Report No. 97-I-224

Title: Special Report on the Cost of Construction of Employee Housing at
Grand Canyon and Yosemite National Parks, National Park Service

Date: December 6, 1996


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United States Department of the Interior
OFFICE OF INSPECTOR GENERAL
Washington, D.C. 20240

MEMORANDUM

TO: The Secretary

FROM: Wilma A. Lewis
Inspector General

SUBJECT SUMMARY: Final Special Report for Your Information - "Cost of
Construction of Employee Housing at Grand Canyon
and Yosemite National Parks, National Park Service"
(No. 97-I-224)

Attached for your information is a copy of the subject final special report. At the
request of a member of the Congress, we reviewed the costs associated with
constructing employee housing at Grand Canyon and Yosemite National Parks. The
objective of the audit was to determine the costs of constructing housing at the two
parks and to determine whether the National Park Service constructed "employee
only" recreation areas on public lands in El Portal, California.
Based on our review of Park Service records, we determined that the total cost of
planning, designing, developing infrastructure for, and constructing 23 single-family
houses at Grand Canyon National Park and 34 apartments and 19 single-family
houses at Yosemite National Park was $29.2 million. On a per house basis, the
average costs of a single-family home were $390,000 and $584,000 at Grand Canyon
and Yosemite National Parks, respectively. In contrast, we estimated the cost of
private sector housing construction for a single-family house to range from $115,000
to $232,000 near Grand Canyon National Park and from $102,000 to $250,000 near
Yosemite National Park. Further, realtors near the parks stated that 1,200 to 5,000
square-foot homes near Grand Canyon National Park were selling for about $125,000
to $289,000 and that sales prices near Yosemite ranged from about $80,000 to
$300,000 for 1,200 to 2,400 square-foot homes.
We also reported that Park Service officials had testified before the Subcommittee
on Interior and Related Agencies, Committee on Appropriations, House of
Representatives, regarding the "high" costs associated with constructing housing at
Grand Canyon and Yosemite National Parks. According to Park Service testimony,
the high housing costs were related to the environmental and "quality" aspects
designed into the homes. Our review confirmed that the designs and materials used
to achieve these aspects, such as energy efficiency, low maintenance, and durability,
contributed to the higher costs of construction.


Furthermore, we found that the recreation facilities being constructed on public
lands in El Portal will not be designated for exclusive use by Park Service employees
but will be available for use by the general public, the local community, and area
schools.

We recommended that the Park Service review its strategy for meeting its housing
needs, particularly at these two parks, to ensure that housing is designed and
constructed in a cost-effective manner. Although the Park Service concurred with
the recommendation, we believe that it should have specifically described actions it
would take to reduce or contain housing construction costs rather than focusing on
attempting to justify the high costs it incurred for housing construction at the two
parks. As such, we requested that the Park Service reconsider its response to the
recommendation.

If you have any questions concerning this matter, please contact me at (202) 208-
5745 or Mr. Robert J. Williams, Acting Assistant Inspector General for Audits, at
(202) 208-4252.