Just what GAO Receive
Overlap within the housing assistance apps-particularly that from new Department away from Agriculture’s (USDA) Rural Houses Solution (RHS) as well as the Agency of Casing and Idaho payday loans you may Urban Advancement (HUD)-high light possibilities to own improved venture and you will consolidation. GAO’s report discover convergence about circumstances given and populations (income teams) and you can geographical section prepared by RHS and you can HUD single-family unit members home loan be sure programs. GAO together with receive chose multifamily houses apps supported comparable motives. The brand new declaration generated around three recommendations to RHS. RHS basically consented to the suggestions and you may used you to of the formalizing collaborative services along with other government companies with the solitary-family construction programs. Yet not, RHS and other government property firms have not yet , removed almost every other required actions to construct on interagency services-eg, by the comparing particular opportunities for merging equivalent houses programs, together with those who would require statutory changes.
RHS essentially consented having and has now treated a number of GAO’s earlier in the day recommendations for new rental guidance and you will farm work casing software, but others wanted further attract. Particularly, RHS used about three of your own eight recommendations GAO made in to improve agency’s perform to determine and reduce poor leasing recommendations payments. Most strategies are needed to incorporate the rest guidance, which target flaws in the way RHS estimates and account toward improper payments. RHS and treated about three of your eight pointers GAO produced in . Next measures are required to incorporate others five, and this target flaws when you look at the RHS regulation having ensuring tenant qualifications, one of other issues.
Lingering GAO works shows that regions of RHS’s chance administration to possess the new single-family relations financial guarantee system generally align that have federal standards, while others aren’t completely in line with conditions and you can top methods. Eg, RHS provides procedures and procedures for a number of risk- government properties managed from inside the Work environment regarding Government and you may Budget pointers (particularly deciding debtor creditworthiness and you can supervising lenders). Although not, GAO’s constant works demonstrates, in comparison to government interior handle requirements, RHS doesn’t always have created principles and functions for a committee responsible for comparing credit top quality points and dealing with them because of policy alter. Including, particular criteria RHS uses to aid measure the efficiency of the protected portfolio possess constraints you to definitely diminish its worth to possess determining chance and are also perhaps not completely in keeping with top methods for profitable overall performance actions. This type of flaws get limit the features out-of RHS’s chance-government services.
Why GAO Did This research
RHS, an agency within this USDA, administers a number of direct mortgage, mortgage make certain, and you can offer apps you to definitely service sensible casing and you can area advancement for rural owners. Predicated on USDA monetary and you can funds data, RHS takes care of a collection away from almost $120 million in houses finance and you will loan promises and administers even more than $1 mil inside the rental recommendations money on a yearly basis. GAO approved three profile just like the s (discover GAO-11-329, GAO-12-554, and you will GAO-12-624) and it has ongoing work in this particular area.
That it testimony is founded on people about three reports and ongoing GAO functions. They discusses (1) early in the day GAO conclusions on the the total amount that this new property programs away from RHS and HUD convergence and you will associated implications to have program collaboration and you may combination; (2) brand new position away from GAO some tips on the newest leasing housing advice program and you will ranch work casing mortgage and you will give program; and you may (3) initial findings in the constant report about exposure-government practices on the solitary-members of the family financing guarantee program. To help you revision the status away from suggestions, GAO assessed RHS rules, methods, and you can account. For its lingering works, GAO assessed government conditions and you will top means getting exposure government and opposed all of them with RHS policies, strategies, and you will techniques. GAO along with questioned RHS authorities.
GAO renders no the brand new information within this testimony, but can consider while making most advice after its ongoing efforts are complete.