Just what GAO Found
Convergence when you look at the casing guidance programs-instance that from the brand new Agencies away from Agriculture’s (USDA) Outlying Construction Solution (RHS) therefore the Department of Casing and you will Metropolitan Creativity (HUD)-emphasize ventures for improved cooperation and you can consolidation. GAO’s report discovered overlap on the circumstances offered and communities (income teams) and you will geographic areas prepared by RHS and you may HUD single-family mortgage verify apps. GAO along with discovered chose multifamily houses applications supported comparable intentions. The brand new declaration produced around three suggestions to help you RHS. RHS generally arranged with the suggestions and used that by the formalizing collaborative jobs along with other federal providers into unmarried-relatives housing apps. However, RHS or other government property providers have not yet , pulled other recommended procedures to construct for the interagency jobs-such as, from the evaluating specific ventures having consolidating similar https://elitecashadvance.com/installment-loans-az/phoenix/ housing applications, in addition to those people that would require statutory change.
RHS fundamentally consented with possesses handled the GAO’s previous recommendations for this new leasing recommendations and you may farm labor housing programs, but others require further attention. Particularly, RHS adopted three of one’s eight guidance GAO made in in order to boost the agency’s jobs to determine and reduce improper local rental assistance repayments. More strategies are necessary to incorporate the rest information, and therefore target shortcomings in the manner RHS estimates and account with the improper money. RHS along with managed about three of one’s eight guidance GAO manufactured in . Then measures must implement additional four, and that target flaws in RHS controls having making sure renter eligibility, certainly one of other problems.
Ongoing GAO really works shows that areas of RHS’s exposure administration getting the newest solitary-family unit members mortgage be sure program broadly make having federal standards, and others commonly totally consistent with criteria and you can top techniques. Including, RHS keeps policies and functions for a number of risk- management services addressed in the Workplace of Government and Budget suggestions (eg deciding debtor creditworthiness and you can overseeing lenders). But not, GAO’s constant works indicates that, in contrast to federal interior control conditions, RHS doesn’t always have written regulations and procedures for a committee responsible for contrasting borrowing top quality factors and you will approaching all of them owing to policy change. Also, particular benchmarks RHS uses to aid gauge the performance of the protected collection has actually restrictions that disappear their worth for assessing chance and they are maybe not totally consistent with top strategies having successful show steps. Such shortcomings get reduce capabilities of RHS’s chance-management work.
Why GAO Did This study
RHS, an agency within USDA, administers many direct financing, loan verify, and grant programs one support affordable property and you can people advancement for outlying owners. Based on USDA monetary and you may budget investigation, RHS protects a collection of nearly $120 billion in the houses financing and financing guarantees and you may administers way more than $step one million in the local rental advice repayments yearly. GAO granted three records because the s (look for GAO-11-329, GAO-12-554, and GAO-12-624) and also lingering work in this area.
This testimony lies in the individuals around three records and continuing GAO performs. They discusses (1) earlier GAO results into the quantity that the housing applications from RHS and you may HUD overlap and you can relevant implications to own system venture and you can combination; (2) the position regarding GAO tips about the leasing property advice system and you will ranch work property financing and you can give system; and you will (3) first findings from the constant writeup on chance-government methods to the single-household members financing make sure system. To change the condition from information, GAO assessed RHS policies, tips, and you can accounts. For its lingering really works, GAO assessed federal conditions and you may best means to possess chance management and you can compared them with RHS regulations, methods, and you may techniques. GAO and additionally interviewed RHS officials.
GAO renders no the fresh advice inside testimony, but could imagine and then make even more pointers immediately after their lingering tasks are over.
