SEPTEMBER 30, 1997 
 . . 

STRATEGIC PLAN 


FY 1998 - 2003 

TABLE OF CONTENTS 


rnn.ODUCTION ................................................. 1 


The Need for Change .....'....,.........'................ ~ . . ~ . . ... 1 


'0_"

~v:, at&lZJng 1'" HUD' s Missi'on • • • • • • • • • • . . . . . . . . • . • • • . . . . . . • . . . . . . 2
 .. 


HUD's Mission - Empowering People and Communities .......•.......... 3 


The Secretary's Personal Mission - Restoring the ,Public Trust ..•........... 3 


MaDagea:nent Reforms ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 


Legisla!ive Proposals • . • . • . • • . • . • . • • • • . • • • . • • • • • • . . • . . . • . . . . . • .. 5 


S'tta'tegic Objecti'ves ••••••••••.•.••••••••.•.•••.••.•••••.•..••• 6 


Organization of the Strategic Plan . . .'. . . . . . . . . . . . • . . . • . . . . . • . . • . • • .. 7 


", 

STRATEGIC PERFORMANCE SYSTEMIPROCESS AND CONSULTATION PROCESS 13 


T)le Strategic Performance System ..................••....•....... 13 


CoDSUl't8.tion •••••••• ~ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• 14 


STRATEGIC OBJECTIVE #1: Empowez: communities to meet local needs. ••••.....' 19 


Int:r'Od.uctiOll • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • .; • • . • • • • • • • • •• 19 


Strategies .•....•.•..••.•.........•..••..•••••.•...•••.•••. 21 


Propam E'V8l.1J8!ion ....:..................................... 26 


Linkage 10 BUD 2020: Management Reform Plan • • • • • • . • • • • . •. • • • • • • •• 26 


External Factors . . • . . . . . . • •.• . • • • ,. . • . . . . • . . . ..• . . . . . . . • • • . . . .. 27 


~ow annual, performance goals support the achievement of this objective • • • • .. 27 


STRATEGIC OBJECTIVE #2: Help communities and States establish a full 


,continuum of housing and services designed 10 assist homeless individuals 


and families in achieving permanent housing and self-sufficiency. •• • • • • • . • • • . • .• 29 


InttodllC'tion . • • • • • • :. • • • • • • • • • • • . . . . . • • . . • • . . . • • • • • • • . . . • . . •. 29 


S'b'8.tegies •••••••••••••••••••••••••••••••••••••••.••••••••.•• 30


PI'ogr-am. Evaluation ................................;......... 31 


Linkage 10 HUD 2020: Management Reform Plan • . . . • • . . . • . • • • • • • • • • •• 32 


Externa.l Factors • . • . • • . . . • . . . . . . . . . . .'. . . . . . . • • . . . . • . . . • • • • . .. 32 


How annual perfonnance goals support the achievement of this objective ••••.• 33 


SlRATEGIC OBJECTIVE #3: Increase availability of affordable housing 


in standard condition to families and individuals, 


particularly the Nation's poor and disadvantaged. • • . . . . . . . . . • . . . . . . . . • . . . . .. 34 


How annual performance goals support the achievement of this objective ...... 39 


Inttoduction •.. . . . • • • • . • • . . . . • . . . . . . . . . . . . . . • . . • . • • • • '. • . . • • .• 34 


Strategies ........................,........................ 34 


Program Evaluation .••••........•..•...•........•••....•••.•• 38 


Linkage 10 HUD 2020: MQ1IQgement Reform Plan . . . . . . . . . • . . • . . . . . . . .. 38 


External Factors • . • . • . • . . • • • • • . . . • . . • • . . . . . . • . . . • . • . . . . . . . . .. 39 


-..­
• • • • • • • •• 

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STRATEGIe OBJECTIVE #4: Reduce the isolation of low-income groups 


within a community or geograpbical area ................................ 41 


Introduction . . . . . . . . • . • . . . . . . . . . . . . . . . . . . . . . . . . . • • . • . . • . . . .. 41 


Strategies ........•.........................•..•..•........ 41 


'Program EvalUation .............. ~ ......... '......•...' .........' 43 


Linkage to HUD 2020: Management Reform Pltm • . • • . . . . . . . .. '. . . . . . . " 44 


Extetnal F8C'tOrs . • . . ... • • • • . • . . . . . • . . . . • . • . • . • . . . . . • • • • . . . . . . .. 44 


How annual performance goals support the achievement of this objective ...... 45 


STRATEGIC OBJECTIVE #5: Provide empowerment and self-sufficiency opportunities 


to support low-income individuals and families as they make the transition 


from dependency to work . . . . • . . . . . • . . . . . . . . • . • . • • . • . . • . . . . • . . . . . . .. 46 


PI'ogram Evalua.tiOD •.•••••••••••••....•••••.•••••••••"........ S3 


How annual performance goals support the achievement of this objective •...•. S5 


Inttod.UctiOD • • • • • • eo. • • • • • • • • • • • • • • • • • • • • • • • • <II • • • • • • • • • • • •• -:. 
 46


Strategies ................................................... 47 


Linkage to HUD 2020: Management Reform Plan . • . . . . . . . . . . . . . • . . . . .. 54 


Extetnal Factors . . . . . . . . • . . . . • . • • '. . • . • • . • ~ • . • . • . • • . • .: . • . . . . .. 54 


SlRATEGIC OBJECTIVE #6: Increase homeownersbip opportunities, 


especially in Central Cities, through a variety of tools, 


such as expanding access to mongage credit. • :.' . . . • . . • • • • • • . . • • . . . . .. . . . . •. 56 


Inttoduc:t:ion ... . . . • • . • • • • • • • • • • . • • • • • • • • • • • • • • • • . • • . • • . . . • . . .• S6 


Strategies ..........•....••.•...•....•.•..••.•..•.•...•.•.. 57 


Prog:r'am Evalua.tion •.•.•••••••••••••.•••••••••••••••••••••••• 62 


Linkage to HUD 2020: Management Reform Pltm . . • . • • . . • . . . • . . . . . • . .. 62 


Extetnal Factors • . . • . . • . •.• . • • . • • • • • • . • • • • • • • • • . • • . • • . • . • • • • •. 63 


How annual performance goals support the achievement of this objective .;. . • •. 63 


SlRATEGIC OBJECTIVE #7: Promote equal housing opportunities for those 


protectecl by law . . . • . . . . . • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •. 64­

Strategies .............0.. ~ . . . . . . . . . . . . . . . . . . . . . . . . . . e e • 6S 


InttodUc:t:iOD • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• 64­

e • •• 

Prog:ram.-Evaluation ..•..•••••..•.•....••....••• eo e • e • • • • • • • • •• 68

Linkage to HUD 2020: Management Reform Pltm . • • • '.' . . . • • • • . . . • . • . .. 69 


Extetnal Factors . . . . . . . . . . . . • • • • . • . . • . • . . • • . . . • • • • • • . • . . • • . •. 69 


How annual perfonnance goals support the achievement of this objective •. . . •. 70 


CUSTO~R SERVICE .........,................................... 71 


PARTN"ERSmPS ..•.......•.••.••••••...• o ••••••• ~ • • • • • • • • 74 

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Slrlb:gic Plan September 30, 1997 

INTRODUCTION 

The Need .for Change . 

Since BUD was created in 1965, economic and social conditions in the United States 

have changed dramatically. Urban areas throughout the Nation haVe- deteriorated. Many 

communities suffer from an aging infrastructure, loss of btlsmesses, increasing violence, and 

dilapidated housing. Yet, in many ways, the Depanmc:nt has not kept pace with that change. 

As these problems have grown, the value of the Federal doDar bas decreased through 

inflation, ~ithout an increase in Federal funding for urban programs. The Department has 

been beset \\ith nmnerous problems: its programs tainted with fraud, waste and abuse; .~ its 

management plagued wi1h chronic problems over the years. The Dcpattwent has set a dual 

course of action to improve its maMgemeDt aDd to focus 1he Depaztment on its mission. 

To improve its management, HUD's Maugemeat Reform PIaD focuses on gettiDg 

HUD's house in order, on ~anaging its programs and people more efficiently and responsibly 

- a fundamental management overbaul. The Plan lepreserrts a combination of significant 

organizational changes, as well as proposed legislative reforms. These reforms are designed 

to help communities thrive - getting HUD's resources out of'Washington and into 

communities. These reforms are based on a Dew policy designed to empower people, giving 

them the tools they need to succeed, to help COJaIDunities move from an industrial to an 

infotmation economy. It is a dramatic shift in HUD's approach to its mission. 

To help the Departm~t focus on its mission, BUD's Strategic Plan contains the goals 

and objectives, performance measures and indicators, and timetables for tracking program 

priorities and accomplishments - all within the ccmtext of a sound management strueture and 

reasonable steWardship over billions of taxpayer dollars. Meeting our strategic goals and 

objectives, as measured by our performance iDdicator"St will continue to ensure better housing 

oppornmities and better communities for all Americans. 

Both· Pltzns SSJt "enollgh is enough", thllt then is a high degru olurgDlq in 

putting BUD'" hOllSe in IIrdU IUId crating ZJ!1f) tIIlenmcelor IIl'4Ste, /11lU IlIUIUIISL 

Both Plans prtJ]HJse to chturge the perc:eptilln ofHUD by chturging the ruIity - by IIfIlking .~ HUD work wdJ IU it carries Ollt its mission - til be II Wllue-llllded pltzyer, helping AmericII's 

comnumilies. 

HUD's Legislative Proposals for 1997 support both its management reforms and its 

. strategic objectives. This Strategic Plan covers the period FY 1998 through FY 2003. 

Measures listed in Appendix It unless otherwise noted., are for FY 1998. 

-... ­

u. s. DepartIDCDt ofHous~ IUd UrbaD Dcve10PmCDt 

1 
Strategic Plan September 30, 1997 

RevitaUziDg BUD's Mission 

In 1949, Congress defined the agency's mission simply as: 

"to create a decent home and suitable 


living enviroimJ.ent for every American family." 


The Department of Housing and Urban Development Ad. (Public Law 89-174), which 

established HUD as a department, expanded that role to: 

provide assistance for housing and for the development of tile Nation's 

communities; .•. to encourage the solution of problems of housiDg, urban 

development aDd mass transportation through State, coUDty, town, village, or other local and private action, .•. to encourage the maximum ccmttibutions that 

may be made by vigorous private homebuilding aDd mortgage lending 

industries to housing, urban development aDd the 118ti0Dal economy; and to 

provide for full and apJJI'09riatc coDSide:ration, lit the Daticma11evel, of the Deeds 

and interests of the Nation's commUDities and of the people who Iivc and work 

in them." 

The Depattwent's mission was further amCDded in the Housing Act of 1974 to include: 

II the development of viable urban· communities, by providing decent housing 

and suitable living environment and expanding economic opportunities, . 

particularly for persoDS of low- and moderate income." 

'While HUJ)'s goals fonow Congressional intent - fighting for fajr housing, 

increasing opportUDities for affordable housing. especially for the Nation's poor and 

disadvantaged, reducing and preventing homelessaess, aDd promotiDg jobs and economic 

development to help individuals achieve self-sufficiency - BUD's approach to its mission . must be updated aDd renewed. The Department must become an ally of communities, DOt a 

bureaucratic adversary; a creator of opportunities ·for Americans, not an obstacle for them to 

overcome. 

At the same time, with scarce Federal resources, HUD must focus its energy and 


ingenuity on programs that address America's housing and community development needs by 


maximizing partnerships with busin~ DOn-profi1S, and local Govermnentsand targeting 


Federal resources to those most in Deed. 


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u. s. Dcpaaa:uaat of Housing and UrbaD Development 

2 
FOREWORD 

The DepaitmeDt of Housing and Urban Development (BUD) has a record of 

accompHshment that.spans more than 30 years and seven Presidents. Thousands of 

communities and !CDS of millions of Americans have benefited from HUD's community 

development and h9using programs. 

• HUD has helped create the Naticmal Homeownersbi.p Strategy, a 

group of housing mdlistry and Govermnem representatives. By 

increasing the number of local homeoWDCrSbip partnerships . 

working in support of this effort, we hope to achieve the highest 

level ofhomeownersbi.p in the Nation's history. .0· 

.~ The "continuum of care" - our response to homelessness • has 

been established in cities across the country. 

• 	 HUD'·s comprehensive planning approach. known as the 

Consolidated Planr.ing Process, eaables cities to apply· more 

extenSive solutions to a myriad of urban problems by sharing 

infoanation and best practices. 

• 	 Through HUD's leadership. blighted public housing high-rise 

projects are being demolished and replaced by small-scale, 

economically integrated buildings. 

• 	 A crackdown by BUD OD gangs and violence in·public and 

assist.ed housing throughout the Nation has resulted in thousands 

of arrests and confiscation of weapons. 

• 	 HUD is cracking·down on landlords who nm troubled BUDassisted properties. Our efforts include punishment and removal 

as well as proposing legislation to prevent iUe5pOnsible landlords 

from using bankruptcy laws as a refuge from enforcement 

actions. 

• The Operation Safe Home Program bas been broadened to 

include both violent crime and white collar fraud to improve the 

........ standard of living in public and assisted housing. 

• 	 HUD's job creation programs have generated an unprecedented 

nmnber of permanent and temporary jobs in distressed areas in 

the past four yeatS. 

• 	 Over four million very low incomcrfamilies and individuals live 

in standard housing at rents they can afford and thousands of 

affordable housing units are produced each year. 
HUD has made a difference in the quality of life for many Americans. A large 

majority of its state and local partners have canied out their work serving the public diligently 

and honestly. However, in the past 20 years, lack of vigilance has resulted iii a Dumber of 

.scandals which has tainted the entire Dc.pmbnent. A General Accounting ~ce . 

(GAO) report indicated that the significant changes and management initiatives.in the past 

four years have bad a positive effect. However, the report said that "[BUD] effons Ire far 

from reaching fruition, and HUD's programs continue to pose a high risk to the Government 

in terms of their wlnerability to waste, fraud, abuse and mjgnanagement." It is time for 

HUD to bring our management reforms to closure so that BUD can put its· house in order for 

the coming century. 

BUD's Management Reform Plan and its Strategic PlaD outtined in this document 

~il1 guide HUD through its transition into the next century. 

-

su-gic: Plan September 30, 1997 

Th~ HUD's mission as we approach the new centmy must become to: 

Empower communities aDd their residea~ particu1arly the poor and 

disadvantaged, so that, together with BUD, they caD develop viable IIrbU 

communities, provide dec:e.at hoasing and suitable living environment for 

aU citizcDs, without disc:rimiDation, in order to improve themselves, both as 

individuals and as a comm1lllity, to succeed in today's time of tnmsition. 

In addition, Seactary ADdrew Cuomo has made it his personal mission to restore the 

public trust by achieving aDd demODStratiDg competeaee. This -mission" permeates the 

Depattment and is an integral part of each and every objective in the Strategic Plan. 

HUD~s Mission - Empowering People and Communities 

The empowerment mission is a dramatic shift for the Department. Rather than issuing 

directives and over-regulating communities, HUD will provide them with the tools to 

implement their own, home-grown revitalization strategies. BUD can assist local officials, 

community leaders, businesses, and citizeas to address their needs and ensure COnditioDS under 

which all families can flourish. HUD is uniquely. qualified with its vast resources - mortgage 

insurance, rental housing assistance., community and economic development tools - to partner 

with local govemmen~ bl'sinesses and organiz;.tiODS to build stronger communities; 

Empowerment is the right role for the Federal Govemment, a role that says "Washingron can 

help communities thrive, but the decisions ondpower must be closest to the people. " 

No one city works like the rest, no one solution will work for all of them. And, the 

challenges facing America's communities are DOt limited to certain geographic regions or 

cities. Cities and suburbs - especially older suburbs - must tackle many of the same issues. 

The broad national economic resurgence has had benefits for both cities and suburbs, 

and economic growth and social health in cities bring greater strength to both their 

surrounding suburbs and to the entire aatiODal economy. BUD must help to eusure that 

revitaliurioD and economic opponunity reach those who have been too long in the shadows. 

As much as America bas changed since World War n, our cities and their suburbs 

remain home to almost 80 percent ofthe American people and contain more than 80 percent 

of America's jobs. Their ecoDomies and residents are the engine that drives the National 

ecODomy. 

The Secretary's Personal Mission - Restoring the Public Trust 

While most of Americat s major institutiODS have changed dramatically in the past few 


decades, Government has often resisted reform. is wrong. Government must change ­ -.­

u. S. Dep....tment 0( Housing ad Urban Devdopment 

3 
September 30, 1997 

and change dramatically - ifit is to remain relevant. HUD itself has been plagued for years 

by scandal and mismanagement. It is the only Federal agency cited by the General 

Accounting Office as being at "high risk~ for waste, fraud and abuse. 

These views are damaging to the Dcpattment's ability to fulfill its vital goals. When 

over four million people cannot afford dec=1t housiDg aDd.hUDdreds ofthousands go 

homeless, we cannot afford to waste even ODe dollar on inefficiency. Former HUn Secretary 

Henry Cisneros began the task of overhauling the Department in 1994. Worldng with 

Congress, some broad changes in policies aDd Programs, notably public housiDg, have begun. 

Secretary Cuomo bas .proposed a sweeping reorganization plan designed to reinvent the 

systems and the values that have undermined HUD's capability - and credibility - for.so 

long. 

'HuD's MaDagcmcDt Reform Plan outlines the essential 5tCps HUD will take to 

improve its management. These include: 

• 	 CoDSOlidating programs and reorganizing and retrainiDg staff to aligD the 

Department's resources with its long-term mission. 

• 	 Developing and implementing stringent iDtemal controls. 
 , 


• 	 Iniegrating financial and information management systemS Department-wide. 

and, 

• 	 Increasing program monitoring and improving data on program outputs to 

increase capacity to carry out "management by results. " 

ManagcmcDt Reforms 

The Department's managc:m=t reforms arc desiped to ensure that tax dollars are used 

properly and effectively, that programs accomplish what·1hey promise, and that HUD will 

truly do more with less and do it better than ever. These reforms are keyed to work in tandem 

with BUD's Strategic plan and legislative initiatives. Further, they will improve HUn's 

delivery of programs and services to its customers so that performaDCe measures can 

demonstrate bow well these programs meet their stated objectives. 

REFORM #1 	 Reorganize by function rather than program "cylinders". Where 

needed, consolidate and privatize. 

REFORM #2 	 Modemize and integrate HUD's financial management systems 

with an efficient, state-of-the-art system. 

REFORM #3 	 Create an Enforcement Authority. 

U. S. DepanmCDt ofHousiDg aDd Urban Development 

4 
Sttarcgic Pim 	 September 30, 1997 

REFORM #4 	 Refocus and retrain HUD~s workforce to cmy om our 

revitalized mission. 

REFORM #15. . Eslablish new perfonnance-bascd systemS for HUD programs, 

operations and employees. 

REFORM ~ Replace HUD's top-down bureaucracy with a new customerfriCDdly structure. 

While these reforms teflect changes throughout the Department, each 

Program Office (HUD~s business Jines) will also undergo specific legislative~ pro~c, 

organizational and mauagemem cbaDges geared to their programs aDd operatioDs. .' 

BUD's StrategiC Plan builds on the foUDdation of sweeping management reforms and 

legislative proposals lhrougbout the fabric .of HUn's Strategic Plan are management 

reforms, legislative changes and Stlategic objectives whicll must be met in order for HUD to 

be a significant, value-added pia)cr in 1bc DeW CCDtUry. 

Legislative Proposals 

To create a new mID, we will need the,full range of approaches set out in this 

Strategic PIaD and the Management Reform PIaD. The sua:ess.of these efforts is 

dependent on the success of the whole. The third leg of BUD's commitment is its 

Legislative Proposals. HUD's legislative proposals include: the Public Housing Mauagement 

Reform Act of 1997; HousiBg 2020: Multifamily Management Reform Act of 1997; and the 

Homelessness Assistance and Mauagement Reform Act of 1997. Highlights of these 

proposals include: 

• 	 Privatizing HOPE VI construction management and development 

process, as appropriate. 

• 	 Consolidating six Homeless Assistance Programs. 

• 	 Merging Section 8 Certificale and Voucher Programs. 

• 	 Reforming FHA Single Family Property Disposition. 

• 	 ExtcDding FHA Dote sales authority permanently. 

• Strengthening FHA's enforcement authority to minimize fraud and abuse and to 

pursue Degugent owners. 

• Converting competitive grant programs into peIformance-based formula grants. 

.u. S. Dcpanmcut of HousiDg aod Urban I>cYdopment 

5 
Strategic PIID 	 September 30, 1997 

• 	 DeregulatiDg smaller Public Housing Authorities (PHAs) by mandating fewer 

reponing requirements. 

• 	 Creating an advisory Public Housing Authority Performance Evaluation Board 

to recommend improvements in HUD's evaluation of PHAs. 

• 	 Mandating a judicial receivership for all large PHAs on the troubled list for 

more than one year. 

• 	 Reducing excessive rent subsidies on assisted housing to market levels. ..... 

HUD is adopting a business-like structure to achieve a public purpose. It defines a 

clear mission divided into identifiable functioDS for each separate business line. It centralizes 

some operations for economies of scale wtine decentralizing other operations to improve 

service delivery and innovation. It uses technology to improve efficiency - both in front-line 

service delivery and in the creation ofback-office·pmcess;ng c:enters. It puIS a DeW stress OD 

enforcement and economic development, while making iDformation on HUD's resources more 

widely available through computers. And it implements a broad set of performauc:e measures 

to best target resources to communities in need. 

Strategic Objectives 

HUD's credibility and competence will be viewed in tcmlS of bow successfully \W 

accomplish our mission. Key indicatOlS are presented in this Strategic Plan which will create 

a total "picture of how well HUD is delM:riDg its programs and accoUDtiDg.for every single 

dollar entrusted to us by millions of taxpayerS. 

As we move towards the next millennium, our strategic objectives reflect our core 

business tlmc:tions: 

• 	 Empower communities to meet local needs. 

• 	 Help communities and States establish a full continuum of housiDg and 

senices designed to assist homeless individuals and families in achieving 

pennanent housing and self-sufficiency. 

• 	 IDcrease a,·.i1abUity of affordable housing in standard condition to families 

and indhiduals. particularly the Nation's poor and disadvantaged. 

• 	 Reduce tbe isolation or low-income groups within a community or 

geograpbical area. 

U. S. DepanmcDt of Housing lind Urban Development 

6 
strategic Plan 	 September 30, 1997 

• 	 Provide empowermeDt and self-sufficiency opportuDities for low-income 

individuals and families, particularly the Nation's poor and disadvantaged, 

• 	 Increase homeowaenmp opportaDities, especially in CCDttal Citi~ through a 

variety of tools, such as expanding access to mortgage credit. 

• 	 Promote equal hODlmg opportuDities for those protected by law. 

OrganizatioD of the Strategic Plan 

The first section of this plan summarizes the Strategic Performance System and ," 

resulting process developed in FY 1994. It also details consultation with Congress and other 

stakeholders. 

The next seven sections are divided by each objective. Each of these sections includes 

the fonowing: 

• 	 IDtrodUctiOD summarizing each objective; 

• 	 Strategies to achieve the goals and objectives;1 

• 	 Program Evaluation as it relates to the Strategic Objective (see also section on 

program evaluation below); , 

• 	 Linkage to BUD 21120: MtlIUZgDllDlt Reform Pltm which provides a crossreference to the applicable section of tbat document; 

• 	 Bow IIIIDwal performuce goals support the achievement of the objec1ive 

(See also Appendix I); aDd 

• 	 Key eDema! {adon which may affect the achievement of the goals. 

The final two sections address the fonowing: 

• 	 Customer service activities. 

• 	 Partnership activities, generally. Specific instances of interagency 

coordination are also addressed UDClcr specific objectives. 

This Strategic Plan lists strategies by Program. In the Annual Performance 

Plan, perfonnance measures will be listed by Program and Financing (P&F). 

The Office of Policy Development & Research and the program areas are " 

" working to ensure data integrity, ba!eline development and other measurement 

issues.. The technology needs will result from this. Appendix I will be used as 

the basis for the Almuai Performance Plan. 

u. s. Depanmeat of Housing ad Urban Development 

7 
September 30, 1997 

Program Evaluatiou 

The Department has an on-going program of program evaluation, the results of which " 

have informed the development of this" strategic plan. Within the Depanment, the individuals 

both in program offices and in the Office of Policy Development and Research (pD&R) who 

have canied out the key evaluations have contributed to the strategic" plan, such that the 

findings of evaluative research are reflected in the plan. 

There is a discussion of recent evaluation studies in support of each of the seven 

strategic objectives, which illustrates the role of the evaluation program in the development of 

the strategic plan. .' . 

Role of E\'8luations in Assessing Progress with Regard to the Annual Performance Plan 

The Department anticipates ccmdncring evaluations related to performance in much the 

same way as it has selected evaluation projects in the past. That the Office of Policy 

Development and Research, in co.1SUltaUon with HUD's leaders and program offices, will 

select the most importan~ projects that can be funded from each year's appropriation. We 

expect that as we refine performance measures and interpret the results, the process will 

suggest specific topics that Deed to be addressed. 

, Currently, we. have underway or plan to begin soon, "a Dumber of studies related to 

performance measurement. For example, it is likely" that we will begin in FY 1998 a survey 

of the quality of public housing, a study of the extent ofhousing discrimination, and a new 

round in the evaluation of HOPE VI, but clecisions on these and other projects are Dot yet 

fmal. Specific future evaluations related to perfonnance measurement will be selected from a 

.similar process within the Dt.pa1bnent because the consensus within the Depanment is that 

these evaluations are ODe of the best uses of limited resources. 

Addressillg BUD's Finaucial Muagemeat Issues 

• Integrated FiDucial Maugemeat System 

The implementation of an integrated financial management system is a key component 

of HUD's Management Reform Plan. It provides management with the timely, accmate and 

reliable information Decessary to manage HUD's programs. One of HUD's major deficiencies 

- and a shortfall of a Department organized by program rather than function - is its financial 

management systems. Currently every program cylinder operates its own financial 

management systems to support its business requirements. Compounding this redundancy9 

many of the systems cannot talk with each other. 

To implement this refo~ the Department established the Financial Systems 


Integration Team UDder the leadership of the Dep~ Secretary. Team membership includes 


U. s. DepanmcDt ofHousing and Urban DeveloplllCDt 

8 
September 30, 1997 

representatives from all program offices, as well as from the Offices of the Inspector General, 

the Chief·Financial Officer (CFO), Infonnation Technology, Administration, Policy 

Development Research, and General Counsel. In addition, the team includes 

representatives from the Department of the Treasury's Center for Applied Fmancial 

Management. 

The objective of the Financial Systems Integration Plan is to implement an integrated 

financial management system, consisting of both financial and mixed systems, that provides 

the information necessary to carry out the financial aDd programmatic mission of the 

Depaitwc:nt. HUD's vision and conceptual deSign for its integrated financial management 

system is: 	 ..... 

HUn's integrated financial management systems provide HUD management and 

customers with a single view of mJD's financial and programmatic 

operations. The componc:nts of the integrated fiuancial managemc:at system include: 

• 	 Core Financial Syscem which confmms with the requirements included in the 

Core Financial System Requirements document issued by the Joint Financial 

Management Improvement Program (JFMIP). The Core System can be one or 

more systems which provide the required general ledger, funds control and 

other financial functionality neccsiIIY to support financial management. It will 

eDIble the Department to maintain a high level of intema1 comrols through 

integration with program systems and effective audit trails. 

• 	 Program Systcm5 which support the requhenaents neceS9')' to manage and 

operate BUD's programs. This includes· grant managaneut systems, subsidy 

systems, mongage iDsuraDce systems, loan systems, mongage securities 

systems, administrative systems, etc. Program Systems will be integrated with 

the Core Financial System to record financial events in a timely and accurate 

manner. 

• 	 Data Warehouses will be used to consolidate aDd Sbmdardize data from 

multiple systems to enable the Department to produce timely, accurate, and 

reliable information to the Department and its customers. 

• 	 . Management Information Systems will be used to access HUD's data.and 

produce information ne=ssary to manage HtJI)'s programs. Information will 

be displayed in a format appropriate to support the requestor's needs. 

Information could be displayed in a grapbic fo~ in a map, in spreadsheets, 

etc. The Management InfOtmation System will enable the user to summarize 

information, as well as providing the capability to "drill down" to more detailed 

information. 

In order for the information generated by the integrated financial management system 

to be timely, accurate, and consistent, the Department must ensure that the data in its systemS 

. is comet. HUD will undertake a project to clean-=-l:lp existing data and. develop appropriate 

u. s. Depanmem of Housing mel Urban Development 

9 
September 30, 1997 

internal controls to ensure that the data remains clean. HUD will also standardize its data 

architecture to facilitate data integration and information retrieval. As a result of integration, 

data will be entered one time, at the source of the initial activity. Data -will then flow to other 

-systems in accordanCe with BUD's business rules. ­

A key component ofHUD's intCgratcd financial management system plan is the 


requirement that all of these systemS will be compliant with OMB Circular A-127 and 


reported as conforming UDder the Federal Managers' Financial IDtegrity Act (FMFlA). In 


addition, these systems will be compliant with Year 2000 requirements. Plans are bcmg 


developed to either-renovate or replace existing systems to make them Year 2000 compliant. 


• Audited FbuUlcial StatemeDts 

HOD's Federal Financial Management Status Report and Five Year Plan submitted last 

. year included two goals relating to the FY 1996 audit, as fonows: (1) address the issues which 

precluded ~e DcparbDent from receiving an audit opinion on its consolidated financial 

statements for the prior 5 years, ud (2) submit the Accountability Report to OMB by 

March 31~ 1997, a full 5 months earlier than the prior year. 

Addressing -Disclaimer Issues 

For the FY 1996 consOlidated audit, the Department was successful in addressing 


issues which precluded the auditors from ICDdcriDg an opiDion on prior year finandal 


statements. -Based OD a statistical sample of SectiOD 8 and Public Housing households, the 


Department was able to estimate the amount of subsidy overpayments UDder these two 


programs. This process was a concerted Dcpattmental effort and removed this issue as a 


disclaimer item from the auditor's report. . 


In addition, the Dcpartm.ent was able to fully reconcile its fund -baJancewith Treasury 

(0164 appropriation) as of September 30, 1996, and was able ton:move this as a disclaimer 

issue. Failure to fully reconcile this account was another disclaimer issue in the FY 1995 

auditors report (this was the ODly year in which this issue existed). The Department was 

unable to effectively address the other disclaimer issue relatiDg'to complying with the credit 

reform accounting requirements as stated in Statement of Federal Financial Accounting 

Standards No.2, Accounting for Direct Loans and Loan Guarantees. 

As a result of the above efforts, the auditors rendered a qualified opinion on the FY 

1996 consolidatedfinancia1 statements. The two areas-of qualification were lack of 

compliance with ~t reform accounting, and an inability to apply sufficient audit procedures 

with regard to the estimate of subsidy overpayments. Plans to address these issues for the FY 

1997 audit are discussed in greater detail below. 

-..­

u. S. Depanmcm of Housin& IDd Urban Development 

10 
--

September 30, 1997 

Accelerating Delivery of Accountability Report to OMB 

. The Depatbnent"was also successful in significantly accelerating the submission of the 

Accountability Report to OMB. The FY 1996 report was provided to OMB on April 15, 

1997, a full 5 months earlier than the prior year. 

Fiscal 1997 Goals 

The Department has two goals relating to its FY 1997 fiDJ1'1CW Slatements: (1) make 

pro~ in addressing the qualification issues discussed in the auditors FY 1996 report, and 

(2) deliver the FY 1997 Accountability Report to OMB by . 

March 1, 1998. . 

Addressing Qualification Issues 

As discussed above, the two audit opiDion qualification issues rclariDg to the 

Department's FY 1996 financ:jaJ statemeuts, and planned action to address these issues, are as 

follows: . 

Auditor uncertainties regarding the est:im3te of the amount of subsidy overpayments In 

the Department's ·Section 8 and Public Housing programs. 

.The auditors identified the following three sub-issues: 

1. 	 The FY 1996 estimate of subsidy overpayments did DOt include "a matching of 

tenants supplemental security income (SSI) with the Social Security 

Administration database. 

Planned Action: SSI mcome will be included in the statistical sampling income 

matching project covering the FY 1997 consolidated financial statements. 

2. 	 The FY 1996 estimate only addressed instances where teDaDt income diffen:d 

by $1,000 or more from that per the matched databases 

Planned Action: The Department malntaiM that the $1.000 threshold is too 

small a difference to investi~ and will result in significant additional ~e to 

complete the matching process with little increase in accurac:y. However, the 

FY 1997 statistical sampling income matching project will use a matching 

difference threshold of SI,ooo. 

u. S. DepInmeat ofHousiDg lad Urban DeveloplDCllt 

11 
Slnlrqic PlaD 	 September 30, J997 

3. 	 The databases from which the sample of households were selected for income 

matching only included 76 percent of all assisted householdS. Accordingly, the 

sample results could not be extrapolated to entire population of ass~ . 

households. 

Planned Action: An additional 200,000 households were added to the databases 

during the current fiscal year (the percentage of total households DOW included 

in the databases should be above SOO....). We do not believe that at this late 

date, we can more fully populate the databases to increase the current 

percentage by a signijicant amount. However, we will be discussing with the 

Office of the IDspector General the percelltage of the population which to 

be included in the dalabases to fully address this issue. After this discussion 

we will be in a better position to determine what efforts, if any, be 

UDdertakc;n to address this issue for the FY 1997 audit. 

Complying with credit reform accountinl. The Federal Housing Administration has 

developed a preliminary pian to provide the infmmation required by SFFAS No. 2 for 

the FY 1997 consolidated fiDaDcia1 stataneDts,based on estimated iDformation. 

KPMG, FHA's auditors, will be asked to audit this infonnation. This plan is in the 

process of being finalized. , 

Accelerating Delivery of the FY 1997 Accountability Report to OMB 

As stated above,the prior year repOrt was delivered to OMB by April IS, 1997. We 

have developed a workplan to deliver the FY 1997 Accountability report to OMB by 

March 1, 1998. 

• 	 MaterialIDtemal·Control Weaknesses 

The Dcpmtment continues to do a good job of both identifying significant management 

deficiencies.and correcting material weaknesses. Four new material weaknesses were declared 

at the close of FY 1996, and one of these material weakDesses bas already been corrected. At 

the end of FY 1996, there were DO significant difi'erences between material weaknesses 

identified by the FY 1996 financial statement audit process and the FMFlA process. 

• 	 Quality Assurance Plaas 

In previous y~ certification from responsible staff was our main means of assuring 

quality of performance measure data. We are sttengthCDiDg quality assurance by requiring 

that the program offices develop comprehensive quality assurance plans subject to CFO 

review and approval. A requirement that quality assurance be applied to performance 

measures bas been added to the Secretary's Performance Report and quality assurance will be 

a permanent part of the development and verification of performance measure daIa. 

u. s. Dcpnnau of HousiDg and Urban Development 

12 
SnZegic Plan 	 September 30, 1997 

STRATEGICPERFO~CESYSTEMUPROCESS 

AND 	 . 

CONSULTATION PROCESS 

Tb, Strat.c Performance System 

As part of the "reinventiDg HUD" process, a Strategic Performance System (SPS) was 

developed. The SPS is not static, but ntthcr a set of intcrre1ated activities that provide 

c:ontinuous din:ction to the Depattmeut. Comprehensive management planning is inherent in 

the SPS and relies on four key functions: development of management plans, developmcnl of 

management control plans, oversight by the Management Committee, and performance .'. 

reporting. These four functions became fully opetational in October of 1994. The SPS is 

baih upon commi1ments made by the Department and the AdmiDistration in Presidential 

Performance Agreements and Community Empowe:tweut Principles. 

The SPS was critical to the Deputy Secretary's decision to require more formal 

monitoring mechanisms be in place for program implementation and systems development. It 

bas also been used in the training of both Headquarters and Field Office personnel involved in 

developing management plans and management control plans. 

The objectives of the SPS are: 

• 	 accelerating the development of useful measures; 

• 	 ensuring performance measurement is effectively incorporated into the 

Department's budget process, program management and information systemS; 

and 

• 	 developing quantifiable measures of performance for each major program and a 

process for setting benchmarks for program recipi~ . 

Strategic Planning Process 

After the passage of the Govemment Performance and Results Act in August 1993, the 

Department started' the process of identifying strategic objectives and performance measures. 

The Secretary sets the priorities for the Department at the beginning of his term and then 

reaffirms thOse priorities in August for each fiscal year. Each Assistant Secretary and 

equivalent then develops management plans and, if appropriate, management control plans, to 

accomplish the Secretary's priorities. These plans contain the goals and objectives, 

performance measures and indic:ators, and timetables for task completion. 

This process bas resulted in greater management accountability and helps to ensure that 

the resources needed to accomplish goals are obtained. Since implementation of this process . 

in FY 1994, the Department bas accomplished 80 percent of its goals . ...-.... 

U. S. Depanment of Housing ad Urban Devclopmeat 

13 
SuaresicPlaD 	 September 30. 1997 

CODSultatiOD 

• Congressional Consultation 

An initial meeting was held with representatives of various House Committees on 

April 11. 1997. Coordinated through Joseph Ventrone of the House Committee on Banking, 

this approach enabled. HUD to meet .with all of the committees at one time aDd CDabled the 

committees to jointly express their CODCen1S. At that meeting, HOD discussed the strategic 

planning process which has been evolving since January 1994. The application of Lotus 

Notes software, which produces the Secretmy's Performance Report, aDd the OMB Spring 

Review process were discussed at length. .•.. 

On July 11, 1997, the draft Strategic Plan was delivered to the Congress and GAO for 

review aDd comment. On August 4; rcprescntatives from GAO aDd HOD _ to discuss 

GAO's draft findings. On August 7, HUDmct with staff from' both the SCDate and House to 

discuss GAO's findings and the final "score" given to HUD by the House staf[. 

The following is a SlImmary of comments from-GAO and the Iml and BUD's 

response to each one. 

GAO Recommendations implemented as suggested 

CommeDt: 	 The plan is missing one ofthe required componenlS - tl description of 

how program evlllutltions were used in uttlblishing the $I1'lZttgic 

'objectives, IlS well tlS tl future evDllllltion schedule. _ 

RespoDSe: 	 We agree. The language as to utilization is included in the revised final" 

plan. However, evaluation schedules me delenniDed ()D an annual, DOt a 

multi-year, basis. 

Comment: 	 •.. does not cOYer the timefrtlmu spe~fied by the Results Act. 

RespoDSC: 	 The revised final Strategic Plan utiUza FY 1998 as the "poUDdwotk" ­

management reforms, program restructuring and baseline developmCDt. 

. CommeDt: 	 The first stTtltegic objective - 10 empower communitiu 10 meet IDCDl Meds ­

does not clearly describe how BUD can empower communities, whlZt 10Clll 

needs HUD can help communi.~;es meet through its array ofcore progrtmlS or 

how the results will be measured. 

Response: 	 An in-depth discussion of Consolidated Planning Process is iDcluded in 

the revised final plan. 

...­

u. s. Depanment of Housing and UIbaD DevclopmCDt 

14 
S1rIregic PIaD 	 September 30. 1997 

Comment: 	 (Regarding the Public Housing survey ("PHMAPjJ However, the discussion. 

II17Iler this same objective indicates HUD intends to replace that program with 

Q bener assessment method 

Meeting: 	 Language. in strategic plan has been changed. PHMAP is being 

improved and new data needs being adc:bessed, but it is DOt being 

replaced. 

GAO Recommendations implemented. but different1v from original suggestion 

CODlDleut: 	 HUD's two mission SIIltements do 1IOt define the basic purpose oflhe Qg~rz:cy or 

focus on the core programs tmd are not fully supported by the strategic 

objectives. . 

Note: 	 GAO clIlrljied their comments stating thllt 1/BUD continws to htzve as Q 

mission 1M'restoration ofpublic tnat, then needs to be an objective or, 

altemtztively, a further cltJrlfication ofthe actMties under the MQ1IQgement 

Reform Plan thDt impact on the objectWes as C'Ul7"ently listed The'primary 

mission does lIOt reflect the objecmu. GAO said tluzt the "add test" is ifthe 

mission statement were by itself, would Q retllier Icnow what agency il belonged 

to. • 

The House stDjJ, however, went further and stDIed tluzt BUD needed to reflect 

the language in the authorizing legislation. 

Respoase: 	 Since there are acnVllly three pieces of legislation that impact on our 

mission, we have integrated those into the revised fiDal plan. 

Comments: 	 Having the Key Extemal Factors as a scpatate section did .Dot allow for clear 

liDkage to the strategic objectives. 

RespoDSe: 	 HUD has reservatiODS about n:petitive language that makes the plan 

tmJ1C'.f:cssarily long. Cross-referencing is used in the revised final plan 

to avoid repetition. 

GAO RecOmmendations which need to be implemented as the document evolves 

Comments: 	 Section entitled HUD's Strategic Plan does not yet indiCQIe significant 


interagency coordination 


Respouse: 	 Interagency activities arc ongoing - and will continue to evolve during 

the coming months. It is difficult to accomplish during the time frame 

while agencies are focused -..budget and individual Strategic PlaDs. 

u. S. DepaibDCllt of Housing lad Urban Developmatt 

15 
su.egic P1.m 	 September 30. 199i 

• 	 HHS, Labor, Transportation and HUD will meet during the first 

quarter ofFY 1998. All iDi1ial meeting was held August 4. 

• . 	DiscuSsions ongoing with Justice and EPA 

Coudtarian between BUD aDd other ageucies has been ongoing 

throughout the pJanning process. The draft Strategic Plan was made 

available on HUD's Home Page on July 14. A total of 3,761 hits were 

rcc:onkd on the Strategic PlaD 'between July 14 and July 31. Comments 

have been received as a result of review by other ageucies and their 

coD'UDClltS are reflected in the fiDal Strategic P~ The final plan will 

also be available on HUD's Home Page. . .. 

CommeDt: 	 ... (1) the draft strategic pliln has 1IDI yet been developed Sl4fficiently 10 identify . 

ail ofthe dDttl needed and (2) BUD hJu htId tmd continua to htne significant 

problems with itsjinJznI:iIll and IIItl1IllgeIllDlt i1foT7lJlllion systems ••. 

Response: 	 HUD required program quality assurance plans of each program as of 

FY 1998. These pbms will be discussed in detail in the Annual 

Performsmt:e Plan, which also identifies the data sources. However, the 

issue of data integrity and.quality assurance must remain a key issue ·is 

the document evolves over the coming years. It cannot be a one time 

exercise - but rather an intep'aI part of the IDDUIl pJanning process. 

Comment: 	 ••. lhe discussions ofBUD's SlTtlIegw 10 «hint its objectives and reltztionship 

ofperfOrmtl1lCe goals to the strategic objectives do nol fully reflect lhe 

requirements oflhe Results A.ct. 

Response: 	 HUD acknowledges that it needs to improve Jinbge between goals, 

resources and strategic objectives. HUD is worIciDg with OMB on the 

best way to do this. The Program aDd FiDanc:ing schedules will be 

1iDked to the Amwal Performance Plan measures, as recommended in 

the OMS guidance on A-II (Part m. Most of the Management Reform 

activities which impact program administration will take place in FY 

1998. These actions have been listed at the end of Appendix I. The 

. relationship of these measures and· ammal performance goals to the 

strategic objectives is discussec:l in the Strategic Plan. 

• 	 Stakeholder Consultation bv Programs 

HousiDg requested comments on the Plan from major trade groups with whom it 


routinely deals such as the Natioual Association of Homebuilders, the Mortgage Bankers 


Association and the National Association of RcaMrs. In addition, Housing shared the Plan 


u. s. Depaumeat of Housiag aDd UrbaD DevelopmcDt 

16 
Stnrcgic Plan September 30, 1997 

v.ith various working groups with whom it has forged a working relationship over the past 

few years. (See the Housing section tmder Partnerships for a description of the working 

groups.) 

Although comments were requested from various groups, DO substantive comments 

have been received to date. 

Pubtie and IDdiaD HousiD& (PIB) requested comments on the draft Strategic Plan 

from: 

• Public Housing Authorities .... • State, city and local Government agencies 

• Public, assisted housing, and Native American indUStty and interest groups 

PIH acknowledges the comments received on the plan from the Council of Large 

Public Housing Authorities (CLPHA) and the Public Housing Authorities Directors 

Association (pHADA). 

In snmmary, CLPHA expressed concern that the plan did not address how to prevent 

marginal PHAs from becoming lrOubled. HUD is addressing the marginal PHAs ill the HUD 

2020 Management Reform plan.. The DeW Troubled AgeIley Recovery Centers (TARCs) will 

devote their resources to the those PHAs designated as troubled, this will allow the pm Field 

Office staff to focus on working with these marginal PHAs. CLPHA also recommended that 

more specific objectives should be developed linking c:ommuuity lCVitaIi2'ation efforts, UDder 

Strategic Objective 4, with the Depa:ttmeut's public·housing revitalization strategies. pm 

concurs v.ith this recommendation aDd will work with CPO aDd Housing to address this 

recommendation. 

PHADA expressed conc:em that the Strategic Plan does DOt adequately address BUD's 

limitations, especially at the same time that the HUD 2020 Management Reform Plan is being 

implemented. The Department's HUD 2020 Management Plan and this Strategic Plan build 

.on the foundation of programmatic, legislative and mganiza1ional cbaDges which will vastly 

improve program delivery to the PHAs. 

Both CLPHA and PHADA commented that ongoing working groups are needed in the 

consultation process in the development of the Strategic Plan. ·PIB concurs with this 

observation and will facilitate pannersbips with the stakeholder in the ongoing implementation 

of the Strategic Plan. 

Community PlanDiDg and Development (CPD) requested comments on the draft 


Strategic Plan from: 


• State, cit)' and loCal Government &&ecies 

u. s. Depauueat of Housing ad Urbm Development 
Snregic PIaD September 30,.1997 

• Community Interest Groups 

Although comments were requested from various groups, no substantive comments 

have been received to date. 

Fair BousiDg and Equal Opportmaity (FBEO) requested comments on the draft 

Strategic Plan from: 

• Fair Housing Organizations 

• Financial Institutions involved in real estate financing 

• State, city and local Govemment agencies 

• Housing industry groups 

• Civil rights groups 

Although comments were requested from various groUPs. DO substantive coinments 

have been received to date. 

• Department-wide Copsultation· Efforts 

In addition to all the above efforts, the Departmc:nt reqUested comments from the 

general public through the World Wide Web (~ "Web") Home Page. This also allowed for 

review aDd co1'DJllCDt by HOD employees, both at Headquarters aDd in the Field Offices. 

Comments were received Dot onlY. from individuals, but also from other US agencies . 

and the governments of CaDada and the United Kingdom. Some of the comments paralleled 

those of GAO, especially the need for explaining the relationship between the performance 

measures and the strategic objectives ..Both the Canadian and UK governments were positive 

in their review, although both questioned how we would validate our data. It is, apparently, 

an issue with which they, too, are struggJiDg. . 

HHS, as a Federal agency, bas provided the most in-depth comments and we will be 

working with them to coordinate our efforts as we move forward in the sttategic planning 

process. Their comments are reflected under Strategic Objectives 2, 4 and S. 

Individual comments vary from substantive to editorial but, in general, minor. 

The most detailed comments did Dot come from outside HOD, but rather, from HUD 

employees ·with many years experience. Their historical peispective and suggestions for text 

changes have been included, wh~ appropriate. 

u. S. DcpaJtmcnt of Housing amd Urban Developmem 

18 
snegitPJan 	 September 30. 1997 

STRATEGIC OBJECrIVE #1 

Empower eomm1lllitiei to meet local needs. 

IDtrodUc:tiOD 

Our mission of creating commUDities of opportuDity requires more than just 

admUristering our programs on a day-to-day basis. HUD must take a proactive, leadership 

role in partnering with America's commUDities. As we move towards the future of America. 

we will help communities to solve their own problems by 

• 	 Plmming BDd ex:ecnring housing and commUDity development initiatives that are 

COIDDlUDity-driveD; 

• 	 CoontiDating comprehemive, sustainable solutions to urban problems; 

• 	 StrPamJining housing aDd commUDity development programs to make them 

more efficient aDd effective; 

• 	 . Increasing access by and communication between citizens and government at all 

levels. 

to tbiS objective is the Consolidated Planning Process. The'CoDSOlidated . 


PlanICommUDity CoDDeCtions system, iDitiated in 1994-S, was developed.to offer a more 


comprehcDsive aDd raticmal approach to housing IDd community development planning. It 


.was an attempt to break down the bmiers between four block.grant progll1D5 totalling over 

. 56 billion ammally to allow commUDities more flexibility in applyiDg different programs in an 

integrated way to sOlve local problems. CPD folded 12 different planning, applicati~ and 

rcponi:a.g requirements of these four programs into one planning aoclleporting system,. 

enabling the commUDities to address their problems more comp!ebeusively. The Consolidated 

PIanlCommunity Connections anticipated the current "placed-based strategy- which has been . 

applied to all of HUD. 

This approach bas been a success It was one of the 10 projects in the United States 

to receive a Ford FoundatioDlKcanedy School of Government innovations award in 1996. 

Every large city, urban coUDty. and State in the United States undertook a three to five year 

strategic plan as pan of their Consolidated Plan in 1995 or 1996. AmwalIy, every State and 

entitlement commUDity submits an action plan showing how they are going to spend current 

fISCal year funds received by formula to carry out the goals laid out in the strategic plan. 

Some 1,000 Consolidated Plan snmmaries were placed on the Web for all to see. The system 

bas the following components: 

-... 

u. S. DcpanmeDt of Housblg IDd UrbID Deve10pmeat 

19 
SttaIegic PIaD 	 September 30. 1997 

1. 	 Instead of submitting separate plans and applications to address community 

development, affordable housing, homelessness or housing for persons with 

HIVIAIDS, communities now submit a single, compreheDsive strategic plan. It 

serveS as the application and funding mechanIsm for foW' differeDt block 

grants: the Community Development Block Grant program (COBO), HOME 

investment partDe1sbips, Emergency Shelter Grants, and Housing Opportunities 

for Persons with AIDS (HOPWA). Moreover, it includes a comprehensive 

homeless needs assessment and plan which is reflected in applications for 

competitive homeless assist.ance programs. It also provides a c:ompreheDsive 

frame of reference ·for other HUD programs, malcing it an instrument for 

integrated HUD programs at the locallcvd. ..' 

2. 	 It includes a strong empowerment component to CDSUI'C that citizens understand 

and participate in the development of plogtaDIS to meet their Deeds. The goal 

is to create community-based integrated planning. Citizens must be giVeD 

adequate time to comment on proposed plaDs aDd reportS on accomplishments 

Therefore, citizeDs are part of the CODtrol· system ofHUD beca1Jse if 

communities did DOt do what they said they were goiDg to do, citizens would 

complain to HUD and the community. 

3. 	 To ensure that information on proposecI projects is presented clearly to help 

citizcDs understand wh8t is proposed, HUD provided software for community 

usc. This software package includes OD-tbe-sheIf software. Grantees use the 

software to produce the teXt·file, data base, aDd map files. .The software . 

displays maps of proposed projects located by neighborhood showing social aDd 

economic conditions in those neighborhoods. Data files on proposed projects 

can be aggregated nationally. That software has DOW been updated with a more 

. sophisticated set of ceusus data for application as a systemS integration device 

for all of HUD programs: it can show on a siDgle map all BUD projects 

(proposed aDd actual) which have addn:sses and are put into the sysIem. It is 

now called Community 2020.' Citizens, communities, and local housing 

authorities all over the United States have been sold or given copies of this 

software package. 

4. 	 Grantees must identify for evay specific objective proposed accoq,lisbmeDts 

the jurisdiction hopes to achieve mquantitative tenDs for.the strategic plan 

period, or in other measurable terms. Proposed actions should be related to 

identified needs. 

S. 	 Pan of this system is the Integrated Disbursement and Information System 

. (lDIS), which essentially is an automated system to draw down funds and 

repon on progress machieving goals. Among the advantages of this system 

are that it provides more accurate &lid timely information on results. provides 

u. S. DepanmcDt of HousiDg md lhbaD Development 

20 
Sntcgic: Plm 	 September 30. 1997 

consistent and clear infonnation to citizens, HUD Offices. CPD bas also 

developed a performance mapping system to allow citi%CDS to view the location 

of completed and partially completed activities. When fully loaded with data . 

on results, this data should be accessible to all using the Web. 

6. 	 Communities can doWDload annual !DIS data on results achieved for use in 

their Community Annual Performance and Evaluation report which they must 

submit. This docnment infOIDlS c.i1izeDS what the grantee has accomplished 

with its CPD fuDds and other leveraged funding during the program year. 

7. 	 Armed with more accurate data on achievements, our Field Offices conduct a 

more meaningful mmual cOmmUDity assessm=t for each grantee. They 8Sk the 

questions: (a) what did the commUnity say it would do? (b) what did the .. community do? (3) what is RUD's opinion of what the commUDity did? 

Annual CommUDity Assessoacnts have been completed for most of the grantees 

in the United States. 

8. 	 Field Offices PJepare an Amwal Comparative Review which ranks grantees in 

each Field Office by quality and risk after ideutifyiDg those that BUD 

considered to be demonstrating "best pmctices", those that are performing well, 

and those that need more oversight or teclmical assistance. A list of best 

practices provides a tool to offer pec:r-to-pec:r tccImical assistaDce. In July of 

this year, a confelenc:e on best pracdces was held which idCDtified good 

performers in economic development, housing, homeless support and other 

areas. The list of grantees which are not performing well provides the basis for 

developing a work plan for field monitoring aDd tecbDical assistaDCe for each 

Field Office for the foUowDIg year. 

Once the first full program year is completed with most grantees on !DIS, a 

. national daIa base can be -developed which will display grantees' achievements 

in quantitative temIS which will permit comparison of one graDtee with 1I1Other. 

This will be a form of "beDcbrnarking" which will enable HUD to offer . 

technical assistaDce to COIDJD1mities which are performing significantly below 

the levels of comparably-situated communities. 

Strategies 

Planning and executing housing and COmmunity development initiatives-that are community­


driven 


Local communities know best bow to implement programs. While mamtaiDiDg a 

needed focus on meeting national objectives established by Congress, Govemment must 

empower citizens and communities in planning bg.~ their taxpayer dollars are to be spent. A 

u. S. DcplllUialt of Housing ad un. Devdopmcut 

21 
SUa&egic Plan September 30. 1997 

new emphasis on citizen participation and bottom-up planning and program design drives 

HUD's iDIemal organimtion aDd its relationship to ils granteeS. Field Offices will continue to 

be given sigDificantly increased authority to waive requirements, develop integrated customer 

Service plans, including teclmica1 assistaDCe, geared toward meeting specific local needs, and 

implement priorities in a manner that addresses the unique circumstances of the areas they 

deal with daily. ._u. _. ..-••.... 

Through the Coasolidated PJanning Process, BUD has instituted a unified and 

streamlined pl0ces5 for crea1ing locally driven strategles for housing and community 

development. Instcad of submitting c:lisparate, unconnected applications and plans, 

jurisdictions DOW prepare five-year vision statements - and one-year action plaDs - for..the 

use of Federal funds \\ith extensive citizen participation. 

Coordinwpg comDlehensjve. mgipabJe solutions to grban problems 

Solving community needs requires a holistic, compreheDsive strategy that liDb 

economic, human, physical, envinmmcntaland other conce:ms. While separate program 

requirements may address individual elements, Deigbbmboods in fact opelate as systems. The 

most effective solutions are those that reflect a complebeusive, coordinated approach. The 

plethora of programs and regulations HUD traditicmalJy admbristered actnally undercut 

communitics~ ability to .implement comprehensive solutiODS. Traditionally~ as new urban 

problems cm~ separate categorical programs to address them would be fuDdcd. .As a 

result, communities were requbed to focus on specific symptOJ;DS of larger problems and were 

prevented from addressing the uncierlyD:Jg causes 

HUD's proposed public housing teforms:will allow housing authorities to take a more 

comprehensive approach to managing their assets aDd programs. Housing Authorities will be 

able to plan and manage stock in a manner consistent with sound r=d estate management 

practices rather lhan simply managing to outdated regulations. In addition, Housing , 

Authorities will be required to certify that their stock management strategies are consistt'Jlf 

with the local Ccmsolidated Plan, thereby tying their activities to urgent COJDJDUDity needs. 

These refonn measures include: flexible use of capital and operating funds, use of mixecI. 

finance devclopmeDt, the conversion of competitive grants to formula allocations that will 

allow Housing Authorities to plan their use strategically, and allowing Housing Authorities to 

retain operating and capital funds for the rep1acemmt of obsolete housing. 

HUD will also promote urban development that is friendly to the environment BUD 

is committed to demonstrating that economic growth and environmental quality are 

complementary. Some examples: sustainable development will again be one of the key 

selection criteria for the Empowerment Zones and Enterprise Communities; and 

Homeownership Zones will adopt pedestrian friendly design standards that will contribute to 

improved air quality in urban areas. 

-

u. s. DepartmeDt of Housing II1d Urban DevelopmCDt 

22 
September 30. 1997 

Streamlining housing and ennmunity development programs to make them more efficient and 

effective 

Streamlining and simplifying programs are essential steps to making them much more 

comprehensible and aPProachable, eliminating burdensome requirem~ stripping away 

superfluous procedures and focusing on what WOlb. Previous efforts to implement detailed 

program requirements were accompanied by overly restrictive program submissions and 

produced a dysfuncticmal.systCm in which rcgulatioDs and process uiumphed over 

perfonnance and product. Through the Consolidated Planning Process and other strategies, 

HUD will continue its efforts to reduce paperwork aDd burdensome reguJatioas; euable 

communities to submit long range plans using a new, electronic paperless system; ne"" 

technologies to move both HUt> and community development in general into the 21st century; 

and condition funding on clear, loca1ly-determined performance measures. .. 

HUD has also proposed legislation that would convert infleXJ."ble and labor-intensive . 

competitive grant programs into flexibk formula grantS. Formula grants conserve valuable 

staff time by elimjmring time cousm:niDg annual competitions. They also make funding more 

predictable so that communities may plan strategically. HUD legislation would consolidate 

homeless assistance services from six disparate programs into one flexible, performance-based 

program. Capital funds for smaller PHAs and Drug Eljmination Grants for public housing 

communities would also be converted to formul~ 

Other programmatic reforms will improve the performance of HUD programs. The 

development of fleXJ.Dle capital and operating fuDds and exp;msion of mixed financed 

development mechanjsms will allow Housing Authorities to manage assets strategically. The 

merger of the Section 8 certificate and voucher programs and implementation of streamlining 

measures will make tenant based assistance easier for HUD, Housing Authorities and private 

landlords to administer. In addition, HUD will begin to administer the "NAHASDA" Block 

Grant, which provides Tribally-Designated Housing Entities with flexlDle fundiDg. 

Increasing access bv and communicatiop between citizeps and Goyemment at all levels 

An essential element of community empowerment is access to information and 

improved communication with GovenDneot. We ulust maintain open lines of communication 

not just among Government and citizens, but also among different levels of Government and 

within the Department as well. New computer technologies can be put to work to facilitate 

this communication. But, more than that, Govcmment must learn how to talk with local 

communities; it must reach out and involve local residents. HUD will take advantage of new 

technologies, moving its programs and the communities they serve onto the information 

highway. New computer software for usc in preparing the Consolidated Plan is being 

provided to all communities. The software makes planning easier for citizens and elected 

officials. Every commWlity has received a package that includes a mapping system that 

illustrates the following: where Federal dollars aa.-bc:ing spent loc:ally; up-to-date information 

U. S. Depanmcat of Housing IUd Urban DevelopmcDt 

23 
Sepu:mber 30, 1997 " saategic Plan 

on neighborhood characteristics such· as average income, age, education, and housing market 


cbaractcristics; the location of existing public infrastructure, streets; utilities, parks, and other 


public facilities. 


. HUD will make maximum usc of this technology to ensure that eve!)' citizen has 

information on Consolidated Plans for their community. Summaries of Consolidated Plans 

from 987 commlmitics are expected to be placed on the Web, with some 1,000 placed on the 

Web to date. This includes maps of.proposed projects in relation to social and economic 

conditions in the c:ommUDity. The BUD Website will coD1iDue to provide citizeas amd 

commUDities with information about the total range of BUD programs and issues facing urban 

America. . 

Analvsi~ .of Impediments to Fair Hnwdng 

The Department has IDO'Yed in the direction of empowering commUDities to chart their 


own course in resolving local problems. It began by allowiDg communities to define 


impediments to housing opportunities in the community and develop a strategy and program 


to eJimimte these impediments· . 


Fair Housing Planning's Analysis of Impediments is the vehicle that empowers the 


·communities to define their local fair housing problems IDd develop a program to eliminate 


these impediments. ThiS effott enables the community to develop a holistic approach and 


gives it the respcmsibility aDd authority to decide the nature aDd exteDt of fair housing 


problems and design a program that assures accessibility and housiDg opportunities to all of 


its citizens. 


TlDough its fair housing and other grant programs, the Department will support 

locally-driven efforts to address tc:Dsions ·which arise in their communities when persons seek 

to expand their housing choice. Such teDsiODS may arise when communities implement comt 

settlements designed to eliminate racial segregation in public housing, take steps to reduce the 

. isolation of low income groups within a community or geographical area, or provide new 

group homes for persons with disabilities. Rather than dictating solutions to such problems, 

". the DepartmCDt will empower commUDitics to implement their own strategies, to cocmtiDate 

these strategies with their Consolidated Plan and community development programs, and to 

build upon collaborative grassrootS efforts among local govemmCD.1al Bgcucies, fair housiDg 

organirations, and other community groups. FHEO will work closely with EPA and other 

HUD Program Offices to assure that residents of its housing prOgrams are not unduly 

impacted by Degative environmental conditions, (Le•• toxic waste, supezfund sites). 

The Department views this effort as an integral part of meeting our urban problems, as 


it is pan of a comprehensive aDd cocmtinated approach to meeting the needs of all local 


residents. 
 ...... 

U. s. Depanment of Housing lind Urban Development 

24 
September 30, 1997 

Housing - Working with the Communities 

Propeny disposition 

Single Family bas a propen:y disposition program targeted to non-profits (300/0 

discounts). Ccmsultation with the communities frequently occurs via the non-profits. 

Sales through May of this fiscal year in this program were 2,067 properties versus a 

goal of 2,082. 

In Multifamily, as part of the foreclosure process, HUD COIJIaCtS state and local 

. govemments 8Dd the local PHA to determine ifthere is any interest in the possi~le 

purchase or future use of the project. In addition, these entities have a right of first 

to purchase projects if they become HUD-owned. 

Mark-to-market 

Both the FY 1997 Port!o&o R.eeDgineering DemODSttation ad the proposed legislatioD 

require that project tenants and the affected units of local Government have an 

opportunity to provide comments· on the proposed restructuring. 

Neighborhood NetWOrks 

. Neighborhood Networks is an initiative lauDched in 1995 as a voluntary, 

commUDity-based approach to use computer tedmology to empower tcsidents of lRJD . 

assisted aDd insured Multifamily housing to become more self-sufliciCllt, employable 

and economically self-reliant. HUD's role has been to CDCOurage piopcny owners, 

managers and residents to establish computer learning centers to link residents to 

public and private organizations for job-related, educational and other CODlIDUIIity. 

purposes. HUD Field Office staff also provided teclmical assistance and clarified that 

certain project resources are available to help the centers. O1Mously, Neighborhood 

NetWOrks.has commUDity-builcfmg aspects as well as weJfare-to-work implications that· 

can help communities empower themselves to meet their local needs and reduce the 

isolati(!D of low-income groups within the communitY. 

Marketing and outreach activities 

Single Family bas established Marketing and Outreach Divisions in each of its 

Homeownership Centers to promote the broad spectrum of programs available for 

first-time homebuyers and other underservecl populations in the purchase of decent, 

affordable housing. In addition, there will be staff outstatioDed in most sites 

previously having a Single Family office. The Marketing ad ·Outreach positions were 

created expressly to maintain contact with local commUDities SO that·Single Family 

could tailor its programs to match the neeG-of the individual commUDities. 

u. S. Depazaueut of HousiD& aud Urbm DeveklpmeDt 

25· 
SttaIeJic: Plan September 30. 1997

Program EvaluatioD 

The Dcpartm~ recently completed three .evaluations related to community 

empowerment. These include evaluations of the Coinmunity Development Block Grant 

(CDBG) program and the HOME program, which is the new housing block grant -program. 

The third evaluation, "The Status aDd Prospects of the Nonprofit Housing Sector," discusses 

empowament through the institutions of non-profit organizations. 

The Office of Policy Development and Research will continue to conduct evaluations 

related to perfOJ'1Tl8DCe measurement. OngoiDg work includes assessments of community 

cmpowennent tbrougbHOME IDCI HOPE VI plograms. Future evaluations are likely tC) 

include an evaluation of the Conummity Development Work Study Program. 

I ·;uk-ge ·to BUD 2020: MIIIIIlgDMllt Reform PIIIII 

In order to assist the communities with the issues facing them, without increasing the 

levels of bureaucracy that have eWted in the past, HOD will UDdertalce· several measures 

during FY 1998. 

One of the major innovations will be to establish a DeW field structure conSisting of 

Area Offices with representatives of all four ma;or program areas and Area Resource 

Ceoten (ARCs). BUD's neighborhood "store-front" service centers. ARCs will provide 

customers and commuaities with access to the tuIll'l11ge of BUD programs 8Dd services. 

State-of·the-an tedmology will eaable ARC staff to access information, compile data, and 

produce materials to address customer needs and communicate with program staff in hubs, 

program cc::nters, .aDd offices assigned "back office" processing respoDsibilities. 

In addition, HUD will: 

• 	 Select and train -.if as COIDDIUDity Resource Represeatatives, responsible 

for helping customers gain access to the whole range of BUD services and 

coordiDating with BUD program scaff in hubs, program centers, and Field 

Offices performing "back office" plCvssing fUnctiODS. 

• 	 Establish the Economic Development and Empowerment Service, aligning 

various job skiDs and other programs from CPD, PIH and Housing. 

Programmatically, HUD will: 

• 	 Redesign HUD procurement and contractiDg functions to ensure accountability 

while respcmdiDg flexibly to changing program needs. 

• 	 CoDSOIidate economic development and empowcunent programs into the 

Economic Developmcot and Empowerment Service to improve focus on 

COmDlUJlity eIlIpOWelmeDt. ­

u. S. DepiulilCI4 oCHousiDc ad UrbID Developmcot 

26 
SnEegic PlaD September 30, 1997 

• Use an advanced mapping software system (Community 2020) that shows 

commUDities the impact of HUD ftmding and activities in their area. 

Extemal Factors 

HUD's ability to empo'Wer communities to a large extent binges on the re5OW'ces that 

poor communities can bring to bear in improving themselves. A slowdown in the overall 

economy will result in uncm.ployment for the vulnerable working poor. A failure to find jobs 

for people affected by welfare reform similarly will result in diminished economic resources 

in distressed communities. 

... 

There are also inherent limitations on HUD's ability to "deliver" on quantitative goals 

within J>lock grant programs, which, by their design, fonow a "bottom up" process. Congress 

set up the four CPD block grant programs and the competitive homeless programs to ensure 

that the Federal Govemment did not dictate local policies or priorities. Rather it set up a 

system for community-based planning to ensure that local plans and priorities reflected 

changing community needs and priorities. We call this "commUDity-based planning". The 

Consolidated Plan regulations and the program statutes upon which they were based provide 

limited grounds for rejecting a five year strategic plan or a one-year action plan. Similarly, 

the Notices of F1D1ding Availability for the homeless competitive program ask communities to 

identify community homeless needs and priorities with maximum participation by homeless 

providers and other groups. 

. This means, quite simply. BUD cannot set up and deliver realistic numerical goals on 

"outpUtS" for anyone given year for ccmstruction of housing, jobs, etc. Further, although 

HUD does have authority to sanction a community for failure to implement its program in a 

timely manner, we do not have any sanctions for the failure of a community to carry out 

HUD's current priorities. All that can be done is to highlight priority areas of the Department 

and encourage lagging communities to improve their performance in those priority areas. 

In addition, factors such as poverty and individual challenges exacerbate problems that 

cause people and families to be without homes. Coordination aud collaboration of housing 

and supportive services are crucial to brealcjDg the cycle of homelessness. For some homeless 

persons, such as the ~capped, the attainable goal is se1f-pciency to the extent possible. 

How annual performaace goals support the aehievement of this objective 

Through the Consolidated Planning Process, grantees identify milestones for 

achievement within the applicable fiscal year. Within the confines of legislative mandates 

(see External Factors above), HUD will coordinate comprehensive, SUStajnable solutions to 

urban problems. Our annual goals include increasing the Dumber of grantees who use viable ' 

milestones with timetables in their Consolidated! Action Plans and demonstrate progress in 

improving locally defined conditions. lJ)timate1y,.....u communities meet this goal. In 

u. s. DcpaIbDeDt ofHousmg and Urban Dcvdopmaat 

27 
Sttalegic Pian September 30, 1997 . 

addition, HUD will measure the percentage of milestones achieved by cities,.benchmarking 

the cities against one another. See Appendix I for specific performance measures . 

. . 

• 

-


U. S. DepanmcDt ofHousiDg and Urban Developmcm 

28 
Srrategie Plan September 30. 1997 

STRATEGIC OBJECTIYE #2 


Bdp Communities ud States establish a fuD eoDtiaUDDI of housiDg aDd services designed 

to assist homeless individuals and families in achieviDg permanent housing and selfsafticiency . 

IntrodUctiOD 

The best approach to alleviating homelessness is a community-based process that. 

responds comprehensively.to the varying needs of homeless individuals and families. A 

~ve and coordinated housing and service delivery approach helps commUDities plan 

f~r and executes that balanced response. 

HUD'5 innovative homeless effort works with communities to establish cost-effective 

"continmun of care" systems in which gaps in the housiDg aDd services needed to move 

homeless families and individuals into permanent housiDg are ideatified aud filled. The 

continuum of care system serves the specific needs of all homeless ·sub-populations witbm a 

particular community. It is an inclusive process that coordinates the energy and expericncc of 

Don-profit organizations, State and local govermnental agencies, housing developers and 

service providers,.private foundations, local businesses and the banking community, 

neighborhood grollJ'Sy and homeless or, formerly homeless pcrscms. 

With a continuum of care approach, the coJlllllUDity can design a strategy that works 

best locally to assist homeless persons and families achieve permanent housmg and selfsufficiency. The continuum of care model is based on the UDdcrstanding that bomelessness 

is not caused merely by a lack of shelter, but involves a variety of umnet needs - physical, 

economic, and social. HUD helps communities develop a holistic system through a 

community-based process that provides a comprehensive rcspcmse to the ctift'ering needs of 

homeless individuals and families. . 

The Dcparanent is further committed to ensuring that the non-disc:rimina 

provisions of the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973 are 

fully complied with in programs and activities rcceiviDg Federal financial assistance. 

This strategy is designed to ensure that homeless programs and facilities are·accessible 

to persons \\ith disabilities and address their disability related needs. In addition, the . 

Department ensures that the rights of persons with disabilities arc protected in this program by 

conducting monitoring reviews and investigating c1iscrimination complaints filed against 

recipients of Federal fmancial assistance. 

u. s. Dcpanmcm of Housing aDd Utban DemopmCDt 

29 
Sttaregic Plan September 30, 1997

Strategies 

The· Department proposed in its·FY 1998 budget submission to consolidate the 

activities of BUD's six existing McKinney homeless assistance programs and the Innovative . 

Homeless DemoDStration Program into a siDgle performance-based program. This will enable 

localities to shape flexible continuum-of-care approaches to solving, rather than 

institutionalizjng, home1essncss. 

.The primary strategy of CPD since 1993 has been to foster a Continuum of Care 

strategy in communities with significant homeless populations throughout the United States. 

This has been accomplished by including such a strategy wit1Dn the framework of the .... 

Consolidated PWi undc:nab:n by every entitlement community aDd Stale. It has also been 

carried out by encouraging jointc:oordinated submissions for homeless assistance under the 

competitive programs. 

Among the components of a ful]y operaticmal Continuum of Care System are: outreacb 

and assessment to identify an individual's or family's needs and connect them to facilities and 

services; immediate shelter as a safe, decent alt=Dative tQ the streets; transitional housing with 

appropriate supportive services, such as job training, job placement, child care, substtmce 

abuse treatment, mental health services and iDsttuction in independent living skills; and 

permanent housing or permanent supportive housing arrangemCDts. 

A study by Columbia UDiversity showed that substantial progress has been made in. 

encouraging communities to adopt a more coordinated and comprehensive approach to 

addressing the needs of homeless persons. , 

. To foster a true continuum of options for the homeless, the Department would make 

public and assisted housing resources available to families with cxttemely low incomes. 

HUD's legislative proposals would eliminate Federal admissiODS preferences for public and 

assisted housing, enabling local Housing Authorities to establish admissions prefc:rcnces 

according to community needs. Preferences may be established for families that are homeless 

or threatened with homelesmessif d~ne=ssary by Housing Authori1ies. Homeless or 

at-risk families will remain eligible for housing assistance even in·those Housing Authorities 

not establishing preferences for the homeless, however. This is because the Department bas 

proposed to require tbi.t Housing Authorities reserve significant portions of their admissions 

each year for families with extremely low incomes. Many families making the transition from 

homelessness would fall into this income category • 

..­

. U. S. Dcpanmeat of Housing and Utban Development 

30 
Slalegic Plao September 30, 1997 

Housing· Contributing to the Reduction in and Prevention of Homelessness 

Saleslleasing to. non-profits 

The homes sold to non-profits can be used as transitional housing or similar uses. No 

data exists, however, on the numbers utilized for this purpose or the total number sold. In 

Multifamily, theIc are procedures tbatpermit the sale ofHlJD.owned projeCts to non-profits 

and organized tenant groups on a negotiated basis. Non-profits can also compete to purchase 

HUD-owned projects. 

No priority is provided for Don-profit or tenant pmchases. These groups can .'. 

worklpanner with state and local govcmments via the right of first refusal process mentioned 

above. .' 

Partnership with Health and Human Services and other Federal Agencies 

In reviewing our draft StrAtegic Plan, HHS DOted that "Suppon services for the 

homeless must be comprebeDsive eDCOIDpIssing an social supports such as day care, heaJ:th 

needs, job training, and transportation." 

HHS encourages "interagency C01laborati:)D in trying to provide comprehensive support 

to the homeless." HUD is working with Federal agencies such as Health and Human 

Services, Department of Education, Justice, Agriculture, and Dcpanment of Transportation to 

utilize existing programs, and to create new partnerships to provide a "coDtinuum of care" for 

the homeless. This process is on-going. 

Program Evaluation 

In recent years, PD&R has evaluated all ofthe major HUD McKinney Act p-ograms.. 

Among these are evaluations of the Supplemental Assistance for Facilities to Aid the 

Homeless (SAFAH) program,.the Supportive Housing Demonstration (SHDP) program, the 

Emergency Shelter Gt'ants (ESG) program, and the Shelter Plus Care (SPC) program. In 

addition, in collaboration with the Census Bureau and several other FcdcJ:al ageucies, the 

Department is prescutly conciuctiug a census of homeless service providers. 

FHEO may also use the results of periodic compliance reviews and monitoring reviews 

as a further tool to evaluate these programs. 

PD&R will continue to conduct studies related to measuring the performance of 

homeless programs. Currently, in Collaboration with the Census Bureau and several other 

Federal agencies, the Department is conductiDg a CCDSUS of homeless service providers. This 

will provide an important baseline for measuring the effects of homeless initiatives. The 

Dcpanment is also completing work on a local homeless database system, which will provide 

U. S. Dcpanmeut ofHousiDg aDd Urban DeveIopmcat 

31 
StntegicPlan September 30. 1997 

important tracldng data on homeless individuals, which will help in performance 

measurement. 

. . 

Linkage to BUD 2020: Mantlgemmt Reform Pbm 

Problems cncoumcrcd by CPD iDdudc Jimiu:d resources for managing competitiYe 

. grants; limited staff for on-sitc II1ODitoriDg; fragmented approaches to solving comull.m.ity 

problems; and an inability to completely track m:I respond to market treDds. 

CPD is in the process of comctiug these wealcnesses by seeking legislation to convert 

competitive grants into perfCJmUU'lCbbased grams; outsourcing discrete functions; using 

advanced mapping software 10 aid community planning (Community 2020); aligning resources 

within a new Economic Development and Empowerment Service (see also Objective #1); aDd 

doWDSiZiDg its Headquarters staff. 

BUD has also proposed legislation to ccmsoliciate six homeless assistance programs 

into one Pcr!ormance-based Formula. Grant program. Pemument consolidation will eliminate 

the need for HUD to administer staft'-b)teusjvc, multiple compctitiODS for funds. 

Communities, through local planning boards, may share c:ompreheDsive "continuum of care" 

systemS, which would lie within the overall Consolidated Plan for that community. 

, 

Programmatically, the new Economic Developmem and Empowerment Service will 

allow BUD to: 

• approach homeless problems . locally and compreheDSive1y, 

• ensure role of non-profits and other community organizations, and 

• give cities responsibility for monitoring homeless problems. 

£Demal Factors 

M.acro-cconomic factors caD dwarf die Depaltment's efforts to affect homelesmess. 

Increases in unemployment, the failme to provicie employment for people leaving the welfare 

rolls, and increases in the cost ofhousing all caD lead to increases in homelessness Factors 

such as the rates of domestic violence, substance abuse, and the incidence of disabilities, 

which are associated with homelessness, also are beyond the Department's control. 

Moreover, HUD~s abilily 10 transition people into permanent housing is ccmstraiDed by 

local housing markets, by the ability to place people into employment, and by the availability 

of financial support for these. individuals. . 

Please see also the scc:tiOD on Extcmal Factors UDder Objective ·#1. 

u. s. Dcpanmcm of HousiDg IDd Urban Devclopmcm 

32 
StnIIegic Plan September 30, 1997 

Bow aDDUa} performance goals support the adlievemeat of this objective 

Adopting a co!I1p1'dlensive approach to the prevez;ltiOD of homeiessDess is an integral 

pan of the strategy of BUD. Development of Coutimmm of Care Partnerships in Emergency 

Shelter Grant (ESG) communities will be measured annually, with an ultimate goal of a 

partnerShip in every ESG community by the year 2003. 

But that alone will not solve the problem. For those who already face the plight of 

homelessncss, we must first increase annually the Dumber of transitioual beds tinkcd to 

supportive services, and, IDOtC imporIaDtly, the DIUI1bc::r of homeless pc:rsoDS moved from 

BUD transitional housing to permanent housing. In order to accurately measure this ,"', 

transition, as well as the overall state of homelessoesS, we must increase the number of local 

homel(:SS tracking systemS. 

See Appendix I for specific performance measures. 

, 

-..
' 

u. S. DepubDCllt of Housing IDd Urbm Developmmt 

• 33 
--

strllCgic Plan September 30. 1997 

STRATEGIC QBJECTIVE #3 


IDcrease availability of affordable bousiDg in standard condition to families and individuals, 

particularly the Nationt s poor and disadvantaged. 

IDtroductioD 

The agc:ucy mnains committed to addressing the broader housing affordability needs 

of the Nation to help create housing and homeownership opportunities for all Americans. 

will continue to provide rental housing oppoltUDities by: 

• transforming Public Housing, and 

• increasing the supply of affordable rental housing. 

Strategies 

TransfOrming Public Housing 

Public housing represenlS a tremendous affordable housing resource to lower-income 

Americans. The majority of the 1.4 million units of public housing work SUC«SSfully. It is 

well-managed and provides decent housing to poor families who despezately need affordable 

housing at an affordable price. Public housing units represent one third of all of the housing 

that. is available nationwide to families with minimum-wage mcomes. 

. . 

On the other band, the Department and the Nation is DOW living with decades of 

mistakes in public housing. In too many cases, the original site plans and architecture of the 

developments were flawed. Other times, buildings have o~ved their useful lives. In some 

locations, local management contributed to the deterioration of properties, as did certain 

program statutes and regulations issued in Washington. In other cases, neighborhoods 

changed from healthy residential settings to isolated pockets of poverty and despair. 

In the fU'St term of the Clinton Administration, the Department initiated a 

comprehensive effon to fwldamentally transform public housing. This ttansformation effon 

bas four major components: 

1. Tearing do~ and replacing the 100,000 worst public housing units; 

2. Aggressively interVening to improve troubled PHAs; 

u. s. DcpanmcDt ofHousiDg ad Urban DevelopmcDt 

34 
Slratcgic Pia 	 September 30. t997 

3. 	 Establishing incentives to reward working famili~ encourage families to make 

the transition from welfare to self-sufficiency, and encourage a diverse mix of 

incomes in public housing; and 

. 4. Cracking down on crime and drugs. 

Through these four ~.the·Dcpanment·aDd its· local partnerS ·iiri·unprOving 

the quality of public housing stock and managemeDt aDd maJdng these communities better, 

safer places to Jive. For t:.Ya",pl~ the HOPE VI program bas provided S2 billion in fundjng 

for the demolition IDd revitaH2ation of 68 of the worst public housing developments. The 

Administration's RODe Strike and You're·OutR policY is based on the idea that public housing 

is a privilege, not a right, and residents who commit crime and peddle drugs should be ..... 

screened out or jrnmedj~ely evicted. These efforts contribute to the .Depanment's effons to 

increase access to healthy, affordable housing and will continue. 

The Depatbnent is undenaldng two major efforts in order to advance its efforts to 

transfOIID public housing: comprehensive legislative action on public and assisted housing 

and internal management reforms to impIave BUD's own administration and monitoring of 

the program. 

Increasing the supply of affordable rental bomipg , 

A fundamental role of the Depattweut is to emure that AmeriCIIIS of all income levels 

have access to decent quality housiDg at a cost that does DOt drift out spending for food, 

clothing, and other necessities. This has been a difficult role given budget constraints. Over 

5 million very low income renter households pay more than half their iDcoIne for rent or live 

in severely substandard housing. Until recently the Department was able to make some 

headway in addressing these -worst case needs- for housing assistance by adding each year to 

the total number of families served by assisted housing. Recently, however, the Congress has 

denied HUD's requests for modest numbers of Rinc:rementaJ- units of assistance. 

W'rthout the ability to address directly the severe housing needs of the lowest income 

famili~ BUD's programs are concentra!ing on (1) creatiDg a supply ofhousing that is 

affordable to ralteZ'S and homeovmers whose incomes are low but who do DOt have exilcmely 

low or poverty level incomes; and (2) maintabring the public IDd assisted housing programs 

that currently serve over 4 million needy households, most of whom would have worst case 

needs ifthey were not receiving assistance. 

HUD will construct or rehabilitate more than 400,000 UDits per year through HOME, 

Community Development Block {COBOl, FHA multifamily insurance., Housing for 

Special Populations (elderly and disabled), aDd Housing Opportuuities for Persons with AIDS 

(HOPWA). ContiDued Fec1eral funding for public housing IDd renewal of cxpuing subsidies 

under the Section 8 programs will ensure that the overall number of families ~sted by these 

programs does not dccJiDe and that they provide 4!C=t and affordable housing. 

u. S. Depaarmeut ofHousiDg ad UtbID Deve10pmcm 

35 
suategic Plan September 30, 1997 

Section 8 

HUD continues to request funding for inaemental Section 8 certificates and vouchers 

in order to meet the needs of those Americans who have worst case housing needs and 

do DOt receive housing assist.aDCe. Portable,· teDant-based certificates ad vouchers are 

the best vehicle for a.ddressiDg llJUDet for affordable rental housmg, as w.ell as 

for contributmg to other sttategic objectives such as reducing the isolation of lowincome groups (see objective 4) and providing cmpowament and self-sufficiency 

opportuDities to support the transition from welfare to work (see objective S). 

HUD is committed to cost-effective administration of all of the Section 8 pro~ 

both tenant-based and project-based, to ensure that these programs operate at the 

ioWest cost compatt"ble with providing good quality housing in a broad range of 

neighborhoods. 

The growth in 1CDant-bascd bousiDg assistance provides opportuDities for deconcentration of low-income and miDority families in particulai from our Umer cities. 

The Department seeks to anract a greater number of responsible landlords into the 

Section 8 program and increase community receptivi1y of Section 8 families, and to 

ensure that the families make informed choices about where to live. The Regional 

OpportuDity Counseling program will CDhance the Section 8 program's ability to help 

. welfare familiesmalce the tlaDSition to self-sufficiency and help working families 

continue work. See also Objective #4. 

Public Housing 

Funds will be provided, by formula, for both capital improvements and for 

management improvements. The formula accelerates the allocation and use of capital 

improvement funds by replacing a competitive process which may include a 

complicated, time-conquning. staff'-intc:DSive application process. Housing Authorities 

may use allocated funds for redesign, reconstruction. rehabilitation, renovation, DOD-. 

routine maintenance, such as lead-based paint testing ami abatement, or accessibility 

improvements for the disabled. Allocated fuuds may also be used for replacement 

housing when demolition or disposition is authorized for buildings or entire 

developments that are not viable. 

Federal Housing Administration 

FHA Multifamily will provide mongage insurance to construct or rcbabilitate 

approximately 100,000 uni1s per year UDder.a variety of reDIal apai tmc:nt programs. 

For many of these units, the Multifamily Fast Track Procasing Program will be . 

empl9yed to reduce both time aDd money 'SJfent by the Government in processing 

u. s. J)epaftmeDt ofHousing mel Urban Developmeat 

36 
Slntegic Plan September 30, J99i 

mortgage insurance applications. Housing programs for special populatiODS (elderly 

and disabled) will provide approximately 5,000 units per year of additicmal housing 

under the. Section 202 and 811 programs. In addition, new multifamily projects will 

be introduced for 1Ulder-served markets including small and very small projects, mixed 

income housing, pool insurance aDd balloon financing. FHA will also continl:Je to 

work on alternative systems for program delivery through risk sharing with housing 

finance agencies and Government Sponsored Enterprises (OSEs). 

PhYSical inspection scoresIAsscssment Centers 

HUD is takiDg several to assure that Multifamily projects are maintained in • 

deceDt,. safe and sauitary coDClilicm. Housing is wortmg with pm to establish a new, 

uniform protocol for physical iDspectiODS for all FHA and pm piopenies. In the not 

too distant future, all projeclS will be visited and rated usiDg the new protocol. Each 

project will receive a numerical score for evaluative purposes by the new assessment . 

center. Projects that are DOt in good physical condition will be referred to the DeW 

enforcement center. 

Community Planning and Pevelgpment 

Using funds made available under the HOME States and local participating 

jurisdictions will acq~ CODStl'UCt or rehabilitate approximately 29,000 units of rental 

housing each year. In addition, appIoximately 9,000 families will be misted through 

HOME-fuDded teDaDt baseci"reutal mstaDce. Since the program began in FY 1992, 

over 122,000 rental units have been committed and 37,000 families have received 

tenant based remal assistance. NiDety-onc perceDt of families assisted for n:ataI 

housing are at 500/0 of area median income or below, far uceeding statutory 

requirements. Forty-five percent of families have incomes at 30% of rental housing or 

below, but such families must also receive tcDaDt-based assistance from HOME or 

from the Section 8 program to amble them to pay a reasonable petceDtage of income 

for rent. 

CPD is in the process of implementU1g a new system to more accurately show ~ 

many units of housing have been built or rehabilitated through the Housing 

Oppommities for PersoDS with AIDS (HOPWA), HOME and CDBO programs so that 

progress of one conmumity can be compared with that of another community. CPD 

has a program of technical assistaDc:e to help communities who are lagging'behind to 

improve their performance. 

Low-Income Housing Tax Credit 

The low income housing tax credit is a key~ in the Administration's strategy 

for adding to the stock of rental housing that is affordable without additional subsidy 

u. s. Oepanmeat of Housing mel UrbIn Dnelopmcat 

37 
September 30, 1997 

for families who have low incomes. Tax credit UDits are affordable for families with 

extremely low or poveny level incomes when they also have tenant-based rental 

assistance. The tax credit is administered by the Tnzury Depanment and is evaluated 

by HOD as a major component of Federal housing policy. HUD estimates that the tax 

credit bas produced more than 600,000 UDits of rc:Dtal housiDg since its enactment in 

1986. 

Program EvaluatioD 

One of the most significant annual evaluations on this topic is the "worst case housing 

needs" study. In this annual tepOrt to based on the American Housing Survey and 

the most up-to-dale HUD program data. HUD analyzes the types of American families that 

have the most severe problems with housing CODditiODS and affordability aDd reports on trends 

in those problems over time. The Depaltweut also has on-goiDg a major evaluation ofthe 

HOPE VI program to revitalize distressed public housiag. HUD also has cJevcloped and 

tested resident surveys to measure the quality ofhousiDg occupied by families receiving 

tenant-based rental assistance. Other recent studies include evaluatiODS of the Comprehcnsjve 

Grant Program to modemizc Public housing and of altemative funding mechanisms for 

funding public housing. 

l.inka:e to BUD 2020: MlIIIlIgemmt Reform Film 

pm faces many challenges as itc:ontinues to transfmm public housing across America. 

In order to successfully meet these cballenges, PIH will align is staff resources to address the 

greatest needs. It will esl8blisb centers.that house- "bact office' activities, freeing Field Office 

staff to target their energies on monitoring and providiDg services to 3,400 Housing 

Authorities and the 1.4 million famjlies they house. ­

pm will establish its own graDts center; establish, in coordination with. Housing, a 

Department-wide Section 8 FimlDcial Procus.ing Center; participate in the Depar twent-wide . 

Real Estate Assessment Center; establish Troubled Agency Recovery Centers to work with 

troubled Housing Authorities; and undertake other privatization aDd streamlinjng efforts to 

encourage greaser productivity and accountability with local pm part:nets and customers. 

The cross-c:uttiDg Real Estate AssessnleDt· Center will review physical inspections and 

financial statewents of PHAs and multifamily projects. The Euforcement Center wiD be 

responsible for taking aggressive action to enforce cowpliance with legal requirements to 

preserve .decent, safe, and sanitary housing for lower and moderate income households. The 

Enforcement Center will identify and initiate appropriate sanctiODS and civil and criminal 

actions in a timely manner. For multifamily properties, this may iDclude foreclosure, 

acquisition, or disposition of properties. For public housing agencies with a fai1ing grade -for 

one year, it may include judicial receivership. For-CPO and FHEO grantees guilty of fraud, 

waste, or abuse of funds, HUD may withhold or recapture grant JDODey. 

u. s. DcpanmcDt ·of Housing IDd thbIn DneiopmeDt 

38 
S1nregic Plan September 30, 1997 

Given new, more effective approaches to assessing p~ HUD will be in a position 

to move quickly to identify "troubled" PHAs. .Because of the complexity and sensitivity 

experienced by the Department in past work with troubled agencies, we need to make greater 

dforts to tum around troubled PHAs and prevent them from reaching that stage. This will 

require more staff attention, which is difficult to allocate given the competing priorities for 

administering a multitude of programs with limited staff resources. 

To deal with "failing" PHAs, PIB will establish two Troubled Agency Recovcty 

Centers (TARCs). Any agent/agency receiving. a famng annual assessment score will be 

referred to a TARe, which will develop and implement an intervention strategy to bring the 

agent/agency to passing scores. The TARCs will be arms of pm's existing Office of .... 

Troubled Agency Recovery, lOcated in Headquarters. For further details on this program, 

please mer to page 63 of the Management Refcmn Plan. . 

Programmatically, HUD will revise PHMAP to include better assessment and propose 

receivers for troubled maMgement and privatize the HOME VI construction management and 

development process as appropriate. Authorizing legislation for these, and other reforms, has 

been proposed. For a more detailed discussion, please see page 66 of the Management 

Reform Plan. 

External Factors ,

As with other objectives, HUD's ability to provide aff~le housing to the needy is 

greatly constrained by the broader economy. The number of housing units that HUD directly 

affects is a small percentage of tile Nation's housing stock and a rather small percentage even 

of the stoCk available to those with low incomes. Increases in unemployment, incrcascs in the 

cost of developing housing, and changes' in people's abilities to rehabilitate housing all are 

major factors affecting housing affordability over which HUD has little control. 

Within the assisted stock itself, cxtema1 factors ~ect HUD'5 ability to provide 

affordable housing. When tenant-paid rents are established as percent'of income, decljning 

incomes necessitate greater subsidies. This means that fewer families can be assisted with the 

same amount of funds. These factors make HUD's efforts in this area highly dependent on 

the unemployment rate, particularly among the working poor, and the Dumbers of people who 

lose iDcome as i. result of welfare refonn. 

How aDDual performaDee goals support the achievemeat of this objective 

Increasing availability of affordable housing requires a two-pronged approach. Not 


only does BUD need to increase the supply, but also to transform public housing. To 


increase the supply, we must endorse more multifamily loans and risk-sharing mortgages. 


HUD must partner with communities to shorten the length of time between approval for 


demolition of lminhabitable units and completion orconstruction of new units. Several 


U. S. DepauwCUl of HousiDg ad Urban DeveIopweut 

39 
ScrIIcgie PlIn September 30, 1997 

measures provide a gauge of increased availability. See Appendix I for specific .performance 

measures. 

.. 


-


u. s. Dcpanmeat of~ IIDd un.a Developmem 

40 
September 30, 1997 

STRATEGIC OBJECTIVE #4 

Reduce the isolation of low-income groups within a community or geographical area 

IDtrodUctiOD 

Another facet of the agency's commitment to broader housing affordability is working 

to create housing opportunities for low-incOme citizens. This spatial deconcentration is 


, accomplisbed through the use of tenant-based rental certificates and vouchers and the .'. 


revitalization of deterior8led neighborhoods. ' 


.. 

To easure housing 0pp011DDities are available, the Department conducts periodic 

compliaDce and complaint iDvatiptions of recipients receiviDg Federal fiDancial assistaDce. 

When violations of the Fair Housing Law are revealed, the Department enters into voluntary 

compliance agreements with such recipients umil a remedy has been achieved. 

The Dc.pattmCDt desires to recruit large numbers of priwte landlords to participate in 

the Section 8 housing program and convince citizens where Section 8 residences reside to see 

the Section 8 program as a positive addition to :heir neighborhood rather than a negative. 

Strategies . 

Public and Indian Housing 

Create income divenity ill traditioul pubUe:' bousing through .reat iDceutives to 

retaiDlattract wormg families aDd eacoarage families to move to work or better work. 

Mechanisms such as ceiling reDIS will permit PHAs to retain and attract workiDg families by 

setting ceiling rents that reflect market value. Through the use of eamed incomedisregazds, 

PHAs will create work incentives for newly-employed families by allowing them to retain , 

more of their incomes as they meet the "costs" of transitiODiDg from welfare to work. The 

use of site-based waiting lists, where they can be implemented in full compliance with all fair 

housing laws, will increase. public housing's attractiv=ess to working families by permitting 

them to choose where they live. 

Replace the worst pubUe: housing with less dense, ecODomically integrated 

c:ommuaities. This is the basic strategy behiDd the HOPE VI psogram, which has been a 

catalyst for the transfOnnatiOD of some of the COUDtry'S worst public housing developmentS. 

In additi~ mixed finance development mec;tumisms also create mDted income communities. -' 

u. s. Depanmcnt ofHousing aDd Utban Development 

41 
September 30, 1997 StnIegic Plm 

In keeping with the transformation of public housing and a reinvented HUD, financing 

partnerships are formed with residents, housing professionals, local governments, for-profit 

and not-for-profit organintioDS to form mixed-income communities. 

Provide additional replacemeDt housiDg resources thrOugh ponable Section 8 

vouchers. Section 8 is the only program that enables work-ready families to move to where 

the jobs are located in the growth sectors of metropolitan economies. Movement of families 

throughout the metropOlitan area will support families' efforts to transition from welfare to 

work. 

Improve the Section 8 tClUlDt-based assistllDce program to iDcrcaie private OWDer 

participation and portability throughout the metropolitaD area. One such strategy is the 

propo~ merger of the certificate and voucher programs. The merged program will be easier 

for HUD, PHAs, and private owners to adm;";ster. Other proposed legislative changes would 

make pemwleDt program refoDDS that have been included in receat appIOpdatiODS acts such 

as ending "eDdless lease" mel "take ODe, take all". 

Other strategies are covered by other strategic objectives, such as: encouraging the 

middle class to stay in CCDtraI cities through homeownersbip incentives and increasing public 

safety. , 

CommunitY Planning and Development 

Since the Community Development Block Grant program covers not ouly the poor, but 

moderate income families as well (800At of median income of the area), it would have less 

tendency to concentrate the poor in large low-income housing projects than would programs 

which are restricted to serving the very poor. A majority of CDBG housing projects involve 

homeowner rehabilitation, rather than fundjng large scale housing projects; 

The HOME Proiram is providing opportunities for both n:DlCl'S and owners in a 

variety of locations through tenant based rental a_seance, assistance to new homebuyers, and 

location of projects. Seventy eight perCCDt of HOME UDits are located in census ttacts with 

poverty rates· of less than 400At. New homebuyers m:eiving assiSbDce are located in tracts 

with poverty rates under 20010, as are DeW CODSttUCtion rcutal projects. 

The Depanment9 s Homeownersbip Zones iDitiative also addresses this objeCtive by 

attempting to attract homeowners with a variety of incomes, as well as by providing a 

comprehensive approach to neighborhood revita1jnrion. 

All CPD programs, CDBG, HOME, Youthbuild, EZs and ECs, and homeless programs 

include an element of empowerment which helps the poor achieve a degree of upward 

mobility. Many Family.Sclf-Sufficiency programs in public housiug and Section S are ftmdcd 

under the COBG proiram. Both temporary and Jiirmanent jobs for low and moderate income 

u. s. Depanmalt of Housing aDd Urbm DeveIopmcut 

42 
September 30, J997 

persons are created under p»D programs. To the extent that the incomes of families 

receiving services under these programs are improved, they would bave increased opportunity 

for ~dential freedom ot choice. , 

Finally, many cities such as Baltimore, Detroit, Cleveland and Boston have gone 

through an imponaDt renaissmce and urban revitalization, assisted through CPO programs. 

This should bave the secoudmy impact of ma1dng the city a more attractive place for persons 

of all incomes and reducing income concentration. 

Housing 

" , 

Although HousiDg has DO stated program to reduce the CODCCIltiation of subsidized 

housinglpreservaton of assisted housing in (like PIB demolitiODS), expiring subsidy 

COD1rIdS aDd prepaymeDts may produce tbis JaUlt. ,HoweYCr, these would be due to financial 

or, market decisiODS by OWDCIS aDd DOt due to specific HousiDg iI1itiatives; DODetbeless, 

counseling for persons relocated would help to deter teCOJlC:elltndion. 

Single Family COUUseJiDg grants go to providers of comprehensive couuseling services 

who are also capable of doing fair housing COUDseling More iwpoltautly, coopetative 

agreements under the couuse1ing program permit non-profits to SPODSOr homebuying and 

homeownership classes conducted by Single FacWY staft These classes educate first time 

buyers in the opportUDities ad respDDSlDilities of and' allow mu:1erservcd 

populations a greater opportuDity to purchase where they wish. 

Mixed Income Communities 

In keeping with the traDSfonnation of public housing and a reinvented HUD, 

parmerships are fonned with residents, housing professionals, local governments, for-profit 

and not-for-profit organizations to fonD mixed-income communities. 

Housing's new Multifamily mixed income program underwriting procedures are only 

applicable where FHA credit cnbancement is c:ombiDed with pm HOPE VI funds to finance a 

mixed income community on au old public ho~. site (see section 

, on HOPE VI)~

PI"Op'UIl EvaluatioD 

Among the JkpaitmeDt'S recent efforts to ,develop policy and standards with regard to 

this objective are a study on "The Location and Racial Composition of Public HousiDg in the 

United States- and a repon to Congress on "Promoting ,Choice in HUD's Rental Assistance 

Programs. - Other recent or on-going work on this objective include the Moving to 

Opportunity Demonstration, an4 a major study of housing discrimination. These are 

important baselines for assessing future performance to achieve this objective.

-

U. S. Depauwellt of HousiDg lad Urba Developweat 

43 
September 30, 1997 

PD&R. will continue to conduct studies related to performance measurement. 

. Cmrently is the MoviDg to 0pp0nuDity Demonstration, ·wbich will show the effects 

of cieconcentration. Also underway is an assessment of the effects of public housing 

clcsegrcgation efforts. PD&R expects to begin a major study of housing discriminatio~ which 

. will show progress in elimjnating barriers to deconcen1ration. 

Unkage to BUD 2020: MtuUJgement Reform Pliln 

Handled by both Housing and PIB, financial documentation for the Section 8 rental 

assistance voucher program has been neither centralized nor easy to obtain. A key element to 

improving Section 8 processing is the creation of a Section 8 Financial Processing Center for 

both Housing aDd PIR. CurrcDtly, Housing aDd PIB have two very distinct methods for 

plocess.iqg payments: HousiDg uses a mODtbJy voucher system based on actual subsidy needs, 

while PIR uses an annual budget projection,-with adju.stmeDts made upon receipt of year-end 

statements. UDifying these processes will bc:uefit both business lines. Functions will include 

budgeting, payment scheduling. ccmtract reservations aDd revisions, financial statement 

.revisions, rent ca1ClilatiOJiS and income verification. 

PIB will also consolidate special (oon-fimded) applications and processes for its unique 

programs in a single Special Applicaticms Center. Those applications are: 

dcmolitiODldisposition. designated housing. and S(h) homeownersbip. Consolidating these 

discrete functions will maximize staff effectiveness and increase program accountability. 

Consolidation will also eliminate cum:Dt dUplication of efforts in the field. The center will 

standardize application processing and usc staff specifically trained for evaluating and 

processing these applications. . 

For other reforms which will implCt on this objective, see the Linkage Section under 


Objective #3. 


Extemal Factors 

The revitalization of neighborhoods is discussed in detail under Strategic Objective ##1. 

Community revitaliDtjon, however, will not necessarily reduce isolation of income groups, 

unless there is an explicit and successful effort to attract residents with a variety of incomes. 

In pan because of factors, such as high taxes, bigh rates of crime, poor schools, and density, 

many people do not wish to live in central cities. These factors, over which HUD has little 

~ntro~ thus greatly affect its ability to promote economic integration. This is a sensitive 

issue: not only do inner city minorities fear 'that they are going to be displaced by white 

middle class by a process of "gentrification" but many suburban mmmunities oppose those 

with rental assistance moving into their neighborhoods. 

Through tenant-based rental certificates and vouchers, persons of low-income are 

provided with the opportunity to move to better fiCighborhoods. Many prefer to remam at, in 

u. S. DepaulDeat of HousiDg ad Urban Developmatt 

44 
--

StrIIcgic Plaa September 30, 1997 

or near Central Cities. The tiDal choice remajns with the individual. Rents and factors 

related to housing production in more aftluent neighborhoods tend to be higher than 

elsewhere. Assisting households to live in less impacted neighborhoods, whether through a 

supply or demand side subsidy, costs more than simply providing bousmg assistance. The 

desire to subsidize more units, rather thaD to provide units in a variety of neighborhoods, is an 

external factors related to this objective. 

The politicalland.scape also is a key extema1 factor. Section 8 tends to be 


administered by jurisdiction-based housing agencies. This can impose administrative baniers 


to people who wish to move from high poverty areas in one jurisdiction to low poverty areas 


elsewhere. . 


. Please see also the section on Extemal Factors under Objective #1. 

Bow aDuI performauce goals support the achievement of this objective 

Defining annual pc::rfonna.'Ce goals for this objective is particuJarly difficult. We can 

utilize ceDSUS data to measure the percent of Section 8 families (with children) who are Jiving 

in low poverty census tracts. However, IS discussed UDder Extcmal Factors, the choice 

remajns with the ilJdividual. We can measure amount of counseling aDd Dumber of 

revitalization projects completed, but ultimately,~outpUts will defiDe our level of commitment, 

but not ac:hievc:meut Measures of our success would include the number of low-income and 

minority families participating in the Departmental Rcgioual Opportunity Counseling Program 

located outside areas of high poverty and minority c::oncemration. As BUD's strategic 

. planning process evolves, we will continue to address this issue. 

U. S. Dcpanmcat of HousiD, ad Urban I>e'veIopmeDt 

45 
September 30. 1997 sttarc&ic: Plan 

STRATEGle QBJECTIVE #5 


Provide cmpowermcDt ad scIf-sufficicDey opportuDities to support low-income individuals 

and families as they make the transition from dependeDC)' to work. 

IDtroductiOD 

The DepaIbDent is working with community orpnjzatjons, States, cities, and other 

Federal agencies to effectively implement this objective. The Department proposes an initial 

four-pronged action plan to begin implementing the Personal Responsibility and Work 

Oppott\Ulity Reconciliation Act of 1996: . 

• 	 CreatiOD aDd retcatioD or jobs; 

• 	 Using tenant-based rental assistance strategically to Iiak welfare recipients to 

jobs through innovative uses of maewcntaJ housing assistance and regional 

counseling; and . 

• 	 CoordiDate bousiDg assistance with Welfare Reform efforts; and 

• 	 Providing and leveraging services to help welfare recipients make the 

traDsitiOD from dcpcDdency to work through expansion of the Bridges to 

Work iDi1iative, funding for Public HousiDg Supportive Services, expansion of 

Neighborhood Netwotks Jeammg ceaters massisted bousing amd the 

Youthbuild program to provide access to eclucation aDd job training. 

HUD is in a unique position to assist in helping people move from welfare to work. 

Through public housing, Section 8, and CDBG target areas, HUD programs have a physical 

presence where the poor live. HUD programs provide flexible assistance capable of effecting 

different interVentions that may be necessary to promote self-sufficiency. HUD can both 

provide the assistance needed to create and retain jobs and provide the training and other 

service that Iowa' income individuals need to be able to take advantage of those jobs. 

Flexible formula grants, like CDBG~ let communities take advantage of more restricted 

funding provided by other agencies. CDBG, for exampl~ can fund local plans for promoting 

self-sufficiency. It can also fund services that may be needed to help people take advantage 

of opportunities provided through the Departments of Transportation and Labor. HUD, in 

fact, is working with other agencies to help promote self-sufficiency. For example, its JOBS 

Plus demonstration is jointly funded and closely Coordinated with HHS. HUD's Bridges to 

Work demonstration features coordination with Transportation. 

-


u. s. DcpanmcDt of Housing md Urban DeveJopmem 

.46 
September 30. J997 

Strategies 

Creation and Retention of Jobs 

BriDging jobs and job access to disbessed communities requires working with other 

Federal agencies and contributes to the Administration9 S goal of making welfare reform work. 

The Depanment is working with community orpniDtions, States, cities. and other Federal 

agencies to ~ectnely implement the Perscmal Responsibility and Work Opportunity 

Reconciliation Act of 1996 by. creating good jobs through our economic development 

pNgIIDlS and especially through implementation of Section 3 of the Housing and Urban 

Development Act of 1968. 

. 'targeting neighborhoods with high concentrations of poor families, including those on 

welfare, BUD's core economic developmeDt programs can be used to generate jobs that will 

be available to wdtm recipients c:DteriDg the work force. The programs summarized below 

will produce good jobs for those aeigbbmhoods. 

Empowerment Zones and Enterprise Communities CEZJEC) <Round m 

A key element in the strategy to produce suitable jobs in distressed areas and empower 

low- and moderate-income persons to take adV8l!tage of those jobs is the EZlEC program. In 

December of 1994, the BUD SccIetary mmounced the designation of72 Urban £ZIECs. For 

every dollar ofEZ funds, S18 of private mvestmcDt are leveraged. More than S2 billion in 

private investment bas been made. Most oftbe investment ($1.7 billion) is targeted tOward 

economic oppommities. . 

Each of the 72 Urban EZlECs developed peri'0DDaDCe baaebmarlcs which provide • 

blueprint for an emrepreneurial way to distribute funds 8Dd to fuJfiJl commitments. Each EZ 

or EC bas compiled these bendJ!narks into a UDique Strategic Plan for urban revitalization. 

The strategic plan is to ~Ditor these %ODeS aDd CODlIDDDities dosely and to help eusure· that 

progress proceeds in an orderly fashion. A database is bciDg developed to keep ttack of 

progress in each EZ and Ee. On March 3, 1997,' &aetaty Cuomo asked his ltepresematives 

to assume responsibility for supervising program JDaDageJDeDt of the EZIEC initiative in their 

regions. A number of them have already set up teams from the BUD Field Offices to oversee 

the management of the EZs and ECs. 

HUD is promoting partnerships with private and community service providers who can 

help residents achieve self-sufficiency and bas proposed an expansion of Empowerment Zones 

to help communities create more job opportunities. There are hundreds of activities funded 

and/or underway to promote human development and self-sufficiency in the 72 Urban 

Empowerment Zones ami Entaprise Communities. A Comptebeasi"ve Jist of these activities 

was contained in a recent report on every Zone or Community based on the first ammal 

performance reponing. ­

u. S. DepiilWCDt of Housing IDe! thbaD DeYelopmau 

47 
Suategic PJan September 30, 199j 

Current strategy includes legislation to create another round of 20 EZs and 80 new 

ECs across the country. These new EZs and ECs would focus on moving residents from 

welfare and poverty to work. 

COSG. Economic DeYelopment Initiatives CIIDJ) and Section 108 

-..------_.-....... - -- -.. 

Section 108 allows COIIJDlUDities to leverage private funds for large-scale job creation 

and commumty development iDitiativ.es. EDI graDIS supplement these programs by providing 

grants for large-impact projects. EDI money may be used to capitalize innovative financial 

institutions and has aln:ady bee:D used very successfully for this purpose. CPD will continue 

to improve the leverage of CPD programs by focusing job creation activities on the ~OD 

108 loan guarantee along with the EDI grants. 

CPD has sought to cxpaDd the use of the CDBG program for job creation activities. 

From 1993 to 1996, projects funded UDder 1bc CDBG CDtitlement aDd non-cntitJ.ement 

programs will create an estimated 471,000 permanent jobs through economic development 

activities when these projects are completed. They will also create an estimate 472,000 other 

jobs, such as CODStnlCtion and service jobs. 

The Consolidated Plan rule aDd a subsequent January 1997 notice calls for the creation 

of Neighborhood Revitalization areas. lQ these aas sources would be marshalled to facilitate 

a grantee·s ability to engage in eomptebcDsive CODUDUDity revitalization stlategies in 

distressed neighborhoods. Waivers in COBG programs ere offered ifproposed projects ere . 

located in such neighborhoods. 

The job creation activities of Section 108lEDI and COBG often include a nexus with 

manpower development program. Many of these activities were highlighted in the Houston 

conference on Best Practices. In Fall River, MA, Section·l08 and CDBG float loans saved 

existing jobs and created D~ jobs in those distressed communities. For example, the Fall 

River Office of Economic Developmem coontiDatc with the Bristol County ttaiDing 

Consortium (Jobs TrainiDg PanDersbip Act), to provide opportuDities for cormectiug trained 

low to moderate income persons with DeW employment opportuDities. In another don, 

Jefferson County, MO, used a holistic job development stlategy to create the Jefferson 

Riverport Intanaticmal Ccnta' (JRI). It included traiDiDg and day care facilities available to 

employees of JRI, and a comprehensive public transportation liDk to JRl for low and moderate 

income persons in Jefferson County. 

COBG and HOME Funds 

State and local governments USC these formula block grant funds to assist DeW 


homebuyers through developmc:m subsidies and dowupayment and closing cost assistaDce 


Often through a state-wide netWOrk of local lenders, States provide downpayment grants 


making it possible for many low-income families.tO come to the settlement table. Cities, with 


u. s. Dcpanmcm of Housing and thba Devdopmeat 

48 
Sntegic PlaD 	 September 30, 1997 

a desire to stabilize their tax bases and increase the pcu!entage of homeownersbip, use CDBG 

and HOME funds to construct or rebabilitate deteriorated units to increase the·supply of 

standard housing for. sale. The HOME Program'since 1992 has assisted more' than 75,000 new 

homebuyers. 

Brownfields 

The iDtcragem:y Brownfie1ds initiative, described elsewhere in this Plan, seeks to 

create job opportuDities on COiJ18minated sites in cities by demring up the sites and financing 

economic development activities after the sites are cleaned. BJOWDfields clean-up was 

identified as a Best Practice at a recent Houston conference. Louisville, KY, used CDSG 

funds to aide in the removal of contaminants from an area which did not have a grocery ·store. 

CDBG also funded a DeW supermarket on that· site which employs 60 low aDd moderate 

income people. An EPA grant was also sought for devisiDg other redevelopment strategies 

for the area. 

Section 3 

Section 3 oftbe Housing and Urban Development Act of 1968, as amended by the 

Housing Act of 1992, requires that economic opj)OrtuDities generated by HUD financial 

assistance shall, to the greatest extent feasible, be given to low and low-income pcrscms• 

.	This applies to public housing programs and to programs for housing rehabilitation and 

construction and other public coDSttUCtion projects. It is a program that essentially links lowincome and w.:1fare recipients to jobs. It has already resWtcd in hundreds ofjobs (temporary, 

seasonal aDd permanent) going to low-income persons. It has also helped eligible Section 3 

Businesses to secure thousands of dollars in HUn contracts (i.e. businesses owned by Section 

3 residents, those employing significant DUlDbcrs of eligible .Section 3 or those· 

willing to subcontract a sipificant percent of the total value of their BUD contracts to 

Section 3 resideDt-owned businesses). 

Priority for training aDd employzDeat is provided to Iow-income persons who are 

residents of public aud assisted housing, n:sidcnts of the Deighborhood where the programs are 

being operated, participants in Youthbuild, and homeless persoDS. PrioritY in contracting is 

also given to businesses which offer opportunities to these classes for low-income persoDS. 

The Department wiI1dircct recipientS of HUD funds to take Section 3 seriously and to 

• 	 aggressively work with their agencies and contractors to reach eligible Section 3 residents and 

to help them access jobs, training, contract opportunities or other economic benefits. 

Section 3 ensures that employment and other economic opportunities generated by the 

expenditure of HUD financial assistance·shall, to the greatest extent feasible, be directed to 

low-income persons, particularly those who are tecipients of Govemment assistance for 

housing. Since 1995, implementation of SectionTbas resulted in the increased employment 

u. s. Depaaueut ofHousiDg Ed UrbIIl Dew:lopmcat 

49 
September 30. 1997 

of public housing residents and creation of rc:sideDt-owncd businesses. Some residents have 

gained self-sufficiency and purchased and relocated to siDgle family homes. 

Goyemment-wide Employment Program 

As part oftbe welfare to work initiative, HUD, together with other Federal agencies, 

will hire welfare recipients over the next four years in various jobs throughout Headquarters 

and Field Offices. Individuals will be provided with traiDmg in job skills, office 

practices/demeanor aDd counseJling will be provided where nec:essary. Issues of child care, 

ttansit subsidies, mcntoring, etc. are being explored to easure that all possible assistance is 

provided in those areas where needed. 

Link Welfare Recipients to Jobs 

HUD housing programs help link welfare recipients to jobs. Often, there is a 

mismatch between where welfare recipients live and the location of entry-level jobs for which 

they have the appropriate educ:atitlll and skills. Stable and affordable housing can also mean 

the difference between steady employment and welfare receipt. The portability of Section 8 

vouchers and certificates allows recipients to move wbereyer jobs exist, ifthere is housing 

available. , 

Incremental Rental Assistance .Linked to Welfare Reform 

Jurisdictions that receive Welfare to Work Challenge Grants develop coordiDated 

strategies between their PHA and the State or local welfare agency for the use of incremental. 

rental assistauce. 

CPD and other HUD programs: Welfare reform measures 

. CPD is now working with other program areas of HUn to develOp strategies to 

provide jobs to long-term welfare recipients. These proposals have·not yet been finaJin:ci 

There are hundreds of projeccs all over the United States funded under the CDBG program 

listed in the 1995 Action Plans which offer support activities to improve the lives of public 

housing residents. Often these fund self-sufficiency programs for public hoUsing residents. 

CPD has undertaken several steps in strengthenjng citizen participation, as discussed in 

detail under Customer Service. 

Regional Outreach Counseling 

Counseling can help Section 8 recipients - who arc often welfare recipients - identify 

housing locatioDS that improve access to jobs and ~ponive services throughout a 

metropolitan area.. ....,.. 

U. S. Dcpan:meat of HouSing md Urban Development 

so 
September 30, 1997 

CoordiDate BoasiDg Assistance with Welfare Reform Efforts 

Rent Incentives to Reward Work 

BUD supports changing public and assisted housing rent rules that discourage work. 

When teDant rental payments are tied to income, any increase in income leads to an automatic 

rent increase. To prevent this disincentive, HUD has supported ceiling rents in public housing 

and provided Housing Authorities with the flexibility to disregard some or all earned income. 

Encourage partnershUts between PHAs and local social service agencies 

HUD bas included pro\isions in the Public Housing Management Reform Act that \\;11 

eDCOUI'8ge PHAs to collaborate with local TANF - administering amd employment agencies to 

iDsurc·tbat residents have access to the resources they need to become self-sufficient rather 

than mandate that PHAs create reduDdant case management programs for residents, HUn will 

reward PHAs that help residents tap into existing community services, and help service 

agencies reach residents. 

Services 

Transition from Dep;ndency to Work • 

Limited funding from HUD can be used by program administrators to. leverage 

substantial additional Federal, S~ local and nonprofit resources. Resulting programs 

. help residents prepare for, find and retain jobs. 

Bridges to Work 

Bridges to Work. is an employment demoDSttation program designed to assist lowincome households in cities by bridging the geographic bmiers that isolate them from 

job oppommities throughout the larger metropolitan area. The demonstration was 

started in 1996 and is operating mfive cities - Baltimore, Chicago; I>enver, 

Milwaukee, and St. Louis. The goal of Bridges to Work. is to assist work ready, but 

unemployed or underemployed, city residents to secure and retain jobs via a timelimited but integrated services strategy. Bridges to Work provides transportation and 

other supponive services to help link central city residents to suburban jobs. This 

effort is coOrdinated closely with the Welfare-to-Work Transportation Initiative 

proposed by the Department of Transportation. 

Public Housing Supportive Services 

PlH provides Economic Development and Supportive Service grants to PHAs that 

collaborate with their local welfare offi~ other local partners for the purpose of 

u. s. DcpanmcDt of HousiDg aDd UrbID Development 

51 
September 30, 1997 5rn11egic Piau 

helping their residents tnmsition from wd.fare to work.. Allowable activities include 

job training and busiDess development training. as well as supportive services such as 

child care, transpOrtation and counseling. The Tenant Opportunity Program, with 

grants for reSident groups, similarly alloWs for job training and supportive services. In 

additiOD, the PH Drug Bjmjnation program contams drug prevention and treatment for 

.public housing JeSideDts -_... - . " 

Services under tbeCDBG Program 

The CoDSOlidated Plan seeks to improve the coordiDation between public housing and 

community development activities. This improved coordination has resulted in ." 

projects all over the Uuited States where the COBG program has assisted in providing 

services for "public housiDg JeSideDts Many of1besc projects are written up as a best 

prictice in corrnnmrity developm.erlt. The propam has assisted in providing youth and " 

adult services all over the United States that will assist in reducing welfare dependence 

of low-income residents. 

Neighborhood NetWorks 

The program, Neighborhood Networks, provides computer leaming centers and 

education and employment serviCes in priwtely oWned assi~ housing developments. 

These are funded from existing project revenues and reserves and do DOt 

require DeW appropriatiODS. " 

Youtbbuild 

Youtbbuild is a highly effective program that provides at-risk youth with educational 

and emplO)'lDCJlt skills. The program offers 16 to 24 year old high school dropouts 

"gc:neral aCademic and job skills traiDblg, as well as apPlenticeship constructing and 

rehabilitating affordable housiDg. 

Youtbbuild is a highly successful progIam which offers an opportunity for high school 

" dropouts to receive education and 1raiDing in the building trades and, at the same time, 

build or rehabilitate low aad moderate iDcome housing. 

In the third round ofYoutbbuild approvals from 1994 through 1996, some 4,200 jobs 

'Wa'C created. Another competition has just been announced. 

HOMETsrumt Based Rental Assistance 

Jurisdictions may use HOME funds to provide tenant based rental assistance to assist 

welfare recipients as they tnmsition to jobs...-HOME teDaDt based rental assistance is a 

u. s. DepliUilCiUt ofHousia& IDd Urban Devdopmenl 

52 
---

September 30, 1997 

flexible resource which communities can integrate into locally-designed plans to assist 

persoDS with special m:eds, including those panicipating in self-sufficiency programs. 

. Homeless Assistance ProgTams 

The Department's Homeless Assistance programs both provide funding for supportive 

services and leverage SUpponive services from local sources to help homeless persons 

move toward self-sufficiency.; A significant portion of the Emergency Shelter Grants 

and Supportive Housing Program funds is used to provide services, iDcluding job 

training, day care, and case management to eDlpOwt:r homeless persons to move into 

the mainstream of American life. The Shelter Plus Care program, which provides 

rental assistance, requires a one-to=one match in supportive services from local sources. 

panneiShm with Health and Human Services 

InreviewiDg our draft Strategic Plan, HHS DOted that: "Under the strategies section there is DO mention of programs for cbildren. Programs such as Substance Abuse and Mental 

Health Services Admjn;stration'~ Starting Early Starting Smart Program provide support for 

children ages birth to seven, or HHS Secretary's Youtb Substance Abuse Prevmtion Initiative 

for ages 12-17. There is also DO mention of support services fot health care such as clinics, 

and health education classes.W , • 

HHS also noted that: "Under this objective issues of child care, transit subsidies, and 

memoring are not programs that need to be just explored but researched, knowledge 

developed, and programs impl~ted either through interagency agreement or private sector 

. collaboration. Pannersbips c:rcated to support child care, transit, aDd mcntoring will facilitate 

job retention.W As discussed under Strategic Obj~ 2, HUD will explore agency 

coordination with HHS and other agencies over the coming months. 

Program EvaluatioD 

The Department currently bas underway two major demonstrations related to 

empowerment and self-sufficiency; ODe is Bridges to Work and the other is Jobs Plus. In 

addition to these demonstrations, HUD has recently produced analyses of the Section 3 

initiative and the Youth Apprenticeship Program, both of which are intended to provide jobs 

for public housing residents. We have evaluated the Gateway Program in Charlotte, NC and 

Operation Bootsttap, both of which attempted to promote self-sufficiency among public 

housing residents. Also recently, the Departmeut has begun an aggressive research program 

in the uea of crime and assisted housing. Wark so far has included a crime survey, 

development of victimization survey methodologies, and a set of case studies on wdefensible 

space" and assisted housing. 

u. S. DepanmcDt of Housing mel Urban Development 

S3 

--

HUD also bas underway an evaluation of the Empowerment Zone and Enterprise 


Communities program, which is the major recent job creation initiative. Additicmally, HUD 


evaluatious of grass roots economic developmc:nt initiarlves, of economic -development 


programs operated by States anc;t local go.vemments thro~ the Community Development 


BloCk Grant program, and of the Neighborhood Development DemoDStration also r=ently 


focussed on this topic. 


_.-----­

PD&R will continue to coDduct studies related to performance measurement. Research 

resultiDg from the JOBS Plus aDd Bridges to Work demcmstlatiODS will help provide 

benchmarks for what we can expect from this type of program. It is also likely that PD&R 

will soon undertake an .effort to assess the dieds of weJ.fare refonn on assisted housing. ~." .. 

Linkage to BUD 2020: MlIIUlgement Rej'Ot'lll Pliut 

·CPD approves o.ver 1,300 competiti.ve gnmts a year, but staff reductions of 23% since 

1992 have prevented adequate monitoring. The iDtroduction of the Grants Management 

System includes an annual comparative review of all emitlemeDt grantees, showing the full 

spectrum from "best practices" to higlHist projects ad cities mneed of tec1mical asistaDce 

and moDitoriDg. Structurally, the Office of Block Gram Assistailce and the Office of 

Affordable Housing will be combined into the Offi~ of Community Development. 

. , 
 For other reforms which will impact on this objective, see also the Linkage section 


under earlier objectives, especially Community Resource Rqllesenutives (Objective #1). 


External Factors 

As with other objecti.ves, HUDts ability to provide self-sufficiency opportuDities is 

constrained by the nature of its programs. Where HUD provides fieXJ.ole assistance to cities, 

. counties, houSing agencies, and States to use at their discretion, HOD has DO direct control 

over the extent to which the funds will be used to address this objective. ­

Also as with other objectives, broad economic factors greatly affect the extent to 

which low income people will become self-sufficient. Vigorous, sustaiDed economic growth 

will do more to promote self-sufficiency than BUD can . do. And a decline m the c:conomy 

will more than offset HUD's best efforts. 

The job readiness of those with low incomes is another key external factor. Where 

people reach adulthood with little education, there are limits to the types ofjobs to which they 

can aspire. Certainly, HUD-fundecl job opportunities and services can help. and along with 

educatioual and training opportuDities funded thrOugh other agencies, they should have an 

important impact. But realistically, relatively few people who have reached their 30s with 

little education, with families, and little work history, will achieve great success in this 

economy. 

u. S. DepInmcDt of HousiD& as UrbID DeveIopmcat 

54 
su-pc: Plan September 30. 1997 

Please see the section on External Factors under Objective #1. 

Bo,,' annual performance goals support the achieveDleDt of this objective 

The ultimate goal of this objective is to move an increasing Dumber of residents of 

assisted multifamily projects off welfare. The measurement of this indicator will depend on 

future collaborative effons between HUD~ HHS and Labor. Providing economic opportunities 

for low and moderate income persons through creation and retention ofjobs will also be the 

result of coordiDation with other·agencies. However, HUD can measure the number ofjobs 

created as a ditect result ofHUD fUDds, especially EDl and Section 108. We also can 

increase annually the Dumber of partDersblps th8t help residents acbieve self-sufficiency.in 

each Empowerment Zone and Enterprise Community. '.'. 

.. 


See Appendix I for specific perfonnance measures. 


I' 

u. S. DepaIlDeal of HousiDg aud Urban Developmc:nt 

55 
September 30, 1997 

STRATEGIC OBJECTIVE #6 

Increase homeowaenhip opportunities, especially in Central Cities, through a variety of 

tools, such as expanding access to mortgage credit. 

Introduction 

One of HUD's most important fuDcticms is to inacase homeowD:rship oppornmities 

for all Americans. Through homeownersbip~ a family acquires a place to live and raise··. 

children. A home is also an asset that can grow in value and provide the capital needed 'to 

finance future needs of the family, such as college or fiDanciaI security for retiJement. 

HUD will increase homeownersbip through various efforts, including the Urban 

Homestead Initiative. HtJI)'s dons include: 

• 	 Federal Housing Administration (FHA) 

• 	 HoDleOwnership Zones " 

• 	 Government Naticma.l Mortgage Association (Ginnie Mae) Targeted Lending 

Initiative ' 

• 	 Government-Sponsored Enterprises 

• 	 The Natioaal Homeownersbip" Strategy 

• 	 Homeownership Empowerment Vouchers 

• 	 HOME Program Assistance to New Homcbuyers 

• 	 Assistance to Habitat for Humanity and other self-help homeownersbip 

organizations 

• 	 Public Housing Homeownersbip 

• 	 "Indian Loan Guarantee Program 

HUD's effons in these areas have met with great success: 

• 	 In 1996. the United States bomeowncrship rate rose to 65.4 percent, the highest 

level since 1981. 

• 	 73.2 percent of FHA purdlase tranSaction business in calendar 1996 was to first 

time homebuyers (purchase transactions are DOD-refinancing). 

• 	 29 percent of FHA' s first time homebuyer business in calendar 1996 was to 

minority borrowers. 

• 	 Ensuring methods of integrating accessible, single-story dwelling units into 

projects receiving HUD funds or insured by HUn under its insurance programs, 

that consist of multi-story townho~ and/or seeldng o~ ways to ensure 

accessibility of multi-story townhouse developmentS. 

-'" 

u. s. Depanmeat of Housiag IDd UrbID DeYelopmcat 

56" 
September 30. 1997 

Strategies 

The Urban Homestead Initiative 

Homcownersmp is often the most effective antidote to the many problems that plague 

a city. Over the last two years, significant progress has been made toWards President 

Clinton's goal of reaching an all time high level of homeownersbip in America by the year 

2000. The homeownership rate has increased from 64.2 percent at the end of 1994 to 65.4 

percent today. The expansion ofhomeownersbip over the last three years is the largest 

expansion in 30 years. 

. 	 . .... 

However, the most significant urban cballenge remains - the exodus of the middle 

class frQm the cities. In order to halt - ami hopefully reverse - this trend, HUD will begin an 

-UrbaD Homesteading Initiative.· 

The goals of this initiative are: 

• 	 lowe- homeowncrship costs for city homebuyc:rs 

• 	 make commUDities safer 

• 	 increase usc of homeownersbip empowerment vouchers 

• 

FHA: Lowering Homcownership Costs for City Homebuvers 

HUD has reduced the mortgage insurance premium (through the FHA insurance 

program) for first-time homebuyers obtaining homebuyer counseling. The up-front premium 

would be reduced by 12.5 percent (from 2 percent to 1.75 perceDt of the mortgage amount). 

HUn expects 45,000 homebuycrs a year to benefit from the reduction which makes 

homcownership more affordable. 

To stimulate further activity and reduce disparities between suburban and ceutral city 

homeownership rates. the President also bas lDDounced an additional reduction of 2S basis 

points targeted at middle class and lower income fust time bomebuycrs in central cities who 

receive homebuyer counseling. 

FHA Insurance Fund 

FHA insures private lenders against loss on mortgages financing single family homes, 

multifamily projects, health care facilities, property improvements and manufactured homes. 

The primary goal of FHA' s insurance programs is to expand homcownership and affordable 

housing for all Americans. The FHA programs are organized into four major activities: 

• 	 The Mutual Mongage Insurance (MMl) Fund, which suppons FHA's basic 

single family homcownership progtSin and is self-su.eta;ning; 

u. s. Depanmcm of Housing IIld Urban DevelopmcDt 

57 
Scmegic Plan September 30, 1997 

• The General Insurance (GI) Fund, which supports a wide variety of multifamily 

and single family insured loan programs; 

• The Special Risk IDsuranc:e (SRI) Fund, which supports multifamily rental 

projects and loaDS to high-risk borrowers; and . 

• The Cooperative Management Housing Insurance (CMHI) Fund, which suppons 

iDsurance on market-ratecoopezative 8J*ltwent projects and,.Jike the MMI . FUDd, isself..snst8ining ... 

FHA serves that portion of the population locked out of the CODventiODal market. 

FHA has become a more resu1ts-oriented, financially accountable credit-enbancemcnt 

operation over the last four years and will continue to serve the homeownership needs of 

people and places that the private sector leaves behind. 

Making ColDJl1Ul1ities Safer - The Officer Next Door Initiative 

In order to encourage homeoWnersbip in central cities, they must be safe enough to 

raise a family. To make central c.ities safer, HUD proposes to use its programs to further the 

goal of community policiDg~ by provictiDg iDcentives for police officers to Jive in· commUDities 

in which they work. Under the Officer Next Door initiative. the FHA will offer police 

officers a 50 percent discount on the purchase of HUD-oWDed foreclosed properties in 

designated revitalization areas. BUD wiD also e.1COurage its local PHAs to create special 

preferences .which allow police officers to ICSide in public housing clevclopments 

Homeownqship Zones 

This program targets homeownersbip expansion in hmer cities. These grams leverage 

substantial public and private investmeDt, used by cities to recJaim abandoned and disuessed 

neighborhoods through the creation of large-scale homeownersbip developments. Program 

funds support infrastructure costs, site Pleparation, land acquisition or deferred-payment 

mortgages to working fammes. 

Self-Help Homeowneiship Opportunities Program 

Habitat for Humanity, Housing Assistance Council, Neighborhood Reinvestment 

Cozporation and Northwest Regional Facilitators have all received grants to aeate 

bomeownership oppommities for low-income families. Funds are used for land acquisition or 

infrastructure impro~ent, and will stimulate new investment from public and private 

sources, including significant amounts of "sweat equity" from both the homebuyers and 

volunteers. 

u. s. Dcpanmem ofHousiDg _ UrbaD ~ 

58 
Sntcgic Plan September 30, 1997 

Ginnie Mac: Targeted Lending Initiatives 

GiJmie Mac is using its Mortgage-Backed Security Program to provide incentives to 

lenders to do more business in targeted Central City Areas. Through the Targeted Lending 

Initiative (TLI), GUmie Mae reduced the guarantee fees it charges lenders by up to SO percent 

for making mortgage loans 'in any of the Nation's 72 Empowerment Zones or Enterprise 

Communities and adjacent eligible Central City Areas. 

The incentive to lenders is expected to increase Central City lending by S5 billion by 


the Year 2000. The initiative's first year (FY 1997) has a goal of SI billion increase. That 


goal will be exceeded. resulting in increased homeownersbip for almost 15,000 families. 
'0 

Govemment-Spopsored Enterprises (GSEs) 

The Federal Housing Entetprises Financial oSafety aDd SoUDdDess Act gives HUD the 

° responsibility to mODitor' GSE compliance with the fair lending provisions of that ad and the 

Fair Housing Act. HUD also has the respoDSlDility to eslablish goals for GSE pm-chases of 

mortgages in urban, rural aDd UDdcr-served areas to expand homeownersbip opportunities for 

low- and very low-income families. 

Homeownership fugpnwerment Vouchers P 

ApprOxjmately 1.4 million households receive Section 8 certificates and vouchers to 

help them rent apartments in the private market. Under the Section 8 program, the Fec1eral 

Government makes up the difference between a family's rental housing costs and the °amount 

a family can afford. However, there are many low-income families who are able to accept 

the responsibilities of homeOWDership but cannot do so because they are caught in a spiral of 

renting. The CUD'CJlt Section 8 rental housing proglam cazmot assist these households. ° 

The administration IJOW proposes to allow hard-working families to usc Section 8 

assistance as Empowerment Vouchers to become first-time homcbuyers. The usc of 

Empowerment Vouchers is consistent with the admitristration's goal to promote family selfsufficiency, encourage the f~on of household wealth, and foster healthy communities. 

The administration's public housing reform bill includes provisions that would enable working 

families to purchase their own homes by using Section 8 subsidies to support the debt services 

on the mortgage. Under the administration's proposal, a family must have iDcome from 

employment and must make a contribution toward their own downpayment. 

Because the underlying mongages to be used with Empowerment Vouchers will be 

originated,by private mortgage lenders, it is important to get the participation of the secondary 

markets to purchase the loans from lenders and sell them to investors.lbis allows a lender to 

continue making mongages. 

U. s. DcpanmCDt of Housing and Urban DeftJopmcot 

59 
--

Strategic Plan September 30, 199; 

To help launch this important homeownership initiative, Freddie Mac has pledged that 

once the legislation passes, it will participate in a demonstration program to purchase up to 

2,000 mortgages originated by private lenders using the Section 8 Homeownershipl 

Empoweancnt vouchers. Under the terms of tb; agreement between Freddie Mac and HUD, 

Freddie Mac would originate mortgages requiring three percent down paymentS in order that 

low aud Yay-low income families can become homeoWDers. The down payment would come 

from the family's Oq-saVings-asweir as from gifts, loaDs, or __ The family will . 

contribute a reasonable amount of its income toWard the monthly payments. The balance of 

the mortgage payment will be provided through the Empowerment Vouchers. 

PJH: Public Housing Homeowpersbip 

As part of its application for Hope VI assistaDce, a PHA may propose to ildude 

homeownersbip opportunities for public housiDg residents within a mixed fiDancelmixed 

income developmc:at. Eligibility requiremems for such UDits must be essentially the same as 

the program req~ of other HUD bomeownership programs such as Nehemiah and 

Section S(h) of the 1937 Act. A PHA that proposes homeowD=ship activities, submits a 

Homeownership Plan 10 BUD that describes all aspects of the proposed homeownersbip 

activities. HOD's proposed legislation will increase oppommities for public housing 

homeownersbip by allowing PHAs to sell units to organizations that will serve as conduits for 

homeownership sales. These organizations will !rumage aDd orgazUze sales ami provic:le 

assistance to eligible families as they purchase homes. Homes must be sold to eligible 

families within 5 years and any proceeds from sales must be used for hoUsing pmposes such 

as resident organizations on capital replacc:meDts. 

rIH: Indian Loan Guarantee Prpgram 

This program, administered by the Office of Public aDd Indian Housing, provides loan 

guarantees for Native American Families and tribally designated housing entities (formerly 

Indian housing authorities) to purcbasc, c:cmstruct and/or rehabilitate single family homes on 

restricted land and in designated lDdism areas. It provides oppommities to expand 

homeownership through the private financing ofhome tnortgages which would otherwise not 

have been possible because of the UDique status of Indian land. Private financing for the 

purchase of homes in Indian country was almost DOD-eXistent prior to the implementation of . 

this program in 1994. 

The National HomeowpershiP Stratm 

The National HomeownerSbip Strategy is a group of housing industry and Govc:mment 

representatives who have developed a plan to boost the na1ioual bomeownersbip rate to 67.s 

percent by the year 2000. Amoug the national partDerS are 60 lJ8donal housing organizatiODS 

and their affiJjat.es The strategy will continue to focus on increasing the number oflocal 

homcownership partnerships working in support of this effort. 

u. s. DepatwcDl of HousiDg IIDCi UrbIn Development 

60 
September 30, 1997 

A key focus of this partDCrSbip is opening markets to racia11Dd ethnic minorities and 

others who had not realized the American dream of homeowncrship. The homcownership goal 

can only be achieved if homeownership significantly increases beyond the 43.?O/'level at the 

end of 1994. In fair lending best practices agreements, local lenders express their ongoing 

commitment to reach out to central cities with information about the homebuying process and 

to establish fair lending goals in their communities. . .. 

Homeownership Retention 

BUD must Dot only encourage homeownership, but must also address the issue of 

homeownership retention. Increasing the rate of first-time homebuyers is useless unless those 

homebuyers continue to succeed in homeownership. 

CPD programS address the issue of reteDDon from the pezspective of maintaining the 

physical existence of the home. From 1993 to FY 1996 CPD programs assisted over 

1.1 milliOD persons with housing rehabilitation. MOst of tis assiSDllV:e went to 

existing homeowners under the CDBG program. In FY 1992, CDBG entitlement 

gramees expended $443 million in grants aDd loans for rehabilitation of single-family 

dwelling units owned by existing bomeoi\lDerS _ in FY 1993, grantees expended 

S440million. A total Dumber of 163,691 single family dwelling units during the two 

year period were rebabilitatecl with CDBG CDtitlemcnt funds. Of these. units, 91 

percent wee owned by low- and modc:ratc-income persons. The HOME program 

provides assisamce to existing low-income homeowners for home repairs. HOME 

participating jurisdictions spent $277 million to rcbabili1ate 18,500 units for existing 

homeowners in 1994 and S181 mDlion to rcbabili1ate 11,soo UDits in 1995. 

Cumulative production through JUDe 30, 1996 for existing homeowners is 47,000. 

Housing 

FHA insurance programs are designed to offer opportunities to potential home-buyers 

who mighi otherwise not be able to realize their dreams of homeowuership. For 

people who have obtained an FHA·iDsured mortgage, and who encounter fiDanciaJ 

difficulties which result in a mortgage delinquency, FHA has structured a Loss 

Mitigation Program which will maximj2Z the oppornmity for borrowers to retain . 

homeownership and cure the delinquency on their mortgage. 

Existing relief measures such as special forb:arancc, mortgage modifications, preforeclosure sale and deed-in-lieu. are being been expanded to cuable a greater number 

of homeowners to be eligible for the programs. A new tool, partial claims, suppons 

homebuyers who can only partially recover from a financial difficulty.

- U. s. Depanmeat of Housing aad Urban Development 

61 
September 30. 1997 

With the help of these Dew tools FHA expects that, by the year 2002, the Dcpanmcnt 

will help 200A of all homeowners (or approximately 12,000 families a year), who in 

the pist would have lost their home to foreclosure remain in their home and "cure" 

their delinquency. " " " 

Planning for the Future -- .._-- --- - --.. _.... __. 

In addition to expanding new homeownership opportunities, the Dcpanmcm will also 

assist the Nation's large and growing elderly population in maintajning viable homeownership. 

The Department will promote accessibility in FHA insured aDd DOD-FHA iDsured single 

family homes so that homeowners may inaintain indepeDdeDce in their homes as they become 

" elderly. 

Program Evaluation 

HUD has conducted evaluatious for programs inteDded to promote homeownership for 

low income families. Apaong these recc:at effons are evaluations of the Habitat for Humanity 

homeownership program, HOPE 3, the SiDgle Family Property DispositioD DemcmstratiOD, the 

Section 203(k) program, and pre-purcbase counseling progrpms. The Depattweut also 

recently completed a major IS$"SSII teI1t of Indian housing needs and program, which examined 

options for increasing homcowncrsbip in India country. 

As the Depal bDent pursues the goal of iDc:reasiDg the homcowncrsbip rate, it will 

continue to track homcowncrship. As part" of this effon, it wD1 Jncmitor the production of its 

majo~ programs. such as FHA, HOME, and COBG in their effect on bomcowncrship. Special 

anention will be given to measuring the results of individual programs, as well as to the 

combination of programs (e.g., housiDg built with HOME aDd insured by FHA)., and how they 

contribute to the change in the national rate. 

Linkage to BUD 2020: Mllftllgelllelll RqDrm Pbm 

Single Family Housing cum::nt1y performs loan production, asset management and 


propcny disposition with 2.080 employees in 811ocatiODS across the coUritly, in addition to 


190 Headquarters staff. The creation of Homcownersbip Centers (H0Cs) wiIllCDeZate 


economies of scale and encourage better use of technology. To "jump start" the traDsi1ion, 


HUD will either streamline or outsource Real Estaie Owned activities and seD nearly all 


assigned notes. 


lbis consolidation and streamJining will provide faster, more uniform service to 

clients, lenders and borrowers. Loan production will iDcrcase in targeted populatiODS with 

better marketing and ouueach. Processing time for iDsurance eadorscmcms wiD be cut from 

two weeks to one day. Providing bigbc:t quality. more cfiiciCDt service to the customer will 

allow HUD to achieve its homeownership objccti1=. 

u. s. Defctment ofHousiJa& aDd Utbau Developmalt 

62 
September 30, 1997 

Proposed legislation in the Multifamily Management Reform Act of 1997 includes the 

extension of FHA note sale authority permanently. Note sales reduce staff drain that results 

from having to service troubled properties and notes. Reducing the bmden on sraff will allow 

HUD to improve the delivery of services to its clients. 

Estenaal Factors 

Housing is greatly dependent on conditiODS in the financlal markets for the success of 

many of its programs. For example, ifinterest rates are high, many poteDtial homeowners 

cannot afford the cost of first-time bomeownersbip, resulting in much reduced production 

volume for FHA. Similarly, ifthe economy is weak with bigh unemployment, FHA IQanS 

may be adversely impacted by defaults since many financially sttapped homeowners may not 

be able 'to make their mortgage payments. . 

In other areas, such IS the Naticmal Homeovme:a:ship Strategy, HousingIFHA is a key 

player in the pannersbip of various organizations attempting to raise the Dational 

homeowncrsbip rate, but Housing is ut the dominant player aDd is uuable to raise the rate to 

the target without the ccmc:erted effort of ap the parlDeiS. . 

How aJUluai perfOrDIuce goals support the achieYCDleat of this objective 

Increasing the national bomeowncrsbip rate to 67.s% by the Year 2000 remains a goal 

of the Clinton Administration. Wrtbin the limitatiODS set forth UDder Extemal factors, above, 

HUD Will do everything it can to reach this goal. We will increase the amount of single 

·family FHA .mortgage insurance in underserved areas each year and increase the share of first 

time homebuyers through Housin& FHA and GimUe Mae programs. Through PIB programs, . 

we will measure the number of public housing residents and Native Ameriams purchasing 

homes. However, purchasiDg alone will DOt suffice. Homeownership colmseJing and other 

services must address homeownership retention. The objective to this would be to reduce the 

default rate•. Wrthin the Iimi1atiODS stated UDder Extemal Factors, above, BUD will provide 

services targeted to the reduction of the default rate. 

·u. S. Dcpanmeat ofHousiDg IUd Urban Devdopmeat 

63 
September 31:1. 199: 

SmATEGle OBJECTIVE #7 

Promote equal housing opportunities for those protected by Ia'ft', 

IDtrodudioD 

As HUD fundamc:ntaUy alters its organb3fioual structure and reforms its management 

approach to administering its programs, it is essential to shape a DCW strategy for promoting 

equal housing opportunity for those the law protects apiDst discrimiDation. ... 

A new strategy must: (1) focus all discretioDar)' eI~ of the fair housing program 

(h~ financial and material resources) more effectively; and (2) measure their impact more 

precisely than before. The ability to outcomes in order to justify resources is more 

critical than ever. in the context of shrinking budgets and staffing. 

This Dew strategy for the deployment of discreticmaryptogram resources will replace 

approaches which have resulted in the spreading of scarce resources over widely dispersed 

areas of the country in an effon to battle discrimiDation aDd promote equal housing 

opportunity. Instead. resources must be more higJlly focused and better coordiDatec:l with each 

other in order to achieve a meaningful impact. They also must be coordiDated with: (1) the 

other program areas of the DepattmcDt; (2) with other Federal agencies, State 8Dd local 

govermnents; and (3) with the private sector, includiDg DOt-for-profit aDd for profit ho~ 

consumer and civil rights components. 

The strategy which follows is • Significant c1epanure from previous approaches to fair 

housing. The four stralegic components described below are designed to respond to the 

challenges of the Results Act, to maximize the effective use of the DeW FHEO structure of 

HUBs and Zones, and to make use ofthe HUD management reforms·tbat c:Jistinguim between 

monitoring. auditing and enforcing OD the one band and furthering, facilitating, promoting and 

partnering on the other. In so doing. they are intended to increase the c:mpbasis OD . 

"pannering" both within the Department and extcmally with HUD program recipients and 

those organizations and individuals who, whether recipients or not, bave a major stake in 

helping to create a Nation of open communities, 

The new strategy must be mindful of the fact that many disability rights organizations 

reported that the Department is funding a large Dumber of townhouse developments (multi1 	 FHEO will continue to investigate all complaints and to undenake all required CIIforcemCllt 

activity whenever and wherever required. This stllIegy addresses the use of our discretioaary 

fair housing resources to better achieve meaningful results, 

.".. 

u. S. Depaumaat of Housing mel Urban Developmeat 

64 
Slrarcgic Plan September 30. 1997 

story UDits) which are, by their II8tUIC, inaccessible to people with disabilities, and that it is 

not enough to just make the lower level of such units accessible. We have been asked to 

assure that multi-story townhouse develOpments integrate single-story units to meet the S% 

accessibility requirements under Section S04 of the Rebabili1atiODS Act of 1973. 

The Department intends to promote-equal hOuSing opportunities by encouraging the 

"visitability" concept throughout the homeownership and other housing programs. The concept 

meaDS that homes will have at least one entrance at grade (no step) and all doors contain 32" 

clear space. 

HUD's efforts to promote equal housing opportunities go beyond enforcement. ..-. 

. DiscrimiDation is reality for many.AmcricaDs, particularly the poor. HUD's programs and 

initiatMi's strive to provide housiDg, employment, and services to disadvantaged Americans, 

many of whom are ethnic minorities. Thus, HUD"s programs such IS Section 8, COBG, and 

HOME, which are targeted to the poor, DCCessadly have IS their end the promotion of equal 

opportunity. 

One America: Cracking Down on Housing Di!9impqp 

To further the President's recently announced initiative on race, HUD poposes to 

double over the next four years the pcm:Dtage c.f housing discrimination cases where 

enforcement action is taken. This step is vi1a1 to eusuring One America because the freedom 

and dignity of choosing where you live is a choice every American should have. 

Strategies 

DemoDStrate the impact ·of FBEO programs on .apaDdiDg housiDg opportunities and 

addressiDg discriminatioD in measurable ways by CODceDtratiDg program resources in • 

selected Damber of communities. 

FHEO will develop criteria to select a fixed number of communities - urban, 

suburban and rutal - in all of the ten HUBs that our program operateS. These selections will 

be made to assure a reasonable representation of communities with a variety of geographic, 

demographic and program characteristics revealing civil rights problems so that they will be . 

fairly representative of the diverse nature of fair housing program cba11enges nationwide. 

Such factors will be considered as: their degree of segregation; changing racial and other 

demographics; the pi:esence or absence of private fair housing enfcm:ement activity and 

certified State and local agencies; the extent, quality, and effectiveness of local fair housing 

planning; the existCnce of effective regional institutions; the extent of mortgage lending to 

minorities, and the DatUre of housing issues identified in the Analysis of lmpediments. 

The full range of FHEO enforcement, cozupliance and program activities (such IS 

FHIP, FHAP, and voluntary programs) will be provided in these locations with the objective 

U. S. Depai1malt of Housing ad Urban DevelopmcDt 

65 
September 30, 1997 

of reducing discrimiNation in housing and housing related services in those communities by 

application of a focused civil rights effort. The program will build upon the jdeurification and 

analysis of impediments to fair housing and a community's plan to address them. Such 

actions are required by HUD fot receipt of funding under the Depanment's major CODJDlunity 

development programs. The Office of FHEO will scelc to work with communities to develop 

program approaches which will remove those impedimeats and to measure the real impact of 

those focused fair housiDg offons. . 

Data baselines will be developed against which benchmarks can be measured over a 

. ten year period to chart progress in achieving equal housing opponunity. The baselines will 

track the extent of such measures as: increases in mortgage Jending to protcctcd classes,.the 

availability of property insurance and mortgageS in minority 8DdIor inner-city or lower income 

areas, the existmce of UDits 1KX:CSSl"blc to pelSODS with disabilities, discrimiDation complaint 

levels, 1be jncideDcc of cIisc:rimiDabcm in sales or reaIIl of housing, the existmce of 

inappropriate/iDadequa bousiDg choices for with disabilities, the existence of 

c1iscrimiDatory zoning and !aDd use regulations, the cxtcat of segregation in public aDd assisted 

housing, aDd the removal of idel'Jficd barriers to housing mobility and choice. Progress will 

be measured over the ten year period to dctc:rmiD.e the extent to which program c:ompcmeIltS 

are successful in producing meaningful outcomes. 

£Xpaod in measurable ways the impact that atJD'. programs ad the hoasiDc aad 


urban developmeat-related programs of other Fedenl DepartmeDts ad ageacies iaave 


OD houiing oPPOrt1lDities by foeasiDc Federal resources OD prolDotiDg greater hoasiDg 


choice. 


This objective is the key to the impact that HUD's housing and urban development 


programs will have on the success or failure of HUD's entire Strategic Plan. The cxteDt to 


. which HUD succ:ccds in any of its other Slratcgic objecti~ will dcpc:Dd c1irec:tly upon the 

degree to which it succeeds in its more focussed and coordinated approach to aeatiDg greater 

housing mobility and choice for all, espcciaIly lower income and minority families. Wrthout 

such opportunities, the Depanment will be unable either to provide acontinuum of housing 

and services to assist homeless individuals and families or to increase the availability of 

affordable housiDg to low-iDcome and miD~ families to reduce their isolation. 

Failure to achieve greater housing mobility and choice will also make impossible the 

empowcnnent and self-sufficiency of low-income individuals and famDies needing desperately 

to make the transition from welfare to work. This will also mean confining whatever 

homeownersbip opportunities they may have to the urban core where good jobs are scarce. 

While HUD's programs have iDcludcd civil rights related requirements for many years 

in its effort to meet its I'C$pODS1Dility under the Fair Housing Act to affirmatively further fait: 

housing in HUD programs, few J!'ICZ1ingful measures exist to determine ifthese requirements 

have been effective and the exteDt to which they.Jaave achieved the desired result. 'Ibis 

u. s. Depanmeat oCHousiDg md Urbm Devclopmeat 

66 
SIralegic: Plan September 30, 1997 

strategy component will seek to identify meaningful indicators of equal housing oppornmity in 

each ofHUD's program areas and to develop systems to measure their status. Data baselines 

will be sought for each program and'progress will be measured at regular inteivals through ­

stronger interDa1 BUD COOpe1atiOD aDd sbariDg of existing data among BUD program areas. 

These should become eross-cuttiDg p:rformaTft measures and should be used to replicate 

program requirements where succeSSlS'8cliieVed ana-to c::mnirie the proc:eSs-aDd the substance 

of requirements wbc:re meaningful progress does not result. 

Such bldicators may include levels of segregation in HOD assisted housing aDd 

communities, existeDce of accessible aDd visitable units aDd other indicators developed with 

HUD program areas to measure the outcomes which demonstrate the extent to which ~ 

programs are providing housing choice.. . . 

FHEO will also forge new and stronger external partnerships with other Federal . 

DepalbDents and agencies, sharing and -using existing data sources to the greatest extent 

possible and using the other Federal resources to iDcreasc the Dnpact of fair housiDg 

requirements. Executive Order 12892 c:Iirccts the Sec:reaary of HUD to create and chair the 

President's Fair Housing Council, proWting HUD with a Yebicle to lead and partner with 

other key domestic depanments to develop and deploy a more broad--based and comprehensive 

strategy for affumatively furthering fair housing. , 

PaI1Der with "stakeholders" in the chOHll comm1lllities to seek. ad apud apon areas 

of common ground and lhared interests iD working toward the goals of equal housing 

opport1lDity ad opeD comm1lDities. 

FHEO will seek pannersbips with civil rights, disability advocacy organimions, 

private fair housing groups; community-based iDstitutiODS such as churches, temples, and 

neighborhood associations; housing industry groups such as mortgage l~ propertj 

insurance providers, sales and r=tal housing-related associations.and building code 

organi?atjons; and State and local Govemment agencies such as real estate Uceusing agencies, 

social service agcocies, and civil rights eu.forceweut agencies, state attorneys general; even 

those having a stake in the oUtcomes FHEO seeks. 

. Where the potential outcomes 1ft perceived positively, FHEO wiD wort with those 

stakeholders to facilitate their involvement in achieving them. Where the outcomes are 

viewed with fear and suspicion, FHEO will seek through dialog and outreach to alter 

perceptions in a more positive and CODSttUCtive direction. 

Partner "'ith BUD recipients and other housing-related public aDd private organizatioDS 

to promote open commUDities. 

FHEO -will partner with a selected number,..9-f housing-re~ orgmi",tions and 

providers in the commUDities chosen in Component I above to include model partnerships that 

U. s. Depanmeat of Housing and Urban Development 

67 
Saalegje Plan September 30. 1997 

demonstrate successful joint efforts to reduce discriminatory practices and promote open 

commUDities. 

This component is aimed at establishing "8. positi~ facilitator-like relationship· with the 

selected entities, throUgh which HUD will be a c:ooperatiDg parmer in developing a shared 

model that can be applied in relationships with similar CDtities. A range of recipients (private 

developers, assisted housing mamgerS;""PHAS;-elc1 Will be selected. -HaUmaib of this 

-partnership \oVill be education, outreach, volUDtaly programs, best practices, teclmical 

assistance, etc., aimed at achieving. pre-determined 1m housing objectives that can be 

measured. For example, HUD could work with private multi-family providers to develop 

improved outreach aDd JM1'kcring approaches; to employ screening techDiqucs that meet.. 

requirements of Section S04 and the Americans with Disabilities Act to assure better matching 

of accessible units -with pcrsoIis with physical disabilities, to develop teclmical assistance . 

materials.which can be used nationally, etc. S1KU'Ssful results can be promoted by the 

partners to others in the same class. . 

FHEO will work closely with pm to provide PHAs with additioual flexibility and 

technical support in the c:hoseD commUDities for demolition, modemization, vacancy 

consolidation and establishing sitc-based waiting lists and cei1iDg rents. 

FHEO will work closely with FHA to pm.vide greater flexibility and "workout" options 

for private owners and managers of "troubled" multifamily housing developments in the 

chosen communities to _return them to cJecmt; safe IDd sanitary coDCtitiODS at affordable rents 

and increase their participation in Section 8 aDd regional opportuDi1y counseling programs. 

Program Evaluation 

Twice in recent years, HUD has c:cmciucud major assessmeDlS of housing 

discrimination. These idemify the basic outlines of the DatUre aDd extc:Dt of housing 

discrimination in America. BUD anticipates beginning another such study soon. Also related 

to this objective is a recent evaluation of the Fair Housing lDitiatives Program (FHIP). The 

Department has underway two important studies of the effects of assisted housing OD 

neighborhood conditions and has recently completed an assessment of scattered site housing. 

Other related studies are on the characteristics of neighborhoods with Section 8 recipients, 

public housing projects, and HOME program developments.- Additionally, BUD has just 

begun aD assessmeD1 of the effects of public housing litigation settlements on racial 

deconceDtration. Other recent related projects studied the characteristics of neighborhoods 

with Section 8 recipien~ public housing projects, and HOME program developments. 

U. S. Dcpanmcot of HousiDg and Urban DeYclopmcDt 

68 
SCmegic Plan September 30, 199i 

Liakage to BUD 2020: MllllagemDlt Reform PlII1I 

. FllEO faces cballenges in fragmented teSpODSi'bilitics and lack of accoUntability; 

duplication of Field Office oversight fuDctions; inefficient separation of staff resources 

between enforcement and programIcomp1iaDce; aDd inadequate use of technology . 

. To overcome these problems, FlIEO will eliminate the sepa1ation between enforcement 

and programIcompliaDce fuoctioDS; cross-train staff, CODSOlidate Field Office oversight and 

policy famctiODS; iDtegratc fair housing J4iDciples through HUD's other program areas; create 

mechanism 10 assure coontiDated cJevelopmeDt.aDd dissemination of uniform FHEO policy, 

regulations and public information; and make greater use of other area's technology. .'. 

·Specifically, FHEO will consolidate existing organjutjous and employees aDd contract· 

where appropriate with outside investigatOrs, auditors and attorneyS. Community Resource 

Representatives (See also Objective #1) will be trained in fair housing laws, issues 

surrounding Section 8 recipients, and other pertinent fair housing issues. A process will be 

established 10 ensure that fair housing compliance is included in assessing PHAs. Section 3 

will be moved from FHEO to the Office of Small and Disadvantaged Business Utilization, to 

take advantage of greater expertise in economic development and procurement. 

To streamline existing front-end reviews,#other program areas will expand their current 

application procedures to include routine front end-reviews DOW performed by FHEO for the 

Co~hensive Improvement Assistance Program, Family Self-Sufficiency, Comprehensive 

Grant Program, MultifamUy Development Programs, Section 108 Loan Guarantees and 

.Annual Action p~ 

External Fac:ton 

A key underlying factor over which HUD has little influence is simply the nature and 

extent of discrimination in the society. .Conceivably t Americans will become more accepting 

of people who are different and discrimination will diminish It is, however, equally 

conceivable that·discrimination will increase or become a policy issue in different aspectS of 

American life. In either case, the result will be imponant and would be largely out of HUD's 

control. 

Broad economic factors undoubtedly are also key. Vigorous, SlJStained economic 


growth should provide opportunities for minorities and women to succeed. With greater 


economic success among disadvantaged groups, one would expect greater integration in other 


aspects of society. Conversely t economic decline likely will result in greater social rigidity. 


The education system and its results are important external factors. Where segregated 

schools result in different levels of achievement ~people of different ethnicities, it is more 

difficult to achieve integration in other aspects of society. 

U. s. Depaluoeat ofHousiDg and UrbaD Development 

69 
Saategic; Plan September 30, 1997 

Bo,,' aDUual performaace goals support the achievemcut of this objective 

This comprehensive, targeted approach to combating housing discrimination will result 

in a level of effectiveness that will-have • measurable impact on redUcing d.iscrimiDatory ­

practices. !be measures of effectiveness of concentrating FllEO program resources in a 

selected Dumber of cmnmunities will allow us to determine the steps Dea"$Slry to cany out 

the larger strategy on a National basis. The performance goals provide the blueprint for FHEO 

to pannct with fair housing groups, housing proViders, and local goverLiIDCDIS for the most 

effective use of resOurces. Our work with other areas ofBUD and local conmnmities to 

eliminate impediments identified through the ADIIysis ofImpediments, combined with 

collaborative initiatives with other Federal agencies will allow FHEO to steadily its . 

effectiveness. The successful outcomes· from these targeted activities will provide the base 

from which FHEO expands its efforts to additional commUDities in the future. See Appendix 

I for specific perfmmance measures. 

, 

-


U. s. Depanment ofHousins ad UrbaD DeveIopmau 

70 
September 30. 1997 

CUSTOMER SERVICE 

A. full ciesaiption of BUD acnoDS taken to improve customer service was given in the 

HUD Customer Service Report to the National Performance Review (1996). HUD's program 

was rated one of the top programs in the Federal GovemmCDt. What follows below are 

specific efforts by the JDljor PogrmDS of HUD. 

Housing/federa} Housing Administration 

The Office of HousinglFedcral Housing Adminlstration has made great strides in the 

area of customer service. We have conducted two formal smveys of our external customers 

and issued two reports. In additio~ FHA bas held numerous .focus group sessions with 

iDdustrY replesentatives to determine how best to proceed with legislatiVe aDd program 

cbaDges. PartDerShips hPe heeD forged with iDdustry and special interest groups. 

FHA has changed the way it does blJsi.Dess as a result of its customer service outreach. 

FHA's use oftbe Web has grOWD extensively and will continue to expand. Many important 

documents pertaining to the business of FHA can now be fOUDd on the Web, as well as many 

infonnatioual pieces. Staff have been 1rained and will continue to receive training on how to 

best address the Deeds of customers. We are also streamlining aDd automating routine 

processing procedures for Single Family mortgage insunmce programs. 

Fair Hou.q"g and EqpaJ Opporpmity 

Customer service is a high priority of mEO. To this end, FHEO has conducted 

customer satisfaction suneys of FHAP partners - State and local fair housing ageDcies - to 

get their IISV'SShieDt of BUD's performance. FHEO has also surveyed FHAP complaiDants to 

obtain an assessmcat of FHAP agency performance. The findings have been shared with 

HUD and FHAP admiDistrators. Complainants gave our FHAP partue1S high marks in 

conducting a fair and impartial investigation and in treating them with courtesy and respect. 

Our next task is to survey the respondents (the persons again$! whom the complaints were 

filed.) to get their pc:rceptiODS of the complaint pI0CC5S. Eventually, all FHEO programs will 

be surveyed. 

Public and Indian RsnmPR 

PIH uses "Forums" on the Web to foster DOt ODly communication between IRJD to 

Housing Authorities, but also between Housing Authorities and HUD. This allows peers with 

the same problems to COD1aCt each other in order to provide solutions amongst themselves in 

order to assure quick commtmication. 

-


u. S. DepartmeDt of Housing mad Urban Deve10pmcut 

71 
--

Sepu:mber 30, 1997 

In addition to the "forums" process, PIH also uses the Web's electronic mail 

component as a tool to provide direct feeclback to HousiDg Authorities and the general public. 

This effort allows for the elimination of the paper process and supports a quick response to 

unique problems. " " 

Another activity involves the development of a "resideDt survey" (iDdirect customer) to 

measure the level of satisfaction and resident perceptions ofjUst "how VielloUi"Public Housing 

customers arc delivering services. The results of these surveys will further eDbance our 

ability to provide guidance and technical assistaDce to PHAs. 

Community P1anp;ng and Development 	 .... 

To eusure effective customer service, CPD staff places special emphasjs on gettiDg our 

$fate and local panne:rs to empower CUStomers to play a unningful role in sbapiDg the scope, 

direction, and priorities in local plans aDd programs to use CPD resources. 

It has done this through the following teclmiques: 

• 	 Strengthening citizen participation requirements for the local Ccmsolidated Plan 

which is needed to qualify for all CPD programs. Each strategy aud statement 

of needs (every fi\le years) aDd action plan JayiDg out what is to be ckme.witb 

CPD funds for the year ( everY year) must be reviewed by citizeDs, hearings 

held, and citizens given a reasonable opportmJity to commcm Citizen 

comments must be included in the Consolidated Plan aloug with a description 

of wbal actiODS were taken on those comments. 

• 	 ADnual evaluation of the adequacy of citizI:n participation by each grantee. 

• 	 MaJdng available to our State aDd local panne:rs the computer tec1mology to 

present computer-generated maps to citizeDs. They show wbae projects 

proposed for the year are to be located in relation to cxi.mng DCighborhood 

conditiODS. It is mOre understaDdable to see one map than review a long and 

complex plan. " " 

• 	 PJeparing executive snmmaries of over 1,000 Consolidated PlaDS, with 

computei' generated maps; that have been placed on the Web for access to any 

one in the United States who uses the Web. This is designed to ensure that the 

Consolidated Plans are understandable by citizens and mnmnmiq groups. 

• 	 Sale of over 300 computer packages at a below market price (SI25) to groups 

and citizens throughout the UDited States so that they can generate their own 

maps. The packages contain disks with local census data. 

• 	 Development of a simple format for peseming annual performance and 

evaluation reports for each grantee in a form that citizeDS can UDderstaDd. 

Citizens "must have 15 days to comment before the report is submitted to HUD 

annually. 	 ." 

u. s. pcpanmcm of HousiDg aDd UrbaD Developmcm 

72 
strategic PlID 	 September 30, 1997 

• 	 Development of an Integrated Disbursement and lDformation System which will 

tequire grantees to report what they actually achieved during the year. The 

results of State and local acbicvemeDt$ will be published annually so that 

citizcas caD compare what their community has achieved compared to other 

communities. 

Tools appropriate to measure ccmsumc:r sarisfacrion with services provided by agencies 

that directly service the public (such as IRS, Immigration aDd Naturalization Service, the VA, 

and Social Security Administration) me DOt uetCSsalily the appropriate tools for agencies 

which do not work directly with the public. Given the fact that our state aDd local partners 

and the 15,000 subrecipients are the primary point of contact with the customers, it would be 

very difficult and not v~ meaningful for CPD to c:onduct a customer survey. There is DO 

mailing list of CPD ultimate cu.stomezs. Roughly six to eight million customers bc:ucfit from 

CPD pfograms every year, but they deallliDety pcrc:cut of the time with the actual providers 

of loc:aI services.. Consumer compWnts or requests for iDfODDation are generally the only 

direct customer contact with CPD. Complaints, for the most part, deal with the quality of 

local services aDd facilities proviJed. 

-


73 
--

Sepumber 30. 1997 S1nZCgic PlID 

PARTNERSHIPS 

HUD cannot assnme sole ~"ility for the general welfare and security of the 

Nation and the health and living staDdards Americaus require. The Depattment of Housing 

and Urban Development Act (42 USC 3631, et seq.) stated: 

•••• cs&ablisbment of an executive department is desirable to •.. assist 

the President in achieving maximum coordiDation of the various Federal 

activities which have a major effect upon urban community, suburban or 

meuopolitaD development; •••" ... 

To that end, HUD has worked with community leaders and public interest 

organizations throughout its history to achieve the maximmn benefits for the American 

people: . We will CODtiDue to do so and will partner with HHS,· Labor and other Federal 

agencies to achieve a better Dational community. . 

Discussed below are some examples of partnerships currently actM within the 

Department. 

Brownfields Initiative , 

As part of the President's Brownfields Initiative, HUD provides mcmies in competitive 

economic development grants to commUDities to redevelop contaminated BroWDfields after 

they are cleaned up. This inter-agency effort is coordinated with the Environmental 

PJotection Agency (EPA) and the Department of the Treasury. 

An impediment to economic development and jobs are the BrowDfields sites in the 

older industrial cities and small towns. The GAO estimates that there are some 130,000 to 

425,000 contaminated sites throughout the United States. Many of these sites have potential 

for economic development because of their strategic location, but because of fear of lawsuits 

because of contamination, owners are reluctant to devdop them. 

A partnership has been develoPed to address this problem. HUD and EPA are two 


critical components of this partnership. EPA will provide grants to communities for site 


assessment and redevelopment plaming and expanded support for revolving loans to finance 


Brownfields clean up efforts at the local level. HUD's primaty function is to focus on 


developing the sites to return them to productive uses that create jobs and to address the 


economic development needs of communities in and around these sites. In addition to the 


creation ofjobs, recycling the non-refonniDg contaminated property is essential to the 


revitalization of cities with large areas of contamination. 


u. S. Depanmeut of HousiDg aDd Urban DeYelopment 

74 
Slrltegic PlaD 	 September 30, 1997 

Housing Working Groyps 

.Housing believes strongly in partnering.. From 1993 through the present, there have 

been 33 working groups with hundreds of participantS. We are proud of the work that bas 

been done to date and have confidence that these groups will continue to contribute to the 

achievement of our objectiv~ 

Two Working GroUps should be especially noted: 

• 	 The GSE Advisory Working GroUP. which provides a fonun for discussion and 

information sharing on regulatory and parmership activities involving F~e 

Mae and Freddie Mac. 

.• 	 The Affordable LeDd;Dg WorkiDg Group, which discusses the perfonuance of 

affordable housing l~ iDcluctiDg a defiDition of affordable housing lending, 

whether or not there is and would be a risk issue ad how that risk may be 

managed effectively. .. 

In addition.· there are several Multifamily and Single Family WorkiDg Groups which 

encourage commumcation and provide Housing with a wealth of resources. 

Single Family Working Groups include: ' 

• . 	Title I Property Improvement Program Outreach Working Group. 

• 	 TItle I Manufactured Home Loan WoddDg Group 

• 	 20300 ParcbaselRebabion Program Outreach WorIdng Group 

• 	 Single Family Mortgage Insurance UnderwritiDg Ouucach Working Group 

• 	 Housing Counseling WorIdng Group 

Multifamily Working GroUps include: 

• 	 Audit WorIdng Group 

• 	 Subsidy Layering Guideline Working Group 

• 	 Budget-Based Section 8 WorIdng Group 

• 	 PrepaymentlPreservation WorIdng Group 

• 	 Asset Management Working Group 

• 	 Enforcement Working Group 

• 	 Mortgagee Working Group 

• 	 Bond ReflmdinglRefiDancing Group 

• 	 Tax Law to Preserve Low-Income Housing Working Group 

• 	 Section 2021111 WorIdng Group 

• 	 Fair Housing Working Group 

• 	 Cooperative Housing Working GroJJP 

• 	 MF Housing Consultant Fee Working Group 

U. S. DepanmcDt of Housing IDd Urban Development 

75 
strategic Plan 	 September 30. 1997 

• 	 Assessing Non-Profit Capacity Working Group 

• 	 TRACS Working Group 

• 	 Multifamily Small Propeny.lnsurance Working Group . 

FHEQ. Housing and Voluntary Compliance 

Section 809 of the Fair Housing Act requires the Secretary of HUD to "work out 

programs of voluntary compliance" with pc:rsoDS in the housing industry and others. HUD 

plans to accelerate its efforts to promote voluntary compliance by promoting "best practices" 

among housing lenders and volUDta1y agreements with housing industry groups. 

FREO and Other Partnerships 

HUD is also promoting the establishment of Datioual and local panncrsbips, which 

bring natural allies together to address housiDg issues of common concem. Partnerships 

develop strategies and adious that remove bmiers to fajr housing choices aDd opportunities. 

auo will expand partnerships with housing iDdustJy groups by executing aDd 

renewing formal partnerships with the housiDg industry or other groups designed to 

affinnativcly promote fair housiDg. , 

Public and Indian Housing 

Transformation of Public HousiDg is DOt limited to physical demolition and . 

reconstruction of uninhabitable public housiDg. It also helps build commUDities. PHAS are 

worldng in pannersbip with expcrieDced public and private sector developers to create 

pri-vately owned, economically iategrated developmCDtS. These clevclopmeDts include public 

housing by levCraging other resources, so that public housing benefits from market incentives 

for good maintenance and management. 

PIH and the Communities 

HUD has proposed authorizing legislation that would encourage Housing Authorities to 

partner with local welfare and employment ageDCics in order to &cilitate resident involvement 

in self-sufficiency programs. lbcsc include: 

• 	 A~orization of a Welfare to Work Certificates program that would grant 

tenant based _stance resources to Housing Authorities and welfare agency 

collaborativcs. This proposal would provide much needed additioDal assisted 

housing and coontiDated self-sufficiency services to families while generating 

and testing replicable models of best practices to HousiDg Authorities 

nationwide. 

u. S. Deplnmem ofHousiDc ad thbm Developmem 

76 
Strategic: Plan September 30. 1997 

• Encouraging PHAs to use best efforts to develop cooperative agreements with 

local welfare agencies. 

• Authorizing a new PHMAP indicator on PHA efforts to coordinate and 

prOmote resident involvement in self-sufficiency programs. 

CPD and the Communities 

A key strategy for CPD has been to reduce citizen alienation by strengthening citizen 

participation rcquircmc:nts in all of its programs. The plans for some 72 Empowetmcnt Zones 

and Enterprise Communities aDd the over 1000 Consolidated Plans for States, entitlement 

communities and consortia all over the United States were developed with strong citizell. 

participation. Field Offices evaluate each Consolidated Plan annually in tenns of the 

of-citizen participation. 

There are thousands of State and local governments and DOD-profits all over the United 

States which have entered into partnership to address the needs of homeless persons. Many of 

these partnerships are mctropo1i1an-wide or are coordinated at the State level. 

There are some 524 participating jurisdictions throughout the United States which are 

the primaly public partners for the HOME program: 346 metropolitan cities, 83 urban 

countieS, 95 consortia and 52 states including District of Columbia and the 

Commonwealth of Pueno Rico. In addition, Community Housing Development Organizations 

(CHDOs) and other non-profits are local partners under the HOME program. Less than four 

years after the first funding was made available under the program, there are more than 2,200 

.CHDOs. Participating jurisdictions have reserved between 22 and 24 percent of the HOME 

funds for CHDOs in recent fiscal years. 

There are over 1 O~OOO subrecipicnts receiving funds from the CDBG program which 

are partners in the community development process. Many of these provide housing 

rehabilitation. 

Technical assistance activities under the HOME and CDBG programs have been 

largely decentralized to the Field Offices as an instrument for improving the perfonnancc of 

our State, local and non-profit partners. 

u. S. Depaument of Housing and Urban Development 

77 
-

- -- - --

APrf!NIlIX , 


I.INKING STRATEGIC OD.fECTIVESfGENERAL GOAI.8 AND ODJEt'f.VES TO 


ANNUAL PERFORMANCE GOALS 


PERFORMANCE GOAL 	 FV FV FY PlcF 

96 97 98 

Ad Est Est 

STRATEGIC OnJECTlVE: flmpowcr communities to meet local needs. 

Maintain FY 1996 rercenlnge of nlnds used for housing activities, "s measured by the nulltber of 169,100. 169,100 CODa 

households ",slsted' 

Number of Orantees who Incorporate milestones with timetables In Consolidated Action plans that BBINO DBVELOrED COBa 

demonstrate progress In Improving locally denned conditions In their neighborhoods and 

communltles4 

Number of jurisdictions that have completed an An"Iysls of Impediments under their Consolidated NA NA See fn. CODO 

Plan.' 

, 

, 	 Estimate of expected activity; grantees determine actual use of funds 

Orants Management rrocess is performance-bosed and provides front-end and ongoing consultations, reviews, assessments, 

monitoring and technical assistance . 

S 	 FIIEO and ern are nssessing dota collection and reporting process required to s.tart demonstrating by 1998 progress 

jurisdictions nre mnking. 

4 
- --

rERFoRMANCE GOAL FY FY FY Pic' 

96 97 ' 91 

Ad Est Est 

8TRATEOIC ODJECTIVE: Help communities and states establish a full continuum of housing and services designed to assist 

homeless individuals and families in achieving permanent housing and self.sufficlenc),. 

us population represented by communities wblch have developed continuum or care systems. 10% 	 80% 85% I'omeleS! 

A~!llst.nce 

Onnts 

'ncrease the number or trRnsltional housing beds thRI Ire linked 10 supportive services. 109,000 109,000 115,000 1I0meless 

'to to Assistance 

115,000 125,000 Orants 

Increase the number or pennanent beds Ihat Ire linked to supportive serVices. 55.000 	 55,000 56,SOO I'omeless 

to to Assistance 

56.500 59,000 Orlnts 

The percent or participants 'eavlngllUD transitional houslna who move to pennanent houslnals 22% 30% 35% nomeless 

\ Assistance - %..\ Orants 

leverage It least S I ror every S1or nUD McKinney Act lIomeless funds awarded' I: 1 1:1 1:1 ' 	 IlomeleS! 

Assistance 

Orant. 

• 

Annual performance reports are cu~nt1)' being compiled. Data base will establish the bqsellne for these goals 

, Annual performance reports are currently being compiled. 

6 
.,..;RFORMANCE GOAL ,y ,y ,y Pic' 

97 91 

Ad" Est lb. 

STRATEOIC OBJECTIVE: Increase availability to affordable housing in standard condition. particularly the Nation's poor and 

disadvantaged. . . 

Inillally endorse _ multifamily loans. 395 39. 	 FHA: Oeneral 

" Special Risk Insurance 

Endorse _ Inilial or iniliallnnllUFA risk.s"arlnl mort,a,e •. 50 45 FHA: Oeneral I 

" Special Risk Insurance ! 

Complele Inllill clo.lnl of _ Sec.ion 202/811 projects. 272 350 	 FHA: Oeneral . 

" Special Rilk 'Insurance 

Comple.e final c'ofing __ Sec.hm 2021811 projects. 282 330 PH" Oeneral , " Special Risk Insurance 

Number of unlls produced by Ihls appropriation for new con.lnacllon. rehabiliialion. acquisition. and 81.412 77.200 HOMB Fund . number of families recelvlna lenanl·based rentalassl.lance.' 

Number of new homeowners asslsled by this approprialJon. • 21.37S 20.500 HOMB Fund 

Number of renlal unlll produced by Ihl. appropriation. II 33.48. 32.100 HOMB Fund 

lever.ge .S 1.50 in olher resources for each SI of HOME." I.S: 1 I.S: I HOMB Fund -- - - -- - -- --	 ------~ ----- - ---- ­

• 	 Units of hOllsing provided depends on local decisions of housing activity to fund. Benchmark is on estimate of expected 

future activity. 

9 	 Use of funds for homeownersl~ip depends on local decisions. Benchmark is an estimate 0'( expected future activity 

10 	 Use of funds lor rental housing depends on local decisions. Renclunark is an estimate of expected future activity 
PERFORMANCE GOAL ,y 

96 

Act 

FY 

91 

I •• 

FY 

98 

I •• 

Pic' 

Al leasl 90% of families asslsled for "enlal houslna musl be below 60% of median Income 90% 90% 90% HOME Fund 

Steadily In,rease the number of PIIAs rea,hinc their slated anti-druc objectives from 30 to 90 

per,';n. by FY 1999.11 

NA 3"'~ 6oe~ PIHlDNII 

Elimination 

Orant. (or 

Low Income 

Houllna 

Malnlain PUMAP Incremental s,ore: " of PHAI puslnc wi.h distinction: II of PIIAs passlnc: and II 

of PIlAs falllnl." 

NA NA NA Public 

Hou.fnl 

Operillnl 

Fund 

Improve averale PIIMAP score 10 ".5% by FY 2000"· 86.5% 87% 87.5% Public 

Houalnl 

, 

°lerltlna 

P d 

II 	 Leveraging derends on local decisions of housing activities to fund. Benchmark is an estimate of expected future activity 

12 	 FY 1996 grantee information, available in CY 1997, will rrovide baseline data for comparison with FY 1997 information, 

available 24 months later. 

IJ 	 I)IIMAP is undergoing revision. New baseline will be available in ~uly 1998, at which time the FY 99 goal will be 

established. 

,. 	 naselinc is 86% for FY 95. Ooal ror FY 99 is subject to revision as a result of proposed changes to PI1MAP which will 

occur in FY 98. Oaseline will be re-established when data is available. 
PERFORMANCE GOAL , ,y 

96' 

Ad 

'Y 

91 

Es. 

FY 

98 

Est 

Pic' 

Increase percenla,e of on-schedule IIOrR VI revllallza.lon projec's/aranls." NA U% 900~ PI" • 

Revitalization 

of Severely 

Dlslressed 

Public 

Uouslnl 

Approve 99,110 replacemenl unitl by rov 2000." 56,170 12,500 13,500 PIH· 

Revilallzatlon 

of Severely 

Dlslressed ' 

Public 

Houslnl 

Increase number of Nallve American fOlnilles .erved. 

• 

NA NA 900 Nal~ 

Ame cin 

Houslnl Block 

Orant. 

Neaollale an effecllve siraiesy for improvement whh each entlly idenUned for PIP and fulnll 

comntilmenls _% of neaolialed sirnlealcs compleled In lnilial year. 

- - --­

NA NA 75% Natlv. 

American 

"ouslna Block 

Oranls 

IS 	 Baseline is FY 97. Reporting system for this measure is currently under development and will be available in FY 98, 

enabling PUI to validate on-schedule performance for each year. 

16 	 Baseline is FY 96. Replacement units nrc funded through Section 8 and IIOPH VI programs. Estimation is 60,000 units 

with Section 8 and remaining 40,000 with "hard" units. . 
---------- - - ----- -- ---

0 

PERFORMANCE GOAL 	 ,y ,y ,y PA' 

96 91 98 

Ad E•• Est 

Approve 100,000 unlcs for demolilion by FY 2000!' '41,633 20,000 20,000 	 Pub. H.I. 

Capilli Fund 

Oemollsh 100,000 IInils by FV 200 I.II 22,42' 20,000 20,000 	 Pub. HSI. 

Capltll Fund 

(!nstlre percenl of new Seclion I admissions Is II very low Incmne levels NA NA 100% 	 PIH: Housing 

Ccrtlncalo 

Fund. 

\, 

17 FY 96 is baseline. Measure oxamines progress of demolitions approval process . .. FY 96 is baseline. Measure examines progress of actual demolition through completion 
--- --

PERFORMANCE GOAL 	 FY FY FY PA' 

96 97 98 

Act Est Est 

STRATEGIC ODJECTIVE: '-rovide empowerment and self-sufficiency opportunities to support low-income individuals and 

families as they make the transition from dependency to work. 

ESlablish _ Neighborhood Nelwork Cenlers. ,," 138 	 100 FHA: Ol/SRI 

•

Number of jobs crenled as a dlrecl result of use of EOI and Secllon 108." I7S.800 	 264,100 COOO 

Number of reclplenls who have Job tralnlna proarams and conlract award procedures Involving NA NA See fn. COOO 

Seclion 1 resldenls and buslnesscs.'1 

AI leasl 70% of funds arc used for activities which bcnefillow and moderate Income persons." 70% 	 92% Enl COOO 

98% 

States 

Increase the number of partnerships Ihal help residents achieve self-sufficiency In each E~EC 

fimpowenncnl Zone and Enlerprlse Communlly by Year 2000. --.~

It 	During FY 1996, plans were developed and approved for 18S Neighborhood Network Centers across the country. Of those 

18S. S6 were opened during the fiscal year. 

20 	 Jobs created from FY hudget authority. Benchmark is an estimate of expected activity; grantees determine actual usc of 

funds. 

21 	 FIlHO compiling data collected from 60002 reports, benchmark for '998 will bo determined aRer analysis of data. 

22 	 The forecast for I..MI benefiti is for states and entitlement communities. nenchmark is a~ estimate of expected activity;. 

grantees determine actual usc of funds. 
I·.~RFORMANCE GOAL FY FY FY p",

96 97 9.

Ad E •• E •• 

STRATEGIC OIUECTI VI!: Iteduce the isolation of low-income groul's within a community or geographical area. 

f:nslIre percenl or Secllnn • r","lIiel wilh children lIylnl in low poverty ccnsul Iracls Is 40% or NA NA 40% Pllt: Houslna 

more by 1998. I 

CertlRcate 

Fund 

f:~tablish a data cqllcclion syslem to Irack counsclee promos and Ihe levels or poverty In the areas NA NA NA FHEO - ROC _I 

!!~m which and let which participant!! mnve. - - - ­

\ ~ 

'\ 
------------ ----------------- ----------- ---- ------ - - -------------- -- - - ---

PERFORMANCE GOAL 	 ,y ,y ,y p", 9' 91 98 

Ad E.t E.t 

STRATEGIC ODJECTIVE: Increase homeownership opportuni.ties, especially in Central Cities, through a variety of tools, such 

as expanding access 10 morlgage credit. 

Increase the share of first-lime homcbuyer. in each IIUD Field Office by 1% per year over FY 69.3 70.3 71.3 FHA: 

1995. MMIICMHI 

Close snle uf 95% of single fnmlly Innperties on hand as of 1011198 less leased properties plus 95% NA NA 	 Sante FHA: 

of projected nCllliisitiullS fur IQ/l/9ft to 5131199. 	 numeric MMIICMUI 

loals for 

bolh 

years 

Close __.. single family properties In non-pronts. 3.403 3.400 2,300 	 FHA: 

MMIICMHI 

Increase 201(k) production 10 _ owner-occupied loans. 17.433 16.232 16,500 	 F",,: Special 

Risk 

Malnlain 95% rale of securitization for FHA and VA loans 95% 95% 	 95% ONMA 

Increase and maintain percenlale of multifamily monaaaes securitized by 10% over Iwo years.u 5% 5% 	 5% ONMA 

Increase revcnue from nlultl-class seclIrlty credit enhancement by 10%14 10% 10% 	 10% ONMA 

Increase lending In distressed communities by 10% by conducllllilralnina seminars for polentiftl NA 10% 10% ONMA 

ncw IsslIcrs.n 

U Baseline is foY 1995 dahl. which was 44%. 

14 naseline for FY 1996 is $19.':1 billion multi-class ($7.4 billion REMIC; $12.3 Platinum). '> 

U Roseline for FY 1997 is SI billion. 

I 

I 

I 
PERFORMANCE GOAL P'Y FY P'Y Pic' 

96 97 98 

Ad Ell Ell 

Increase number of homeownershlp approvals for Public Housina residents. NA 6,250 6,250 Public 

Iioulln& 

Capital Fund 

Increase units of Native American homeownership ftnanclngguaranteed. 410 470 Native 

American 

Homo Loan 

Guarantee 

Fund 

, \ 

..•. 
PERFORMANCE GOAL F'Y 

96 

Act 

With cooperation of IIUD-funded program offices, Implement outreach efforts with national or local 

minority And disabU,ity advocacy orgnnlzations re.ardln, IIUD-funded pro,ram. and information on 

local participation 

NA 

Evalua.e accomplishments of oraaillzatlons funded In FY 1991 under the FiliP to develop a best 

prac"ces document for addressln. racial tension. 

NA 

Sponsor andlor c~sponsor fair housing conferences, research Iymposla or administrative meetings on 

racial .ension 

NA 

Partner with mort.ase banker., housing Industry aroups and olher State and local law enforcement 

an,d civil rlShiS based organizations 10 develop ......e'la and short and lon.lerm procedures 10 

effecllvely address Incldenls of racial lenllonl at the earliest point posllble 10 reduce/prcvent racl.1 

tensions., 

NA 

Oy the end of FY 1999, Identify at least 10 effective bal pncllces'Intc,la for different .ypes of 

10caUUes 10 reduce racial tension, based on FHIP products, lurvey', relourcel from organlzallons, 

and Inpul from civil ri,hls leaders and law enforcement aaencles. Look particularlY' for Itritegles 

which encourlse local community Involvement and leadership In addres.'na rac••1tensions. 

NA 

Reduce the Incidence of seare,.tlon based on nce and nationae origin In public and federally 

assisted houslna by S% over nve years, In soe~ of selected localities where se,regaUon based on 

race or nallonal orl,'n has been IdentlOed •• a barrier, 

NA 

In 10 lelected cities, Identify public hou.ln" HUD-II.I.lcd and CDDa proaram. with polentlal 

civil rlahts concerns. Determine Ihe exlent to which Section acertlflcatclvoucher holders contribute 

NA 

to metro-wid. scgreaaUon in Ihose clUe. and conduct tar,eled reviews of compll.ncewlth civil 

riCh.1 a"thod.let In Ihose pro,ra.nl. 

Wllhln the selected localities, and based on lhe Secllon I certlflcate voucher analysll, Idenllfy al 

Icut S m.lro areas and work wilh Ihem to develop. plan by the end of year 1, io reduce racial 

scareaalion throu,h voluntary Itratesl.s 

NA 

Devclop and carry oul Itrl'e,lel to achieve commitments from houslnl Induslry ,roups, State Ind 

local &ovCmmenls and olher Feder.1 aaencl,cs to Increa.e accesslbl1lly and visliability for people 

with dilablllties 

NA 

~~ 

FY 

97 

Es. 

IS 

NA 

2 

S 

NA 

NA 

NA 

NA 

NA 

" 

'Y 

98 

E •• 

20 

Pic' 

FHBO 

NA 

, 

S 

FHIP 

FIIBO 

FHEO 

NA FHBO 

\ 

NA FHEO 

NA FHEO 

NA 'FHEO 

NA FHEO 
ItERFORMANCE GOAL FY 

96 

Ad 

STRATEGIC OBJECTIVE: Promote equal housing opportunities for those protected by law. 

Over five years. Implement lirateaiel in lelected localiliel to increale the number of lenders and 

inlurerl dolna bUllnesl in their core urban areal or ueas ~f hlah minority or ethnic 

concenlratlon.2• . 

Reduce tbe Incidence or lear'aaUon bued on race and nallonal orialn In public and Federally 

ullsled holtsina by 5 percenl by the end of flve years, In 50% of lelecled localities where 

searelatlon based on race or national orlaln has been Identined as a barrier. 

Over nve yelV•• mcasure tile levels of dilcrlmlnatlon aaalnit protecled classel, ullnl FIUP and 20 

Office of Policy Development and Research fundinlto carry outmatched' pair testlnl of rental and 

saici Iranlacllonl. 

Over five years, concludo model putnershlp. with .elected wlsted houllnl providers. 'HAs, 

cono Iran'eel, homebuilders and Inlerest lroups that demonstrate succes.ful mealures to reduce 

discriminatory practices. . 

Within I yeu. develop and secure DOJ and While lIoulO .pproval for I mechanism 10 resolve fair 

housing complaints flied with IIUD ~lIellnl discrimination by Federal Departmenls and agencies 

(Includina HUD), 

Within 5 years, nelotlate and Illn Interdeputmenlll larcements 10 resolve fair houslna complainls 

alalnlt recipients of rundlna rrom the Voteranl Administration, Dcputmont of Alrlculturo (Rural 

Development Sorvlce.) and other Departmentl and aaenelel who provide or aullt houslna or 

provide houllna related .ervicel, . Reduce .elrolliion by at least 5% In each IIUD-Rlnded project oyor nve yearl 

Increase number of Tille VI and Section 504 compliance reviewl by S per yeu over flye years 

Increue the number of VeAs executed und~ Title VI and Section 504 by 5 per year oyer the next 

five yearl 

l' Baseline will be FY 1997 data, developed in FY 1998 

FY FY PAF 

97 98 

Esl Esl 

. FHEO 

FIIEO 

20 20 FHEO 

FHEO 

'& 

FnBO 

FHEO 

FlmO 

FHEO 

FIIEO 

". 
rERFORMANCE GOAL FY I'V P"I'

96 97 

"

9. 

Ad Est Es. 

'ncrease the number of federally-assisted newly constructed, allered or subsidized units In each NA NA Seo fn. FHEO 

seleCled community usable by persons wllh disabilities In Intearated .ellinss ofTsel by units losl 

through desianaUon of public IfId asslsled houslna for tho .'der'y}' 

8y end of FY 1999, develop/modifY IIUD data systems to capture number of new and existin8 NA NA NA FHEO 

accessible or visitable u"i's 

Oy the end of year one, identify unserved and underserved constltuenciel Ihrou8h lurveys of civil FHEO 

riahts oraanlzatlons, complain. data, and olher resources and selec. at least two for further focus. 

\ 

11 I1nselinc dnta will he fhrllled rrom FY 1997 dnta. available in FY 1998. 
-
--
---- ----

MANAOEMENT REFORM 

Modemi7.e and inlegrale 

IIUO's ouldaled Onanclal 

managemellt syslems wilh an 

ernelen.. 51 ale-or-the-.rt 

syslem. 

Create In Enforcement 

Authority with one objective: 

to restore puhlic Intsl. 

Refocus and retrain IIUO'. 

workforce 10 carry out our 

revilallzed misllon. 

MANAGEMENT REFORM GOALS (FY 1'9') 

ORNRRAL. MANAOEMRNT oomCTIVE 	 PERFORMANCE OOAL 

fillancial Systems Inlearllion 	 Conduct lSSessment of current nnlnclal Iystems and 

requlrementl; dellgn and Inltall an Intearlted nnanclal 

management and Information Iystem, Includlna Ihe ,raphlc 

display capabilities of the Communities 2020 Mapplna System. 

Financial System. Review 	 Develop and Implement a plan for the review, repair. or 

replacement of 19 Rnanclal manaaement IYllems In the HUD 

Inventoryi enlure that an Iylteml conform with requlremenlJ of 

the Financial Manaacn Plnanclal Integrlly Act and OMB 

Circular A-111. 

Financial Manaaement Integrity 	 Plan and implement a new manaaemenl Iystem for Internal 

control., includlna front-end risk assessments and relularly 

Icheduled Intemal control reviewi. 

\ . 

.. I 

Clarify Ita« functlonl by creatlnltwo new 	 Communlly Resource RepresentaUves, responsible for helplna 

posltlonl 	 customers aaln acecas to the whole rIRie of HUD servlcel and 

coordinatlna with HUD proaram ItafT in hubs, prolram centerl, 

and Field Omces perfonnlna "back office" processina ftanctionl. 

Public TRlst Omcers, responlible for enlurlng that federal funds 

are Uled appropriately Ind that HUD customcn comply with the 

law. ! 

i 

Develop and Implement action plan for trainIns 

and redeployment or outplacement of Itarr to 

reduce IIUD workforce from 10,SOO to 7,SOO hx 

FY 1000. 

'\ 
MANAnI:MI~N'" IUWORM 

Reorganize by function ralhcr 

Ihan program "cylinders.II 

Where needed, consolldilte 

and/or privatize. 

MANAGEMENT REFORM GOALS CIi'V 1998) 

(mNp.RAL MANAOEMENT OBJECTIVII PF.RFORMANCB OOAL 

Create two Departmental centers Real Eslate Assessment Cenler 

Secllon 8 Financial Management Center 

Crente consolldaled centers Single Family Ifomeownershlp Center 

Multifamily Development Centen (11) 

PIH Troubled Agency Recovery Centers (2) 

Pili Special Applications Center 

Pili Orants Center 

CPD Bconomlc Developmenl and Empowerment Serylce

-, 

CFO Accounllng Center 

Itcdeslgn HUn procurement and contractlna 

f"nctlons to ensure accountability while 

responding nexibly to changing program needs. 

Privatize certain proarammatlc functions Physical Inspections for Pili and FHA portfolios. 

Financial audits of rllAs, muilifamlly properties. and PIH, CPO, 

and FIIEO arimlees - - - - -- -----~ -­ _.. _------­ --~ 

... 
-- --

MANAOI:MHNT IUWORM 

Replace IIUO's top·down 

bureaucracy wllh a new 

customcr-frlendly structure. 

MANAGEMENT REFORM GOALS (FY 1998) 

GeNERAL MANAOEMENT OBJECTIVe PERFORMANCE OOAL 

'I i:slabllsh new field .IRlctur. conslslln8 or Area 

Offices with representaUves of all four major 

prolram areas and Are. Resource Cenlers 

(ARC.). IIOD', nell"borhood "store-front" 

service centers. 

Institute new Manalcment rlan proc:ess which 

integrates prolram and customer service delivery 

systems. 

\ 
·.... 

. .