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RCED-00-150R 1 (2000-06-06)

handle is hein.gao/gaobaaloz0001 and id is 1 raw text is: I GAO Accountability * Integrity * Reliability United States General Accounting Office Resources, Community, and Washington, DC 20548 Economic Development Division B-285279 June 6, 2000 The Honorable Harold E. Ford, Jr. House of Representatives Subject: The Status of Major HUD Funding Awarded to the Memphis Housing Authority Dear Mr. Ford: The Memphis Housing Authority (MHA), like other housing authorities around the country, annually enters into a contract with the Department of Housing and Urban Development (HUD) through which HUD agrees to provide funding for MHA to provide low-income persons with housing that is decent, safe, and sanitary-MHA's primary mission. MHA, in turn, agrees to manage the housing in accordance with the contract's provisions. In January 1997, HUD's Office of the Inspector General (OIG) recommended that HUD declare MHA in violation of its contract with HUD because the housing authority was not fulfilling its primary mission. The OIG stated that MHA was not fulfilling this mission because its buildings, grounds, and individual dwelling units are in extremely poor condition because of age and because MHA had not effectively maintained or modernized its developments.1 HUD declined the OIG's recommendation to declare MHA in violation of its contract, instead choosing in early 1998 to enter into a performance agreement with MHA. The agreement, which took effect in July 1998, set broad goals for the authority, including time lines and specific benchmarks for improving the overall operation of the authority as well as for addressing the problems that the OIG identified. However, because of significant turnover among the authority's top management, MHA made little progress toward meeting the terms of the agreement. In February 1999, MHA hired a new executive director; shortly thereafter, the new executive director initiated discussions with HUD to renegotiate the terms of the agreement to better reflect his plans for improving MHA's performance. In April 2000, HUD and MHA entered into a binding memorandum of agreement replacing the March 1998 performance agreement. 'See Memphis Housing Authority, Memphis, Tennessee, HUD District Inspector General Southeast/Caribbean District (97-AT-201-1001, Jan. 13, 1997). GAO/RCED-00-150R Status of HUD Funds Drawn Down by MHA

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