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ExpectMore.govExpectMore.gov home pageEXPECT FEDERAL PROGRAMS TO PERFORM WELL, AND BETTER EVERY YEAR.
 
Program Assessment

Program

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Section 108 Community Development Loan Guarantee Program

Section 108 gives communities and states a way to leverage their Community Development Block Grant (CDBG) award to obtain additional resources for financing larger community revitalization projects, such as economic development, housing rehabilitation, public facilities, and large-scale physical development projects.

Rating

What This Rating Means

NOT PERFORMING
Results Not Demonstrated

A rating of Results Not Demonstrated (RND) indicates that a program has not been able to develop acceptable performance goals or collect data to determine whether it is performing.
  • While Section 108's purpose is clear and reports indicate that it is targeted to distressed communities, it is duplicative and has design flaws. Other financing options exist and although no losses have occurred since its inception because CDBG funds are pledged, the Federal government would bear 100% of any future losses.
  • The program currently lacks long-term performance outcome measures and there is no reporting mechanism to capture accomplishment data and measure program effectiveness. For instance, it doesn't have a measure for public infrastructure projects.
  • The program's impact and effectiveness in neighborhoods remain unknown. Although there have been past independent evaluations that assessed various aspects of the program, there has not been a comprehensive examination of the program's broad scope of activities on communities. Existing studies with varying focuses reflect mixed results.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • Developing annual and long-term performance measures and implementing procedures to collect accomplishment data from program participants.
  • Completing an evaluation of the Section 108 program to assess the program's effectiveness and to identify areas for improvement.

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