What GAO Discover
Overlap into the houses advice programs-instance those of the fresh Department out of Agriculture’s (USDA) Rural Construction Provider (RHS) and Institution away from Houses and you may Urban Innovation (HUD)-focus on possibilities for increased venture and you will consolidation. GAO’s report located overlap from the things provided and you can communities (money teams) and you can geographical parts served by RHS and you may HUD solitary-friends mortgage make certain apps. GAO and additionally discovered selected multifamily construction programs served comparable motives. The declaration generated three suggestions to RHS. RHS basically consented on the recommendations and you will used one to by formalizing collaborative services along with other government companies on the single-friends houses applications. Although not, RHS or other government property organizations have not yet removed most other demanded measures to build into interagency perform-like, by researching specific potential getting merging comparable houses apps, together with individuals who would want legal change.
RHS generally arranged which have features addressed a few of GAO’s previous ideas for brand new rental advice and you can farm labor casing programs, but anyone else wanted subsequent desire. Particularly, RHS adopted about three of your own 7 suggestions GAO manufactured in to improve agency’s services to identify and reduce incorrect rental assistance repayments. Additional steps are needed to use the rest recommendations, hence target flaws in the manner RHS rates and reports into incorrect repayments. RHS together with addressed around three of your seven advice GAO produced in . Next strategies have to use another four, which target flaws during the RHS control to own making sure tenant eligibility, certainly one of other problems.
Lingering GAO works shows that aspects of RHS’s chance government getting brand new single-friends home loan make sure program broadly align that have government conditions, although some aren’t completely in keeping with requirements and you may best practices. Including, RHS features principles and procedures for many chance- administration qualities managed in the Workplace away from Management and Funds guidance (for example deciding debtor creditworthiness and overseeing lenders). However, GAO’s ongoing work implies that, as opposed to government internal control conditions, RHS does not have created procedures and functions to own a panel responsible for comparing borrowing top quality things and you can dealing with them as a consequence of plan changes. Also, specific standards RHS spends to simply help gauge the results of its guaranteed collection have limitations that diminish the really worth for examining exposure and are generally perhaps not totally in line with leading means having successful performance steps. These types of shortcomings may reduce functionality out-of RHS’s exposure-administration efforts.
As to the reasons GAO Performed This study
RHS, an agency in this USDA, administers a number of direct financing, loan be sure, and you will offer apps you to definitely help affordable homes and you can society development for outlying owners. Considering USDA financial and you can funds analysis, RHS manages a profile of almost $120 billion in construction financing and you can loan pledges and you may administers so much more than just $1 mil into the rental assistance costs each year. GAO approved about three profile once the s (pick GAO-11-329, GAO-12-554, and you will GAO-12-624) and also constant work with this area.
This testimony will be based upon those individuals about three account and continuing GAO functions. It discusses (1) prior GAO findings toward the amount to which the fresh houses apps from RHS and HUD convergence and associated ramifications for program collaboration and you may combination; (2) brand new position out of GAO guidance on the brand new rental construction guidelines program and you loans Repton AL can farm labor property financing and you can give system; and you can (3) initial findings regarding constant writeup on chance-government techniques for the unmarried-family members loan be sure program. To up-date the fresh status from suggestions, GAO reviewed RHS procedures, procedures, and you will profile. For the ongoing really works, GAO examined government standards and leading practices to have exposure management and you can compared all of them with RHS guidelines, measures, and you can strategies. GAO also interviewed RHS authorities.
GAO can make zero new information contained in this testimony, but can thought to make more suggestions immediately after its ongoing work is done.