A follow-up audit by Los Angeles City Controller Laura Chick of the Community Redevelopment Agency has found the organization is too slow in reforming its loan programs for developers, affordable housing project and profit sharing with builders. The audit found the majority of CRA loans are still being awarded to a small number of borrowers and developers. It also said the CRA’s new real estate acquisition and disposition tracking system is ineffective and that the city agency must review affordable housing projects to make sure they are maintained. The audit also called on the CRA to perform a more in-depth review of its borrower’s financial statements. “It has been two years since I released a series of audits of the CRA, with 92 recommendations, and unfortunately a new audit found that the CRA is still fundamentally off-course,” Chick said in a statement. CRA officials said they welcomed the new audit, but added that the agency has implemented many of Chick’s suggestions from two years ago, including applying new underwriting guidelines that encourage profit-sharing and a new loan committee. “We are one city and we are all committed to doing the best job possible on behalf of the residents of Los Angeles,” said CRA chief executive Cecilia Estolano. “We work in the toughest parts of the city and strive to create jobs and housing opportunities for those who have not shared in the benefit of private investment. We look forward to working in partnership with Controller Chick to make this the most nimble, effective and dynamic agency in the city.”
