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HUD Strategic Plan

FY 2010–2015

U.S. Department of Housing and Urban Development

May 2010
ii FY 2010–2015 HUD Strategic Plan

We deliver the FY 2010–2015 HUD Strategic Plan at a defining moment for our country—and for our agency as well—

as the scope of the challenges facing the nation in housing 

and community development has never been greater. For a 

half century, housing policy debates have often been about 

homeownership versus rental, public versus private, supply 

versus demand, and people versus place. This economic and 

housing crisis has brought these abstract arguments into 

sharp focus. For every family and neighborhood in America, 

it has revealed the dramatic gap between wages and housing 

prices, which easy credit through so-called “financial innovation” failed to close. It pulled back the curtain on the unsustainable nature of our growth—the great distances too many 

families have to travel simply to get to work or school—and 

Message From the Secretary

rolled back nearly two decades of gains in urban cores of older industrial cities. In the process, 

this crisis has illustrated the clear need for a federal partner—albeit one that recognizes one size 

does not fit all when it comes to community development, whether it is our central cities, suburbs, 

or rural areas.

This plan will take us through HUD’s 50th anniversary in 2015. As we approach this historic 

milestone, our charge today must be to learn from the difficult lessons of this crisis and reinvigorate our mission to create strong, sustainable, inclusive communities and quality, affordable homes for 

all. To achieve this reinvigorated mission requires HUD to transform itself into the more nimble, 

responsive partner communities need to remove barriers, leverage public and private resources, 

and nurture local innovation.

In 2009, this work began in earnest. As the Obama Administration tackled the housing crisis 

on multiple fronts, HUD played a central role in helping struggling homeowners avoid foreclosure—stabilizing neighborhoods hit hard by foreclosures while ensuring an increased flow of 

capital to support affordable housing and jobs. Through the Federal Housing Administration 

(FHA), and in partnership with the White House, the Department of the Treasury, and federal 

regulatory agencies, HUD helped more than one million families avoid foreclosure and the four 

million more who refinanced into stable, lower cost mortgages. Fulfilling the historic role President Roosevelt charged it with during the Great Depression, FHA—with the assistance of the 

Government National Mortgage Association—helped stabilize the lending and mortgage-backed 

securities markets at a time when credit had all but dried up, supporting our housing recovery 

and restoring homeowner equity while also protecting the taxpayer through a series of fundamental changes to risk management.

HUD was also a key player in implementing the American Recovery and Reinvestment Act of 

2009, which not only pulled our economy back from the brink—creating or saving approximately 2 million jobs in its first year—but also provided a platform for a new way of doing 

business. Over the course of 2009, HUD directed nearly $14 billion toward rebuilding public 

housing; greening existing and new affordable housing; creating new avenues for interagency 

collaboration between HUD and the Departments of Energy, Labor, and Transportation; and 

shifting the federal focus on homelessness in urban and rural communities toward prevention 

at the local level. Through these efforts, by allocating 75 percent of Recovery funds within 8 days, 

by committing 98 percent of funds to specific projects within a year, and by tracking every 

Recovery Act dollar through the enhanced use of technology and other performance measures, 
Message From the Secretary iii

HUD acted, with unprecedented levels of transparency, accountability, and speed, to create jobs 

and rebuild the economy.

Our work this first year enabled us to stabilize the housing market and the broader economy. 

As we continue this work, now is the time to look toward more fundamental reforms to prevent 

a crisis of this magnitude from ever happening again. This requires a comprehensive, balanced 

national housing policy that supports homeownership, but that also provides affordable rental 

housing and brings public housing and other forms of assisted housing into the market-based 

economy of the 21st century. It requires providing real opportunity for people living in neighborhoods of concentrated poverty and segregation and offering choices that help families live 

closer to jobs and schools.

We must embrace changes we could not have imagined when HUD was created a half-century 

ago—to work with new partners in local government, housing finance, and community development; to recognize the new geography of America’s increasingly metropolitan economy and 

address the increasingly common problems cities, suburbs, and rural areas share; and to adopt 

new business models that bring accountability to the public sector and leverage the power of 

technology to fundamentally change the way government works.

These priorities reflect a core belief: when you choose a home, you do not just choose a home—

you also choose transportation to work, schools for your children, and public safety. You choose 

a community—and the choices available in that community.

This Strategic Plan sets forth a roadmap to achieve these ambitions, with specific, measurable 

goals to which we will be held accountable. It charts the actions needed to transform HUD—

an agency uniquely situated to help the American people—into an organization that reflects 

the progress and advances of the last half century. And most importantly of all, it provides 

the direction and focus we need to seize this unique moment in our history to create jobs and 

rebuild the economy resulting in the strong, sustainable, inclusive communities America needs 

to succeed in the 21st century.

Shaun Donovan
iv FY 2010–2015 HUD Strategic Plan

Contents

Message From the Secretary ....................................................................................................ii

Section 1: Introduction ............................................................................................................1

Context: Responding to a New Housing Landscape ............................................................1

New Realities: Changes in HUD’s First 50 Years..................................................................2

Purpose of the Plan: Defining a New HUD for the Next 50 Years........................................3

Mission and Vision Statements: HUD’s Commitment to America ........................................4

Strategic Goals Overview: Realizing Our Mission in the 21st Century .................................5

Measures of Success: HUD’s Impact on People and Places...................................................8

Section 2: Strategic Goals ......................................................................................................10

How To Read This Document: A Guide to the FY 2010–2015 Strategic Goals ..................10

Goal 1: Strengthen the Nation’s Housing Market To Bolster the Economy and Protect 

Consumers........................................................................................................................12

Goal 2: Meet the Need for Quality Affordable Rental Homes.............................................18

Goal 3: Utilize Housing as a Platform for Improving Quality of Life ..................................24

Goal 4: Build Inclusive and Sustainable Communities Free From Discrimination .............31

Goal 5: Transform the Way HUD Does Business...............................................................40

Section 3: Implementation.....................................................................................................46

Putting the Plan Into Action: Setting Targets and Tracking Performance ...........................46

Delivering Solutions: Implementing HUD Programs .........................................................46

Investing in Our Priorities: Aligning Resources to Our Goals ............................................51

Appendixes .............................................................................................................................55

Appendix A: Development of the FY 2010–2015 HUD Strategic Plan..................................55

Appendix B. Outcome Measure Descriptions and Additional Implementation Measures ....56

Appendix C. External Factors ...........................................................................................64

Appendix D. History of HUD............................................................................................67

Appendix E. HUD Organizational Chart ...........................................................................70

Appendix F. Implementing HUD Programs Detail ............................................................71

Appendix G. Evaluating Our Success................................................................................73

Appendix H. Notes ...........................................................................................................75
Introduction 1

Section 1. Introduction

Context: Responding to a New Housing Landscape

As this Strategic Plan goes to press, the United States is recovering from a tumultuous period in 

our housing markets, which has sent millions of homes into foreclosure, torn many neighborhoods apart, and caused the loss of millions of jobs. For families, the housing crisis has eroded 

the foundation upon which Americans build their lives, raise their children, and plan for their 

future—undermining an essential source of stability and the building block of “home,” on which 

we put down roots. The effect of the crisis on neighborhoods has been no less dramatic, as 

the challenges faced by the nation’s industrial centers, which long predated the current recession, have been deepened by foreclosures, and communities across America—especially many 

suburbs—have seen some of the sharpest declines in home prices, shattering lives and undermining America’s economic growth.

Less than 2 years after the near collapse of America’s financial system, signs suggest our nation 

is on the road to recovery. As a result of the comprehensive approach taken by the Obama 

Administration, at the end of 2009, quarterly economic growth increased at the fastest pace in 

6 years. Meanwhile, house prices have started to rise, homeowner equity is growing again, and 

our economy has begun to add jobs again.

It is increasingly clear, however, that the current crisis was literally decades in the making. For 

the past decade housing policy has focused almost solely on homeownership at the expense of 

affordable rental housing. For a half century, housing finance drove the development of homes 

in the least sustainable places—disconnected from jobs, transportation, and schools. Combined 

with rental assistance programs that built, financed, and managed housing in a parallel universe 

from private housing, discriminatory patterns of development trapped millions of families in 

neighborhoods of concentrated poverty, segregation, and limited opportunity.
2 FY 2010–2015 HUD Strategic Plan

At the same time, however, a new housing landscape has emerged in the half century since HUD 

was created. New actors outside of government drive housing finance. Advances in technology 

have changed every aspect of our lives, including how government works. Climate change has 

emerged as a serious threat to our economy and our planet alike. Through all these changes, and 

after a prolonged period of diminished federal investment, Americans are looking to the federal 

government to catalyze change. 

New Realities: 

Changes in HUD’s First 50 Years

The New Partners: Private and “Third” Sector Actors in Housing Policy

Fifty years ago, affordable housing was largely built, owned, and managed by government. 

America’s cities were in crisis. Then skepticism about Great Society programs took hold and the 

federal role began to diminish. Yet the failure of the federal government to act did not doom 

America’s cities to failure. State and local governments became major drivers of the production 

and preservation of affordable housing, a third sector of nonprofit community development 

corporations (CDCs) started to help solve problems at the local level and, with the creation of 

Section 8 in the 1970s and the passage of the Low-Income Housing Tax Credit in 1986, the 

private sector took a lead role in affordable housing production.

A half century later, problemsolving largely occurs at the local level—across political party lines, 

inside government, and outside of government. These new partners bring a new discipline to the 

housing industry, changing the way affordable housing is financed and how properties are managed. Our challenge now is to follow their lead, to restore the federal leadership that will take 

these innovations to scale, and to collaborate with these new partners that have become key civic 

institutions in neighborhoods across the country.

The New Geography: The Changing Nature of America’s Cities and Broader 

Metropolitan Areas

Fifty years ago, cities were seen as the “problem.” They were losing population and were “hollowed out” by federal transportation policy that shifted investment away from the urban core 

and by a housing system that promoted single-family, large-lot homes to the exclusion of affordable rental housing or access to job centers.
Introduction 3

A half century later, cities are growing again and increasingly are seen as part of the solution to 

our housing challenges and attractive places to live. The distinctions between cities and suburbs 

are blurring, because challenges we once associated with cities—homelessness, joblessness, 

and traffic congestion—have become “suburbanized.” In many ways, the most important frame 

for place today is the metropolitan area with our central cities, suburbs, and surrounding rural 

areas becoming hubs of production and consumption, generating 90 cents of every dollar in the 

American economy, and housing more than 80 percent of America’s population. With all these 

changes, today, we understand the effect that distended development patterns have had on environmental sustainability and on social and economic opportunity.

The New Business Model: Performance-Based Management and EvidenceBased Policymaking Changing the Way Government Works

Fifty years ago, bureaucracies such as HUD had a “one size fits all” approach to governing. The 

federal government did not make decisions collaboratively but in silos and through a top-down 

hierarchy that did not leverage local partnerships. Centralized controls and ubiquitous rules 

dominated. Performance was measured less by results than by dollars spent and adherence to 

rules. Quality was defined as compliance, not by customer satisfaction.

A half century later, Americans’ attitudes about the role of government have evolved, and the 

emergence of technology has changed every facet of our lives—including government. Communities use data to enhance accountability in the public sector and craft policy on issues such as 

chronic homelessness. Today, we recognize that different communities and regions have vastly 

different housing needs, and we see the interactions more clearly between housing and health, 

education, and energy use. Such changes underscore the need to fundamentally change the 

way government works by creating team-oriented, customer-centered organizations that reward 

results and nurture local innovation. 

Each of these themes reflects how the housing landscape has changed over the last half century 

since the agency was created in 1965. Our goals attempt to learn from these changes—to engage 

new local and federal partners, adjust our policies and programs to address common problems 

across a broader metropolitan geography, and to do business differently. At the end of each goal 

description you will see a section that illustrates some examples of how HUD is responding to 

each of these 21st century challenges. Each of these developments requires federal agencies like 

HUD to not only catch up, but also to scale up local innovations, lead the charge, and set the 

pace for change. Ensuring that HUD can play this urgent role in our communities for the years 

to come is the objective of the FY 2010–2015 HUD Strategic Plan.

Purpose of the Plan: 

Defining a New HUD for the Next 50 Years

This document presents the U.S. Department of Housing and Urban Development’s (HUD’s) 

Strategic Plan for fiscal years 2010 through 2015. The plan includes a reinvigorated mission 

statement that reflects a renewed focus on people and places, as well as a vision statement that 

paints a picture of what the Department will be to our residents, our partners, our employees, 

and the American people as a whole. To provide a framework for the delivery of this new mission and vision, the plan also includes a set of strategic goals and strategies, and performance 

measures. Simply put, this plan serves as a guide for what the Department will achieve, how we 

will achieve it, and how we will measure our success. 
4 FY 2010–2015 HUD Strategic Plan

Mission and Vision Statements: 

HUD’s Commitment to America

Our new mission statement returns us to the Housing Act of 1949 and the directive to create 

“a decent home and suitable living environment for every American family.” Building on this 

founding mandate, we will continue to develop and preserve quality, healthy, and affordable 

homes, with a clear focus on the need for decisions about owning or renting that are financially 

appropriate to the individual or family. We will also reinvigorate our commitment to community 

development, recognizing the importance of place in shaping the lives of the American people. 

This renewed commitment includes a focus on the physical, social, economic, and environmental sustainability of our communities. Finally, we will undertake this housing and community 

development mission with an eye toward ensuring choice and opportunity for all people pursuing the promise of a better life. We believe that strong communities are those where equality, 

inclusivity, and openness are cultivated and protected.

Our vision is one in which strong housing and communities—the core focus of our mission—

result in a better quality of life and the fulfillment of the promise that America holds, for all 

people. The possibilities offered by the American experience mean different things to different 

people. No longer does the “American Dream” refer to a singular vision of success, such as owning a home. HUD’s vision is to embrace the myriad views of what the American Dream represents today. It reflects a renewed commitment to ensuring everyone in America can have the 

opportunities and choices to turn their dreams as individuals into reality. 

To complement our vision for how HUD’s mission will affect America’s future for people and 

places, we therefore offer a pledge to the residents and partners living and working in the communities we serve, to the employees who carry out the Department’s mission, and to the public 

who have entrusted us with great responsibilities. These commitments to our key stakeholders 

complete the organizational vision for what a successful, high-performing HUD will look like in 

the future.

For our residents, we are committed to providing access to the opportunities that result from 

living in homes and neighborhoods that are safe, healthy, affordable, and inclusive. Residents are 

the direct beneficiaries of the programs and services that support HUD’s mission and, as such, 

appear first in our stakeholder list. To achieve this vision for residents is to meet the most immediate mission of our agency.

Of course, we cannot do this alone. To the contrary, success can only be achieved through 

strengthened partnerships among federal, state, and local entities across the public, nonprofit, 

and private sectors. These relationships must be based on mutual respect and recognition of the 

skills, knowledge, and perspective that each brings to the table. From this foundation, we envision a relationship that fosters collaboration and innovation in meeting the housing and community development needs of this country. For HUD, this means striking the right balance between 

our role as a policymaker and our roles as funder, capacity builder, and regulator. In short, we 

must know when and how to engage, and when to get out of the way.

Success in delivering the first two elements of the vision is highly dependent on our greatest asset: HUD employees. Despite a firm belief in the mission of the Department, employee feedback 

has put the agency at the low end of the rankings of Best Places to Work in the Federal Government. This is unacceptable. Building on the clear commitment to mission that our employees 

feel, we will invest in and encourage our employees to create a high-performing organization 

that is customer centered and outcome focused. To illustrate the importance of meeting this 

pledge to our employees, we have included a strategic goal in this plan that will guide our efforts 

in this area.

HUD’s Vision

Our vision is to improve 

lives and strengthen 

communities to deliver 

on America’s dreams. 

Therefore, we pledge—

For Our Residents:

We will improve lives 

by creating affordable 

homes in safe, healthy 

communities of opportunity, 

and by protecting the rights 

and affirming the values of a 

diverse society.

For Our Partners:

We will be a flexible, 

reliable problemsolver and 

source of innovation.

For Our Employees:

We will be a great place 

to work, where employees 

are valued, mission driven, 

results oriented, innovative, 

and collaborative.

For the Public:

We will be a good neighbor, 

building inclusive and 

sustainable communities 

that create value and 

investing public money 

responsibly to deliver 

results that matter.

HUD’s Mission

Create strong, sustainable, 

inclusive communities 

and quality, affordable 

homes for all.
Introduction 5

Ultimately, HUD’s success will be measured by our ability to affect communities in ways that 

reach past the direct beneficiaries of our programs to touch all of those people across the 

country—creating lasting change in our communities. This pledge is best embodied in a new 

commitment to creating sustainable, inclusive communities and is founded on the idea that 

everyone benefits, from both an economic and health perspective, when cities and counties 

coordinate their investments in housing, transportation, and energy efficiency. In addition to being a good neighbor, we will operate in an open and transparent manner, with a commitment to 

maximizing the resources we have at our disposal by reducing waste, fraud, and abuse, as well 

as increasing the effectiveness and efficiency of our program delivery. We will undertake all of 

our work with the utmost respect for the trust and responsibility that the American taxpayer has 

given us to spend resources wisely and responsibly to achieve our mission.

Strategic Goals Overview: 

Realizing Our Mission in the 21st Century

To tackle the economic, financial, and community development issues of the current environment and realize our mission to create strong, sustainable, inclusive communities and quality, affordable homes for all, we must develop goals to make these achievements possible. As such, this 

Strategic Plan articulates five overarching goals that will guide the transformation of HUD into a 

21st century organization capable of implementing place-based policies; overseeing a balanced, 

comprehensive national housing policy that supports sustainable homeownership and affordable 

rental homes alike; and building the strong, inclusive communities necessary to make home the 

foundation of stability and opportunity.

First, as HUD works to rebuild our housing market and our economy to ensure long-term stability and success, our first priority is to Strengthen the Housing Market To Bolster the Economy and Protect Consumers—to ensure that never again will a housing “bubble” cause our 

economy to collapse. To restore stability to the market, we will reduce the foreclosure rate and, 

in partnership with the Department of the Treasury, assist 3 million homeowners who are at risk 

of losing their homes due to foreclosure by the end of FY 2011. We will increase FHA capital 

reserves to above 2 percent and reform the government-sponsored enterprises to ensure liquidity 
6 FY 2010–2015 HUD Strategic Plan

in the mortgage markets while protecting the taxpayer. And as we stabilize neighborhoods by 

helping communities purchase abandoned and vacant properties, we will target capacity-building assistance to cities whose economic troubles predate the current housing crisis.

Second, we need to Meet the Need for Quality Affordable Rental Homes. Our housing 

markets will return to stability only if we balance support for sustainable homeownership with 

affordable rental homes. America needs millions of new housing units over the next several 

years, and HUD will directly contribute to the production of these units of rental housing. Of 

course, it is not just about building new rental homes—but also preserving their affordability, 

quality, accessibility, and energy efficiency. To better serve the millions of Americans who need 

help putting a roof over their families’ heads, HUD must transform its rental assistance programs 

into the 21st century with a new business model that creates more flexibility to provide greater 

choice for renters and attracts private capital to increase the number of affordable rental homes 

in communities with the greatest unmet needs. We will also encourage housing authorities and 

owners to make their properties greener, healthier, and more energy efficient.

Third, we will Utilize Housing as a Platform for Improving Quality of Life. Too often during 

the housing crisis, housing has not been the source of security and stability it has been historically, but worry and uncertainty, as families face loss of equity, foreclosure, escalating rents, 

and even homelessness. By contrast, stable housing, made possible through HUD assistance, 

provides an ideal platform to deliver a wide variety of health and social services to improve the 

education, health, economic security, and safety of its residents. As we have seen with successful efforts to reduce chronic homelessness in recent years and Section 3 programs to provide 

job training opportunities for public housing residents and low-income families, housing is a 

place to anchor services and improve outcomes—ultimately saving money for the taxpayer. To 

make federally subsidized housing a catalyst for place-based investments, HUD will forge new 

partnerships inside and outside of government to bring broadband to public and assisted housing, to end homelessness, and to target resources that help families escape poverty and reach 

self-sufficiency.
Introduction 7

Fourth, the Strategic Plan charts a path for HUD to Build Inclusive and Sustainable Communities Free From Discrimination. Many of the neighborhoods hit hardest by the housing 

and economic crisis—those with the highest rates of foreclosure and job loss—are among the 

least sustainable—with limited access to economic opportunity, the longest commuting times to 

their jobs, the most homes that pose health risks, and the poorest quality schools. With housing finance having driven construction in the least sustainable places, buildings now contribute 

40 percent of our nation’s carbon emissions, congestion on our roads costs five times as much 

wasted fuel and time as it did 25 years ago, and the average working family spends a combined 

57 percent of their income on housing and transportation costs combined. With our Choice 

Neighborhoods initiative and a new Office of Sustainable Housing and Communities linking 

housing to schools, jobs, and affordable transportation, HUD is recognizing, as its charter did 

nearly five decades ago, that improving the quality of neighborhoods, cities, and metropolitan 

areas is essential to a successful housing policy. As we work to revitalize the Gulf Coast and 

create disaster-resilient communities, HUD will also provide “gap financing” through a Catalytic 

Investment Fund for innovative, high-impact economic development projects that create jobs 

in communities with longstanding economic challenges. In addition, we will take energy- and 

transportation-efficient mortgage products to scale that lower the barriers to consumers who 

want to upgrade their home’s energy efficiency or buy homes near jobs, transportation, and 

schools. By providing the clearer expectations, additional guidance, and increased support to 

our cities and suburbs, we will ensure communities meet their obligations to affirmatively further fair housing and uphold America’s values.

Lastly, the time has come to Transform the Way HUD Does Business. In 2009, as demonstrated by the effective implementation of Recovery Act funding and through successful emergency efforts like the DHAP-Katrina program that brought together nearly 350 public housing 

agencies from all over the country to provide temporary housing to more than 30,000 families 

displaced from their homes, HUD proved itself capable of producing significant results under 

extraordinary circumstances. Despite these achievements, an experienced leadership team, and 

committed staff, HUD faces serious operational and cultural challenges that limit the agency’s 

effectiveness and impact. From a rigid, hierarchical, and bureaucratic organizational structure to 

rules that constrain staff and grantees, the result is an agency that focuses all too often on programs and policies rather than on the people and places that rely on them. As difficult as these 

challenges are—and as ingrained in the HUD culture as they have become over the past four 

decades—the solutions are clear. To transform HUD into the nimble, responsive partner our 

challenges require, HUD will build capacity within the agency; improve performance management and accountability; decentralize decisionmaking to empower staff; and simplify programs, 

rules, and regulations. By fostering a culture and organization that put a premium on innovation 

and results, HUD intends to be a model for federal agency reform in the 21st century.

Goal 5 sets the foundation to execute this Strategic Plan. For full details on the process to develop the mission, vision, goals, and subgoals, refer to Appendix A.
8 FY 2010–2015 HUD Strategic Plan

Measures of Success:

HUD’s Impact on People and Places

For each goal, we have identified measures of success that are aspirational and best capture our 

overall progress and impact. In some cases we have defined 2-year targets, because these initiatives fall under one of our High Priority Performance Goals, a set of goals we have committed 

to achieving by the end of FY 2011. In other cases, we are in the process of defining the target 

outcomes we wish to achieve and will update this Strategic Plan as these targets are established.

With outcome targets in place, HUD will develop an annual Management Action Plan (MAP), which 

will replace the agency’s current management plan and become the tool by which we track and monitor the activities that support the outcome goals in the Strategic Plan and Annual Performance Plans. 

For each outcome goal, contributing programs will identify both supporting performance measures 

and activity milestones, with corresponding targets and completion dates. Having identified these 

measures and milestones, HUD will track performance by HUD organizational unit, customer, or place.

Through the implementation of these five goals, HUD commits to achieving 22 outcome measures 

outlined in this plan. The following subset of these 22 outcome measures reflects HUD’s 

immediate priorities:

y Promoting Sustainable Homeownership

▪ Assisting 3 million homeowners who are at risk of losing their homes due to foreclosure by 

the end of FY 2011.

▪ Enhancing government’s ability to stabilize the housing market by restoring FHA’s excess 

capital reserve ratio to the congressionally mandated 2-percent level by FY 2014.

y Improving Outcomes for the Poorest Families

▪ Reducing the number of households with worst case housing needs.

▪ Increasing the proportion of HUD-assisted families in low-poverty and racially diverse 

communities.

y Ending Homelessness

▪ Reducing the number of homeless families.

▪ Reducing the number of chronically homeless individuals.

▪ Reducing the number of homeless veterans to 59,000 by June 2012 (jointly with the 

Department of Veterans Affairs).

y Catalyzing Energy- and Transportation-Efficient Homes

▪ Completing cost-effective energy and green retrofits of 159,000 public, assisted, and other 

HUD-supported affordable homes by the end of FY 2011.

▪ Reducing the share of household income spent on the combined costs of housing and 

transportation in communities that receive assistance from the Office of Sustainable 

Housing and Communities.

y Revitalizing the Gulf Coast

▪ Increasing the percentage of Gulf Coast homes in Louisiana, Mississippi, and Texas that 

have been reoccupied or converted to another viable purpose after being severely impacted 

by Hurricanes Katrina and Rita in 2005.

y Transforming HUD

▪ Making HUD the “Most Improved Large Agency” in the Best Places to Work in the Federal 

Government report.

▪ Increasing the percentage of HUD partners who are “satisfied” or “very satisfied” with “Timeliness 

of Decision-Making” as measured in the survey of Partner Satisfaction with HUD’s Performance.

The following sections provide an overview of each goal and subgoal and the strategies and 

measures we will pursue.
Introduction 9
10 FY 2010–2015 HUD Strategic Plan

Section 2. Strategic Goals 

How To Read This Document: 

A Guide to the FY 2010–2015 Strategic Goals

Section 2 outlines HUD’s five strategic goals and the subgoals, strategies, and measures that 

support their realization.

Problem Statement: Describes the scale and elements of the problem.

Goal: Describes the broad outcomes HUD aims to achieve in support of our mission.

Measures of Success: Describe the indicators HUD will use to determine whether or not 

we are successful in reaching our goals.

Subgoals: Describe the more specific outcomes HUD aims to achieve in support of the 

broad outcome goals.

Strategies: Describe the approach for how HUD will achieve each subgoal.

Examples of Themes: Describe examples of how strategies and programs within each goal 

reflect new themes—new partners, new geography, and new business model—that have 

evolved since HUD’s founding.

Signature Initiatives: Describe the high-priority program, policy, or project that epitomizes 

our efforts to achieve a goal.
Strategic Goals 11

HUD’s FY 2010–2015 Strategic Framework

Our Mission: Create Strong, Sustainable, Inclusive Communities and Quality, Affordable Homes for All

Goal 5. Transform the Way HUD Does Business

Subgoals

5A. Build capacity—create a flexible and high-performing learning organization with a motivated, skilled workforce 

5B. Focus on results—create an empowered organization that is customer centered, place based, collaborative, and 

responsive to employee and stakeholder feedback 

5C. Bureaucracy busting—create flexible, modern rules and systems that promote responsiveness, openness, and 

transparency

5D. Culture change—create a healthy, open, flexible work environment that reflects the values of HUD’s mission

Subgoals

1A. Stem the foreclosure 

crisis

2A. End homelessness and 

substantially reduce the 

number of families and 

individuals with severe 

housing needs

3A. Utilize HUD assistance 

to improve educational 

outcomes and early 

learning and development

4A. Catalyze economic 

development and job 

creation, while enhancing 

and preserving 

community assets 

1B. Protect and educate 

consumers when they 

buy, refinance, or rent a 

home

2B. Expand the supply of 

affordable rental homes 

where they are most 

needed

3B. Utilize HUD assistance to 

improve health outcomes 

4B. Promote energy-efficient 

buildings and locationefficient communities 

that are healthy, 

affordable, and diverse

1C. Create financially 

sustainable 

homeownership 

opportunities

2C. Preserve the affordability 

and improve the quality 

of federally assisted and 

private unassisted affordable rental homes 

3C. Utilize HUD assistance 

to increase economic 

security and selfsufficiency

4C. Ensure open, diverse, 

and equitable 

communities

1D. Establish an accountable 

and sustainable housing 

finance system

2D. Expand families’ choices 

of affordable rental homes 

located in a broad range 

of communities

3D. Utilize HUD assistance to 

improve housing stability 

through supportive 

services for vulnerable 

populations, including 

the elderly, people with 

disabilities, homeless 

people, and those 

individuals and families 

at risk of becoming 

homeless

4D. Facilitate disaster 

preparedness, recovery, 

and resiliency 

3E. Utilize HUD assistance to 

improve public safety

4E. Build the capacity of 

local, state, and regional 

public and private 

organizations

Goal 2. Meet the Need 

for Quality Affordable 

Rental Homes

 

Goal 3. Utilize Housing 

as a Platform for 

Improving Quality of Life

 

Goal 4. Build Inclusive 

and Sustainable 

Communities Free From 

Discrimination

 

Goal 1. Strengthen 

the Nation’s Housing 

Market To Bolster the 

Economy and Protect 

Consumers

 
12 FY 2010–2015 HUD Strategic Plan

Goal 1. Strengthen the Nation’s Housing Market To Bolster the 

Economy and Protect Consumers

Problem Statement

The nation’s housing market has gone through a major upheaval over the past several years, with 

rapidly declining property values, lost equity, increased foreclosures, and sharp blows to the 

financial system. 

y Having peaked in August of 2006, house prices fell every month for 30 months, dropping by 

nearly a third in that time.1

y Between late 2006 and mid-2007, the share of loans that were seriously delinquent or 

beginning the foreclosure process reached their highest levels since the Mortgage Bankers 

Association National Delinquency Survey was begun in the late 1970s. Since then, these rates 

continued to rise sharply and, by mid-2008, had more than doubled the previous record 

highs.2

y The 2006 Center for Responsible Lending study, “Unfair Lending: The Effects of Race and 

Ethnicity on the Price of Subprime Mortgages,” found that borrowers of color were about 

30 percent more likely to receive higher cost loans than the similarly risky White borrower, 

after controlling for income, credit score, loan-to-value ratios, and property locations.3

y At the end of the fourth quarter of 2009, more than 11.3 million, or 24 percent, of all 

residential properties with mortgages were “underwater” (the current value of the asset 

is below the amount still owed). Five states—Arizona, California, Florida, Michigan, and 

Nevada—accounted for 55 percent of all “underwater” mortgages.4

y Suspicious Activity Reports from financial institutions to the FBI indicate large increases 

in mortgage fraud reporting, with reports increasing from 35,617 in FY 2006 to 46,717 

in FY 2007 and again to 63,713 in FY 2008.5
Goal 1: Strengthen the Nation’s Housing Market To Bolster the Economy and Protect Consumers 13

To be sure, a home is 

the biggest financial 

investment most families 

will make. But a home 

is so much more than 

a financial investment. 

It’s the foundation upon 

which we build our lives. 

It’s the place where we 

raise our children and 

plan for their future. It’s 

an essential source of a 

family’s stability—the 

building block with which 

we forge neighborhoods, 

put down roots, and 

build the communities 

that are the engines of 

our nation’s economic 

growth.

—HUD Secretary 

Shaun Donovan

December 4, 2009 

Housing Market and Homeownership Goal

The state of the housing market plays a big role in shaping our well-being as individuals, the 

stability of our neighborhoods, and the strength of our national economy. That is why the recent 

downturn of the housing market—with high rates of foreclosure, increases in vacant properties, 

and plummeting home values—has been so devastating for families and communities alike. Although the largest factors contributing to this crisis were market driven—including a slowdown 

in the growth of home prices, increased high-risk subprime and predatory lending, and lax 

underwriting standards—the American people have turned to Congress and the Administration 

for leadership and action in righting our nation’s housing market. HUD plays a critical role in 

this federal recovery strategy—jumpstarting the economy, helping American families keep their 

homes, and stabilizing neighborhoods hard hit by foreclosure.

HUD seeks to build upon this federal leadership and take a comprehensive approach to tackle 

the housing crisis on every front—from stabilizing the market in the short term to preventing 

the crisis from ever happening again. The following subgoals provide a roadmap for accomplishing this goal:

Subgoal 1A: Stem the foreclosure crisis.

Subgoal 1B: Protect and educate consumers when they buy, refinance, or rent a home.

Subgoal 1C: Create financially sustainable homeownership opportunities. 

Subgoal 1D: Establish an accountable and sustainable housing finance system.

Measures of Success

y Reduce the number of completed foreclosures. 

▪ Interim: Assist 3 million homeowners who are at risk of losing their homes due to 

foreclosure: 

x 200,000 homeowners will be assisted through 

Federal Housing Administration (FHA) programs.

x 400,000 homeowners will be assisted through 

third-party lender loss mitigation initiatives 

mandated by FHA but not receiving FHA subsidy.

x 2.4 million homeowners will be assisted through 

joint HUD-Treasury programs.

x For all FHA borrowers who become 30 days late, 

achieve a Consolidated Claim Workout ratio of 75 

percent, and, for those receiving a CCW, achieve a 

6-month re-default rate of 20 percent or less.

y Restore FHA’s excess capital reserve ratio to the 

congressionally mandated 2-percent level by 2014.

y Reduce the average residential vacancy rate in Neighborhood Stabilization Program (NSP) investment areas. 

▪ Interim: Reduce the average residential vacancy rate in 

Neighborhood Stabilization Program Round 2 (NSP2) 

investment areas.
14 FY 2010–2015 HUD Strategic Plan

Subgoal 1A: Stem the foreclosure crisis

Millions of Americans are projected to lose their homes within the next few years, and many 

neighborhoods will continue to suffer as communities experience increasing numbers of residential foreclosures and vacant and abandoned properties. Through grants, technical assistance, 

housing counseling, loan modification programs, and refinancing options, HUD will continue to 

keep families in their homes—assisting homeowners facing foreclosure and mitigating the negative effects of foreclosures on neighborhoods, including declining property values.

Strategies: 

1. Assist homeowners facing foreclosure, using prevention, loan modification, and loan 

refinancing programs.

2. Develop new mortgage products to promote acquisition and reuse of foreclosed properties as 

part of a comprehensive neighborhood stabilization effort.

3. Mitigate the effects of the foreclosure crisis on neighborhoods by assisting communities that 

have high rates of foreclosure.

4. Assist homeowners facing foreclosure with the transition to financially sustainable housing 

options.

Subgoal 1B: Protect and educate consumers when they buy, refinance, 

or rent a home

Consumer protections help prevent borrowers from falling victim to fraudulent loan products 

and aggressive marketing techniques. Such products and techniques helped create the current 

housing crisis. To help future borrowers, HUD will put consumer protections in place by developing safe products, credit terms, and fair and transparent disclosures. Through these efforts, 

HUD will restore integrity and accountability to the residential mortgage loan market.

Strategies: 

1. Increase counseling and the dissemination of financial literacy and homebuying and renting 

information to the public. 

2. Strengthen enforcement of consumer protection regulations and statutes, including fair 

lending laws.

3. Develop and design safe products and credit terms, offer them to consumers, and provide for 

fair and transparent disclosures.
Goal 1: Strengthen the Nation’s Housing Market To Bolster the Economy and Protect Consumers 15

Subgoal 1C: Create financially sustainable homeownership opportunities

Although homeownership historically has been the primary vehicle by which American families 

have built wealth, the recent crisis has shown that homeownership at any cost is fraught with 

peril. What Americans need is sustainable homeownership in which the costs are appropriate for 

a family’s financial situation and the risks associated with homeownership are understood and 

manageable. HUD will take a leadership role in expanding the sustainable homeownership opportunities for Americans across all income, wealth, and racial and ethnic dimensions.

Strategies: 

1. Provide home mortgage insurance products that adhere to safe underwriting standards.

2. Support the construction or rehabilitation of housing units targeted for homeownership by 

facilitating the flow of capital.

3. Ensure equal accessibility and availability of HUD and other homeownership programs across 

racial and income bands.

Subgoal 1D: Establish an accountable and sustainable housing finance 

system

The activities of the federal government are critical to both supporting the housing market in 

the short term and providing access to homeownership opportunities over the long term, while 

minimizing the risk to taxpayers. HUD will actively collaborate with the Department of the 

Treasury and other administration partners to construct a housing finance system that relies on 

an actuarially sound pricing structure, effective lending oversight, and adequate organizational 

capacity to ensure consistent access to, and liquidity and stability in, the capital markets. 

Strategies:

1. Define the roles and functions of housing finance institutions to ensure they serve the public 

good and maintain consistent access to capital for homeownership and rental markets.

2. Ensure HUD is able to anticipate and respond to future economic crises by creating evidencebased analytic tools.

3. Support a steady flow of capital in the home mortgage credit markets by serving as a 

consistent and countercyclical force.

4. Take a lead in removing bad actors in the marketplace through strengthening accountability 

in mortgage underwriting, loan servicing, and securitization.

5. Create a fully operational Office of Risk Management by enhancing forecasting capabilities 

and developing more robust business intelligence and analytical tools.
16 FY 2010–2015 HUD Strategic Plan

New Partners New Geography New Business Model

The current foreclosure 

crisis, preceded by decades of 

unsustainable development 

practices, has left suburban 

communities deeply troubled, 

struggling to address a set of 

urban-looking problems—

including foreclosures, blight, 

and high unemployment. With 

so many suburban governments 

ill-prepared to deal with these 

new challenges, HUD’s 

second round of funding for the 

Neighborhood Stabilization 

Program has encouraged the 

creation of regional consortia

to bring together a wide variety 

of stakeholders, from state 

agencies and local governments to 

hospitals, churches, the business 

community, and community 

development corporations to 

collectively minimize the 

effects of foreclosures across 

all impacted communities in a 

metropolitan area.

Following the significant 

increase in market share that the 

Federal Housing Administration 

(FHA) has experienced during 

the recent housing crisis, as well 

as the period of riskier lending 

that preceded it, HUD is protecting 

taxpayer resources by investing 

in a set of technological and 

organizational changes aimed 

at reducing the risk in the 

FHA portfolio. HUD is using 

$20 million in Transformation 

Initiative Program funds to 

develop robust, state-of-the-art 

systems and data-driven analytic 

tools that detect high-risk loans 

and protect the portfolio from 

borrower default, as well as 

following industry best practices 

and creating an Office of Risk 

Management, to be led by a 

Chief Risk Officer.

In response to the foreclosure 

crisis, HUD’s Neighborhood 

Stabilization Program (NSP)

helps communities acquire, 

rehabilitate, and resell foreclosed 

and abandoned properties more 

quickly to prevent further decline in hard-hit neighborhoods. 

In the first round of NSP, funding grants went directly to state 

and local governments, many of 

which did not have the capacity 

to deal with the crisis on their 

own. Eligible nonprofit organizations had to be funded by state 

and local government grantees 

to purchase properties and carry 

out stabilization programs. In 

recognition of the needed 

capacity and leadership role 

that nonprofits, for-profits, 

and other consortia play, HUD 

changed the eligibility requirements in the second round of 

funding to enable these new 

partners to play a lead role in 

the program.

Examples of Themes for Goal 1
Goal 1: Strengthen the Nation’s Housing Market To Bolster the Economy and Protect Consumers 17

Signature Initiative—

Stabilizing the Federal Housing Administration (FHA)

A strong FHA is critical to the recovery 

of the housing market and our economy 

at large. In recent years, FHA has 

experienced significant swings in its 

market share as it has stepped in to 

provide capital for qualified borrowers 

who would otherwise be shut out of 

the mortgage market. In FY 2009 alone, 

FHA insured approximately 2 million 

mortgages—and accounted for nearly 

50 percent of all loans for first-time 

homebuyers. The severe decline in house 

prices, the sluggish performance of the 

economy, and the abusive behavior of 

some lending partners have resulted in 

increased FHA losses and have driven the 

FHA’s excess capital reserves ratio below 

the congressionally mandated 2-percent 

level. This initiative seeks to rebuild FHA’s 

financial strength while continuing to 

support both the nation’s housing recovery 

and access to underserved communities. 

The initiative to stabilize the Federal 

Housing Administration will—

•	 Promote sustainable homeownership

by increasing FHA’s ability to identify 

and manage risk, hold lenders to the 

highest standards of conduct, and 

recoup losses from lenders who abuse 

the privilege of participating in FHA 

programs.

•	 Implement new mortgage premiums

and underwriting policies that 

properly price risk, create an Office 

of Risk Management with stateof-the-art fraud detection and risk 

management technology, and increase 

FHA lender enforcement through 

regulation and legislative changes.

•	 Restore FHA’s excess capital reserve

ratio to the congressionally mandated 

2-percent level by 2014.
18 FY 2010–2015 HUD Strategic Plan

Goal 2. Meet the Need for Quality Affordable Rental Homes

Problem Statement

Renters in America face serious difficulty finding affordable housing in a broad range of communities because of the dual problems of a shortage of units in some areas and a lack of income to 

afford units in the existing market.

y In 2007, 5.5 million unassisted very low-income renters lived in decent quality housing but 

paid more than 50 percent of their income for rent.6

y In 2007, 430,000 unassisted very low-income renters also lived in severely substandard housing, some of whom also paid more than 50 percent of their income for rent.7

 This problem is 

particularly severe in some areas; for example, roughly 40 percent of housing units in tribal 

areas are overcrowded and/or have serious physical problems.8

y In 2008, 1.59 million people nationwide were homeless.9 Nearly 6 in 10 people who were 

homeless during a January 2008 survey were in emergency shelters or transitional housing 

programs, and about 4 in 10 were unsheltered—on the “street” or in other places not meant 

for human habitation.10

y In 2007, only 44 affordable units were available for every 100 extremely low-income renters 

nationwide.11

y Between 2005 and 2007, the nation experienced a net loss of 1.2 million affordable rental 

units for renters with incomes below 50 percent of area median income (AMI), even though 

there was in an increase in the overall U.S. rental stock of 1.4 million units.12
Goal 2: Meet the Need for Quality Affordable Rental Homes 19

Rental Homes Goal

In an era when more than one-third of all American families rent their homes, we face a housing 

market that does not create and sustain a sufficient supply of affordable rental homes, especially 

for low-income households. In many communities, affordable rental housing does not exist 

without public support. Despite significant improvements in housing quality in recent decades, 

much of our rental housing stock is not energy efficient or even accessible to people with disabilities, and pockets of severely substandard housing remain across the country. Even before 

the recent recession, the number of households with severe housing cost burdens had increased 

substantially since 2000, and homelessness among families with children is a growing problem 

throughout our nation. When it comes to strong, safe, and healthy communities, lower cost 

rental housing is particularly scarce. As the lead federal housing agency, HUD will work with 

its federal, state, local, and private partners to meet affordable rental housing needs for all. The 

following subgoals provide a roadmap for accomplishing this goal:

Subgoal 2A: End homelessness and substantially reduce the number of families and individuals 

with severe housing needs.

Subgoal 2B: Expand the supply of affordable rental homes where they are most needed.

Subgoal 2C: Preserve the affordability and improve the quality of federally assisted and private 

unassisted affordable rental homes.

Subgoal 2D: Expand families’ choices of affordable rental homes located in a broad range of 

communities.

Measures of Success

y Reduce the number of households with worst case 

housing needs. 

y Increase the total number of affordable rental homes 

constructed and rehabilitated in communities with the 

greatest unmet needs. 

▪ Interim: HUD programs will meet more of the 

growing need for affordable rental homes by serving 

5.46 million families by the end of FY 2011, which is 

207,000 more than in FY 2009.

y Reduce homelessness (cross-cutting measure for Goals 

2 and 3).

▪ Reduce the number of homeless families.

▪ Reduce the number of chronically homeless individuals.

▪ Reduce the number of homeless veterans to 59,000 by 

June 2012 (jointly with the Department of Veterans 

Affairs).

y Improve the quality of housing and available community 

opportunities reported by HUD residents (cross-cutting 

measure for Goals 2, 3, and 4).

y Increase the proportion of HUD-assisted families in lowpoverty and racially diverse communities (cross-cutting 

measure for Goals 2 and 4).

Homeownership is 

incredibly important. But 

if this crisis has taught 

us anything, it’s that it is 

long past time we had 

a...balanced, comprehensive national housing 

policy—that supports 

homeownership, but 

also provides affordable 

rental opportunities...so 

families can make good, 

responsible choices.

—HUD Secretary 

Shaun Donovan

October 22, 2009
20 FY 2010–2015 HUD Strategic Plan

Subgoal 2A: End homelessness and substantially reduce the number of 

families and individuals with severe housing needs

The current administration strongly believes that, in addition to the moral imperative to end the 

human suffering caused by homelessness, there are compelling economic reasons for investing 

in efforts to eradicate this complex social problem. If individuals and families that are currently 

cycling through expensive institutions can be targeted for appropriate housing and services, 

there can be significant cost savings, according to recent studies. To achieve this goal, HUD will 

partner with local, state, and federal organizations, including the U.S. Interagency Council on 

Homelessness, to deploy evidence-based interventions, such as supportive housing, housing 

first, homelessness prevention, and rapid rehousing, to more effectively and efficiently use the 

nation’s limited resources to bring an end to homelessness.

Strategies: 

1. Provide additional individuals and families with rental housing subsidies.

2. Increase service-enriched housing.

3. Work with state and local governments to expand rental assistance and prevent homelessness. 

4. Improve access to HUD-funded housing assistance by eliminating administrative barriers and 

encouraging prioritization of households most at risk for homelessness.

Subgoal 2B: Expand the supply of affordable rental homes where they are 

most needed

The nation needs an increased supply of affordable rental homes in safe, mixed-income communities that provide access to jobs, good schools, transportation, high-quality services, and, most 

importantly, economic self-sufficiency. HUD will work to expand the supply of affordable rental 

housing and the capital needed to increase the supply, while sharpening our ability to target the 

needs of individuals and neighborhoods. The Department will also improve the effectiveness 

of tools for creating supply and streamline policies and programs to increase the efficiency of 

program practices. 

Strategies: 

1. Support the construction, rehabilitation, and acquisition of quality affordable housing by 

providing and leveraging capital.

2. Develop measures and policies that enable HUD programs to target markets with the greatest 

unmet affordable housing needs and neighborhoods where HUD is supporting housingrelated investments (for example, transit-oriented developments).

3. Improve project-based vouchers to make them a more effective tool for creating supply where 

it is most needed.

4. Streamline and coordinate the policies and practices of HUD programs and Treasury programs, 

including the Low-Income Housing Tax Credit Program.
Goal 2: Meet the Need for Quality Affordable Rental Homes 21

Subgoal 2C: Preserve the affordability and improve the quality of federally 

assisted and private unassisted affordable rental homes 

The nation’s portfolio of affordable rental homes provides an invaluable resource in communities across the country. In addition, unassisted privately owned rental homes are the largest, but 

dwindling, source of affordable rental homes. To avoid losing these homes to deterioration or 

market conversion, HUD and its partners will preserve and improve these homes.

Strategies: 

1. Provide reliable, adequate renewal funding for all HUD programs that provide ongoing 

operating or rental assistance.

2. Preserve and improve publicly and privately owned HUD-assisted properties by transforming 

HUD’s rental assistance programs to leverage capital.

3. Ensure preservation of affordable housing in neighborhoods where HUD is supporting 

housing-related investments (for example, transit-oriented developments).

4. Develop interagency partnerships with the Department of the Treasury and the Department of 

Agriculture to preserve federal investments in affordable rental homes.

5. Expand access to capital and mitigate risk for small- and mid-size multifamily property 

acquisition and rehabilitation.

Subgoal 2D: Expand families’ choices of affordable rental homes located in 

a broad range of communities

The nation’s housing market needs to create and sustain a sufficient supply of affordable rental 

homes, especially for low-income households, located in mixed-income communities. Through 

policy changes and more effective program implementation and oversight, HUD will expand 

rental housing opportunities in strong, safe, healthy communities for families receiving rental 

assistance.

Strategies:

1. Reform project-based subsidies to allow for resident mobility and promote better location 

outcomes in the housing voucher program.

2. Expand opportunities for lower income households to live in mixed-income communities by 

modifying underwriting policies and rental capital programs.

3. Create more mixed-income communities through regional planning, increased effectiveness 

of and compliance with the Analysis of Impediments (AI) to Fair Housing plans, and other 

strategies to affirmatively further fair housing through HUD programs.

4. Promote regional administration of HUD rental assistance.

5. Develop, target, and deliver technical assistance for increasing affordability in areas experiencing 

increased rental costs due to development.

6. Remove local barriers to the expansion of the supply of multifamily homes in strong, safe, 

healthy communities through incentives to state and local governments.
22 FY 2010–2015 HUD Strategic Plan

New Partners New Geography New Business Model

Countless residents of public 

and assisted housing are trapped 

in neighborhoods of concentrated 

poverty—because moving means 

giving up their rental subsidy. 

For these individuals, the mobility constraints limit access to 

communities with more employment opportunities, high-quality 

schools, and lower crime rates. 

Through HUD’s Transforming 

Rental Assistance Initiative, 

HUD will work with partners 

at the state and local levels to 

regionalize rental assistance 

administration and to offer 

residents the option to receive 

tenant-based Section 8 vouchers, 

giving families access to a wider 

range of choices and opportunities when it comes to choosing a 

place to live.

Residents of HUD-assisted housing have the most insight about 

what is working, what is not, 

and what we need to do to make 

housing, its management, and 

neighborhoods better. To improve our programs and HUD’s 

accountability to the residents 

we assist, HUD’s Office of Policy Development and Research 

is implementing a new survey

to understand what residents 

think about their home, the way 

it is managed, and the community where they live. The results 

of these data will be a powerful 

management tool—to identify 

and address residents’ needs as 

well as help measure HUD and 

grantee performance.

Over the past 75 years, the federal 

government has invested billions 

of dollars in the development and 

maintenance of public housing. 

Despite this sizable investment, 

we continue to lose housing units 

due to deteriorating physical condition and a growing capital needs 

backlog estimated to be between 

$18 and $24 billion. Given the 

current fiscal constraints, we cannot expect to meet this need from 

the federal coffer. In response, 

through the Transforming Rental 

Assistance Initiative, HUD is 

shifting to a property-based rental 

assistance model, through which 

public housing authorities will 

be able to leverage an estimated 

$7.5 billion of debt from private 

sources to support the rehabilitation of its aging inventory in the 

first phase alone. This mixed 

public-private funding stream 

offers a paradigm shift in the 

way public housing is managed.

Examples of Themes for Goal 2
Goal 2: Meet the Need for Quality Affordable Rental Homes 23

Signature Initiative—

Transforming Rental Assistance (TRA)

HUD provides deep rental assistance 

to more than 4.6 million households 

through at least 13 different programs 

(each with its own rules) administered 

by 3 operating divisions. The complexity 

of this structure makes it difficult 

for households in need to get HUDassisted rental housing and undermines 

administrative efficiency. Residents 

often have to make the hard trade-off 

between new opportunities of where to 

live and retaining their rental subsidy. 

Agencies that operate public housing 

are particularly limited in their ability to 

leverage private investment, creating 

a sort of “parallel universe” for public 

housing compared to other types of 

affordable rental housing. To address 

these deficiencies, the TRA initiative 

will—

•	 Create a more uniform rental

assistance funding stream, largely 

governed by the same rules and 

regulations, in order to preserve 

affordable housing and retain deeply 

affordable rents. 

•	 Draw upon the best features of

existing programs in order to facilitate 

investment in affordable rental housing 

and assure that residents have real 

options regarding where to live while 

retaining their rental subsidy. 

•	 Begin in FY 2011 with the preservation

of public housing and a subset of 

HUD-assisted multifamily properties 

through their voluntary conversion to 

the more uniform rental assistance 

funding stream proposed under TRA.
24 FY 2010–2015 HUD Strategic Plan

Goal 3. Utilize Housing as a Platform for Improving Quality of Life

Problem Statement

Hard-to-house families face many challenges, including weak employment histories, long stays 

in public housing, poor health, substance abuse, and criminal records. Special needs populations, including homeless people, people with HIV/AIDS, people returning from prisons, returning veterans, the elderly, and people with disabilities all experience significant barriers to both 

obtaining and maintaining housing. For some, financial assistance alone is sufficient to ensure 

access to housing, while others require housing with supportive services to assist with activities 

of daily living or long-term self-sufficiency.

y In 2007, the most recent time for which we have data, 1.21 million elderly households and 

1.01 million disabled households had incomes of less than 50 percent of the area median 

income (AMI), did not receive housing assistance, and either paid more than one-half of their 

income for rent or lived in severely substandard housing, or both.13 The number of seniors 

(people age 65 or older) in the United States is expected to increase from 35 million in 2000 

to 64 million by 2025.14

y A 2008 HUD service coordinator study found that the presence of staff who link residents 

to supportive services in the community increased residents’ length of tenure by 6 months, 

enabling elderly and nonelderly people with disabilities to live independently in their own 

homes 10 percent longer than those without service coordination.15

y Adults receiving HUD housing assistance are less well than other adult renters; 60 percent 

more suffer from depression, 18 percent more are smokers, 263 percent more have diabetes, 

78 percent more have asthma attacks, and 94 percent more have weight problems that cause 

difficulty with activity.16

y The Centers for Disease Control and Prevention estimate that more than one million people 

are living with HIV and AIDS in the United States, with an estimated annual increase of 

56,300 new cases of HIV. Of this number, minorities are disproportionately affected, with 65 

percent of new reported cases among racial and ethnic minorities.17

y In 2008, 1.59 million people experienced homelessness at some point.18

y Only 1 in 10 students from low-income communities graduates from college,19 and children 

living in low-income communities are already two to three grades behind their higher income 

peers by the time they reach fourth grade.20
Goal 3: Utilize Housing as a Platform for Improving Quality of Life 25

Housing as a Platform Goal

Stable housing, made possible with HUD support, provides an ideal platform for delivering a 

wide variety of health and social services to improve health, education, and economic outcomes. 

Through partnerships at the federal, state, and local levels, HUD will utilize its housing platform 

to deliver a wide variety of services to improve the quality of life of its residents and the surrounding community. The following subgoals provide a roadmap for accomplishing this goal:

Subgoal 3A: Utilize HUD assistance to improve educational outcomes and early learning and 

development.

Subgoal 3B: Utilize HUD assistance to improve health outcomes.

Subgoal 3C: Utilize HUD assistance to increase economic security and self-sufficiency.

Subgoal 3D: Utilize HUD assistance to improve housing stability through supportive services 

for vulnerable populations, including the elderly, people with disabilities, homeless people, and 

those individuals and families at risk of becoming homeless.

Subgoal 3E: Utilize HUD assistance to improve public safety.

Measures of Success

y Increase the number of HUD-assisted households with school-aged children who have access 

to schools scoring at or above the local average. 

y Provide access to information and opportunities by increasing the proportion of units in HUD 

public and multifamily housing with an available broadband Internet connection.

y Improve the health of HUD-assisted residents.

y Increase the average income of HUD-assisted households.

y Improve the quality of housing and available community opportunities reported by HUD 

residents (cross-cutting measure for Goals 2, 3, and 4).

y Reduce homelessness (cross-cutting measure for Goals 2 and 3).

We know that housing 

can be a platform for 

driving other outcomes—

that housing is not just 

a typical market good, 

but a place to anchor 

services and where 

different policies central 

to opportunity can be 

overlaid.

—HUD Secretary 

Shaun Donovan

October 26, 2009
26 FY 2010–2015 HUD Strategic Plan

Subgoal 3A: Utilize HUD assistance to improve educational outcomes and 

early learning and development

Our nation’s economic competitiveness depends on providing children and youth—particularly 

those growing up in poverty—with an education that will enable them to succeed in the global 

economy. HUD aims to improve educational outcomes for those living in HUD-assisted housing 

by optimizing our own location-based policies and partnering with nonprofit organizations, 

schools, and other federal agencies to ensure greater access to high-quality early learning programs and schools, effective adult education, broadband Internet, and other technology. 

Strategies: 

1. Increase access to high-performing schools through HUD policies and partnerships with 

federal, state, and local programs. 

2. Increase access to high-quality early learning programs and services through incentives and 

coordination with federal, state, and local programs.

3. Provide incentives for using evidence-based strategies that encourage and improve family 

engagement in positive child development and learning.

4. Increase access to broadband Internet and other technology.

Subgoal 3B: Utilize HUD assistance to improve health outcomes 

Stable, healthy housing is inextricably tied to individual health. Improving health outcomes 

starts by increasing knowledge of health and access to health services. HUD aims to accomplish 

this by building formal and informal relationships with public and private healthcare providers 

and with health education organizations to provide access to healthcare information and services 

for recipients of HUD assistance. HUD will also encourage management practices that enhance 

the health of housing residents, and, where possible, HUD will provide physical space to provide 

healthcare services.

Strategies: 

1. Increase information about and access to health services, including veterans’ health benefits, 

through partnerships with health organizations and healthcare delivery systems.

2. Increase coordination of HUD programs with healthcare resources administered by other 

federal, state, and local programs.

3. Provide physical space to colocate healthcare and wellness services with housing (for 

example, onsite health clinics).

4. Promote housing management practices that protect the health of residents (for example, 

smoking cessation, pest management, and green cleaning).
Goal 3: Utilize Housing as a Platform for Improving Quality of Life 27

Subgoal 3C: Utilize HUD assistance to increase economic security and 

self-sufficiency

HUD housing serves at least two broad populations: people who are in a position to markedly 

increase their self-sufficiency and people who will need long-term support (for example, the 

frail elderly and people with severe disabilities). For those individuals who are able, increasing 

self-sufficiency requires access to life-skills training, wealth-creation and asset-building opportunities, job training, and career services. For those who need long-term support, HUD housing 

will provide access to income support and other benefits that can enhance an individual’s quality 

of life. Assisting both populations can be accomplished by providing space in HUD-assisted 

housing to offer training programs and information sessions, partnering with the Department of 

Labor, collaborating with state and local organizations to coordinate job-skills training and job 

placement, and improving access to public benefit programs for eligible recipients.

Strategies: 

1. Support wealth creation and asset building through programs that enable families to build 

assets and increase financial literacy.

2. Improve access to job opportunities through information sharing; coordination with federal, 

state, and local programs; and other means.

3. Increase access to job training and career services and work support through coordination 

with federal, state, and local programs.

4. Increase access to public benefits (such as Temporary Assistance for Needy Families [TANF] 

and Supplemental Security Income [SSI]) through outreach and other means.

5. Increase access to broadband Internet and other technology.

Subgoal 3D: Utilize HUD assistance to improve housing stability through 

supportive services for vulnerable populations, including the elderly, 

people with disabilities, homeless people, and those individuals and 

families at risk of becoming homeless

For those people who are without housing or who are at risk of losing their homes, the provision 

of affordable housing in combination with an array of voluntary economic, health, and social 

services can help stabilize their situation and put them on a path toward their highest possible 

level of self-sufficiency. These services require that housing providers establish partnerships with 

a variety of public and private health, human service, and job training and placement organizations.

Strategies:

1. Provide and increase access to homelessness prevention services.

2. Increase enrollment in mental health services, substance abuse programs, veterans health and 

benefit programs, and medical services for the elderly, people with disabilities, and households 

experiencing homelessness or that are at risk of becoming homeless.
28 FY 2010–2015 HUD Strategic Plan

Subgoal 3E: Utilize HUD assistance to improve public safety

Safety and perceptions of safety are necessary factors for quality of life. Enhancing physical safety 

and reducing crime are essential to improving health, education, and economic outcomes. To 

improve actual safety and perceptions of safety, HUD will work with other housing providers 

to establish partnerships with law enforcement, improve the design of HUD-assisted residences, 

and promote safety awareness.

Strategies:

1. Encourage housing managers to use incentives to promote safety awareness and crime 

prevention programs.

2. Maintain or improve the physical environment and design of HUD-assisted residences, giving 

attention to physical safety and crime prevention.

3. Promote a high level of coordination with law enforcement agencies to prevent and reduce 

crime.
Goal 3: Utilize Housing as a Platform for Improving Quality of Life 29

New Partners New Geography New Business Model

Many people think of homelessness as strictly an urban 

phenomenon, but the same 

structural issues that cause 

homelessness in cities—lack 

of affordable housing and low 

incomes—are present in rural 

areas and suburbs as well. Often 

in these communities, the 

problem is exacerbated by other 

issues, such as limited access 

to health and social services 

or lack of public transportation. The HEARTH (Homeless 

Emergency Assistance and 

Rapid Transition to Housing)

Act, which was signed into law 

in 2009, increases funding for 

homelessness prevention and 

rapid rehousing in rural areas 

and will provide up to 20 percent of grant funds to build the 

capacity of rural communities to 

respond to homelessness.

Increased accessibility to accurate 

data now enables HUD to 

determine whether homelessness is increasing or decreasing, 

what subpopulations are most 

affected, and what the real costs 

of homelessness are. As a result 

of this new business model, it 

has become clear that significant 

cost savings can be achieved for 

some populations by providing 

an individual stable, affordable 

housing with targeted health and 

human services. This evidence 

has led to new, more effective 

and efficient housing and service 

delivery models that save taxpayer dollars. Ultimately, the goal 

is to be able to measure these 

efficiencies across federal 

programs and recycle the cost 

savings in a way that rewards 

the agencies that make these 

savings possible.

In the age of high-speed Internet 

and constant connectivity, opening 

the doors of opportunity to every 

American depends on technology 

like never before. We have an 

opportunity to use HUD housing as a platform to drive other 

outcomes by increasing access 

to broadband Internet and other 

technology for residents who 

receive HUD assistance. HUD has 

worked with the Federal Communications Commission to develop best practices for engaging 

nonprofit and private partners to 

bring down the cost of computers 

and monthly service for HUD-assisted residents; provide training 

and applications that help them 

access educational, employment, 

and other opportunities available 

through broadband; and partner 

with other federal agencies that 

serve low-income people who 

lack these opportunities.

Examples of Themes for Goal 3
30 FY 2010–2015 HUD Strategic Plan

Signature Initiative—

Ending Homelessness by Preventing It

For more than two decades, HUD’s 

targeted McKinney-Vento homelessness 

assistance programs have helped 

communities across the nation meet 

the needs of families and individuals 

who have become homeless. Although 

these resources remain critical, there 

is a growing recognition that the 

best and most cost-effective way to 

end homelessness is to prevent it 

before it begins. The initiative to End 

Homelessness by Preventing It will—

•	 Prevent homelessness before it

begins by connecting those at risk 

with rental assistance and by forging 

new partnerships to provide robust, 

supportive services in addition to 

housing. 

•	 Connect HUD core housing programs

with mainstream supports from the 

Department of Health and Human 

Services (HHS) and the Department of 

Education. 

•	 Partner with HHS starting in FY 2011

to link health and social services 

with housing vouchers in order to end 

homelessness for 10,000 households 

and help model future partnering 

opportunities to assist homeless 

families and individuals.

No one, especially veterans who have faithfully served our country, should become homeless. [The Interagency Council on Homelessness] 

work is critical to providing for those at risk and on the streets. This interagency partnership allows us to leverage our resources, 

programs, talent, and experience to create viable solutions that will eliminate homelessness.

—Eric K. Shinseki, Secretary of Veterans Affairs

June 18, 2009
Goal 4: Build Inclusive and Sustainable Communities Free From Discrimination 31

Goal 4. Build Inclusive and Sustainable Communities Free From 

Discrimination

Problem Statement

Housing and community development efforts must address a complex network of individual, 

social, economic, and environmental factors in order to promote more diverse, inclusive communities and improve the sustainability of neighborhoods, communities, and regions. Many of 

the neighborhoods hit hardest by the housing and economic crisis—those with the highest rates 

of foreclosure and job loss—are racially isolated and among the least sustainable—with limited 

access to economic opportunity, the longest commuting times to jobs, the most homes that pose 

health risks, and the poorest quality schools. 

y According to the 2000 Census, 7.9, million people live in “extreme poverty” census tracts, 

where the poverty rate exceeds 40 percent. When people live in neighborhoods of concentrated poverty, outcomes for education, employment, safety, and health all suffer.21

y In assessing the extent of racial segregation in America, the 2000 Census indexes of dissimilarity, isolation, and spatial proximity showed an increase in segregation for Hispanics 

between 1980 and 2000.22 Although the census found for African Americans that strides had 

been made in the West and South, segregation increased in some small metropolitan areas 

in the South. The census found that the Northeast and Midwest made less progress, and the 

large metropolitan areas that had been the most segregated a decade earlier remained so.23

y In HUD’s Housing Discrimination Study conducted in 2000, discrimination persisted in 

both rental and sales markets of large metropolitan areas nationwide. African Americans 

experienced discrimination in about 22 percent of rental transactions and 17 percent of sales 

transactions. Hispanics experienced discrimination in about 26 percent of rental transactions 

and 20 percent of sales transactions.24

y By 2005, the number of poor people in suburbs (all neighborhoods) of the largest 100 metropolitan areas numbered 12.2 million, exceeding the 11.0 million poor in the central cities.25
32 FY 2010–2015 HUD Strategic Plan

y Buildings now contribute 40 percent of our nation’s carbon emissions,26 congestion on our 

roads costs five times as much wasted fuel and time as it did 25 years ago,27 and the average 

working family spends 57 percent of its income on housing and transportation costs combined.28

y ENERGY STAR estimates that upgrading a home to meet ENERGY STAR requirements can 

reduce 4,500 pounds of greenhouse gases per year. In addition, such homes can expect to 

save homeowners between $200 and $400 per year on utility bills.29

y A need exists to improve long-term recovery in areas affected by disaster. Hurricane Katrina 

occurred nearly 5 years ago, and, as of March 2010, only 75.4 percent of Gulf Coast homes 

severely impacted by Hurricanes Katrina and Rita are occupied.30
Goal 4: Build Inclusive and Sustainable Communities Free From Discrimination 33

The Communities Goal Overview

The nation’s current housing, economic, health, and energy crises demand that the federal government and its local partners effectively coordinate policies related to community development, 

climate change, energy efficiency, transportation, housing, and disaster preparedness. Today we 

know that “place” influences outcomes—the place where a person lives is a reliable predictor of his 

or her long-term health, education, and employment outcomes. Families and individuals living in 

concentrated poverty experience greater inequity and often, as a result, more dismal outcomes.

Unfortunately, many neighborhoods hit hardest by the recent housing and economic crisis—

those with the highest foreclosure rates and the most job losses—are among the least sustainable. Residents of these neighborhoods have limited access to transportation, face health hazards 

in their homes and communities, suffer from the poorest schools, and have the fewest economic 

opportunities. In many areas, the spatial mismatch between housing and transportation investments limits access to decent employment and education opportunities for entire neighborhoods. This not only impacts the lives of residents in those communities, but the resulting need 

to travel greater distances to connect to these resources has a clear impact on the environment as 

well—from wetland and open space lost to sprawling development patterns to ever-increasing 

greenhouse gas emissions. To address these problems, Goal 4 focuses explicitly on ”place,” on 

ensuring inclusivity and preparing communities for the future of their economy, environment, 

culture, and preparedness in case of disaster. HUD seeks to ensure—through comprehensive 

community development, strategic planning, enforcement, and enhanced capacity building—

that all communities are livable for residents and viable in the long term. The following subgoals 

provide a roadmap for accomplishing this goal:

Subgoal 4A: Catalyze economic development and job creation, while enhancing and preserving community assets.

Subgoal 4B: Promote energy-efficient buildings and locationefficient communities that are healthy, affordable, and diverse.

Subgoal 4C: Ensure open, diverse, and equitable communities. 

Subgoal 4D: Facilitate disaster preparedness, recovery, and 

resiliency.

Subgoal 4E: Build the capacity of local, state, and regional 

public and private organizations.

Measures of Success

y Reduce the share of household income spent on the 

combined costs of housing and transportation in communities that receive assistance from the 

Office of Sustainable Housing and Communities.

y Complete cost-effective energy and green retrofits of 159,000 public, assisted, and other 

HUD-supported affordable homes by the end of 2011.

y Increase the proportion of HUD-assisted families in low-poverty and racially diverse communities (cross-cutting measure for Goals 2 and 4). 

y Increase the percentage of Gulf Coast homes in Louisiana, Mississippi, and Texas that have 

been reoccupied or converted to another viable purpose after being severely impacted by 

Hurricanes Katrina and Rita in 2005.

y Improve the quality of housing and available community opportunities reported by HUD 

residents (cross-cutting measure for Goals 2, 3, and 4).

It comes down to a 

fundamental belief: that 

when you choose a home, 

you don’t just choose a 

home. You also choose 

transportation to work, 

schools for your children, 

and public safety. You 

choose a community—

and the choices available 

in that community. A 

belief that our children’s 

futures should never be 

determined—or their 

choices limited—by the 

ZIP Code they grow up in.

—HUD Secretary 

Shaun Donovan

November 4, 2009
34 FY 2010–2015 HUD Strategic Plan

Subgoal 4A: Catalyze economic development and job creation, while 

enhancing and preserving community assets 

Nurturing opportunities for job growth and business expansion in communities, particularly 

those that are economically distressed, is essential for ensuring long-term vitality. Economic 

development, however, must be tailored to the assets and needs of the community in a way that 

maintains and enhances affordability and local character. Through such strategies as providing 

tax incentives, support for comprehensive local economic planning, and enforcement of Section 3

(which provides a hiring preference for residents of HUD housing on projects paid for by HUD 

funds), HUD will facilitate business expansion and job creation in some of the country’s most 

distressed communities and for its most vulnerable residents.

Strategies:

1. Support communities by providing incentives to industries, including small- and mediumsized firms, for investment and reinvestment.

2. Promote and preserve community assets, including small businesses, fresh food markets, 

parks, hospitals, and high-quality schools, by incentivizing comprehensive and inclusive local 

economic development planning.

3. Expand economic and job creation opportunities for low-income residents and create better 

transportation access to those jobs and other economic opportunities by partnering with 

federal and nonprofit agencies, private industry, and planning and economic development 

organizations and by leveraging federal and private resources.
Goal 4: Build Inclusive and Sustainable Communities Free From Discrimination 35

Subgoal 4B: Promote energy-efficient buildings and location-efficient 

communities that are healthy, affordable, and diverse

Walkable, transit-oriented, mixed-income, and mixed-use communities—coupled with a strong 

commitment to energy-efficient and affordable green building—substantially reduce transportation costs, create energy savings, reduce greenhouse gas emissions, and enhance the health and 

well-being of all residents. In collaboration with federal agencies and local partners, HUD will 

lead policy innovation, implement programs, conduct research, and support a new generation of 

regional and local integrated planning. These activities will foster a new paradigm of affordable, 

sustainable development that protects the environment and community residents while lowering 

housing costs for all. 

Strategies:

1. Incorporate sustainability principles into all HUD programs.

2. Promote coordinated planning, integrating federal resources and targeting technical assistance 

at the local, state, and regional levels for sustainable housing, transportation options, and 

communities overall.

3. Give consumers more information about the true cost of living by incorporating both housing 

and transportation costs into measures of affordability.

4. Improve residents’ health and safety, particularly the health and safety of children and other 

vulnerable populations, by promoting green and healthy design, construction, rehabilitation, 

and maintenance of housing and communities.

5. Support and promote an energy-efficient, green, and healthy housing market by retrofitting 

existing housing, supporting energy-efficient new construction, improving home energy 

labeling, and promoting financing products that reduce the carbon footprint of nonHUD-supported residential buildings.

6. Reduce energy consumption and incorporate green building practices in the design and 

operation of HUD-supported affordable housing.
36 FY 2010–2015 HUD Strategic Plan

Subgoal 4C: Ensure open, diverse, and equitable communities

An inclusive community is one in which all people—regardless of race, ethnicity, socioeconomic 

status, age, disability, or sexual orientation—have access to the same housing, transportation, 

health, education, and employment opportunities. Through inclusive development, education, 

enforcement of fair housing laws, and participation of historically underrepresented populations 

in HUD policies and planning, HUD will affirmatively further fair housing and the ideals of an 

open society.

Strategies:

1. Prevent discrimination through enforcement actions, compliance measures, public awareness 

campaigns, and education.

2. Combat abusive lending practices at federal and local levels through vigorous enforcement of 

fair housing laws.

3. Ensure the Department affirmatively furthers fair housing in all of its programs through both 

incentives and consequences for nonperformance.

4. Decrease the concentration of poverty and racial segregation in neighborhoods and communities through targeting of HUD resources.

5. Ensure meaningful participation of historically underrepresented populations in HUD policymaking and in state and local housing and community development planning processes.

6. Promote the design and construction of buildings and communities that are accessible and 

visitable by people with disabilities.

Subgoal 4D: Facilitate disaster preparedness, recovery, and resiliency

Sustainable communities thrive on development that incorporates planning for climate and 

disaster events. Through coordination with federal agencies and state and local governments, 

HUD will help communities focus on climate adaptation and hazard resilience, key components 

of strategic local approaches to sustainable development. This effort includes planning for and 

implementing adaptation and predisaster mitigation strategies and providing assistance following a disaster.

Strategies:

1. Promote the use of climate-resilient and disaster-resistant development patterns, building 

siting, design, and construction. 

2. Integrate and coordinate assistance across federal programs to help create disaster-resilient 

and sustainable communities and facilitate the delivery of postdisaster resources for recovery.

3. Reduce losses to businesses, community organizations, and public infrastructure from 

reoccurring disasters in high-risk areas. 
Goal 4: Build Inclusive and Sustainable Communities Free From Discrimination 37

Subgoal 4E: Build the capacity of local, state, and regional public and 

private organizations 

Sustainable and inclusive community planning is possible only through the coordinated efforts 

of strong local, state, and regional organizations. Capacity building is the development of core 

skills within partner organizations to organize, manage, implement, and raise capital for community development and affordable housing projects and to provide one-on-one, place-based 

assistance to implement projects. HUD will work to strengthen local governments and nonprofit 

organizations by expanding the Section 4 Capacity Building for Community Development and 

Affordable Housing Program and including local governments as eligible recipients of capacitybuilding assistance.

Strategies:

1. Strengthen the capacity of state and local partners, including governments and nonprofit 

organizations, to implement HUD programs, participate in decisionmaking and planning 

processes, and coordinate on cross-programmatic, place-based approaches through grantmaking and technical assistance.

2. Support knowledge sharing and innovation by disseminating best practices, encouraging peer 

learning, publishing data analysis and research, and helping to incubate and test new ideas.

3. Encourage metropolitan and regional focus in planning and community development.
38 FY 2010–2015 HUD Strategic Plan

New Partners New Geography New Business Model

In the second half of the last 

century, federal housing and 

transportation policies, which 

supported the development of 

highways and single-family, 

large-lot homes in suburban 

communities, created a mismatch 

between where people live and 

where they work. This mismatch 

has driven up commuting costs 

for workers, while reducing 

economic efficiency and competitiveness for businesses. 

Working in partnership with the 

Department of Transportation 

and the Environmental Protection 

Agency, HUD is working to address the legacy of past policies 

by pursuing a more sustainable 

federal approach to regional 

planning. The Sustainable 

Community Planning Grant 

Program will support multijurisdictional regional planning 

efforts that integrate housing, 

economic development, and 

transportation decisionmaking 

and will empower jurisdictions 

to consider the interdependent 

challenges of economic growth, 

social equity, and environmental 

impact simultaneously when 

addressing these issues.

Homebuyers often have to travel 

away from city centers to find 

an affordable place to live and 

raise their families. The extra 

travel costs associated with those 

long commutes often offset 

the cheaper monthly mortgage 

payments resulting from living 

so far away, not to mention the 

additional negative environmental impacts. To counter this 

“drive to qualify” culture, HUD 

will take an energy-efficient 

mortgage product to scale 

through our $50 million Energy 

Innovation Fund and develop a 

transportation-efficient mortgage—to account for a house’s 

proximity to jobs and schools. 

These products will be based on 

the same fundamental premise—

that by making information on 

utility and transportation costs 

widely available, we can drive 

a much broader scale of change 

than government ever could 

alone, ensuring that we never 

again foster a culture of “drive to 

qualify.”

HUD has been charged with 

forging interagency partnerships 

on a scale that is unprecedented. 

An example of this kind of partnership is Secretary Donovan’s 

role as co-chair of the Long-Term 

Disaster Recovery Working 

Group with Department of 

Homeland Security Secretary 

Napolitano. This group includes 

partnerships with federal, state, 

local, and private stakeholders to 

develop proposals to improve 

predisaster and resiliency planning and to improve federal 

support to affected communities 

following a disaster, ultimately 

producing a report to the President. 

In addition, HUD has collaborated 

with these partners to streamline 

the disaster volunteer process so 

a single access point through the 

federal government is available for 

volunteers who want to support 

disaster planning and recovery 

efforts.

Examples of Themes for Goal 4
Goal 4: Build Inclusive and Sustainable Communities Free From Discrimination 39

Signature Initiative—

Implementing Choice Neighborhoods

(Cross Cutting with Goals 3 and 4)

Living in neighborhoods of concentrated 

poverty, marked by high unemployment 

rates, rampant crime, and struggling 

schools and other institutions, has 

serious negative consequences for the 

well-being and life chances of adults 

and children, intensifying the negative 

outcomes associated with growing up 

in poverty. The Choice Neighborhoods 

initiative builds on successful, proven 

redevelopment strategies to transform 

neighborhoods of concentrated 

poverty into sustainable mixed-income 

communities with well-functioning 

services, public assets, and access to 

opportunity and that provide choice 

for residents. The program will help 

transform, rehabilitate, and preserve HUD 

public housing and HUD-assisted housing 

and support economic development. The 

Choice Neighborhoods initiative will—

•	 Support affordable housing and

community development activities 

to address critical issues, bring 

needed services and job assistance 

to residents, and improve educational 

opportunities for poor children through 

early childhood education programs 

and locally driven reform.

•	 Target neighborhoods with (1) concentrations of poverty, (2) concentrations 

of public or assisted housing, and 

(3) potential for long-term sustainability, 

including the presence of anchor 

institutions, such as hospitals and 

universities, and access to jobs and 

transportation.

•	 Release Notice of Funding Availability

in FY 2010 and select an initial group 

of neighborhoods for funding in FY 2011.

In HUD’s new Choice Neighborhoods proposal, which is replacing HOPE VI, I think you’re going to see a lot more cooperation between HUD 

and our department. We have already met to discuss the alignment of selection criteria and measurements of effectiveness for Choice 

Neighborhoods and Promise Neighborhoods. And I have been enormously encouraged by the willing hand of partnership and cooperation that 

Shaun Donovan, the Secretary of HUD, and Kathleen Sebelius, the Secretary of HHS, have extended to our department. 

You cannot just divorce where children live from where they learn.

—-Arne Duncan, Secretary of Education

November 10, 2009
40 FY 2010–2015 HUD Strategic Plan

Goal 5. Transform the Way HUD Does Business

Problem Statement

For too long, HUD has been viewed by both its employees and external partners as lacking in its 

ability to provide the support needed to fully deliver on its mission. 

y HUD ranked 24th out of 30 large agencies in the 2009 Best Places to Work in the Federal 

Government report produced by the Partnership for Public Service and American University’s 

Institute for the Study of Public Policy Implementation, based on a survey of HUD employees 

in 2008.31

y HUD ranked last or second-to-last in 7 of the 14 categories evaluated in the Best Places to 

Work in the Federal Government report, ranging from “employee skills/mission match” to 

“teamwork” and “effective leadership.”32

y Internal challenges are manifested in how local partners perceive HUD’s ability to make 

decisions in a timely manner. Only 53 percent of partners surveyed in the 2005 Partner 

Satisfaction with HUD’s Performance survey were “satisfied” or “very satisfied” with the 

timeliness of HUD’s decisionmaking.33
Goal 5: Transform the Way HUD Does Business 41

Transformation Goal

HUD is in the midst of a reinvention that is leveraging technology and a new way of doing 

business to respond to the need for increased transparency and improved service delivery. The 

current economic and housing crisis; the structural affordability challenges facing low-income 

homeowners and renters; and the new, multidimensional challenges facing our urban, suburban, 

and rural communities all require an agency in which the fundamentals matter and the basics 

function. HUD is committed to an investment in transformation that will be implemented persistently over time. The following subgoals provide a roadmap for accomplishing this goal:

Subgoal 5A: Build capacity—create a flexible and high-performing learning organization with a 

motivated, skilled workforce.

Subgoal 5B: Focus on results—create an empowered organization that is customer centered, 

place based, collaborative, and responsive to employee and stakeholder feedback. 

Subgoal 5C: Bureaucracy busting—create flexible, modern rules and systems that promote 

responsiveness, openness, and transparency. 

Subgoal 5D: Culture change—create a healthy, open, flexible work environment that reflects 

the values of HUD’s mission.

Measures of Success

y Make HUD the “Most Improved Large Agency” in the Best Places to Work in the Federal 

Government report.

y Increase the percentage of HUD partners who are “satisfied” or “very satisfied” with the 

“Timeliness of Decision-Making at HUD.”

The bottom line is that 

we can’t help transform 

our communities if we 

don’t transform HUD.

—HUD Secretary

Shaun Donovan

January 22, 2010

y Increase the percentage of HUD partners 

who are “satisfied” or “very satisfied” 

with “Employee’s Knowledge, Skills, and 

Ability.” 

y Increase the percentage of employees who 

“agree” or “strongly agree” they are given a 

real opportunity to improve their skills in 

their organization. 

y Increase the number of decisions delegated 

to field offices.

y Reduce the number of burdensome regulations and reports.

y Reduce end-to-end hiring time. 
42 FY 2010–2015 HUD Strategic Plan

Subgoal 5A: Build capacity—create a flexible and high-performing learning 

organization with a motivated, skilled workforce 

When employees attain skills and are motivated to use those skills to help their organization 

reach goals, the capacity of the organization grows and employees in the organization grow as 

well. HUD will create training and leadership development opportunities for employees, managers, and leaders and conduct succession planning.

Strategies:

1. Enhance knowledge sharing and create learning opportunities by increasing access to 

training; cross-training; job rotations; details; career ladders; reassignments within and 

among program offices, field, and headquarters; and externships and by requiring managerial 

training.

2. Create and sustain a program to continually identify future vacancies and required skill sets 

arising from retirements, develop and hire the best qualified new leaders, and capture and 

transfer knowledge.

3. Set high performance expectations and create mechanisms to identify and address poor 

performance early through training, reassignment, or corrective action.

4. Develop a comprehensive and equitable recruiting strategy to identify, attract, and hire staff 

from inside and outside the Department.

Subgoal 5B: Focus on results—create an empowered organization that is 

customer centered, place based, collaborative, and responsive to employee 

and stakeholder feedback 

Empowered employees who receive rewards for their focus on the customer and their success as 

team players bring improved results to an organization. HUD will measure performance, reward 

strong performance, and use performance data to improve results.

Strategies:

1. Delegate authority and accountability and remove layers of hierarchy, within headquarters 

and from headquarters to field offices, to make programmatic decisions and provide the 

resources and structure to support the new structure. 

2. Collaborate across programs to develop place-based decisions.

3. Incorporate field and regional staff knowledge and customer input into policy decisions and 

implementation strategies.

4. Develop tracking and reporting tools to hold leadership and teams accountable to commitments related to mission accomplishment, customer satisfaction, employee engagement, 

cost-effectiveness, and cross-silo collaboration.

5. Develop a process to analyze performance data and guide problemsolving and decisionmaking.

6. Enhance the performance evaluation and rewards structure to deliver meaningful performance 

feedback from multiple stakeholders and encourage thoughtful risktaking.
Goal 5: Transform the Way HUD Does Business 43

Subgoal 5C: Bureaucracy busting—create flexible, modern rules and 

systems that promote responsiveness, openness, and transparency

Over time, the rules and regulations that develop within an organization become hurdles instead 

of the helpful pathways they were intended to be. HUD will simplify and combine programs, 

streamline regulations, and eliminate rules and constraints. In addition, the Department will 

reform information technology, human resources, procurement, and other internal support 

functions to give more authority to managers and provide better service to HUD customers.

Strategies:

1. Streamline and improve the hiring process to hire the best qualified staff and minimize the 

time it takes to bring them on board.

2. Define clear, customer-focused information technology, acquisition, and human capital 

service delivery policies, processes, roles, and responsibilities and develop the tools, staff, and 

organizational structure to execute them effectively.

3. Simplify HUD’s internal and external rules, regulations, and reporting requirements to make 

them more efficient, effective, and focused on the essential information the Department needs.

4. Consolidate and streamline programs and program delivery that serve similar functions.

5. Refine the budget structure to increase spending flexibility.

6. Increase transparency, encourage stakeholder engagement, and promote collaboration in 

accordance with HUD’s Open Government Plan.

Subgoal 5D: Culture change—create a healthy, open, flexible work 

environment that reflects the values of HUD’s mission

To improve the culture of the Department, HUD will build an environment that promotes and 

enables creativity, innovation, and collaboration.

Strategies:

1. Change HUD’s workspace, both at headquarters and in the field, to create environments that 

support a flexible, collaborative, and high-performing organization.

2. Develop and implement policies and programs that foster improved health and well-being of 

all employees.

3. Manage business operations of HUD in a way that supports the values of our mission (for 

example, sustainability, inclusivity) and assures quality administration free from fraud, waste, 

and abuse.
44 FY 2010–2015 HUD Strategic Plan

New Partners New Geography New Business Model

With an Administration-wide 

focus on place-based policymaking that recognizes the interconnected economic and social 

needs of urban, suburban, and 

rural communities, HUD must 

become a more place-based 

partner. Unfortunately, many of 

the decisionmaking processes 

at HUD are highly centralized, 

slow, and narrowly focused on 

specific programs without regard 

to the broader community context. To address these issues, the 

Place-Based Decisionmaking 

initiative will delegate decisions 

wherever possible and build 

capacity of HUD staff to be more 

responsive to the challenges 

faced by the new geography of 

our country’s metropolitan areas.

One primary value of open 

government is using the ingenuity and creativity of the public 

to generate ideas that can help 

HUD accomplish its mission. 

Through online tools, social 

media, and other technology, 

HUD is engaging our staff and 

partners to help solve problems. 

An example of this new type 

of engagement is an interactive 

suggestion box HUD launched 

in November 2009, called 

HUD Ideas in Action (www.

hud.gov/ideasinaction). The 

site encourages users to submit 

ideas, which are voted on, rated, 

and then sent to the appropriate decisionmaking authority to 

assess implementation. If an idea 

is approved, the relevant program or support area becomes 

the ‘owner’ and is tasked with 

realization.

Recognizing the need for fast, 

thoughtful input on critical 

housing policy issues, HUD 

formed the What Works Collaborative. The Collaborative 

consists of researchers from the 

Brookings Institution’s Metropolitan Policy Program, Harvard 

University’s Joint Center for 

Housing Studies, New York 

University’s Furman Center for 

Real Estate and Urban Policy, 

and the Urban Institute’s 

Center for Metropolitan Housing and Communities, as well 

as other experts from practice, 

policy, and academia. Support 

for the Collaborative comes from 

The Annie E. Casey Foundation, 

the Ford Foundation, The John 

D. and Catherine T. MacArthur 

Foundation, The Kresge Foundation, The Rockefeller Foundation, 

and the Surdna Foundation.

Examples of Themes for Goal 5
Goal 5: Transform the Way HUD Does Business 45

Signature Initiatives—

Ensuring Place-Based 

Decisionmaking

Over time, the decisionmaking processes 

at HUD have become centralized at 

headquarters, compartmentalized within 

program areas, variable across different 

geographies, and disconnected from 

a place-based approach. This lack of 

coordination has diminished customer 

service and led to significantly slow 

response times on requests. The PlaceBased Decisionmaking initiative will— 

•	 Improve response time and

consistency to efficiently meet our 

customers’ needs.

•	 Delegate more authority within

headquarters and to the field for 

decisions that need to be more place 

based and that can be decentralized; 

escalate to headquarters only 

those decisions that require more 

centralized control.

Reforming the Hiring Process

The federal hiring process needs to be 

reformed, and HUD plans to be a model 

for this transformation. The current hiring 

process is lengthy, slowed down by 

burdensome requirements, bureaucratic 

processes, and outdated technology 

systems. In 2008, the Office of Personnel 

Management developed, in concert 

with Chief Human Capital Officers, an 

End-to-End Hiring Roadmap that focuses 

on reducing the time it takes to hire 

and on making the application process 

easier and more readily understood by 

potential applicants. Our goal is to build 

on these initial steps to make hiring 

reform a reality at HUD. The hiring reform 

initiative plans to focus on four areas 

of hiring—timeliness, plain language 

and streamlined announcements, 

communication with applicants, and 

involvement of hiring managers to ensure 

we hire the best quality people. The 

Hiring Reform initiative will— 

•	 Ensure top-quality talent and

streamline the approval processes to 

reduce end-to-end hiring time to 79 

days.

•	 Invest in technology, improve

recruiting and assessment tools, 

and establish tracking and reporting 

mechanisms to ensure customer 

service accountability.

Eliminating and Simplifying HUD 

Rules and Reports

HUD and its partners often operate in 

a straightjacket environment in which 

managers and partners spend energy 

coping with the complex rules and 

processes that have accreted over several 

decades at the expense of investing in 

mission activities. The Eliminate and 

Simplify HUD Rules and Reports 

initiative will— 

•	 Improve efficiency, transparency,

and service delivery and reduce 

administrative burden on staff and 

partners.

•	 Solicit input from HUD partners on

the most counterproductive rules 

and reporting requirements, create a 

SWAT team to redesign those rules, 

and report back to HUD partners on 

what we have changed to get their 

feedback on how well the simplified 

approach is working.

Creating Upward Mobility and 

Internal Placement Opportunities for 

HUD Staff 

Many HUD employees do not have the 

opportunity to fully use their talents or 

gain broader professional development 

experiences outside their immediate role, 

resulting in lost opportunities for HUD to 

develop staff. The Create Upward Mobility and Internal Placement Opportunities 

for HUD Staff initiative will— 

•	 Develop greater institutional

knowledge, increase workforce 

flexibility and cross-training, retain 

employees, and potentially lower the 

cost of personnel disputes.

•	 Create a mobility program with lateral

reassignments, details, and rotations 

within and among silos, bridge 

positions, and career advancement.

Place-based policies leverage investments by focusing resources in targeted places and drawing on the compounding effect of wellcoordinated action. Effective place-based policies can influence how rural and metropolitan areas develop, how well they function 

as places to live, work, operate a business, preserve heritage, and more. Such policies can also streamline otherwise redundant and 

disconnected programs.

—Peter Orszag, Office of Management and Budget

August 11, 2009
46 FY 2010–2015 HUD Strategic Plan

Section 3. Implementation

Putting the Plan Into Action: 

Setting Targets and Tracking Performance

The Strategic Plan provides a framework for achieving the Department’s mission. To fulfill that 

purpose, however, we must turn these ambitious commitments into an actionable plan that will 

guide implementation. This implementation plan will be carried out through a number of interlinked mechanisms requiring departmentwide engagement.

The first step in this implementation plan is to align the strategies and programs that contribute 

to the achievement of each key outcome measure described in this Strategic Plan. For purposes 

of both the Strategic Plan and the Department’s Annual Performance Plans, HUD will set annual 

national fiscal year targets for these outcome measures, based on the budgeted activities of contributing programs. The Department will also set annual place-based fiscal year targets for these 

same outcome measures, where applicable.

With outcome targets in place, HUD will develop an annual Management Action Plan (MAP), 

which will replace the agency’s current management plan and become the tool by which we 

track and monitor the activities that support the outcome measures in the Strategic Plan and 

Annual Performance Plans. For each outcome measure, contributing programs will identify 

both supporting performance measures and activity milestones, with corresponding targets and 

completion dates. Having identified these measures and milestones, HUD will track performance 

by HUD organizational unit, customer, or place.

Where appropriate, the Department will conduct place-based target-setting and tracking, using 

these MAP activity and measurement templates, with executive-level reporting and monitoring 

at the HUD region level. Regional field directors will drill this down to the state and local levels. 

After the MAP is established, regular reports containing measures and milestones for each goal 

will be developed and reviewed at regular goal-specific management meetings with the Secretary 

and Deputy Secretary.

Delivering Solutions: 

Implementing HUD Programs

The following tables detail which HUD programs contribute and will contribute to achieving 

each goal. 
Implementation 47

1A. Stem the 

foreclosure 

crisis

1B. Protect and educate 

consumers when they 

buy, refinance, or rent 

a home

1C. Create financially 

sustainable 

homeownership 

opportunities

1D. Establish an 

accountable and 

sustainable housing 

finance system

Implementing HUD’s Programs: Goal 1. Strengthen the Nation’s Housing Market To Bolster the Economy and Protect Consumers

Brownfields Economic Development Initiative

Community Development Block Grant (CDBG) (Catalytic Competition)

CDBG (Disaster Recovery Assistance) l

CDBG (Entitlement) l

CDBG (Section 108 Loan Guarantee)

CDBG (University Community Fund) l l

Empowerment Zones

HOME Investment Partnerships Program l

Homeless Assistance Grants (HAG) 

Housing Opportunities for Persons with AIDS (HOPWA)

Housing Trust Fund *

Neighborhood Stabilization Program (NSP) l l

Rural Housing and Economic Development Program l

Section 4 Capacity Building 

Self-Help Homeownership and Opportunity Program (SHOP) l

Fair Housing (Enforcement and Compliance) l l l l

Fair Housing Assistance Program (FHAP) l l l l

Fair Housing Initiatives Program (FHIP) l l l l

Section 3 Program

FHA Hospitals and Nursing Homes

FHA Multifamily Housing

FHA Single Family Forward Mortgage Program l l l l

Home Equity Conversion Mortgage (HECM) Program (Section 255) l l l

Housing Counseling Assistance l l l l

Manufactured Housing Programs l

Multifamily Housing Service Coordinators

Real Estate Settlement Procedures Act (RESPA) l l

Section 8 Project-Based Rental Assistance (PBRA)

Secure and Fair Enforcement (SAFE) l l

Supportive Housing for the Elderly (Section 202)

Supportive Housing for Persons with Disabilities (Section 811)

Guarantees of Mortgage-Backed Securities l l l

Targeted Lending Initiative l l l

Healthy Homes l

Lead-Based Paint Hazard Reduction l

Early Childhood Education Facilities

Family Self-Sufficiency (FSS) Program l

Federal Guarantees for Financing for Tribal Housing Activities (Title VI) l

HUD-Veterans Affairs Supportive Housing (VASH)

Indian Community Development Block Grant (CDBG)

Indian Housing Loan Guarantee Fund (Section 184) l l l l

Native American Housing Block Grants l l

Native Hawaiian Housing Block Grants l

Native Hawaiian Loan Guarantee Fund (Section 184A) l l l

Public Housing Capital Fund

Public Housing Operating Fund

Resident Opportunity and Self-Sufficiency (ROSS) Program l

Revitalization of Severely Distressed Public Housing (Hope VI) l

Tenant-Based Rental Assistance (TBRA)/Housing Choice Vouchers l

Analysis of Impediments

Choice Neighborhoods l

Consolidated Plan l l l

Sustainable Communities Initiative * l *

Transforming Rental Assistance Initiative

l Programs that currently support a subgoal 

* Programs that will support a subgoal in the future

nn Community Planning and Development

nn Fair Housing and Equal Opportunity

nn FHA/Housing

nn Ginnie Mae

nn Healthy Homes and Lead Hazard Control

nn Public and Indian Housing 

nn Planning Tools and Signature Initiatives
48 FY 2010–2015 HUD Strategic Plan

Brownfields Economic Development Initiative

Community Development Block Grant (CDBG) (Catalytic Competition)

CDBG (Disaster Recovery Assistance) l

CDBG (Entitlement) l l

CDBG (Section 108 Loan Guarantee) l

CDBG (University Community Fund)

Empowerment Zones

HOME Investment Partnerships Program l l l

Homeless Assistance Grants (HAG) l l

Housing Opportunities for Persons with AIDS (HOPWA) l

Housing Trust Fund * * *

Neighborhood Stabilization Program (NSP) * l l

Rural Housing and Economic Development Program l

Section 4 Capacity Building 

Self-Help Homeownership and Opportunity Program (SHOP)

Fair Housing (Enforcement and Compliance) l

Fair Housing Assistance Program (FHAP) l

Fair Housing Initiatives Program (FHIP) l

Section 3 Program

FHA Hospitals and Nursing Homes

FHA Multifamily Housing l l l

FHA Single Family Forward Mortgage Program

Home Equity Conversion Mortgage (HECM) Program (Section 255)

Housing Counseling Assistance l *

Manufactured Housing Programs

Multifamily Housing Service Coordinators

Real Estate Settlement Procedures Act (RESPA)

Section 8 Project-Based Rental Assistance (PBRA) l l l l

Secure and Fair Enforcement (SAFE)

Supportive Housing for the Elderly (Section 202) l l l l

Supportive Housing for Persons with Disabilities (Section 811) l l l l

Guarantees of Mortgage-Backed Securities l l

Targeted Lending Initiative l

Healthy Homes l

Lead-Based Paint Hazard Reduction l

Early Childhood Education Facilities

Family Self-Sufficiency (FSS) Program l

Federal Guarantees for Financing for Tribal Housing Activities (Title VI)

HUD-Veterans Affairs Supportive Housing (VASH) l

Indian Community Development Block Grant (CDBG) l l l

Indian Housing Loan Guarantee Fund (Section 184)

Native American Housing Block Grants l l l l

Native Hawaiian Housing Block Grants l l l

Native Hawaiian Loan Guarantee Fund (Section 184A)

Public Housing Capital Fund l l l l

Public Housing Operating Fund l l l l

Resident Opportunity and Self-Sufficiency (ROSS) Program l

Revitalization of Severely Distressed Public Housing (Hope VI) l l l l

Tenant-Based Rental Assistance (TBRA)/Housing Choice Vouchers l l l

Analysis of Impediments * * * *

Choice Neighborhoods l l l l

Consolidated Plan l l l l

Sustainable Communities Initiative l l l

Transforming Rental Assistance Initiative l l l l

2A. End homelessness and 

substantially reduce 

the number of families 

and individuals with 

severe housing needs

2B. Expand the supply 

of affordable rental 

homes where they 

are most needed

2C. Preserve the 

affordability 

and improve the 

quality of federally 

assisted and private 

unassisted affordable 

rental homes 

2D. Expand families’ 

choices of affordable 

rental homes located 

in a broad range of 

communities

Implementing HUD’s Programs: Goal 2. Meet the Need for Quality Affordable Rental Homes

l Programs that currently support a subgoal 

* Programs that will support a subgoal in the future

nn Community Planning and Development

nn Fair Housing and Equal Opportunity

nn FHA/Housing

nn Ginnie Mae

nn Healthy Homes and Lead Hazard Control

nn Public and Indian Housing 

nn Planning Tools and Signature Initiatives
Implementation 49

Brownfields Economic Development Initiative

Community Development Block Grant (CDBG) (Catalytic Competition) *

CDBG (Disaster Recovery Assistance)

CDBG (Entitlement) * * *

CDBG (Section 108 Loan Guarantee)

CDBG (University Community Fund)

Empowerment Zones l

HOME Investment Partnerships Program

Homeless Assistance Grants (HAG) l l l l *

Housing Opportunities for Persons with AIDS (HOPWA) * l l *

Housing Trust Fund

Neighborhood Stabilization Program (NSP)

Rural Housing and Economic Development Program

Section 4 Capacity Building 

Self-Help Homeownership and Opportunity Program (SHOP)

Fair Housing (Enforcement and Compliance) l

Fair Housing Assistance Program (FHAP) l

Fair Housing Initiatives Program (FHIP) l l

Section 3 Program l

FHA Hospitals and Nursing Homes *

FHA Multifamily Housing

FHA Single Family Forward Mortgage Program *

Home Equity Conversion Mortgage (HECM) Program (Section 255) l l

Housing Counseling Assistance l *

Manufactured Housing Programs

Multifamily Housing Service Coordinators * l * l *

Real Estate Settlement Procedures Act (RESPA) l

Section 8 Project-Based Rental Assistance (PBRA) * * *

Secure and Fair Enforcement (SAFE)

Supportive Housing for the Elderly (Section 202) * * l *

Supportive Housing for Persons with Disabilities (Section 811) * * * l *

Guarantees of Mortgage-Backed Securities

Targeted Lending Initiative

Healthy Homes l l

Lead-Based Paint Hazard Reduction l

Early Childhood Education Facilities l

Family Self-Sufficiency (FSS) Program l l l l l

Federal Guarantees for Financing for Tribal Housing Activities (Title VI)

HUD-Veterans Affairs Supportive Housing (VASH) * l l *

Indian Community Development Block Grant (CDBG) l l l l l

Indian Housing Loan Guarantee Fund (Section 184)

Native American Housing Block Grants l l l l l

Native Hawaiian Housing Block Grants l l l l l

Native Hawaiian Loan Guarantee Fund (Section 184A)

Public Housing Capital Fund l l l l

Public Housing Operating Fund l l l l

Resident Opportunity and Self-Sufficiency (ROSS) Program l l l l l

Revitalization of Severely Distressed Public Housing (Hope VI) * * l * l

Tenant-Based Rental Assistance (TBRA)/Housing Choice Vouchers * * l l *

Analysis of Impediments * * * *

Choice Neighborhoods l l l l l

Consolidated Plan l l l l l

Sustainable Communities Initiative * * * *

Transforming Rental Assistance Initiative

3A. Utilize HUD 

assistance 

to improve 

educational 

outcomes 

and early 

learning and 

development

3B. Utilize HUD 

assistance 

to improve 

health 

outcomes

3C. Utilize HUD 

assistance 

to increase 

economic 

security 

and selfsufficiency 

3D. Utilize HUD assistance to 

improve housing stability 

through supportive services 

for vulnerable populations, 

including the elderly, 

people with disabilities, 

homeless people, and those 

individuals and families at 

risk of becoming homeless

3E. Utilize HUD 

assistance 

to improve 

public safety

Implementing HUD’s Programs: Goal 3. Utilize Housing as a Platform for Improving Quality of Life

l Programs that currently support a subgoal 

* Programs that will support a subgoal in the future

nn Community Planning and Development

nn Fair Housing and Equal Opportunity

nn FHA/Housing

nn Ginnie Mae

nn Healthy Homes and Lead Hazard Control

nn Public and Indian Housing 

nn Planning Tools and Signature Initiatives
50 FY 2010–2015 HUD Strategic Plan

Brownfields Economic Development Initiative l l l l

Community Development Block Grant (CDBG) (Catalytic Competition) l *

CDBG (Disaster Recovery Assistance) l * l

CDBG (Entitlement) l l l l

CDBG (Section 108 Loan Guarantee) l

CDBG (University Community Fund) l l

Empowerment Zones l l l l

HOME Investment Partnerships Program l l

Homeless Assistance Grants (HAG) 

Housing Opportunities for Persons with AIDS (HOPWA) l

Housing Trust Fund * * *

Neighborhood Stabilization Program (NSP) l l

Rural Housing and Economic Development Program l l l l

Section 4 Capacity Building l

Self-Help Homeownership and Opportunity Program (SHOP) l

Fair Housing (Enforcement and Compliance) l l l

Fair Housing Assistance Program (FHAP) l l

Fair Housing Initiatives Program (FHIP) l l l l

Section 3 Program l l l

FHA Hospitals and Nursing Homes l l *

FHA Multifamily Housing l l l

FHA Single Family Forward Mortgage Program l l *

Home Equity Conversion Mortgage (HECM) Program (Section 255) * l *

Housing Counseling Assistance l *

Manufactured Housing Programs

Multifamily Housing Service Coordinators

Real Estate Settlement Procedures Act (RESPA) l

Section 8 Project-Based Rental Assistance (PBRA) l l l

Secure and Fair Enforcement (SAFE)

Supportive Housing for the Elderly (Section 202) l l *

Supportive Housing for Persons with Disabilities (Section 811) l l *

Guarantees of Mortgage-Backed Securities

Targeted Lending Initiative

Healthy Homes l l l

Lead-Based Paint Hazard Reduction l l

Early Childhood Education Facilities

Family Self-Sufficiency (FSS) Program l

Federal Guarantees for Financing for Tribal Housing Activities (Title VI)

HUD-Veterans Affairs Supportive Housing (VASH) l

Indian Community Development Block Grant (CDBG) l l l l l

Indian Housing Loan Guarantee Fund (Section 184) l l

Native American Housing Block Grants l l l

Native Hawaiian Housing Block Grants l l l

Native Hawaiian Loan Guarantee Fund (Section 184A) l

Public Housing Capital Fund l l l

Public Housing Operating Fund l l l l

Resident Opportunity and Self-Sufficiency (ROSS) Program l l

Revitalization of Severely Distressed Public Housing (Hope VI) l l

Tenant-Based Rental Assistance (TBRA)/Housing Choice Vouchers l l l

Analysis of Impediments * * *

Choice Neighborhoods l l l l l

Consolidated Plan l l l l l

Sustainable Communities Initiative l l l l l

Transforming Rental Assistance Initiative l * *

4A. Catalyze 

economic 

development 

and job creation, 

while enhancing 

and preserving 

community 

assets

4B. Promote 

energy-efficient 

buildings and 

location-efficient 

communities 

that are healthy, 

affordable, and 

diverse

4C. Ensure open, 

diverse, and 

equitable 

communities 

4D. Facilitate 

disaster 

preparedness, 

recovery, and 

resiliency

4E. Build the 

capacity of 

local, state, 

and regional 

public and 

private 

organizations

Implementing HUD’s Programs: Goal 4. Build Inclusive and Sustainable Communities Free From Discrimination

l Programs that currently support a subgoal 

* Programs that will support a subgoal in the future

nn Community Planning and Development

nn Fair Housing and Equal Opportunity

nn FHA/Housing

nn Ginnie Mae

nn Healthy Homes and Lead Hazard Control

nn Public and Indian Housing 

nn Planning Tools and Signature Initiatives
Implementation 51

Investing in Our Priorities: 

Aligning Resources to Our Goals

The Department’s ability to achieve the targets set forth in this Strategic Plan depends heavily 

on the level and allocation of budgetary and human resources. HUD strives to allocate resources 

efficiently by continually evaluating programs, consulting with stakeholders, and measuring 

performance.

Budget

The achievement of the strategic goals does not depend on one program, office, or function 

but on multiple programs and offices spanning the Department and on working together to 

successfully accomplish each strategic goal. The following graphic HUD’s FY 2010 Program 

Budget Aligned by Strategic Goals and Transformation Initiative (TI) Fund reflects the alignment of 

HUD’s FY 2010 budget authority by programmatic area to each strategic goal.

Employees

The Department’s overhead and management expenses total approximately $1.5 billion in 

FY 2010, which is about 3.5 percent of the total discretionary budget. The largest number 

of programmatic full-time equivalent (FTE) employees is associated with rental assistance 

programs, which also represents the largest percentage of program budget resources. These 

resources support the 5.46 million households in HUD’s affordable rental housing inventory 

and the effort to sustain, expand, and reinvent this area. The following graphic HUD’s FY 2010 

Full-Time Equavalent Employees Aligned by Strategic Goals shows how many FTE employees 

contribute to achieving each strategic goal by office.
52 FY 2010–2015 HUD Strategic Plan

Office of

Community

Planning and 

Development

(CPD)

Office of 

Fair Housing and

Equal Opportunity

(FHEO)

Office of

Housing/ 

Federal Housing

Administration

(H/FHA)

Office of

Public and

Indian Housing

(PIH)

Small Program

Offices*

(SMALL)

HUD’s FY 2010 Program Budget Aligned by Strategic Goals and Transformation Initiative (TI) Fund

$1–$99 million $100–$499 million $500–$999 million $1–$9.99 billion $10–$25 billion

l l l l l

*Small Program Offices are the Office of Sustainable Housing and Communities (OSHC) and the Office of Healthy Homes and Lead Hazard Control (OHHLHC).

**TI Fund dollars are allotted to the respective offices within HUD for use on transformational initiatives.

Source: FY 2010 Appropriations

Key

Mission:

Create strong, sustainable,

inclusive communities and quality,

affordable homes for all

Goal 1

Strengthen the Nation’s Housing Market 

To Bolster the Economy and Protect 

Consumers l l l l l

Goal 2

Meet the Need for Quality Affordable 

Rental Homes l l l l l

Goal 3

Utilize Housing as a Platform for 

Improving Quality of Life l l l l l

Goal 4

Build Inclusive and Sustainable 

Communities Free From Discrimination l l l l l

Goal 5

Transform the Way HUD Does Business lTransformation Initiative (TI) Fund**
Implementation 53

Office of

Community

Planning and 

Development

(CPD)

Office of 

Fair Housing and

Equal Opportunity

(FHEO)

Office of

Housing/ 

Federal Housing

Administration*

(H/FHA)

Office of

Public and

Indian Housing

(PIH)

Additional

Offices**

HUD’s FY 2010 Full-Time Equivalent Employees Aligned by Strategic Goals

Key

Mission:

Create strong, sustainable,

inclusive communities and quality,

affordable homes for all

Goal 1

Strengthen the Nation’s Housing Market 

To Bolster the Economy and Protect 

Consumers

l l l l l

Goal 2

Meet the Need for Quality Affordable 

Rental Homes l l l l l

Goal 3

Utilize Housing as a Platform for 

Improving Quality of Life l l l l l

Goal 4

Build Inclusive and Sustainable 

Communities Free From Discrimination l l l l l

Goal 5

Transform the Way HUD Does Business

1–99 FTE 100–299 FTE 300–599 FTE 600–999 FTE 1,000–1,600 FTE

l l l l l

FTE = full-time equivalent.

*Includes Ginnie Mae staff.

**Additional offices represent approximately 2,500 FTE (this includes CFBNP, CFO, CIO,CIR, CPO, DSOHUD staff, FPM, OCHCO, ODEEO, ODEM, ODOC, OGC, OHHLHC, OPA, 

OSDBU, OSHC, OSPM, PD&R, and SOHUD staff) divided evenly across Goals.

Source: FY 2010 Appropriations
54 FY 2010–2015 HUD Strategic Plan
Appendixes 55

Appendix A

Development of the FY 2010–2015 HUD Strategic Plan

In the fall of 2009, HUD embarked on a strategic planning process of several months to set the 

course of the Department over the next 6 years. The process has been highly inclusive—perhaps 

one of the most inclusive processes in HUD’s history. HUD employed a broad engagement strategy to collect input from many knowledgeable employees and partners—voices critical to HUD’s 

transformation. The strategic planning process generated valuable ideas, increased dialogue 

among parties invested in HUD’s success, and laid the foundation for all stakeholders to support 

the accomplishment of HUD’s goals. 

The strategic planning process, led by the Office of Strategic Planning and Management (SPM), 

included multiple sessions with the Secretary’s leadership team and a 3-day session with six 

different TIGER Teams comprising headquarters and field staff, from middle managers to senior 

leadership. It included two HUD nationwide town hall meetings; feedback sessions in eight regions with both field employees and external stakeholders; a series of internal focus groups; and 

interviews and focus groups with multiple external stakeholders, including congressional staff 

and Office of Management and Budget and White House advisors.

In addition, SPM held monthly sessions with union leadership from the American Federation of 

Government Employees (AFGE) and the National Federation of Federal Employees (NFFE) to 

develop Goal 5: Transform the Way HUD Does Business. These discussions were instrumental in 

shaping Goal 5 subgoals and in determining the ways that the union and management can work 

together as partners to achieve the Department’s transformation goals.

Through these sessions, the thoughts and ideas of more than 1,500 HUD employees and partners 

have been incorporated into HUD’s FY 2010–2015 Strategic Plan. In addition, through an interactive website, HUD Ideas in Action, SPM provided employees, external stakeholders, and the 

public at large with an ongoing opportunity to provide input and feedback on the FY 2010–2015 

HUD Strategic Plan and its goals.

The Strategic Plan emphasizes strong cross-sectional engagement; meaningful linkages with federal, 

state, and local partners; and an effort to create an actionable and integrated management plan 

for the next several years.
56 FY 2010–2015 HUD Strategic Plan

Appendix B

Outcome Measure Descriptions and Additional 

Implementation Measures

Because many outcome measures in Goals 1 through 4 are aspirational, this section describes 

HUD’s plans for developing the data and tools to set baselines, targets, and, where possible, other 

ways to measure our progress while we assemble the information needed.

In addition to the outcome measures, we developed additional implementation measures, which 

require further development but are included here for two reasons: (1) Some demonstrate 

how HUD may break down the larger outcome measures into more discrete or actionable 

components, and (2) others show additional outcomes of interest that HUD may want to track 

to provide context for the main outcome measures.

Success in housing and community development often cannot be fully measured by one set of 

measures. Recognizing that issues like homelessness and availability of community opportunities 

are complex, we have created cross-cutting measures to ensure they are addressed in multiple goals.

Goal 1: Strengthen the Nation’s Housing Market To Bolster the Economy 

and Protect Consumers

Outcome Measures

1. Reduce the number of completed foreclosures.

The rate of completed foreclosures is crucial for measuring HUD’s success in stemming the 

foreclosure crisis. HUD does not currently have direct access to marketwide foreclosure data 

but will obtain the data and begin analyzing it regularly. HUD will develop performance targets with the recognition that HUD programs directly control only a relatively small portion 

of the overall mortgage market and larger macroeconomic forces. The effect of marketwide 

foreclosures on the current economy, however, necessitates a broad measure to couple specific 

Federal Housing Administration (FHA) and HUD measures to the larger housing market and 

cross-agency partnerships.

1a. Interim: Assist 3 million homeowners who are at risk of losing their homes due to 

foreclosure: 

x 200,000 homeowners will be assisted through FHA programs.

x 400,000 homeowners will be assisted through third-party lender loss mitigation 

initiatives mandated by FHA but not receiving FHA subsidy.

x 2.4 million homeowners will be assisted through joint HUD-Treasury programs.

x For all FHA borrowers who become 30 days late, achieve a Consolidated Claim 

Workout ratio of 75 percent, and, for those receiving a CCW, achieve a 6-month 

re-default rate of 20 percent or less.

This High Priority Performance Goal for the FY 2011 budget is only a 2-year goal and will 

require updating to project targets through FY 2015. Because this measure addresses a 

component of foreclosure issues, it will serve as HUD’s interim measure until we are able to 

measure overall completed foreclosures.

2. Restore FHA’s excess capital reserve ratio to the congressionally mandated 2-percent 

level by 2014.

FHA captures mortgage insurance premiums in two reserve accounts: the financing account, 

which retains reserves for all projected insurance claims over the next 30 years, and the capi-
Appendixes 57

tal reserve account, which retains excess reserves beyond the financing account. The ratio of 

its excess reserves to the total insurance in force is mandated by Congress to be 2 percent, but 

the ratio fell to 0.53 percent in FY 2009. In addition to addressing the state of the housing 

finance system under HUD’s control, this measure addresses stemming foreclosures, protecting and educating consumers, and creating financially sustainable homeownership.

3. Reduce the average residential vacancy rate in Neighborhood Stabilization Program 

(NSP) investment areas.

Addressing the empty or damaged properties that are the consequence of the foreclosure crisis and associated mortgage fraud is crucial to stabilize neighborhoods with high foreclosure 

rates. The NSP is HUD’s primary tool for mitigating the effects of foreclosures on neighborhoods, and this measure will show the progress of this program, specifically, whether vacant 

homes in NSP investment areas are occupied or converted into other viable uses.

3a. Interim: Reduce the average residential vacancy rate in Neighborhood Stabilization 

Program Round 2 (NSP2) investment areas.

The nature of the competitive award process for NSP2 enabled HUD to immediately track 

the exact geography of NSP2 investment areas. The 5.17-percent rate of unoccupied homes 

in NSP2 jurisdictions during the fourth quarter of 2009 will serve as a baseline for progress. 

However, because NSP1 funds were distributed via formula grants, preprogram vacancy 

rates are more difficult to calculate. Vacancy rate data in NSP2 investment areas will be 

supplemented later in 2010 with a preprogram vacancy rate in NSP1 areas, which is currently being aggregated.

Goal 1 Additional Implementation Measures

y Reduce the number of markets with housing price declines.

y Increase the number of clients receiving effective prepurchase counseling or financial 

literacy training, with training effectiveness verified by comprehensive testing of counselors 

and clients.

y Reduce the defect rate of FHA loans to comparable industry rates from mortgage insurance 

claims.

y Reduce the disparity of homeownership rates across racial and ethnic categories, adjusted 

for age, income, and wealth.

y Reduce the number of households that lose their homes to foreclosure.

y Increase the number of affordable homeownership units produced.

Goal 2: Meet the Need for Quality Affordable Rental Homes

Outcome Measures

4. Reduce the number of households with worst case housing needs.

HUD’s biennial “Worst Case Needs” report to Congress has long provided an indicator of 

access to affordable rental homes. Households with “worst case needs” are defined as unassisted renters with very low incomes who have one or both of two “priority problems”—

paying more than 50 percent of their income for housing (“severe rent burden”) or living in 

severely substandard housing. In the latest published data from 2005, 5.99 million renter 

households had worst case housing needs, or 17.6 percent of U.S. renter households. HUD 

will update these estimates in the forthcoming 2007 study.
58 FY 2010–2015 HUD Strategic Plan

5. Increase the total number of affordable rental homes constructed and rehabilitated in 

communities with the greatest unmet needs.

This measure will complement the worst case housing needs measure to address the location of affordable housing with need. It will assess progress made to close the affordable 

housing gaps in communities with the greatest unmet needs.

5a. Interim: HUD programs will meet more of the growing need for affordable rental 

homes by serving 5.46 million families by the end of FY 2011, which is 207,000 more 

than in FY 2009.

This High Priority Performance Goal for the FY 2011 budget is only a 2-year goal and will 

require updating to project targets through FY 2015. HUD will use this interim measure 

while we develop a long-term measure addressing the location of HUD’s assisted housing in 

relation to where the greatest need exists.

6. Reduce homelessness (cross-cutting measure for Goals 2 and 3).

6a. Reduce the number of homeless families.

6b. Reduce the number of chronically homeless individuals.

6c. Reduce the number of homeless veterans to 59,000 by June 2012 (jointly with the 

Department of Veterans Affairs).

Strategies to reduce and end homelessness cut across goals that address meeting the need 

for affordable rental homes and utilizing housing as a platform for improving quality of life. 

HUD plans to define these three outcome measures more specifically in coordination with 

the United States Interagency Council on Homelessness (USICH), after USICH presents its 

Federal Strategic Plan to Prevent and End Homelessness to Congress on May 20, 2010. 

Goal 2 Additional Implementation Measures

y Improve the quality of housing and available community opportunities reported by HUD 

residents (cross-cutting measure for Goals 2, 3, and 4).

y Increase the proportion of HUD-assisted families in low-poverty and racially diverse communities (cross-cutting measure for Goals 2 and 4).

y Admit more extremely low-income households to HUD-funded rental assistance programs.

y Increase the number of affordable rental homes constructed and rehabilitated with federal 

assistance.

y Reduce the loss of unassisted privately owned rental units that are affordable to households 

with incomes below 50 percent of area median income.

y Reduce the loss of affordable rental homes in neighborhoods where HUD is supporting 

nonhousing investment (cross-cutting measure for Goals 2 and 4).

y Reduce the number of low-income renter households residing in housing with moderate or 

severe housing quality.

y Increase the rate of multifamily property owners renewing subsidy contracts with HUD.

Goal 3: Utilize Housing as a Platform for Improving Quality of Life

Outcome Measures

7. Increase the number of HUD-assisted households with school-aged children who have 

access to schools scoring at or above the local average.

HUD’s strategies to improve the educational outcomes of its residents recognize the reality 

that residential location influences the quality of educational opportunities and that location 

can either support or constrain individual educational achievements. HUD is working with 
Appendixes 59

the U.S. Department of Education to develop information on the schooling options available 

to HUD-assisted residents and will use this information to develop this outcome measure.

8. Provide access to information and opportunities by increasing the proportion of units 

in HUD public and multifamily housing with an available broadband Internet connection.

One of HUD’s strategies for improving educational outcomes and economic opportunity 

is to increase access to broadband Internet. HUD is pursuing this strategy jointly with the 

Federal Communications Commission and, together, performed an initial analysis on the 

availability of broadband to our residents. In 2009, 89 percent of multifamily and public 

housing units in buildings with 10 or more units were listed by a broadband Internet service 

provider as within their service area. As joint efforts progress and more data are available, 

HUD aims to measure more direct availability and Internet utilization by resident.

9. Improve the health of HUD-assisted residents.

The connection among housing, neighborhoods, and health has been well established. HUD 

is developing a multidimensional health and wellness measure that speaks to a range of 

strategies for improving the health of assisted residents. This measure will be complemented 

by an evaluation of healthcare costs of HUD-assisted households compared with similar 

households without HUD assistance. HUD will consider factors such as access to health 

care, use of primary and emergency care, and a wide array of health status indicators to 

assess the condition of residents’ health and the progress that HUD’s policies make in their 

improvement.

10. Increase the average income of HUD-assisted households.

The annual change in income for HUD-assisted residents measures whether residents are 

able to find and keep employment and how much they earn, a primary driver of economic 

security and self-sufficiency. Income will be tracked longitudinally, using the increases that 

each family or individual experiences over a year. Elderly and disabled residents will be 

delineated separately, including nonwage income, to track the progress of strategies related 

to these populations.

11. Improve the quality of housing and available community opportunities reported by 

HUD residents (cross-cutting measure for Goals 2, 3, and 4).

Resident surveys in the past have addressed satisfaction with the physical quality of homes 

and limited neighborhood characteristics. HUD will develop a resident survey that builds 

on previous survey efforts by integrating key issues such as access to transportation, health 

care, quality education, employment, and amenities.

Goal 3 Additional Implementation Measures

y Reduce homelessness (cross-cutting measure for Goals 2 and 3).

y Increase the number of households prevented from becoming homeless.

y Increase the number and percentage of 3-year-olds and kindergartners living in HUDassisted housing who demonstrate age-appropriate functioning across multiple domains of 

early learning.

y Increase the number and percentage of students living in HUD-assisted housing who are at 

or above grade level according to standardized assessments.

y Reduce the reliance on high-cost health services (number of emergency room visits, number 

of hospital visits) by recipients of HUD housing assistance.

y Reduce the prevalence and severity of diabetes, obesity, smoking, asthma, and other health 

issues in HUD housing.

y Reduce the prevalence of irritants leading to asthma in HUD housing.
60 FY 2010–2015 HUD Strategic Plan

y Increase the percentage of HUD-assisted households that have earned income as a primary 

source of income.

y Decrease the ratio of crime rate in HUD-assisted housing relative to the surrounding 

neighborhood, city, or county crime rate.

y Reduce the number of HUD-assisted housing residents with serious crime problems in their 

neighborhood, as reported in the American Housing Survey.

Goal 4: Build Inclusive and Sustainable Communities Free From Discrimination

Outcome Measures

The HUD-DOT-EPA Interagency Partnership for Sustainable Communities is currently drafting performance measures related to Goal 4. When the partnership reaches a conclusion, HUD will revisit the 

measures listed in this plan to ensure that they align with our federal agency partners.

12. Reduce the share of household income spent on the combined costs of housing and 

transportation in communities that receive assistance from the Office of Sustainable 

Housing and Communities.

This performance goal focuses on Sustainable Housing and Communities programs that 

increase location efficiency and sustainability and supports informing consumers about total 

housing costs. HUD will develop a baseline for communities served through the Sustainable 

Communities programs and measure ongoing progress in locating housing for greater 

economic and environmental sustainability.

13. Complete cost-effective energy and green retrofits of 159,000 public, assisted, and 

other HUD-supported affordable homes by the end of 2011.

This High Priority Performance Goal from the FY 2011 budget addresses strategies to increase energy efficiency and to incorporate sustainability principles into HUD programs. It 

is only a 2-year goal and will require updating to project targets through FY 2015.

14. Increase the proportion of HUD-assisted families in low-poverty and racially diverse 

communities (cross-cutting measure for Goals 2 and 4).

Fair housing is at the core of HUD’s mission. A central goal of this Strategic Plan is to create 

opportunities for low-income people residing in low-income neighborhoods. This measure 

will demonstrate the opportunities available to HUD’s residents and simultaneously track the 

Department’s efforts in ensuring open, diverse, and equitable communities that increase these 

opportunities. In 2008, HUD residents lived in communities where poverty rates averaged 

21 percent and minorities made up 47 percent of the population. HUD’s goal is to ensure its 

investments promote equal access to more economically and ethnically diverse communities.

15. Increase the percentage of Gulf Coast homes in Louisiana, Mississippi, and Texas 

that have been reoccupied or converted to another viable purpose after being severely 

impacted by Hurricanes Katrina and Rita in 2005.

This measure tracks the efforts of the Department in the Gulf Coast to rebuild housing, infrastructure, amenities, and jobs. HUD will track the individual homes that sustained major 

and severe damage during Hurricanes Katrina and Rita—75.4 percent are occupied as of 

March 2010. In addition, HUD will work with our partners in the Gulf Coast to identify 

which of the remaining unoccupied homes have been demolished and converted to another 

use, such as green space. This is an immediate measure, which HUD plans to supplement 

with broader performance measures for disasters. The variable nature of disasters makes it 

difficult to measure resiliency and recovery in a single measure that covers all disasters and 

addresses federal efforts. This issue has been identified by the White House Long-Term Disaster Recovery Working Group, and HUD continues to coordinate with the Department of 

Homeland Security and other agencies as they draft the National Disaster Recovery Framework.
Appendixes 61

Goal 4 Additional Implementation Measures

y Improve the quality of housing and available community opportunities reported by HUD 

residents (cross-cutting measure for Goals 2, 3, and 4).

y Increase the number of people employed in communities with HUD investments.

y Increase the number of HUD-assisted residents hired in or trained by agencies or companies 

receiving HUD funds and compare this number with construction contracts (Section 3 

employment program).

y Decrease the number of vacant residential and commercial properties in HUD-funded 

investment areas.

y Reduce the number of households traveling more than 30 miles or more than 30 minutes 

to work.

y Reduce the number of Vehicle Miles Traveled in major metropolitan regions.

y Reduce the number of homes with indoor environmental hazards, including physical 

problems, radon, mold, lead-based paint hazards, and pests.

y Decrease the proportion of all households in communities with concentrated poverty.

y Decrease the proportion of all households in racially segregated communities.

y Reduce the incidence of housing discrimination, as measured through housing discrimination studies.

y Increase the percentage of people with disabilities living outside institutional settings.

y Increase the number of newly constructed multifamily properties compliant with accessibility provisions of the Fair Housing Act.

y Increase the proportion of Consolidated Plans that incorporate disaster-resiliency and 

sustainability principles and that are linked to Federal Emergency Management Agency 

hazard mitigation plans.

y Decrease the number of grantees receiving high-risk assessments through the Section 8 

Management Assessment Program, Public Housing Assessment System, Real Estate Assessment Center, and Community Planning and Development risk assessments.

y Increase the number of successful technical assistance engagements, based on a survey of 

recipients.

y Reduce the loss of affordable rental homes in neighborhoods where HUD is supporting 

nonhousing investment (cross-cutting measure for Goals 2 and 4).

Goal 5: Transform the Way HUD Does Business

Outcome Measures

16. Make HUD the “Most Improved Large Agency” in the Best Places to Work in the 

Federal Government report.

HUD received an overall index score of 58.0 in the 2009 Best Places to Work in the Federal 

Government report produced by the Partnership for Public Service and American University’s Institute for the Study of Public Policy Implementation. This score, which measures the 

performance of agencies and agency subcomponents related to employee satisfaction and 

commitment, placed HUD 24th out of 30 large agencies. The most improved large agency 

from 2007 to 2009 was the Small Business Administration, which improved its index score 

from 43.4 to 56.5, an increase of 30.10 percent.
62 FY 2010–2015 HUD Strategic Plan

17. Increase the percentage of HUD partners who are “satisfied” or “very satisfied” with 

the “Timeliness of Decision-Making at HUD.”

A critical dimension of customer service is HUD’s ability to make timely decisions. In 

HUD’s 2005 Partner Satisfaction with HUD’s Performance survey, only 53.0 percent of HUD 

partners were “satisfied” or “very satisfied” with how quickly HUD made decisions.

18. Increase the percentage of HUD partners who are “satisfied” or “very satisfied” with 

“Employee’s Knowledge, Skills, and Ability.”

For HUD to become a high-performing organization, it is crucial that HUD employees have 

the knowledge, skills, and abilities to perform at their best. In HUD’s 2005 Partner Satisfaction with HUD’s Performance survey, 76.2 percent of HUD partners were “satisfied” or “very 

satisfied” with employees’ knowledge, skills, and abilities.

19. Increase the percentage of employees who “agree” or “strongly agree” they are given a 

real opportunity to improve their skills in their organization.

A motivated and skilled workforce has access to training and leadership development opportunities so that employees can reach their full potential. In the 2008 Federal Human 

Capital Survey, 51.2 percent of HUD employees responded positively that they were given 

a real opportunity to improve their skills, which compares unfavorably to the 64 percent 

positive response in the governmentwide ranking.

20. Increase the number of decisions delegated to field offices.

To measure HUD’s successful transition to a place-based decisionmaking model, HUD will 

be proactive in identifying decisions that can be made in the field and do not need to be 

escalated to headquarters. Increasing decisions made in the field should lead to improved 

response time and quality of local input.

21. Reduce the number of burdensome regulations and reports.

Burdensome regulations and reports limit the effectiveness of HUD employees and frustrate 

HUD partners. To create a more streamlined organization, HUD will eliminate the most 

counterproductive rules and requirements after soliciting feedback from HUD partners and 

employees. In the 2005 Partner Satisfaction with HUD’s Performance survey, only 47.6 percent 

of HUD partners were satisfied with the time commitment needed to comply with HUD 

reporting, a clear indicator of the frustration faced by HUD partners.

22. Reduce end-to-end hiring time.

The current federal hiring process is lengthy, slowed down by burdensome requirements, 

bureaucratic processes, and outdated technology systems. The hiring reform initiative plans 

to focus on four areas of hiring—timeliness, plain language and streamlined announcements, communication with applicants, and involvement of hiring managers to ensure we 

hire the best quality people. We plan to reduce end-to-end hiring time to 79 days.

Goal 5 Additional Implementation Measures

y Increase the percentage of employees who “agree” or “strongly agree” that physical conditions (for example, noise level, temperature, lighting, cleanliness in the workplace) allow 

employees to perform their jobs well. 

y Increase the percentage of HUD partners who are “satisfied” or “very satisfied” with “HUD’s 

Overall Performance.” 

y Increase the retention rate of high-performing staff.

y Increase the percentage of employees who believe their performance reviews and ratings 

were fair and meaningful.

y Improve customer satisfaction with internal processes.
Appendixes 63

y Reduce the number of sick days used.

y Improve collaboration between management and labor (for example, the number of 

grievances filed).

y Increase the energy performance of the HUD headquarters building. 

y Improve the perception of openness of HUD workspace to support collaboration and 

transparency. 

y Increase HUD operations that support HUD Sustainability Principles.

y Increase the percentage of employees who “agree” or “strongly agree” that their work unit is 

able to recruit people with the right skills.

y Increase the percentage of employees who “agree” or “strongly agree” that the workforce has 

the job-relevant knowledge and skills necessary to accomplish organizational goals. 
64 FY 2010–2015 HUD Strategic Plan

External Factors

Across the five goals of this Strategic Plan, a number of consistent themes have emerged regarding 

the external factors that could work as barriers to their achievement. These themes are as follows:

y Broad economic trends, particularly regarding capital market liquidity, can potentially swamp 

the actions that HUD and its partners undertake.

y Logistical hurdles associated with local capacity, coordination challenges, legislative 

requirements, and third-party participation can significantly slow progress.

y A lack of good data and clearly defined outcome measures make the establishment of 

evidence-based policy quite difficult.

Broad Economic Trends

Although the poor performance of housing markets was the initial trigger for the economic 

recession, how the broad macroeconomy rebounds will be important for determining the 

effectiveness of HUD’s actions in achieving all the strategic goals. The recession has exacerbated 

troubles in the housing sector and added stresses in every community. Sluggish income growth, 

job losses, and declining home prices have combined to dampen consumer confidence, limit 

home purchase and broader economic activity, and stifle growth and innovation. In addition, 

they have reduced the ability of families to weather emergencies, such as health problems or 

divorce, and thus have reduced family stability and increased strains on service providers.

Equally important will be the availability of private capital to support the activities that generate stability and growth. Tightening credit markets and lack of liquidity in the capital markets 

serve to limit the number of new homebuyers approved for mortgages. In recent years, much 

less capital has been available to support rental markets in terms of new construction, rehabilitation, and preservation of affordable units. Moreover, investments to create community growth 

and to support innovations that will drive energy-efficient housing and sustainable growth, 

although facilitated with public funds, will originate primarily from private sources, and these 

sources have been more limited in the current economic environment.

The performance of the U.S. economy relies on the independent decisions of millions of families 

and employers and therefore has a scope well beyond HUD’s purview. In addition, private capital flows within the economy depend on intangibles beyond simple economics, including marketing and idiosyncratic circumstances (that is, serendipity), which make it difficult to predict 

and control. HUD’s success in achieving its strategic goals will rely in important ways on how 

these decisions and events interact to produce economic growth and capital investment patterns. 

Logistical Hurdles

Achieving any outcome is heavily dependent on the “nuts and bolts” of program execution, 

in which logistics play a major role. In the context of HUD’s strategic goals, external logistical 

hurdles arise along four dimensions: coordination, legislative requirements, local capacity, and 

third-party participation.

Coordination. For community development to be holistic and sustainable, different agencies 

and different levels of government must work together. Thus, lack of coordination among 

federal agencies and among federal agencies and regional, state, and local governments is a 

Appendix C
Appendixes 65

potentially major impediment to achieving these goals. Although federal agencies such as HUD, 

the Department of Transportation, the Department of Energy, and the Environmental Protection 

Agency have signed memoranda of understanding to develop interagency sustainability initiatives, how these partnerships operate on the ground in the field remains to be seen. Concerns 

include whether effective cooperation across jurisdictions within a region is equally possible in 

all metropolitan areas; whether collaboration involving multiple agents with differing protocols, 

expertise, and cultures is sustainable over time; and who at the local level will assume responsibility for coordinating partnerships. Although HUD is aware of many examples of successful 

coordination and collaboration, the Department also recognizes a sizable number of failures. 

Although HUD will seek to design programs and incentives to increase the probability of success in this area, it is impossible to guarantee that the disparate agencies and organizations will 

cooperate effectively.

Legislative requirements. The legislative process is a key consideration, because, ultimately, it 

defines and shapes HUD’s programs and affects HUD’s ability to make changes to them. Because 

the strategic goals involve supporting new programs, streamlining and enhancing existing programs, expanding HUD’s authority, and changing how resources are directed, the workings of 

the legislative process will be quite important. In addition, the relationships between HUD and 

other agencies, including how regulations and programs are aligned, will need to be redefined 

for a number of the strategic goals to be reached. Finally, legislation may be required to change 

how HUD does business, including introducing new, more flexible structures for funding salaries and expenses, technology investments, research, development, and technical assistance and 

implementing new procedures for procurement, hiring, and partnering. All of these requirements involve navigating a political process that incorporates the views and interests of many 

constituents, including legislators, advocates, industry groups, and citizens. Members of each of 

these groups have the ability to change, slow, or even stop the legislative process and to influence the extent to which strategic goals are achieved.

Local capacity. HUD’s programs operate in a decentralized manner, so their success depends 

on the ability of local organizations to use allocated funds efficiently to develop and provide 

effective services. Recent developments have placed this capacity at risk in some locations. Many 

local governments and nonprofit organizations are struggling to stay afloat financially. Staff sizes 

have shrunken considerably as have other assets, a reality that limits the ability of the organizations on the ground to carry out their sizeable mandates. Even when organizations and governments are not in financial hardship, they may lack the capacity or will to further HUD’s goals at 

the local level. For example, local governments may not have the capacity to adequately enforce 

fair housing laws. Similarly, local zoning laws may prevent smart growth development, constraining the sustainability agenda. Capacity can also be an issue for users of HUD services. For 

example, many consumers lack an understanding of the homebuying process or basic financial 

information. These shortfalls make the effective use of HUD programs more difficult and retard 

the advancement of particular HUD strategic goals. In all of these cases, the achievement of the 

strategic goals is subject to the ability of government agencies, nonprofit and other organizations, 

and individuals to use their resources to leverage programmatic incentives to create lasting change.

Third-party participation. As noted, much of the work that HUD supports happens through 

the private market, outside the direct control of federal, state, and local governments. 

Banks and investors play a major role in providing financing for both ownership and rental 

housing and for determining the character of community development. Similarly, HUD’s rental 

assistance programs place considerable reliance on private owners of housing. Without significant participation by these private agents, even if a program or initiative establishes appropriate 

incentives and objectives, achieving the strategic goals is unlikely.
66 FY 2010–2015 HUD Strategic Plan

Lack of Data and Measures

A key requirement for successfully accomplishing goals is the ability to measure progress. Many 

of the outcomes that the strategic goals of this Plan seek to achieve—such as increasing the 

capacity of local governments and nonprofit organizations or increasing the financial literacy of 

Americans—are difficult to measure. In some instances, the difficulties arise because the data 

simply do not currently exist. For example, good data on community development or location 

efficiency at all levels are lacking. In other situations, logistical issues loom, because HUD must 

partner with local, state, and federal agencies to obtain accurate and reliable data. Existing data 

on health, education, and employment status are necessary to monitor performance and track 

success for many of HUD’s goals, yet these data are often restricted because of confidentiality 

concerns and systems limitations, among other reasons.

Because of the wide range of issues that HUD’s strategic goals touch, the availability of data 

and measures of performance depends on cooperation and support from people and organizations beyond HUD’s control. To the extent that these other partners have competing demands, 

resource constraints, and different priorities, HUD’s ability to overcome data and measurement 

issues will be impaired.
Appendixes 67

History of HUD

1937 The U.S. Housing Act of 1937 establishes the public housing program to help lower 

income families most in need of housing.

1949 The U.S. Housing Act of 1949 establishes the goal of “a decent home and suitable 

environment” for every family and sets up an urban renewal program.

1965 The Department of Housing and Urban Development Act of 1965 creates HUD as a 

Cabinet-level agency.

1966 Robert C. Weaver becomes the first HUD Secretary, January 18, under the presidency of 

Lyndon B. Johnson. 

1968 Riots in major cities follow the assassination of Dr. Martin Luther King, Jr. The Civil 

Rights Act of 1968 (also known as the Fair Housing Act) outlaws most housing discrimination 

and gives HUD enforcement responsibility. The Housing Act of 1968 establishes the 

Government National Mortgage Association (Ginnie Mae) to expand the availability of mortgage 

funds for moderate-income families using government-guaranteed mortgage-backed securities. 

1969 Robert C. Wood receives a recess appointment as HUD Secretary, January 7. President 

Richard M. Nixon appoints George C. Romney HUD Secretary, January 22. 

1970 The Housing and Urban Development Act of 1970 introduces the Federal Experimental 

Housing Allowance Program and Community Development Corporation. 

1972 Pruitt-Igoe public housing buildings in St. Louis, which had gained notoriety for their 

poor living conditions, are demolished less than 20 years after they were built. 

1973 President Nixon declares a moratorium on housing and community development 

assistance. James T. Lynn becomes HUD Secretary, February 2. Section 504 of the 

Rehabilitation Act of 1973 prohibits discrimination against people with disabilities in programs 

or activities receiving federal financial assistance.

1974 The Housing and Community Development Act consolidates programs into the 

Community Development Block Grant program. Section 8 tenant-based certificates increase 

low-income tenants’ choice of housing. The Fair Housing Act is expanded to include prohibition 

against sex discrimination. Gerald R. Ford becomes president following President Nixon’s 

resignation.

1975 Carla A. Hills is appointed HUD Secretary, March 10, under the presidency of 

Gerald R. Ford. 

Appendix D
68 FY 2010–2015 HUD Strategic Plan

1977 President James Carter appoints Patricia R. Harris as HUD Secretary, January 23. Urban 

Development Action Grants give distressed communities funds for residential or nonresidential use. 

1979 Moon Landrieu becomes HUD Secretary, September 24, under the presidency of James 

Carter. Inflation hits 19 percent, seriously affecting homebuying and home mortgage loans.

1980 The Depository Institutions’ Deregulation and Monetary Control Act of 1980 changes 

rules governing thrift institutions and expands alternative mortgages.

1981 President Ronald Reagan appoints Samuel R. Pierce, Jr., as HUD Secretary, January 23. 

Interest rates for Federal Housing Administration (FHA)-insured mortgages peak at 15.17 percent 

(up from 7 percent in 1972). 

1983 The Housing and Urban-Rural Recovery Act of 1983 begins Housing Development Action 

Grant and Rental Rehabilitation programs. 

1986 Created by the Tax Reform Act of 1986, the Low-Income Housing Tax Credit Program 

gives states the equivalent of nearly $5 billion in annual budget authority to issue tax credits for 

the acquisition, rehabilitation, or new construction of rental housing targeted to lower income 

households.

1987 The Stewart B. McKinney Act sets up programs to help communities deal with 

homelessness. 

1988 The Indian Housing Act gives HUD new responsibilities for housing needs of Native 

Americans and Alaska Indians. The Housing and Community Development Act allows sale of 

public housing to resident management corporations. The Fair Housing Amendments Act makes 

it easier for victims of discrimination to sue, stiffens penalties for offenders, and is expanded to 

cover familial status and disability discrimination. 

1989 President George H. W. Bush appoints Jack F. Kemp as HUD Secretary, February 13. 

The Financial Institutions’ Reform, Recovery, and Enforcement Act bails out failing thrift 

institutions. 

1990 The Cranston-Gonzalez National Affordable Housing Act emphasizes homeownership 

and tenant-based assistance and launches HOME housing block grants. The Low-Income 

Housing Preservation and Residential Homeownership Act of 1990 fortifies the federal 

commitment to preservation of assisted low-income, multifamily housing. 

1992 The Federal Housing Enterprises’ Financial Safety and Soundness Act of 1992 creates the 

HUD Office of Federal Housing Enterprise Oversight to provide public oversight of the Federal 

National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation 

(Freddie Mac). 

1993 President William J. Clinton appoints Henry G. Cisneros as Secretary of HUD, January 22. 

The Empowerment Zone and Enterprise Community program becomes law as part of the 

Omnibus Budget Reconciliation Act of 1993. 
Appendixes 69

1995 The “Blueprint for Reinvention of HUD” proposes sweeping changes in public housing 

reform and the FHA and also consolidation of other programs into three block grants. 

1996 Homeownership totals 66.3 million American households, the largest number ever.

1997 President Clinton names Andrew M. Cuomo to be Secretary of HUD, the first 

appointment from within the Department. 

1998 HUD opens the Enforcement Center to take action against HUD-assisted multifamily 

property owners and other HUD fund recipients who violate laws and regulations. Congress 

approves Public Housing reforms to reduce segregation by race and income, encourage and 

reward work, bring more working families into public housing, and increase the availability of 

subsidized housing for very poor families. 

2000 America’s homeownership rate reaches a new record high of 67.7 percent in the third 

quarter of 2000. A total of 71.6 million American families own their homes—more than at any 

time in American history. 

2001 President George W. Bush names Mel Martinez to be Secretary of HUD. The U.S. Senate 

unanimously confirms him on January 23. 

2004 President George W. Bush appoints Alphonso Jackson to be Secretary of HUD. The U.S. 

Senate unanimously confirms him on March 31. Mr. Jackson is the first Deputy Secretary to 

subsequently be named Secretary.

2008 President George W. Bush’s appointee Steve Preston is sworn in as the 14th HUD 

Secretary on June 5, after being unanimously confirmed by the Senate.

2009 President Barack Obama names Shaun Donovan to be Secretary of HUD. After the U.S. 

Senate confirms his nomination to confront the challenges facing today’s housing market, he is 

sworn in as the 15th Secretary of the U.S. Department of Housing and Urban Development on 

January 26.
70 FY 2010–2015 HUD Strategic Plan

HUD Organizational Chart 

Appendix E

Assistant Secretary for 

Public Affairs

(TBD)

Assistant Secretary for 

Housing, Federal Housing 

Commissioner

D. Stevens

Chief of Staff

L. Blatchford

Secretary Shaun Donovan

Assistant Secretary for 

Congressional and 

Intergovernmental Relations

P. Kovar

Assistant Secretary for

Community Planning and 

Development

M. Marquez

Center for Faith-Based and 

Neighborhood Partnerships

M. Linton

Assistant Secretary for 

Public and Indian Housing

S. Henriquez

Office of General Counsel

H. Kanovsky

Chief Financial Officer

D. Criscitello

Chief Operating Officer

E. Richman Assistant Deputy Secretary for 

Field Policy and 

Management

(TBD)

Assistant Secretary for 

Fair Housing and

Equal Opportunity

J. Trasviña

Office of Inspector General

K. Donohue

Chief Information Officer

J. Williams Office of Healthy Homes and 

Lead Hazard Control

J. Gant

Assistant Secretary for

Policy Development 

and Research

R. Bostic

Office of Sustainable Housing 

and Communities

S. Poticha

Chief Human Capital Officer

Office of Small and J. Payne

Disadvantaged 

Business Utilization

A. McGill-Moore

President, Government National 

Mortgage Association

T. Tozer

Office of Strategic Planning 

and Management

P. Grace

Chief Procurement Officer

J. Bryon

Office of Disaster and 

Emergency Management

D. Kern

Office of Departmental Equal 

Employment Opportunity

L. Bradford-Washington

Office of Departmental 

Operations and Coordination

I. Banks-Dubose

Deputy Secretary

R. Sims
Appendixes 71

Implementing HUD Programs Detail 

Appendix F

Programs Includes the following programs

(programs that are a subset of other programs are also listed)

Brownfields Economic Development Initiative

Community Development Block Grant (CDBG) (Catalytic Competition)

CDBG (Disaster Recovery Assistance)

CDBG (Entitlement) CDBG (Non-Entitlement) for States and Small Cities; CDBG for Insular Areas

CDBG (Section 108 Loan Guarantee)

CDBG (University Community Fund)

Empowerment Zones Renewal Communities; Enterprise Communities

HOME Investment Partnerships Program

Homeless Assistance Grants (HAG) Section 8 Moderate Rehabilitation Single Room Occupancy (SRO); Supportive Housing 

Program (SHP); Shelter Plus Care; Emergency Shelter Grant (ESG) Program

Housing Opportunities for Persons with AIDS (HOPWA)

Housing Trust Fund

Neighborhood Stabilization Program (NSP)

Rural Housing and Economic Development Program

Section 4 Capacity Building 

Self-Help Homeownership and Opportunity Program (SHOP)

Fair Housing (Enforcement and Compliance) Title VIII; Section 504; Title VI; Section 3 of Americans with Disabilities Act; Section 109

Fair Housing Assistance Program (FHAP)

Fair Housing Initiatives Program (FHIP)

Section 3 Program

FHA Home Equity Conversion Mortgage (HECM) Program (Section 255)

FHA Hospitals and Nursing Homes New Construction or Substantial Rehabilitation of Nursing Homes, Intermediate Care Facilities, 

Board and Care Homes, and Assisted-Living Facilities (Section 232); Purchase or Refinancing 

of Existing Facilitied (Sections 232/223(f)); Two Year Operating Loss Loans (Section 223(d)); 

Hospitals (Section 242)

FHA Multifamily Housing Mortgage Insurance for Single Room Occupancy (SRO) Projects; Manufactured Home Parks 

(Section 207); Combination and Manufactured Home Lot Loans; Cooperative Housing (Section 

213); Mortgage and Major Home Improvement and Rental Housing Loan Insurance for Urban 

Renewal Areas (Section 220); Multifamily Rental and Cooperative Housing for Moderate Income 

Families and Elderly, Market Interest Rate (Section 221); Existing Multifamily Rental Housing 

(Section 207/223(f)); Mortgage Insurance for Rental Housing for the Elderly (Section 231); 

Supplemental Loans for Multifamily Projects (Section 241); Multifamily Mortgage Risk-Sharing 

Program (Sections 542(b) and 542(c)); Mark to Market Program

FHA Single Family Forward Mortgage Program One- to Four-Family Home and Condominium Mortgage Insurance (Section 203(b)); Mortgage 

Insurance for Disaster Victims (Sec 203(h)); Rehabilitation Loan Insurance (Section 203(k)); 

Single Family Cooperative Housing (Section 203(n)); Single Family Property Disposition 

Program (204(g)); Mortgage Insurance for Older, Declining Areas (Section 223(e)); Mortgage 

Insurance for Condominium Units (Sections 234(c) and 234(d)); Graduated Payment Mortgage 

(GPM) (Section 245(a)); Adjustable Rate Mortgages (ARMS) (Section 251); Growing Equity 

Mortgages (GEMS) (Section 245(a)); Manufactured Homes Loan Insurance (Title I); Property 

Improvement Loan Insurance (Title I); Good Neighbor Next Door; Insured Mortgages on Hawaiian 

Home Lands (Section 247); Insured Mortgages on Indian Land (Section 248); Accelerated 

Claim and Asset Disposition demonstration program (Section 601); Energy Efficient Mortgages 

Housing Counseling Assistance Foreclosure Prevention, Pre-purchase Homebuyer, HECM, Rental, Homeless, Post-purchase 

Homebuyer, and Homebuyer Education, Voucher Homeownership

Manufactured Housing Programs Construction and Safety Program, Dispute Resolution Program, and Manufactured Home 

Installation Program

Multifamily Housing Service Coordinators Subset of Section 202

The following table provides additional detail for the tables listed on pages 47 through 50 of the Strategic Plan.

nn Community Planning and Development

nn Fair Housing and Equal Opportunity

nn FHA/Housing

nn Ginnie Mae

nn Healthy Homes and Lead Hazard Control

nn Public and Indian Housing 
72 FY 2010–2015 HUD Strategic Plan

Real Estate Settlement Procedures Act (RESPA)

Section 8 Project-Based Rental Assistance (PBRA) Rental Housing Assistance (Section 236)

Secure and Fair Enforcement (SAFE) 

Supportive Housing for the Elderly (Section 202) Assisted Living Conversion Program (ALCP); Emergency Capital Repairs Program. Does not 

include Multifamily Housing Service Coordinators.

Supportive Housing for Persons with Disabilities (Section 811)

Guarantees of Mortgage-Backed Securities

Targeted Lending Initiative

Healthy Homes

Lead-Based Paint Hazard Reduction

Early Childhood Education Facilities Subset of Public Housing Capital Fund

Family Self-Sufficiency (FSS) Program Subset of Public Housing Capital Fund

Federal Guarantees for Financing for Tribal Housing Activities (Title VI) Subset of Native American Housing Block Grants

HUD-Veterans Affairs Supportive Housing (VASH) Subset of TBRA

Indian Community Development Block Grant (CDBG)

Indian Housing Loan Guarantee Fund (Section 184)

Native American Housing Block Grants Does not include Title VI

Native Hawaiian Housing Block Grants

Native Hawaiian Loan Guarantee Fund (Section 184A)

Public Housing Capital Fund Does not include ROSS, FSS, Early Childhood Education Facilities

Public Housing Operating Fund

Resident Opportunity and Self-Sufficiency (ROSS) Program Subset of Public Housing Capital Fund

Revitalization of Severely Distressed Public Housing (Hope VI)

Tenant-Based Rental Assistance (TBRA)/Housing Choice Vouchers Permanent Supportive Housing Vouchers; Non-Elderly/Disabled Vouchers; Project-Based 

Voucher Program; Family Unification Vouchers; Public Housing Homeownership (Section 32); 

Homeownership Voucher Assistance; Public and Indian Housing Section 811 Vouchers. Does 

not include VASH.

Programs Includes the following programs

(programs that are a subset of other programs are also listed)

nn Community Planning and Development

nn Fair Housing and Equal Opportunity

nn FHA/Housing

nn Ginnie Mae

nn Healthy Homes and Lead Hazard Control

nn Public and Indian Housing 
Appendixes 73

Evaluating Our Success 

Program Evaluation Overview

The Government Performance and Results Act (GPRA) calls for agencies to use program evaluations to assess the manner and extent to which federal programs achieve intended objectives. 

The statute further calls for an agency’s Performance Plan to include a summary of the findings 

of program evaluations completed in the fiscal year covered in the report. Finally, GPRA calls for 

a schedule for future program evaluations to be presented in Strategic Plans.

In response to these mandates, HUD reports its completed program evaluations annually in 

Department of Housing and Urban Development Performance and Accountability Reports. This report 

integrates feedback from HUD Office of Inspector General reports, Government Accountability 

Office reports, and Program Assessment Rating Tool (PART) reviews to demonstrate how HUD 

might achieve results more effectively or address future conditions. The Department considered 

these in writing the strategies presented in this Strategic Plan.

The following table presents the schedule for future HUD program evaluations, which aim to 

assess the manner and extent to which HUD is achieving our intended objectives. These evaluations represent a cross-section of HUD programs that must be well managed in full support of 

budget-performance integration. HUD defines the methodologies used in the following table.

Program Evaluation Methodologies

Impact evaluations use empirical data to compare measurable program outcomes with what 

would have happened in the absence of the program. Impact evaluations represent the highest 

standard of program evaluations.

Outcome evaluations assess the extent to which programs achieve their outcome-oriented 

objectives. Outcome evaluations use quantitative methods to assess program effectiveness.

Process evaluations assess the extent to which a program is operating as intended. Although 

a true process evaluation will use objective measurement and analysis, it does not address the 

causal links between intervention and outcome. Cost-benefit and cost-effectiveness analyses 

compare a program’s outputs or outcomes with the costs to produce them. This type of analysis 

conforms to program evaluation when applied systematically to existing programs and when 

measurable outputs and outcomes are monetized.

Appendix G
74 FY 2010–2015 HUD Strategic Plan

Evaluation

Strategic Goal Alignment Methodology Description FY 

Completed 1 2 3 4 5

HUD Program Evaluation Plan (FY 2010–2015)

All evaluations will be conducted by an independent contractor, unless otherwise noted.

Community Development Block 

Grant (CDBG) Targeting 

Evaluation

l Outcome* An assessment of whether CDBG funding relative to the level of 

community development needs affects CDBG funding patterns 2011

Tenant-Based Rental Assistance 

Cost Model l Process An assessment of how market conditions and other factors affect the subsidy level needed for project-based housing 2011

Project Reunite l Processr An assessment of the economic and social benefits of reuniting male 

ex-offenders with their families in public housing 2012

Healthy Neighborhoods l Outcome

An assessment of the health improvements and cost savings from 

the use of the National Institutes of Health “With Every Heartbeat 

is Life” heart health curriculum in public housing

2012

Homelessness Prevention l Process An assessment of the results achieved by the homeless prevention 

activities funded through the Recovery Act. 2013

Innovative Rural Development 

Initiative l Process A before-and-after examination of projects conducted under this new initiative 2013

Native American Housing Needs 

Assessment l Process

An assessment of housing conditions among Native Americans and 

an assessment of how these conditions are affected by housing 

assistance programs

2013

Neighborhood Stabilization 

Program l l Outcome An assessment of the results achieved by the neighborhood stabilization activities funded through the Recovery Act. 2013

Rapid Rehousing l l Process and outcome An assessment of the rapid rehousing model of homelessness 

assistance for families. 2013

Sustainable Building in Indian 

Country l l l Outcome An evaluation of sustainable building practices in different parts of the country to improve quality of housing in Native American lands 2013

Energy Retrofits l Outcome An estimate of the energy savings generated by energy retrofit 

programs funded through the Recovery Act 2014

Impact of Housing and Service 

Intervention for Homeless 

Families

l l Impact A random-assignment study to determine whether different 

interventions yield better outcomes for homeless families 2014

Prepurchase Housing Counseling l Impact A random-assignment study to determine whether counseling 

promotes effective homeownership 2014

Rent Reform Demonstration l Impact A random-assignment study to determine outcomes associated with 

alternative rent structures 2014

Choice Neighborhoods l l Outcome A before-and-after assessment and comparison with similar 

nonprogram neighborhoods 2015

Family Self-Sufficiency l Impact A random-assignment study to determine the effectiveness of family 

self-sufficiency and its components 2017

* To be conducted by an independent contractor and inhouse staff.
Appendixes 75

Appendix H

Notes

1 Standard and Poors, S&P/Case-Shiller. “U.S. Home Price Values, Non-Seasonally Adjusted.” 

http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/

us/?indexId=spusa-cashpidff--p-us----. (Accessed April 22, 2010.) (Composite home price 

index for 20 of the largest metropolitan areas.)

2 U.S. Department of Housing and Urban Development (HUD), Office of Policy Development 

and Research (PD&R). January 2010. “Root Causes of the Foreclosure Crisis.” http://www.

huduser.org/portal/publications/hsgfin/foreclosure_09.html).

3 Gruenstein Bocian, Debbie, Keith S. Ernst, and Wei Li. 2006. “Unfair Lending: The Effects 

of Race and Ethnicity on the Price of the Subprime Mortgages.” Durham, NC: Center for 

Responsible Lending. Page 16. http://www.responsiblelending.org/mortgage-lending/researchanalysis/rr011-Unfair_Lending-0506.pdf. (Accessed April 22, 2010.)

4 Negative Equity Report, Fourth Quarter 2010. February 23, 2010. http://www.facorelogic.

com/newsroom/marketstudies/negative-equity-report.jsp.

5 Federal Bureau of Investigation. http://www.fbi.gov/publications.htm.

6 U.S. Department of Housing and Urban Development (HUD), Office of Policy Development 

and Research (PD&R). 2010 (forthcoming). “Worst Case Housing Needs 2007: Report to 

Congress.” Available from www.huduser.org. Calculated from Table A-3.

7 HUD, PD&R. 2010 (forthcoming). “Worst Case Housing Needs 2007: Report to Congress.” 

Available from www.huduser.org. Calculated from Table A-3.

8 HUD, PD&R. May 1996. Source Assessment of American Indian Housing Needs and 

Program. Final Report. 

9 HUD. July 2009. “The 2008 Annual Homeless Assessment Report.” http://www.huduser.org/

portal/publications/povsoc/ahar_4.html.

10 HUD. July 2009. “The 2008 Annual Homeless Assessment Report.” http://www.huduser.org/

portal/publications/povsoc/ahar_4.html.

11 HUD, PD&R. 2010 (forthcoming). “Worst Case Housing Needs 2007: Report to Congress.” 

Available from www.huduser.org. See Exhibit 3-2.

12 HUD, PD&R. 2009. “American Housing Survey Rental Market Dynamics: 2005–2007.” 

http://www.huduser.org/portal/Datasets/cinch/cinch07/cinch05-07.html.

13 HUD, PD&R. 2010 (forthcoming). “Worst Case Housing Needs 2007: Report to Congress.” 

Available from www.huduser.org. Disabled households in this estimate include nonelderly 

disabled adult households as well as households with children that had an adult with a 

disability present. Pages 16–17.

14 U.S. Census Bureau. “National Population Projections Summary Table 3: Projections of the 

Population by Selected Age Groups and Sex for the United States: 2010 to 2050.” http://www.

census.gov/population/www/projections/2008projections.html. (Accessed April 23, 2010.)

15 HUD PD&R. 2008. “Multifamily Property Managers’ Satisfaction with Service Coordination.” 

http://www.huduser.org/portal/publications/hsgspec/serv_coord.html.

16 HUD PD&R. Unpublished PD&R tabulations of 2008 National Health Interview Survey data. 

Data are available at http://www.cdc.gov/NCHS/nhis/nhis_2008_data_release.htm. (Accessed 

April 23, 2010.)
76 FY 2010–2015 HUD Strategic Plan

17 Centers for Disease Control and Prevention (CDC). http://www.cdc.gov/hiv/topics/testing/, citing 

M. Glynn and P. Rhodes. Estimated HIV prevalence in the United States at the end of 2003. 

Link to non-CDC website. National HIV Prevention Conference, June 2005, Atlanta. Abstract 

T1-B1101 (1 to 1.2 million people estimate); H.I. Hall, S. Ruiguang, P. Rhodes, et al. Estimation 

of HIV incidence in the United States. JAMA. 2008. 300: 520–529 (56,300 new cases in 2006); 

http://www.cdc.gov/hiv/topics/surveillance/resources/slides/incidence/index.htm, Slide 4 

(65 percent of new reported cases).

18 HUD. July 2009. “The 2008 Annual Homeless Assessment Report.” http://www.huduser.org/

portal/publications/povsoc/ahar_4.html.

19 Mortensen, Tom. 2005, 2006. “Family Income and Higher Education Opportunity.” Postsecondary Education Opportunity, 2005, with updated data from 2006. Cited by Teach for America. 

http://www.teachforamerica.org/mission/greatest_injustice.htm. (Accessed April 23, 2010.)

20 U.S. Department of Education, Institute of Education Sciences, National Center for Education 

Statistics, National Assessment of Educational Progress. 1998, 2000, 2002, 2003, 2005, 2007. 

Reading Assessments. Cited by Teach for America. http://www.teachforamerica.org/mission/

greatest_injustice.htm. (Accessed April 23, 2010.)

21 U.S. Census Bureau. 2005 “Areas With Concentrated Poverty: 1999.” Census 2000 Special 

Reports, July 2005. Calculated from Table 1. http://www.census.gov/prod/2005pubs/censr-16.

pdf. (Accessed April 23, 2010.)

22 U.S. Census Bureau, Housing and Household Economic Statistics Division. Revised August 

11, 2008. http://www.census.gov/hhes/www/housing/housing_patterns/ch6.html.

23 U.S. Census Bureau, Housing and Household Economic Statistics Division. Revised August 

11, 2008. http://www.census.gov/hhes/www/housing/housing_patterns/ch5.html.

24 HUD PD&R. “Discrimination in Metropolitan Housing Markets: National Results from Phase 

I of HDS 2000.” Exhibits 3-5, 3-10, 3-16, 3-22. http://www.huduser.org/portal/publications/

hsgfin/hds.html. (Accessed April 23, 2010.)

25 Berube, Alan. 2006. “Two Steps Back: City and Suburban Poverty Trends 1999-2005.” 

Brookings Institution. http://www.brookings.edu/reports/2006/12poverty_berube.aspx

26 U.S. Department of Energy. 2009 (June). “Obama Administration Launches New Energy 

Efficiency Efforts.” http://www.energy.gov/news2009/7550.htm.

27 Schrank, David, and Tim Lomax. 2009 (July). http://tti.tamu.edu/documents/mobility_

report_2009_wappx.pdf. Congestion cost (billions of 2007 dollars) $16.7 [in 1982], $87.2 

[in 2007]. (pg.1).

28 Center for Housing Policy, Center for Neighborhood Technology and University of California, 

Berkeley. 2006. A Heavy Load: The Combined Housing and Transportation of Burdens of 

Working Families.

29 U.S. Environmental Protection Agency (EPA). http://www.energystar.gov/index.cfm?c=new_

homes.nh_greenbuilding.

30 HUD PD&R. March 2010. Unpublished analysis, based on FEMA damage records and U.S. 

Postal Service vacancy. Figure does not address homes that are no longer residential addresses.

31 Partnership for Public Service and American Universtity’s Institute for the Study of Public 

Policy. 2009. “Best Places to Work in the Federal Government in 2009.” http://data.

bestplacestowork.org/bptw/detail/HU00.

32 Partnership for Public Service and American Universtity’s Institute for the Study of Public 

Policy. 2009. “Best Places to Work in the Federal Government in 2009.” http://data.

bestplacestowork.org/bptw/detail/HU00.

33 HUD PD&R. 2006 (March). http://www.huduser.org/Publications/pdf/partnersatis.pdf.