Bill would gut shadowy state loan fund intended for disability expenses

A Colorado fund used for nearly 25 years to loan money to families taking care of relatives with developmental disabilities – but languished with high default rates – would be gutted under a bill due for hearing next week.

The bill, HB 17-1078, would liquidate any money left in the Family Services Support Loan Fund and reallocate it to community boards that give grants to families with expenses that accommodate special-needs children and relatives.

About $124,500 remains unallocated, although new loans are due to be made in the next several months because the laws governing the program don’t allow for the state to refuse making them if a person otherwise qualifies.

The Denver Post in July reported that the fund received little oversight and was burdened with default rates 10 times the national average for consumer loans. The Post also found the agencies charged with overseeing the loans have little idea about how the money is actually spent.

Read more: http://www.denverpost.com/2017/01/24/family-services-support-loan-fund-bill/