HUD Reforms Clear Congress After Hearings Reveal Abuses

Reacting to disclosures of political favoritism and other abuses at the Department of Housing and Urban Development during the Ronald Reagan Administration, Congress gave quick approval to a series of HUD reforms just before adjourning early Wednesday.

President Bush was expected to sign the bill, which was based in part on recommendations by HUD Secretary Jack Kemp. The measure had sailed through the House and Senate without opposition.

Its approval came after five months of hearings by a House Government Operations subcommittee that exposed six-figure fees for well-known Republican consultants and former HUD officials during the eight-year tenure of former HUD Secretary Samuel R. Pierce Jr.

The legislation tightens HUD’s discretion in making low-income housing grants and guarantees that future decisions on subsidy awards are made openly rather than by a secret procedure that allowed top HUD aides to reward political favorites.

It also would prevent developers of housing for the poor from getting windfalls from tax credits in addition to rental subsidies, a form of “double-dipping” that was exposed during the congressional investigation.

Other provisions would require appointment of a chief financial officer at HUD, a comptroller to protect agency funds and a new review board to impose sanctions on lenders who violate Federal Housing Administration rules.

Rep. Henry B. Gonzalez (D-Tex.), chairman of the House Banking Committee, was the chief sponsor of the bill in the House, while Sen. Alan Cranston (D-Calif.) pushed it through the Senate.

Many other non-controversial bills received final approval in the pre-holiday adjournment rush of the 101st Congress, including a measure to designate Dec. 10 through 16 as “National Drunk and Drugged Driving Awareness Week.” The resolution was sent to Bush for his signature.

Rep. Norman Y. Mineta (D-San Jose), sponsor of the resolution, said its passage on Thanksgiving eve was timely.

“As we enter the holiday season, we must all remember that drunk and drugged driving is responsible for 20,000 fatalities annually,” Mineta said. “Everyone must work to reduce this carnage.”