Pursuant to a congressional request, GAO reviewed the Department of Housing and Urban Development's (HUD) Section 8 Moderate Rehabilitation Program for Single Room Occupancy (SRO) Dwellings for Homeless Individuals, focusing on: (1) whether the program is meeting its goals; (2) HUD oversight of projects in development; (3) financial review procedures for SRO projects; and (4) the use of public housing agencies' (PHA) waiting lists to fill SRO vacancies.
Recommendations for Executive Action
|Department of Housing and Urban Development||1. The Secretary of Housing and Urban Development should direct the Office of Special Needs Assistance Programs to reexamine the three unopened SRO projects to be funded with fiscal year 1989 appropriations and for which HUD does not have contracts executed with PHA. This review should determine whether shifting or cancelling the SRO project subsidies would be in the best interest of the homeless and the government.|
|Department of Housing and Urban Development||2. The Secretary of Housing and Urban Development should direct the Office of Special Needs Assistance Programs, before committing subsidy funds, to expand the financial reviews of SRO projects to determine if projects are financially feasible and have adequate financial resources to cover all projected rehabilitation and operating costs. Such a review should provide greater assurance that approved projects open in a timely manner.|
|Department of Housing and Urban Development||3. The Secretary of Housing and Urban Development should revise the current requirement for PHA-developed waiting lists for SRO projects so that local SRO operators have the option of filling vacancies from their own waiting lists. In conjunction with this action, the Secretary should instruct PHA to ensure that projects using their own lists fill vacancies fairly, giving priority to single homeless persons, and should incorporate this assessment into their routine monitoring visits to SRO projects.|