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Housing for the Elderly: HUD Policy Decisions Delay Section 202 Construction Starts: RCED-91-4 by U. S. Government Accountability Office (

Housing for the Elderly: HUD Policy Decisions Delay Section 202 Construction Starts: RCED-91-4

by U. S. Government Accountability Office (
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Book cover type: Paperback
  • ISBN13: 9781289084943
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Bibliogov
  • Publisher Imprint: Bibliogov
  • Publication Date:
  • Pages: 60
  • Original Price: GBP 13.99
  • Language: English
  • Edition: N/A
  • Item Weight: 127 grams
  • BISAC Subject(s): General

Pursuant to a congressional request, GAO reviewed the Department of Housing and Urban Development's (HUD) processing of section 202 projects for constructing rental housing for the elderly and handicapped, focusing on: (1) increases in project processing time; (2) the need for additional sponsor contributions to cover project development costs; (3) field offices' interpretation of cost-containment requirements; and (4) field offices' program administration.
GAO found that: (1) the average processing time for section 202 projects, from reservation of funds to construction start, increased from 19.3 months in 1980 to 26.8 months in 1988; (2) processing time varied significantly among HUD field offices; (3) local rental market surveys frequently indicated that HUD fair-market-rent limits were too low, causing sponsors to perform time-consuming and costly project redesign or to contribute additional funds for projects; (4) field offices inconsistently interpreted cost containment requirements and increased project processing time when they inappropriately used the requirements to reduce project costs to fair-market-rent limits; and (5) while some field offices developed effective processing procedures and practices, others did not.

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