HUD Reforms: Limited Progress Made Since the HUD Scandals

GAO discussed the Department of Housing and Urban Development's (HUD) progress in correcting the widespread fraud, waste, abuse, and mismanagement that was uncovered in 1989. GAO noted that: (1) it was too early to determine whether reforms would be effective in correcting targeted problems; (2) such HUD problems as inadequate information and financial management systems, weak internal controls, inappropriate organizational structure, and insufficient staffing remained largely unresolved and continued to threaten HUD operations and programs; (3) although HUD implemented many program-specific corrective actions, corrective actions for the department-wide issues remained unresolved; (4) of 14 programs, HUD fully implemented reforms for 4 programs, was in the process of implementing reforms for 8 programs, and just began implementation of reforms for 2 programs; (5) due to HUD history of making but not fulfilling promises to correct its long-standing problems, Congress and the HUD Inspector General must maintain an active role in monitoring and reviewing HUD efforts to resolve these problems; and (6) HUD has nearly completed its implementation of all three ethics provisions.