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B-284226.2 1 (2000-08-17)

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United States General Accounting Office                      Office of the General Counsel
Washington, DC 20548



         B-284226.2



         August 17, 2000

         The Honorable Susan Gaffney
         Inspector General
         Department of Housing and
         Urban Development

         Subject: Application of Anti-Lobbving Restrictions to HUD Report Losing Ground

         Dear Ms. Gaffney:

         By letter of March 27, 2000, you requested that we reconsider our informal views
         which we provided to the staff of Congressman F. James Sensenbrenner, Jr.,
         regarding the Department of Housing and Urban Development's (HUD) publication of
         Losing Ground: The Impact of Proposed HUD Budget Cuts on America's
         Communities. The Congressman was concerned that HUD Secretary Andrew Cuomo
         had, through the issuance of the Losing Ground report, violated anti-lobbying laws.
         After careful consideration of the analysis contained in your letter, we continue to
         believe that neither the Losing Ground report itself, nor the Secretary in issuing it,
         violated applic able anti-lobbying laws.

         BACKGROUND

         The Losing Ground report, dated August 1999, criticized the deep cuts in HUD
         programs proposed by the House Appropriations Committee in the fiscal year 2000
         HUD appropriations bill. The report stated that the cuts would have a devastating
         impact on families and communities nationwide and purported to detail the
         consequences on HUD's programs if the funding cuts were enacted. Two appendices
         to the report gave further details on the funding reductions, as well as the
         consequences of the reductions that, according to HUD, would have been visited on
         communities nationwide. Accompanying the report was a letter dated September 3,
         1999, with the salutation Dear Colleague, and signed by Secretary Cuomo. In the
         letter, the Secretary noted that the Losing Ground report provided important and
         timely information about the impact of the reductions to HUD's programs that are
         currently being proposed in the House of Representatives.