	Background

Under the U. S. Housing Act of 1937, as amended, Congress created the  federal public housing program to provide decent and safe rental housing  for eligible low-income families, the elderly, and persons with disabilities. HUD administers the program with PHAs, typically local agencies created  under state law that manage housing for low-income residents at rents  they can afford. HUD Provides Funding, Guidance, and Oversight for Local PHAs

Traditionally, HUD has provided funding to local PHAs to manage the  public housing system, as well as for the revitalization of severely  distressed public housing. In addition, HUD has provided selected  agencies with grants under the HOPE VI program to help housing agencies  replace and revitalize severely distressed public housing with physical and  community and supportive service improvements. HUD  provides guidance to PHAs to supplement its regulations, and explicitly  convey required program policies and procedures. Some of our past work has shown a need for HUD to improve the clarity  and/or timeliness of its guidance to housing authorities. 1). Our past work has identified opportunities for HUD to improve its  oversight of housing agencies and it provision of technical assistance. PHAs Are Responsible for Managing Public Housing in Accordance with HUD Regulations and Requirements

Generally, PHAs are responsible for administering the public housing  program in accordance with HUD regulations and requirements. QHWRA also established new requirements for housing agencies,  including, for example, mandatory reporting requirements in the form of a  5-year plan and annual reporting plans. Five-year plans include long-range  goals, while annual plans detail the agency’s objectives and strategies for  achieving these goals, as well as the agency’s policies and procedures. Private Capital Has Been Involved in Some HOPE VI Projects

While we have not reviewed the extent to which capital markets can be  used with the public housing system, our reviews of the HOPE VI program  have shown that some PHAs use HOPE VI revitalization grants to leverage  additional funds from a variety of other public and private sources. HUD encourages PHAs to use their HOPE VI grants to leverage funding  from other sources to increase the number of affordable housing units  developed at HOPE VI sites. Community Services Organizations May Provide Supportive Services to Public Housing Residents

PHAs may utilize community service organizations to provide supportive  services to public housing residents. Also, HUD’s Service Coordinator Program provides funding for  PHA managers of public housing designated for the elderly or persons  with disabilities to hire coordinators to assist residents in obtaining  supportive services from community agencies; and its Congregate Housing  Services Program provides grants for the delivery of meals and  nonmedical supportive services to residents of public and multifamily  housing who are elderly or have disabilities. This work identified examples of partnerships between PHAs  and local organizations such as community-based nonprofits and churches  to provide supportive services for the elderly and non-elderly persons with  disabilities. Public Housing: Information on Receiverships at Public Housing  Authorities. Major Management Challenges and Program Risks: Department of  Housing and Urban Development.
Why GAO Did This Study

Under the Public Housing Program, the Department of Housing and Urban Development (HUD) and local public housing agencies (PHA) provide housing for low-income residents at rents they can afford. Today, over 3,000 PHAs administer approximately 1.2 million public housing units throughout the nation. First authorized in 1937, the program has undergone changes over the decades. The Quality Housing and Work Responsibility Act of 1998 increased managerial flexibility but also established new requirements for housing agencies. Some observers have questioned the program's ability to provide quality, affordable housing to the nation's neediest families. This testimony, which is based upon a number of reports that GAO has issued related to public housing since 2002, discusses the roles of (1) HUD (2) public housing agencies, (3) capital markets, and (4) community services organizations in the public housing system.

What GAO Found

Traditionally, HUD's role has been to provide PHAs with funding, guidance, and oversight. HUD provides both capital and operating funding. In addition, HUD has provided selected agencies with grants under the HOPE VI program to demolish and revitalize severely distressed public housing and provide community and supportive services. HUD provides guidance to PHAs to supplement its regulations and explicitly convey required program policies and procedures. Based on past work, GAO has made recommendations to HUD to improve the clarity and timeliness of its guidance to PHAs and to improve its oversight of the program. PHAs are responsible for managing public housing in accordance with HUD regulations and requirements. They are also required to develop and submit plans detailing the agency's goals and strategies for reaching these goals. Further, PHAs that receive HOPE VI grants are required to provide residents with supportive services. GAO's work has identified challenges that the agencies face in carrying out their responsibilities, including difficulty with HUD's data systems and lack of resources for hiring and training staff. GAO has not reviewed the extent to which capital markets can play a role in the public housing system, but its examination of the HOPE VI program and other work has identified examples of leveraging federal funds with funds from a variety of other public and private sources. HUD encourages public housing agencies to use their HOPE VI grants to leverage funding from other sources to increase the number of affordable housing units developed at project sites. The examples GAO has found include private funding for both capital projects and the provision of supportive services. PHAs may utilize community service organizations to assist public housing residents. Work GAO has done on federal housing programs that benefit the elderly, as well as recent work focused on public housing for the elderly and residents with disabilities, identified examples of supportive services being offered or provided to public housing residents. Such services may be provided through HUD grants as well as through partnerships between public housing agencies and community-based nonprofit organizations.