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<classification authority="sudocs">GA 1.13:T-RCED-99-104</classification>
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 <subject>Low income housing</subject>
 <subject>Grant administration</subject>
 <subject>Rent subsidies</subject>
 <subject>Federal aid for housing</subject>
 <subject>Financial management</subject>
 <subject>Community development programs</subject>
 <subject>Contract administration</subject>
 <subject>Presidential budgets</subject>
 <subject>Housing programs</subject>
 <identifier>HUD HOME Program</identifier>
 <identifier>HUD Empowerment Zones and Enterprise Communities Programs</identifier>
 <identifier>Community Development Block Grant</identifier>
 <identifier>HUD Indian Housing Program</identifier>
 <identifier>HUD Community Development and Planning Program</identifier>
 <identifier>HUD Section 8 Housing Assistance Program</identifier>
 <identifier>HUD Public Housing Program</identifier>
 <identifier>HUD Note Sales Program</identifier>
 <type>Testimony</type>
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<titleInfo>
 <title>Housing and Urban Development: Comments on HUD&apos;s Fiscal Year 2000 Budget Request</title>
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<abstract>Pursuant to a congressional request, GAO discussed the Department of
Housing Urban Development&apos;s (HUD) fiscal year (FY) 2000 budget request,
focusing on: (1) new initiatives or significant increases proposed by
HUD; and (2) observations about HUD&apos;s request for funding related to
several areas GAO has reported on in the past year.&lt;p/&gt;GAO noted that: (1) to support 19 new programs and initiatives, HUD is
requesting nearly $731 million of its $28 billion total request for FY
2000; (2) in each case, Congress did not provide funding for the
activity in FY 1999, although in some cases the program has been funded
in prior years; (3) GAO is concerned about HUD&apos;s overall capacity to
plan for, administer, and oversee this many new programs, particularly
when HUD itself is undergoing significant organizational reform and when
some of the new initiatives are in areas, such as contracting, that
HUD&apos;s performance has been questioned in the past; (4) one of the most
significant increases in HUD&apos;s current programs for FY 2000 is a $1
billion increase in its Section 8 rental housing assistance program; (5)
however, the budget does not provide sufficient information to evaluate
this request; (6) GAO believes a number of associated issues exist that
warrant review; (7) HUD&apos;s tracking and oversight of its Community
Development and Planning grants are made difficult because information
in its grants management information system is unreliable; (8) although
HUD plans to replace the current system for managing and tracking
Community Development Block Grants, a new system is several years away
from implementation; (9) in the meantime, HUD&apos;s FY 2000 budget request
proposes to continue adding set-asides to the block grant; (10) however,
HUD cannot be assured that financial tracking of the individual grants
and grantees will be adequate; (11) in one of its largest new
initiatives, HUD is requesting over $200 million in FY 2000 to fund
contract administrators for the contracts it has with owners of
multifamily properties in HUD&apos;s project-based Section 8 housing
assistance program; (12) however, work that GAO, HUD&apos;s Inspector
General, and the National Academy of Public Administration have done in
the past on HUD&apos;s contracting activities identified weaknesses in HUD&apos;s
ability to administer contracts and monitor contractors&apos; performance;
(13) however, GAO believes that the success of this program will depend
on the adequacy of HUD&apos;s contract selection, administration, and
oversight of these contracts; (14) HUD is proposing both a new
initiative and a program increase in the area of empowerment zones as
well as two set-asides in the Community Development Block Grant Program
for empowerment zones; and (15) these proposals raise questions about
how the programs will coordinate with and benefit from each other
because they target similar beneficiaries.</abstract>
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<identifier type="preferred citation">GAO/T-RCED-99-104</identifier>
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<note>Testimony</note>
<extension>
 <searchTitle>GAO/T-RCED-99-104; Housing and Urban Development: Comments on HUD&apos;s Fiscal Year 2000 Budget Request;
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<subject>
 <topic>Low income housing</topic>
 <topic>Grant administration</topic>
 <topic>Rent subsidies</topic>
 <topic>Federal aid for housing</topic>
 <topic>Financial management</topic>
 <topic>Community development programs</topic>
 <topic>Contract administration</topic>
 <topic>Presidential budgets</topic>
 <topic>Housing programs</topic>
 <topic>HUD HOME Program</topic>
 <topic>HUD Empowerment Zones and Enterprise Communities Programs</topic>
 <topic>Community Development Block Grant</topic>
 <topic>HUD Indian Housing Program</topic>
 <topic>HUD Community Development and Planning Program</topic>
 <topic>HUD Section 8 Housing Assistance Program</topic>
 <topic>HUD Public Housing Program</topic>
 <topic>HUD Note Sales Program</topic>
</subject>
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