utility, and clarity of the information to be collected
  4. Ways to minimize the burden of the collection of information on respondents, including through the use of technology; and
  5. Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.

Call Savage & Associates Today

If you want to find out more information about NMTCS and similar opportunities that may be available to you, call our offices at 215.880.9441 in Philadelphia or 202.817.3941 in Washington D.C. and schedule a time to speak with us today. You also can find Savage & Associates online 24 hours a day, seven days a week, to learn more about the extensive range of services that we can offer you. Dionne Savage is here to help you access the benefits of economic development tools such as New Markets Tax Credits, Low-Income Housing Tax Credits, C-PACE, and Historic Tax Credits. These programs can give you the resources to revitalize and build up communities across the United States. With our legal advice and your ideas, we can work to achieve the dreams that you have for your community.

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