Public Housing

Modernization of the Allen Parkway Village Housing Project in Houston, Texas Gao ID: RCED-86-71FS December 20, 1985

Pursuant to a congressional request, GAO reviewed aspects of a Department of Housing and Urban Development (HUD) award of $10 million to the Housing Authority of the City of Houston (HACH) to modernize the Allen Parkway Village public housing project.

GAO found that: (1) of the $10 million that HUD obligated for modernization activities, $5.8 million were to be spent on the dwelling structures, $2.9 million were to go to site improvements, and the remaining $1.3 million were to be spent on architectural and engineering fees, dwelling equipment, HACH salaries, and non-dwelling equipment; (2) the modernization progress was slow because HACH and HUD had difficulty in reaching an agreement on detailed rehabilitation plans; (3) HACH had a management change and could not decide whether to rehabilitate or dispose of the project; (4) HUD allowed HACH to draw down only a small portion of the $10 million because of its concerns about the housing authority's financial management capabilities; and (5) although HUD instructed HACH to return excess modernization funds, these funds had not been returned pending HUD action on a HACH proposal to use the funds to aid in disposing of the project.

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