HUD's FY99 Budget
Congressional Justifications
Policy Development and Research

Administrative Expenses

Budget Activity 5: Policy Development and Research SCOPE OF ACTIVITY Personnel of the Office of Policy Development and Research (PD&R) are responsible for the management of research and technology studies conducted under contracts, cooperative agreements and grants, as well as in-house research, economic analyses, tax policy analysis, and program evaluation and program monitoring, and policy development. Staff has the analytical skills and experience to address many of the key issues in HUD's Management Reform Plan such as assisting in the development of performance measures; targeting of the funds to assure attention to low-income families and vulnerable populations; assuring that questions of consistency of approach across program lines are addressed; and that a myriad of issues related to the transition from the present organization to the new structure of HUD are carefully considered. There are many PD&R functions which would not fundamentally change under the Reform Plan, because they are rather independent of the Department's structure. Continued short range research on basic housing and urban issues to allow the Secretary to be a national spokesperson on these matters is one example. Longer range research, including housing technology, the results of which will be available to future administrations, is another. The economic intelligence function, including the American Housing survey and related publications such as the Quarterly Housing Market Conditions report, would also continue. Likewise, setting Fair Market Rents (FMR) and income limits, and assisting on HUDwide, cross-cutting special initiatives, such as the Homeownership Partnership, would be ongoing functions of the Office. The proposed changes in FHA will place increased responsibilities on PD&R to provide technical support to FHA and oversight for the Secretary. New ways of doing business required careful upfront study, prompt and thorough evaluations. Actuarial studies, program design, and assessments of who FHA serves are areas where FHA and the Secretary are likely to need assistance. PD&R already has this capacity and has used it on several occasions. PD&R�s analytical approach makes its advice particularly useful to FHA and the Secretary. Staff will continue to provide support to the Secretary for certain Government Sponsored Enterprises (GSEs) activities including: (1) consideration of new program requests; (2) monitoring of GSE performance under geographical and income-based housing goals; (3) research support for establishment of ongoing GSE housing goals; (4) administration of fair housing requirements; and (5) writing annual reports to Congress. Staff will also administer grant programs of the Office of University Partnerships within the immediate Office of the Assistant Secretary, and will have responsibility for overseeing the new Partnership for Advancing Technology in Housing (PATH) initiative. WORKLOAD The workload of PD&R focuses on ways to improve the efficiency, effectiveness, and equity of HUD programs. This entails developing policy recommendations for the Secretary, performing policy and economic analyses, directing research and demonstration activities, and evaluating and monitoring new and existing programs for the Department. The workload also includes supporting the Secretary in carrying out his responsibilities for Fannie Mae and Freddie Mac regulation and preparing the annual reports to Congress. In carrying out its responsibilities, PD&R conducts analyses using either contract or in-house staff resources, depending on the issue and the nature of the work. PD&R also works with other HUD staff, State and local governments, academicians, representatives of various interest groups, and other interested parties, to assure that all accessible knowledge is brought to bear on issues of concern to the Department.

TRAVEL

For 1999, there is no change to the 1998 current estimate of $92 thousand. CONTRACTS The following table identifies the specific contracts unique to this activity and is followed by a brief description.

Data and Statistical Services This activity provides the Department with information for setting Fair Market Rents and current data on the housing inventory and vacancies in selected housing market areas (both metropolitan and non-metropolitan cities) where HUD housing and community development programs are utilized. An amount of $2,275 thousand is requested to complete the Assisted Housing Quality Control (QC) study partially funded in fiscal year 1998. The QC process involves drawing a nationally representative sample of all Public Housing and Section 8 units. On-site tenant interviews and file reviews are then conducted. These data are used to determine actual tenant incomes and their contribution to rent. The QC income and rent contribution determinations are then compared with the program sponsor figures and the results used to produce national estimates of the type, severity, and cost of errors. After these findings are communicated to HUD, the Department selects the errors of most concern and designs and implements corrective actions. A subsequent QC study then starts another cycle of error estimation and corrective actions. For 1999, there is no change to the 1998 current estimate of $5,200 thousand.