HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobaaawy0001 and id is 1 raw text is:
VtfAS Ijj, WA-NGTC N. D.C. 20348
rMSCUMCES A~ND ECONOMIC
B-118718
The Honwrable LM096828
The Secretary of Housing anu
Urban Development
Enclosed is a copy of our testimony pre.sented on July 18, 1975,
Wufore the Subcommittee on Manpower and Pouing, House Cotonittee on r
Gover-nen, Operations, on the results of our review of the effective-
ness of the Department of Thousing and Urban Developmnt' over.'t -r
Federal subIdies paid under the A-sec . i c, 235 6..p as 5 j .t
program. Our r.t'.- showed thc following weaknesses i,, the puc,.-.zrcs
and practices thiat 17D and mortgagees followed in adminirter., tioe
r e u.rp m .en t s r o r. . . . . . . . a ,o x . n f i U e [, d u e u :.fo r r
program.
--Contr:-ry to hU r eyir eent' h c ,e r, rI didT net I
to the noot:,eas incre-ses in t.heor incomrs
from chanzes iern1 --nymnt wh,.- -,,uch chang ... H
--Mortgagees did not notify IMD then they becnno c we cf
unreported job changes and did not make itiC'activ4, adjust-
ments to carrect subsidy ovtrpay-. ts,,.
--Homeowners' income recert'fications were performed !at-
ori not at all by the mortgagees.
--:orrgagues incluced ineligible insurance costs in the
computatious for determining thL assistance payqnLts.
--incowe Lupvrte by homeow-ners to mortgagees differed from
income reported to T-.nal Revenoue Service. Althrvugh IT,
hcs a procedure whereby homeowners authorize HUD to obtain
tax returns from IRS, HUD has niot Implemented this
Procaul-re.
On the basis of a statistical sample of homeowners ptrtlcipating
in The program, we estimAted that these weaknesses resulerr in TFdera!
overpayinents of $24.6 million annually on bcha]. of some 1]0,000
homeo ners.
Rl2)-7b-21
BEST D f 'iF7 AVAILABLE
~L](ViewImageLocal?handle=hein.gao/gaobaaawy0001&div=1&collection=&method=preview&ext=.png&size=3)