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Duplicative and Unnecessary Renovations Made in the HUD-Subsidized Concord Commons Apartments in Rockford, IL

CED-82-67 Published: Apr 15, 1982. Publicly Released: Apr 26, 1982.
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Highlights

In response to a congressional request, GAO discussed duplicative and unnecessary repairs approved by the Department of Housing and Urban Development (HUD) at an apartment complex in Rockford, Illinois.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Housing and Urban Development The Secretary of Housing and Urban Development should notify HUD area offices nationwide of the need to coordinate renovation work performed by their Property Disposition Branch and Housing Development staffs when HUD-owned multifamily properties are sold to private buyers. Similar to the coordination procedure designed by the Chicago Area Office in August 1981, such coordination could be certified by a joint memorandum prepared by the responsible officials in both groups concurring in nonduplicative renovation work.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Housing and Urban Development The Secretary of Housing and Urban Development should direct the appropriate offices of HUD to determine if the problems disclosed regarding the renovation of Concord Commons are of sufficient magnitude elsewhere to warrant nationwide corrective actions. In this determination, the Secretary should direct that outstanding policies, guidelines, and standards for the renovation of multifamily projects sold with HUD-insured loans and subsidies be reviewed to determine if further clarification is needed for: (1) controlling renovation work, including approval of repairs beyond those necessary to provide decent, safe, and sanitary housing; and (2) evaluating the reasonableness of proposed renovation work, including requirements for conducting cost-effectiveness and marketing studies as part of the decisionmaking process.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

Housing
Community development programsContract administrationFederal aid to localitiesHousing programsHousing repairsLoansRent subsidiesMortgage programsHousingUrban development