GAO’s reports and testimonies give Congress, federal agencies, and the public timely, fact-based, non-partisan information that can improve government operations and save taxpayers billions of dollars.
The COVID-19 pandemic continues to affect the housing and financial stability of millions of renters and property owners. To help, Congress appropriated $25 billion in emergency rental assistance, and the Centers for Disease Control and Prevention (CDC) ordered a moratorium on residential evictions.
In response to the 2008 housing crisis, the Treasury Department used Troubled Asset Relief Program funding to establish 3 housing programs to help struggling homeowners avoid foreclosure and preserve homeownership. Since 2009, Treasury has obligated $32.56 billion for such housing programs.
The Federal Housing Finance Agency's goal is to keep the housing finance system healthy by supervising and regulating Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.
The agency spent $296.6 million in FY 2020 to do its work.
Fannie Mae and Freddie Mac issue mortgage-backed securities, which let lenders use investor cash for mortgage loans. When people default on the mortgages backing these securities—as many did in the 2007-2009 financial crisis—these issuers can take a hit.
Treasury's Hardest Hit Fund provided nearly $10 billion to states that experienced high unemployment and large drops in home prices during the housing crisis. States use the funds to help homeowners avoid foreclosure or to demolish blighted properties.
Developers can apply for federal Low-Income Housing Tax Credits to help them build affordable housing projects. The amount of credit depends largely on project costs.
Project costs we looked at varied widely (shown below), and federal oversight of costs is limited.
What GAO Found In its May 2016 report on the Low-Income Housing Tax Credit (LIHTC) program of the Internal Revenue Service (IRS), GAO found that state and local housing finance agencies (allocating agencies) implemented requirements for allocating credits, reviewing costs, and monitoring projects in...
What GAO Found During its audit of the Federal Housing Finance Agency's (FHFA) fiscal years 2016 and 2015 financial statements, GAO identified deficiencies in FHFA's evaluation of internal control over financial reporting.
What GAO Found The Low-Income Housing Tax Credit (LIHTC) established under the Tax Reform Act of 1986, is the largest source of federal assistance for developing affordable rental housing and has financed about 2.9 million rental units.
What GAO Found As of October 31, 2016, the Department of the Treasury (Treasury) had disbursed $22.6 billion (60 percent) of the $37.51 billion Troubled Asset Relief Program (TARP) funds obligated to the three housing programs (see fig.).