Exactly what GAO Discovered
Overlap in the property recommendations programs-eg the ones from the fresh Service of Agriculture’s (USDA) Rural Homes Solution (RHS) together with Agencies out of Housing and you will Urban Invention (HUD)-focus on possibilities to have improved cooperation and you can combination. GAO’s statement discovered overlap throughout the products given and you will communities (money communities) and you will geographical components made by RHS and HUD single-household members financial ensure applications. GAO along with discover picked multifamily construction programs offered comparable intentions. The report made around three information to RHS. RHS fundamentally concurred for the recommendations and implemented one because of the formalizing collective work together with other federal providers on solitary-family members property applications. But not, RHS or any other federal construction organizations haven’t but really pulled almost every other required methods to create towards the interagency jobs-including, because of the comparing specific solutions to have merging equivalent casing software, along with those who would need statutory transform.
RHS fundamentally agreed with and has now addressed several of GAO’s earlier in the day ideas for this new rental recommendations and you will farm work property programs, but anyone else wanted next focus. Especially, RHS accompanied about three of one’s 7 guidance GAO built in to help you help the agency’s perform to identify and relieve inappropriate leasing direction payments. A lot more actions are needed to use the remaining suggestions, hence address flaws in the way RHS estimates and you may records to your poor money. RHS also treated around three of one’s 7 suggestions GAO produced in . Next steps are required to apply additional four, which address flaws in the RHS regulation to own guaranteeing occupant qualifications, certainly other issues.
Constant GAO really works reveals that areas of RHS’s exposure administration for the brand new unmarried-household members mortgage ensure program broadly fall into line that have government standards, while others aren’t fully in line with standards and you will leading methods. Like, RHS keeps guidelines and functions for many risk- administration functions handled in Work environment out of Administration and Finances pointers (such choosing borrower creditworthiness and you can managing lenders). But not, GAO’s ongoing really works demonstrates, contrary to government internal control requirements, RHS doesn’t have created guidelines and procedures to possess a committee responsible for evaluating borrowing from the bank top quality facts and you may approaching them compliment of plan alter. In addition to, particular benchmarks RHS uses to assist gauge the results of their protected portfolio has restrictions one disappear its worthy of for evaluating exposure and tend to be maybe not completely in line with best strategies for successful show tips. Such shortcomings can get reduce capabilities from RHS’s exposure-administration services.
As to why GAO Performed This study
RHS, an agency within USDA, administers an abundance of head loan, loan be sure, and you will give programs one service affordable homes and you may society advancement to have rural people. Centered on USDA monetary and you may budget data, RHS takes care of a profile of nearly $120 billion during the homes fund and you may mortgage promises and you can administers far more than just $step 1 mil for the local rental advice repayments annually. GAO issued three reports just like the s (pick GAO-11-329, GAO-12-554, and you may GAO-12-624) features constant are employed in this place.
That it testimony will be based upon the individuals about three reports and continuing GAO works. It talks about (1) previous GAO results to your extent that new houses software out of RHS and you may HUD overlap and you can online personal loans AK related implications having system venture and integration; (2) the new updates of GAO advice on the newest rental housing assistance program and you will ranch labor houses financing and you will grant program; and you may (3) preliminary findings in the lingering breakdown of exposure-administration methods on the solitary-friends financing guarantee program. So you’re able to up-date brand new position regarding guidance, GAO analyzed RHS guidelines, strategies, and you will profile. Because of its ongoing performs, GAO reviewed federal standards and top practices getting risk management and opposed all of them with RHS rules, steps, and methods. GAO also questioned RHS authorities.
GAO renders no the new recommendations in this testimony, but could believe while making a lot more guidance immediately following its lingering tasks are complete.