Budget Activity 2: Public and Indian Housing

SCOPE OF ACTIVITY

The Public and Indian Housing (PIH) staff is responsible for performing functions in accordance with legislation which authorizes the Department to enter into contracts to provide assistance for the development and operation of public and Indian housing, and to provide rental assistance payments on behalf of lower-income households. The principal legislative authorization for PIH activities is the U.S. Housing Act of 1937, as amended.

Headquarters staff perform the following principal functions in support of PIH goals:

• develops program policies, procedures and guidelines for all PIH programs (PH Capital Fund, Housing Certificate Fund, PH Operating Fund, Revitalization of Severely Distressed PH (HOPE VI), PH Drug Elimination Grants, Native American Housing Block Grants, Indian Home Loan Guarantees) including priorities for improving Public and Indian Housing through initiatives for crime reduction, economic development, homeownership, resident opportunities and supportive services, and moving to work;

• directs and coordinates the administration of all PIH programs and provides training and technical assistance and procedural guidance to the HUD Field staff, Public Housing Authorities (PHAs), Indian Housing Authorities (IHAs), and resident groups, as appropriate;

• monitors, reviews and evaluates Field program operations and reviews administrative practices of local agencies, including PHAs, IHAs, and resident groups to ensure that programs are managed efficiently and that services and assistance are provided as intended;

• provides financial assistance for use by local agencies as well as program, administrative, management, statistical and budget support; and

• manages and controls program and administrative resources.

In 1998, the PIH Headquarters organization continued to evolve consistent with the HUD 2020 Management Reform. The Office of Assisted Housing Operations, and the Office of Community Relations and Involvement were consolidated into a single office, namely the Office of Public and Assisted Housing Delivery (PAHD). The consolidation and streamlining yielded four divisions: Funding and Financial Management, Real Estate and Housing Performance, Community Safety and Conservation, and Customer Services and Amenities. The PAHD Office is responsible for developing national program funding, policy direction and regulatory guidance for public housing and tenant-based assisted housing.

In another Headquarters Management Reform initiative, the Office of Management and Policy has been renamed as the Office of Administration, Finance, Budget/CFO. When the reorganization is completed in early fiscal year 1999, the new office will consist of the following divisions: Section 8 Finance, Administrative Services, Information Services/Systems, Accounting, Budget, and Audits, Evaluations and Risk Management.

Early in fiscal year 1998 in conjunction with the recruitment to fill the vacancy, the Deputy Assistant Secretary (DAS) for the Office of Native American Programs (ONAP) was repositioned in Headquarters from the former location in Denver. This move was considered necessary in order to be responsive to frequent face-to-face policy discussions with the PIH Assistant Secretary, the Secretary, and members of Congress. ONAP and operations staff remain in Denver to accomplish the following:

• provide responsive access to the daily needs of Native Americans who are predominately concentrated west of the Mississippi River;

• centralize programmatic functions; and

• become more oriented to a "community-first" approach designed to empower local decision-makers to plan and carry out local housing and community infrastructure activities.

During 1998, PIH field staffing was redistributed with increases in 27 program Hubs, and corresponding decreases in 16 program centers. Two PIH Troubled Agency Recovery Centers, a Special Applications Center, a Public Housing Grants Management Center, and a Section 8 Financial Management Center were established. The consolidated functions will provide specialized expertise as follows:

Troubled Agency Recovery Centers (TARCS). Under the direction of the DAS for the Office of Troubled Agency Recovery, the TARCS will develop and implement intervention strategies for "troubled" Housing Authorities (HAs) with 250 or more units in order to achieve a passing score within 1 year of designation. Smaller HAs so designated, will be assigned to the TARC staff in Hub field offices. At the end of 1 year, responsibility for the HA, regardless of its size, will either be returned to the field office or placed into judicial or administrative receivership. The two TARCs are located in Cleveland and Memphis.

Grants Management Center. Under the direction of the General Deputy Assistant Secretary, this center will perform review, selection, and fund allocation requirements for public housing competitive grant programs, e.g., PH Drug Elimination Grants program, Public Housing Capital program, etc. In addition, the Center will handle the fund allocation requirements for the PH Operating Fund. The Grants Management Center is located in Washington, D.C.

Section 8 Financial Management Center. Under the direction of the DAS for Administration, Finance and Budget/Chief Financial Officer, this Center will be responsible for the integrated financial management of all tenant-based Section 8 programs across the nation. The Section 8 Financial Management Center is located in Kansas City.

Special Applications Center. Under the direction of the DAS for Public Housing Investment, the Special Applications Center will review and process all documents related to demolition/disposition applications, mixed-income financing applications, designated housing allocation plans, and 5(h) homeownership applications. These activities are funded by the Revitalization of Severely Distressed PH program (HOPE VI), and the PH Capital Fund. The Special Applications Center is located in Chicago.

Full implementation of these Centers is expected in fiscal year 1999.

FIELD EMPLOYMENT

Previous realignment of the field offices gave Headquarters direct line supervision over the Field Office activities. To meet the needs of the Department under the HUD 2020 Management Reform, the majority of field office employees have been reclassified from specialists to generalists.

As previously stated, field offices were consolidated into 27 Hubs and 16 Program Center Offices to serve approximately 3,400 PHAs. The objective of the Hubs and Program Centers is to ensure the effective and efficient delivery of HUD programs to HAs whose performance has declined through the provision of focused technical assistance, program expertise, and where necessary, targeted intervention.

TRAVEL

The table below identifies travel requirements unique to the PIH Organization (excluding funding from program appropriations). Travel associated with specific appropriations is identified in those justifications.

a/ 30 percent-45 percent of travel supports 2020 Management.
b/ Includes ONAP Field travel.

CONTRACTS

In fiscal year 1998, 12 percent of the funding for technical services contracts supported the 2020 Management Reform. However, with the expectation that the specialized PIH centers will be fully operational in fiscal year 1999, this is expected to increase to at least 50 percent. The following table identifies contract activity and is followed by a brief synopsis of the types of contracts for which funds are requested.

The Office of Public and Indian Housing has developed requirements for contracting activities of the following nature with funds under this budget activity.

Management Studies/Technical Services. The contract funding for Management Studies/Technical Services will continue to focus on the following areas: grants management, tenant income matching, the Indian Loan Guarantee program, management controls, and an interagency agreement with the Immigration and Naturalization Service (INS) for verification inquiry services to housing authorities regarding non-citizen immigration status.