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OGC-77-9 1 (1976-12-23)

handle is hein.gao/gaobaabxh0001 and id is 1 raw text is: 

DOCUMENT RESUME


0057 - [A0590805]

Civil Litigations Concerning the Section 236 'lousing Procram].
OGC-77-9; B-115399. December 23, 1976. 2 pp.

Repnrt to the Congress; by Elmer B. Staats, Comptroller General.

contact: Office of the General Counsel.
Budget Function: Miscellaneous: Impoundeent Control Act of 1974
     (1005).
Organization Concerned: Department of Housing arnd Urban
    De eelopment.
Congressional Relevance: Congress.
Authority. Departm.nt of HUD--Independent Agencies Appropriation
    Act for FY 1977 (P.L. 94-378). National Housing Act.
    Impoundment Control Act of 1974. Underwood et. al v. Hills,
    Civil Action 76-0469, DCDC.

         Several civil litigations concerning the section 236
Housing Program are traced. In July 1976, GAC notified Congress
of its intention to institute a civil action to require release
of the budget authority foz makinq operating suLsidy payments
under section 236 of the National Housing Act. A revision in
Public Law 94-378 authorized HUD to disperse the budget
authoLity involved in this rescission to other housing prog.rams.
In a class action suit, on behalf of all section 236 project
tenants, the district court ordered HUD to make operating
subsidy payments. Most recently the U.S. Supreme Court ordered a
stay on th district court's order, and the U.S. Court of
Appeals enjoined HUD from allocating the moneys in the section
236 reserve account to fund programs other than the operating
subsidy program. Findinqs/Conclusions: GAO concluded that the:e
no longer exists an impoundment of the section 236 reserve
funds. The budqet authority is being withheld pursuant to ccurt
orders and rot as a result of executive branch action. For this
reason, GAC did not file suit in this case. (SW)

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