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<classification authority="sudocs">GA 1.13:RCED-99-251</classification>
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 <reportNumber>RCED-99-251</reportNumber>
 <subject>Housing programs</subject>
 <subject>Community development programs</subject>
 <subject>Federal agency reorganization</subject>
 <subject>Budget administration</subject>
 <subject>Grant administration</subject>
 <subject>Presidential budgets</subject>
 <subject>Unexpended budget balances</subject>
 <subject>Contract administration</subject>
 <subject>Federal grants</subject>
 <identifier>HUD 2020 Management Reform Plan</identifier>
 <identifier>Community Development Block Grant</identifier>
 <identifier>HUD Community Development Disaster Assistance Program</identifier>
 <identifier>HUD Public Housing Drug Elimination Program</identifier>
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 <title>HUD&apos;s Fiscal Year 2000 Budget Request: Additional Analysis</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Department of
Housing and Urban Development&apos;s (HUD) fiscal year (FY) 2000 budget
request, focusing on: (1) whether HUD has the capacity to implement, and
adequate justification to support, the new or significantly expanded
programs and initiatives included in its budget request; (2) the
potential for HUD to use available unexpended balances in some programs
to reduce its need for new funding in other programs; and (3) whether
HUD adequately justified its use of or requests for funds in the
following five areas: (a) disaster assistance; (b) salaries and
expenses; (c) Schedule C and non-career Senior Executive Service
positions; (d) rural housing and economic development; and (e)
international housing initiatives.&lt;p/&gt;GAO noted that: (1) out of its total FY 2000 budget request of over $28
billion, HUD has requested $731 million for 19 programs and initiatives
that were not funded in FY 1999; (2) however, in GAO&apos;s March 1999
testimony on HUD&apos;s FY 2000 budget request, GAO questioned HUD&apos;s capacity
to manage this volume of additional work because of the time-consuming
organizational reform occurring at this time and the substantial
resources HUD would need to implement new programs; (3) in GAO&apos;s review
of one of the largest of these new programs--Contract Administration,
with $209 million requested for FY 2000--GAO found that HUD has not
accomplished two tasks that are critical for effective implementation;
(4) as proposed, the Contract Administration program would contract out
for the administration of 20,000 multifamily properties in HUD&apos;s
project-based section 8 housing assistance inventory; (5) although HUD
has taken steps to identify qualified contractors, HUD has not
established, to date, essential oversight procedures nor assigned key
staff to monitor the contractors&apos; performance; (6) furthermore, HUD
recently decided to exclude certain properties from the program, which
could reduce the need for fully funding the request; (7) therefore, HUD
is not prepared to fully implement the program and likely will not need
the full amount of its FY 2000 budget request for this program; (8) the
potential exists for HUD to better manage unexpended balances in a
number of programs and for some unobligated funding to be used to meet
other needs; (9) however, determining the full extent to which
unexpended balances are available for other purposes will require
additional information and analysis by HUD; (10) GAO&apos;s limited review
identified some programs--such as the Homeless Assistance, Rent
Supplement, and Rental Assistance programs--in which the need for
carrying unobligated balances is questionable; (11) it also showed that
the unobligated, unexpended balances for three selected programs are
caused by several factors, including HUD&apos;s lengthy process for making
competitive awards and funding allocation policies that delay providing
funds to grantees; (12) taking steps to scrutinize and make more
productive use of its unobligated balances is important because these
balances have grown over the past 3 years for some of HUD&apos;s existing
programs; and (13) for 4 of the 5 areas GAO reviewed, GAO found that HUD
had adequate support for its budget request.</abstract>
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<identifier type="preferred citation">GAO/RCED-99-251</identifier>
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<note>Letter Report</note>
<extension>
 <searchTitle>GAO/RCED-99-251; HUD&apos;s Fiscal Year 2000 Budget Request: Additional Analysis;
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<subject>
 <topic>Housing programs</topic>
 <topic>Community development programs</topic>
 <topic>Federal agency reorganization</topic>
 <topic>Budget administration</topic>
 <topic>Grant administration</topic>
 <topic>Presidential budgets</topic>
 <topic>Unexpended budget balances</topic>
 <topic>Contract administration</topic>
 <topic>Federal grants</topic>
 <topic>HUD 2020 Management Reform Plan</topic>
 <topic>Community Development Block Grant</topic>
 <topic>HUD Community Development Disaster Assistance Program</topic>
 <topic>HUD Public Housing Drug Elimination Program</topic>
 <topic>HUD Contract Administration Program</topic>
 <topic>HUD Empowerment Zones and Enterprise Communities Program</topic>
</subject>
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