What GAO Receive
Convergence in construction guidelines programs-for example the ones from the newest Agency of Agriculture’s (USDA) Rural Casing Service (RHS) therefore the Agency from Casing and you can Urban Advancement (HUD)-stress possibilities for enhanced collaboration and you will integration. GAO’s declaration located convergence in the situations offered and communities (earnings communities) and you will geographical areas prepared by RHS and you will HUD unmarried-family unit members financial ensure programs. GAO in addition to receive chosen multifamily construction applications supported similar aim. The fresh declaration made around three guidance in order to RHS. RHS generally arranged into the guidance and you will adopted you to by formalizing collective perform along with other federal organizations towards solitary-nearest and dearest houses software. But not, RHS and other federal property businesses have not yet , removed most other demanded strategies to build into interagency efforts-such as for instance, by the evaluating specific opportunities to possess combining comparable houses programs, and additionally people who would want statutory change.
RHS generally arranged with and also treated a few of GAO’s previous recommendations for this new rental recommendations and you will ranch labor property apps, however, anybody else wanted then desire. Specifically, RHS then followed three of your 7 advice GAO produced in to help you increase the agency’s work to identify and reduce poor rental assistance payments. instant same day payday loans online New Mexico Additional tips are necessary to pertain the rest information, hence address flaws in the way RHS quotes and you can reports to your inappropriate repayments. RHS including managed three of the eight information GAO built in . Then measures must use the other five, hence target weaknesses from inside the RHS controls to have ensuring occupant eligibility, among other problems.
Constant GAO work implies that regions of RHS’s risk administration to have the brand new unmarried-relatives financial verify system broadly align with government standards, while some commonly completely in keeping with conditions and you can best techniques. Like, RHS enjoys principles and functions for a number of exposure- administration features addressed inside Office away from Management and Budget advice (like deciding debtor creditworthiness and you may overseeing loan providers). However, GAO’s ongoing functions implies that, contrary to government internal manage requirements, RHS doesn’t have authored policies and procedures to own a panel responsible for researching borrowing top quality points and you may approaching them as a consequence of policy transform. Also, specific benchmarks RHS uses to help gauge the show of their protected collection enjoys constraints you to diminish the value getting assessing chance as they are not completely consistent with top techniques having winning show actions. These types of shortcomings can get limit the effectiveness out-of RHS’s risk-government efforts.
As to why GAO Did This research
RHS, an agency inside USDA, administers a lot of direct financing, loan be sure, and you will grant apps you to service sensible homes and you may society invention to possess rural residents. Predicated on USDA economic and you can funds study, RHS manages a portfolio away from almost $120 billion inside the housing financing and loan pledges and you can administers far more than simply $1 billion for the rental advice costs annually. GAO provided around three reports as the s (see GAO-11-329, GAO-12-554, and you can GAO-12-624) and also lingering work with this particular area.
So it testimony will be based upon the individuals around three profile and ongoing GAO functions. They covers (1) earlier GAO results into the quantity that brand new property apps of RHS and you may HUD overlap and you will associated effects to have program cooperation and combination; (2) the brand new status from GAO advice on the leasing homes assistance program and you can farm labor construction mortgage and offer program; and (3) initial findings in the lingering overview of risk-management strategies on the solitary-nearest and dearest mortgage make certain system. So you can improve the fresh new reputation regarding guidance, GAO assessed RHS policies, procedures, and you may account. For the constant work, GAO examined government conditions and best means to possess risk management and opposed them with RHS procedures, procedures, and you will strategies. GAO together with interviewed RHS authorities.
GAO produces no the brand new advice in this testimony, but may imagine and make extra guidance once their lingering efforts are done.