12 U.S.C. § 4705 — Community partnerships

(a) Application An application for assistance can be filed jointly by a community development financial institution and a community partner to carry out a community partnership. (b) Application requirements The Fund must require a community partnership application— (1) to meet the minimum requirements established for community development financial institutions under section 4704(b) of this title, except that the criteria specified in paragraphs (1) and (2)(A) of section 4704(b) of this title must not apply to the community partner; (2) to describe how each coapplicant will participate in carrying out the community partnership and how the partnership will enhance activities serving the investment area or targeted population; and (3) to demonstrate that the community partnership activities are consistent with the strategic plan submitted by the community development financial institution coapplicant. (c) Selection criteria The Fund must consider a community partnership application based on— (1) the community development financial institution coapplicant— (A) meeting the minimum selection criteria described in section 4704 of this title; and (B) satisfying the selection criteria of section 4706 of this title; (2) the extent to which the community partner coapplicant will participate in carrying out the partnership; (3) the extent to which the community partnership will enhance the likelihood of success of the community development financial institution coapplicant’s strategic plan; and (4) the extent to which service to the investment area or targeted population will be better performed by a partnership as opposed to the individual community development financial institution coapplicant. (d) Limitation on distribution of assistance Assistance provided upon approval of an application under this section must be distributed only to the community development financial institution coapplicant, and must not be used to fund any activities carried out directly by the community partner or an affiliate or subsidiary of it. (e) Other requirements and limitations All other requirements and limitations imposed by this subchapter on a community development financial institution assisted under this subchapter must apply (in the manner that the Fund determines to be appropriate) to assistance provided to carry out community partnerships. The Fund can establish additional guidelines and restrictions on the use of Federal funds to carry out community partnerships.