Skip to main content

Housing and Urban Development: Comments on HUD's FY 1997 Budget Request

T-RCED-96-205 Published: Jun 17, 1996. Publicly Released: Jun 17, 1996.
Jump To:
Skip to Highlights

Highlights

GAO discussed the Department of Housing and Urban Development's (HUD) fiscal year 1997 budget request, focusing on: (1) HUD multifamily reengineering cost estimates; (2) proposed bonus pools for high-performing grantees who exceed established performance measures; and (3) HUD progress in addressing management deficiencies. GAO noted that: (1) HUD has requested about $22 billion in discretionary budget authority and plans about $33 billion in discretionary outlays; (2) overly optimistic cost control assumptions about the major restructuring of the multifamily housing program could affect the HUD budget request for rental assistance for low-income families; (3) HUD has requested $845 million in bonus funding for high-performing grantees in some of its new block grants; (4) implementing HUD performance funds will be complicated and time-consuming; and (5) HUD has proposed various internal controls to address management deficiencies.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should consider not appropriating the $845 million for HUD proposed bonus pool funding until the Department develops adequate performance measures and supporting information systems to ensure that these funds are used effectively.
Closed – Implemented
The entire $845 million for funding of bonuses will not be appropriated.

Full Report

Office of Public Affairs

Topics

Block grantsCost controlFederal agency reorganizationFederal aid for housingFuture budget projectionsHousing programsInternal controlsPresidential budgetsManagement reengineeringPerformance measures