Housing and Urban Development: Management and Budget Issues in HUD's Fiscal Year 1995 Appropriation

GAO discussed management and budget issues related to the Department of Housing and Urban Development's (HUD) proposed reorganization. GAO noted that: (1) HUD will need to substantially change its organizational culture, focus on its reinvention initiatives, and dedicate the resources necessary to complete these initiatives if it is to successfully reinvent itself; (2) the Government National Mortgage Corporation may not be able to adequately focus on risk areas and respond to future management challenges because of staffing limitations; (3) HUD information systems are not adequately secure and have not been planned and managed to meet its missions and strategic objectives; (4) HUD will need sustained management commitment to implement the corrective actions identified; (5) HUD need for new budget authority is questionable, since it routinely has significant annual unobligated fund balances, has a backlog of at least $1.4 billion in funds that are obligated for public housing modernization efforts, and has not obligated $7.9 billion in 1994 appropriations; (6) HUD cannot accurately estimate the future costs of incentives it provides to property owners to preserve their properties as low-income housing because it cannot determine when property owners will file for preservation incentives; and (7) HUD needs to assist public housing authorities and private landlords by helping them settle lead-based paint poisoning claims.