B-182885, JAN 24, 1975

B-182885: Jan 24, 1975

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GAO DOES NOT HAVE AUTHORITY TO RENDER BINDING DECISION RELATIVE TO PROTEST CONCERNING ACTIONS OF FHA/HUD IN DISPOSING OF ACQUIRED PROPERTIES SINCE GAO'S ROLE IS LIMITED TO PERFORMING AUDITS PURSUANT TO 31 U.S.C. THE PROPERTIES IN WHICH THE PROTESTER IS INTERESTED ARE MULTI-FAMILY DWELLINGS WHICH HAVE BEEN INSURED BY FHA AND ACQUIRED THROUGH DEFAULT THE FORECLOSURE PROCEEDINGS. SEC. 1702 (1970) AUTHORIZES THE SECRETARY IN PERTINENT PART (1) TO MAKE SUCH EXPENDITURES AS ARE NECESSARY TO CARRY OUT THE DISPOSAL OF PROPERTY AND OTHER FUNCTIONS WITHOUT REGARD TO ANY OTHER PROVISIONS OF LAW GOVERNING THE EXPENDITURES OF PUBLIC FUNDS AND (2) TO SUE AND BE SUED IN ANY COURT OF COMPETENT JURISDICTION.

B-182885, JAN 24, 1975

GAO DOES NOT HAVE AUTHORITY TO RENDER BINDING DECISION RELATIVE TO PROTEST CONCERNING ACTIONS OF FHA/HUD IN DISPOSING OF ACQUIRED PROPERTIES SINCE GAO'S ROLE IS LIMITED TO PERFORMING AUDITS PURSUANT TO 31 U.S.C. SEC. 850 (1970).

MR. EUGENE LEFKOWITZ:

MR. EUGENE LEFKOWITZ HAS PROTESTED THE MANNER IN WHICH THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) HAS ATTEMPTED TO DISPOSE OF THE TINKER DEL VILLAGE APARTMENTS, DEL CITY, OKLAHOMA, UNDER AN INVITATION FOR BIDS. MR. LEFKOWITZ CONTENDS THAT HUD EMPLOYED INACCURATE AND MISLEADING INFORMATION IN THE IFB REGARDING PAST UTILITY BILLS OF THE APARTMENT COMPLEX.

THE PROPERTIES IN WHICH THE PROTESTER IS INTERESTED ARE MULTI-FAMILY DWELLINGS WHICH HAVE BEEN INSURED BY FHA AND ACQUIRED THROUGH DEFAULT THE FORECLOSURE PROCEEDINGS. PURSUANT TO 12 U.S.C. SEC. 1713(1) (1970) THE SECRETARY OF HUD MAY DISPOSE OF PROPERTY NOTWITHSTANDING ANY OTHER PROVISION OF LAW RELATING TO THE ACQUISITION, HANDLING, OR DISPOSAL OF REAL PROPERTY BY THE UNITED STATES. FURTHERMORE, 12 U.S.C. SEC. 1702 (1970) AUTHORIZES THE SECRETARY IN PERTINENT PART (1) TO MAKE SUCH EXPENDITURES AS ARE NECESSARY TO CARRY OUT THE DISPOSAL OF PROPERTY AND OTHER FUNCTIONS WITHOUT REGARD TO ANY OTHER PROVISIONS OF LAW GOVERNING THE EXPENDITURES OF PUBLIC FUNDS AND (2) TO SUE AND BE SUED IN ANY COURT OF COMPETENT JURISDICTION. WHILE THIS AUTHORITY FORMERLY RESIDED IN THE COMMISSIONER OF THE FEDERAL HOUSING ADMINISTRATION, IT WAS TRANSFERRED IN 1965 TO THE SECRETARY OF HUD BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT, PUBLIC LAW 89-174, SEC. 5(A), 79 STAT. 669, 42 U.S.C. SEC. 3534 (1970). FHA'S AUTHORITY IS SIMILAR IN EFFECT TO THE EXTRAORDINARY AUTHORITY TO DETERMINE AND PRESCRIBE OBLIGATIONS FOUND IN MANY GOVERNMENT CORPORATION CHARTERS. ALTHOUGH FHA IS NOT SPECIFICALLY CHARTERED AS A CORPORATION, FOR THE PURPOSE OF THE GOVERNMENT CORPORATION CONTROL ACT IT IS DEFINED IN 31 U.S.C. SEC. 846 (1970) AS A WHOLLY OWNED GOVERNMENT CORPORATION. 38 COMP. GEN. 343, 344 (1958).

THE RESPONSIBILITY OF OUR OFFICE UNDER THE ACT IS LIMITED TO PERFORMING AN AUDIT IN ACCORDANCE WITH THE PRINCIPLES AND PROCEDURES APPLICABLE TO COMMERCIAL TRANSACTIONS (31 U.S.C. SEC. 850 (1970)) AND THE ACT REQUIRES THAT A REPORT OF THE AUDIT FINDINGS BE PRESENTED TO THE CONGRESS. U.S.C. SEC. 851 (1970). CONSEQUENTLY HUD IS NOT REQUIRED AS A MATTER OF LAW TO FOLLOW OUR DECISIONS INTERPRETING THE LEGALITY OF ITS PROPERTY DISPOSAL ACTIONS. MATTER OF FRANK E. MELCHIORRE, B-181961, B-182280, NOVEMBER 26, 1974.

THEREFORE, OUR OFFICE IS WITHOUT AUTHORITY TO DECIDE THE PROTEST AND IT WILL NOT BE CONSIDERED.