Housing and Urban Development: Comments on HUD's Fiscal Year 1999 Budget Request
T-RCED-98-137
Published: Mar 25, 1998. Publicly Released: Mar 25, 1998.
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Highlights
Pursuant to a congressional request, GAO discussed selected aspects of the Department of Housing and Urban Development's (HUD) fiscal year (FY) 1999 budget request, focusing on: (1) actions HUD has taken or plans to take to improve its budget estimates; (2) the reasonableness of HUD's request for Section 8 tenant-based and moderate rehabilitation housing assistance; (3) HUD's justification for its Section 8 project-based amendment request; (4) HUD's request for funding to assist the homeless; (5) HUD's request for $100 million to fund its new Regional Connections Initiative (RCI); (6) HUD's capacity to manage its HOPE VI program; and (7) the budgetary implications for public and assisted housing of welfare reform.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may wish to consider reducing HUD's request for Section 8 tenant-based and moderate rehabilitation contract renewals and amendments to account for: (1) $182 million by which HUD overstated its moderate rehabilitation renewal needs; (2) $439 million of excess budget authority in the Section 8 moderate rehabilitation program that could offset new budget authority to renew expiring housing assistance contracts; and (3) $70 million HUD requested to fund amendments to Section 8 moderate rehabilitation contracts that may offset this excess budget authority. | The recommendation suggested several areas in which Congress could consider reducing HUD's budget request. In one area, HUD's moderate rehabilitation program, the Congress rescinded the budget authority that GAO reported was excess to the programs planned and expected needs. In the other areas, however, Congress took no action. | |
| Congress may wish to consider reducing HUD's request for funding to amend Section 8 project-based contracts because: (1) $500 million is in excess of the funds that HUD identified as actually needed for FY 1999; and (2) current analyses indicate that recapture amounts are likely to be substantially higher than those identified in HUD's budget request. | The Congress provided no funding in response to HUD's request for $500 million to fund the Section 8 amendment account. | |
| Before appropriating $192 million for vouchers for the homeless and $100 million for HUD's Regional Connections Initiative, Congress may wish to seek assurances from HUD that these programs will be ready to effectively commit funds. | The Congress provided no funding to meet HUD's request for $100 million for the Regional Connections Initiative or $192 million for housing vouchers for the homeless in fiscal year 1999. |
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Budget authorityBudget cutsCommunity development programsFederal aid for housingFinancial managementFuture budget projectionsHousing programsInternal controlsLow income housingUnexpended budget balances