B-157947, DEC. 2, 1965

B-157947: Dec 2, 1965

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ADMINISTRATOR IN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: REFERENCE IS MADE TO LETTER DATED OCTOBER 28. IN PRACTICALLY EVERY INSTANCE THEY HAVE BEEN REFERRED TO THE DEPARTMENT OF JUSTICE FOR FURTHER COLLECTION ACTION. THE REASON FOR THIS APPEARS TO BE THAT THESE ADVANCE PLANNING CLAIMS ARE CONTESTED BY THE DEBTORS TO THE EXTENT THAT THEY CAN ONLY BE RESOLVED BY LITIGATION OR COMPROMISE. THE NUMBER OF CLAIMS FOR UNREPAID PLANNING ADVANCES WILL BE EVEN SMALLER THAN IT HAS BEEN. WE HAVE BEEN INFORMALLY ADVISED BY MR. THAT THE DEPARTMENT OF JUSTICE WOULD HAVE NO OBJECTION TO HAVING THESE ADVANCE PLANNING CLAIMS REPORTED DIRECTLY TO IT FOR APPROPRIATE COLLECTION ACTION AFTER REASONABLE ADMINISTRATIVE EFFORTS TO COLLECT THE CLAIMS HAVE BEEN EXHAUSTED.

B-157947, DEC. 2, 1965

TO THE HONORABLE ROBERT C. WEAVER, ADMINISTRATOR IN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT:

REFERENCE IS MADE TO LETTER DATED OCTOBER 28, 1965, FROM MR. RICHARD L. STILL, ACTING COMMISSIONER, COMMUNITY FACILITIES ADMINISTRATION, HOUSING AND HOME FINANCE AGENCY, REQUESTING THAT CLAIMS DUE THE UNITED STATES FOR UNREPAID ADVANCES FOR PUBLIC WORKS PLANNING BE SPECIFICALLY EXCEPTED FROM THE DEBT REPORTING REQUIREMENT OF 4 GAO 5050.

THE RECORDS OF OUR OFFICE SHOW THAT THE NUMBER OF ADVANCE PLANNING CLAIMS REFERRED TO THE CLAIMS DIVISION OF OUR OFFICE HAS BEEN RELATIVELY SMALL, AND IN PRACTICALLY EVERY INSTANCE THEY HAVE BEEN REFERRED TO THE DEPARTMENT OF JUSTICE FOR FURTHER COLLECTION ACTION. THE REASON FOR THIS APPEARS TO BE THAT THESE ADVANCE PLANNING CLAIMS ARE CONTESTED BY THE DEBTORS TO THE EXTENT THAT THEY CAN ONLY BE RESOLVED BY LITIGATION OR COMPROMISE, AND NEITHER OF THESE ACTIONS COME WITHIN THE JURISDICTION OF OUR OFFICE. ALSO, IT APPEARS THAT, PURSUANT TO SECTION 602 (B) OF THE HOUSING ACT OF 1964, 40 U.S.C. 462 (H), WHICH GRANTS THE ADMINISTRATOR OF THE HOUSING AND HOME FINANCE AGENCY AUTHORITY TO TERMINATE OR MAKE EQUITABLE ADJUSTMENTS IN LIABILITY FOR REPAYMENT OF ADVANCES FOR PUBLIC WORKS PLANNING, THE NUMBER OF CLAIMS FOR UNREPAID PLANNING ADVANCES WILL BE EVEN SMALLER THAN IT HAS BEEN.

WE HAVE BEEN INFORMALLY ADVISED BY MR. JOHN DINSMORE, DEPUTY CHIEF COUNSEL, COMMUNITY FACILITIES ADMINISTRATION, THAT THE DEPARTMENT OF JUSTICE WOULD HAVE NO OBJECTION TO HAVING THESE ADVANCE PLANNING CLAIMS REPORTED DIRECTLY TO IT FOR APPROPRIATE COLLECTION ACTION AFTER REASONABLE ADMINISTRATIVE EFFORTS TO COLLECT THE CLAIMS HAVE BEEN EXHAUSTED.

IN VIEW OF THE FOREGOING, IT APPEARS THAT NO USEFUL PURPOSE WILL BE SERVED IN REFERRING ADVANCE PLANNING CLAIMS TO OUR OFFICE FOR FURTHER COLLECTION ACTION. THEREFORE, IT IS CONCLUDED THAT UNDER THE AUTHORITY OF 4 GAO 5050.30G AN EXCEPTION TO THE GENERAL REPORTING REQUIREMENT OF 4 GAO 5050 IS JUSTIFIED, AND YOU MAY DISCONTINUE REPORTING SUCH CLAIMS TO THIS OFFICE.