Housing and Urban Development:

Comments on HUD's FY 1997 Budget Request

T-RCED-96-205: Published: Jun 17, 1996. Publicly Released: Jun 17, 1996.

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GAO discussed the Department of Housing and Urban Development's (HUD) fiscal year 1997 budget request, focusing on: (1) HUD multifamily reengineering cost estimates; (2) proposed bonus pools for high-performing grantees who exceed established performance measures; and (3) HUD progress in addressing management deficiencies. GAO noted that: (1) HUD has requested about $22 billion in discretionary budget authority and plans about $33 billion in discretionary outlays; (2) overly optimistic cost control assumptions about the major restructuring of the multifamily housing program could affect the HUD budget request for rental assistance for low-income families; (3) HUD has requested $845 million in bonus funding for high-performing grantees in some of its new block grants; (4) implementing HUD performance funds will be complicated and time-consuming; and (5) HUD has proposed various internal controls to address management deficiencies.

Matter for Congressional Consideration

  1. Status: Closed - Implemented

    Comments: The entire $845 million for funding of bonuses will not be appropriated.

    Matter: Congress should consider not appropriating the $845 million for HUD proposed bonus pool funding until the Department develops adequate performance measures and supporting information systems to ensure that these funds are used effectively.

 

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