Negotiated Sales of HUD-Owned Multifamily Housing Projects
CED-82-117: Published: Aug 16, 1982. Publicly Released: Aug 20, 1982.
- Full Report:
GAO was requested to analyze the Department of Housing and Urban Development's (HUD) negotiated sales of HUD-owned multifamily projects from October 1, 1976, through April 30, 1982. Specifically, the analysis examined: (1) what regulations, policies, and procedures govern negotiated sales of HUD-owned multifamily projects, and how often this sales method has been used; and (2) whether the regulations, policies, and procedures have always been followed, and what types of purchasers have acquired projects through the negotiated sales method.
GAO found that the Housing and Community Development Amendments of 1978 authorize the Secretary of HUD to dispose of a HUD-owned multifamily project on a negotiated, competitive bid or other basis on such terms as the Secretary deems appropriate, considering the low- and moderate-income character of the project. Current HUD regulations governing negotiated sales are contained in the Code of Federal Regulations. These regulations prescribe the types of projects and purchasers for which negotiated sales are permitted. However, the regulations allow the Assistant Secretary for Housing-Federal Housing Commissioner to waive any requirements with reasonable justification. Additional policies and procedures pertaining to negotiated sales are contained in three internal HUD memorandums which have not been codified. The most recent of these memorandums states that the use of the negotiated sales method will be expanded in the future. GAO concluded that, during the period from October 1, 1976, through April 30, 1982, there were no violations of Federal regulations prescribing the types of projects and purchasers for which negotiated sales were permitted.