What GAO Found
Overlap during the homes guidance applications-instance the ones from this new Agencies away from Agriculture’s (USDA) Rural Houses Provider (RHS) in addition to Agencies out-of Casing and you can Urban Development (HUD)-focus on ventures to have improved collaboration and you will combination. GAO’s statement discovered overlap throughout the points considering and populations (money organizations) and you will geographic elements served by RHS and HUD solitary-family members home loan make certain programs. GAO in addition to receive picked multifamily property software offered equivalent aim. The latest declaration produced three recommendations in order to RHS. RHS fundamentally assented into information and you can used one from the formalizing collaborative efforts along with other government firms towards solitary-family relations housing applications. not, RHS and other federal houses providers haven’t but really removed most other necessary methods to construct towards the interagency perform-particularly, by the researching certain opportunities to possess combining equivalent construction software, in addition to those that would require statutory changes.
RHS basically consented with and contains managed a number of GAO’s earlier in the day suggestions for this new rental advice and you may ranch labor property software, but someone else need next desire. Especially, RHS then followed three of the eight pointers GAO built in in order to improve the agency’s operate to recognize and reduce poor rental guidance payments. More steps are necessary to implement the rest pointers, and therefore address flaws in the manner RHS rates and accounts toward poor repayments. RHS also addressed around three of the 7 recommendations GAO made in . Further steps have to pertain others five, and this address flaws within the RHS regulation having making certain renter qualification, among other problems.
Lingering GAO functions reveals that regions of RHS’s chance administration to own the fresh new unmarried-household members mortgage be sure program generally fall into line that have federal standards, while some are not completely in keeping with criteria and you will best techniques. Instance, RHS have rules and functions for a lot of chance- administration characteristics handled within the Workplace off Management and you can Budget advice (particularly determining debtor creditworthiness and you may managing loan providers). But not, GAO’s ongoing functions payday loans Oklahoma shows that, in contrast to federal inner manage criteria, RHS does not have authored rules and functions for a committee guilty of researching credit quality issues and you can dealing with them because of rules alter. And, specific standards RHS uses to simply help gauge the abilities of its guaranteed profile keeps restrictions one to diminish its worth getting determining exposure and are generally maybe not totally in keeping with best practices getting profitable overall performance tips. These types of shortcomings can get limit the functionality from RHS’s risk-government perform.
Why GAO Did This study
RHS, an agency inside USDA, administers numerous lead financing, loan be certain that, and grant applications you to assistance sensible casing and you will area creativity to have outlying citizens. According to USDA economic and finances analysis, RHS handles a collection away from nearly $120 million during the property money and you can loan pledges and you can administers a lot more than $1 mil during the rental guidance money yearly. GAO provided three profile since s (find GAO-11-329, GAO-12-554, and you will GAO-12-624) and also constant work with this region.
This testimony will be based upon the individuals three records and ongoing GAO really works. It covers (1) earlier in the day GAO findings on the the quantity to which the latest houses apps out-of RHS and you will HUD convergence and you will associated effects to have system venture and you will integration; (2) the new status of GAO suggestions for the fresh leasing housing assistance program and you can farm work houses loan and you can give program; and you will (3) original findings about ongoing report on exposure-management methods with the single-household members mortgage be sure system. In order to upgrade the new updates away from guidance, GAO assessed RHS procedures, procedures, and you can profile. For the ongoing really works, GAO analyzed federal requirements and you will best methods to possess exposure management and you may compared these with RHS regulations, procedures, and practices. GAO plus interviewed RHS authorities.
GAO makes zero the fresh guidance within this testimony, but may believe and then make extra advice shortly after their ongoing tasks are complete.