CDFI Fund Proposes Substantial Changes to Certification Application
Dafina Williams
The CDFI Fund is accepting comments on the proposed changes to the CDFI certification application, the first major changes in certification policy since the inception of the CDFI Fund. The proposed changes to the application come more than three years after the Fund released a Request for Information on CDFI certification policies.
Many of the changes to the certification policy are substantive, including:
- Requiring certain subsidiaries and affiliates to have a primary mission of community development
- Requiring applicants to demonstrate commitment to responsible lending practices
- Removing geographic boundaries for certain Target Markets
- Changing accountability requirements for governing and advisory boards
- Transaction level reporting for new certification applicants and certified CDFIs that are not current Financial Assistance awardees
The CDFI Fund has shared resources to explain the changes on its website, including summary documents and webinars.
Comments are due to the CDFI Fund by November 5, 2020. OFN is interested in collecting feedback from the CDFI industry on the proposed changes to inform our comments. If you would like to provide feedback on the proposed changes, email Dafina Williams, SVP, Public Policy by October 23, 2020.