Delays in Federal Housing Administration Catalyst’s Development

In February 2021, the Office of the Chief Information Officer (OCIO) identified funding risks with the development contract under which HUD contracted for Federal Housing Administration (FHA) Catalyst’s development. In response, HUD officials took steps to slow FHA Catalyst spending on the contract while awaiting approval for additional contract funds. Despite efforts to slow project spending, it was not enough to prevent funding shortfalls before the contract’s base year end. Poor contract oversight enabled OCIO to exhaust funds before the end of the base year, which stopped work on FHA Catalyst. Additionally, several issues also hindered FHA Catalyst development activities. As of August 2021, HUD had resumed FHA Catalyst development work at limited capacity. As of October 2021, HUD estimated that it would complete FHA Catalyst development in March 2025.