Supporting Statement for Certification-Recertification 1559-0028 07-30-08

Supporting Statement for Paperwork Reduction Act Submissions
Community Development Financial Institutions (CDFI) Fund
CDFI Certification Application, OMB 1559-0028
CDFI Form 0005
A. Justification
1. Circumstances necessitating collection of information
Pursuant to 12 U.S.C 4701 et seq. the Community Development Financial Institutions Fund (the
CDFI Fund) implements the Community Development Financial Institutions (CDFI) Program.
The CDFI Fund’s mission is to increase the capacity of financial institutions to provide capital,
credit, and financial services in underserved markets. In order to qualify for a financial or
technical assistance award from the CDFI Fund an applicant must be certified by the CDFI Fund
as a CDFI. As an integral part of the CDFI certification procedure, the CDFI Fund has developed
a certification application, which is used to determine whether an entity seeking CDFI certification
meets the CDFI Fund’s requirements for such certification. These requirements are specified in
the CDFI Fund’s regulations at 12 C.F.R. 1805.201.
2. Method of collection and use of data
The certification application will be collected by entities seeking CDFI certification and
recertification. The data collected via the certification application will be used by the CDFI Fund
to evaluate whether an entity may be certified as (or, in the case of applicants for recertification,
continues to be) a CDFI.
3. Use of Information Technology
At present, the certification application is collected in paper format. The CDFI Fund is planning
to collect the renewed CDFI certification application electronically either in part or in its entirety.
4. Efforts to identify duplication
Similar information is not available from other sources and it does not duplicate any other CDFI
Fund or Federal program information-gathering tool.
5. Impact on small entities
This collection of information is not expected to have significant impact on small entities.
6. Consequences of less frequent collection and obstacles to burden reduction
Since CDFI certification is a prerequisite for receiving funding from the CDFI Fund, the
certification application is a critical part of the CDFI Program. Moreover, once certified, an
entity’s certification lasts for three years provided the entity continues to meet the certification
requirements.
7. Circumstances requiring special information collection
Any confidential business information submitted by applicants is safeguarded through the CDFI
Fund’s records management procedures and information technology security protocols.
8. Solicitation of comments on information collection
Comments on the certification application were solicited via notice in the Federal Register on May
30, 2008, (73 FR 31191). Two comments were received and are attached. The CDFI Fund will

Community Development Financial Institutions Fund, Department of the Treasury
consider the comments in any future modifications to the application form or format, as requested
by the commentors.
9. Provision of payment to respondents
No payments or gifts will be made to respondents.
10. Assurance of confidentiality
The CDFI Fund is subject to all Federal regulations with respect to confidentiality of the
information provided in this collection of information. The CDFI Fund has provided no other
assurances of confidentiality to respondents.
11. Justification of sensitive questions.
No questions of a sensitive nature are asked in this collection of information.
12. Estimate of the hour burden of information collection.
The total hour burden of this information collection is estimated at: 300 respondents annually
(100 for certification + 200 for re-certification) x 1 response annually x 37.5 hours per respondent
= 11,250 hours. As noted above, once certified as a CDFI, an entity’s certification lasts for three
years provided the entity continues to meet the certification requirements.
13. Estimate of total annual cost burden to respondents
It is not expected that this information collection will have a cost burden to respondents. No
purchases of equipment or services are necessary for this information collection.
14. Estimate of annualized cost to the Government
The cost to the Government is the CDFI Fund staff time required to review the submitted
certification applications.
15. Any program changes or adjustments
An adjustment of 1,350 hours to the Annual Reporting and Recordkeeping Hour Burden is due to
a reassessment of the CDFI Fund’s previous estimates. The factors affecting the revised estimate
include: 1) the number of anticipated respondents per year – we anticipate the average number of
respondents per year to be fewer than in the prior estimate, 2) the mix of respondents – we
anticipate fewer new certification respondents and more recertification respondents than in the
prior estimate, and 3) average burden hours per respondent - we anticipate that with the new
electronic application system we are developing (as opposed to the old paper application) the
average burden hours per respondent will be less for new certification respondents, and even less
for recertification respondents.
16. Plans for information tabulation and publication
Confidential or proprietary information collected through this information collection will not be
published.
17. Reasons for not displaying expiration date of OMB approval
The CDFI Fund intends to display the expiration date of the OMB approval on the collections of
information.
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Community Development Financial Institutions Fund, Department of the Treasury
18. Explanation of exceptions to certification statement
Not applicable.
B. Collections of Information Employing Statistical Methods
Not applicable.

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