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

GAO discussed issues and options to consider in revising the Department
of Housing and Urban Development's (HUD) Low-Income Housing Preservation
Program. GAO noted that: (1) the current preservation program restricts
owners' unlimited right to prepay mortgages but provides them with
various financial incentives, such as increases in federal rental
assistance and financing of capital improvements, to continue the
affordability restrictions for their properties; (2) the owners of 1,122
projects eligible to participate in the preservation program have filed
notices of intent to extend affordability restrictions or to sell their
properties to qualified purchasers; and (3) there are concerns about the
size of the incentives provided to project owners and the funding of
these incentives through increased federal rental assistance. In
addition, GAO noted that HUD has proposed to replace its current program
with an approach that restores the owners' right to prepay: (1)
mortgages and use capital improvement grants in lieu of federal rental
assistance payments; (2) and repeal the preservation incentives; and (3)
and continue preservation incentives, albeit on a more targeted basis
and at a reduced level.

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

 REPORTNUM:  T-RCED-96-29
     TITLE:  Multifamily Housing: Issues and Options to Consider in 
             Revising HUD's Low-Income Housing Preservation Program
      DATE:  10/17/95
   SUBJECT:  Housing programs
             Low income housing
             Disadvantaged persons
             Federal aid for housing
             Advance payments
             Rent policies
             Rent subsidies
             Property improvement loans
             Tenants
             Mortgage programs
IDENTIFIER:  HUD Section 8 Housing Assistance Program
             HUD Multifamily Housing Loan Program
             HUD Low Income Housing Preservation Program
             HUD Section 236 Rental Assistance Program
             
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