Property Disposition: HUD's Illinois State Office Incurred Unnecessary Management Expenses
RCED-96-52
Published: Apr 22, 1996. Publicly Released: Apr 22, 1996.
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Highlights
GAO provided information on the unnecessary management expenses being incurred by the Department of Housing and Urban Development's (HUD) Illinois State Office in its property disposition program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Housing and Urban Development | The Secretary of Housing and Urban Development (HUD) should direct the Assistant Secretary for Housing to require that the Illinois State Office ensure that real estate asset managers discontinue water and sewer services when HUD takes possession of properties. |
Closed – Implemented
In letters addressed to the Chairmen of the Senate Committee on Governmental Affairs and House Committee on Government Reform and Oversight (both dated July 29, 1996), the Secretary, HUD, stated that the department had advised the Illinois State Office to take appropriate action to eliminate all unnecessary water and sewer expenses. Also, in a May 1996 memorandum, the Deputy Assistant Secretary for Single-Family Housing informed all field offices of the necessity to monitor property managers to ensure that utility companies are notified to discontinue services when HUD takes ownership of a property.
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| Department of Housing and Urban Development | The Secretary of Housing and Urban Development should direct the Assistant Secretary for Housing to advise other HUD field offices of this situation to reduce the likelihood that the problem can occur elsewhere. |
Closed – Implemented
In a May 1996 memorandum, the Deputy Assistant Secretary for Single-Family Housing informed all field offices of the necessity to monitor property managers to ensure that utility companies are notified to discontinue services when HUD takes ownership of a property. The memorandum further advised field offices to review tax statements on Secretary-held mortgages and HUD-owned properties upon receipt and to arrange prompt payment to avoid the sale of properties for unpaid taxes and to redeem any properties within the redemption period.
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Topics
Administrative costsDelinquent taxesFederal aid for housingFines (penalties)ForeclosuresProperty disposalProperty taxesPublic utilitiesReal estate salesSewage disposal