What GAO Located
Convergence from inside the homes direction applications-such the ones from this new Service away from Agriculture’s (USDA) Outlying Houses Service (RHS) and the Institution out-of Casing and you may Urban Innovation (HUD)-highlight solutions for enhanced venture and combination. GAO’s declaration located convergence on products given and you can communities (income groups) and you may geographical elements served by RHS and you may HUD single-family relations mortgage be certain that programs. GAO and additionally receive picked multifamily houses programs offered comparable aim. New declaration produced about three information to RHS. RHS basically conformed toward information and you can used one from the formalizing collective jobs together with other federal agencies towards solitary-nearest and dearest homes software. Although not, RHS or other government construction agencies haven’t but really pulled most other needed methods to construct with the interagency efforts-such as, from the researching certain options to possess merging comparable construction applications, and additionally people who would want statutory changes.
RHS essentially decided having and it has addressed a number of GAO’s previous suggestions for the new rental advice and you will ranch labor casing programs, however, other people want next attention. Especially, RHS adopted around three of seven guidance GAO produced in to help you improve the agency’s operate to spot and reduce improper leasing recommendations costs. A lot more measures are needed to implement the remainder information, and therefore target flaws in how RHS rates and you can profile toward improper payments. RHS along with addressed three of your 7 guidance GAO manufactured in . After that steps must incorporate others five, and therefore target flaws in the RHS regulation having ensuring occupant qualification, certainly other issues.
Ongoing GAO performs shows that areas same day loans Slocomb of RHS’s chance administration having the fresh single-loved ones home loan make certain program generally fall into line that have federal criteria, although some aren’t completely in keeping with standards and you can leading practices. Such as, RHS provides procedures and procedures for many exposure- government characteristics addressed in Workplace away from Administration and Finances information (instance choosing borrower creditworthiness and you will managing lenders). But not, GAO’s ongoing really works indicates that, contrary to federal interior control criteria, RHS doesn’t always have created procedures and functions to own a committee responsible for contrasting credit top quality things and you can approaching them thanks to rules changes. In addition to, certain benchmarks RHS uses to greatly help assess the performance of the secured profile possess constraints you to definitely fade the worthy of to own assessing exposure and so are maybe not completely consistent with top practices to own effective overall performance actions. These shortcomings may reduce possibilities from RHS’s exposure-management operate.
As to why GAO Did This research
RHS, an agency within USDA, administers a great amount of direct mortgage, loan make certain, and you will grant applications you to support affordable housing and neighborhood innovation to have rural owners. Centered on USDA economic and you may finances studies, RHS handles a profile out of almost $120 billion inside the housing funds and you will mortgage promises and you will administers even more than simply $step one million within the local rental guidance money on a yearly basis. GAO issued around three records while the s (see GAO-11-329, GAO-12-554, and you can GAO-12-624) and also ongoing work in this particular area.
This testimony is dependent on men and women around three profile and ongoing GAO functions. They talks about (1) earlier in the day GAO results to your the total amount that the fresh houses programs out-of RHS and you will HUD convergence and you may associated effects to have program venture and you may integration; (2) the new status away from GAO great tips on the fresh leasing property advice system and farm work houses loan and grant system; and you may (3) preliminary findings about constant article on exposure-government strategies to the single-family relations financing make certain program. In order to posting the status off pointers, GAO assessed RHS rules, procedures, and you may records. For the ongoing functions, GAO assessed government standards and you may leading techniques getting exposure government and you can compared all of them with RHS formula, methods, and you may methods. GAO plus questioned RHS authorities.
GAO produces no the latest guidance contained in this testimony, but may believe and work out even more suggestions after their constant tasks are complete.