CHICK: CRA NEEDS MORE OVERSIGHT.

Byline: Rick Orlov Staff Writer

Renewing her complaints about the city's Community Redevelopment Agency, Controller Laura Chick called Monday for the City Council to examine the organization, which is responsible for revitalizing neighborhoods declared blighted.

Chick released the second of three audits of the CRA, finding what she said were continuing problems monitoring loans and ensuring that developers provide the affordable housing for which they receive subsidies.

``It's not OK to just give money out, and it's clear the CRA has not done its job in determining how its money is being used,'' Chick said at a City Hall news conference where she released the audit.

``We need to take a look at what this agency is doing and how it is operating, and I think the only way to do that is to have the City Council look at this agency's vision and goals.''

Her first CRA audit, released last week, examined the agency's handling of loans. A third audit - on real estate sales- is to be released on Wednesday.

Chick was a member of the City Council in the late 1990s when members discussed taking over the CRA, although a formal proposal never materialized.

``It was one of those things where I hadn't taken a position, but wanted to study,'' Chick said. ``We thought changes were being made.''

Chick said her most recent audit found that the CRA had failed to ensure developers build the affordable housing to which they are committed, that properties are not being inspected and that loans are not being adequately reviewed.

She also said the CRA was not providing adequate information on its loan policies and on which are loans and which are outright subsidies in some $498 million on the books.

``To look at their books, you'd think this was a giant shell game,'' Chick said.

CRA Executive Director Robert ``Bud'' Ovrom did not return telephone calls Monday.

Aides said he stood by a statement, released last week, that the CRA was being reorganized and was short of critical staff.

In addition, he said the agency tries to revitalize areas that may not attract traditional lenders and so makes some riskier loans.

Aides to Mayor James Hahn said he recognized past problems in the agency and had appointed Ovrom to make changes.

Chick credited Ovrom for attempting to make changes and urging her office to look at the CRA. But, she said, it is time for the agency to show some improvement.

``He can say he needs more people, but our random audit turned up $1 million that he could use to hire people,'' Chick said.

Chick said she was not directing her criticism at any official but at the entire city government for failing to monitor the CRA adequately.

Councilman Eric Garcetti, who chairs the council's Housing, Community and Economic Development Committee that oversees the CRA, said he is planning to review the audits.

``Once all three have been released, I want to hold a hearing to look into what is going on at CRA and if action is needed,'' Garcetti said. ``I think these audits are valuable, but changes are being made at the CRA. I think it is heading in the right direction.''

Rick Orlov, [phone]

rick.orlov(at)dailynews.com