On Friday, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (the “CDFI Fund”) announded an updated Compliance and Monitoring FAQ. The revised guidance updates the 2009 and 2011 editions of the New Markets Tax Credit Compliance and Monitoring FAQ.

Some highlights of the update include guidance regarding: (1) dissolution of Sub-CDEs; (2) termination of Allocation Agreements; (3) designating a “non-real estate” QEIs for purposes of Treasury Directive 9600; (4) clarification of “real estate” vs. “non-real estate” QALICBs; (5) defining Material Events; (6) restrictions on the use of bond proceeds under the CDFI Bond Guarantee Program in NMTC-related activities; (7) process for amending Allocations Agreements, adding Sub-CDEs, and changing Service Areas; (8) meeting the requirement of Section 3.2(h) of the Allocation Agreement regarding Targeted Distressed Communities for a QALICB with tangible property located in multiple census tracts; (9) refining the definition of “Affordable Housing” for the purpose of meeting Section 3.2(k) of the Allocation Agreement; (10) measuring “Innovative Investment” for the purpose of meeting Section 3.2(l) of the Allocation Agreement; and (11) determining if a QLICI supports businesses that obtain HUB Zone certification.

The updated FAQ may be viewed here.