Housing and Community Development Products, 1995 (Other Written Prod.,
08/01/96, GAO/RCED-96-248W).

GAO presented a listing of testimonies and reports issued from January
1995 to December 1995 on housing and community development programs and
other related topics.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-96-248W
     TITLE:  Housing and Community Development Products, 1995
      DATE:  08/01/96
   SUBJECT:  Low income housing
             Community development
             Public housing
             Government guaranteed loans
             Mortgage loans
             Mortgage programs
             Foreclosures
             Loan defaults
             Small business assistance
             Reengineering (management)
IDENTIFIER:  Bibliographies
             SBA Three Percent Preferred Stock Repurchase Program
             Aid to Families with Dependent Children Program
             SBA 8(a) Program
             HUD Mark to Market Program
             HUD Single Family Mortgage Assignment Program
             HUD Reinvention Blueprint
             AFDC
             HUD Section 8 Rental Assistance Program
             
******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO report.  Delineations within the text indicating chapter **
** titles, headings, and bullets are preserved.  Major          **
** divisions and subdivisions of the text, such as Chapters,    **
** Sections, and Appendixes, are identified by double and       **
** single lines.  The numbers on the right end of these lines   **
** indicate the position of each of the subsections in the      **
** document outline.  These numbers do NOT correspond with the  **
** page numbers of the printed product.                         **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
** A printed copy of this report may be obtained from the GAO   **
** Document Distribution Center.  For further details, please   **
** send an e-mail message to:                                   **
**                                                              **
**                                            **
**                                                              **
** with the message 'info' in the body.                         **
******************************************************************


Cover
================================================================ COVER


Resources, Community, and Economic Development Division

August 1996

HOUSING AND COMMUNITY DEVELOPMENT
PRODUCTS, 1995

GAO/RCED-96-248W


(385638)


Abbreviations
=============================================================== ABBREV

  AFDC - Aid to Families With Dependent Children
  AIMD - Accounting and Information Management Division
  CFDA - Catalog of Federal Domestic Assistance
  CHA - Chicago Housing Authority
  DOD - Department of Defense
  FEMA - Federal Emergency Management Agency
  FHA - Federal Housing Administration
  GAO - General Accounting Office
  GGD - General Government Division
  HEHS - Health, Education, and Human Services Division
  HUD - Department of Housing and Urban Development
  IRM - Information Resources Management
  OIG - Office of Inspector General
  OMB - Office of Management and Budget
  RCED - Resources, Community, and Economic Development Division
  SBA - Small Business Administration
  SBIC - Small Business Investment Company
  SSBIC - Specialized Small Business Investment Company
  SCORE - Service Corps of Retired Executives
  USDA - U.S.  Department of Agriculture

FOREWORD
============================================================ Chapter 0

GAO's Housing and Community Development Issue Area conducts studies
of programs involved in providing affordable housing and maintaining
vital communities for all Americans.  Agencies administering these
programs include the Department of Housing and Urban Development, the
Department of Veterans Affairs, the Department of Agriculture's Rural
Housing Service, the Small Business Administration, the Federal
Emergency Management Agency, and many private and nonprofit community
organizations. 

This index includes information on the products issued from January
1995 through December 1995 that discuss housing and community
development programs.  It also includes studies performed in other
GAO issue areas on related topics.  This index is divided into broad
subject areas that should be useful for general information and
research purposes and for understanding the housing and community
development issues that GAO is addressing. 

Questions about this index can be directed to us by mail at the U.S. 
General Accounting Office, Room 2474, 441 G Street, NW, Washington,
D.C.  20548; or by telephone at (202) 512-7631.  Readers interested
in ordering documents or in requesting searches on a specific topic
should call (202) 512-6000 or fax a request to (301) 258-4066. 
Additional ordering details appear at the end of this index. 

Judy A.  England-Joseph
Director, Housing and Community
Development Issues
Resources, Community, and
Economic Development Division



Lawrence J.  Dyckman
Associate Director


PUBLIC AND ASSISTED HOUSING
============================================================ Chapter 1

Rural Housing Programs:  Opportunities Exist for Cost Savings and
Management Improvement.  (Letter Report, 11/16/95, GAO/RCED-96-11)

The U.S.  Department of Agriculture's Rural Housing and Community
Development Service provides about $2.85 billion each year for rural
housing loans.  As of June 1995, the Service had an outstanding
single-family and multifamily housing loan portfolio of about $30
billion, which represented a significant federal investment in
affordable housing for the rural poor.  The largest portion of the
loan portfolio is for single-family direct and guaranteed mortgage
loans that are made to families or individuals who are without
adequate housing and who are unable to obtain loans from private
lenders at reasonable costs.  Rural multifamily rental housing loans,
made to finance apartment-style housing or to buy and rehabilitate
existing rental units, make up the rest of the portfolio.  This
report provides information on the Service's single- and multifamily
housing loans programs and discusses suggestions made by GAO and
others that could yield cost savings or management improvement in
these programs. 

Multifamily Housing:  Issues and Options to Consider in Revising
HUD's Low-Income Housing Preservation Program.  (Statement for the
Record, 10/17/95, GAO/T-RCED-96-29)

The Department of Housing and Urban Development's (HUD) program for
preserving low-income housing seeks to maintain the affordable
low-income housing that was created mainly under two federal housing
programs during the 1960s and 1970s.  Under these programs, when
owners received HUD-insured mortgages with 40-year repayment periods,
they entered into agreements with HUD that imposed affordability
restrictions, such as limits on the income level of tenants and on
the rents that could be charged at the properties.  After 20 years,
however, owners had the right to pay off their mortgages in full
without prior HUD approval and terminate the affordability
restrictions.  The preservation program has proven to be complex and
costly, prompting recommendations from HUD and others to change or
repeal the program.  This testimony focuses on (1) how the current
preservation program works, (2) the status of preservation eligible
projects, (3) concerns that have been raised about the program, and
(4) options for revising the program. 

Housing and Urban Development:  Public and Assisted Housing Reform. 
(Statement for the Record, 10/13/95, GAO/T-RCED-96-22), (Testimony,
10/13/95, GAO/T-RCED-96-25)

Current federal housing programs are seen as overly regulated and
leading to warehousing of the poor, and Congress is asking state and
local governments to assume a larger role in defining how the
programs work.  The Congress is now reconsidering the most basic
aspects of public housing policy--whom it will house, the resources
devoted to it, the amount of existing housing stock that will be
retained, and the rules under which it will operate.  These
statements provide GAO's views on legislation pending before
Congress--S.  1260 and H.R.  2406--that would overhaul federal
housing policy.  GAO testified that the two bills contain provisions
that will likely improve the long-term viability of public housing,
such as allowing mixed incomes in public housing and conversion of
some public housing to housing vouchers or tenant-based assistance
when that makes the most sense.  GAO also supports provisions to
significantly beef up the Department of Housing and Urban
Development's (HUD) authority to intervene in the management of
troubled housing authorities, but GAO cautions that questions remain
about the reliability of the oversight system that HUD uses to
designate these agencies as "troubled."

Public Housing:  Status of HUD's Takeover of the Chicago Housing
Authority.  (Testimony, 09/05/95, GAO/T-RCED-95-275)

This testimony focuses on the Department of Housing and Urban
Development's (HUD) takeover of the Chicago Housing Authority (CHA)
in May 1995.  The HUD takeover was prompted by the poor physical
condition of the CHA's extensive housing stock and the troubled
management of the housing authority.  GAO concludes that HUD
officials had little choice in taking over CHA.  Even if the progress
that HUD has made so far in establishing CHA continues, HUD will not
solve CHA's problems in the near future.  Because of the magnitude
and persistence of the problems, improvements at the authority will
take years to achieve and short-term gains will be difficult.  Thus,
it is important that HUD officials not raise the expectations of
tenants or the public for immediate solutions.  Although HUD has set
and already met some short-term goals, preparing a comprehensive
long-term recovery plan is crucial to ensuring sustained success. 

Public Housing:  Converting to Housing Certificates Raises Major
Questions About Cost.  (Letter Report, 06/20/95, GAO/RCED-95-195)

Proposed legislation submitted to Congress by the Department of
Housing and Urban Development (HUD) would change how the United
States has traditionally funded public housing.  Federal aid would no
longer flow to public housing authorities but instead would go to
households in the form of housing certificates, giving these families
the choice of remaining in public housing or moving to rental
apartments.  HUD believes that this shift in policy would save money
and solve several basic problems with public housing, including
residents' lack of choice in housing, the concentration of very poor
people in very poor neighborhoods, and a lack of discipline in
management of public housing because of its insulation from the
marketplace.  This report analyzes the proposed legislation and (1)
describes the cost implications and issues raised by switching from
the current public housing program to one using housing certificates
and (2) identifies key factors that may affect HUD's plan to provide
greater housing choice for public housing residents. 

Multifamily Housing:  HUD's Mark-to-Market Proposal.  (Testimony,
06/15/95, GAO/T-RCED-95-230) (Testimony, 06/13/95, GAO/T-RCED-95-226)

The Department of Housing and Urban Development (HUD) is proposing to
restructure its multifamily housing portfolio via an approach known
as "mark to market." About two million privately owned and managed
rental units benefit from mortgage insurance or rental subsidies
provided by HUD.  The proposal seeks to overcome problems plaguing
projects in HUD's multifamily portfolio that both have HUD-insured
mortgages and receive rental subsidies tied to units in the projects
under HUD's Section 8 rental assistance program.  The proposal calls
for decoupling rental subsidies and mortgage insurance at individual
projects and adjusting mortgage debt to help projects compete
effectively in the commercial rental market.  This testimony focuses
on the following questions:  (1) What problems affect the condition
of HUD's multifamily housing portfolio?  (2) How does HUD believe
that its mark-to-market proposal would solve these problems?  (3)
Which properties will be affected by HUD's proposal?  (4) What costs
and savings may result from the mark-to-market approach?  (5) What
key issues does the Congress face in considering the proposal? 

Public Housing:  HUD's Takeover of the Chicago Housing Authority. 
(Testimony, 06/07/95, GAO/T-RCED-95-222)

The Chicago Housing Authority has a long history of troubled
management and poor housing conditions that arise from deficient
management systems; aging, deteriorated, and poorly designed stock;
and the extremely low incomes of residents.  The Department of
Housing and Urban Development's (HUD) ability to take over a troubled
housing authority has been hampered in the past by limited resources
and staff expertise.  In the past two years, however, key officials
with housing expertise have joined HUD, and the long-term benefits of
taking drastic action outweigh the costs of continued troubled
status.  Finally, proposed statutory changes, such as repealing the
one-for-one replacement requirement, reforming rent calculation
rules, and changing public housing eligibility criteria, could result
in better use of federal funds for assisted housing. 

HUD-Assisted Renters.  (Correspondence, 05/18/95, GAO/RCED-95-167R)

Pursuant to a congressional request, GAO provided information on the
Department of Housing and Urban Development's (HUD) rental assistance
programs, focusing on the potential for assisted households to move
toward or achieve economic self-sufficiency.  On the basis of samples
of 1989 data, GAO noted:  (1) HUD-assisted renters' median age was 50
years, with 29 percent 34 years or younger, 36 percent between the
ages of 35 and 64, and 35 percent 65 years or older; (2) the elderly
and the disabled, who constituted about 49 percent of HUD-assisted
households, had limited potential for achieving self-sufficiency; (3)
45 percent of assisted households had children, with 12 percent
having three or more children; (4) about 55 percent of the households
were headed by single parents; (5) single parents needed child care
and other services in order to participate in training or employment
programs; (6) about 36 percent of the heads of assisted households
had graduated from high school, another 18 percent had 1 or more
years of college, and 21 percent had fewer than 8 years of schooling;
(7) at least 45 percent of HUD-assisted renters needed additional
education or training to become self-sufficient; (8) the renters'
median income was $7,320; (9) about 7 percent of the renters had
incomes of $20,000 or more; (10) only 40 percent of the households
reported income from wages or salaries; and (11) a 3-member family
renting a 2-bedroom apartment would need an annual income ranging
from $18,396 to $36,264 to become economically independent of the
housing program. 

Multifamily Housing:  Better Direction and Oversight by HUD Needed
for Properties Sold With Rent Restrictions.  (Letter Report,
03/22/95, GAO/RCED-95-72)

Between 1990 and 1993, the Department of Housing and Urban
Development (HUD) began foreclosure on a large number of insured
mortgages on multifamily properties with financial, physical, or
operating problems.  However, HUD was unable to sell many of the
properties promptly because of the long-term rent subsidies the
agency had attached to the properties.  Purchasers of 62 properties
agreed to restrict rents charged to low-income households to the same
rents that they would have paid under the HUD rent subsidy
program--usually 30 percent of the household income.  GAO found that
HUD has not (1) provided its field offices nor purchasers of HUD
multifamily properties with clear instructions on the procedures
owners must follow in managing properties subject to rent
restrictions or (2) established long-term requirements specifying how
field offices should oversee owners' compliance with agreed-upon use
restrictions.  As a result, HUD has placed inconsistent requirements
on property owners and, until recently, had not required field
offices to oversee owners' compliance. 

Public Housing:  Funding and Other Constraints Limit Housing
Authorities' Ability to Comply With One-for-One Rule.  (Letter
Report, 03/03/95, GAO/RCED-95-78)

The overall vacancy rate in public housing is about 8 percent.  This
average, however, masks the conditions at many large housing
authorities where uninhabitable buildings cause the rate to be close
to 22 percent.  At some authorities, whole projects are vacant and
hundreds of run-down buildings stand idle.  If housing authorities
tear down or sell any of these buildings, they are required to
replace the housing units on a one-for-one basis with new or other
inhabitable housing or provide equivalent rental assistance to the
tenants.  However, because some authorities believe that they lack
enough money or appropriate sites to replace demolished housing, they
leave the deteriorated buildings in place.  This report provides
information on (1) housing authorities with the highest number of
vacant units, (2) the impact of the one-for-one requirement on
housing authorities' ability to deal with their uninhabitable housing
units, and (3) housing officials' views on the proposed waiver of the
one-for-one replacement law. 


MORTGAGE FINANCING AND HOME
OWNERSHIP
============================================================ Chapter 2

Homeownership:  Mixed Results and High Costs Raise Concerns About
HUD's Mortgage Assignment Program.  (Letter Report, 10/18/95,
GAO/RCED-96-2)

During the 19-year period that ended in September 1993, the
Department of Housing and Urban Development (HUD) incurred losses
totalling $12.8 billion as a result of foreclosures on homes that the
Federal Housing Administration (FHA) had insured.  As an alternative
to foreclosure on such properties, HUD operates a mortgage assignment
program.  For borrowers accepted into the program, FHA pays the
mortgage debt, takes assignment of the mortgage from the lenders, and
develops a new repayment plan for the borrower under which monthly
mortgage payments can be reduced or suspended for up to 36 months. 
HUD collects mortgage payments from the borrowers while allowing them
to live in their homes.  The number of FHA borrowers participating in
the program has tripled during the past 6 years, reaching 71,500 at
the end of fiscal year (FY) 1994.  Their unpaid principal balances
total $3.7 billion.  GAO found that the program has helped borrowers
avoid immediate foreclosure, but it has not been fully successful in
helping borrowers avoid foreclosure and retain their homes on a
long-term basis.  GAO estimates that 52 percent of the nearly 68,000
borrowers who have entered the program since FY 1989 will eventually
lose their homes through foreclosure.  Moreover, program losses have
exceeded those that would have been incurred had loans gone
immediately to foreclosure without assignment.  Options to reduce
program losses include reducing the 3 year relief period provided to
borrowers, setting a time limit on eliminating delinquencies, and
accepting only those borrowers into the program who can afford to pay
at least half of their mortgage payments. 

Property Disposition:  Information on HUD's Acquisition and
Disposition of Single-Family Properties.  (Fact Sheet, 07/24/95,
GAO/RCED-95-144FS)

Each year, lenders foreclose on thousands of defaulted mortgages on
single-family properties insured by the Department of Housing and
Urban Development's (HUD) Federal Housing Administration (FHA).  With
few exceptions, HUD then takes ownership of, and later sells, these
properties.  FHA almost always loses money on the sale of foreclosed
properties.  In response to congressional concerns about the costs
that HUD incurs in acquiring, managing, and selling these foreclosed
properties, this fact sheet provides information on (1) the losses on
such properties sold during the 3 fiscal years ending September 20,
1994, and the breakdown of the costs associated with these losses;
(2) the number of properties that HUD acquired and sold during the 3
year period; and (3) the length of time that the properties remained
in HUD's inventory before being sold. 

Housing Finance:  Improving the Federal Home Loan Bank System's
Affordable Housing Program.  (Chapter Report, 06/09/95,
GAO/RCED-95-82)

Decent and affordable housing for every American family has been a
goal of national housing policy since 1949.  A shortage of affordable
housing has prompted the Congress to expand the capital available to
finance such housing.  The Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 required that the Federal Home Loan Bank
System establish an Affordable Housing Program to help finance
housing for households with very low, low, and moderate incomes and
directed GAO to evaluate this program.  This report examines (1) how
program funds have been used to support affordable housing
initiatives, (2) how the program has been run, and (3) whether
opportunities exist to improve the program as a source of housing
finance. 

Government-Sponsored Enterprises:  Development of the Federal Housing
Enterprise Financial Regulator.  (Letter Report, 05/30/95,
GAO/GGD-95-123)

GAO is required to audit the operations of the Office of Federal
Housing Enterprise Oversight, which was established in 1992 as an
independent financial regulator of the nation's two largest
government-sponsored enterprises--the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation.  As of
December 1994, the enterprises held combined assets and
mortgage-backed securities of more than $1.3 trillion.  This report
examines the Office's development, focusing on the progress made in
designing and instituting key management systems.  These include the
Office's administrative infrastructure systems--the human resources
and accounting and financial management systems--and the major
mission-related systems--examinations and capital adequacy.  The
report also provides an overview of the Office's compliance with
other operational and reporting requirements. 


HUD MANAGEMENT
============================================================ Chapter 3

HUD's Information Forums.  (Correspondence, 11/30/95,
GAO/RCED-96-17R)

Pursuant to a congressional request, GAO provided information on the
Department of Housing and Urban Development's (HUD) information
forums, focusing on (1) whether section 1913 of the U.S.  Code
applies to HUD officials engaged in lobbying activities; (2) the
federal costs incurred by HUD officials attending the forums; (3) the
purpose of HUD town meetings; and (4) the development of the forums
and the materials provided at the forums.  GAO noted that (1) U.S. 
Code 1913 exempts Cabinet members from lobbying activities; (2) HUD
spent $29,000 on forum-related activities; (3) HUD held town meetings
to seek opinions regarding its reorganization plans; and (4) the
forums grew out of meetings between various HUD officials and
included information on HUD reorganization efforts as well as the
agency's proposed budget rescission. 

HUD Management:  Greater Oversight Needed of FHA's Nursing Home
Insurance Program.  (Letter Report, 08/25/95, GAO/RCED-95-214)

The Department of Housing and Urban Development (HUD) has insured
private lenders against financial losses arising from defaults on
mortgages for nursing homes and retirement service centers.  Although
HUD officials believe that the program has enabled the agency to
assist populations or areas that are not well served by the private
sector, GAO found that the nursing home program has not been targeted
to specific populations or communities and that HUD does not collect
or analyze information on whom the program is servicing.  The Federal
Housing Administration (FHA) has not done any complete assessment of
the financial performance of the nursing home and retirement service
center programs.  Available data indicate that the nursing home
program has incurred losses of $187 million, adjusted for inflation,
during its 35-year history.  Additionally, FHA's fiscal year 1994
loan loss reserves anticipate future losses equivalent to about 19
percent of the $3.7 billion balance of nursing home loans in the
portfolio as of September 1994.  HUD data show that about 46 percent
of the retirement service center's total portfolio of about $1.4
billion had defaulted and resulted in FHA insurance claims as of
September 1994.  GAO doubts whether HUD will be able to effectively
manage the nursing home and retirement service center programs in the
near future. 

HUD OIG.  (Correspondence, 07/28/95, GAO/AIMD-95-218R)

Pursuant to an agency request, GAO reviewed allegations by a former
employee of the Department of Housing and Urban Development's (HUD)
Office of Inspector General (OIG) regarding the settlement agreement
between HUD and one of its management contractors.  GAO noted that
(1) the former OIG employee was unable to provide corraborative
evidence to support his allegations against OIG and did not direct
investigators to any credible source of information to substantiate
his allegations against HUD officials; (2) there was no evidence to
support the former employee's allegation that HUD unduly influenced
the settlement agreement and compromised the audit report; (3)
changes in the audit draft resulted from the normal supervisory
review process; and (4) there was no evidence of undue influence
regarding the audit and investigative process. 

Housing and Urban Development:  HUD's Reinvention Blueprint Raises
Budget Issues and Opportunities.  (Statement for the Record,
07/13/95, GAO/T-RCED-95-196)

This testimony comments on the Department of Housing and Urban
Development's (HUD) fiscal year 1996 budget request.  This year's
request reflects the first steps HUD has proposed toward implementing
its reinvention blueprint.  Through the blueprint, HUD seeks to
restructure and consolidate its programs, transform public housing
with direct assistance to tenants, and create an entrepreneurial,
government-owned Federal Housing Administration.  GAO discusses HUD's
proposed budget, the estimates it contains, and the budgetary impact
of certain assumptions build into HUD's reinvention blueprint. 

Purpose of, Funding for, and Views on Certain HUD Programs. 
(Correspondence, 06/20/95, GAO/RCED-95-189R)

Pursuant to a congressional request, GAO provided information on the
Department of Housing and Urban Development's (HUD) programs.  GAO
noted that (1) most of the grantees and HUD officials it talked to
believed that programs that the HUD Office of the Inspector General
identified as not related to the Department's core mission provided
worthwhile services; (2) HUD grantees and programs officials do not
believe that state, local, and private entities will provide support
for HUD activities if federal funding ceases; (3) some grantees and
program officials believed that HUD should be responsible for
providing social services and technical assistance in addition to
housing, while others believed that HUD lacked the expertise and
experience to provide such service; and (4) grantees and HUD
officials agreed that the HUD programs that OIG identified supported
the HUD legislative mandate of providing housing to low-and
very-low-income people. 

HUD Management:  FHA's Multifamily Loan Loss Reserves and Default
Prevention Efforts.  (Letter Report, 06/05/95, GAO/RCED/AIMD-95-100)

In recent years, the number of defaults on Federal Housing
Administration (FHA)-insured loans for multifamily housing has
soared.  In 1994, FHA established loan loss reserves of $103 billion
for its multifamily portfolio.  This represents the amount that HUD
expects to lose from future defaults on FHA-insured loans.  This
report evaluates (1) the methodology that FHA used to set loan loss
reserves for its fiscal year 1993 multifamily portfolio; (2) the
relative benefit of creating a new, actuarially sound insurance fund
for all new multifamily housing insurance commitments; and (3) HUD's
current initiatives for preventing future defaults on FHA's
multifamily housing loans. 

Housing and Urban Development:  Reform and Reinvention Issues. 
(Testimony, 03/14/95, GAO/T-RCED-95-129)

The Department of Housing and Urban Development (HUD) suffers from
severe organizational and managerial problems that it is still in the
early stages of addressing.  Because HUD's problems involve large
federal loan commitments and discretionary spending, controlling the
agency's spending will require the reexamination of federal housing
and community development policies and HUD's mission.  This testimony
focuses on (1) long-standing management shortcomings at HUD and the
agency's progress in addressing them; (2) problems that HUD and the
Congress face in public and assisted housing programs, which account
for the bulk of HUD's outlays; (3) the challenges that HUD faces in
restructuring its programs and mechanisms for delivering them; and
(4) fundamental questions that should be answered in considering
future housing and community development policies. 

Housing and Urban Development:  Reforms at HUD and Issues for Its
Future.  (Testimony, 02/22/95, GAO/T-RCED-95-108)

The Department of Housing and Urban Development (HUD) suffers from
severe organizational and management problems that the agency is
still in the early stages of addressing.  Because HUD's programs
consist of large federal loan commitments and discretionary spending,
controlling HUD's spending will require a reexamination of federal
housing policies and HUD's mission.  Does HUD have the ability and
the resources to carry out its responsibilities?  To what extent is
the federal government able to support these efforts?  This testimony
discusses (1) long-standing management shortcomings at HUD that
hamper its effectiveness; (2) the problems that HUD and the Congress
face in public and assisted housing programs, which account for the
bulk of HUD's outlays; (3) the progress HUD is making in addressing
its problems; (4) the challenges that HUD faces in restructuring its
programs and mechanisms for delivering programs; and (5) the
fundamental questions that need to be answered in considering future
housing and community development policy. 

Housing and Urban Development:  Reinvention and Budget Issues. 
(Testimony, 02/22/95, GAO/T-RCED-95-112)

The Department of Housing and Urban Development's (HUD) budget
request for fiscal year 1996 totals $26.3 billion, a 2-percent
increase in budget authority and a 2-percent decrease in outlays over
fiscal year 1995 levels.  The budget reflects HUD's proposed first
steps in transitioning to the new agency envisioned in its December
1994 reinvention blueprint.  This testimony focuses on the (1)
challenges facing HUD in implementing a budget based on the
reinvention blueprint within the time frames envisioned, (2)
potential impact of long-term management deficiencies on HUD's
ability to implement the blueprint, and (3) budgetary savings that
HUD proposes achieving during the next five years. 

High-Risk Series:  Department of Housing and Urban Development. 
(Letter Report, 02/01/95, GAO/HR-95-11)

In 1990, GAO began a special effort to identify federal programs at
high risk of waste, fraud, abuse, and mismanagement.  GAO issued a
series of reports in December 1992 on the fundamental causes of the
problems in the high-risk areas.  This report on the Department of
Housing and Urban Development is part of the second series that
updates the status of this high-risk area.  Readers have the
following three options in ordering the high-risk series:  (1)
request any of the individual reports in the series, including the
Overview (HR-95-1), the Guide (HR-95-2), or any of the 10 issue area
reports; (2) request the Overview and the Guide as a package
(HR-95-21SET); or (3) request the entire series as a package
(HR-95-20SET). 

High-Risk Series:  An Overview.  (Letter Report, 02/01/95,
GAO/HR-95-1)

In 1990, GAO began a special effort to identify federal programs at
high risk of waste, fraud, abuse, and mismanagement.  GAO issued a
series of reports in December 1992 on the fundamental causes of the
problems in the high-risk areas.  This report is part of the second
series that updates the status of those areas.  The Overview
discusses the urgent need to continue addressing critical high-risk
problems, including such areas as Department of Defense (DOD)
contract and inventory management, revenue collections, major lending
programs, and oversight of tens of billions of dollars in contracts. 
Also, GAO has designated new areas as high risk, such as
long-standing financial management weaknesses in DOD, growing
fraudulent tax filings, and several critical information system
modernization projects that are plagued with problems.  In five
areas, such as the Pension Benefit Guaranty Corporation, improvement
has been signigicant enough for GAO to remove them from the high-risk
list.  In only three areas--DOD weapons system acquisition and
inventory management and the Internal Revenue Service's collection of
delinquent receivables--has little progress been made.  The series
also includes a Quick Reference Guide and a separate report for each
of 10 areas, detailing continuing significant problems and needed
corrective action.  Readers have the following three options in
ordering the high-risk series:  (1) request any of the individual
reports in the series, including the Overview (HR-95-1), the Guide
(HR-95-2), or any of the 10 issue area reports; (2) request the
Overview and the Guide as a package (HR-95-21SET); or (3) request the
entire series as a package (HR-95-20SET). 

Housing and Urban Development:  Major Management and Budget Issues. 
(Testimony, 01/24/95, GAO/T-RCED-95-89) (Testimony, 01/19/95,
GAO-T-RCED-95-86)

Long-standing departmentwide deficiencies at the Department of
Housing and Urban Development (HUD) hamper HUD's ability to
effectively carry out its mission.  These deficiencies are weak
internal controls, an ineffective organizational structure, an
insufficient mix of staff with the proper skills, and inadequate
information and financial management systems.  These deficiencies,
along with a variety of other problems, have created particularly
vexing problems for both HUD and the Congress in the area of public
and assisted housing.  These problems include how to minimize
mortgage loan defaults; deal with billions of dollars of backlogged
housing rehabilitation needs and increased vacancy levels; and
address the spiraling costs of providing housing subsidies to
lower-income families.  HUD has taken steps that begin to address its
departmentwide deficiencies as well as the problems that exist in
assisted and public housing, but many of these efforts are in their
early stages.  Solving the problems at HUD will not be easy and will
require a full examination of housing policy and HUD's mission. 


COMMUNITY DEVELOPMENT
============================================================ Chapter 4

Community Development:  Comprehensive Approaches and Local
Flexibility Issues.  (Testimony, 12/05/95, GAO/T-RCED-96-53)

The Local Empowerment and Flexibility Act of 1995 would give greater
flexibility to local governments and private nonprofit groups using
federal programs to help communities and their residents.  The
proposed legislation would create a council composed of cabinet-level
officials to review and approve local plans for integrating federal
funds to meet the needs of a specific geographic area.  This
testimony is based on a February 1995 GAO report
(GAO/RCED/HEHS-95-69) that discussed the comprehensive approaches
involving resident participation that community groups have used to
address housing, economic, and social service needs in distressed
neighborhoods.  GAO discusses (1) why community development experts
advocate a comprehensive approach, (2) what challenges they see to
advocate a comprehensive approach, and (3) how the federal government
might support comprehensive approaches. 

Block Grants:  Issues in Designing Accountability Provisions. 
(Letter Report, 09/01/95, GAO/AIMD-95-226)

The Congress has shown strong interest in consolidating narrowly
defined categorical grant programs into broader purpose block grants. 
A total of 15 block grant programs with funding of $35 billion were
in effect in fiscal year 1994, constituting a small portion of the
total federal aid to states.  If Medicare and Aid to Families With
Dependent Children are added, however, block grant spending could
rise substantially--to as much as $138 billion, or about 58 percent
of total federal aid to states.  This report summarizes information
on how accountability for financial management program performance
can be designed to fit a block grant approach and the potential
consequences flowing from such provisions.  To provide an overview
and summary of GAO's evaluations of past block grant programs, GAO
reviewed nearly two decades of reports, testimony, and other GAO
correspondence on accountability issues related to intergovernmental
programs.  GAO also consulted with experts on block grants,
performance budgeting, and financial accountability. 

Community Development:  Challenges Face Comprehensive Approaches to
Address Needs of Distressed Neighborhoods.  (Testimony, 08/03/95,
GAO/T-RCED-95-262)

This testimony is based on GAO's February 1995 report
(GAO/RCED/HEHS-95-69) on community groups that are using a
multifaceted--or comprehensive--approach that relies on residents'
participation to address housing, economic, and social service needs
in distressed neighborhoods.  Comprehensive efforts often arise from
residents' frustration over neighborhood conditions and the
dissatisfaction of service providers with the results of more limited
approaches.  GAO examines (1) why community development experts and
practitioners advocate this approach, (2) what challenges they see to
its implementation, and (3) how the federal government might support
comprehensive approaches. 

Economic Development Programs.  (Correspondence, 07/28/95,
GAO/RCED-95-251R)

GAO provided information on federal economic development programs and
the assistance that they provide, focusing on the levels of
assistance for each program in the Catalog of Federal Domestic
Assistance (CFDA), and the associated broad budget accounts as
reported by the Office of Management and Budget (OMB).  GAO noted
that (1) CFDA lists a total of 342 economic development-related
programs; (2) 13 of the 14 executive departments and many agencies
and administrations have economic development programs that provide
grants and other forms of nonloan assistance, as well as loans and
loan guarantees; (3) there is no commonly accepted definition for
economic development; and (4) the CFDA budget database does not
always provide detailed information about the program level because
individual programs may not have their own budget accounts. 

Community Development:  Reuse of Urban Industrial Sites.  (Letter
Report, 06/30/95, GAO/RCED-95-172)

Thousands of former industrial sites, known as "brownfields," are
abandoned and possibly contaminated.  Many offer potential for
redevelopment, but developers have been reluctant to get involved
because of far-reaching and uncertain liability imposed by federal
and state liability laws.  This report (1) determines what is known
about the extent and nature of abandoned industrial sites in
distressed urban areas and the barriers brownfield present to
redevelopment and (2) provides information on federal initiatives
aimed at helping communities overcome obstacles to reusing brownfield
sites. 

Community Development:  Comprehensive Approaches Address Multiple
Needs but Are Challenging to Implement.  (Chapter Report, 02/08/95,
GAO/RCED/HEHS-95-69)

The aspirations of people in distressed neighborhoods are
familiar--to have a home and a job, to live in a safe area, and to
have hope for their children's future.  Isolated by poverty,
residents of distressed neighborhoods may never realize their dreams. 
Some community-based nonprofit groups are using a multifaceted, or
comprehensive, approach to community development that relies on
residents' participation to address housing, economic, and social
service needs in distressed neighborhoods.  This report examines (1)
why community development experts and practitioners advocate this
approach, (2) what challenges they see to its implementation, and (3)
how the federal government might support comprehensive approaches. 
GAO reviewed four groups, located in Boston; Detroit; Pasadena; and
Washington, D.C., that have used comprehensive approaches in their
communities. 


DISASTER ASSISTANCE
============================================================ Chapter 5

Disaster Assistance:  Information on Declarations for Urban and Rural
Areas.  (Letter Report, 09/14/95, GAO/RCED-95-242)

Pursuant to a congressional request, GAO provided information on the
federal disaster declaration process, focusing on (1) whether the
Federal Emergency Management Agency's (FEMA) and the Small Business
Administration's (SBA) disaster declaration policies differ for rural
and urban areas; (2) the length of time taken to respond to disaster
declaration requests for rural and urban areas; (3) the proportion of
requests granted for rural areas, as compared with the corresponding
proportion for urban areas; and (4) factors that influence disaster
declaration processing time.  GAO found that (1) FEMA and SBA
disaster declaration policies do not differ with respect to whether
the affected area is rural or urban; (2) both FEMA and SBA use
criteria such as measures of damage to homes, businesses, or public
facilities, rather than measures of population density, to assess
requests for disaster declarations and to determine whether to grant
assistance; (3) in 1993 and 1994, the median processing time for
disaster declaration requests to FEMA was 11 days for rural counties
and 7 days for urban counties; (4) FEMA has made more rural counties
eligible for disaster assistance than any other type of county, while
SBA has made more urban counties eligible for assistance than any
other type of county; and (5) factors affecting the time required for
the disaster declaration process include how quickly damage
assessments are made and how well the damage is documented. 

Disaster Assistance:  Information on Expenditures and Proposals to
Improve Effectiveness and Reduce Future Costs.  (Testimony, 03/16/95,
GAO/T-RCED-95-140)

Concern has been growing in the Congress about the rising costs of
federal disaster assistance in recent years.  This testimony focuses
on (1) ways to enhance the effectiveness of several federal disaster
assistance programs, (2) proposals to modify federal disaster
assistance policy to potentially lower future federal costs, and (3)
the accuracy of financial information in the Federal Emergency
Management Agency's Disaster Relief Fund. 


SMALL BUSINESS
============================================================ Chapter 6

Small Business Administration:  Better Oversight of SBIC Programs
Could Reduce Federal Losses.  (Testimony, 09/28/95,
GAO/T-RCED-95-285)

Although the Small Business Administration (SBA) has taken steps to
reduce losses when firms fail, weaknesses in SBA's management and
oversight of the Small Business Investment Company (SBIC) and
Specialized Small Business Investment Company (SSBIC) programs
continue to place SBA funds at risk.  Corrective actions on
examination findings are not pursued rigorously, financially troubled
firms are not transferred to liquidation quickly, and overstated
asset valuations are not detected promptly.  GAO believes that these
weaknesses result in losses to the government that could have been
avoided.  Also, given today's tight budget climate, GAO questions
whether the stock repurchase program is the best use of federal funds
to help small businesses.  Finally, although GAO has found no
evidence of efforts to restrict examinations, GAO believes that the
organizational placement of the Office of Examinations in the same
division that is responsible for promoting the program leaves it
vulnerable to questions about its independence--especially in light
of the programs GAO describes in this testimony. 

Small Business:  Monitoring of Subcontracting to Small Disadvantaged
Businesses.  (Letter Report, 09/22/95, GAO/RCED-95-271)

GAO reviewed federal efforts to monitor the progress of federal
agencies' contractors in providing maximum subcontracting
opportunities for small businesses owned and controlled by socially
and economically disadvantaged persons.  GAO's review included the
Defense Logistics Agency, National Aeronautical and Space
Administration, the Department of Energy, and the General Services
Administration.  This report determines (1) how these agencies
monitor contractors' progress in subcontracting to small
disadvantaged businesses; (2) whether agencies have assessed monetary
damages, known as liquidated damages, against contractors who did not
make a good faith effort to subcontract to small disadvantaged
businesses; and (3) what initiatives are being considered to change
the monitoring process. 

Small Business:  SBA's Preferred Stock Repurchase Program.  (Fact
Sheet, 08/18/95, GAO/RCED-95-249FS)

The Small Business Administration (SBA) formerly provided investment
capital to companies covered by the Specialized Small Business
Investment Company (SSBIC) Program by purchasing their 3-percent
preferred stock.  In 1989, the Congress authorized SBA to allow
SSBICs to repurchase that stock.  Following a pilot program, SBA
began allowing SSBICs to buy back their stock at 35 percent of the
price paid by SBA.  Accrued unpaid dividends were either forgiven or
were written off over a 5-year period.  In May 1995, GAO reported
(GAO/RCED-95-146FS) that 17 SSBICs had repurchased their stock under
the program.  Since then, another 4 of the current 90 SSBICs have
repurchased their stock.  This fact sheet provides information on
each SSBIC participating in the stock repurchase program, including
(1) the repurchase price paid, unpaid dividends forgiven or allowed
to be amortized, and the method used to finance the repurchase; (2)
the company's private capital, SBA financing, and capital impairment
at the time of the stock repurchase; and (3) the company's
investments in small businesses during the last 5 years and the value
of the investment portfolio at the time of the company's most recent
report to SBA

Minority-Owned Firms' Access to Surety Bonds.  (Correspondence,
07/14/95, GAO/RCED-95-244R)

Pursuant to a congressional request, GAO reviewed minority-owned
firms' access to surety bonds.  GAO noted that (1) about half of the
minority-owned construction firms surveyed never obtained a surety
bond, either because they had not been asked to provide one or did
not bid on projects that required bonds; (2) of the firms that had
obtained bonds between 1990 and 1993, more than 1 out of 4 had been
denied a bond at least once during that time; (3) the average bond
obtained by firms in 1993 was between $250,000 and $500,000, although
up to 42 percent of firms obtained bonds of $1 million or more; (4)
up to 15 percent of the bonded firms derived their 1993 construction
revenues from jobs for which they had obtained bonds; (5) barriers to
applying for and obtaining bonds include long waiting periods,
insufficient information from surety agents regarding denials or
requirements changes, large financial commitments, extraneous
paperwork, and unaffordable bond fees; and (6) firms can improve
their access to bonds by requesting a bonding line, getting better
information about requirements and fees, and using government bonding
assistance programs or alternatives to bonds. 

Small Business:  Construction Firms' Access to Surety Bonds.  (Fact
Sheet, 06/26/95, GAO/RCED-95-173FS)

Federal law requires contractors to provide surety bonds on all
federal construction contracts worth more than $25,000.  Surety bonds
guarantee that should a bonded contractor default, a construction
project will be completed and the contractor's employees and material
suppliers will be paid.  Most state and local governments and some
private sector lenders also require construction firms to be bonded. 
Some small construction firms argue that surety companies' decisions
to approve or deny bonds can seem arbitrary and can impede the growth
of small firms, especially those owned by women and minorities. 
Because limited data exist on this issue, GAO surveyed a random
sample of 12,000 construction firms, of which about 98 percent were
small enough to qualify for Small Business Administration programs. 
GAO focused on the (1) firms' overall rate of obtaining bonds; (2)
characteristics of the small firms that did bonded work; (3) recent
experiences of these firms in obtaining bonds; and (4)
characteristics of those firms that did not perform bonded work,
including their reasons for not doing such work.  The first volume
(GAO/RCED-95-173FS) discusses the survey results in detail.  The
second volume (GAO/RCED-95-173S) provides detailed statistics on the
experiences of small construction firms. 

Small Business:  Information on SBA's Small Business Investment
Company Programs.  (Fact Sheet, 05/12/95, GAO/RCED-95-146FS)

The Small Business Investment Act of 1958 created a program to help
small businesses obtain financing for starting, maintaining, and
expanding operations.  Under the program, small business investment
companies fund small businesses by purchasing their stock or issuing
them loans.  In 1972, Congress amended the act to establish
specialized small business investment companies to fund small
businesses owned by socially or economically disadvantaged persons. 
This fact sheet provides information on (1) the performance of the
programs between 1990 and 1994, including trends in the number, the
funding, the losses, the capitalization, and the size of the
investment companies, as well as specialized small business
investment companies' participation in the Three Percent Preferred
Stock Repurchase Program; (2) investment companies' investment
activities during that period; and (3) the educational backgrounds
and work experiences of personnel in the Small Business
Administration who manage the program. 

Small Business:  Information on Eight Small and Disadvantaged
Business Utilization Offices.  (Letter Report, 04/14/95,
GAO/RCED-95-137)

To increase opportunities for small and disadvantaged businesses to
obtain federal contracts, Congress passed legislation establishing an
Office of Small and Disadvantaged Business Utilization in each
federal agency with procurement powers.  These offices are
responsible for overseeing the agency's awarding of contracts and
subcontracts to small and disadvantaged businesses.  This report
reviews offices at the following eight federal agencies:  the
Departments of Defense and Energy; the General Services
Administration; National Aeronautical and Space Administration; and,
within the Defense Department, the Departments of the Air Force,
Army, and Navy.  GAO (1) determines whether office directors report
to the appropriate agency official as required by law and (2)
describes the activities that the offices perform to help small and
disadvantaged businesses obtain federal contracts. 

Small Business:  Access to Surety Bonds.  (Testimony, 04/05/95,
GAO/T-RCED-95-150)

This testimony discusses the use of surety bonds in the construction
industry and presents the results of GAO's survey of small
construction firms.  The law requires contractors to provide surety
bonds on all federal construction contracts worth more than $25,000. 
Most state and local governments and some private-sector lenders also
require surety bonds.  Surety companies decided whether firms have
the experience and financial resources to do a given job and quality
for a bond.  Small businesses argue that bonding decisions made by
surety companies often impede the development of small firms,
especially those owned by women and minorities.  Recent legislation
directed GAO to survey small construction firms on their experiences
in obtaining surety bonds.  This report discusses (1) the percentage
of firms that obtained bonds, (2) reasons some firms were given for
denying the bonds, (3) additional conditions some firms had to meet
to obtain surety bonds, and (4) changes in requirements for surety
bonds on federal construction contracts. 

Small Business:  Status of SBA's 8(a) Minority Business Development
Program.  (Testimony, 04/04/95, GAO/T-RCED-95-149)

The 8(a) business development program undoubtedly has helped some
firms owned by socially and economically disadvantaged persons to
compete in the commercial marketplace.  This testimony focuses on
several program weaknesses that are preventing firms from obtaining
experiences essential to their development.  The total dollar value
of new contracts awarded competitively grew during fiscal year 1994,
but federal procuring agencies limit firms' opportunities for
competition under the 8(a) program.  The concentration of contract
dollars in a few firms continued in 1994, limiting the developmental
opportunities available to many firms.  And although the Small
Business Administration has approved business plans for most firms,
it has not devoted to same attention to annually reviewing these
plans to ensure that they accurately reflect the firms' development
goals and contract needs.  Moreover, many firms nearing the end of
their program terms still depend on 8(a) contracts, raising doubts
about their chances for success in the commercial marketplace. 

Small Business Administration:  Status of Small Business Investment
Companies.  (Testimony, 03/28/95, GAO/T-RCED-95-145)

Licensed and regulated by the Small Business Administration (SBA),
companies covered by the Small Business Investment Company and the
Specialized Small Business Investment Company (SSBIC) programs are
privately owned and managed firms that fund small businesses through
stock purchases and loans for starting, modernizing, and expanding
operations.  Over the years, GAO has reported on problems with SBA
oversight of the SSBIC program, such as inadequate documentation of
eligibility and prohibitive financial transactions of the program's
requirements.  This testimony focuses on SBA's oversight,
examination, licensing, and liquidation.  GAO also discusses
implementation of the Three Percent Preferred Stock Repurchase
program. 

Service Corps of Retired Executives.  (Correspondence, 03/10/95,
GAO/RCED-95-127R)

Pursuant to a congressional request, GAO provided information on the
Small Business Administration's Service Corps of Retired Executives
Program (SCORE), focusing on how SCORE (1) determines budget
allocations for regional locations; (2) officials view the fairness
of the allocations; and (3) meets the needs of rural communities. 
GAO noted that (1) SCORE regional budget allocations are based
primarily on historical trends in actual expenditures; (2) SCORE
officials stated that their areas receive a fair share of SCORE
funds, given the small size of the total budget; and (3) to meet the
needs of rural communities, SCORE uses approaches such as waiving the
guidelines for the number of volunteers needed to start a chapter and
using persons or funds from larger chapters to subsidize rural
chapters. 

Small Business:  Status of SBA's 8(a) Minority Business Development
Program.  (Testimony, 03/06/95, GAO/T-RCED-95-122)

Although the Small Business Administration (SBA) has improved some
aspects of the 8(a) business development program, which provides
federal contracts to small businesses owned by socially and
economically disadvantaged persons, it has not yet achieved key
changes mandated by the Congress.  Although the total dollar value of
new contracts awarded competitively grew during fiscal year 1994,
federal procuring agencies limit firms' opportunities for competition
under the 8(a) program.  The concentration of contract dollars in a
few firms continued in 1994, limiting the developmental opportunities
of many firms.  And although SBA has approved business plans for most
firms, it has not given the same attention to annually reviewing
these plans to guarantee that they accurately reflect the firms'
developmental goals and contract needs.  Moreover, many firms nearing
the end of their program terms still depend on 8(a) contracts,
raising doubts about the firms' ability to succeed in the commercial
marketplace. 


MAJOR CONTRIBUTORS
============================================================ Chapter 7

Nancy A.  Simmons
Robert V.  Dolson Jr.
Carol Shulman

RELATED PRODUCTS

Financial Management:  Legislation to Improve Governmentwide Debt
Collection Practices.  (Testimony, 09/08/95, GAO/T-AIMD-95-235)

This testimony focuses on the proposed Debt Collection Improvement
Act of 1995, whose overall thrust GAO agrees with, and governmentwide
debt collection improvement being considered by Congress.  Federal
agencies have long had problems in managing credit programs and
collecting nontax debts.  Billions of dollars is at stake.  As of
September 1994, the government reported $241 billion in nontax
receivables, mainly from direct loans and loans acquired as a result
of claims paid of defaulted guaranteed loans.  Of that amount, $49
billion was reported to be delinquent.  Moreover, the government was
contingently liable for outstanding guaranteed loans totaling $694
billion.  It is essential that the federal government not only make
and guarantee creditworthy loans but also put effective practices in
place to collect amounts owed.  In addition to being a good business
practice, increasing debt collections could help reduce the deficit. 
GAO highlights the magnitude of the government's direct loans and
guaranteed loans, the long-standing debt collection problems facing
federal agencies, the necessity of having reliable information with
which to manage credit programs, and the importance of leadership in
having effective credit management and debt collection programs. 

Housing and Community Development Issue Area Plan:  Fiscal Years
1996-98.  (Letter Report, 08/01/95, GAO/IAP-95-15)

GAO presented its Housing and Community Development issue area plan
for fiscal years 1996 through 1998.  GAO plans to assess the (1)
restructuring of federal housing and community development agencies
to improve service delivery, eliminate duplication, and produce cost
savings; (2) improvement of federal oversight of housing and
community development services to reduce fraud, waste, abuse, and
mismanagement; (3) reduction of the federal government's financial
risk in its mortgage assistance programs; (4) fostering of
self-sufficiency among low-income people while meeting budgetary
constraints; (5) promotion of community economic and social
development; (6) cost-effectiveness of programs that promote small
and minority business development; and (7) control of federal
disaster assistance costs. 

IRM-RCED Issue Area Plan:  Fiscal Years 1994-96.  (Letter Report,
08/01/95, GAO/IAP-95-17)

GAO provided information on its Information Resources Management
(IRM)-Resources, Community, and Economic Development issue area plan
for fiscal years 1994 through 1996.  GAO plans to (1) evaluate the
Federal Aviation Agency's Standard Terminal Automation Replacement
System and Oceanic Automation System; (2) assess the U.S.  Department
of Agriculture's (USDA) implementation of its Modernization of
Administrative Processes Program and analyze USDA component agencies'
development of financial information systems; (3) assess the
Department of Commerce's restructuring of the Advanced Weather
Interactive Processing System; (4) analyze the potential duplication
of technology developments supporting environmental data collection;
(5) assess the Department of Housing and Urban Development's efforts
to strengthen its IRM program to support its evolving information
needs; (6) assess the Department of Energy's oversight of
contractors' IRM activities and expenditures; and (7) evaluate the
testing of the Department of the Interior's Automated Land Management
System. 

Low-Income Families.  (Correspondence, 06/28/95, GAO/HEHS-95-162R)

Pursuant to a congressional request, GAO provided further information
on the incomes and relative poverty status of families receiving Aid
to Families with Dependent Children (AFDC) in comparison with nonAFDC
working poor families.  GAO noted that (1) there are nearly 80
means-tested programs targeting assistance to various groups of
low-income families; (2) in fiscal year (FY) 1993, the public
assistance programs cost $223 billion and constituted 16 percent of
that year's federal budget; (3) states provided an additional $88
billion for the means-tested programs in FY 1993; (4) federal
spending for all assistance programs has increased 58 percent since
1980; (5) five programs account for 65 percent of program outlays and
have doubled their spending since 1980; (6) many AFDC families
receive assistance from multiple programs, but there are no data
available on the extent to which AFDC families are eligible for or
receive benefits from other programs; (7) the monthly median income
for all AFDC families ranges between $633 and $767, while the monthly
median income of AFDC families who receive multiple benefits ranges
between $903 and $1,090; (8) families receiving assistance from both
AFDC and the Food Stamp Program may not be eligible for the maximum
available benefits under other assistance programs; (9) the AFDC
median income level tends

to be at or below the poverty line; and (10) working poor families
have median monthly incomes comparable with or lower than AFDC
families who receive benefits from other assistance programs,
depending on the method used to value Medicaid benefits. 

Welfare Programs:  Opportunities to Consolidate and Increase Program
Efficiencies.  (Letter Report, 05/31/95, GAO/HEHS-95-139)

The federal government provides billions of dollars in public
assistance each year through an inefficient welfare system that is
increasingly cumbersome for program administrators to manage and
difficult for eligible clients to access.  Program consolidation may
be one strategy to reduce the inefficiency of the current system of
overlapping and fragmented programs.  This report (1) describes
low-income families' participation in multiple welfare programs; (2)
examines program inefficiencies, such as program overlap and
fragmentation; and (3) identifies issues to consider in deciding
whether, and to what extent, to consolidate welfare issues. 
Regardless of how the welfare system is restructured, ensuring that
federal funds are used efficiently and that programs focus on
outcomes remains important.  Without a focus on outcomes, concerns
and the effectiveness of welfare programs will not be adequately
addressed. 

Housing and Community Development Products, 1992-94.  (Letter Report,
05/01/95, GAO/RCED-95-61W)

GAO's Housing and Community Development Issue Area studies programs
that seek to deliver affordable housing and maintain vital
communities for all Americans.  This index provides information on
GAO products issued between 1992 and 1994 on housing and community
development programs.  The index also includes studies done by other
GAO issue areas on related topics.  The index is divided into broad
subject areas that should be helpful in locating material.  Order
forms are included. 

Government Corporations:  Profiles of Recent Proposals.  (Fact Sheet,
03/30/95, GAO/GGD-95-57FS)

Government corporations are federally chartered entities created to
serve a public function of a predominantly business nature.  As used
in this fact sheet, a "proposed government corporation" meets one of
the following criteria:  (1) it was contained in legislation
introduced in the Congress, (2) it was proposed in executive agency
reorganizations, or (3) it was recommended in National Academy of
Public Administration studies commissioned by federal agencies.  This
fact sheet identifies proposals to create government corporations
between November 1993 and December 1994.  GAO also discusses the
Community Development Financial Institutions Fund--a new government
corporation created by the Riegle Community Development and
Regulatory Improvement Act of 1994. 

Means-Tested Programs.  (Correspondence, 02/24/95, GAO/HEHS-95-94R)

Pursuant to a congressional request, GAO provided information on
welfare reform proposals to simplify means-tested public assistance
programs.  GAO noted that (1) welfare services should be easily
accessible by all who seek assistance; (2) there is no integrated
strategy to unify these programs to address the interrelated needs of
individuals and families; (3) despite efforts to better coordinate
federal programs, conflicting requirements make it difficult for
program staff to coordinate activities and share resources; and (4)
program integration could be facilitated by reducing or eliminating
federal program barriers and reengineering the welfare delivery
process. 

Multiple Employment Training Programs:  Information Crosswalk on 163
Employment Training Programs.  (Fact Sheet, 02/14/95,
GAO/HEHS-95-85FS)

GAO compiled a list of 163 programs and funding streams that provide
about $20 billion in employment training assistance.  During recent
testimony before Congress (GAO/T-HEHS-95-53 and GAO/T-HEHS-95-70),
GAO indicated that the number of employment training programs had
risen to 193 since 1991 and that this fragmented "system" wasted
resources and confused and frustrated clients, employers, and
administrators.  To help the Congress make hard choices about
overhauling and consolidating employment training programs, this fact
sheet provides a crosswalk of information for each program, including
(1) fiscal year 1995 appropriation, (2) summary of the program's
purpose as it relates to employment training activities, (3)
authorizing legislation and the U.S.  citation, (4) Catalog of
Federal Domestic Assistance program number, (5) budget account
number, (6) target group, and (7) type of employment training
assistance provided. 

Means-Tested Programs:  An Overview, Problems, and Issues. 
(Testimony, 02/07/95, GAO/T-HEHS-95-76)

Nearly 80 means-tested programs have been created over the years for
low-income people.  In fiscal year 1992, the federal government spent
about $208 billion on these programs to meet the needs of poor
Americans of all ages.  The many means-tested programs are costly and
difficult to administer.  On the one hand, the programs sometimes
overlap one another; on the other hand, they are often so narrowly
focused that service gaps hinder clients.  GAO notes, that although
advanced computer technology is essential to the programs' operating
efficiently, it is not being effectively developed or used.  Due to
their size and complexity, many of these programs are vulnerable to
waste, fraud, and abuse.  Moreover, the welfare system is often
difficult for clients to use effectively.  Finally, administrators
have not articulated clear goals and objectives for some programs and
have not collected data on how well the programs are working. 

Multiple Youth Programs.  (Correspondence, 01/19/95, GAO/HEHS-95-60R)

Pursuant to a congressional request, GAO provided information on
federally sponsored youth development programs that are targeted to
delinquent and at-risk youth.  GAO noted that (1) 8 federal agencies
administer at least 46 programs that are targeted for youth
development; (2) $5.34 billion has been appropriated for fiscal year
1995 programs that serve delinquent and at-risk youth; (3) the
Corporation for National and Community Service administers 3 programs
with a funding level of $146.2 million; (4) the Department of
Education administers 10 programs with a funding level of $854.6
million; (5) the Department of Health and Human Services administers
15 programs with a funding level of $888 million; (6) the Department
of Housing and Urban Development administers 2 programs with a
funding level of $340 million; (7) the Department of the Interior
administers 2 programs with a funding level of $45.1 million; (8) the
Department of Justice administers 8 programs with a funding level of
$151.8 million; (9) the Department of Labor administers 5 programs
with a funding level of $2.9 billion; and (10) the Department of the
Treasury administers 1 program with a funding level of $9 million. 


*** End of document. ***