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<classification authority="sudocs">GA 1.13:T-RCED-98-137</classification>
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 <subject>Future budget projections</subject>
 <subject>Housing programs</subject>
 <subject>Budget authority</subject>
 <subject>Financial management</subject>
 <subject>Internal controls</subject>
 <subject>Low income housing</subject>
 <subject>Federal aid for housing</subject>
 <subject>Community development programs</subject>
 <subject>Unexpended budget balances</subject>
 <subject>Budget cuts</subject>
 <identifier>HUD Section 8 Moderate Rehabilitation Program</identifier>
 <identifier>HUD Section 8 Housing Assistance Program</identifier>
 <identifier>HUD Regional Connections Initiative</identifier>
 <identifier>Community Development Block Grant</identifier>
 <identifier>HUD Hope IV Program</identifier>
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<titleInfo>
 <title>Housing and Urban Development: Comments on HUD&apos;s Fiscal Year 1999 Budget Request</title>
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<abstract>Pursuant to a congressional request, GAO discussed selected aspects of
the Department of Housing and Urban Development&apos;s (HUD) fiscal year (FY)
1999 budget request, focusing on: (1) actions HUD has taken or plans to
take to improve its budget estimates; (2) the reasonableness of HUD&apos;s
request for Section 8 tenant-based and moderate rehabilitation housing
assistance; (3) HUD&apos;s justification for its Section 8 project-based
amendment request; (4) HUD&apos;s request for funding to assist the homeless;
(5) HUD&apos;s request for $100 million to fund its new Regional Connections
Initiative (RCI); (6) HUD&apos;s capacity to manage its HOPE VI program; and
(7) the budgetary implications for public and assisted housing of
welfare reform.&lt;p/&gt;GAO noted that: (1) HUD has recognized the need to improve its
budget-estimating process with better oversight and documentation, and
has started to modify its organizational structure to increase its
oversight of the staff responsible for formulating budget estimates; (2)
however, many of HUD&apos;s planned improvements--such as the Office of
Management and Budget&apos;s analysis of the program offices&apos;
submissions--were not implemented in time to help ensure the accuracy of
HUD&apos;s FY 1999 budget estimate; (3) according to HUD officials, these
improvements will be in place to enhance the FY 2000 process; (4) while
HUD has significantly improved its budgeting for Section 8 tenant-based
and moderate rehabilitation contract renewals, HUD&apos;s request for $4.8
billion to renew and amend Section 8 tenant-based and moderate housing
contracts for FY 1999 could be overstated by as much as $691 million;
(5) because this excess budget authority exists, HUD will not be likely
to need the $70 million it has requested to amend Section 8 moderate
rehabilitation contracts; (6) HUD&apos;s budget request for $1.3 billion to
amend Section 8 project-based contracts--needed to cover shortfalls in
these long-term contracts--substantially exceeds the amounts that HUD&apos;s
analyses indicated are needed; (7) this figure exceeds the amount of
$463 million that HUD used in its budget request to offset its FY 1999
needs for funding to amend project-based contracts; (8) to help address
the needs of the nation&apos;s homeless, HUD has requested 34,000 new Section
8 vouchers; (9) if approved, the vouchers would help to address
congressional concern that a high proportion of funding for homeless
assistance has been spent in the past on supportive services instead of
on direct housing assistance; (10) however, HUD has not developed the
eligibility standards or other planning criteria that would facilitate
the program&apos;s implementation; (11) HUD&apos;s budget request for $100 million
for RCI does not provide enough detail to indicate whether this level of
funding is reasonable for the program; (12) HUD may not have the
capacity to properly manage +$550 million it is requesting for the HOPE
VI program and it will have to rely more on outside contractors to
oversee the program; (13) welfare reform may have a substantial future
impact on HUD&apos;s spending for assisted housing for low-income households;
and (14) estimating the impact may not be possible because the states&apos;
differing welfare reform provisions produce different effects from state
to state and year to year.</abstract>
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<identifier type="preferred citation">GAO/T-RCED-98-137</identifier>
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<subject>
 <topic>Future budget projections</topic>
 <topic>Housing programs</topic>
 <topic>Budget authority</topic>
 <topic>Financial management</topic>
 <topic>Internal controls</topic>
 <topic>Low income housing</topic>
 <topic>Federal aid for housing</topic>
 <topic>Community development programs</topic>
 <topic>Unexpended budget balances</topic>
 <topic>Budget cuts</topic>
 <topic>HUD Section 8 Moderate Rehabilitation Program</topic>
 <topic>HUD Section 8 Housing Assistance Program</topic>
 <topic>HUD Regional Connections Initiative</topic>
 <topic>Community Development Block Grant</topic>
 <topic>HUD Hope IV Program</topic>
 <topic>HUD Continuum of Care Program</topic>
 <topic>HUD Section 8 Voucher Program</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 383 (93rd Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 93-383</identifier>
</relatedItem>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 18 (105th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 105-18</identifier>
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