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![handle is hein.gao/gaobaagtb0001 and id is 1 raw text is:
DOCURENT R2SUBE
01174 - [110516681 AztriCtj!$'
[Use of Farmers Home Administration Financed Rural Reptal
Housing for commercial Office Space]. B-171630. March 1', 1977.
Released Bay 5, 1977. 3 pp. * enclosure.
Report to Rep. Les Aspin; by Robert F. Keller# Actir,
comptroller General.
Issue Area: Domestic Housing and Community Development:
hanagement of Federal Housing Programs (2105).
Contact: CommuLity and Economic Development Div.
Budqet FPncti-,n: Income Security: Public Asaistance and Other
Income Supplements (604).
Organizatisn Concerned: Department of Agriculture; Farmc j Hoe
Admini&tration; Valtra Corp., Haxomanie, I1; Vick Homes,
-nc., Hazomanie, WI.
congressional Relevance: Rep. Les aspin.
Authority: Housing Act of 1949, as amended.
A review was conducted to determine the legality and
propriety of a decision by Farmers Home Administration.
Department of Agriculture, to rermit the Valtra Corporation to
convert two buildings into office space and i ato apartment units
for senior citizens and families of low and moderate incomes.
FindiLgs/Conclusions: The loan agreements between Farmers Home
Adwinistration and Maltra Corporation did not permit Valtra to
use the apartment unit in the second building as office space,
nor did it permit Waltrals tenant, Vick Homes, Inc. to use the
basement office space in the first building. The agreements
provided that, unless Farmers Neme Administratio gave it prior
consent, altra could not use the housing for any purpose other
than rental-housing for eligible occupants. Valtra acted without
Farmers Home Administration's prior approval. The conversion of
space in the second building to an apartment (unit 21) was also
done without prior consent. In addition, apartment 21 did not
meet the requirements of the Department of Housing and Urban
Development or comply with state and lo'al building codes.
valtra also violated the loan agreeaevt by excluding in their
financial reports the rental income received for the basement
office space. The Wisconsin State Director of Farmers Home
Administration has required Valtra to :emodel apartment 21 so
that it will meet government standards, and has retained a
certified public accountant to audit Valtr 's financial records
for the 1972-1976 period. (LDN)](ViewImageLocal?handle=hein.gao/gaobaagtb0001&div=1&collection=&method=preview&ext=.png&size=3)