Public Housing:

HUD's Approval Process for Country Creek Housing Project, Dallas, Texas

RCED-90-30: Published: Oct 20, 1989. Publicly Released: Nov 20, 1989.

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Pursuant to a congressional request, GAO reviewed the Department of Housing and Urban Development's (HUD) approval of a Dallas Housing Authority public housing project required by a court-approved consent decree, focusing on: (1) HUD compliance with approval procedures for the project proposal; (2) whether an appropriations amendment prohibiting federal funding of housing demolition invalidated the consent decree; and (3) whether proceeds from the sale of another Authority could be categorized as nonfederal funds and used to cover demolition costs.

GAO found that: (1) HUD properly approved the project proposal, although its approval guidelines were vague; (2) the amendment did not invalidate the consent decree, but did delay the project's approval; and (3) project sale proceeds were nonfederal funds, but another court order prohibited the use of those funds for housing demolition.

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