Multifamily Housing

Impediments to Disposition of Properties Owned by the Department of Housing and Urban Development Gao ID: T-RCED-93-37 May 12, 1993

During the past three years, the Department of Housing and Urban Development's (HUD) inventory of multifamily housing has surged from 10,000 units in 1990 to 27,000 units in 1992. In addition, HUD has begun foreclosing on another 42,000 units. GAO found that the most significant impediment to the disposition of this inventory is the shortage of federal funds for rental subsidies needed to preserve units for low- to moderate-income tenants. Once the federal government is obligated to preserve these units, HUD will pay the cost of preservation whether the properties are sold or whether they remain in HUD's inventory. In the absence of any action to change this situation, HUD will remain the landlord for a huge inventory of properties--a role that HUD was never intended to play nor has it been adequately staffed to fulfill.



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