FY 1999 Annual Performance Plan

Reduce the Isolation of Low-Income Groups within a Community or Geographical Area

Introduction

Another facet of the agency's commitment to broader housing affordability is working to create housing opportunities in neighborhoods close to jobs and good schools. Spatial deconcentration is accomplished through the use of tenant-based rental certificates and vouchers, and the revitalization of deteriorated neighborhoods, including distressed public housing developments, creates such opportunities in locations where they did not previously exist.

To ensure housing opportunities are available, without discrimination, the Department conducts periodic compliance and complaint investigations of recipients receiving Federal financial assistance. When violations of the Fair Housing Law are revealed, the Department enters into voluntary compliance agreements with such recipients until a remedy has been achieved.

The Department is working to recruit a more diverse group of private landlords to participate in the Section 8 housing program and to administer the program so that it is seen as a positive addition to neighborhoods.

Strategies

Public and Indian Housing

HUD is replacing the worst public housing with less dense, economically integrated communities. This is the basic strategy behind the HOPE VI program. In addition, mixed finance development mechanisms create mixed income communities. 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 organizations to form mixed-income communities.

Providing additional replacement housing resources through portable Section 8 vouchers 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.

Section 8 tenant-based assistance program is increasing private owner participation and portability throughout the metropolitan area. The proposed merger of the certificate and voucher programs will make it easier for HUD, PHAs, and private owners to administer.

In keeping with the transformation of public housing and a reinvented HUD, partnerships are formed with residents, housing professionals, local governments, for-profit and not-for-profit organizations to form mixed-income communities.

Housing

Housing's new Multifamily mixed income program underwriting procedures are only applicable where FHA credit enhancement is combined with PIH HOPE VI funds to finance a mixed income community on an old public housing site (see PIH section above).

Single Family counseling grants go to providers of comprehensive counseling services. Cooperative agreements under the counseling program permit non­profits to sponsor homebuying and homeownership classes. These classes educate first time buyers in the opportunities and responsibilities of homeownership and allow underserved populations a greater opportunity to purchase where they wish.

Community Planning and Development

The HOME Program is providing opportunities for both renters and owners in a variety of locations through tenant based rental assistance, assistance to new homebuyers, and location of projects. Seventy eight percent of HOME units are located in census tracts with poverty rates of less than 40%. New homebuyers receiving assistance are located in tracts with poverty rates under 20%, as are new construction rental projects.

Many cities have gone through an important renaissance and urban revitalization, assisted through CPD programs. This should have the secondary impact of making the city a more attractive place for persons of all incomes and reducing income concentration.

Linkage to HUD 2020: Management Reform Plan

A key element to improving Section 8 processing is the creation of a Section 8 Financial Processing Center for both Housing and PIH. Currently, Housing and PIH have two very distinct methods for processing payments: Housing uses a monthly voucher system based on actual subsidy needs; and PIH uses an annual budget projection, with adjustments made upon receipt of year-end statements. Unifying these processes will benefit both business lines. Functions will include budgeting, payment scheduling, contract reservations and revisions, financial statement revisions, rent calculations and income verification.

PIH will also consolidate special (non-funded) applications and processes for its unique programs in a single Special Applications Center. Those applications are: demolition/disposition, designated housing, and 5(h) homeownership. Consolidating these discrete functions will maximize staff effectiveness and increase program accountability. Consolidation will also eliminate current duplication of efforts in the field. The center will standardize application processing and use staff specifically trained for evaluating and processing these applications.

External Factors

The revitalization of neighborhoods is discussed in detail under Strategic Objective 1. Community revitalization, 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 part because of factors, such as high taxes, high rates of crime, poor schools, and density, many people do not wish to live in central cities. These factors, over which HUD has little control, 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 communities 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 neighborhoods. However, many prefer to remain at, in or near Central Cities. It is important to note that the final choice remains with the individual.

Annual Performance Goals

Defining annual performance goals for this objective is particularly difficult. We can utilize census data to measure the percent of Section 8 families (with children) who are living in low poverty census tracts. However, as discussed under External Factors, the choice remains with the individual. Outputs define our level of commitment, but not achievement. Measures of our success include the number of low-income and minority families participating in the Departmental Regional Opportunity Counseling Program. As HUD's strategic planning process evolves, we will continue to address this issue.

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