Housing and Urban Development

Major Management and Budget Issues Gao ID: T-RCED-95-86 January 19, 1995

Longstanding department-wide deficiencies at the Department of Housing and Urban Development (HUD) hamper HUD's ability to effectively carry out its mission. These deficiencies are weak internal controls, an ineffective organizational structure, an insufficient mix of staff with the proper skills, and inadequate information and financial management systems. These deficiencies, along with a variety of other problems, have created particularly vexing problems for both HUD and the Congress in the area of public and assisted housing. These problems include how to minimize mortgage loan defaults; deal with billions of dollars of backlogged housing rehabilitation needs and increased vacancy levels; and address the spiraling costs of providing housing subsidies to lower-income families. HUD has taken steps that begin to address its department-wide deficiencies as well as the problems that exist in assisted and public housing, but many of these efforts are in their early stages. Solving the problems at HUD will not be easy and will require a full examination of housing policy and HUD's mission.



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