Troubled Asset Relief Program - Community Development Capital Initiative (CDCI)

Forms and Documents

Document Name	Status
Early Repurchase Option Form	New
1505-0223_supporting_statement_2016.docx Supporting Statement A	2016-07-29

IC Document Collections

IC ID	Document Title	Status
222757	Early Repurchase Option--resubmission Instruction	New
222755	Early Repurchase Option Form	New
191835	CDCI Application Other-Application and Instruction	Removed

ICR Details

OMB Control No: 1505-0223	ICR Reference No: 201607-1505-002
Status: Historical Active	Previous ICR Reference No: 201008-1505-001
Agency/Subagency: TREAS/DO	Agency Tracking No: TARP
Title: Troubled Asset Relief Program - Community Development Capital Initiative (CDCI)
Type of Information Collection: Reinstatement with change of a previously approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 07/29/2016
OIRA Conclusion Action: Approved without change	Conclusion Date: 07/31/2016
	Date Received in OIRA: 07/29/2016
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2017	6 Months From Approved	10/31/2011
Responses	80	0	200
Time Burden (Hours)	1,570	0	400
Cost Burden (Dollars)	0	0	0

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Abstract: The Department of the Treasury (Treasury) established the TARP Community Development Capital Initiative (CDCI) in 2010 to purchase qualifying assets from U.S. banking organizations that are certified Community Development Financial Institutions (CDFIs). Banks, savings associations, bank holding companies, savings and loan holding companies and credit unions were eligible to participate. Funding to successful CDCI applicants was completed in September 2010. For a limited period of time, Treasury is offering interested CDCI participants the opportunity to exit the CDCI program by repurchasing the CDCI securities held by Treasury at fair value. The information collection provides instructions and an application for CDCI institutions that would like to apply to exit the CDCI program using this process.

Emergency Justfication: Treasury established the Community Development Capital Initiative (CDCI) in 2010, pursuant to the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201, et seq.). The objective of CDCI is to provide emergency capital to Community Development Financial Institutions that provide services to underserved communities at a time when they were finding it harder to obtain credit as the economy was in a downturn. Funds were provided by the sale of securities to the Treasury through its Troubled Asset Relief Program (TARP) to provide needed capital to the CDCI institutions, which permitted the institutions to improve their capital structure and extend credit to underserved communities. The securities sold to Treasury have a two percent per annum dividend for preferred stock or 3.1 percent interest on subordinated debentures until 2018, when they step up to a 9 and 13.1 percent rate respectively. Recognizing Treasury’s interest in winding down the TARP investment programs in a manner which balances the speed of exit, maximizes the return to taxpayers and the need to preserve financial stability, and recognizing the current and persistent challenges the CDCI institutions face in raising capital in the private sector to replace TARP capital, Treasury determined to offer such institutions the option to repurchase their securities from Treasury at fair value. Because capital market conditions are currently favorable, Treasury determined that this is a propitious time to offer this early repurchase option. Additionally, because the step up in dividend or interest rates will occur for CDCI institutions in September 2018, it is beneficial for both Treasury and the institutions to allow the repurchases now. Treasury plans to accept applications for the repurchase of such securities by November 18, 2016 and anticipates that it will close all such transactions by December 30, 2016. In order to preserve financial stability and avoid market disruption for the CDCI institutions, it is critical that Treasury collect all information necessary to complete the allocation process as soon as possible so that the CDCI institutions may source replacement capital during the current capital market environment.

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Authorizing Statute(s): PL: Pub.L. 110 - 343 101 Name of Law: Emergency Economic Stabilization Act of 2008
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Early Repurchase Option--resubmission
Early Repurchase Option	n/a	Proposal Form for Early Repurchase of CDCI Securities
CDCI Application

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	80	200	0	-120	0	0
Annual Time Burden (Hours)	1,570	400	0	1,170	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The collection no longer includes the application to participate in CDCI since initial applications are no longer being accepted. It does now include a new option for exiting the CDCI program which necessitates the use of a new form document and the collection of supporting documentation.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Yes

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 07/29/2016

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