Public Housing

HUD's Takeover of the Chicago Housing Authority Gao ID: T-RCED-95-222 June 7, 1995

The Chicago Housing Authority has a long history of troubled management and poor housing conditions that arise from deficient management systems; aging, deteriorated, and poorly designed stock; and the extremely low incomes of residents. The Department of Housing and Urban Development's (HUD) ability to take over a troubled housing authority has been hampered in the past by limited resources and staff expertise. In the past two years, however, key officials with housing expertise have joined HUD, and the long-term benefits of taking drastic action outweigh the costs of continued troubled status. Finally, proposed statutory changes, such as repealing the one-for-one replacement requirement, reforming rent calculation rules, and changing public housing eligibility criteria, could result in better use of federal funds for assisted housing.



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