Sen. Wayne Allard, R-Colo., chairman of the Subcommittee on Housing and Transportation, has announced a hearing on the Department of Housing and Urban Development's single-family management and marketing contracts.

"Last year HUD created management and marketing contracts to deal with the problems created by a burgeoning portfolio of foreclosed FHA single-family properties," Allard said. "I intend to follow up and examine whether HUD's single-family management and marketing contracts have adequately protected taxpayer money and the neighborhoods where these homes are located."

At the hearing, the General Accounting Office will release a report entitled "Single-Family Housing – Stronger Measures Needed to Encourage Better Performance by Management and Marketing Contractors" requested by Chairman Allard and his House counterpart, Rep. Rick Lazio (R-NY).

HUD has reported that its inventory of acquired single-family properties at the end of fiscal year 1999 was 32 percent higher than it was a year earlier and over 100 percent higher than it was at the end of fiscal year 1996. The total number of properties in the inventory has now begun to decline; however, contractors have made little progress disposing of properties that have been in the inventory six months or more.

WHEN:

9:30 a.m. Tuesday, May 16, 2000

WHERE:

Room 538 Dirksen Senate Building

WHO:

The Honorable William C. Apgar
Assistant Secretary for Housing and Federal Housing Commissioner
Department of Housing and Urban Development

Mr. Stanley J. Czerwinski
Director, Housing and Community Development Issues
General Accounting Office

Ms. Irene Facha
HUD Employee
President, Local 2032, American Federation of Government Employees