Connie Mack: “My second concern is about the Department's capacity to restructure up to 50,000 units in the demonstration program.…”

“My second concern is about the Department's capacity to restructure up to 50,000 units in the demonstration program. Numerous studies by the HUD IG and GAO and statements by HUD officials themselves have indicated that there are serious capacity problems in the multifamily housing area at HUD. HUD's response to these problems is to liquidate the inventory through sales of HUD-held and guaranteed mortgages to Wall Street investors. S. 2042, however, would protect the Federal Government's affordable housing investment by transferring the portfolio management responsibilities to publicly accountable entities such as State and local housing finance agencies. How does the demonstration program address these issues?”