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B-193323 1 (1980-01-31)

handle is hein.gao/gaobadhyl0001 and id is 1 raw text is: /4I~ /2700 C&r THE COMPTROLLER GENERAL ' 4 OF THE UNITED STATES WASHINGTON. D.C. 20548 FILE: B-1933 MATTER 0 DIGEST: F: 23 DATE: January 31, 1980 U.S. v. Garney White -Lunding of judgment Cost of Farmers Home Administration (FmHA) compliance with court order to take all steps necessary to correct structural defects in house of rural home loan borrowers should be paid from funds appropriated to Department of Agriculture for administrative expenses of programs since order remedies situation created by FmHA's failure to perform duty under the program to service real estate security under authorization of title V of the Housing Act of 1949, as amended, 42 U.S.C. §§ 1471 et seq. . Order is not money judgment payable from the permanent indefinite appro- priation established by 31 U.S.C. § 724a. FmHA may not use funds appropriated under 42 U.S.C. § 1479(c) because borrowers' house was completed before the time period covered by the after-enacted section. This responds to a request by the Department of Justice that we advise the Department of Agriculture onthe correct appropriation -2 to charge the expenses of the armersHome Administr aiL='s 4o3-y compliance with an order of the United States District Court in U.S. v. White et ux., Civil No. WC 74-87-k (N.D. Miss.). PL4o);LG7 The order, in part, requires the Farmers Home Administration (FmHA) to take the steps necessary to correct structural defects in the defendant, White's house. The order provides a remedy for injuries resulting from what the court found to be FmHA's failure to perform its duty under 42 U.S.C. § 1476(a) to service real property held as security for rural home loans. Background In March, 1971, the defendants, Mr. and Mrs. Garney White received a FmHA loan to buy a house then under construction. The FmHA made the loan under the authority of Title V of the Housing Act of 1949, (the Act) 42 U.S. C. §§ 1471 et seq. (1976). The Whites . I 41Z ef (/ IV Dr--CISION W P

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