| |
Business Programs | Cooperative Development Programs | Homeownership Programs | Rental Housing Programs | Community Facilities Programs | Water and Waste Program | Telecommunications Program | Electric Program | Management Initiatives | Resource Summaries
This program has also been the focus of several audits by the Inspector General related to fraud, waste, and abuse. A performance indicator related to effective management of the program to minimize delinquencies has been added for FY 2001.
Means and Strategies: Achievement of the FY 2001 Performance Goals and Indicators is contingent upon receiving the program and general support resources indicated in this plan. The FY 2000 program levels and projected performance targets are based on Congressional appropriations and are not subject to changes that could impact a program’s subsidy rate, such as fluctuations in the Treasury discount rate. As required by the Balanced Budget Act of 1997, the program-specific subsidy rates utilized in the development of the President’s FY 2000 Budget will be used when establishing obligations of FY 2000 funds.
The Agency is employing several key strategies to implement its program:
• Build leveraging partnerships to expand resources going into rural areas.
• Reinvent the Multi-Family Housing Program, including completion of automation projects to improve program management.
In order to stretch its resources, RHS is actively developing leveraging partnerships. Leveraging of funds extends the impact of Rural Development’s limited funds and brings additional dollars into the development of rural communities. The Rural Rental Housing program has a history of fraud, abuse, and indifference to the health and safety of tenants: In reviewing the $12 billion Rural Rental Housing Program, GAO and OIG previously identified a continuing history of fraud and abuse by owners and management companies, along with instances of indifference towards the health and safety of low-income and elderly tenants. The Agency has made substantial progress and, in the 1999 listing of high-risk areas, the MFH program was not included. However, the Agency continues to work on this area of concern.
Coordination with other Federal programs can substantially enhance the delivery of the Multi Family Housing programs under the appropriate circumstances. Low income housing tax credits, authorized through the Department of Treasury, can help make housing more affordable for very low-income tenants. Section 8 assistance from HUD also helps with affordability. RHS program dollars also help State government programs and non-profit organizations leverage their resources. These programs complement, rather than compete, with each other as our programs can help make these projects affordable for the community while helping to meet the public policy goals of other Federal and State agencies.
RHS loan guarantee programs enable private sector lenders to get more involved in rural financing. Our guarantee programs bring otherwise unavailable long term, fixed rate private sector credit to rural areas.
Verification and Validation: Data from the following systems can be used to verify and validate most performance measures:
• Program Loan Accounting System (PLAS)
• Guaranteed Loan Accounting System (GLAS)
• Multi-Family Housing Information System (MFIS)
• Multi-Family Housing Tenant Information System (MFTS)
These systems track financial data, but generally not management data. These systems contain a variety of data edits to minimize the risk of inaccurate data being placed in the system. The systems are audited annually by OIG as a part of their development of an audited financial statement.