The Florida Legislature
Office of Program Policy Analysis and Government Accountability
Performance Audit of the Community Development Corporation Support and Assistance Program Administered by the Department of Community Affairs , Report No. 12232, January 1994
- DCA has generally established effective procedures for awarding Program grants and loans and for monitoring Community Development Corporation's (CDC) use of grant funds. However, it has not closely monitored all CDCs receiving Program loans. Such monitoring could help to identify problem loans and enable DCA to work with CDCs to provide or arrange technical assistance to help prevent or minimize future loan losses.
- Some CDCs have had difficulty in repaying Program loans. DCA has written off approximately $570,000 in Program loans as uncollectible. Another $670,000 in loans is in default due to missed loan payments, and repayment of another $550,000 is problematic. Total potential losses to the state may reach $1.8 million. Most losses have occurred from direct loans made in the Program's early years of operation. Success at managing Program loans has varied by CDC, reflecting these organizations' varying levels of business expertise.
- CDCs receiving Program funding are generally focusing their efforts on affordable housing rather than on commercial economic development initiatives. This service emphasis probably reflects the greater availability of funding for affordable housing, the housing needs in each CDC's service area, and the business capacities of CDCs. As CDCs report little income from affordable housing activities, this service emphasis will probably limit their ability to become self-sufficient from state grant funding.
Which Government Program Summaries contain related information?
Housing and Community Development
What other OPPAGA-related materials are available?
- Report No. 99-47 Progress Report: Community Development Corporation Program Not Re-Enacted, But DCA Continues Monitoring, published in April 2000.
- Report No. 97-45 Review of the Community Development Corporation Support and Assistance Program, published in February 1998.
Copies of this report in print or
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