The College Housing Loan Program: More Effective Management Needed
Highlights
GAO was requested to report on the Department of Housing and Urban Development's (HUD) administration of the college housing loan program. The program, authorized in the Housing Act of 1950 to assist educational institutions with low cost loans to provide student and faculty housing, was suspended in 1973; but severe localized shortages of student housing and a need to renovate buildings for energy conservation prompted Congress to renew the program after 4 years of inactivity. Since 1977, HUD has reserved $255 million for new construction loans and $101 million for energy conservation. However, the HUD process for selecting projects was inadequate to ensure that only essential projects based on current severe housing shortages were funded.