United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-07-26 monographic deposited born digital 22 p. GA 1.13:T-RCED-96-231 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-96-231 P0b002ee18039a755 f:rc96231t DGPO 2010-08-12 2011-03-28 GAOREPORTS-T-RCED-96-231 machine generated eng fdlp REPORT GAOREPORTS-T-RCED-96-231 T-RCED-96-231 Rent subsidies Housing programs Low income housing Cost control Fair market value Mortgage protection insurance Mortgage loans Reengineering (management) Rental rates Rental housing FHA Multifamily Mortgage Insurance Program HUD Mark to Market Program HUD Section 8 New Housing Construction Program HUD Section 8 Rental Assistance Program HUD Section 8 Substantial Rehabilitation Program HUD Section 8 Loan Management Set-Aside Program HUD Section 8 Portfolio Reengineering Program Testimony RCED GAO discussed the Department of Housing and Urban Development's (HUD) efforts to reengineer its multifamily rental housing portfolio. GAO noted that: (1) the portfolio's excessive subsidy costs, high exposure to insurance loss, and poor physical condition stem from program design flaws, HUD dual role as loan insurer and rental subsidy provider, and weaknesses in HUD oversight and management; (3) in 1995, HUD proposed allowing property owners to set rents at market levels, terminating Federal Housing Administration (FHA) mortgage insurance, and replacing project-based rent subsidies with portable tenant-based subsidies; (4) although the proposal could lower mortgage debt, it would result in substantial FHA insurance claims; (5) HUD has made several proposal changes in 1996 due to concerns about the lack of data, effects on properties and existing residents, and the long-term financial impact on the government; (6) a 1996 contractor's report confirmed that most properties have assisted rents that are higher than estimated market rents and significant maintenance and capital improvement needs; (7) the study also indicates that most portfolio properties need to have their debt reduced to continue operating; and (8) reengineering issues requiring congressional consideration include HUD portfolio management problems, FHA insurance for restructured loans, project- versus tenant-based rent subsidies, protection for displaced households, inclusion of properties with below-market rents, mortgage restructuring, government financing of rehabilitation costs, and property owners' tax relief. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-RCED-96-231/html/GAOREPORTS-T-RCED-96-231.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-T-RCED-96-231/pdf/GAOREPORTS-T-RCED-96-231.pdf GAO/T-RCED-96-231 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-96-231 Testimony GAO/T-RCED-96-231; Multifamily Housing: Issues Facing the Congress in Assessing HUD's Portfolio Reengineering Proposal; Rent subsidies Housing programs Low income housing Cost control Fair market value Mortgage protection insurance Mortgage loans Reengineering (management) Rental rates Rental housing FHA Multifamily Mortgage Insurance Program HUD Mark to Market Program HUD Section 8 New Housing Construction Program HUD Section 8 Rental Assistance Program HUD Section 8 Substantial Rehabilitation Program HUD Section 8 Loan Management Set-Aside Program HUD Section 8 Portfolio Reengineering Program Public Law 104-134