HUD's Takeover of the Housing Authority of New Orleans
T-RCED-96-212: Published: Jul 8, 1996. Publicly Released: Jul 8, 1996.
GAO discussed the Housing Authority of New Orleans' (HANO) operational problems, focusing on the Department of Housing and Urban Development's (HUD) efforts to correct these problems. GAO noted that: (1) obstacles to improving HANO performance include HANO inability to perform routine maintenance and repairs on its buildings, and persistent interference by HANO board of commissioners into HANO daily operations; (2) such interference has resulted in cancelled modernization contracts and delays in HUD-mandated improvement actions; (3) HUD provided HANO $90 million in 1994 and over $37 million in 1995 to modernize unsafe buildings; (4) despite the presence of a professional property management contractor, HANO performance significantly declined in 1993 and 1994; (5) HUD attempts to resolve HANO management problems have not proven effective; and (6) in February 1996, HUD declared the housing authority in breach of its contract and negotiated a partnership agreement to improve the living conditions in HANO public housing.