diff --git a/x/community/abci.go b/x/community/abci.go
deleted file mode 100644
index 1a4c88c0..00000000
--- a/x/community/abci.go
+++ /dev/null
@@ -1,12 +0,0 @@
-package community
-
-import (
-	sdk "github.com/cosmos/cosmos-sdk/types"
-	"github.com/kava-labs/kava/x/community/keeper"
-	abci "github.com/tendermint/tendermint/abci/types"
-)
-
-// BeginBlocker runs at the start of every block.
-func BeginBlocker(ctx sdk.Context, _ abci.RequestBeginBlock, k keeper.Keeper) {
-	// TODO: process proposals here
-}
diff --git a/x/community/client/utils/utils_test.go b/x/community/client/utils/utils_test.go
index 9b582d71..1088c832 100644
--- a/x/community/client/utils/utils_test.go
+++ b/x/community/client/utils/utils_test.go
@@ -61,3 +61,26 @@ func TestParseWithdrawProposal(t *testing.T) {
 	require.Equal(t, "Withdraw some KAVA from community pool to Lend!", proposal.Description)
 	require.Equal(t, expectedAmount, proposal.Amount)
 }
+
+func TestParseFileNoExists(t *testing.T) {
+	cdc := codec.NewAminoCodec(codec.NewLegacyAmino())
+	_, err := utils.ParseCommunityPoolLendDepositProposal(cdc, "not-a-file.json")
+	require.ErrorContains(t, err, "no such file or directory")
+	_, err = utils.ParseCommunityPoolLendWithdrawProposal(cdc, "not-a-file.json")
+	require.ErrorContains(t, err, "no such file or directory")
+}
+
+func TestParseFileMalformed(t *testing.T) {
+	cdc := codec.NewAminoCodec(codec.NewLegacyAmino())
+	malformed := testutil.WriteToNewTempFile(t, `
+{
+	"title": "I'm malformed b/c there's no closing quote,
+	"description": "A description",
+	"amount": [{"denom": "ukava", "amount": "100000000000"}]
+}
+`)
+	_, err := utils.ParseCommunityPoolLendDepositProposal(cdc, malformed.Name())
+	require.ErrorContains(t, err, "invalid character")
+	_, err = utils.ParseCommunityPoolLendWithdrawProposal(cdc, malformed.Name())
+	require.ErrorContains(t, err, "invalid character")
+}
diff --git a/x/community/keeper/grpc_query_test.go b/x/community/keeper/grpc_query_test.go
index ec2041de..7daaf983 100644
--- a/x/community/keeper/grpc_query_test.go
+++ b/x/community/keeper/grpc_query_test.go
@@ -12,8 +12,6 @@ import (
 	"github.com/kava-labs/kava/x/community/types"
 )
 
-const legacyCommunityPoolAddr = "kava1jv65s3grqf6v6jl3dp4t6c9t9rk99cd8m2splc"
-
 type grpcQueryTestSuite struct {
 	KeeperTestSuite
 
diff --git a/x/community/keeper/proposal_handler.go b/x/community/keeper/proposal_handler.go
index 68470d56..6f6aba10 100644
--- a/x/community/keeper/proposal_handler.go
+++ b/x/community/keeper/proposal_handler.go
@@ -8,10 +8,31 @@ import (
 
 // HandleCommunityPoolLendDepositProposal is a handler for executing a passed community pool lend deposit proposal.
 func HandleCommunityPoolLendDepositProposal(ctx sdk.Context, k Keeper, p *types.CommunityPoolLendDepositProposal) error {
+	// move funds from community pool to x/community so hard position is held by this module.
+	err := k.distrKeeper.DistributeFromFeePool(ctx, p.Amount, k.moduleAddress)
+	if err != nil {
+		return err
+	}
+	// deposit funds into hard
 	return k.hardKeeper.Deposit(ctx, k.moduleAddress, p.Amount)
 }
 
 // HandleCommunityPoolLendWithdrawProposal is a handler for executing a passed community pool lend withdraw proposal.
 func HandleCommunityPoolLendWithdrawProposal(ctx sdk.Context, k Keeper, p *types.CommunityPoolLendWithdrawProposal) error {
-	return k.hardKeeper.Withdraw(ctx, k.moduleAddress, p.Amount)
+	// hard allows attempting to withdraw more funds than there is a deposit for.
+	// this means the amount that gets withdrawn will not necessarily match the amount set in the proposal.
+	// to calculate how much is withdrawn, compare this module's balance before & after withdraw.
+	balanceBefore := k.bankKeeper.GetAllBalances(ctx, k.moduleAddress)
+
+	// withdraw funds from x/hard to this module account
+	err := k.hardKeeper.Withdraw(ctx, k.moduleAddress, p.Amount)
+	if err != nil {
+		return err
+	}
+
+	balanceAfter := k.bankKeeper.GetAllBalances(ctx, k.moduleAddress)
+	totalWithdrawn := balanceAfter.Sub(balanceBefore)
+
+	// send all withdrawn coins back to community pool
+	return k.distrKeeper.FundCommunityPool(ctx, totalWithdrawn, k.moduleAddress)
 }
diff --git a/x/community/keeper/proposal_handler_test.go b/x/community/keeper/proposal_handler_test.go
index b6444b22..261789b9 100644
--- a/x/community/keeper/proposal_handler_test.go
+++ b/x/community/keeper/proposal_handler_test.go
@@ -78,16 +78,11 @@ func (suite *proposalTestSuite) SetupTest() {
 
 	// give the community pool some funds
 	// ukava
-	err := suite.App.FundModuleAccount(suite.Ctx, types.ModuleAccountName, ukava(1e10))
-	suite.NoError(err)
-
+	suite.FundCommunityPool(ukava(1e10))
 	// usdx
-	err = suite.App.FundModuleAccount(suite.Ctx, types.ModuleAccountName, usdx(1e10))
-	suite.NoError(err)
-
+	suite.FundCommunityPool(usdx(1e10))
 	// other-denom
-	err = suite.App.FundModuleAccount(suite.Ctx, types.ModuleAccountName, otherdenom(1e10))
-	suite.NoError(err)
+	suite.FundCommunityPool(otherdenom(1e10))
 }
 
 func (suite *proposalTestSuite) NextBlock() {
@@ -99,6 +94,27 @@ func (suite *proposalTestSuite) NextBlock() {
 	suite.App.BeginBlocker(suite.Ctx, abcitypes.RequestBeginBlock{})
 }
 
+func (suite *proposalTestSuite) FundCommunityPool(coins sdk.Coins) {
+	// mint to ephemeral account
+	ephemeralAcc := app.RandomAddress()
+	suite.NoError(suite.App.FundAccount(suite.Ctx, ephemeralAcc, coins))
+	// fund community pool with newly minted coins
+	suite.NoError(suite.App.GetDistrKeeper().FundCommunityPool(suite.Ctx, coins, ephemeralAcc))
+}
+
+func (suite *proposalTestSuite) GetCommunityPoolBalance() sdk.Coins {
+	balance, change := suite.App.GetDistrKeeper().GetFeePoolCommunityCoins(suite.Ctx).TruncateDecimal()
+	// expect no decimal dust
+	suite.True(sdk.NewDecCoins().IsEqual(change), "expected no decimal dust in community pool")
+	return balance
+}
+
+func (suite *proposalTestSuite) CheckCommunityPoolBalance(expected sdk.Coins) {
+	actual := suite.GetCommunityPoolBalance()
+	// check that balance is expected
+	suite.True(expected.IsEqual(actual), fmt.Sprintf("unexpected balance in community pool\nexpected: %s\nactual: %s", expected, actual))
+}
+
 func (suite *proposalTestSuite) TestCommunityLendDepositProposal() {
 	testCases := []struct {
 		name             string
@@ -148,7 +164,7 @@ func (suite *proposalTestSuite) TestCommunityLendDepositProposal() {
 					Amount:      ukava(1e11),
 				},
 			},
-			expectedErr:      "insufficient funds",
+			expectedErr:      "community pool does not have sufficient coins to distribute",
 			expectedDeposits: []sdk.Coins{},
 		},
 		{
@@ -280,7 +296,7 @@ func (suite *proposalTestSuite) TestCommunityLendWithdrawProposal() {
 				suite.NoError(err, "unexpected error while seeding lend deposit")
 			}
 
-			beforeBalance := suite.Keeper.GetModuleAccountBalance(suite.Ctx)
+			beforeBalance := suite.GetCommunityPoolBalance()
 
 			// run the proposals
 			for i, proposal := range tc.proposals {
@@ -306,7 +322,7 @@ func (suite *proposalTestSuite) TestCommunityLendWithdrawProposal() {
 			}
 
 			// expect funds to be distributed back to community pool
-			suite.App.CheckBalance(suite.T(), suite.Ctx, suite.MaccAddress, beforeBalance.Add(tc.expectedWithdrawal...))
+			suite.CheckCommunityPoolBalance(beforeBalance.Add(tc.expectedWithdrawal...))
 		})
 	}
 }
diff --git a/x/community/types/expected_keepers.go b/x/community/types/expected_keepers.go
index a268cc76..6ed6dfb2 100644
--- a/x/community/types/expected_keepers.go
+++ b/x/community/types/expected_keepers.go
@@ -27,5 +27,6 @@ type HardKeeper interface {
 
 // DistributionKeeper defines the contract needed to be fulfilled for distribution dependencies.
 type DistributionKeeper interface {
-	GetFeePoolCommunityCoins(ctx sdk.Context) sdk.DecCoins
+	DistributeFromFeePool(ctx sdk.Context, amount sdk.Coins, receiveAddr sdk.AccAddress) error
+	FundCommunityPool(ctx sdk.Context, amount sdk.Coins, sender sdk.AccAddress) error
 }