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GAO:
Delays cause backlog in elderly housing program
CNN, June 17, 2003 WASHINGTON -
About $730 million for Section 202 program projects had gone unspent as of
last year because of administrative requirements at the Department of
Housing and Urban Development, the General Accounting Office reported at a
hearing of the Senate Special Committee on Aging. The GAO analysis,
conducted for projects scheduled between 1998 and 2000, found that
construction on more than 70 percent of Section 202 projects, or 118
projects, did not start within 18 months of the money being allocated. HUD
guidelines require a startup within 18 months, but 45 percent of the
projects had not started even after receiving six-month extensions. Assistant HUD
Secretary John Weicher agreed with the GAO's analysis but said the
department had instituted changes to speed up the process. Seven of the
118 projects cited by GAO still haven't started, he said. Committee chairman
Sen. Larry Craig, R-Idaho, told Weicher he expects HUD to streamline the
process further. "HUD keeps
asking for more and more money, while at the same time seniors aren't
being served," said Craig, who requested the GAO study. "HUD
simply cannot continue to operate this way." Section 202, which
began in 1959, helps low-income residents age 62 and older. Last year,
Congress appropriated $783 million to Section 202 to finance among other
things the building of 6,000 new rental units. About 260,000 units
are available nationwide through the program, which ensures that residents
will receive assistance so they do not have to pay more than 30 percent of
their incomes. Residents also get access to services that promote
independent living. Private nonprofit
groups must apply to HUD for Section 202 money to help build the units and
for rental help for residents. Once groups are allotted the money, they
typically have 18 months to submit architectural plans, cost estimates,
building permits and other required paperwork before construction can
start. The GAO analysis
found that some delayed projects were hampered by a shortfall in Section
202 financing, which forced groups to find money from private sources.
Others were delayed because HUD personnel at field offices weren't
properly trained in processing cases and because of a lack of oversight at
HUD headquarters in Washington. Weicher said they
have improved oversight, and for the first time in a decade the department
is now offering training to new employees who work on the program. HUD
also plans to meet with industry groups about improving the program. But, he said, HUD
gets too little from Congress to meet the increasing demand for more
Section 202 housing. The GAO found $5.2 billion in unused Section 202 funds, although only 14 percent, or the $730 million, was because of delays in construction approval. The remaining 86 percent were for either approved or completed projects and rental assistance for which money has been earmarked for up to 20 years. Copyright
© 2002 Global Action on Aging |
