Public Housing Subsidies: Revisions to HUD's Performance Funding System Could Improve Adequacy of Funding
RCED-98-174
Published: Jun 19, 1998. Publicly Released: Jun 19, 1998.
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Highlights
Pursuant to a legislative requirement, GAO reviewed the Department of Housing and Urban Development's (HUD) Performance Funding System (PFS) for allocating appropriated funds to housing agencies as operating subsidies, focusing on: (1) how PFS allocates the congressionally appropriated subsidy among public housing agencies; (2) whether PFS meets the subsidy needs of individual housing agencies; (3) how HUD's budget estimates of housing agencies' annual need for operating subsidies are developed and whether the estimates are appropriate; and (4) some of the possible options that HUD might have for changing PFS to make it a more effective tool for subsidizing housing agencies.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Housing and Urban Development | As HUD considers its various options for redesigning the PFS, the Secretary of Housing and Urban Development should also consider establishing a process that: (1) allows housing agencies to appeal their expense levels when they believe that significant changes have occurred over time in their operating circumstances that cause their subsidy to be inappropriate; and (2) HUD can use to review housing agencies' expense levels that it believes may be excessive. |
Closed – Not Implemented
This recommendation is now 7 years old and still not implemented. Events relating to the funding of public housing have moved beyond this recommendation. Therefore, the recommendation is being closed as not implemented.
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Topics
Cost analysisFunds managementHousing programsLow income housingPublic housingSubsidiesGovernment subsidiesHousingExpenditure of fundsInflation