12 CFR 1807.302 - Restrictions on use of assistance.
|Updated to:||January 2014|
Title 12: Banks and BankingCHAPTER XVIII: COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND, DEPARTMENT OF THE TREASURY PART 1807: CAPITAL MAGNET FUND Subpart C: Use of Funds/Eligible Activities 1807.302 - Restrictions on use of assistance. (a) An Awardee's activities under § 1807.301 shall not include the use of CMF for the following: (1) Political activities; (2) Advocacy; (3) Lobbying, whether directly or through other parties; (4) Counseling services (including homebuyer or financial counseling); (5) Travel expenses; (6) Preparing or providing advice on tax returns; (7) Emergency shelters (including shelters for disaster victims); (8) Nursing homes; (9) Convalescent homes; (10) Residential treatment facilities; (11) Correctional facilities; or (12) Student dormitories. (b) An Awardee may use up to a percentage of CMF award for Operations as specified in the applicable NOFA. (c) An Awardee shall not use CMF award to support projects that: (1) Consist of the operation of any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack or other facility used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises; (2) Consist of farming (within the meaning of I.R.C. section 2032A(e)(5)(A) or (B)) if, as of the close of the taxable year of the taxpayer conducting such trade or business, the sum of the aggregate unadjusted bases (or, if greater, the fair market value) of the assets owned by the taxpayer that are used in such a trade or business, and the aggregate value of the assets leased by the taxpayer that are used in such a trade or business, exceeds $500,000. (d) In any given funding round, no more than 30 percent of an Awardee's CMF award may be used for purposes described in § 1807.300(b).