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Show 16 FACT BOOK-1972 ing publicity. In a related 'investigation by the General Accounting Office, a Congressional investigatory arm, serious deficiencies were found in the administration of the section 236 program which pro vides subsidies for multiple family housing. The report, issued January 20, 1971, criticized HUD and related departments for al lowing families with incomes so great they could not be classified as needy to live in federally subsidized housing projects. • But the most spectacular evidence of mismanagement in these HUD administered programs was uncovered by Rep. John S. Mona gan (D Conn.) and his Government Operations Subcommittee, and the Philadelphia Inquirer. They discovered widespread abandon ment of federally-insured, single-family dwellings Philadelphia, making HUD the largest single owner in Detroit and single family Detroit, entire blocks have been aban doned and are now the official property of HUD. dwellings Monagan e:::!: Scandal in both cities. In of By failing to uncover schemes by unscrupulous realtors who purchase houses in declining neighborhoods and resell them to FHA buyers after making only cosmetic repairs, HUD has cost the American taxpayer millions of dollars in these two cities alone. In the Monagan Hearings held December 2, 3, and 4, 1971, BUD and GAO experts estimated that HUD has already lost about $10,000 per house in Detroit, and would have to invest another $9,000 in each house to make it livable • . • As pointed out by Congressman Ashley, both "the Administra Congress have shown a tremendous inability to respond tion and to the enormous and complex changes taking place in the center But the difference is that Congress has recognized the challenge 'Of the housing crisis and acted to meet it, while the Nixon Administration has done little 'Or nothing. cities." 4. IMPOUNDMENTS "1 am not going to be a party to throwing federal funds around just because they happen to be available." GEORGE ROMNEY Secretary of HUn March 4, 1971 In FY 1971, the Nixon Administration impounded $1.3 billion desperately needed funds far public housing, urban renewal, model cities, and water and sewer programs, Another $25 million • of |
