The D.C. Council is weighing whether to make the city’s process for handing out loans for affordable housing projects more transparent, but some developers say the effort could backfire and make such construction prohibitively expensive.
Councilwoman Elissa Silverman, I-At Large, is backing legislation aimed at shedding a little more light on how District officials dole out loans through the Housing Production Trust Fund, a program that currently receives $100 million annually and could see a substantial cash infusion in the new fiscal year’s budget. Silverman introduced the bill in February, backed by five of her colleagues, but it’s taken on new relevance after D.C. Auditor Kathy Patterson released a report that was highly critical of the fund’s inner workings.
Namely, Patterson found the Department of Housing and Community Development awarded HPTF loans to five projects last year that didn’t score very highly on the agency’s own metrics. She estimated that resulted in a loss…Read the full story from the Washington Business Journal.