Social services: Housing Assistance (2012-28)
Examining the benefits and costs of housing programs and tax expenditures that address the same or similar populations or areas, and potentially consolidating them, could help mitigate overlap and fragmentation and decrease costs.
Year Identified: 2012
Area Number: 28
Area Type: Fragmentation, Overlap & Duplication
4 Total Action(s)
To optimize the federal role in rural housing, the Congress may wish to consider requiring the Department of Agriculture (USDA) and the Department of Housing and Urban Development (HUD) to examine the benefits and costs of merging those programs that serve similar markets and provide similar products. As a first step, the Congress could consider requiring USDA and HUD to explore merging their single-family insured lending programs and multifamily portfolio management programs, taking advantage of the best practices of each and ensuring that targeted populations are not adversely affected.
To optimize the federal role in rural housing, the Congress may wish to consider requiring the Department of Agriculture (USDA) and the Department of Housing and Urban Development (HUD) to examine the benefits and costs of merging those programs that serve similar markets and provide similar products. As a first step, the Congress could consider requiring USDA and HUD to explore merging their single-family insured lending programs and multifamily portfolio management programs, taking advantage of the best practices of each and ensuring that targeted populations are not adversely affected.
As of March 2022, no legislation had been enacted or was enacted. A draft bill introduced in 2018 would have established HUD’s Federal Housing Administration (FHA) as an agency separate from HUD and transferred to it USDA’s Rural Housing Service (RHS) programs. H.R. 6746, 115th Cong. (2018). After the bill was referred to committee, no further action was taken. However, consistent with GAO's September 2000 suggestion, the Office of Management and Budget (OMB) issued a reform plan and reorganization recommendations in June 2018 that included a proposal to consolidate oversight and policy direction of similar federal housing programs under one agency. Specifically, the proposal would move USDA's rural housing loan guarantee and rental assistance programs to HUD. The proposal stated that the reorganization could be modeled after a provision in a prior draft bill, the FHA-Rural Regulatory Improvement Act of 2011, which would have created a rural housing office within HUD and transferred the USDA housing programs into that office. The proposal further stated that the consolidation would have helped achieve long-term improvements in operational efficiency and service delivery by taking advantage of best practices from each agency, reducing or eliminating conflicting requirements, and potentially reducing overhead costs. As part of its 1 year update, dated July 2019, OMB reported that the agencies had taken initial steps under the Administration's reform proposal. Specifically, the report stated that the President's FY 2020 Budget included funding for information technology enhancements that would allow lenders working with USDA to approve single-family housing guaranteed loans. However, neither the funding proposal nor a similar one in the President's FY 2021 Budget was enacted. The President's FY 2022 Budget did not include the provision. Supporting more homogeneous program delivery of single-family housing loan guarantees will help facilitate a seamless move of USDA programs to HUD.
To help mitigate overlap and fragmentation and decrease costs, the Director of the Office of Management and Budget (OMB), in consultation with the Secretary of the Treasury should develop and implement a framework for conducting performance reviews of tax expenditures. This includes (1) outlining leadership responsibilities and coordination among agencies with related responsibilities; (2) setting a review schedule; (3) identifying review methods and ways to address the lack of credible tax expenditure information; and (4) identifying resources needed for tax expenditure reviews.
To help mitigate overlap and fragmentation and decrease costs, the Director of the Office of Management and Budget (OMB), in consultation with the Secretary of the Treasury should develop and implement a framework for conducting performance reviews of tax expenditures. This includes (1) outlining leadership responsibilities and coordination among agencies with related responsibilities; (2) setting a review schedule; (3) identifying review methods and ways to address the lack of credible tax expenditure information; and (4) identifying resources needed for tax expenditure reviews.
GAO is not assessing this action as part of this area as it is already reflected inaction 2 in Area 17, Tax Expenditures, from GAO's March 2011 report. GAO will continue to monitor OMB's efforts to develop and implement a framework for conducting performance reviews of tax expenditures and report on its progress in addressing our suggested action in the Tax Expenditures area.
To help mitigate overlap and fragmentation and decrease costs, the Director of the Office of Management and Budget (OMB), in consultation with the Secretary of the Treasury should require that tax expenditures be included in executive branch budget and performance review processes.
To help mitigate overlap and fragmentation and decrease costs, the Director of the Office of Management and Budget (OMB), in consultation with the Secretary of the Treasury should require that tax expenditures be included in executive branch budget and performance review processes.
GAO is not assessing this action as part of this area as it is already reflected inaction 4 in Area 17, Tax Expenditures, from GAO's March 2011 report. GAO will continue to monitor OMB's efforts to develop and implement a framework for conducting performance reviews of tax expenditures and report on its progress in addressing our suggested action in the Tax Expenditures area.
The Secretary of the Department of Housing and Urban Development (HUD), in consultation with the Rental Policy Working Group, should work with states and localities to develop an approach for compiling and reporting on the collective performance of federal, state, and local rental assistance programs. Such an effort may begin with one or more pilots to test approaches before they are considered for wider application. This action was identified in GAO's September 2015 report, Affordable Rental Housing: Assistance Is Provided by Federal, State, and Local Programs, but There Is Incomplete Information on Collective Performance (GAO-15-645), and was added to the Action Tracker in April 2017.
The Secretary of the Department of Housing and Urban Development (HUD), in consultation with the Rental Policy Working Group, should work with states and localities to develop an approach for compiling and reporting on the collective performance of federal, state, and local rental assistance programs. Such an effort may begin with one or more pilots to test approaches before they are considered for wider application. This action was identified in GAO's September 2015 report, Affordable Rental Housing: Assistance Is Provided by Federal, State, and Local Programs, but There Is Incomplete Information on Collective Performance (GAO-15-645), and was added to the Action Tracker in April 2017.
Executive Order 13878, dated June 25, 2019, established the White House Council on Eliminating Regulatory Barriers to Affordable Housing. The council was charged with, among other things, working "across agencies and offices, with consideration of existing initiatives, to solicit feedback from State, local, and tribal governments…to identify ways to improve the data available to the public and private researchers" who evaluate the effects of regulatory barriers on affordable housing development. The order mentions that low-income families are negatively affected by regulatory barriers to housing development. According to the Executive Order, the Secretary of HUD is the council's chair, and the council includes the Secretaries of Treasury, Interior, Agriculture, Labor, Transportation, and Energy as well as the Environmental Protection Agency's Administrator and White House officials. In December 2019, a HUD official said in addition to meetings among the principals, the council has held a number of public forums, including roundtable discussions with state and local officials to discuss regulatory barriers, construction, and land use. The official also said the council is planning a roundtable on development finance and held a listening session on Native American housing issues. In addition to the work of the council, according to its fiscal year 2021 Annual Performance Plan and fiscal year 2019 Annual Performance report, HUD has and is developing various data dashboards for different programs, including rental assistance and permitting programs. Also, in stops on a nationwide listening tour in 2020, the HUD Secretary is meeting with local public officials to discuss reducing regulatory barriers that increase the cost of housing. GAO agrees that the establishment of the council and the actions taken by HUD are positive steps for reaching out to states and localities, thus addressing the recommendation, and allowing the Congress, decision-makers, and stakeholders to evaluate collective performance data and provide mechanisms for setting priorities, allocating resources, and restructuring efforts, as needed, to achieve long-term goals.
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