Division of Housing and Community Renewal
Housing Development Fund
The Housing Development Fund was created in 1966 to facilitate the development of low and moderate-income housing. Although the Fund was authorized to issue as much as $30 million in loans, we found that actual issuances have been much lower. Since the 1988-89 fiscal year, the Fund has averaged only six loans and $3.6 million per year in disbursements. As a result, opportunities to aid housing development may have been lost. We also noted that several loans were either uncollectible or in danger of becoming uncollectible. We recommended actions that could lead to greater use of the Fund and better collection of outstanding loans.