The final FY18 federal budget will likely be much different than the president’s “skinny budget” proposal, but nevertheless, the threat to eliminate programs like Community Development Block Grants and severely cut others like Section 8 housing vouchers underscores the risk associated with subsidy programs. Carefully evaluating all capital grants, operating subsidies, and credit enhancements is essential to effective risk management for CDFIs.
How best to address the uncertainty? Strong underwriting and prudent monitoring.
Would you like a hand implementing any of these ideas? Give us a call: (518) 599-0482.
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