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RED-75-339 1 (1975-02-27)

handle is hein.gao/gaobaaegc0001 and id is 1 raw text is: (: 9c $/1 COMPj'TROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-167637 ~W I:; t~?'~~ S... ......' u> ~ ~ Jt CD LrQ% {' 1! ~ L 62 ii1 Le b,1ff The Honorable Floyd V. Hicks, Chairman Manpower and Housing Subcommittee Committee on Government Operations House of Representatives RELEASED LM090412 Dear Mr. Chairman: . Congressman William J. Randall, Chairman of the Legal and Monetary Affairs Subcommittee--the Subcommittee previously having responsibility for housing programs--asked that we review the Department of Housing and Urban Development's (HUD's) procedures for allocating housing units to developers under the sections 235 and 236 subsidized housing mortgage insurance programs. He asked that we review HUD activities in Miami (Coral Gables), Florida; Philadelphia, Pennsylvania; and Jackson, Mississippi. The Department of Justice was investigating HUD activities at the Coral Gables office, and at its request, we did not do any work at that location. By agreement with his office, we included HUD's Birmingham, Alabama, office in our review in lieu of the Coral Gables office. He specifically asked that our review be directed to answering the following questions. 1. What are the criteria employed by these HUD offices in determining which developers shall be approved? 2. Has there been a pattern in these offices indicating a preference by HUD for a few select developers? 3. To what extent does HUD consider past performance by a developer who has previously received funds under the sections 235 or 236 programs? In this regard, has HUD approved commitments to developers to construct addi- tional units when their past performance reveals they have encountered financial or management difficulties with previously insured projects? 4. What is HUD's role from the time of approval until the point of completion for a section 235 housing unit or a section 236 project? S..... iBrIllII 0 imlllllllll lllllllmlllr~ il / ; tHIllllll~ll RED-75-339

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