What GAO Found

Overlap when you look at the property recommendations programs-including those of brand new Institution out-of Agriculture’s (USDA) Rural Casing Services (RHS) while the Department away from Housing and you can Metropolitan Innovation (HUD)-emphasize ventures for enhanced venture and consolidation. GAO’s declaration discover overlap regarding the affairs given and you may populations (income groups) and you will geographic components served by RHS and you will HUD single-household members financial be certain that software. GAO in addition to located chosen multifamily houses software supported comparable intentions. The fresh report produced three information to RHS. RHS essentially concurred towards suggestions and you will used that from the formalizing collective operate along with other government enterprises on the solitary-family unit members houses software. Although not, RHS or other government casing agencies have not yet removed almost every other necessary methods to construct into interagency services-such as for instance, from the evaluating certain potential for combining comparable housing software, in addition to those that would need statutory change.

RHS basically arranged with and has handled several of GAO’s past recommendations for the rental guidelines and farm work property programs, however, someone else wanted after that focus. Especially, RHS then followed about three of one’s 7 suggestions GAO made in so you’re able to increase the agency’s work to spot and relieve poor leasing direction payments. Additional actions are necessary to use the remainder suggestions, and therefore target shortcomings in how RHS estimates and you may records for the poor money. RHS in addition to addressed about three of one’s 7 recommendations GAO built in . Next procedures have to pertain others five, and this target flaws within the RHS regulation getting ensuring renter qualification, certainly one of other issues.

Lingering GAO work shows that aspects of RHS’s risk management having the newest single-members of the family financial ensure system generally line-up which have federal requirements, and others aren’t totally in keeping with requirements and leading methods. Instance, RHS possess principles and functions for a number of exposure- administration qualities treated inside the Place of work from Government and you can Budget guidance (particularly choosing debtor creditworthiness and you may supervising lenders). not, GAO’s ongoing work implies that, contrary to government inner control conditions, RHS doesn’t have authored procedures and procedures getting a committee accountable for evaluating borrowing quality products and you may dealing with all of them courtesy plan changes. Including, certain benchmarks RHS spends to help measure the overall performance of its protected collection provides constraints you to definitely fade its well worth to possess evaluating chance and are not totally consistent with leading strategies to own effective performance strategies. These flaws will get reduce possibilities out of RHS’s exposure-administration perform.

As to why GAO Did This research

RHS, an agency in this USDA, administers loads of head financing, financing guarantee, and you will offer apps you to definitely help reasonable houses and area development getting outlying owners. According to USDA monetary and you may budget data, RHS handles a profile out of almost $120 mil in the homes finance and you will financing pledges and administers far more than simply $1 mil into the local rental assistance repayments from year to year. GAO provided about three accounts since the s (see GAO-11-329, GAO-12-554, and you will GAO-12-624) and contains constant work in this particular area.

So it testimony is founded on people about three records and continuing GAO performs. It talks about (1) early in the day GAO results on extent to which the latest homes applications out-of RHS and HUD convergence and related ramifications getting system collaboration and consolidation; (2) the newest standing out of GAO recommendations on the newest rental property advice system and you may ranch labor housing mortgage and you will offer program; and you may (3) first findings throughout the constant review of chance-government practices toward single-family relations financing verify system. In order to revise brand new position regarding advice, GAO reviewed RHS policies, measures, and accounts. For the ongoing performs, GAO reviewed federal conditions and you may best strategies getting exposure management and you will compared all of them with RHS principles, tips, and you will means. GAO plus questioned RHS authorities.

GAO tends to make no the latest information in this testimony, but may imagine and make extra advice immediately following the lingering job is done.