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RCED-85-93 1 (1985-03-29)

handle is hein.gao/gaobabezh0001 and id is 1 raw text is: REPORT BY THE U, S. General Accounting Office Public Housing Vacancies And The Related Impact Of HUD's Proposal To Reduce Operating Subsidies The Department of Housing and Urban Development's (HUD's) public housing program houses 3.4 million low- income people in 1.2 million housing units. These units are administered by over 3,000 public housing authorities (PHAs), which receive operating subsidies from HUD. PHAs are eligible for these subsidies for all units, including vacant ones. However, HUD has proposed reducing its financial assistance to PHAs that have vacancies in excess of 3 percent. According to HUD data, about 70,000 units, or 5.8 percent of all public housing units, were vacant on September 30, 1984. Vacancy rates exceeded 3 percent at 1,250 PHAs. Officials at the seven PHAs visited by GAO cited normal turnover, modernization and demolition activities, physical deterioration, poor management, and inadequate demand as reasons for vacancies. Actions to reduce vacancies were underway or planned at each of these PHAs. Most of the public comments received on HUD's proposal were unfavorable. However, at the seven PHAs visited, five anticipated that HUD's proposal would have little effect on their operating subsidies. Two PHAs estimated that HUD's proposal would significantly reduce their operating subsi- dies and impair their operations. uui ll 126587 GAO/RCED-85-93 MARCH 29, 1985 lCCou <

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