Summary

In response to a request resulting from tenant complaints, a review was performed of problems at an apartment project and the adequacy of the performance of the Department of Housing and Urban Development (HUD), the insuring agency.

Problems such as frozen water pipes, uneven heating, and poor drainage had gone uncorrected through two winters. Most of these problems were caused by a combination of faulty design and construction, with the faulty construction frequently resulting because approved plans and specifications were not adhered to by the contractor. Reviews and inspections performed by HUD before and during construction were inadequate to disclose deficiencies, and when deficiencies were identified, responsibility was not established by the insuring office.