Public Housing

Operating more than 13,000 housing units and providing homes to nearly 25,000 people, the Housing Authority of New Orleans is one of the largest public housing authorities in the country. For nearly two decades, however, New Orleans has been one of the nation's poorest performing housing authorities. Moreover, its performance has improved only marginally in recent years, despite federal grants, hands-on management assistance from professional property managers, and the personal involvement of the Secretary of the Department of Housing and Urban Development (HUD). This report discusses the (1) major operational problems at the Housing Authority of New Orleans, (2) underlying causes of these problems, and (3) steps HUD has taken to improve the performance of the Housing Authority of New Orleans and what success these measures have had.

GAO found that: (1) HANO has been unable to implement and maintain effective maintenance, modernization, and rehabilitation programs; (2) in 1994, none of the 150 HANO housing units that HUD sampled met HUD housing quality standards; (3) although HANO has over $200 million in unspent modernization grants that have accumulated over the past decade, its housing units continue to deteriorate and unit vacancies remain at over 25 percent; (4) the HANO board of commissioners has not effectively governed HANO and has interfered with its day-to-day operations, hiring, and contracting; (5) this interference has slowed HANO management improvements, prevented its staff from performing effectively, and resulted in the cancellation of modernization contracts; (6) HUD and its New Orleans Field Office have not helped to improve HANO operations; (7) unsuccessful HUD attempts to correct HANO mismanagement have included punitive actions, imposing private management, and limiting the board of commissioners' authority; (8) in 1994, HUD entered into a partnership with New Orleans to avoid a federal takeover of HANO, hold local officials responsible for HANO performance, and improve management and housing conditions; and (9) in February 1996, HUD declared HANO in breach of its contract and entered into a new partnership with New Orleans.