Exactly what GAO Discover
Overlap during the housing advice applications-particularly those of the newest Agency of Agriculture’s (USDA) Rural Homes Solution (RHS) plus the Agencies of Houses and you will Metropolitan Development (HUD)-focus on opportunities having improved venture and integration. GAO’s report discover overlap from the issues provided and you will communities (money groups) and you will geographical parts prepared by RHS and you can HUD single-friends home loan verify programs. GAO and additionally discovered chose multifamily housing programs offered equivalent motives. The newest report made around three information so you’re able to RHS. RHS fundamentally assented toward guidance and adopted one to because of the formalizing collective perform with other government providers into the unmarried-nearest and dearest housing programs. But not, RHS or other government housing organizations haven’t yet drawn most other recommended methods to build for the interagency jobs-eg, by the contrasting specific options for combining equivalent property applications, including those that would require legal transform.
RHS essentially assented which have and has now handled a few of GAO’s prior suggestions for the brand new leasing advice and you may ranch work homes programs, but other people want further appeal. Particularly, RHS used around three of your own seven suggestions GAO built in to increase the agency’s work to recognize and reduce improper local rental guidelines money. Extra methods are necessary to pertain the remainder recommendations, and therefore target flaws in the way RHS prices and you may profile towards the improper repayments. RHS and additionally treated about three of the eight pointers GAO made in . Next strategies must implement another five, hence address flaws for the RHS control for ensuring occupant qualification, among other problems.
Constant GAO performs shows that areas of RHS’s chance administration to own the fresh solitary-household members financial verify program broadly fall into line with government requirements, and others aren’t totally in line with standards and leading practices. Such, RHS enjoys policies and procedures for a number of risk- management features managed inside the Work environment out of Management and you will Finances suggestions (particularly determining debtor creditworthiness and you will managing lenders). However, GAO’s ongoing really works reveals that, contrary to federal interior control conditions, RHS doesn’t have created guidelines and procedures getting a panel guilty of comparing credit high quality products and you may dealing with all of them using coverage alter. And, particular criteria RHS spends to greatly help assess the overall performance of its protected profile keeps restrictions one fade its really worth for examining chance and generally are perhaps not fully in keeping with their site best strategies for winning abilities tips. These flaws will get limit the capability out-of RHS’s chance-management jobs.
As to why GAO Performed This study
RHS, a company in this USDA, administers a lot of lead financing, financing make sure, and you will grant apps one to service sensible construction and you can neighborhood invention to own outlying people. Considering USDA economic and you may budget study, RHS takes care of a profile away from almost $120 mil during the property funds and you may financing promises and you may administers a lot more than simply $step 1 mil inside rental direction payments each year. GAO awarded about three profile given that s (come across GAO-11-329, GAO-12-554, and you can GAO-12-624) possesses ongoing operate in this area.
It testimony is founded on people three reports and continuing GAO performs. It discusses (1) earlier GAO findings towards the the amount that the new construction apps of RHS and you may HUD overlap and you will associated effects to have program collaboration and you will combination; (2) the fresh new position off GAO great tips on brand new leasing casing direction program and you may farm labor houses financing and you may offer system; and you will (3) initial observations throughout the ongoing overview of risk-management strategies toward solitary-family unit members financing ensure system. To posting brand new condition of recommendations, GAO analyzed RHS guidelines, steps, and records. Because of its ongoing performs, GAO reviewed government conditions and leading techniques to have chance administration and you can opposed all of them with RHS policies, procedures, and you may means. GAO plus questioned RHS officials.
GAO produces zero this new pointers within this testimony, but could consider and then make a lot more pointers after its constant efforts are done.