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CED-81-147 1 (1981-07-30)

handle is hein.gao/gaobabcir0001 and id is 1 raw text is: UrNI1'ED STATES GENERAL ACCOUNTING OFFICE WASHINGTON. D.C. 20548 S ,,uide tIt COMMUNITY AND LCONOMIC of C Ito OCVXWMKNT DIVISION by the O1 B-204167 RELEASED LY30,1981 House of Representatives I\U11\IU2ll\ 116236 Dear Ms. Oakar: Subject; Inquiry into the Status of a Proposal To Construct 16 Single-Family Detached Homes for the Cuyahoga Metropolitan Housing Authority in Cleveland, Ohio (CED-81-147) In accordance with your May 7, 1981, request and subsequent agreements with you, we inquired into the status of a proposal submitted by The Dillon Company to construct 16 single-family detached homes for rental to lower income persons for the Cuya- hoga Metropolitan Housing Authority (CMHA) in Cleveland, Ohio. The proposed construction is sponsored by the Department of Housing and Urban Development (HUD) under its low-rent housing program. As agreed, our inquiry centered on the status of the proposal, actions that must be taken before the proposal is approved by HUD, and costs proposed by the developer to con- struct the units. Also, as discussed with you, the Inspector General of HUD agreed on June 10, 1981, to make a management review of CMHA's operations. On June 24, 1981, we briefed you on the results of our inquiry. This letter summarizes the information provided to you at that time. --The proposed project is in the early development stage and must go through a lengthy HUD review process before costs are finalized. This procesS, which may take sev- eral months, can result in the price going either up or down. Before HUD tentatively approves the project, it will have to determine whether (1) The Dillon Company's proposal is responsive to CMHA's invitation for propos- als, (2) the site looks suitable, and (3) preliminary costs appear reasonable. Final approval would be given after final plans are prepared and agreement on a final price is reached among the developer, CMHA, and HUD. On June 24, 1981, CMHA forwarded the developer's proposal to HUD for preliminary approval. --While the invitation for proposals for this project called for three-bedroom duplexes and rowhouses and k vd ir4~ 4- Ho-f Lk ~ (382316)

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