Notice and Request for Information-Opportunities and Challenges in Federal Community Investment Programs

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Published

October 4, 2022

Issuing agencies

Treasury Department

Abstract

The Interagency Community Investment Committee (ICIC) is focused on the operations and execution of federal programs that facilitate the flow of capital and the provision of financial resources into historically underserved communities, including communities of color, rural communities, and Tribal nations. The ICIC is composed of representatives from the Department of the Treasury (Treasury), Small Business Administration (SBA), Department of Commerce (Commerce), Department of Transportation (DOT), Department of Housing and Urban Development (HUD), and Department of Agriculture (USDA), (collectively, the Agencies). The Agencies invite the public to comment on how the ICIC can promote economic conditions and systems that reduce racial disparities and produce stronger economic outcomes for all communities. Responses may be used to inform ICIC's future actions to improve the operations and delivery of federal community investment programs through stronger federal collaboration.

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<title>Federal Register, Volume 87 Issue 191 (Tuesday, October 4, 2022)</title>
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[Federal Register Volume 87, Number 191 (Tuesday, October 4, 2022)]
[Notices]
[Pages 60236-60239]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21524]

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DEPARTMENT OF THE TREASURY

Notice and Request for Information--Opportunities and Challenges
in Federal Community Investment Programs

AGENCY: Department of the Treasury (Treasury), Small Business
Administration (SBA), Department of Commerce (Commerce), Department of
Transportation (DOT), Department of Housing and Urban Development
(HUD), and Department of Agriculture (USDA), (collectively, the
Agencies).

ACTION: Request for Information.

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SUMMARY: The Interagency Community Investment Committee (ICIC) is
focused on the operations and execution of federal programs that
facilitate the flow of capital and the provision of financial resources
into historically underserved communities, including communities of
color, rural communities, and Tribal nations. The ICIC is composed of
representatives from the Department of the Treasury (Treasury), Small
Business Administration (SBA), Department of Commerce (Commerce),
Department of Transportation (DOT), Department of Housing and Urban
Development (HUD), and Department of Agriculture (USDA), (collectively,
the Agencies). The Agencies invite the public to comment on how the
ICIC can promote economic conditions and systems that reduce racial
disparities and produce stronger economic outcomes for all communities.
Responses may be used to inform ICIC's future actions to improve the
operations and delivery of federal community investment programs
through stronger federal collaboration.

DATES: Responses must be received by December 5, 2022 to be assured of
consideration.

ADDRESSES: Please submit comments electronically through the Federal
eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. All comments should be
captioned with ``Community Investment Request for Information
Comments.'' Please include your name, organization affiliation,
address, email address, and telephone number in your comment. Where
appropriate, a comment should include a short executive summary. In
general,

[[Page 60237]]

comments received will be posted on <a href="http://www.regulations.gov">http://www.regulations.gov</a> without
change, including any business or personal information provided.
Comments received, including attachments and other supporting
materials, will be part of the public record and subject to public
disclosure. Do not enclose any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.

FOR FURTHER INFORMATION CONTACT: Please contact Viraj Parikh, Phone
Number: 202-923-5161, or <a href="/cdn-cgi/l/email-protection#024d5052416d6f6f776c6b767b46677450444b42767067637177707b2c656d74"><span class="__cf_email__" data-cfemail="88c7dad8cbe7e5e5fde6e1fcf1ccedfedacec1c8fcfaede9fbfdfaf1a6efe7fe">[email&#160;protected]</span></a>. Further
information may be obtained from the Treasury website detailing the
initiative.

SUPPLEMENTARY INFORMATION:
Purpose: This Request for Information (RFI) offers the public the
opportunity to provide information on effective approaches for
supporting access to affordable capital and financial services in
historically underserved communities, including communities of color,
rural communities, and Tribal communities. Specifically, the ICIC \1\
would like to understand (1) examples of successful projects that have
blended different sources of public, private and philanthropic capital
that may have been more difficult to accomplish or realize the full
impact because of federal program requirements; and (2) how agencies
can, to the extent feasible under the requirements governing the
deployment of federal funds, support financial intermediaries that
serve these communities such as Community Development Financial
Institutions (CDFIs), Minority Depository Institutions (MDIs), credit
unions, and other community financial institutions.\2\
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\1\ Treasury is providing administrative support to the ICIC.
\2\ For the purposes of this RFI, community financial
institutions are intended to mean community development financial
institutions (CDFIs), minority depository institutions (MDIs),
community banks and credit unions as well as any other mission
focused lender or investor that provides capital in low-to-moderate
income communities and historically underserved populations.
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Background: The Biden-Harris Administration is deploying trillions
of dollars of public-sector investment authorized through programs
under the American Rescue Plan Act of 2021 (ARP), Bipartisan
Infrastructure Law (BIL), Consolidated Appropriations Act, 2021, the
bipartisan CHIPS and Science Act (CHIPS) and the Inflation Reduction
Act (IRA). These transformational investments present an opportunity to
implement federal service delivery solutions that will support
catalytic growth in historically underserved communities and address
racial and geographic economic disparities.
The Agencies implement multiple community investment programs with
the aim of investing in communities, businesses, neighborhoods, and
households that are underserved with respect to access to affordable
capital and financial services, and that experience economic
disparities that limit their financial stability and economic mobility.
Today, agencies have an opportunity to assess, within community
investment programs' statutory frameworks, how best to facilitate
constructive alignment and flexibility to incentivize private sector
investment leveraging this historic opportunity for catalytic growth.
In addition, both research and practice over the past decade have
informed our understanding of how to most effectively advance economic
mobility among underserved populations, recognizing that needs and best
practices may vary based on population, local economic circumstances,
Tribal history, and other key factors. There is an opportunity to
integrate these lessons in a consistent manner across federal programs,
as well as offer a framework to guide private sector resources toward
areas of historic underinvestment.
How to Comment: This RFI is only for information and planning
purposes and should not be construed as an obligation on the part of
the Agencies. We ask respondents to address the Key Questions listed
below. You do not need to address every question and should focus on
those where you have views or relevant expertise. Please clearly
indicate which questions you are addressing in your response. You may
provide detailed responses and examples. All comments received,
including attachments and other supporting materials, are part of the
public record and subject to public disclosure. You should only submit
information that you wish to make publicly available.
The ICIC is focused on four key areas of substantive focus to
promote economic conditions that reduce racial disparities and produce
stronger economic outcomes for all communities:
(1) Strengthening the capacity of community financial institutions
such as CDFIs, MDIs, Revolving Loan Funds (RLFs), community banks and
credit unions as well as any other mission-focused lender or investor
that provides capital in low- to moderate-income communities and to
historically underserved populations;
(2) Starting and scaling small businesses among historically
underserved communities, especially minority entrepreneurship;
(3) Broadening financial inclusion and provision of financial
services among historically underserved communities; and
(4) Investing in community facilities and infrastructure to improve
access to assets and resources that bolster economic mobility and
generate community wealth.
To assist with responding to RFI questions, a brief but non-
exhaustive list of agency programs within the key areas of substantive
focus are listed at the end of this RFI.

Key Questions

1. Please describe examples of best practices and lessons learned
from community investment projects that have layered a mix of public,
private, and/or philanthropic capital. How could these projects have
been more impactful or more cost effective to implement? In responding
to this question, examples may address any of the four substantive
areas of focus described in this RFI: (1) strengthening the capacity of
community financial institutions; (2) supporting small businesses and
entrepreneurship; (3) improving financial health and inclusion; and (4)
investing in community facilities and infrastructure. In addition, a
non-exhaustive list of example programs is provided in the appendix of
this RFI as a reference.
2. From the examples provided in response to question 1, what
specific changes could agencies consider to facilitate the layering of
federal funds to attract greater private follow-on funding, as they
implement new community investment programs and contemplate
modifications to others?
3. As agencies are implementing new programs under recent CHIPS and
IRA legislation, how can they best incorporate these lessons to
streamline design and delivery, as well as ensure historically
underserved communities benefit from federal funds?
4. Community financial institutions play a critical role in
providing safe, affordable capital and financial services to
historically underserved communities. How can federal agency
coordination help build the capacity of these organizations to serve
their communities?
5. What specific changes to federal credit or securitization
programs could facilitate additional private investment in community
financial institutions, and what are the most important existing
limitations of these programs that may prohibit additional scale that
could be achieved?

[[Page 60238]]

6. How can the Agencies incentivize or structure data collection
and reporting to promote increased private sector and philanthropic
investment in community financial institutions?
7. How can further alignment of and coordination between federal
agencies in the four areas of substantive focus result in stronger
outcomes with regards to reducing racial economic disparities,
improving financial security and economic mobility, and generating
broadly shared economic opportunity?
8. What data should the Agencies consider collecting to better
understand and report the impact of community investments in reducing
racial, gender, and geographic, or other economic disparities?
9. How can the Agencies collaborate on providing technical
assistance, opportunities for peer-to-peer learning, and other non-
financial resources to support the deployment of capital or
implementation of community-serving projects in historically
underserved communities?
10. Please describe best-in-class examples of how federal technical
assistance has been best implemented through public-private
partnerships.

Jessica Milano,
Chief Program Officer, Office of Recovery Programs.

Appendix

I. Strengthen Community Financial Institutions

Programs that support CDFIs, MDIs, credit unions, and community
banks with assets less than $1 billion:

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------------------------------------------------------------------------
Commerce.......................... EDA Build to Scale, EDA Revolving
Loan Funds.
DOT............................... Thriving Communities,* Reconnecting
Communities.
HUD............................... Federal Housing Administration,
Ginnie Mae, Section 108, HOME
Investment Partnership, Housing
Trust Fund.
Treasury.......................... Emergency Capital Investment Fund
(ECIP), CDFI Fund, State Small
Business Credit Initiative (SSBCI).
SBA............................... Community Advantage, Microloan
programs, 7(a) Loan Program, 504
Loan Program, Program for
Investment in Micro-Entrepreneurs
(PRIME) grants.
USDA.............................. RD B&I loan program, RD Community
Facilities Program, Intermediary
Relending Program, Rural Business
Development Grants, Rural
Microentrepreneur Assistance
Program.
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II. Increase Small Business Creation, Growth, and Profitability

Programs that support small business access to capital (debt &
equity), technical assistance for entrepreneurs, contracting:

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Commerce.......................... Minority Business Development Agency
(MBDA) programs:
<bullet> SSBCI Technical
Assistance Program.
<bullet> National Business Center
Network Program.
<bullet> Specialty Centers.
<bullet> American Indian, Alaska
Native, and Native Hawaiian
Projects.
<bullet> Enterprising Women of
Color Program.
<bullet> Entrepreneurship
Education for Formerly
Incarcerated Persons Pilot.
<bullet> Minority Colleges and
University Pilot.
<bullet> MBE Equity Multiplier
Project.
<bullet> Inner City Innovation
Hub Pilot.
EDA Build to Scale, EDA Revolving
Loan Funds.
DOT............................... Railroad Rehabilitation and
Improvement Financing (RRIF),
Transportation Infrastructure
Finance and Innovation Act (TIFIA),
Small Business Transportation
Resource Centers.*
HUD............................... Community Development Block Grant,
Section 3.
Treasury.......................... ECIP, CDFI Fund, SSBCI.
SBA............................... All programs.
USDA.............................. Rural Microentrepreneur Assistance
Program, Rural Business Development
Grant * RD B&I loan program, RD
Community Facilities Program,
Intermediary Relending Program.
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III. Improve Financial Health and Inclusion

Programs that support the creation of high-quality jobs and
access to consumer credit, payments, and savings products:

------------------------------------------------------------------------

------------------------------------------------------------------------
Commerce.......................... EDA Good Jobs Challenge, EDA Build
Back Better Regional Challenge,
MBDA Access to Capital: Innovative
Finance Pilot.
DOT............................... N/A.
HUD............................... Housing Counseling, Community
Development Block Grant, Section 3,
Asset Building Programs (e.g.,
Family Self-Sufficient, Resident
Opportunities and Self-
Sufficiency).
Treasury.......................... State and Local Fiscal Recovery
Fund, Emergency Rental Assistance
Program, ECIP, CDFI Fund.
SBA............................... All programs.
USDA.............................. Rural Innovation Stronger Economy,
Rural Economic Development Loan and
Grant.
------------------------------------------------------------------------

[[Page 60239]]

IV. Expand Community Infrastructure

Programs that support the preservation or development of
affordable housing, community facilities, public transportation, and
high-quality broadband:

------------------------------------------------------------------------

------------------------------------------------------------------------
Commerce.......................... EDA Build Back Better Regional
Challenge.
NTIA Technical Assistance and
Infrastructure programs, including:
<bullet> Connecting Minority
Communities Program.
<bullet> Broadband Infrastructure
Program.
<bullet> Tribal Broadband
Connectivity Program.
<bullet> Broadband Equity,
Access, and Deployment Program
(BEAD).
<bullet> Middle Mile Broadband
Infrastructure Grant Program.
<bullet> State Digital Equity
Planning Grant Program.
<bullet> Digital Equity
Competitive Grant Program.
DOT............................... TIFIA, RRIF, Private Activity Bonds,
Thriving Communities,* Reconnecting
Communities, Regional
Infrastructure Accelerators,* Safe
Streets for All, Asset Concession-
Innovative Financing Grant,* Rural-
Tribal Technical Assistance Grant,*
Capital Investment Grants (other
public transport programs), FTA
Pilot Program.
HUD............................... Section 108, Community Development
Block Grant, HOME Investment
Partnership, Project-Based Rental
Assistance, Project Based Vouchers,
FHA Mortgage Insurance, Housing
Trust Fund, Choice Neighborhoods.
Treasury.......................... State and Local Fiscal Recovery
Fund, Capital Projects Fund,
Homeowners Assistance Fund, Low-
Income Housing Tax Credit.
SBA............................... 504 Loan Program, Contracting
Assistance Programs.
USDA.............................. RD Community Facilities Programs,
Rural Community Development
Initiative Grants, Section 502
loans, Section 504 loans and
grants, Mutual Self Help Grants,
Housing Preservation Grants, Rural
Rental Housing and Farm Labor
Housing Loans and Grants, Rental
Assistance, Rural Development
ReConnect and Community Connect
Programs. Rural Development Water
Emergency Community Water
Assistance Grants, Water
Infrastructure Grants for Rural and
Native Alaskan Villages, Rural
Decentralized Water Systems Grant
Program, Individual Water &
Wastewater Grants in Colonia Areas,
Water & Waste Disposal Grants to
Alleviate Health Risks on Tribal
Lands and Colonias, Water & Waste
Disposal Loans & Grants, Solid
Waste Management Grants.
------------------------------------------------------------------------
* Technical Assistance Program.

[FR Doc. 2022-21524 Filed 10-3-22; 8:45 am]
BILLING CODE P

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