Improving the Process for Allocating Loan Management Set-Aside Funds to Multifamily Housing Projects

摘要

The Loan Management Set-aside Program, administered by the Department of Housing and Urban Development (HUD), is designed to help maintain the financial viability of multifamily housing projects experiencing cash-flow problems. Demand for program assistance far exceeded available funds in both fiscal years 1983 and 1984. In this report, GAO identifies the process HUD used to allocate program funds in fiscal years 1983 and 1984, discusses four areas in the allocation process that need to be strengthened, and evaluates HUD's policy that limits the use of program funds for projects with mortgages held by HUD. GAO makes recommendations to improve HUD's process for allocating limited program funds to better ensure that the most deserving multifamily housing projects receive assistance.