Department of Housing and Urban Development

The Department of Housing and Urban Development (HUD) reported taking personnel actions to implement sequestration that included freezing hiring, furloughing most employees for 5 days, and reducing overtime. Sequestration reduced the funding for housing, community development, and rental assistance programs that are administered by state and municipal agencies, including public housing agencies (PHA). The funding reduction resulted in fewer services and benefits provided. For example, HUD estimates that PHAs provided rental assistance benefits to about 42,000 fewer very low-income households in 2013. HUD’s loan guarantee program administered by the Federal Housing Administration and the Government National Mortgage Association (Ginnie Mae) mortgage-backed securities guarantee program were mostly unaffected by sequestration because their credit financing program accounts were not sequestered.

In May 2014, we reported more in-depth information on planning, implementation and effects of sequestration at Office of Public and Indian Housing, a component within HUD. See GAO, 2013 Sequestration: Selected Federal Agencies Reduced Some Services and Investments, While Taking Short-Term Actions to Mitigate Effects, GAO-14-452 (Washington, D.C.: May 28, 2014).