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126709 1 (1985-04-15)

handle is hein.gao/gaobactkz0001 and id is 1 raw text is: 



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

                                    FOR DELIVERY AT
                                    3:00 P.M. EST
  IIII 1111111IVERY A
                                    MONDAY, APRIL 15, 1985

   126709                 STATEMENT OF
                JOHN H. LUKE, ASSOCIATE DIRECTOR
           HOUSING AND COMMUNITY DEVELOPMENT PROGRAMS
     RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION

                          BEFORE THE
            SUBCOMMITTEE ON HOUSING AND URBAN AFFAIRS
                            OF THE
         COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS
                     UNITED STATES SENATE
                              ON
                OPPORTUNITIES TO REDUCE COSTS AND
      IMPROVE TARGETING IN THE FARMERS HOME ADMINISTRATION
                SECTION 502 HOUSING LOAN PROGRAM

Mr. Chairman and Members of the Subcommittee:

     We appreciate the opportunity to assist your Subcommittee
in considering some of the important issues surrounding the
Farmers Home Administration (FmHA) section 502 single-family
homeownership program. As you may know, we are in the final
stages of completing a study of FmHA's efforts to reduce housing
costs and better target program assistance to rural households.
My remarks today represent preliminary observations on the
results of our current study.


     The objectives of our study were to determine


     --who is benefitting from the housing program and what
       type of housing assistance they are receiving,


     --what actions FmHA has taken to target assistance to
       lower income households, and


     --what opportunities exist to reduce program costs.


     To accomplish these objectives, we analyzed PmHA's housing
loan activity for fiscal years 1983 and 1984. Specifically, we
analyzed data on more than 120,000 housing loans made under the

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