Neighborhood Stabilization Program: HUD and Grantees Are Taking Actions to Ensure Program Compliance but Data on Program Outputs Could be Improved
Highlights
Congress created the Neighborhood Stabilization Program (NSP) to help reduce the number of foreclosed and abandoned properties and restore depressed local housing markets. The Housing and Economic Recovery Act of 2008 (HERA) authorized the program's first round (NSP 1), providing $3.92 billion in grant funds to states and local governments. The Department of Housing and Urban Development (HUD) administers the program. HERA mandated that GAO report on whether grantees were using NSP 1 funds in accordance with the act's criteria. For this mandate, GAO examined (1) grantees' progress and challenges in meeting NSP 1 obligation and income-targeting requirements, (2) HUD's actions to mitigate program risks and ensure grantees' compliance with key NSP 1 requirements, and (3) HUD's efforts to collect program data and assess program performance. To address these objectives, GAO analyzed HUD data and the information system used for NSP 1; interviewed HUD officials and representatives of NSP 1 grantees; analyzed HUD's internal control processes; and conducted limited tests of 8 grantees' compliance with key NSP 1 requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Housing and Urban Development | To ensure the consistency of data collection in DRGR and enhance the reporting of program outputs for all rounds of NSP, the Secretary of HUD should update the Quarterly Performance Reports (QPR) review checklist to include reviews of whether grantees are (1) grouping activities in accordance with HUD instructions and (2) selecting the appropriate output measures for different activities. |
HUD addressed this recommendation by issuing detailed guidance in October 2012 on how to report the Neighborhood Stabilization Program (NSP) grantee accomplishments in the Disaster Recovery Grant Reporting (DRGR) system. Among other topics, the guidance explains how grantees should group activities and select related output measures. A HUD official stated that HUD field staff will be using this guidance in conjunction with the QPR checklist in performing their quarterly reviews of grantee information in DRGR.
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| Department of Housing and Urban Development | To ensure the consistency of data collection in DRGR and enhance the reporting of program outputs for all rounds of NSP, the Secretary of HUD should issue written guidance to NSP grantees on the output measures they should select for different activities. |
HUD addressed this recommendation by issuing detailed guidance in October 2012 on how to report the Neighborhood Stabilization Program (NSP) grantee accomplishments in the Disaster Recovery Grant Reporting (DRGR) system. Among other topics, the guidance explains how grantees should group activities and select related output measures.
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