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CED-80-119 1 (1980-08-12)

handle is hein.gao/gaobabawx0001 and id is 1 raw text is: 
                 RESTRICTED-'-Not to b6 leleased outside the General
                 Accounting OfficeCE Ccpt -N  thebas of specitic approval

                 Pry the  Office  of Congress/'--al  He 1Atons-

                   UNITED STATES GENERAL ACCOUNTING OFFICE FTLEASE
                           WASHINGTON, D.C. 20548


COMMUNITY AND ECONOMIC                               AUGUST 12. 1980
DEVELOPMENT DIVISION
      B-199708

      The Honorable Norman E. D'Amours                   III 1111111111111

      House of Representatives
                                                            113050
      Dear Mr. D'Amours:

          Subject: fnquiry into the Farmers Home Administration's
                   4Selection of a Developer To Construct a
                   Housing Project in New Hampshirf(CED-80-119)

           In accordance with your December 7, 1979, request and
      subsequent agreements with your office, we inquired into the
      Farmers Home Administration's (FmHA's) selection of a proposal
      submitted by Mr. Jack Heaton of Dorset, Vermont, to develop a
      rental housing project for the elderly under FmHA's Congregate
      Housing Demonstration Project in Carroll County, New Hampshire.

           We made our review at FmHA headquarters in Washington,
      D.C.; the FmHA State office in Montpelier, Vermont; and the
      Federal Emergency Management Agency in Boston, Massachusetts.

           On April 3, 1980, we briefed you on our review. As
      requested, this letter confirms the information provided to
      you at that time. To summarize, we found that:

          --While FmHA has not yet developed procedures
            for implementing Executive Order 11988 on flood
            plain development, FmHA State offices are required
            to comply with the order. FmHA officials maintain
            that the flood plain requirements would have been
            complied with had the original developer completed
            the project.

          --The July 3, 1979, site feasibility analysis was
            prepared by the FmHA State office architect because
            the preapplication data requested by FmHA was
            minimal. This analysis is usually prepared by
            applicants, and not by FmHA personnel, during a
            later application phase. While the analysis did
            not refer to the project's access road, which is
            located in a flood plain, FmHA State office
            officials told us that they were aware of this
            problem. Had the project progressed to the next

                                                        (382240)

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