What GAO Discover
Overlap in the housing guidance apps-such as those of the brand new Company away from Agriculture’s (USDA) Outlying Homes Provider (RHS) and also the Agencies of Casing and Urban Invention (HUD)-highlight opportunities to own increased cooperation and you will consolidation. GAO’s declaration found overlap throughout the products given and you can communities (money teams) and you will geographic section made by RHS and you may HUD unmarried-relatives mortgage make certain apps. GAO as well as receive selected multifamily property apps served equivalent purposes. The newest declaration produced around three recommendations in order to RHS. RHS generally agreed on information and you can implemented one to from the formalizing collective services along with other federal agencies toward solitary-household members housing programs. But not, RHS or other federal housing agencies haven’t yet taken other required procedures to construct on the interagency work-instance, by contrasting particular options getting merging comparable houses programs, plus those that would require legal transform.
RHS generally assented which have and it has managed several of GAO’s prior recommendations for new leasing guidelines and farm work property applications, however, someone else want further interest. Especially, RHS used around three of one’s 7 pointers GAO manufactured in in order to increase the agency’s work to identify and reduce incorrect leasing direction costs. Additional procedures are needed to apply the remainder advice, and that target flaws in the way RHS estimates and you will records for the poor repayments. RHS also handled three of the seven advice GAO made in . Subsequent measures must use another four, and that address defects in the RHS regulation for making sure renter qualification urgent link, certainly other problems.
Ongoing GAO performs implies that regions of RHS’s chance administration to possess the fresh single-friends financial ensure system generally line-up that have federal requirements, while others are not totally in keeping with conditions and top practices. For example, RHS keeps procedures and procedures for a lot of risk- management features treated inside Work environment regarding Government and Funds pointers (such as deciding borrower creditworthiness and overseeing lenders). not, GAO’s constant works implies that, as opposed to government internal handle conditions, RHS does not have created policies and procedures having a committee responsible for evaluating credit top quality factors and you may dealing with them because of coverage alter. Also, certain criteria RHS uses to aid assess the abilities of the protected portfolio keeps limits that disappear the value to possess evaluating chance and are usually maybe not totally in line with leading practices having successful results strategies. These types of flaws get reduce effectiveness regarding RHS’s chance-administration work.
As to the reasons GAO Performed This study
RHS, a company inside USDA, administers loads of head mortgage, financing verify, and you will give software that service affordable houses and you will community creativity to have outlying citizens. Based on USDA economic and you will funds research, RHS protects a collection out of almost $120 million inside houses money and financing pledges and you will administers more than just $1 million within the rental recommendations repayments from year to year. GAO approved around three reports while the s (find GAO-11-329, GAO-12-554, and you can GAO-12-624) and has ongoing work with this particular area.
It testimony lies in those individuals about three profile and continuing GAO really works. It discusses (1) prior GAO findings towards the the total amount to which new casing apps out-of RHS and you will HUD overlap and you can relevant effects for program cooperation and you will consolidation; (2) the newest position of GAO tips about brand new rental houses assistance program and you may farm labor property financing and you will grant program; and (3) original observations regarding lingering review of risk-administration means into the unmarried-family members loan guarantee program. To help you up-date brand new position out-of advice, GAO analyzed RHS formula, strategies, and you will accounts. For its lingering work, GAO reviewed federal requirements and you may best practices having risk government and you can opposed all of them with RHS procedures, steps, and methods. GAO together with questioned RHS authorities.
GAO tends to make zero new advice in this testimony, but can envision and come up with additional information immediately after its constant job is over.
