Review of the Adequacy of Procedures Followed in Selecting Section 8 Developers

Gao ID: 119780 April 8, 1982

GAO reviewed procedures followed by three Department of Housing and Urban Development (HUD) area offices in selecting developers for new construction and substantial rehabilitation projects. The purpose of the review was to evaluate the effectiveness of the procedures under the Section 8 Lower Income Rental Assistance Program administered by HUD and to identify ways to improve the selection process, thus reducing housing costs and expediting completion. The review generally covered proposals received for fiscal year 1979.

At two of the offices, the study disclosed some shortcomings and raised doubts concerning whether the best proposals had been selected in all cases. GAO found that: (1) proposals of competing developers were not always properly ranked; (2) developers were selected without evidence that they had a legal right to the proposed building sites; (3) preliminary proposals from unselected developers were destroyed prematurely; and (4) preliminary evaluation meetings were not held.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Steven J. Wozny Team: General Accounting Office: Community and Economic Development Division Phone: (202) 426-1645


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