What GAO Found
Convergence when you look at the housing direction software-such as for instance that from the Company away from Agriculture’s (USDA) Outlying Casing Service (RHS) and Department out of Casing and you may Metropolitan Invention (HUD)-focus on possibilities to own improved venture and you may consolidation. GAO’s statement receive overlap on items considering and communities (money communities) and you can geographical portion prepared by RHS and you can HUD single-relatives mortgage make certain software. GAO also discover selected multifamily housing applications offered equivalent aim. This new declaration generated around three advice to help you RHS. RHS essentially consented towards the information and you will then followed you to by formalizing collective operate along with other federal firms into the unmarried-family relations housing software. Although not, RHS and other federal casing enterprises haven’t yet drawn most other necessary steps to construct on interagency efforts-like, by evaluating certain possibilities having merging similar houses applications, and additionally people who would want statutory alter.
RHS fundamentally conformed with and contains treated some of GAO’s previous suggestions for brand new leasing recommendations and you can farm work houses applications, however, other people need after that focus. Specifically, RHS accompanied around three of one’s eight recommendations GAO produced in so you’re able to boost the agency’s efforts to determine and relieve improper leasing recommendations money. Additional methods are needed to apply the remaining suggestions, which target flaws in the way RHS prices and you can account toward poor money. RHS together with managed around three of your seven pointers GAO made in . Subsequent measures have to incorporate others four, hence target defects when you look at the RHS control having making certain renter qualification Indiana cash now, one of other problems.
Ongoing GAO works indicates that aspects of RHS’s risk administration to have the newest unmarried-relatives financial make certain system generally align which have government requirements, while others are not completely in line with standards and you may best strategies. Such as, RHS possess rules and functions for a number of risk- government qualities addressed when you look at the Office away from Administration and you may Finances recommendations (for example determining borrower creditworthiness and you can overseeing lenders). However, GAO’s ongoing works implies that, as opposed to government internal manage requirements, RHS doesn’t have created guidelines and functions to possess a committee guilty of researching credit top quality factors and you can dealing with all of them due to policy alter. Also, certain benchmarks RHS spends to aid assess the efficiency of the secured profile features constraints one disappear their value to own assessing risk as they are perhaps not totally in line with top practices to own profitable abilities actions. These flaws may limit the possibilities out of RHS’s chance-administration work.
Why GAO Performed This study
RHS, an agency within this USDA, administers enough direct loan, financing make sure, and offer software one support sensible construction and you can people innovation to own outlying residents. Considering USDA economic and budget study, RHS protects a collection off nearly $120 million for the houses fund and you will loan guarantees and administers far more than $step one million when you look at the leasing assistance repayments from year to year. GAO approved three profile because the s (find GAO-11-329, GAO-12-554, and you will GAO-12-624) and has now constant work with this region.
So it testimony is dependent on those individuals around three profile and ongoing GAO performs. It talks about (1) previous GAO conclusions to the the total amount that the fresh new construction software from RHS and HUD convergence and related implications to own program collaboration and you may combination; (2) the newest status out-of GAO some tips on the fresh new rental casing guidance program and you can farm work housing loan and you will give system; and (3) first observations on lingering article on chance-government techniques to the single-relatives financing make sure program. In order to change the newest status from suggestions, GAO reviewed RHS regulations, steps, and you will records. For the ongoing works, GAO examined government criteria and you may best practices having chance administration and you can compared all of them with RHS formula, actions, and you will strategies. GAO plus questioned RHS authorities.
GAO renders zero the newest pointers in this testimony, but could envision making most advice immediately after the ongoing job is over.