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B-177486 1 (1974-01-31)

handle is hein.gao/gaobabkom0001 and id is 1 raw text is:              RE lCT ED -    N ot to ]be released outside the General
             Accounting Office except On the basis of specific approval
         byth      Ofice of Ce e-c   e   ~al -o~a ns  a recor~d of u.'hi '
                        SetogPublications Branchy OAS
                                  OF THE UNIrED STATES
                         WAGHENGTON, D.C. XouaAI                  ....M..

         RELEASED

                                                      JAN 3 11974
 B- 177486



 The Honorable William D. Fords Chairman
 Subcommittee on Agricultural Labor
 Committee on Education and Labor
 House of Representatives

 Dear Mr. Chairman:

     Your letter of May 3, 1973p requested that we investigate and
 report on allegations made by the Florida Rural Legal Services,
 Incorporated, and the American Friends Service Committee, Incorporated,
 concerning admni-aon of£theFa-m---Labor--Housing- Progra, iin Palm
 Beach C gt, F.orida,o, bythe Department of Agriculture's Farmers
 HoqeAm3       ,o- (X       The allegations, which involved one of
 two fqr  a    iarrolts provided by the Rangeline Labor
 Foundation, Incorporated, and financed with FHA-insured loans, were
 as follows.

     --FHA attempted to cover up the possible loss of hundreds
       of thousands of dollars, due to poor FHA administration,
       by negotiating to transfer the project to the Palm Beach
       County Housing Authority (PBCHA).

     --Rangeline skimmed rental profits without adequately
       maintaining the labor housing project.

     --FHA permitted nonfarmworkers to occupy housing provided
       under the Farm Labor Housing Program although only
       farmworkers are eligible tenants.

     --Farm labor housing funds were used to increase labor
       contractors' control over farmworkers; specifically,
       one or more apartments were leased (block leasing) to
       labor contractors, contrary to FHA regulations.

     In summary, we found no evidence that FHA's proposed transfer of
the Rangeline project to PBCHA was an attempt to cover up possible
losses. BorhRangeline prpj~ets were Poorly maintained under the
original owners, and the lack or condition of the Rangeline records
was such that we could not verify the reported income and expenses.

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