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Single-Family Housing: Stronger Measures Needed to Encourage Better Performance by Management and Marketing Contractors

RCED-00-117 Published: May 12, 2000. Publicly Released: May 16, 2000.
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Pursuant to a congressional request, GAO provided information on the Department of Housing and Urban Development's (HUD) management and marketing contracts of single-family housing, focusing on HUD's: (1) experience with the contractors who manage and market these properties; and (2) progress in reducing its single-family property inventory.


Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Housing and Urban Development To improve the effectiveness of HUD's property disposition program, the Secretary of Housing and Urban Development should direct the Assistant Secretary for Housing-Federal Housing Commissioner to develop more effective methods, such as specific incentives or penalties, to encourage contractors to reduce the number of properties that are in the inventory longer than 6 months.
Closed – Implemented
HUD substantially changed its methodology for evaluating management and marketing contractor performance. Its new methodology does not provide for penalties directly tied to performance in reducing the aged property inventory. However, its system for scoring contractor performance reduces the contractor's score where more than five percent of the properties have been in inventory over 12 months. This approach gives greater visibility to the contractor's efforts to sell aged properties and thus provides an incentive for the contractor to address sales of its aged property inventory.

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Contract administrationContract performanceFederal property managementForeclosuresHousing programsInternetMarketingMortgage programsProperty disposalHomeownership