FY 1999 Annual Performance PlanStrategic Objective 4
Reduce the Isolation of Low-Income Groups within a Community or Geographical Area
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.
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
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'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
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.
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.
|Content Archived: November 29, 2011|