Further Actions Needed To Improve Management of HUD Programs

GAO has made numerous recommendations in its reports on federal housing and community development programs to reduce costs and increase effectiveness. The actions of the Department of Housing and Urban Development (HUD) to implement these recommendations were reviewed.

HUD has achieved cost savings and improved program operations by implementing many of the recommendations; however, no action has been taken on some of them. GAO recommended improvements in the Section 8 Housing Assistance Program which would aid in eliminating the high costs, program weaknesses, and possible fraud in that program. Although HUD indicated that corrective actions would be taken, it has taken too long to initiate those actions. HUD has initiated action on GAO recommendations to strengthen financial controls in the Section 312 Rehabilitation Loan and Block Grant Programs. However, HUD disagreed with a recommendation that block grant funds for rehabilitation be prohibited unless they are combined with other resources to increase the number of housing units that could be rehabilitated. HUD has initiated corrective action on most of the problems GAO identified in the College Housing Loan Program. However, because of the decline in college enrollments, biennial assessments of the need for the Program should be performed. HUD agreed with GAO recommendations to assign priority consideration to higher income eligible families under the Housing and Community Development Act; however, it has not taken action to fully implement them. Also, corrective actions initiated by HUD to better manage multifamily assigned mortgages will not be operational for several months.