Housing and Urban Development:

Management and Budget Issues in HUD's Fiscal Year 1995 Appropriation

T-RCED-94-218: Published: May 12, 1994. Publicly Released: May 12, 1994.

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GAO discussed management and budget issues related to the Department of Housing and Urban Development's (HUD) proposed reorganization. GAO noted that: (1) HUD will need to substantially change its organizational culture, focus on its reinvention initiatives, and dedicate the resources necessary to complete these initiatives if it is to successfully reinvent itself; (2) the Government National Mortgage Corporation may not be able to adequately focus on risk areas and respond to future management challenges because of staffing limitations; (3) HUD information systems are not adequately secure and have not been planned and managed to meet its missions and strategic objectives; (4) HUD will need sustained management commitment to implement the corrective actions identified; (5) HUD need for new budget authority is questionable, since it routinely has significant annual unobligated fund balances, has a backlog of at least $1.4 billion in funds that are obligated for public housing modernization efforts, and has not obligated $7.9 billion in 1994 appropriations; (6) HUD cannot accurately estimate the future costs of incentives it provides to property owners to preserve their properties as low-income housing because it cannot determine when property owners will file for preservation incentives; and (7) HUD needs to assist public housing authorities and private landlords by helping them settle lead-based paint poisoning claims.

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