Public Housing

Status of HUD's Takeover of the Chicago Housing Authority Gao ID: T-RCED-95-275 September 5, 1995

This testimony focuses on the Department of Housing and Urban Development's (HUD) takeover of the Chicago Housing Authority (CHA) in May 1995. The HUD takeover was prompted by the poor physical condition of the CHA's extensive housing stock and the troubled management of the housing authority. GAO concludes that HUD officials had little choice in taking over CHA. Even if the progress that HUD has made so far in establishing CHA continues, HUD will not solve CHA's problems in the near future. Because of the magnitude and persistence of the problems, improvements at the authority will take years to achieve and short-term gains will be difficult. Thus, it is important that HUD officials not fair expectations of tenants or the public for immediate solutions. Although HUD has set and already met some short-term goals, preparing a comprehensive long-term recovery plan is crucial to ensuring sustained success.



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