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119780 1 (1982-04-08)

handle is hein.gao/gaobacxuq0001 and id is 1 raw text is: 


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


COMMUNITY AND ECONOMIC                        0
DVELOPMKNT DIVISION                                      APR  a 1982



      Mr. Philip Abrams  
      General Deputy Assistant Secretary
        for Housing - Federal Housing
        Commissioner                                      1    1   a
      Department of Housing and Urban Development            119780

      Dear Mr. Abrams:

           Subject: (Review of  the adequacy of procedures followed
                     in selecting  Section 8 developers

           Our review of procedures  followed by three Department of
      Housing and Urban Development  (BUD) area offices (Atlanta,
      Chicago, and New York)  in selecting section 8 developers for new
      construction and substantial  rehabilitation projects disclosed
      some shortcomings and raised doubts  at two of the offices concern-
      ing whether the best proposals  had been selected in all cases.
      We found that

           --proposals of competing  developers had sometimes not been
             properly ranked,

           --developers were  selected without evidence that they had a
             legal right  to the proposed building site(s)(site control),

           --proposals  from, developers that were not selected were
             destroyed prematurely,

           --preliminary  evaluation meetings were not held to evaluate
             proposals.

           We are recommending  that appropiate  corrective action be
      taken to ensure that  all developers' proposals are promptly and
      adequately evaluated  and that the basis for selection is fully
      documented in accordance  with BUD's prescribed regulations and
      procedures.

           The Section  8 Lower-Income Rental Assistance Program ad-
      ministered by HUD  was established by the Housing and Community
  *   Development Act  of 1974 (Public Law 93-383) and is the Nation's
      largest and most  costly housing assistance program.  Under this
      program, BUD selects  developers to construct new housing and
      rehabilitate existing  housing which the developers subsequently
      rent to eligible  households.


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