HUD Management: Progress Made on Management Reforms, but Challenges Remain Page: 12 of 54
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* a Section 8 Financial Management Center (FMC) to consolidate
budgeting, financial, and payment functions for both project-based and
tenant-based Section 8 contracts. The FMC currently provides
financial management support for about 10,000 Section 8 contracts
from the Office of Public and Indian Housing (PIH) and the Office of
Housing (Housing).
* two TARCs to assist failing public housing agencies in correcting major
physical, financial, and management deficiencies. The TARCs
currently have responsibility for about 50 troubled or poorly
performing agencies.
* a Grants Management Center (GMC) to consolidate the processing,
reviewing, and awarding of categorical and formula grants for PIH.8
Problems Remain With All of the new centers have not assumed the responsibilities as HUD
Consolidation and envisioned and as a result, problems remain that affect the operations of
Streamlining of Programs HUD's programs. Specifically, our work indicates that HUD has not yet
resolved issues pertaining to the effective use of staff and distribution of
workload among centers and field offices, such that some offices may be
understaffed, and others may be overstaffed.
Staffing imbalances still exist at the HOCs. According to the reform plan,
HUD would consolidate its single-family operations and about 70 percent
of its field staff into the HOC's. However, as of January 2001, about 44
percent of the single-family staff remained in 71 field offices because HUD
subsequently decided not to force staff to relocate from the field offices.
As a result, some of the HOCs are understaffed while single-family staff
located in some field offices are not utilized in an effective and productive
manner. HUD's internal studies have also noted this problem: for
example, a review conducted by HUD at one office reported that eight
single-family staff located at that office were not fully utilized.
In addition, HOC managers told us that they must ship case files to field
offices for review, cannot assign large projects to offices with small
numbers of staff, and that limiting field office staff to a single activity, such
as answering telephone calls, can adversely affect staff morale.9 We
8Categorical grants apply to specific programs such as Section 8 grants and are awarded
competitively; first-come, first-serve; or by lottery. Formula grants are awarded to public
housing authorities based on a predetermined formula and are not awarded competitively.
9Single-Family Housing: Better Strategic Human Capital Management Needed at HUD's
Homeownership Centers (GAO-01-590, July 26, 2001).GAO-02-45 HUD Management Reform
Page 11
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United States. General Accounting Office. HUD Management: Progress Made on Management Reforms, but Challenges Remain, report, October 31, 2001; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc291094/m1/12/: accessed May 7, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.