HUD Should Improve Its Management of Acquired, Formerly Subsidized Multifamily Projects

The Department of Housing and Urban Development (HUD) has changed the way it charges rent at, and sells, its inventory of formerly subsidized multifamily housing projects. It charges lower income tenants no more than 25 percent of their income for rent in HUD-owned projects. It then provides rental assistance after the projects are sold. The changes have resulted in substantial additional costs to the Government.