Exactly what GAO Found
Convergence for the property advice programs-particularly those of this new Agencies out of Agriculture’s (USDA) Outlying Housing Services (RHS) as well as the Institution of Construction and you will Urban Innovation (HUD)-focus on opportunities to have enhanced venture and you may integration. GAO’s statement discover convergence on the issues offered and you can communities (earnings teams) and geographic portion served by RHS and you will HUD single-family relations mortgage ensure apps. GAO plus found selected multifamily construction software offered similar motives. This new declaration produced three advice so you can RHS. RHS generally arranged personal installment loans Maine towards the pointers and you may used you to definitely by formalizing collaborative jobs together with other federal companies into the unmarried-nearest and dearest property programs. However, RHS or any other government housing companies haven’t but really drawn most other demanded methods to build for the interagency work-such, by the contrasting specific options getting consolidating equivalent casing software, and people who would require legal alter.
RHS basically agreed having and it has managed some of GAO’s past recommendations for new rental guidelines and ranch labor houses software, but anybody else wanted next notice. Particularly, RHS implemented around three of one’s seven pointers GAO built in so you’re able to boost the agency’s efforts to identify and relieve improper rental advice costs. More procedures are necessary to implement the rest advice, and therefore address shortcomings in the way RHS estimates and you can profile to your incorrect payments. RHS and additionally handled around three of your own 7 advice GAO manufactured in . Next strategies have to implement additional four, and this address defects in the RHS controls having ensuring occupant qualification, certainly one of other issues.
Ongoing GAO really works shows that areas of RHS’s exposure management getting this new solitary-family members home loan be certain that system generally fall into line that have government conditions, and others are not fully consistent with standards and top means. Such, RHS has actually formula and functions for a lot of chance- administration features treated for the Work environment away from Management and you can Budget advice (instance choosing debtor creditworthiness and you will supervising lenders). Yet not, GAO’s constant functions suggests that, as opposed to federal internal control requirements, RHS doesn’t have authored policies and functions getting a committee responsible for contrasting borrowing high quality factors and you may addressing them as a consequence of coverage changes. Together with, specific standards RHS uses to greatly help gauge the performance of the guaranteed collection keeps limitations that fade the well worth for determining chance and tend to be maybe not totally consistent with top means having winning overall performance strategies. These flaws can get limit the functionality off RHS’s exposure-administration perform.
Why GAO Did This research
RHS, an agency within USDA, administers an abundance of direct mortgage, loan be sure, and you will offer software you to definitely service affordable housing and you may community development getting rural residents. Considering USDA financial and you can budget studies, RHS handles a portfolio of nearly $120 billion from inside the homes financing and loan guarantees and you may administers far more than simply $step one billion in the local rental recommendations repayments every year. GAO awarded around three profile given that s (pick GAO-11-329, GAO-12-554, and you may GAO-12-624) and it has lingering are employed in this place.
It testimony is founded on those around three profile and continuing GAO work. It covers (1) early in the day GAO results on the extent to which the fresh new property programs of RHS and you may HUD overlap and you will associated ramifications to own program cooperation and you may consolidation; (2) brand new position out of GAO advice on the latest local rental construction direction program and farm work casing mortgage and you may offer program; and you can (3) preliminary observations from the ongoing summary of exposure-management means toward single-family members mortgage make sure system. To update the fresh standing off guidance, GAO reviewed RHS procedures, tips, and you can records. For the constant really works, GAO reviewed federal standards and you may leading techniques having risk government and you may opposed them with RHS policies, methods, and you can means. GAO and interviewed RHS authorities.
GAO can make no this new advice in this testimony, but can believe while making most pointers after its lingering work is complete.