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089344 1 (1971-02-12)

handle is hein.gao/gaobacvhq0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 1903 JOHN F KENNEDY FEDERAL BUILDING GOVERNMENT CENTER BOSTON, MASSACHUSIErrS 02203 FEB 12 1971 Dear Mr. Barry: We have surveyed selected aspects of mortgage insurance for rehabilitation of housing projects at the Housing and Urban Development (HUD) Area Office, Boston, Massachusetts. The survey concerned the HUD feasibility determinations which are designed to assure that proposed rehabilitation projects are economically sound and that inspection policies and practices are adequate. The results of our survey were discussed with the Deputy Director of the HUD Area Office and are summatized below. 1. In addition to the basic purpose of providing decent, safe, and sanitary housing for families of low and moderate incomes, the rehabilitation program under the various sections of the National Housing Act is aimed at conserving or improving residential neighbor- hoods. The Boston Area Office is approving for rehabilitation row house properties in blocks that contain many vacant and dilapidated structures. It generally does not require that a number of the row house properties be contiguous. We believe there are certain drawbacks inherent in this practice. There is no guarantee that other properties will be rehabilitated through other housing programs or by the private owners, and therefore, the investment in a given block may be eventually lost. There is no guarantee that other housing programs will consider rehabilitation as the best method of improving a block and subsequently may demolish the structures. Finally, the cost for the rehabilitation of scattered structures is not economical and has been estimated to cobt from $2 to $3 per square foot more than projects containing a number of contiguous structures. The appearance of an area is usually governed by the condition of the majority of structures it contains. Rehabilitation of a small number of structures scattered throughout a neighborhood where the majority of the housing is dilapidated, we believe, will result in a lesser beneficial effect than rehabilitating a number of contiguous row houses. Because of this, we believe that the Boston Area Office should consider requiring sponsors to include a sufficient number of contiguous row house or dwelling properties when proposing rehabilitation projects. Also, the Boston Area Office should assist project sponsors ~24~r _____

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