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Property Disposition: HUD's Illinois State Office Incurred Unnecessary Management Expenses

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Report Type Reports and Testimonies
Report Date April 22, 1996
Report No. RCED-96-52
Subject
Summary:

Although the Department of Housing and Urban Development (HUD) cannot control all the costs associated with buying and selling foreclosed single-family properties, it can avoid or minimize some of the costs of managing them. GAO reviewed HUD's Single-Family Property Disposition Program in the Illinois State Office and found that the Illinois State Office had spent thousands of dollars unnecessarily on water and sewer services, as well as for tax penalties, lost properties, and increased costs to recover properties from the new owners. Nationwide, HUD could be wasting large amounts of money. GAO supports efforts by the Illinois State Office to better track unpaid taxes, which would help avoid future tax liens and lost properties.

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