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NAFCU Regulatory Affairs Counsel Kavitha Subramanian on Thursday urged the Treasury Department to modernize and streamline requirements for its Community Development Financial Institutions Program.

Treasury requested comments in September on its interim final rule that would revise the grant program's administrative requirements. The proposed changes combined grant-related guidance circulars to reduce the administrative burden for grant recipients.

"Year after year, NAFCU continues to hear from our CDFI-certified members that CDFI funds have been instrumental in allowing their institutions to grow their lending portfolios and offer financial products to members in their communities that have traditionally been underserved," Subramanian wrote. "However, NAFCU member credit unions have indicated that the current reporting requirements are often cumbersome, time consuming and duplicative."

She urged, "As Treasury reviews its current systems and certification process, NAFCU urges the agency to consider ways to modernize the current software, reporting requirements, and certification process."

Other changes as a result of the interim final rule include revisions to cost principles, technical corrections and audit requirements for federal awards.

The CDFI Fund is administered through the Treasury Department. Credit unions with NCUA's low-income designation automatically qualify to apply for CDFI certification, which enables them to apply for assistance and grants from the fund to serve economically distressed areas.