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CED-79-51 1 (1979-03-01)

handle is hein.gao/gaobaaysh0001 and id is 1 raw text is: UNITE STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 COMMUNI1Yf ANO .OONOMIC DOVUI .PM9NT I VISION B-118718 MARCH 1, 1979 The Honorable Patricia Roberts Harris The Secretary of Sousing and Urban Development 108718 Dear Mrs. Harris: The General Accounting Office is concerned about [possible duplicate payments in the Department of Housing atid Urban- evelopmerit's --UD'sKSection 8 Uousing Assistance Program7fot existing units. We made a review to determine if contrfols exist to ensure that project owners are not collecting payments for the same tenant from both a public housing agency (PHA) and BUD under the section 8 program. This is possible because some project owners receive payments under two components of the existing housing program--the regular PHA-administered program and the special allocations program for troubled projects. The two components are administered by different organizations within HUD and pay- ments to owners are made from two different sources-PHAs and HUD. We found that controls do not exist, and, in fact, duplicate payments were made in three of nine special allocations projects we examined. Duplicate payments have also been identified by three HUD area offices we contacted and by BUD's Office of Inspector General. We believe BUD should establish controls to prevent such payments. BACKGROUND The Housing and Community Development Act of 1974 amended the United States Housing Act of 1937 and added, under section 8, a new program to provide rental assistance to families with incomes too low to obtain private housing. Among other things, the program makes use of existing housing stock. Generally, families pay 15 to 25 percent of their income for rent and BUD subsidizes the remainder. S,..CED-79-51 . . (28303) .... >

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