Public Housing

Pursuant to a congressional request, GAO reviewed the San Diego Housing Commission's use of Department of Housing and Urban Development (HUD) funds for the acquisition of an office facility, equipment, and furnishings.

GAO found that: (1) there were no violations of federal law in the use of HUD reserve funds to acquire, renovate, and furnish the Commission's office facility; (2) HUD regulations authorize payments from the reserve fund for regular administrative costs or other housing-related costs; (3) there were no possible alternative facilities available that closely matched the Commission's requirements for contiguous office and warehouse/maintenance space; and (4) the extent and costs of renovating alternative facilities could not be readily determined and, therefore, any cost comparisons were not meaningful because numerous assumptions and value judgments were required. GAO also found that: (1) the Commission should have obtained approval for the facility acquisition and renovation strategies and costs prior to its transactions; (2) the Commission's procurement practices were inconsistent with its procurement policies for the purchase of office furnishings and equipment; and (3) although the Commission did not obtain approval for the renovation expenditures before it entered into contracts for the work, the San Diego Housing Authority provided general approval for the expenditures through the Commission's overall operating budget, which included funds in a discretionary account.