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CED-77-84 1 (1977-06-16)

handle is hein.gao/gaobaacjl0001 and id is 1 raw text is:               RESTRICTED - Not to be released outside the Ge,eral C    - 77-
              Account:ng Office except on the basis of specific approval
  OLE 4by the Office of Congressional Relations.            -/6~;- r77
                COMPTROLLER GENERAL OF THE UNITED STATES  ---------_____
                         WASHINGTON, D.C. 20548



                                LM102521
B-171630                                      JUN 16 1977


The Honorable Robert S. Walker
House of Representatives

Dear Mr. Walker:

     In accordance with your request of January 12, 1977, we
have reviewed certain aspects of the fair market rents estab-
lished by the Department of Housing and Urban Development for
new housing units in Lancaster, Pennsylvania. These rents
are used in connection with the Department's section 8 leased
housing program. We examined the documentation which the
Department has to support its determinations that:

     --Rents charged to tenants in adjacent York County
       approximate those charged in Lancaster County and,
       therefore, should be used in Lancaster because
       specific comparable rents were not available for
       Lancaster.

     --York County rents should be increased by 12 percent
       in computing fair market rents for the Lancaster
       area.

Although not requested to do so, we examined some aspects
of the Department's section 8 rental assistance contracts
for Lancaster County and elsewhere in eastern Pennsylvania.

     We examined records and talked to officials at the
Department's regional and area office in Philadelphia and at
its headquarters office in Washington, D.C. We also talked
to officials of the Pennsylvania Housing Finance Agency.
Additional information was obtained from management personnel
of several nonsubsidized apartment projects in the Lancaster
area. Our work was confined primarily to a review of the
adequacy of documentation which the Department has to support
the fair market rent schedules published in the Federal Reg-
ister on April 6, 1976, for new construction and substantial
rehabilitation in Lancaster County. We made no attempt to
examine the leasing of existing housing under the section
8 program.


CED-77-84

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