Kemp Unveils Reforms to ‘Clear the Decks’ at HUD

Housing and Urban Development Secretary Jack Kemp today unveiled a package of sweeping reforms to “clear the decks” at his scandal-ridden agency, including creation of a new post of chief financial officer.

At a news conference, Kemp outlined 50 reform measures to address problems of ethics, management and finance at the agency and losses at its Federal Housing Administration.

He said systemic flaws at the agency have allowed programs to become corrupted by “greedy individuals who use their political influence to gain access to HUD resources.”

Report to Kemp

Kemp said the chief financial officer will report directly to him.

He also said he is appointing a comptroller for the Federal Housing Administration, which a recent congressional report said lost $4.2 billion in 1988.

The reform package includes measures to eliminate political influence peddling that congressional investigations said plagued HUD during the eight years of the Reagan Administration.

HUD will require all consultants and lobbyists representing contractors who are seeking grants from HUD to register with the department.

Disclosure of Fees

It will also require disclosure of fees paid to any lobbyists and consultants, and the agency will ask Congress for the power to impose civil penalties of up to $10,000 for noncompliance.

Kemp said he will also require that all housing awards be made on the basis of a formula or competition designed to measure need.

The reform package will also eliminate a special discretionary fund for housing and community development that congressional investigators said had been used as a political slush fund under Reagan HUD Secretary Samuel R. Pierce Jr.