Transportation, Housing and Urban Development, and Related Agencies Appropriations for 2023, Part 3
Summary
Part 3 of the House Appropriations hearings on Transportation, Housing and Urban Development appropriations for 2023: HUD's fiscal year 2023 budget justifications, printed for the subcommittee chaired by David E. Price of North Carolina. They open with tables of budget authority, outlays and staffing, then cross-cutting initiatives including rental assistance, a climate initiative and a Housing Supply Fund. In millions of dollars, Section 8 contract renewals are $22,385 for 2021, $23,080 under the 2022 annualized CR and $26,234 requested for 2023. Total Tenant-Based Rental Assistance rises from 25,777 to a 32,130 request, with American Rescue Plan contract renewals of [4,177] shown in brackets.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Transportation, Housing and Urban Development, and Related Agencies Appropriations for 2023, Part 3.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/house-hearing-117th-congress-departments-of-transportation-and-housing-f72dff9619/
, SHA-256 61ca663d9f02eafa2657fb44785f3763662d70eb1f736eefa8d23b36dd7624e4.Full text
DEPARTMENTS OF TRANSPORTATION, AND
HOUSING AND URBAN DEVELOPMENT, AND
RELATED AGENCIES APPROPRIATIONS FOR 2023
HEARINGS
BEFORE A
SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
SUBCOMMITTEE ON THE DEPARTMENTS OF TRANSPORTATION, AND
HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES
DAVID E. PRICE, North Carolina, Chairman
MIKE QUIGLEY, Illinois MARIO DIAZ-BALART, Florida
KATHERINE M. CLARK, Massachusetts STEVE WOMACK, Arkansas
BONNIE WATSON COLEMAN, New Jersey JOHN H. RUTHERFORD, Florida
NORMA J. TORRES, California MIKE GARCIA, California
PETE AGUILAR, California ASHLEY HINSON, Iowa
ADRIANO ESPAILLAT, New York TONY GONZALES, Texas
JENNIFER WEXTON, Virginia
DAVID J. TRONE, Maryland
NOTE: Under committee rules, Ms. DeLauro, as chair of the full committee, and Ms. Granger, as ranking
minority member of the full committee, are authorized to sit as members of all subcommittees.
CHRISTINA MONROE, WINNIE CHANG, JOSEPHINE ECKERT, and XAVIER ARRIAGA
Subcommittee Staff
PART 3
FISCAL YEAR 2023 BUDGET JUSTIFICATIONS
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
(
Printed for the use of the Committee on Appropriations
U.S. GOVERNMENT PUBLISHING OFFICE
47–463 WASHINGTON : 2022
ctelli on DSK11ZRN23PROD with HEARING
VerDate Sep 11 2014 23:54 May 04, 2022 Jkt 047463 PO 00000 Frm 00003 Fmt 7513 Sfmt 7513 E:\HR\OC\47463P1.XXX 47463P1
COMMITTEE ON APPROPRIATIONS
ROSA L. DELAURO, Connecticut, Chair
MARCY KAPTUR, Ohio KAY GRANGER, Texas
DAVID E. PRICE, North Carolina HAROLD ROGERS, Kentucky
LUCILLE ROYBAL-ALLARD, California ROBERT B. ADERHOLT, Alabama
SANFORD D. BISHOP, JR., Georgia MICHAEL K. SIMPSON, Idaho
BARBARA LEE, California JOHN R. CARTER, Texas
BETTY MCCOLLUM, Minnesota KEN CALVERT, California
TIM RYAN, Ohio TOM COLE, Oklahoma
C. A. DUTCH RUPPERSBERGER, Maryland MARIO DIAZ-BALART, Florida
DEBBIE WASSERMAN SCHULTZ, Florida STEVE WOMACK, Arkansas
HENRY CUELLAR, Texas CHUCK FLEISCHMANN, Tennessee
CHELLIE PINGREE, Maine JAIME HERRERA BEUTLER, Washington
MIKE QUIGLEY, Illinois DAVID P. JOYCE, Ohio
DEREK KILMER, Washington ANDY HARRIS, Maryland
MATT CARTWRIGHT, Pennsylvania MARK E. AMODEI, Nevada
GRACE MENG, New York CHRIS STEWART, Utah
MARK POCAN, Wisconsin STEVEN M. PALAZZO, Mississippi
KATHERINE M. CLARK, Massachusetts DAVID G. VALADAO, California
PETE AGUILAR, California DAN NEWHOUSE, Washington
LOIS FRANKEL, Florida JOHN R. MOOLENAAR, Michigan
CHERI BUSTOS, Illinois JOHN H. RUTHERFORD, Florida
BONNIE WATSON COLEMAN, New Jersey BEN CLINE, Virginia
BRENDA L. LAWRENCE, Michigan GUY RESCHENTHALER, Pennsylvania
NORMA J. TORRES, California MIKE GARCIA, California
CHARLIE CRIST, Florida ASHLEY HINSON, Iowa
ANN KIRKPATRICK, Arizona TONY GONZALES, Texas
ED CASE, Hawaii
ADRIANO ESPAILLAT, New York
JOSH HARDER, California
JENNIFER WEXTON, Virginia
DAVID J. TRONE, Maryland
LAUREN UNDERWOOD, Illinois
SUSIE LEE, Nevada
ROBIN JULIANO, Clerk and Staff Director
(II)
D with HEARING
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
2023 CONGRESSIONAL JUSTIFICATIONS
TABLE OF CONTENTS
~
Introduction ..................................................................................................................... .
Budget Authority .............................................................................................................. 1
Budget Outlays................................................................................................................. 1
FTE Staff Summary......................................................................................................... 1
CROSS-CUTTING INITIATIVES
Overview of Rental Assistance Programs .....................H•·································.. ·····•······ 2
Climate Initiative ............................................................................................................. 3
Housing Supply Fund ....................................................................................................... 4
Community Development Block Grant -Disaster Recovery Authorization. ................ 5
PUBLIC AND INDIAN HOUSING
Tenant-Based Rental Assistance ..................................................................................... 6
Public Housing Fund ................................. ,..................................................................... 7
Housing Certificate Fund ...................... ,.................... ,..................................................... 8
Choice Neighborhoods .............................. ,., ..................................................... ,............... 9
Self.Sufficieucy Programs ................................................. ,.............................................. 10
Native American Programs ....................................................................... '"····"""'""'"''' 11
Indian Housing Loan Guarantee Fund (Section 184) .................................................... 12
Native Hawaiian Housing Block Grant .......................................................................... 13
Native Hawaiian Loan Guarantee Fund (Section 184A) ............................................... 14
COMMUNITY PLANNING AND DEVELOPMENT
Housing Opportunities for Persons with AIDS (HOPWA) ............................................. 15
Community Development Fund ..................................................................................... 16
Community Development Loan Guarantee .................................................................... 17
HOME Iuvestment Partnerships Program ..................................................................... 18
Self-Help Homeownership Opportunity Program (SHOP) ............................................ 19
Homeless Assistance Grants ............................................................................................ 20
Housing Trust Fund ......................................................................................................... 21
HOUSING
Project-Based Rental Assistance ..................................................................................... 22
Green and Resilient Retrofit Program ............................................................................ 23
Housing fur the Elderly (Section 202) ............................................................................. 24
Housing for Persons with Disabilities (Section 811) ...................................................... 25
Housing Counseling A,,sistance ....................................................................................... 26
Manufactured Housing Fees Trust Fund ........................................................................ 27
Mortgage and Loan Insurance Program (FHA Fund).................................................... 28
(1)
GAD 47-463 05/03/2022
2
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
2023 CONGRESSIONAL JUSTIFICATIONS
TABLE OF CONTENTS
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
Mortgage-Backed Securities Program ............................................................................. 29
Ginnie Mae Salaries and Expenses................................................................................. 30
POLICY DEVELOPMENT AND RESEARCH
Research and Technology ................................................................................................. 31
FAIR HOUSING AND EQUAL OPPORTUNITY
Fair Housing Activities .................................................................................................... 32
LEAD HAZARD CONTROL AND HEALTHY HOMES
Lead Hazard Reduction .................................................................................................... 33
MANAGEMENT AND ADMINISTRATION
Salaries and Expenses Overview..................................................................................... 34
Executive Offices............................................................................................................... 35
ADMINISTRATIVE SUPPORT OFFICES OVERVIEW ............................................... 36
Chief Financial Officer ................................................................................................... 37
General Counsel ............................................................................................................. 38
Administration ............................................................................................................... 39
Field Policy and Management ....................................................................................... 40
Equal Employment and Equity Advancement ............................................................. 41
Chief Information Officer.............................................................................................. 42
PROGRAM OFFICE SALARIES AND EXPENSES (POSE) OVERVIEW ................... 43
Public and Indian Housing ............................................................................................ 44
Community Planning and Development ....................................................................... 45
Housing ........................................................................................................................... 46
Policy Development and Research ................................................................................ 4 7
Fair Housing and Equal Opportunity ........................................................................... 48
Lead Hazard Control and Healthy Homes ................................................................... 49
INFOR1\-1ATION TECHNOLOGY FUND ............................................................................ 50
WORKING CAPITAL FU:t-.-0 ................................................................................................ 51
INSPECTOR GENERAL....................................................................................................... 52
EXPLANATION OF GENERAL PROVISIONS .................................................................. 53
2
GAD 47-463 05/03/2022
3
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CONGRESSIONAL JUSTIFICATIONS
INTRODUCTION
The following table summarizes the Department's funding and staffing requests for fiscal years
2021 through 2023:
BUDGET AYTHQRITY
Discretionary (Gross) 60,345 65,357 71,904
Offsetting Receipts (16,1242 {13,097} (11,106)
Discretionary (Net) 44,221 52,260 60,798
Mandatory (Net) 25,159 8,872 16,995
Total Budget Authority 69,380 61,132 77,793
B!.!DGET Q!.!ILAll
Discretionary 45,404 57,470 64,609
Mandatory {10,3232 {24,042) 1,148
Total Budget Outlays 35,081 33,428 65,757
F!,!LL-TIME EQUIVALENTS
FTE Staff 7,822 8,083 8,861
(includes S&E, OIG, GNMA)
NOTES:
Detail may not add to totals due to rounding. The first part begins with a set of summary
tables outlining the Department's budget authority, outlays, and staffing levels. The tabular
material is followed by discussions of the Department's programs.
Throughout the Justifications, all references to years refer to fiscal years (beginning October 1
and ending September 30) unless otherwise noted.
1-1
GAD 47-463 05/03/2022
4
BUDGET AUTHORITY BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
~ ANNUALIZED CR REQUEST
DISCRETIONARY PROGRAMS
PUBLIC AND INDIAN HOUSING
Tonant-Bnsed Rental Assistance (TBRA)
Section 8 Contract Renewals ......... , ............................................. . $22,385 $23,080 $26,234
Administrative Fees ........ , .......................................................... . 2,159 2,169 3,014
Section 8 Rental Assistance (Tenant Protection Vouchers) ............... . 116 116 220
Advanced Appropriation for FY 2021. •.••.•..•............................ [4,000] ...
[ ] [... ]
Advanced Appropriation for FY 2022...............•......•...•....•...... [(4,000)] [4,000] [... ]
Advanced Appropriation for FY 2023 ..................................... . [... ] [(4,000)] [4,000]
Advanced Appropriation for FY 2024..................................... . ...
[ ] ...
[ ] [(4,000)]
Veterans Affairs Supportive Housing.••.......................................... 40 40
Homeless Vouchers• Domestic Violence ..................................... . 43 43
Tribal HUD VASH ........•...•......................................................... [5] [5) [5]
Mainstream Voucher Renewals .................................................... . 314 314 667
Rental Assistance Demonstration (transfer· PHF) ......................... . [63] [52] [46]
Rental Assistance Demonstration (transfer - Sec 202) ..................... . [3] [2]
Family Unification Program ........................................................ . 25 25
Mobility Related Social Services .................................................. ,.......... . 445
Incremental New Vouchers for the Homeless ........................................ . 1,650
Contract Renewals (American Rescue Plan)........................................... [4,177]
Administrative Fees (American Rescue Plan}................................. . [603]
Allocation Adjustments for CY 2021 (American Rescue Plan) .......•.... [200]
Tota~TBRA.................................................................... . 25,082 w 25,777 32,130
Self-Sufficiency Program Coordinators
Family Self.Sufficiency Program .................................................. . 105 105 120
Resident Opportunity and Self-Sufficiency (ROSS) ......................... . 35 35 35
Jobs Plus Initiative .................................................................... . 15 15 20
Total Self-Sufficiency Program Coortiinators .................. . 155 165 175
Public Housing Fund
Operating Subsidy................. , ................................................... . 4,839 4,839 5,035
Operating Shortfalls ............................................ , ...... ,.............. .. 25 25 25
Capital Formual Grants ............................................................ .. 2,765 2,765 3,200
Energy Efficiency and Climate Resiliency Grants ........................... . 276
Emergency Disaster Reserve....................................................... . 20 20 20
Safety and Security.................................................................... . IO IO 20
Emergency/Disaster • Receiverships and Monitor.s ........................ . 45 45
Financial and Physical AsseBsments ............................................. . 23 23 50
Administrative and Judicial Receiverships .................................... . 15 15 45
Utilities Benchmarking 24
Lead-Based Hazards................................................................................ . 25 25 25
Radon Mitigation ..................................................................................... . 4 4
Healthy Homes ......................................................................................... . 35 35 60
Information Technology Fund (transfer) ................................................ . [(9)]
Rental Assistance Demonstration (transfer} ................................... . [(119)] [(85)] [(86)]
Total, Public Housing Fund ............................................ .. 7,806 7,806 8,780
Choice Neighbor hoods
Choice Neighborhoods Grants ..................................................... .. 200 200 240
Choice Neighborhoods Climate Grant.s .......................................... . [50]
RECLAlM ................................................................................ . 10
Total Choice Neighborhoods ........................................... . 200 200 250
Native American Programs
Formula Grants ............................................. ,.......................................... . 647 647 772
Technical Assistance .................................................................. . 6 5 7
National 01· Regional Organization (NARC) ................................... . 2 2
1-2
GAD 47-463 05/03/2022
5
BUDGET AUTHORITY BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
ACTUAL ANNUALIZED CR REQUEST
Competitive Grants .................................................... , ............... . $100 $100 $150
Indian Community Development Block Grants ............................... . 70 70 70
Native American Housing Block Grants (ARP ACT) ........................ . [450] [450]
Indian Community Development Block Grants (ARP ACT) .............. . [280] [280]
Training and Technical Assistance (ARP Act) ................................. . [10] [10]
Title VI Federal Guarantees for Tribal Houaing Activities
Program Account ............................................................... . 1 1 1
Loan Guarantee Limitation............................................................ . [18] [18] [18]
Total, Native Am.erican Programs ................................ . 825 825 1,000
Indian Housing Loan Guarantee Fund
Program Account....................................................................... . 2 2
L">an Guarantee Contracts .......................................................... . 1 1
Limitation Level. ....................................................................... . [1,190] [1,190]
Total, Indian Housing Loan Guarantee ........................... . 2 2
Native Hawaiian Lonn Guarantee Fund
Credit Subsidy.......................................................................... . (6)
Limitation Level. ....................................................................... . [16] [... ] [... ]
Native Hawaiian Housing Block Grants ......................................... . 2 2 10
Subtotal, Public nnd Indian Housin,.__ _ _ __ 34,767 34,767 42,345
COMMUNITY PLANNING AND DEVELOPMENT
Community Development Fund
Entitlement/Non-entitlement ... ,................................................... , 3,443 3,443 3,543
Insular A.rea CDBG ............................................................ . 1 7 7
Recovery Housing (SUPPORT) ..................................................... . 25 26 25
Disaster Assistance ................................................................... .. 4,996
Communities Act (PL 115-271) ..................................................... . 195
Total, Community Development Funa__ _ _ _ _ __ 3,475 8,470 3,770
HOME Investment Partnerships Program
Formula Grants ......................................................................... . 1,347 1,347 1,946
Insular Areas ............................................................................ . 3 4
Total,HO,i,u>----------------- 1,350 1,350 1,950
Comm.unity Development Loan guarB.ntees (Section 108)
Loan Guarantee Limitation ......................................................... . [300] [300] [300]
Self-Help and Assisted Homeownership (SHOP)
SHOP ....................................................................................... . 10 10 10
Section 4 Capacity Building......................................................... . 41 41 41
Capacity Building for Rural Housing........................................... .. 5 5 5
SHOP for Veterans .................................................................... . 4 4 4
Total, SHOP .................................................................... . 60 60 60
Homeless Assistance Grants
Competitive Grant Renewals (Shelter Plus Care and Supportive Houf 2,569 2,569 3,197
Emergency Solutions Grants .............................. ,....... ,................ . 290 290 290
National Homeless Data Analysis Project ...................................... . 1 1 7
Youth Demonstration. ............................................................................. .. 72 72 72
Youth Technical Assistance..................................................................... . 10 10 10
Technical Assistance................................................................................ .
Rapid Rehousing for Victims of Domestic Violence 52 52 [52]
Total, H o m e l e s s . . . - - - - - - - - - - - - - - 3,000 3,000 3,576
Housing Opportunities for Persons with AIDS (HOPWA)
Formula Grants .......................................... , ................................ . 387 387 410
Competitive Grants ................................................................... .. 43 43 46
Total, HOPWA................................................................ .. 430 430 455
Subtotal, Community Planning and Development....................... . 8,315 13,310 9,811
1-3
GAD 47-463 05/03/2022
6
BUDGET AUTHORITY BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
ACTUAL ANNUALIZED CR REQUEST
HOUSING PROGRAMS
Project-Based Rental Assistance
Section 8 Contract Renewals ............... , ....................................... . $12,879 $12,879 $14,065
Rental Assistance Demonstration Conversion Subsidies .................. . 60
M.21\1 Increases .......................•.........................................•..•...... 275
BBRI Service Coordinators .......................................................... . 31
Contract Administrators ................•............................................. 350 350 375
Advanced Appropriation for FY 2021. .•.•....................•......•............ [400]
Advanced Appropriation for FY 2022 .................•....•............... P••··· [(400)] [400]
Advanced Appropriation for FY 2023 ............................................ . [... ] [(400)] [400]
Advanced Appropriation for FY 2024 ............................................ . ...
[ ] ...
[ ] [(400)]
Tenant Education and Outreach .................................................. . 6 6
Mod Rehab and SRO ................................................................................ . 230 230 194
Rental Assistance Demonstration (transfer) ................................... . [56] [48] [57]
Total, Project-Based Rental Assistance ............................ . 13,465 13,465 16,000
Housing Counseling Assistance
Housing Counseling Assistance .................................................... . 53 53 61
Training Grants ......................................................................... . [3] [3] [3]
Administrative Contract Services ................................................. . 5
Legal Assistance Grants ............................................................. . 20 20
Total, Housing Counseling Assistance ................... , ........ .. 78 78 66
Supportive Housing for the Elderly (Section 202)
Capital Advance (Expansion) .................................•....................•• 35 35 100
Capital Advance Amendments and Other Expenses ....................... .. 3 3 4
Elderly PRAC/SPRAC Renewals/Amendments ............................... . 673 673 742
ServicB Coordinators/Congregate Services .................................... .. 125 125 120
Intergenerational Dwelling Units ................................................. . 6 5
Supportive Services/IWISH Demonstration................................... . 14 14
Rental Assistance Demonstration (RAD) ...................................... .. [(18)] [(19)]
Total, Supportive Housing for the Elderly Housing........ .. 855 855 966
Housing for Persons with Disabilities (Section 811)
Capital Advance nnd PRA (Expansion) ......................................... .. 54 54 80
Capital Advance Amendments and Other Expenses ........................ . 2 2 3
Disabled PRAC/PAC Renewn.1/Amendment ............... , .................... . 171 171 205
Disabled PRACIPAC RenewaUAmendment (CARES Act) ................. . [288]
Total, Disabled Housing .................................................. . 227 227 288
FHA Funds
Mutual Mort. Ins. and Coop. Mgt. Housing Ins. Funds
Management Housing Insurance (CMHI)
Administrative Expenses .................................... , ..... ,•...... 130 130 150
Good N eighboor Next Door .................................................. . 15
Direct l,oan Limitation.......... , .................................. , .......... . [I] [1] (1]
Loan Guarantee Limitation Level. ....................................... .. [400,000] [400,000] [400,000]
Total, MMI/CMHI.. ..•..............................•....................... 130 130 165
General Insurance and Special Risk Insurance Funds
Direct Loan Limitation........................................................ . [5] [1] [l]
Loan Guarantee Limitation Level. ........................................ . [30,000] [30,000] [30,000]
Total, FHA Funds.................................................. . 130 130 165
Manufactured Housing Standards Program
Payments to States ........................................................ , ............ . 5 5
Contracts .................................................................................. . 10
Total, Manufactured Housing Standards Program........ on 13 13 14
Other Assisted Housing................................................................... . (14)
Green and Resilient Retrofit Program................. n••• .. •••••••"•···•····•• 245
Subtotal, Housing Programs..................................................... . 14,754 14,768 16,744
1-4
GAD 47-463 05/03/2022
7
BUDGET AUTHORITY BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
ACTUAL ANNUALIZED CR REQUEST
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
Guarantees of Mortgage-Backed Securities
GNMA • Salaries and Expenses ......................................................... . $37 $37 $42
MBS Guarantee Limitation...................................... . [500,000] (500,000] (550,000]
POLICY DEVELOPMENT AND RESEARCH
Research and Technology .................................................................... . 108 105 146
FAIR HOUSING & EQUAL OPPORTUNITY
Fair Housing Initiative Program ......................................................... . 46 46 56
Fair Housing Assistance Program ......................................................... . 24 24 26
Fair Housing Limited English Proficiency Program ............................... . 0 0 1
National Fair Housing Training Academy............................................ . 2 2 3
Fair Housing Initiatives American Rescue Plan .................................. .. (19]
Total, Fair Housing Activities.................................................. . 73 73 86
OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES
Lead~Based Paint Hazard Reduction
Lead Hazard Control Grants ....................................................... . 190 190 200
Lead Technical Studies and Support ........................................... . 5 5 5
Healthy Homes Grants and Support............................................. . 60 60 90
Lead Hazard Reduction Demonstration ......................................... . 95 95 105
Aging in Place Modification Grants .............................................. . 10 10 (10]
Total, OLHCHH ............................................................... . 360 360 400
MANAGEMENT AND ADMINISTRATION
Salaries and Expenses, HUD .............................................................. . 1,499 1,505 1,796
Salaries and Expenses, OIG ............................................................... . 137 137 149
Information Technology Fund ............................................................ . 300 300 396
Subtotal, Management and Administration.................... .. 1,936 1,942 2,341
Subtotal, HUD Discretionary Budget Authority (Gross) .... 60,349 65,361 71,913
Offsetting Receipts
Ml\lII Capital Reserve ................................................................. . (11,991) (9,376) (7,970)
GNMA Receipts ......................................................................... . (272) (222) (241)
GNMA Capital Reserve ................... ,.......................................... . (2,893) (2,699) (2,090)
GI/SRI Negative Subsidy............................................................ . (951) (784) (789)
Manufactured Housing Fees Trust ............................................... . (17) (16) (16)
Total receipts .................................................................. . (16,124) (13,097) (11,106)
Total, HUD Discretionary Budget Authority (Net) ............ .. 44,225 52,264 60,807
1-5
GAD 47-463 05/03/2022
8
BUDGET AUTHORITY BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
ACTUAL ANNUALIZED CR REQUEST
MANDATORY PROGRAMS
Indian Housing Loan Guarantee.......................................................... $20
Native Hawaiian Housing Block Grants................................................ 5
Tenant~Based Rental Assistance.......................................................... 4,980
Native Hawaiian Housing Loan Guarantee .......................................... .
Native American Programs ................................................................ . 740
HOME Investment Partnership Program ............................................. . 4,950
Community Development Loan Guarantee Program Account .................. . 2
Housing Trust Fund......................................................................... .. 689 739 413
FHA General and Special Risk Program Account .................................. . 1,997 639
FHA General and Special Risk Liquidating Account ...... ,....................... . 25 25 26
FHA Mutual Mortgage Insurance Capital Reserve Account .................... . 11,991 9,376 7,970
Housing for the Elderly or Handicapped Fund Liquidating Account......... . (112) (93)
Housing Supply 7,000
Guarantees of Mortgage-backed Securities Capital Reserve .................... . 2,893 2,699 2,090
Fair Housing Activities ...................................................................... . 19
Program Office Salaries and Expenses ................................................. . 76
Subtotal, Gross Mandatory Budget Authority _ _ _ _ __ 28,388 13,366 17,405
Mandatory Receipts........................................................................................ ,., (3,229) (4,494) (410)
Total, Net Mandatory Budget Authority................................................ . 25,159 8,872 16,995
Total, Net HUD Budget Authority.......................................................... . 69,384 61,136 77,802
a/ 2021 Appropriation includes $695 million designated a.e an emergency pursuant to sectton 25l(b)(2}(A)(i) of the Balanced Budget and Emergnncy
Deficit Control Act of 1985.
1-6
GAD 47-463 05/03/2022
9
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
BUDGET OUTLAYS BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
ACTUAL ANNUALIZED CR REQUEST
DISCRETIONARY PROGRAMS
PUBLIC AND INDIAN HOUSING
Tenant•Based Rental Assistance ...................................................................... . $25,022 $25,951 $31,042
Housing Certificate Fund................................................................................. . 21 25 20
Public Housing Fund......................................................................................... . 3,573 5,743 6,902
Public Housing Capital Fund........................................................................... . 2,085 1,822 942
Public Housing Operating Fund ....................................................................... . 1,620 207 3
Choice Neighborhoods ....................................................................................... . 72 144 155
Revitalization of the Severely Distressed................................... :..................... 1 5 5
Self-Sufficiency Programs................................................................................ .. 81 144 160
Native American Programs .............................................................................. . 822 877 971
Native Hawaiian HoUBing Block Grants ......................................................... .. 4 5 5
Indian Housing :Loan Guarantee Fund............................................................ . 2 4 4
Subtotal, Public and Indian Housing, _ _ _ _ _ _ _ _ _ __ 33,303 34,927 40,210
COMMUNITY PLANNING AND DEVELOPMENT
Housing Opportunities for Persons with AIDS (HOPWA) .............................. . 375 457 427
Community Development Fund....................................................................... . 6,759 10,768 10,942
HOME Investment Partnerships Program., ..........................................•...•...... 863 1,323 1,438
Self-Help Homeownership Opportunity/Habitat...................................... . 46 59 so
Homeless Assistance Grants............................................................................. , 3,215 5,460 3,319
Permanent Supportive Housin.g ........................................................ , ..• , 5
Brownfields Redevelopment............................................................................ .. 1 1
Subtotal, Community Planning and Developmen.__ _ _ _ __ 11,258 18,073 16,177
HOUSING PROGRAMS
Project-Based Rental Assistance .................................. ,... , ............. ,...... . 13,542 13,589 14,517
Housing for the Elderly (Section 202) ................................................... .. 783 858 1,048
Housing for Persons with Disabilities (Section 811) ................................. ,... 211 295 372
Housing Counseling Assistance .................. ,., ........ , .. ,........ , .•. ,...... ,....... . 45 53 101
Other Assisted Housing.............................................................................. . 64 60 55
FHA Funds:
Mutual Mortgage Ins. and Coop. Management Housing Ins. Funds:
Program Account................................................................................... 126 116 130
General Insurance and Special Risk Insurance Funds:
Program Account ........................................................ ,.............•....•.......
Subtotal, FHA Funds..._ _ _ _ _ _ _ _ ............................. 126 116 130
1-7
GAD 47-463 05/03/2022
10
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
BUDGET OUTLAYS BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
ACTUAL ANNUALIZED CR REQUEST
Manufactured Housing Standards Program..................................................... $10 $12 $14
Flexible Subsidy.................................................................................. (24) (31) (37)
Green and Resilient Retrofit Progam............ ,............ ,.......•..•.....•... ,.•..•. , 112
Subtotal, Housing Programs., _ _ _ _ _ _ _ _ ,,, ..................... . 14,757 14,952 16,312
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MortgageHBacked Securities Program Account............................................ $33 $44 $45
POLICY DEVELOPMENT AND RESEARCH
Research and Technology........................................................................... 73 98 127
FAIR HOUSING & EQUAL OPPORTUNITY
Fair Housing Activities...................................................................................... 66 85 77
LEAD HAZARD CONTROL
Lead Hazard Reduction............................................................................ 90 279 347
MANAGEMENT AND ADMINISTRATION
Salaries and Expenses, HUD ............................................................................ . 1,458 1,631 1,901
Salaries and Expenses, OIG...................................................................... .. 140 142 147
Information Technology Fund.......................................................................... . 344 335 377
Working Capital Fund ...................................................................................... . 5 1 (5)
Subtotal, Management and Administratio--------- 1,947 2,109 2,420
HUD Transfor01Htion Initiatives ......................... ,u., ....................... .
Subtotal, HUD Discretionary Outlays (Gross)-----•---·--•• 61,528 70,567 75,715
Deductions for Offsetting Receipts (Discretionary) ......................................... . (968) (800) (805)
Reclassification o f ~ Receipts ...................................................................... . (11,991) (9,376) (7,970)
GNMAProgramAccount. ...................................................... u ............ . (272) (222) (241)
GNMAReceipts .....•..••...............................••..•..........................•..•...... (2,893) (2,699) (2,090)
Total, Offsetting Receipts ............................................................. . (16,124) (13,097) (11,106)
Total, HUD Discretionary Outlays (Net,1------- 45,404 57,470 64,609
1-8
GAD 47-463 05/03/2022
11
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
BUDGET OUTLAYS BY PROGRAM
COMPARATIVE SUMMARY, FISCAL YEARS 2021-2023
(Dollars in Millions)
2021 2022 2023
ACTUAL ANNUALIZED CR REQUEST
MANDATORY PROGRAMS
Indian Housing Loan Guarantee Fund ....................................................... ,.... . $20
Native Hawaiian Housing Block Grants......................................................... .. 4 1
Tenant-Based Rental Assistance ...................................................................... . 368 692 577
Native American Housing Programs ................................................................ . 8 481 148
Native Hawaiian Housing :Loan Guarantee .................................................... . 1
HOME Investment Partnership Program ....................................................... ., 0 644 1337
Community Development Loan Guarantee .................................................... .. 2 0 0
Neighborhood Stabilization Program ....................................................•. 15 17 16
Housing Trust Fund.......................................................................... .. 213 244 361
FHAMMI Program Account................................................................ .. 2,969 1,130
FHA GI/SRI Liquidating ..................................................................... . (139) (30) (8)
FHA GI/SRI Program .......................................................................... . 1,997 639
FHA J\i11\fl Capital Reserve Account ...................................................... . (14,160) (22,446) (1,043)
FHA MMI Liquidating ................................................................. . 12 11
Rental Housing Assistance Fund ............................................. _.,, ......... . (1) (1) (1)
Hou.sing for the Elderly or Handicapped Fund Llqll:idating Account........•.. , (135) (111) (92)
Guarantees ofMortgage~Backed Securities ............................................... . 1,902 400 450
Guarantees of l\fortgage-Backed Secu.rities Liquidating Account................. .. 1 1
Guarantees of Mortgage-Backed Securities Capital Reserve Account............ (155) (1,245) (222)
Guarantees of Mortgage-Backed Securities Pass Through Account............... (3)
Fair Housing Activities .................................................................................... .. 8
Program Office Salaries and Expenses ............................................................ . 24 15
Subtotal, HUD Mandatory Outlays (Gross)----·----- (7,094) (19,548) 1,558
Deductions for Offsetting Receipts (Mandatory,__ _ _ _ __ (3,229) (4,494) (410)
Total, HUD Mandatory Outlays (Net,__ _ _ __ (10,323) (24,042) 1,148
Total, HUD Outlays.................................................................. .. 35,081 33,428 65,757
1-9
GAD 47-463 05/03/2022
12
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FULL-TIME EQUIVALENT (FTE) EMPLOYMENT
(Excludes Overtime and Terminal Leave)
21121 . .·
2022 . 21123
Carryover CR .Total .'Canyover ';;;;;;;- ' Tot!II .·
Salaries an :l Expenses ........................ 7,152 286 7,073 7,359 149 7,958 8,107.00
Other Funds:
Working Capital Fund ... 11 13 13 21 21
GNMA. ..... 154 28 163 191 198 198
Office of Inspector General... .. ........... 505 520 520 535 535
Subtotal .......................................... 670 28 696 724 754 754
Total, HUD FTEs............................... 7,822 314 7,769 8,083 149 8,712 8,861
1-10
GAD 47-463 05/03/2022
13
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Overview of Rental Assistance Programs
In 2021, 79 percent of HUD's non-emergency discretionary appropriations were provided for rental
assistance.' While rental assistance is a major part ofHUD's work, it is not funded at levels that
make it universally available to everyone who is eligible. HUD rental assistance only reaches
approximately 1 in 5 eligible families. The 2023 Budget requests $49.9 billion for rental assistance
programs across HUD, or 82 percent of the total Budget, and will serve nearly 4.8 million families.
Project-Based Rental Assistance 1,217,108 27%
Public Housing Fund 843,749 18%
Housing for the Elderly (Sec. 202) 121,562 3%
Housing for Persons with Disabilities {Sec. 811) 31,325 1%
Tenant-Based Rental Assistance 2,348,043 51%
Total, Families Served b Rental Assistance Pro rams in 2021 4,561,787 100%
VOUCHER EXPANSION PROPOSAL
HUD recognizes that rent and other housing related costs have increased rapidly over the past year.
It is estimated that rent costs increased by approximately 15 percent between January 2021 and
January 2022. 2 To address this problem, the Budget proposes $32.1 billion for the Housing Choice
Voucher program, which includes an expansion of the number of vouchers available to those who
currently qualify for rental assistance by approximately 200,000 units. HUD requests $1.6 billion for
these new incremental vouchers. The 200,000 new vouchers will increase access to affordable
housing for very low-income families and individuals that are experiencing or at-risk of
homelessness. This includes families and individuals fleeing, or attempting to flee domestic violence,
dating violence, sexual assault, or stalking. Through the $5 billion Emergency Housing Voucher
program funded in the American Rescue Plan, public housing agencies (PHAs) and service providers
in the homelessness system have improved their ability to work together to end homelessness for
thousands of people.
PRESERVING AND GREENING AFFORDABLE HOUSING
Public Housing
The President's Budget requests $8.8 billion for the Public Housing program, which is $974 million
more than the 2022 Annualized CR Level. This request will enable PHAs to operate, maintain and
make capital improvements, which includes strategies like the Rental Assistance Demonstration, to
approximately 935,000 affordable public housing units in 2023, serving nearly 1.7 million residents.
These improvements include making housing more accessible for people with disabilities and
seniors. Reinvigorating public housing is also a critical component of reversing racial inequities
1 Rental Assistance, as defined by HUD, includes Tenant-Based Rental Assistance, the Public Housing Fund,
Project-Based Rental Assistance, Housing for the Elderly, and Housing for Persons with Disabilities.
2 https://www.redfin.com/news/redfin-rental-report-ianuary-2022/
2-1
GAD 47-463 05/03/2022
14
OVERVIEW OF RENTAL ASSISTANCE PROGRAMS
because approximately 70 percent of people living in public housing, too much of which is
deteriorating, are people of color.
Improving the environmental conditions and safety of public housing are central to achieving the
Administration's environmental justice priorities. To this end, the Budget includes $276 million for
energy efficiency and climate resiliency improvements in public housing developments and
$24 million to advance utility benchmarking within the portfolio, for a total investment of
$300 million.
The Budget inclu_des $60 million for Public Housing to specifically address safety deficiencies via
Housing Health Hazard Grants. These grants would remediate hazards such as mold, carbon
monoxide, pest infestation, radon, and other housing hazards. The Department intends to prioritize
funding requests to enhance fire safety, including the funding of fire suppression systems such as
fire sprinkler systems for multifamily buildings.
The Budget proposes $50 million for Financial and Physical Assessments, which includes the
financial reviews and physical inspections of public housing necessary to identify performance risk
and to issue Public Housing Assessment System (PHAS) scores. Assessing housing health risks is
critical to additional actions aimed at health equity and environmental justice for public housing
residents, including hundreds of thousands of children.
Multifamily Housing
The 2023 Budget includes $16.3 billion in funding for HUD-assisted multifamily properties: Project-
Based Rental Assistance, Housing for the Elderly, and Housing for Persons with Disabilities. These
properties serve 1.4 million families, many of whom are families of color, and are crucial to the
affordable housing stock in America. The Budget includes up to $250 million for budget-based rent
increases at post-Mark-to-Market properties at risk of distress, and at least $25 million for budget-
based rent increases at other PBRA properties with health and safety deficiencies.
The Budget also includes $250 million for a new Green and Resilient Retrofit program for existing
multifamily assisted properties. Along with improving utility data collection and systems, this new
program would help property owners access grants or direct loan subsidies to make energy- and
water-efficient and climate-resilient improvements in the properties. This funding could reach as
many as 10,000 units. The Budget also includes $110 million for the Rental Assistance
Demonstration within the Tenant-Based and Project-Based Rental Assistance program accounts to
holistically address critical property needs, accessibility, environmental hazards, energy
inefficiencies, and increase housing choice for residents.
Choice Neighborhoods
The Budget includes $250 million for the Choice Neighborhoods program, a $50 million increase
from the 2022 Annualized CR Level. This program is a vital piece of the Administration's strategy to
improve public and assisted housing properties and the surrounding neighborhoods. The Choice
Neighborhoods program celebrated its IO-year anniversary in 2021, and over that decade it has
proven to help people access jobs, increase family incomes, improve access to health care, and
strengthen the overall economic conditions for residents. These improved outcomes for families are
in addition to creating a pipeline of redeveloping over 12,000 distressed properties and more than
27,700 new units of affordable housing.
Please see the "Climate Initiative" justification for more details.
2-2
GAD 47-463 05/03/2022
15
OVERVIEW OF RENTAL ASSISTANCE PROGRAMS
STRENGTHENING SERVICES AND EXPANDING HOUSING CHOICE
In addition to preserving and creating more affordable housing options, HUD supports important
services designed to help renters find housing, increase their incomes, and access communities with
better schools, jobs, and social supports.
Self-Sufficiency Programs
The Budget includes $175 million for the Family Self Sufficiency (FSS), Jobs Plus Initiative, and
Resident Opportunity and Self-Sufficiency (ROSS) programs, a $20 million increase over the 2022
Annualized CR Level. This increase will allow FSS funds to be expanded to reach residents in
multifamily properties. These programs help families access job training opportunities and financial
education in order to build income and savings. Families that graduate from these programs often no
longer need HUD assistance, typically have built savings for the future, and some become
homeowners.
Mobility-Related Services
The Budget includes $445 million to help public housing agencies provide approximately
148,000 families with children evidence-based Mobility-Related Services such as housing search,
payment of security deposits, payment of first and last month's rent, landlord recruitment in
neighborhoods with better jobs, schools, and community supports, and general case management to
help families access services and supports in new neighborhoods. Families receiving housing choice
vouchers often find it difficult to explore housing options outside of neighborhoods in which
disinvestment has historically occurred, resulting in poor performing social supports such as schools
and limited access to jobs. Mobility services increase housing choices for families so they can live in
communities that can better meet their needs.
Other HUD Services Programs for Renters
Housing Counseling Services: The Office of Housing Counseling (OHC), through the Comprehensive
Housing Counseling Grant program and network of approximately 1,600 housing counseling
agencies, provides services to over one million consumers annually across the nation. Services
include eviction prevention, financial empowerment, credit counseling, homelessness prevention,
disaster relief, and pre-home purchase counseling.
Service Coordinators for Seniors: This Budget includes $31 million to support Budget Based Rent
Increases (BBRls) at PBRA properties serving the elderly to cover the cost-of-service coordinators to
help elderly residents stay healthy and age in place. The Budget also includes renewal funding for
1,600 existing Service Coordinator/Congregate Housing Services grants plus any new grants
awarded using 2022 funds. These programs use proven strategies to support seniors living in their
homes for as long as possible and advance the Administrations priority to ensure seniors are able to
age-in-place.
2-3
GAD 47-463 05/03/2022
16
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Climate Initiative
Overview
The increasing frequency, intensity, and duration of natural disasters and severe weather events due
to climate change present a growing risk to the health and safety of HUD-assisted households, as
well as the physical assets financed or subsidized by HUD through a wide range of formula and
competitive grants, rental assistance, and mortgage insurance programs. 1 The year 2021 came in
second place for the most disasters behind the record set in 2020, standing out, however, for the
sheer diversity of disasters experienced. 2 Calendar Year 2021 saw 20 weather and climate disasters
of 8 different types with losses exceeding $1 billion. These events, indicated in the table below,
resulted in the deaths of 688 people as well as serious economic losses. 3
llilliou-Dollor rn,.,,., Ennl< 1980-2011 (Cl'I-Adjust«l)
Communities served by HUD programs, which often have a significant share of low- to moderate-
income households and people of color, are often more vulnerable to climate change due to their
locations, aging infrastructure, and historic disinvestment. HUD's 2023 President's Budget
addresses climate change on two fronts: both in lowering the carbon footprint of the 4.5 million units
of public and assisted housing, and at the same time helping the communities served by HUD
programs to better withstand and increase their resilience to future disasters. This work is aligned
with HUD's comprehensive Climate Action Plan, released in November 2021. 4
1 See IDJD's recently published Climate Resilience Toolkit, https://www.hudexchange.info/news/resource-
available-hud-community-resilience-toolkit/
2 NOAA, 2021 U.S. billion-dollar Weather and Climate Disasters, Adam B. Smith, January 2022.
https://www.climate.gov/news-features/blogs/beyond-data/2021-us-billion-dollar-weather-and-climate-disasters-
historical
3 NOAA National Centers for Environmental Information (NCEI)(2022). U.S. Billion-Dollar Weather and
Climate Disasters. https:/lwww.ncdc.noaa.gov/billions/time-series
"IDJD's Climate Action Plan, https:llwww.hud.gov/climate.
3-1
GAD 47-463 05/03/2022
17
CLlMATE INITIATIVE
2023 Budget
This Budget requests $1.065 billion for targeted investments to improve the quality of housing
through climate resilience and energy and water efficiency. As part of the Administration's whole-of.
government approach to the climate crisis, the Department is committed to expanding efficient and
resilient housing options in public and other HUD-assisted housing. Funds will support a new
program, the Green and Resilient Retrofit Program within Multifamily Housing, and fund initiatives
within existing programs, such as the Rental Assistance Demonstration, Public Housing, Native
American Housing, and Choice Neighborhoods. HUD will continue with a robust set of measures to
strengthen minimum codes and standards, incentivize investments in energy-efficient, high-
performance buildings, and provide technical assistance to HUD partners to implement proven
measures such as utility benchmarking to lower energy use and resulting carbon emissions in their
properties.
Of the $1.065 billion in climate related requests, $55.5 million is requested for furthering utility
benchmarking at public and multifamily assisted housing properties. HUD is working across the
Department to increase the number of properties successfully engaged in utility benchmarking and
to implement cohesive agency-wide systems designed to effectively manage and monitor utility
usage, including seeing year-over-year trends, verifying utility expenditures, managing utility cost
reduction incentives, understanding building performance, and tracking progress toward utility
consumption and climate goals.
Climate investments are proposed in the following program areas:
$150 million
$250 million
ousing (Multifamily) $250 million
Housing (Multifamily) ental Assistance Demonstration $110 million
PD&R $5 million
olal $1,065 million
Public and Indian Housing:
• Public Housing Fund: $300 million is for climate initiatives. Of this, $276 million is
intended for the Public Housing Rapid Return Utility Conservation and Climate Resilience
Program to be awarded through competitive grants to pay for efficiency upgrades and
climate resilience in public housing. The remaining $24 million is intended to promote and
implement utility consumption benchmarking across the public housing portfolio via
research, evaluation, technical assistance, and contracts, as well as the collection and
analysis of data.
• Native American Programs: The Budget requests $150 million for the Indian Housing
Block Grant (IHBG) competitive program, which focuses on projects that spur construction
3-2
GAD 47-463 05/03/2022
18
CLIMATE INITIATIVE
and rehabilitation of housing units. The funds requested would give priority to projects that
further climate resilience, increase energy efficiency, improve water conservation, and
sustain these improvements over a long period.
• Choice Neighborhoods: $250 million will be available for the Choice Neighborhoods
program, which helps communities develop and implement locally driven comprehensive
neighborhood plans to transform underserved neighborhoods. The program advances climate
resilience and environmental justice by redeveloping and replacing distressed public and
multifamily housing and neighborhood amenities with resilient and energy-efficient
structures. Up to $10 million will be used to support revitalization in communities in
proximity to Superfund sites through a pilot of the Revitalization and Empowerment of
Communities near Contaminated Lands through Assistance, Investment, and Mitigation
(RECLAIM) program.
Multifamily Housing:
• Green and Resilient Retrofit Program: $250 million to provide funding to owners of
assisted multifamily properties to rehabilitate these properties to be more energy efficient,
healthier, and more resilient to natural disasters and extreme weather events. This
increased investment will improve the stock of affordable housing available to many low- and
extremely low-income families, reduce the likelihood of catastrophic damage from future
disasters, yield cost savings by reducing energy and water consumption, and also improve
indoor air quality by following industry best practices for multifamily properties.
Funding for this initiative will be as follows: $207.5 million for grants and loans for energy
retrofits, green investments, and climate resilience improvements for approximately 3,500 to
10,000 units at assisted multifamily properties nationwide; $31.5 million for utility
benchmarking data collection and systems, including $5 million for IT investments; and
$11 million for administrative contract costs.
• Rental Assistance Demonstration (RAD) Program: $110 million to transition
approximately 30,000 public housing units and 3,000 202 Project Rental Assistance Contract
units to a more sustainable platform - $60 million under the Project Based Rental Assistance
Program (PERA) and $50 million under the Tenant Based Rental Assistance Program
(TERA). As part of the conversion to either PERA or TERA, properties undergo an extensive
review and mitigation/improvement process. This conversion process preserves and improves
the properties and will enable public housing authorities and multifamily owners to
holistically address critical property needs, environmental hazards, and energy inefficiencies,
and increase housing choice for residents.
• Policy Development and Research: $5 million to fund research in housing, climate
adaptation, and resilience, to be administered by the Office of Policy Development and
Research. This could include studying opportunities to mitigate the climate-related risk to
HUD properties and HUD-assisted households, evaluating existing programs supporting
recovery from and resilience to environmental threats, and researching energy efficiency and
environmental justice issues in the nation's housing stock.
Lowering Carbon Emissions and Energy Costs
As noted above, HUD released a comprehensive Climate Action Plan in November 2021. That plan
can be accessed at https://hud.gov/climate.
HUD has a portfolio of approximately 4.5 million existing public and assisted housing units and
plays a key role in the development and preservation of affordable housing through a wide range of
3-3
GAD 47-463 05/03/2022
19
CLIMATE INITIATIVE
programs. HUD's annual outlays on utilities (energy and water) in this housing stock consume as
much as 14 percent of the agency's total budget and, according to an internal HUD analysis, produce
an estimated 13.6 million metric tons of carbon emissions. 5 Improving the energy performance of
HUD assets will play a significant role in reducing these outlays - allowing for more funds to be
spent on housing rather than utilities - and simultaneously lowering carbon emissions across HUD's
public and assisted housing portfolio.
Key Initiatives. Current and previous energy and water conservation initiatives demonstrate the
potential for achieving energy savings and carbon reduction with the right mix of incentives, direct
financial support, and/or technical assistance. The Multifamily Green Retrofit Program funded by
the American Recovery and Reinvestment Act of 2009, for example, invested $250 million to retrofit
227 HUD-assisted multifamily properties, resulting in cost-effective interventions that produced
average energy and water savings of 18 percent and 26 percent respectively. 6 Current activities
include:
• Energy Performance Contracts (EPCs) in public housing have benefitted about 250,000 units
(about a quarter of the current public housing stock) through approximately 315 EPCs
approved since the 1980s. In 2016-2017, 28 EPCs were approved covering 64,000 units of
public housing, with an estimated savings of $400 million by PHAs expected over the life of
those contracts, which can be up to 20 years. 7
The Green Mortgage Insurance Premium (Green MIP) provides a strong incentive for FHA
multifamily borrowers to adopt one of several approved green building standards. A total of
$46.6 billion in multifamily mortgage insurance for green projects has been endorsed for
1,742 developments with approximately 341,000 units of multifamily housing since the
Green MIP was introduced in 2016 (Table 3). 8 Green MIP borrowers must also commit to
benchmarking utilities and achieve a minimum 75 Energy Star score in the Environmental
Protection Agency's (EPA) Portfolio Manager for the life of the loan.
Table 3: Multifamily Green MIP Initial Endorsements, by Year
Year
2016 33 $1,161,773,800 7,690
2017 153 $4,571,474,900 33,090
2018 247 $7,007,507,500 49,989
2019 222 $5,991,850,500 43,426
2020 430 $10,964,163,300 82,705
2021 657 $16,903,852,440 124,703
Grand Total 1,742 $46,600,622,440 341,603
5 Preliminary internal HUD estimate of carbon emissions, March 2021. Assisted multifamily and Housing
Choice Voucher unit counts from Characteristics of HUD-Assisted Renters and Their Units in 2017 (2020) and
public housing unit counts from PIC database were used to estimate total BTU consumption for each subsidy
type by Census Region, using per-household annual BTU consumption rates from the Residential '.Energy
Consumption Survey (RECS).
6 BrightPower and SAHF, Energy and Water Sauings in Multifamily Retrofits: Results from the U.S. Department
of Housing and Urban Deuelopment's Green Retrofit Program and the Energy Sauers Program in Illinois, June
2014. https://www.brightpower.com/wp-content/uploads/2016/09/Energy-and-Water-Savin gs-in-Multifamily-
Retrofits.pdf
7 HUD Report to Congress, Achieving Utility Sauings in HUD-Assisted Housing, September 2019.
8 HUD Office of Multifamily Housing, Multifamily and Healthcare Fiscal Year Production, Through 2021.
https://www.hud.gov/program offices/housing/mfl1/mfdata/mfproduction
3-4
GAD 47-463 05/03/2022
20
CLIMATE INITIATIVE
• The Multifamily Better Buildings Challenge is a partnership with the Department of Energy
(DOE) that supports multifamily housing organizations who voluntarily commit to reducing
their energy consumption by 20 percent over 10 years, includes approximately 517,000 units
of public and assisted housing (accounting for one-fifth of those programs' units), and has
facilitated about $40 of energy savings for every $1 in Community Compass cross-cutting
technical assistance contributed by HUD.
• The Better Climate Challenge is another partnership with DOE that builds upon the
Multifamily Better Buildings Challenge to include voluntary, ambitious commitments to
reduce carbon pollution. Participating partners must commit to portfolio-wide reductions in
carbon emissions of 50 percent over the next 10 years. This initiative was launched on
February 28, 2022, and will likely be supported by HUD's Community Compass Technical
Assistance (TA) going forward.
• Some HUD programs, including Choice Neighborhoods and Community Development Block
Grant-Disaster Recovery (CDBG-DR) have set minimum above-code Energy Star New Home
or green building standards for new construction. Other programs, such as the Rental
Assistance Demonstration (RAD), encourage adoption of these above-code green building
standards. HUD will take steps to strengthen these green building standards and also
update minimum International Energy Conservation Code (IECC) and ASHRAE 90.1
standards as required by statute. 9
In addition to HUD's 2023 Budget request for $1.065 billion for energy efficient and climate resilient
investments, HUD will initiate a robust set of measures as described in the Climate Action Plan to
strengthen minimum codes and standards, incentivize investments in energy-efficient, high-
performance building, pilot or demonstrate advanced building electrification or decarbonization, and
provide technical assistance to HUD partners to implement proven measures such as utility
benchmarking to lower energy use and carbon emissions in their properties.
Increasing Community Resilience to Climate Change
Low- and moderate-income communities served by HUD's formula grant and rental assistance
programs are especially and increasingly vulnerable to climate-related threats, including but not
limited to extreme weather events, extreme heat, coastal flooding, wildfires, and diminished air
quality. Several HUD programs play a critical role in helping communities rebuild and implement
long-term recovery plans after Presidentially-declared natural disasters. Investments in these areas
will bolster the resilience of HUD's inventory of public and assisted housing against these
increasingly likely severe natural disasters.
HUD Disaster Programs
• HUD works with communities to respond to or prepare for natural disasters through the
CDBG-DR program. Since 1993, Congress has appropriated a total of $95.4 billion in
emergency supplemental funding for CDBG-DR. Funding has been made available, for
example, to support rebuilding after: Hurricane Sandy in New York, New Jersey, and
Connecticut; Hurricane Katrina on the Gulf Coast; more recently, Hurricane Harvey in
Texas, and Hurricanes Irma and Maria in Florida, Puerto Rico, and the U.S. Virgin Islands;
and many smaller but significant additional disasters. Funds can be used for a wide variety
of purposes. 10 In 2018, Congress appropriated over $12 billion specifically for mitigation
activities in states and local communities that experienced qualifying disasters in 2015,
2016, and 2017, primarily in the south and southeastern U.S. (these funds were
9 Section 109, Cranston-Gonzalez National Affordable Housing Act of 1990 (42 U.S.C. 12709)
as amended by
Section 481 of the Energy Independence and Security Act of 2007.
10 HUD Exchange, Congressional Appropriations By Year, https://www.hudexchange.info/programs/cdbg-dr/cdbg-
dr-grantee-contact-info1mation/#congressional-appropriations-by-year
3-5
GAD 47-463 05/03/2022
21
CLIMATE INITIATIVE
supplemented for a total of $15.9 billion awarded for mitigation).11 This funding is a
significant opportunity for grant recipients to carry out strategic and high-impact activities
to mitigate disaster risks and reduce future losses in areas impacted by recent disasters.
• In the past, HUD has also supported capital-intensive infrastructure investments through
competition, notably the Rebuild By Design and National Disaster Resilience Competitions.
Launched in June 2013 in response to the devastation caused by Hurricane Sandy, Rebuild
by Design established a new participatory model for designing for resilience that yielded
seven groundbreaking designs to enhance resilience throughout the Northeast region. The
subsequent National Disaster Resilience Competition (NDRC), a collaboration with the
Rockefeller Foundation, awarded nearly $1 billion to eligible communities in a two-phase
process to aid communities recovering from prior disasters and improve their ability to
withstand and recover more quickly from future natural disasters.1 2
Continuing Risks and Vulnerabilities. As a result of these programs, HUD has been able to work
with local communities to make significant strides toward addressing these threats. However, the
escalating nature of climate risk means that essential but reactive measures are insufficient to
address the scale of the problem. The households and communities HUD supports throughout its
programs continue to be vulnerable to impacts from the full range of climate threats.
• Recent analysis and mapping by Climate Central projects that the number of affordable
housing units at risk from flooding in coastal areas will triple by 2050. 13 By 2050, virtually
every coastal state is expected to have at least some affordable housing exposed to more than
one coastal flood risk event per year--up from about half of coastal states in the year 2000.
Projections for New York City, Atlantic City, and Boston show that each city could have
thousands of units exposed to chronic coastal flooding by 2050. 14
• A report from the Denali Commission found that 144 Native Alaskan Villages (43 percent of
all Alaskan communities) experienced infrastructure damage from erosion, flooding, and
permafrost thaw; 16 the Alaska Native Tribal Health Consortium cites "limited progress" has
been made in supporting protection-in-place, managed retreat, or community relocation
efforts in these places. 16
• Year-long power outages in Puerto Rico following Hurricane Maria show the need for both
hardening the electric grid and developing resilient, clean power options at the building and
community scales to enable local residents to better weather power outages.
Focus on Resilience. Since 2008, Congress has appropriated almost $16 billion to HUD specnically
for mitigation eff9_rts that help reduce the risk from future climate events. 17 These types of
11 Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018 (Division B,
Subdivision 1 of the Bipartisan Budget Act of 2018, Pub. L. 115-123, February 9, 2018. See Federal Register
Notice FR-6109-N-02. https://www.govinfo.gov/content/pkg/FR-2019-08-30/pdf/2019-18607.pdf
12 HUD Exchange, CDBG-DR Overview, https://files.hudexchange.info/resources/documents/CDBG-Disaster-
Recoveiy-Overview.pdf
13 Climate Central, Coastal Flood Risk to Affordable Housing Projected to Triple by 2050,
https://www .climatecentral.org/
14 Maya K Buchanan, Scott Kulp, Lara Cushing, Rachel Morello-Frosch, Todd Nedwick, and Benjamin Strauss,
Sea level rise and coastal flooding threaten affordable housing, December 2020.
https://iopscience.iop.org/article/10.1088/l 748-9326/abb266
15 Denali Commission, Statewide Threat Assessment: Identification of Threats from Erosion, Flooding, and
Thawing Permafrost in Remote Alaska Communities, November 2019. https://www.denali.gov/wp-
content/uploads/2019/11/Sta tewide-Threa t-Assessment-Final-Report-20-November-2019. pdf
16 Alaska Native Tribal Health Consortium, State of Alaska, Alaska Center for Climate Assessment and Policy,
Unmet Needs of Environmentally Threatened Alaska Native Villages: Assessment and Recommendations, 2021.
17 HUD Exchange, Congressional Appropriations By Year, https://www.hudexchange.info/prngrams/cdbg-
dr/cdbg-dr-grantee-contact-information/#congressional-appropriations-by-year
3-6
GAD 47-463 05/03/2022
22
CLIMATE INITIATIVE
anticipatory investments pay for themselves many times over: the National Institute of Building
Sciences (NIBS) estimates $6 in savings for every $1 spent through federal mitigation grants funded
and a benefit-cost ratio (BCR) of 4:1 for investments in model building codes. 18 In addition, effective
adaptation can also enhance social and economic well-being, including improving economic
opportunity and job creation, health, equity, security, education, social connectivity, and sense of
place, as well as safeguarding cultural resources and environmental quality.
Due to their experience delivering effective carbon mitigation programs, the HUD Offices of Public
and Indian Housing (PIH) and Housing are positioned to scale decarbonization and resilience efforts
with additional funds proposed in this Budget. In addition, the Department will continue to support
strong partnerships with DOE, such as the Better Buildings Challenge and Better Climate
Challenge, as well as better integration of HUD healthy housing and rehabilitation funds with DOE
weatherization funding.
Figure 2: CDBG-DR Appropriations Since 2008
($ Millions)
30.000
15.000
;,o,ooo
lS,000
10,000
5,000
I
rY08 ~Y!O
-
fYl.?
II
fY14
I
F'l'16 FY 18
I
FYiO
I
Coordination and Collaboration
HUD's Climate Action Plan contains over 100 concrete actions related to climate adaptation and
resilience, energy efficiency and greenhouse gas reduction, and environmental justice. The Climate
Action Plan serves as a mechanism for coordinating and tracking continued progress toward
administration climate priorities.
HUD's concurrent investments and dedicated coordination efforts across programs will allow for
mitigation and adaptation actions to be implemented simultaneously at the project, community, and
regional levels, achieving important synergies, and minimizing disruption. HUD has launched a
Department-wide Climate and Environmental Justice Council chaired by Secretary Fudge to
manage the comprehensive Climate Action Plan and focus and coordinate HUD's work internally
across program offices in 2023. Closer collaboration with the Federal Emergency Management
Agency (FEMA), DOE, EPA, and other agencies supporting this work will help ensure that
individuals, buildings, communities, and regions are both more prepared and better able to recover
when disasters hit.
18 National Institute of Building Sciences, Natural Hazard Mitigation Saves, Interim Report, 2017.
https://www.fema.gov/sites/default/files/2020-07/fema ms2 interim rep011 2017.pdf
3-7
GAD 47-463 05/03/2022
23
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Housing Supply Fund (Mandatory Request)
HOUSING SUPPLY FUND
(Dollars in Millions)
PROGRAM PURPOSE
Housing production has lagged compared to population growth for decades, largely due to regulatory
barriers and lack of affordable financing options. The estimated shortage of 3.8 million homes has
resulted in rental units and homeownership being unaffordable, and often unattainable, for millions
of Americans. Housing costs have increased sharply over the last year; the price of single-family
homes and the cost of renting a home both increased by double digits in 2021. Lack of housing
supply, especially housing affordable to families with low- to moderate- incomes, is a major
contributor to high housing costs. Demand for housing has increased without an adequate supply to
meet people's needs.
To address the critical shortage of affordable housing in communities across the Nation, the Budget
proposes $50 billion in mandatory funding and additional Low-Income Housing Tax Credits to
address market gaps, increase housing supply, and help to stabilize housing prices over the long
term. This proposal will provide $35 billion for a Housing Supply Fund at HUD for State and local
housing finance agencies and their partners to provide grants, revolving loan funds and other
streamlined financing tools, as well as grants to advance State and local jurisdictions' efforts to
remove barriers to affordable housing development. The Department of the Treasury will administer
approximately $10 billion in additional investments of Low-Income Housing Tax Credits and
$5 billion for Community Development Financial Institutions to finance new construction or
substantial rehabilitation that results in a net increase in available high-quality of both rental and
single-family housing.
BUDGET OVERVIEW
The 2023 President's Budget requests $35 billion in mandatory funding over 10 years for a Housing
Supply Fund to increase housing development. This is a new program for 2023, and would have two
components:
• Grants for Affordable Housing Production - $25 billion
• Grants to Reduce Affordable Housing Barriers - $10 billion
Grants for Affordable Housing Production. These flexible formula grants will be distributed to
State and local housing finance agencies and their partners, territories, and Tribes, to produce
streamlined financing tools for multifamily and single-family housing units of modest density (up to
100 units per site). These resources will be used to support housing for renters and homebuyers with
low to moderate incomes, including families with up to 150 percent of AMI in high-cost areas as
determined by HUD.
4-1
GAD 47-463 05/03/2022
24
HOUSING SUPPLY FUND
Grants to Reduce Affordable Housing Barriers. These grants will support states and local
jurisdictions that have adopted housing-forward policies and practices to remove barriers to the
development of affordable housing. The grants will provide additional funding to incentivize and
increase the production of affordable units and housing-related infrastructure to support increased
housing development, such as environmental planning and mitigation, road infrastructure, and
water/sewer infrastructure. This program will also be used to provide resources for jurisdictions to
take active steps towards becoming a housing-forward community, such as meeting housing
production goals.
To address housing supply needs on Tribal lands, a portion of the funds will be set aside for HUD to
design programs that can be directly accessed by Tribal governments and Tribal Designated Housing
Entities (TDHEs).
The proposal will allow a portion of the funds to be used for additional HUD staff, new and upgraded
information technology systems, research, and technical assistance to effectively administer and
advance implementation of this program.
JUSTIFICATION
While the pace of housing development is growing, the estimated shortage of roughly 3.8 million
homes has resulted in rental units and homeownership being unaffordable, and often unattainable,
for millions of Americans. 1 Too often, new development, especially income-restricted housing
development, is slow because developers must secure multiple sources of financing to build the
housing. This results in higher transaction costs that may make it financially infeasible to build
smaller developments. Over time, the average number of units in properties developed through
federal Low-Income Housing Tax Credits has increased.2 Many rural and midsize jurisdictions need
a path for development that includes smaller building footprints to better integrate with existing
communities and meet the demand for affordable rental housing. This program will create a
streamlined source of local and state housing financing to enable these smaller projects to more
easily get funding. Similarly, affordable development for homeownership faces substantial financing
gaps when it comes to the production of starter homes, duplexes or small multi-unit buildings,
accessory dwelling units, or modular construction. Given the changing fabric of communities after
the pandemic, funding to build or rehabilitate single and multi-unit housing will not only generate
housing stability, but also reduce vacancies and encourage thriving communities.
Local regulations, zoning policies, and insufficient infrastructure are also barriers to increased
housing supply. This proposal would encourage and support communities that improve (or want to
improve) their local regulations and zoning policies designed to allow for increased housing supply.
This funding can also be used to finance housing-related infrastructure investments so that housing
development projects can move forward. These may include street improvements, traffic control
measures, and higher capacity or extended water and sewer lines.
The types of housing constructed or rehabilitated will be driven by housing gaps determined by local
demographic need. HUD will encourage grantees to develop housing that directly meets identified
local needs, especially housing that is not currently incentivized by the market such as
intergenerational housing and investments that place vacant or underutilized properties back into
productive use. Recognizing the varied needs of communities, these funds can be used to support a
1 Freddie Mac Research Note; ''Housing Supply: a Growing Deficit. May 2021.
https://www.freddiemac.com/research/insight/20210507-housing-supply
2 LIHTC 2019 Tables.xlsx (huduser.gov)
4-2
GAD 47-463 05/03/2022
25
HOUSING SUPPLY FUND
range of housing types, including accessory dwelling units and small- to moderately-sized
multifamily development.
This program will be designed to streamline financing tools in order to reduce transactional costs
and increase housing supply. States and localities will have flexibility to design their programs as
loan products, grants or other financial tools to meet local needs. As appropriate to the grantee,
these programs could support:
• Development, rehabilitation of one or multi-unit housing up to 100 units;
• Reconstruction, adaptive reuse, or conversion of vacant residential or commercial properties,
or development of vacant lots; and
• Novel and non-traditional development techniques for one or multi-unit housing, including
but not limited to accessory dwelling units and modular, panelized, or advanced
manufactured housing factories, providers or developers.
Direct recipients of Grants for Affordable Housing Production will include State and local housing
finance agencies, or their partners. In order to more directly address local housing needs, funds may
be further distributed to subrecipients to include Community Development Block Grant (CDBG)
entitlement grantees, non-profits, Community Development Financial Institutions (CDFis), and
other eligible entities. A portion of funds will be reserved for research, technical assistance, and
program administration for grantees. Finally, a portion will be set-aside for direct access by Tribes
and Tribally Designated Housing Entities.
Direct recipients of Grants to Reduce Affordable Housing Barriers will include State and local
jurisdictions, territories, and Tribes.
4-3
GAD 47-463 05/03/2022
26
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Development Block Grant-Disaster Recovery Authorization
The President's 2023 Budget supports authorizing the Community Development Block Grant-
Disaster Recovery (CDBG-DR) program, consistent with the enclosed principles.
For more than twenty years, Congress has appropriated supplemental emergency funding for CDBG-
DR on an ad hoc basis in response to major disasters to address the unmet long term disaster
recovery needs of States, territories, local governments, and Tribes. Congress has generally directed
grantees to use CDBG-DR funds for disaster relief, long-term recovery, restoration of infrastructure
and housing, economic revitalization, and mitigation in the most impacted and distressed areas
resulting from a qualifying major disaster.
The U.S. Government Accountability Office, HUD's Office of the Inspector General, many CDBG-DR
grantees, and other organizations that work with communities to help them recover, have all noted
the benefits of creating a permanently authorized CDBG-DR program,! Permanent authorization of
CDBG-DR would improve the transparency and predictability of CDBG-DR funds made available to
impacted communities. Permanent authorization would also require HUD to establish consistent
regulatory requirements for CDBG-DR across all future disasters, eliminating the current practice of
establishing new requirements in response to each supplemental appropriation of CDBG-DR funds.
The following guiding principles should inform the permanent authorization of CD BG-DR:
Advance Equity. Federal investments should address the disproportionate health,
environmental, and economic impacts on disadvantaged communities from natural disasters that
are increasing in frequency and intensity due to climate change. CDBG-DR is uniquely
positioned to advance equity and prioritize disadvantaged communities, turning disaster-
impacted neighborhoods that have historically faced underinvestment into resilient, healthy,
sustainable, thriving communities.
Prioritize and Integrate Resilience. People of color and low-income people are more likely to
live in areas most vulnerable to flooding and other climate change-related weather events.
CDBG-DR's role in long-term housing recovery and related needs should prioritize and integrate
resilient investments that mitigate the effects offuture natural disasters, which would
significantly reduce future fiscal and social costs.
Efficacy, Efficiency, Transparency. There must be a coordinated, whole-of-government
approach to disaster recovery that effectively and efficiently leverages each Federal agency's core
expertise. Given HUD's mission, CDBG-DR would focus on addressing long-term housing recovery
and related needs, particularly serving the most vulnerable communities. Codifying the CDBG-DR
program would improve transparency and help communities make more informed decisions and
plan for and initiate long-term recovery efforts.
Build Capacity. Balancing Federal, State, territorial, Tribal, and local disaster responsibilities
and resources is key to ensuring a holistic approach to disaster recovery. CDBG-DR should help
increase State, territorial, Tribal, and local capacity, especially in disadvantaged communities, to
empower local communities around the U.S. to maximize their resilience to natural disasters.
HUD would use CDBG-DR funds to facilitate robust and inclusive community recovery planning
and engagement.
1 U.S. Government Accountability Office, Disaster Block Grants: Factors to Consider in Authorizing a
Permanent Program, May 19, 2021 (GAO-21-569-T)
5-1
GAD 47-463 05/03/2022
27
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Tenant-Based Rental Assistance
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 25,777,439 942,560 4,980,000 31,699,999 27,100,622 25,391,173
2022 Annualized CR 25,777,439 4,654,374 30,431,813 26,879,000 26,643,000
2023 President's Budget 32,130,000 3,600,000 35,730,000 32,899,000 31,619,000
Change from 2022 6,352,561 (1,054,374) 5,298,187 6,020,000 4,976,000
a/ 2021 Appropriation includes $695 million designated as an emergency pursuantio section 251(b)(2J(A)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985.
bl 2021 Canyoverincludes $6.7 million in recaptured prior year unpaid obligations and $63 million transfemed from the Public Housing Fund for the
purpose of Rental Assistance Demonstration (RAD) conversions.
c/ 2021 Supplemental/Rescission includes $4.98 billion in supplemental American Rescue Plan (ARP) mandatory funding,
di 2022 Canyover includes $4.5 billion in 2021 American Rescue Plan (ARP) mandatory unobligated balance brought forward. Additionally, it
includes an estimated $52 million transferred from the Pubfic Housing Fund and an estimated $4 million transferred from the Housing for the Elderly account
for the purpose of Rental Assistance Demonstration (RAD) conversions.
el 2023 Canyover includes $3.5 billion in 2021 American Rescue Plan (ARP) mandatory unobligated balance brought forward. Additionally, it
includes an estimated $46 million transferred from the Public Housing Fund and an estimated $2 million transferred from the Housing for the Elderly account
for the purpose of Rental Assistance Demonstration (RAD) conversions.
PROGRAM PURPOSE
The Housing Choice Voucher (HCV) program is authorized under Section 8(0) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) and is administered locally by approximately 2,100 public
housing agencies (PHAs) that currently serve approximately 2.3 million families. Tenant-Based
Rental Assistance (TBRA), commonly known as the HCV program, seeks to provide greater access to
housing choice and better housing opportunities for very low- and extremely low-income families;
reduce the number of chronically homeless individuals, families, and veterans; and reverse the
effects ofr~_sidential segregation in the pursuit of racial equity.
BUDGET OVERVIEW
The 2023 President's Budget for Tenant-Based Rental Assistance (TBRA) is $32.1 billion, which is
$6.4 billion more than the 2022 annualized CR level. The Budget simultaneously supports the
Administration's strategic goals to strengthen and broaden Federal housing assistance for people in
need and advance housing equity by improving housing choices and access to economic opportunity.
The Budget aligns with the Administration's efforts to build a bridge toward economic recovery and
stabilized communities.
The HCV program is the Federal Government's largest program targeted to assist very low-income
families, the elderly, and persons with disabilities in renting affordable, decent, safe, and sanitary
housing in the private market. The program serves the most economically vulnerable individuals
and families in the country, including seniors, people with disabilities, domestic violence survivors,
people experiencing homelessness, including veterans experiencing homelessness, at-risk youth
aging out of foster care, and families with children, by providing Federal voucher assistance
payments to help them meet their rental housing needs.
The 2023 Budget includes funding for the following activities:
6-1
GAD 47-463 05/03/2022
28
TENANT-BASED RENTAL ASSISTANCE
$26.2 billion for Contract Renewals (HAP), which is an increase of $3.2 billion from the 2022
annualized CR level;
• $3 billion in Administrative Fees, which is an increase of $855 million from the 2022
annualized CR level;
• $220 million for Tenant Protection Vouchers (TPV), which is an increase of $104 million from
the 2022 annualized CR level;
• $667 million for Section 8 Mainstream Renewals, which is an increase of $353 million from
the 2022 annualized CR level;
• $445 million for Mobility Demonstration/Services, which would not be included in a 2022
annualized CR; and
• $1.6 billion for Incremental Vouchers, which would not be included in a 2022 annualized CR.
JUSTIFICATION
The HCV program is an essential component of the Federal housing safety net for people in need.
The availability of housing choice vouchers represents the opportunity for low- and extremely low-
income families to improve their housing options and pursue greater economic opportunities.
Support for the HCV program increases access to affordable housing, and the option to project base
vouchers helps preserve deeply affordable units available to families in need. The Administration
supports a strategy that recognizes the HCV program as an essential resource to prevent
homelessness, promote racial equity, and ensure families pay an affordable share of their income for
rent.
The HCV program partners with local PHAs and landlords to provide housing to our nation's
neediest families. Of the families currently receiving HCVassistance:
• 78 percent are extremely low-income, earning below 30 percent of the area median income;
• 75 percent of program participants identify as part of a minority population; 53 percent of
those being Black, non-Hispanic;
• 25 percent of households served have an elderly head of household;
• 25 percent have a non-elderly disabled head of household; and
• 35 percent of families served have a female head of household with children.
Without rental assistance, these families would likely face a great risk of transitory housing
instability or even homelessness, or be forced to forgo other life necessities, such as food, clothing,
and medicine.
HUD's Worst Case Housing Needs: 2021 Report to Congress reveals that among very low-income
renter households that lacked assistance, 7. 77 million had worst case housing needs resulting from
severe rent burdens (paying more than one-half of their monthly income for rent) or living in
severely inadequate housing units. 1 Many families assisted by the H CV program formerly
experienced worst-case housing needs and, without the benefit of this program, would be at
immediate risk of homelessness.
HCV assistance is primarily tenant-based assistance, which means the assistance is not
permanently tied to a particular unit or project, but rather to an individual family. The family is
responsible for finding a suitable rental unit with an owner who is willing to participate in the
1 IITJD's Worst Case Housing Needs Report, 2021 fu!port to Congress
(https://www.huduser.gov/portal/sitesldefault/files/pd:£1worst-case-housing-needs-2021.pdf)
6-2
GAD 47-463 05/03/2022
29
TENANT-BASED RENTAL ASSISTANCE
program. The PHA pays a monthly housing assistance payment directly to the owner on beha!f of the
family. That payment helps cover the affordability gap between what very low-income families can
afford to pay for rent and the actual rent charged. The HCV program relies on private sector
partnerships to provide affordable housing opportunities effectively and efficiently in the local
community, instead of depending on direct government intervention to build more affordable
housing.
HUD works with numerous stakeholders in providing HCV assistance to families. In addition to
PHAs and private owners, these include:
• Other Federal agencies, such as the Department of Veterans Affairs,
• State and local entities, such as Public Child Welfare Agencies,
• Housing industry associations,
• Resident groups, and
• TDHEs and Tribal governments.
The HCV program has proven to be effective at meeting the housing needs of our most vulnerable
citizens compared to other approaches. Two landmark studies conducted in the past 20 years attest
to the effectiveness of housing vouchers in increasing housing stability and reducing homelessness.
For example, the 2006 report "Effects of Housing Vouchers on Welfare Families" found that receiving
a housing voucher helped families move to neighborhoods with lower poverty rates, higher
employment rates, and lower rates of public benefit receipt. 2 Receiving a housing voucher also
substantially decreased the likelihood that a household would experience homelessness due to
economic hardship. The 2016 report "Family Options Study: Short-term Impacts of Housing Services
Interventions for Homeless Families" by HUD's Office of Policy Development and Research
presented evidence regarding the effects of giving families in emergency shelters priority access to
housing choice vouchers, rapid re-housing, or project-based transitional housing. 3 The study
determined that the HCV program was the most effective intervention of the approaches tested.
HCV intervention reduced most forms ofresidential instability by more than one half, reduced food
insecurity, and improved multiple measures of adult and child well-being. In 2022, HUD's Family
Options Study will re-survey study families to evaluate which of the impacts detected at three years
after random assignment persist.
The 2023 Budget includes several assumptions. It assumes that PHAs will fully utilize their 2022
funding renewal allocations, as they consistently did prior to the COVID pandemic. HUD also
applied the 2022 and 2023 inflation factors and adjusted the renewal need estimate for first time
renewals for new vouchers, such as TPVs and Special Purpose Vouchers (SPVs) awarded in 2021 and
2022. Consistent with HUD's 2022-2026 Strategic Plan objective to improve rental assistance, the
Budget assumes an increase in leasing of 32,000 new households in 2022 through the provision of
comprehensive technical assistance designed to encourage PHA expenditure of available program
reserves. HUD also expects additional leasing in calendar year 2022 to materialize from the 2022
HAP set aside category that makes funds available to PHAs with lower-than-average leasing levels
for the purpose of increasing their leasing.
Based on the assumptions provided, the amounts in this budget will fund TBRA and Mainstream
Housing Assistance Payments (HAP) to PHAs at 100 percent proration in 2023, which will maintain
2 Effects of Housing Vouchers on Welfare Families
(https://www.huduser.gov/portal/publications/commdevl/hsgyouchers.html)
3 Family Options Study: Short-term Impacts of Housing Services Interventions for Homeless Families
(https://www.huduser.gov/portal/poital/sites/default/files/pd£'FamilvOptionsStudy final.pd!)
6-3
GAD 47-463 05/03/2022
30
TENANT-BASED RENTAL ASSISTANCE
current services for approximately 2. 3 million participants and expand housing assistance to
additional families, which is in alignment with HUD's 2022-23 priority goal to increase the
utilization of housing choice vouchers, including vouchers for special populations. The
Administrative Fee proration will be at 100 percent, which is critical for PHAs to continue sound
operations and program compliance. This will strengthen PHAs' capacity to recruit and retain
experienced personnel responsible for fundamental program activities such as admitting households,
conducting housing quality inspections, and completing tenant income certifications, as well as to
pay salaries and overhead costs incurred in managing the program.
HUD continues to take steps to improve the operations of the voucher program, enhance systems,
and streamline requirements to reduce burden on PHAs. The continued implementation of the
Economic Growth Act of 2018 and the Housing Opportunities Through Modernization Act of 2016
will provide PHAs with new flexibilities that will enable them to reduce administrative burden and
redirect those resources to improving performance and services. Through the development and
eventual deployment of Public Housing Information Center - New Generation (PIC-NG) and
National Standards for the Physical Inspection of Real Estate (NSPIRE) inspection standards, HUD
will modernize key systems and improve operation of the voucher program. Through the
implementation of the recommendations of the Landlord Task Force, HUD plans to enhance its
working relationship with private landlords, a key program stakeholder. HUD is also creating the
Enterprise Voucher Management System (eVMS), which will automate the workflow process for fund
allocation management, calculate the HAP funding requirement for each PHA, and improve data
stewardship. Improving these key business processes to create efficiencies will enable staff to focus
on HCV policy and finance issues and the expanding portfolio, which includes over 200,000 of
Project-Based Voucher units and 200,000 Special Purpose Vouchers units.
The 2023 Budget supports the Administration's priority of increasing access to affordable housing
and providing greater opportunities for economic independence to America's neediest families
through the provision of vouchers. This includes increasing the voucher utilization rate by
addressing the barriers families face when trying to find rental housing, such as source of income
discrimination, landlord participation, and rising rent costs. The 2023 Budget funding level will
advance housing equity and broaden the Federal housing safety net for people in need.
The 2023 requested funding levels and description for the major components of the HCV program to
achieve the above priorities are described below.
Contract Renewals - $26.2 billion
The 2023 President's Budget provides funding to renew expiring HCV program HAP contracts on a
calendar year basis. The requested funding level of $26.2 billion for contract renewals in the TBRA
account will cover the costs incurred from expected leasing increases in 2022. Of this amount, more
than $750 million will be used to renew more than 80,000 HUD-VASH vouchers for veterans, and up
to $5 million will be necessary to maintain current services for 360 Tribal HUD-VASH participants.
Since 2008, HUD has awarded $885 million in incremental funding to create more than 111,000 new
HUD-VASH vouchers to reduce veterans' homelessness and billions of dollars to renew these
vouchers over the same period. Contract renewals also include funding to renew TPVs and
$292 million to renew more than 21,000 FUP special purpose vouchers (SPVs) issued to families in
prior years, which PHAs must reissue only to qualifying participants upon turnover, either from
their waiting lists or referrals. In addition, the 2023 Budget includes new authority for HUD to offset
PHAs' contract renewal allocations and allocate the resulting budget authority to other PHAs with
the capacity to serve additional families.
6-4
GAD 47-463 05/03/2022
31
TENANT-BASED RENTAL ASSISTANCE
Rental Assistance Demonstration Conversion Subsidy - $50 million
HUD requests $50 million in the TBRA account, from within the $26.2 billion for Contract Renewals,
to support the cost-effective conversion of public housing properties that are unable to convert to
Section 8 using only the funds provided through existing appropriations. This request would permit
PHAs who want to participate in the Rental Assistance Demonstration (RAD) to convert
approximately 30,000 units and, in the process, holistically address critical property needs,
environmental hazards, energy inefficiencies, and increase housing choice for residents. Combined
with the $50 million requested in the PBRA account, this request would permit PHAs to generate an
estimated $1.8 billion in financing to re-invest in impacted communities or to bring deep rental
assistance into neighborhoods of opportunity.
The RAD conversion to PBRA and PBV is a powerful tool to secure the Federal safety net that has
preserved over 195,000 affordable homes thus far (157,400 in public housing and 37,600 in other
HUD rental programs). In addition, through RAD, PHAs and private owners have moved assisted
housing to lower-poverty neighborhoods, allowed residents to use tenant-based assistance if they
want to find new housing, and produced more energy efficient and climate resilient housing free of
environmental hazards. The outcomes associated within the converted public housing units are
particularly noteworthy:
• The PHAs' development teams have generated over $14 billion, or over $60,000 per home,
for the rehabilitation or redevelopment of modern, safe, and affordable housing for low-
income households. These teams have secured $14.83 for every $1 of appropriated public
housing funds contributed to project budgets.
• Over 21,000 of the most distressed public housing apartments have been demolished and
replaced with newly constructed homes, all meeting international standards for energy
efficiency.
• Over 9,000 homes have been moved away from detrimental environmental conditions,
floodplains, and opportunity deserts and into neighborhoods with greater access to jobs,
schools, and transportation.
• All properties have undergone an environmental review as a condition of conversion,
including evaluating, and where necessary mitigating, the presence of radon, lead,
asbestos, carbon monoxide, and mold.
• All properties have been evaluated for their energy and water efficiency and have
implemented cost-effective improvements to decrease their carbon footprint and operating
rental assistance properties carry financing issued by FHA.
• Over 250,000 jobs have been created, directly or indirectly, through RAD construction
activities, including many jobs for low-income-persons through HUD's Section 3
requirements.
There remain many public housing properties that are unable to leverage the public and private
capital needed for property improvements with subsidy levels based only on available appropriated
funds. The public housing capital backlog, together with additional modernization needs, require a
cost-effective, leveraged strategy to achieve a comprehensive modernization and these requests
advance those efforts. The funding request supports the cost-effective conversion of public housing
properties that are unable to convert using only the funds provided through existing appropriations.
Several of the general provisions requested (shown in the "Project-Based Rental Assistance"
justification) protect residents' access to services, provide an affordable housing preservation
strategy for additional portfolios of at-risk properties, provide technical capacity to support small
owners, and assure permanent affordability of converted properties blending RAD and Section 18
strategies.
6-5
GAD 47-463 05/03/2022
32
TENANT-BASED RENTAL ASSISTANCE
In addition, the Budget proposes ensuring continued availability of services for residents following a
RAD conversion to PBRA or PBV. This will guarantee that resident services funding awarded to
public housing properties prior to conversion may continue to operate fully and, as appropriate, be
eligible for renewal at the completion of the grant term. Additionally, this will also permit the full
implementation of the Jobs Plus Initiative program design following conversion of properties
benefiting from Jobs Plus program grants.
As part of the Administration's whole-of-government approach to the climate crisis, HUD's Budget
requests $1.065 billion to assist communities to reduce carbon pollution, increase resilience to the
impact of climate change, and deliver environmental justice. The National Climate Assessment has
shown that climate change disproportionately impacts low-income and disadvantaged communities,
the very communities and households served by HUD programs. HUD's Budget addresses climate
change on two fronts: both in tracking and lowering the carbon footprint and energy consumption of
the 4.5 million units of public and assisted housing, and at the same time helping the communities
served by HUD programs to better withstand and increase their resilience to future disasters. These
investments are crucial to assist communities throughout the country to mitigate and prepare for the
worst effects of climate change.
Please see the "Climate Initiative" justification for more details.
Administrative Fees - $3 billion
Administrative fees are a vital component of the HCV program, providing PHAs with the resources
necessary to administer the requested rental assistance for all assisted families. HUD requests
$3 billion in administrative fees for the HCV program, which would provide PHAs with 100 percent
of the funds for which they are eligible, compared to the roughly 80 percent that they have received
in recent years. HUD believes higher fees are necessary to support additional leasing and to advance
the administration's strategic goal of increasing access to affordable housing. These fees allow PHAs
to perform fundamental program responsibilities, such as admitting households, conducting housing
quality inspections, completing tenant income certifications, and paying salaries and over-costs
incurred in managing the HCV program.
Tenant Protection Vouchers - $220 million
Tenant Protection Vouchers are provided to families impacted by housing conversion actions beyond
their control, such as public housing demolition, disposition, or conversions, including RAD
conversions. They are also made available when private owners of multifamily developments choose
to leave the project-based rental assistance program or pre-pay their multifamily mortgages,
including USDA section 514 and 515 mortgages (see more information about this new proposal in the
Legislative Proposal section below), and to replace Moderate Rehabilitation contracts. Tenant
Protection Vouchers are a critical component to revitalizing public housing units. The estimated
number of TPV actions in 2023 is approximately 46,360 units. The requested funding level of
$220 million combined with 2022 carryover funds is sufficient to meet the estimated need.
Section 811 Mainstream Renewals - $667 million
Mainstream Renewals are contracts and administrative fees originally funded under the Section 811
Tenant-Based program. The Housing for Persons with Disabilities (Section 811) program provides
tenant-based assistance for persons with disabilities to access affordable, private housing of their
choice. The requested $667 million will support over 64,000 Mainstream voucher holders. The
requested funding also includes administrative fees for the renewed vouchers. This amount does not
include funding for new incremental vouchers in calendar year 2023. The requested funding is in
6-6
GAD 47-463 05/03/2022
33
TENANT-BASED RENTAL ASSISTANCE
alignment with the Administration's strategic goal of developing policy that aggressively enforces the
civil rights of people with disabilities, while expanding their access to accessible, integrated, and
affordable housing.
Mobility-Related Services - $445 million
Mobility-Related Services expand families' housing choices and improve their access to communities
with high-performing schools, better jobs, and higher-quality housing options. Children and parents
reap substantial benefits from living in resource-rich communities - for instance, the rigorous
Moving to Opportunity Demonstration found that such children are more likely to attend college. Yet
discrimination and other barriers have long hindered low-income families, particularly Black and
other families of color, from moving to such areas. The Budget requests $445 million to enable PHAs
to provide approximately 148,000 families with children with evidence-based Mobility-Related
Services, including robust housing search and security deposit assistance, help connecting with
schools, health services, and childcare, as well as to offer modest incentive payments to encourage
landlords to rent units to families with vouchers.
Incremental Vouchers - $1.6 billion
The Budget requests $1.6 billion for approximately 200,000 new "incremental" vouchers to expand
affordable housing and provide greater access to areas of opportunity. The new incremental vouchers
could target individuals and families that are experiencing or at-risk of homelessness and
individuals and families fleeing, or attempting to flee, domestic violence, dating violence, sexual
assault, or stalking.
The Continuums of Care (CoCs) report through the Point-in-Time (PIT) count of sheltered and
unsheltered homeless persons found that the number of people experiencing homelessness
nationwide increased by two percent between 2019 and 2020, marking the fourth consecutive year
that total homelessness has increased in the United States. The total number of people experiencing
homelessness on a single night in January 2020 is 580,466 and is largely driven by the increase in
the unsheltered homeless population. The 2020 Continuum of Care Homeless Assistance Programs
Homeless Populations Report also identuied 26,464 survivors of domestic violence in emergency
shelter, 6,231 in transitional housing, and an additional 15,837 unsheltered. 4 The last year in which
a full count was completed was 2020, due to the COVID-19 pandemic. The requested funding is in
alignment with the Administration's proposed goal to expand the safety net for homeless persons
and survivors of domestic violence, including access to affordable housing.
The demographics of the families participating in the HCV program demonstrate how essential this
program is to serve those most in need. The HCV program currently serves approximately
2.3 million families; seventy-six percent of program participants are people of color. The average
household size is 2.3 persons with an average household income of approximately $15,466.
Extremely low-income families (families earning less than thirty percent of an area's median income)
make up approximately seventy-eight percent of households served. More than half of households
are headed by seniors and people with disabilities, and forty percent include children. Twenty-nine
percent of households earn wages as their primary source of income, and the average household
monthly contribution towards rent (Total Tenant Payment) is $397. The chart below provides
additional insight into the demographics of the households that are currently supported by the
program.
4 HUD 2020 Continuum of Care Homeless Assistance Program Homeless Populations and Subpopulations
Report (https://files.hudexchange.info/reports/published/CoC PopSub NatlTerrDC 2020.pdf)
6-7
GAD 47-463 05/03/2022
34
TENANT-BASED RENTAL ASSISTANCE
Information Technology - Enterprise Voucher Management System
HUD continues to make progress towards modernizing its Information Technology (IT) systems to
improve the administration of TBRA programs. In coordination with the Office of the Chief
Information Officer and as part of the approved 2021 PIH IT Performance Plan, PIH is developing a
new system, the Enterprise Voucher Management System (EVMS). EVMS will automate the
calculation of funding and disbursements for most TBRA programs and associated Administrative
Fees using household level data, which will enable HUD to tie voucher payments directly to
household-level need calculations. EVMS will also enable HUD to auto-reconcile housing assistance
payment needs in near real time (within 2-3 days) for each PHA based on household-level changes
(e.g., rent changes, move-ins, move-outs, portability) consistent with cash management requirements
to calculate funding based on established need. Additionally, EVMS will provide substantial insight
into voucher utilization, which will enhance HUD's ability to promote leasing.
How many households and Whal are the
people are served? character!stks of the
This progr<1M sertes a demographic.a!lv diverse pcp,..tat1on. 75% of heads of household?
f1!::iidcrits a.re if' a mmo.ity iroup. Fema-te neaded:
5.2 mUtion people f1m1l!e-.; W\ln chtldrie1, JS%
2.3 mntlon households
How blg are !he hooseholds? How old are the heads of household? Whal is the share al rent
paid liy the tenant and
II I
HUD?
Average household
I contnbutio.'1
$397
Average HUD co11tribut1on
$819
How do househotd income1 compare to the foc~t area
What are the inc:orne levels or .assisted households.? median incom~?
TerHints make '3ll 8\'efai?;e gross: income of $15,.4-66. 78%
76% of households eorn $20.0CWJ or less pe( year 17%
Low ln.:om,e is~ to 80% AMl} .,.
Some percentage totals not equal to 100 due to rounding.
Source: HUD PlC and TRACS databases, December 2021 extract.
6-8
GAD 47-463 05/03/2022
35
TENANT-BASED RENTAL ASSISTANCE
SUMMARY OF RESOURCES BY PROGRAM
(DoUars in Thousands)
Contract Renewals 22,385,000 122,128 22,507,128 22,239,323 23,080,000 262,804 23,342,804 26,23.,\!:)_()
Contract Renew•ls
CARES Ac! 157,337 157,337 157,337
Adrn!nistrative Fees 2,159,000 140,917 2.299,917 2, 103,375 2, 1s_9"",o""oo"-+_""196=,54-"'2-+--"'2."'35"'5'cc54""2-+---"3'"-01'-'4"'"'00"'0'-,j
Administrative Fees
CARES Act
Contract Renewals-
Erner enc 695,000 695,000 695,000
Section 8 Rental Assistance 116,000 67,865 183,865 143,315 116,000 40,550 156,550 220,000
Veterans Affairs Supportive
Housing
VASH rom 40,000 55,236 95,238 46,825 40,000 48,412 88,412
Tribal HUD-VASH 6,986 6,986 4,292 7,693 7,693
Section 811 Mainstream
Renow&ls 314,000 247,218 561,218 427,869 314,000 133,349 447,349 667,000
R~nl•I A&>iilanca
Demonstration 74,231 60,458 68,772 68,772
F•mi~ Uniftcation Program
FUP) 25,000 20,616 45,616 18,105 25,000 27,511 52,511
Mobili Demonstration 50,000 50,000 45,730 4,269 4,269
Mobili SeNic,,s 445,000
Homelessness and
Domestic Violence Vouchers 43,439 43,439 43,439 43,439 86,878
Incremental Vouchers 1,550,00l
FSS Coordinator 26 26 26 26
Emergency Housing
l-!Vc:<ou,,,c"'he,,,_ro=A:oRPc_""Ac,,,t'------l----'4,c:,17'-"7"',0"'-00'--+---4--'4,_;_17'-'7-"',0""00'--+_--'7:cS:c,6,4-"5'-'-1-+-----+---'3"',390,549 ____ 3,390,,.,5'-'4-"9_,__ _ _-<
Administrative Fees ARP Act 603.000 603,000 356,911 246,089 246,089
Allocation Adjuatmenlo i'.>r
CY 2022 'ARP Act 200,000 200,000 15,631 184,369 184,369
Total 30,757,439 942,560 31,699,999 27,100,622 ,,]§,7_17,439 4,654,374 30,431,813 32,130,000
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
Tenant-Based Rental Assistance accommodates Jobs Plus rent incentive: The costs associated with
any forgone increases in tenant rent payments due to the implementation of rent incentives as
authorized pursuant to waivers or alternative requirements of the Jobs-Plus initiative shall be
renewed.
Provide capacity support for small properties and owners converting through RAD: Owners of small
properties, including those assisted under Section 202 PRAC and Section 8 Mod Rehab, sometimes
6-9
GAD 47-463 05/03/2022
36
TENANT-BASED RENTAL ASSISTANCE
struggle with the cost and complexity of certain underwriting requirements that HUD has
established to ensure that the property will be physically sound and free of environmental hazards.
This proposal would authorize the use of Participating Administrative Entities (PAEs), originally
used in the Mark-to-Market program, to conduct the property level due diligence, including Capital
Needs Assessments and environmental reports, that are required of all RAD conversions. They
would provide significant relief for owners of small properties, where the cost of such due diligence is
often prohibitive to taking the necessary steps to improve the property for residents. These small
properties are often in underserved communities and this authority will assist in long-term
preservation and affordable housing opportunities.
Funding Reallocation to Improve Leasing: HUD requests authority to offset the renewal funding
allocations for PHAs with excess reserves and reallocate the resulting budget authority to PHAs that
have capacity to lease up additional vouchers. HUD also requests authority to reallocate authorized
units (UMAs) from PHAs that have a demonstrated history of under-leasing to high-capacity PHAs
leasing at or close to authorized levels. In reallocating funds and units, neighboring PHAs with
additional capacity would receive priority to receive additional funds/units, and HUD would also give
preference to PHAs with previous renewal funding offset due to excessive reserves, that have
demonstrated increased capacity through improved voucher utilization following the offset.
Family Unification Program (FUP), Foster Youth Initiative (FYl). and Mainstream Administrative
Flexibilities; HUD requests language that would provide statutory flexibilities for FUP, FYl, and
Mainstream programs such as separate waiting lists, time necessary for lease up, reduced screening
criteria, and direct referrals from supportive service agencies. HUD further requests language that
would provide statutory flexibilities for PHAs to allow FUP, FYl, and Mainstream programs the
flexibility to adopt a 90- to 120-day referral timeline. It is difficult for youths and disabled families
and individuals to find units that are available for lease within the current 90-day timeframe, which
increases the risk that such persons would experience homelessness. Thus, this extended referral
timeline would allow more people more time to enter these programs.
Tenant Protection Voucher Assistance: The 2023 President's Budget for the U.S. Department of
Agriculture (USDA) requests language that would decouple USDA section 521 rental assistance from
existing USDA section 514 or 515 multifamily loans on assisted properties, allowing some properties
to continue to receive section 521 project-based assistance after their loan is paid off. However, not
all properties may qualify for such assistance, so the Budget assumes HUD, rather than USDA's
Rural Development Voucher (RDV) program, will issue vouchers for units that USDA is unable to
preserve. Therefore, HUD requests authority to use up to $20 million to provide replacement Tenant
Protection Vouchers (TPV) to low-income tenants referred by the Secretary of USDA when Section
521 assistance is no longer available to protect the tenants due to maturity, prepayment, or
foreclosure of a loan made under Section 514 or 515 covering the USDA development. This request
will cover approximately 1,800 units currently supported by USDA. Families currently assisted by
USDA through the RDV program would not be eligible for these TPVs.
General Provisions
Mod Rehab Properties to Project Based Voucher (PBV) Conversion: HUD requests a general
provision that would apply a limited timeframe to an owner's statutory right to renew their Mod
Rehab contract under the Multifamily Assisted Housing Reform and Affordability Act of 1997
(MARRA) to encourage the owner to convert to PBV or PERA assistance under existing Rental
Assistance Demonstration (RAD) authority. Encouraging owners to convert to PBV or PERA
assistance under existing RAD authority will help HUD phase out the Mod Rehab program, which
was repealed by the Cranston-Gonzalez National Affordable Housing Act in 1991 (2023 President's
Budget, Sec. 236).
6-10
GAD 47-463 05/03/2022
37
TENANT-BASED RENTAL ASSISTANCE
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes to the HCV
program through the authorization process:
Repair Timeframe Flexibility for Housing Choice Voucher (HCV): HUD requests language that
would provide HUD the authority to adjust timelines for non-life-threatening repairs under the HCV
program and align inspection requirements across HUD programs, as is intended by the National
Standards for the Physical Condition of Real Estate (NSPIRE).
Pre-Qualifying Unit Inspections: HUD requests language to allow PHAs with high HCV utilization
rates to conduct pre-qualifying inspections or "pre-inspections" for units not actively linked to a
specific HCV family.
Triennial Recertification to Promote Family Wealth Building: HUD requests language that would
provide the Department with the discretion to allow PHAs to implement triennial recertification of
income, such as is currently available to PHAs for fixed-income families, instead of annual or
biennial. Triennial recertifications of income would promote family wealth building.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes proposed changes in appropriation language listed below.
For activities and assistance for the provision of tenant-based rental assistance authorized under the
United States Housing Act of 1937, as amended (42 U.S.C. 1437 et seq.) (in this title "the Act'?, not
otherwise provided for $28,130,000,000, to remain available until expended, which shall be available
on October 1, 2022 (in addition to the $4,000,000,000 previously appropriated under this heading that
shall be available on October 1, 2022), and $4,000,000,000, to remain available until expended, which
shall be available on October 1, 2023: Provided, That the amounts made available under this heading
are provided as follows:
(1) $26,234,000,000 shall be available for renewals of expiring section 8 tenant-based annual
contributions contracts (including renewals of enhanced vouchers under any provision of law
authorizing such assistance under section 8(t) of the Act) and including renewal of other special
purpose incremental vouchers: Provided, That notwithstanding any other provision of law, from
amounts provided under this paragraph and any carryover, the Secretary for the calendar year 2023
funding cycle shall provide renewal funding for each public housing agency based on validated
voucher management system (VMS) leasing and cost data for the prior calendar year and by applying
an inflation factor as established by the Secretary, by notice published in the Federal Register, and by
making any necessary adjustments for the costs associated with the first-time renewal of vouchers
under this paragraph including tenant protection and Choice Neighborhoods vouchers: Provided
further, That costs associated with any forgone increases in tenant rent payments due to the
implementation of rent incentives as authorized pursuant to waivers or alternative requirements of
the Jobs-Plus initiative as described under the heading "Self-Sufficiency Programs" shall be renewed:
Provided further, That the Secretary shall, to the extent necessary to stay within the amount specified
under this paragraph (except as otherwise modified under this paragraph), prorate each public
housing agency's allocation otherwise established pursuant to this paragraph: Provided further, That
except as provided in the following provisos, the entire amount specified under this paragraph (except
as otherwise modified under this paragraph) shall be obligated to the public housing agencies based
6-11
GAD 47-463 05/03/2022
38
TENANT-BASED RENTAL ASSISTANCE
on the allocation and pro rota method described above: Provided further, That the Secretary may
extend the notification period with the prior written notification to the House and Senate Committees
on Appropriations: Provided further, That public housing agencies participating in the MTW
demonstration shall be funded in accordance with the requirements of the MTW demonstration
program or their MTW agreements, if any, and shall be subject to the same pro rata adjustments
under the previous provisos: Provided further, That the Secretary may offset public housing agencies'
calendar year 2023 allocations based on the excess amounts of public housing agencies' net restricted
assets accounts, including HUD-held programmatic reserves (in accordance with VM"S data in
calendar year 2022 that is verifiable and complete), as determined by the Secretary: Provided further,
That public housing agencies participating in the MTW demonstration shall also be subject to the
offset, as determined by the Secretary, from the agencies' calendar year 2023 MTW funding allocation:
Provided further, That the Secretary shall use any offset referred to in the previous two provisos
throughout the calendar year to prevent the termination of rental assistance for families as the result
of insufficient funding, as determined by the Secretary, to avoid or reduce the proration of renewal
funding allocations, and to enable public housing agencies operating their existing housing choice
voucher programs with high utilization rates and a demonstrated capacity to serve additional
families, as determined by the Secretary, to assist more families: Provided further, That the Secretary
may also reallocate authorized units from public housing agencies with a history of significant under-
leasing and utilization to public housing agencies that meet the requirements of the previous proviso
to receive funds to assist more families and that have under lease all, or nearly all, of their authorized
units: Provided further, That such reallocations shall be made in accordance with terms and
conditions established by the Secretary by notice: Provided further, That the Secretary may utilize
unobligated balances, including recaptures and carryover, remaining from prior year appropriations
(excluding special purpose vouchers), notwithstanding the purposes for which such amounts were
appropriated, to avoid or reduce the proration of renewal funding allocations: Provided further, That
up to $100,000,000 shall be available only: (1) for adjustments in the allocations for public housing
agencies, after application for an adjustment by a public housing agency that experienced a
significant increase, as determined by the Secretary, in renewal costs of vouchers resulting from
unforeseen circumstances or from portability under section 8(r) of the Act; (2) for vouchers that were
not in use during the previous 12-month period in order to be available to meet a commitment
pursuant to section 8(0)(13) of the Act, or an adjustment for a funding obligation not yet expended in
the previous calendar year for a MTW eligible activity to develop affordable housing for an agency
added to the MTW demonstration under the expansion authority provided in section 239 of the
Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2016
(division L of Public Law 114-113); (3) for adjustments for costs associated with HUD-Veterans
Affairs Supportive Housing (HUD-VASH) vouchers; (4) for public housing agencies that despite
taking reasonable cost savings measures, as determined by the Secretary, would otherwise be required
to terminate rental assistance for families as a result of insufficient funding; (5) for adjustments for
withheld payments for months in the previous calendar year that were subsequently paid by the
public housing agency after the agency's actual costs were validated; and (6) for public housing
agencies that have experienced increased costs or loss of units in an area for which the President
declared a disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5170 et seq.): Provided further, That the Secretary shall allocate amounts under the
previous proviso based on need, as determined by the Secretary: Provided further, That of the total
amount provided under this paragraph, up to $50,000,000 shall be available to supplement funds
transferred from the heading "Public Housing Fund" to fund contracts for properties converting from
assistance under Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) under the
heading "Rental Assistance Demonstration" in title II of the Transportation, Housing and Urban
Development, and Related Agencies Appropriations Act, 2012 (division C of Public Law 112-55) to
6-12
GAD 47-463 05/03/2022
39
TENANT-BASED RENTAL ASSISTANCE
further long-term financial stability and promote the energy or water efficiency, climate resilience, or
preservation of such properties; Provided further, That the amounts under the previous proviso may
also be available, without additional competition, for cooperative agreements with Participating
Administrative Entities that have been previously or newly selected under section 513(b) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437/ note) to provide
direct support, including carrying out due diligence and underwriting functions for owners and for
technical assistance activities, on conditions established by the Secretary for small properties and
owners entering into any conversion contract under the First Component;
(2) $220,000,000 shall be for section 8 rental assistance for relocation and replacement of housing
units that are demolished or disposed of pursuant to section 18 of the Act, conversion of section 23
projects to assistance under section 8, the family unification program under section 8(x) of the Act,
relocation of witnesses (including victims of violent crimes) in connection with efforts to combat crime
in public and assisted housing pursuant to a request from a law enforcement or prosecution agency,
enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the
Act, Choice Neighborhood vouchers, mandatory and voluntary conversions, and tenant protection
assistance including replacement and relocation assistance or for project-based assistance to prevent
the displacement of unassisted elderly tenants currently residing in section 202 properties financed
between 1959 and 1974 that are refinanced pursuant to Public Law 106---569, as amended, or under
the authority as provided under this Act: Provided, That up to $20,000,000 of the amounts made
available under this paragraph may be to provide replacement tenant protection assistance to low-
income tenants assisted under section 521 of title Vo/the Housing Act of 1949 (42 U.S.C. 1471 et
seq.), upon the determination and referral by the Secretary of the Department of Agriculture that
section 521 assistance is no longer available to protect such tenants due to maturity, prepayment, or
foreclosure of loans under section 514 or section 515 of such Act (42 U.S.C. 1484 and 1485): Provided
further, That when a public housing development is submitted for demolition or disposition under
section 18 of the Act, the Secretary may provide section 8 rental assistance when the units pose an
imminent health and safety risk to residents: Provided further, That the Secretary may provide
section 8 rental assistance from amounts made available under this paragraph for units assisted
under a project-based subsidy contract funded under the "Project-Based Rental Assistance" heading
under this title where the owner has received a Notice of Default and the units pose an imminent
health and safety risk to residents: Provided further, That to the extent that the Secretary determines
that such units are not feasible for continued rental assistance payments or transfer of the subsidy
contract associated with such units to another project or projects and owner or owners, any remaining
amounts associated with such units under such contract shall be recaptured and such recaptured
amounts, in an amount equal to the cost of rental assistance provided pursuant to the previous
proviso, up to the total amounts recaptured, shall be transferred to and merged with amounts under
this paragraph: Provided further, That of the amounts made available under this paragraph, no less
than $5,000,000 may be available to provide tenant protection assistance, not otherwise provided
under this paragraph, to residents residing in low vacancy areas and who may have to pay rents
greater than 30 percent of household income, as the result of: (A) the maturity of a HUD-insured,
HUD-held or section 202 loan that requires the permission of the Secretary prior to loan prepayment;
(B) the expiration of a rental assistance contract for which the tenants are not eligible for enhanced
voucher or tenant protection assistance under existing law; or (C) the expiration of affordability
restrictions accompanying a mortgage or preservation program administered by the Secretary:
Provided further, That such tenant protection assistance made available under the previous proviso
may be provided under the authority of section 8(t) or section 8(0)(13) of the Act: Provided further,
That any tenant protection voucher made available from amounts under this paragraph shall not be
reissued by any public housing agency, except the replacement vouchers as defined by the Secretary by
6-13
GAD 47-463 05/03/2022
40
TENANT-BASED RENTAL ASSISTANCE
notice, when the initial family that received any such voucher no longer receives such voucher, and the
authority for any public housing agency to issue any such voucher shall cease to exist: Provided
further, That the Secretary may only provide replacement vouchers for units that were occupied
within the previous 24 months that cease to be available as assisted housing, subject only to the
availability of funds;
(3) $3,014,000,000 shall be for administrative and other expenses of public housing agencies in
administering the section 8 tenant-based rental assistance program, of which up to $10,000,000 shall
be available to the Secretary to allocate to public housing agencies that need additional funds to
administer their section 8 programs, including fees associated with section 8 tenant protection rental
assistance, the administration of disaster related vouchers, HUD-VASH vouchers, and other special
purpose incremental vouchers: Provided, That no less than $3,004,000,000 of the amount provided in
this paragraph shall be allocated to public housing agencies for the calendar year 2023 funding cycle
based on section 8(q) of the Act (and related Appropriation Act provisions) as in effect immediately
before the enactment of the Quality Housing and Work Responsibility Act of 1998 (Public Law 105--
276): Provided further, That if the amounts made available under this paragraph are insufficient to
pay the amounts determined under the previous proviso, the Secretary may decrease the amounts
allocated to agencies by a uniform percentage applicable to all agencies receiving funding under this
paragraph or may, to the extent necessary to provide full payment of amounts determined under the
previous proviso, utilize unobligated balances, including recaptures and carryover, remaining from
funds appropriated to the Department of Housing and Urban Development under this heading from
prior fiscal years, excluding special purpose vouchers, notwithstanding the purposes for which such
amounts were appropriated: Provided further, That all public housing agencies participating in the
MTW demonstration shall be funded in accordance with the requirements of the MTW demonstration
program or their MTW agreements, if any, and shall be subject to the same uniform percentage
decrease as under the previous proviso: Provided further, That amounts provided under this
paragraph shall be only for activities related to the provision of tenant-based rental assistance
authorized under section 8, including related development activities;
(4) $667,000,000 for the renewal of tenant-based assistance contracts under section 811 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), including necessary
administrative expenses: Provided, That up to $10,000,000 shall be available only (1) for adjustments
in the allocation for public housing agencies, after applications for an adjustment by a public housing
agency that experienced a significant increase, as determined by the Secretary, in Mainstream
renewal costs resulting from unforeseen circumstances, and (2) for public housing agencies that
despite taking reasonable cost saving measures, as determined by the Secretary, would otherwise be
required to terminate the rental assistance for Mainstream families as a result of insufficient funding:
Provided further, That the Secretary shall allocate amounts under the previous proviso based on need,
as determined by the Secretary: Provided further, That upon turnover, section 811 special purpose
vouchers funded under this heading in this or prior Acts, or under any other heading in prior Acts,
shall be provided to non-elderly persons with disabilities;
(5) Of the amounts provided under paragraph (1) up to $5,000,000 shall be for rental assistance and
associated administrative fees for Tribal HUD-VASH to serve Native American veterans that are
homeless or at-risk of homelessness living on or near a reservation or other Indian areas: Provided,
That such amount shall be made available for renewal grants to recipients that received assistance
under prior Acts under the Tribal HUD- VASH program: Provided further, That the Secretary shall be
authorized to specify criteria for renewal grants, including data on the utilization of assistance
reported by grant recipients: Provided further, That such assistance shall be administered in
6-14
GAD 47-463 05/03/2022
41
TENANT-BASED RENTAL ASSISTANCE
accordance with program requirements under the Native American Housing Assistance and Self-
Determination Act of 1996 and modeled after the HUD-VASH program: Provided further, That the
Secretary shall be authorized to waive, or specify alternative requirements for any provision of any
statute or regulation that the Secretary administers in connection with the use of funds made
available under this paragraph (except for requirements related to fair housing, nondiscrimination,
labor standards, and the environment), upon a finding by the Secretary that any such waivers or
alternative requirements are necessary for the effective delivery and administration of such assistance:
Provided further, That grant recipients shall report to the Secretary on utilization of such rental
assistance and other program data, as prescribed by the Secretary: Provided further, That the
Secretary may reallocate, as determined by the Secretary, amounts returned or recaptured from
awards under the Tribal HUD- VASH program under prior Acts to existing recipients under the
Tribal HUD-VASH program;
(6) $1,550,000,000 shall be made available for new incremental voucher assistance under section 8(0)
of the Act, to be allocated pursuant to a method, as determined by the Secretary, which may include a
formula that may include such factors as severe cost burden, overcrowding, substandard housing for
very low-income renters, homelessness, and administrative capacity, where such allocation method
shall include both rural and urban areas: Provided, That the Secretary may specify additional terms
and conditions to ensure that public housing agencies provide vouchers for use by survivors of
domestic violence, dating violence, sexual assault, stalking, or human trafficking, or individuals and
families who are homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11302(a)), or at risk of homelessness, as defined in section 401(1) of such Act (42 U.S.C.
11360(1));
(7) $445,000,000 shall be for mobility-related services, as defined by the Secretary, for voucher
families with children modeled after services provided in connection with the mobility demonstration
authorized under section 235 of division G of the Consolidated Appropriations Act, 2019 (42 U.S.C.
1437f note; Public Law 116--6): Provided, That the Secretary shall make funding available to public
housing agencies on a competitive basis and shall give preference to public housing agencies with
higher concentrations of voucher families with children residing in high-poverty neighborhoods:
Provided further, That the Secretary may recapture from the public housing agencies unused balances
based on utilization of such awards and reallocate such amounts to any other public housing agency
or agencies based on need for such mobility-related services as identified under such competition; and
(8) the Secretary shall separately track all special purpose vouchers funded under this heading:
Provided, That the Secretary may waive, or specify alternative requirements for, any provision of any
statute or regulation that the Secretary administers in connection with the use of funds made
available for new incremental voucher assistance or renewals for the Mainstream program, the HUD-
VASH program (in consultation with the Secretary of the Department of Veterans Affairs), and the
family unification program (including the Foster Youth to Independence program) in this and prior
Acts (except for requirements related to fair housing, nondiscrimination, labor standards, and the
environment), upon a finding by the Secretary that any such waivers or alternative requirements are
necessary for the effective delivery and administration of voucher assistance in such respective
programs.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
6-15
GAD 47-463 05/03/2022
42
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Public Housing Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
2022 Annualized CR 7,806,000 451,065 8,257,065 7,721,000 5,743,000
2023 President's Budget 8,780,000 441,000 9,221,000 8,694,000 6,902,000
Change from 2022 974,000 (10,065) 963,935 973,000 1,159,000
al Canyover into 2021 is shown net $119 mitlion transferred for subsidy payments for units converting under the Rental Assistance Demonstration (RAD)
bl Canyover for 2022 is shown net of $85 million estimated to be transferred for RAD.
cl Canyoverfor 2023 includes an estimated $536 million of unobligated balances and the estimated projected transfers of $86 million for RAD and
$9 million for the IT Fund.
PROGRAM PURPOSE
The Public Housing Fund supports the Public Housing program by providing Federal grants
necessary for Public Housing Agencies (PHAs) to operate, maintain, and make capital improvements
to approximately 935,000 affordable public housing units which house over L 7 million residents. The
public housing stock serves an important role in the Nation's housing market by providing housing
for some of the most vulnerable families. Local administration of Federal grant funds allows
communities the flexibility to tailor public housing to suit local needs, including establishing
admission preferences for the elderly, disabled, and homeless persons, as well as the working poor.
BUDGET OVERVIEW
The 2023 President's Budget requests $8.8 billion for the Public Housing Fund, which is $974 million
more than the 2022 annualized CR level. The Budget supports the following activities:
• $8.2 billion for Public Housing Fund grants, of which $5.0 billion is distributed based on the
Public Housing Operating Fund formula and $3.2 billion is distributed based on the Public
Housing Capital Fund formula;
• $60 million for Housing Health Hazards;
• $25 million for Lead-Based Paint Hazards;
• $20 million for Emergency and Disaster grants;
• $20 million for Safety and Security grants;
• $45 million for Receivership, Troubled and High-Risk PHAs;
• $25 million for Operating Shortfall Prevention;
• $50 million for Financial and Physical Assessment Support; and
• $300 million for energy efficiency and climate resilience, of which $276 million is intended
for the Public Housing Rapid Return Utility Conservation and Climate Resilience Program
and $24 million to promote and implement utilities benchmarking across the public housing
portfolio.
As part of the Administration's whole-of-government approach to the climate crisis, HUD's Budget
includes $1.065 million to assist communities to reduce carbon pollution, increase resilience to the
impact of climate change, and deliver environmental justice. The National Climate Assessment has
7-1
GAD 47-463 05/03/2022
43
PUBLIC HOUSING FUND
shown that climate change disproportionately impacts low-income co=unities, the very
communities served by HUD programs. The Budget addresses climate change on two fronts:
lowering the carbon footprint of the 4.5 million units of public and assisted housing (mitigation),
and helping the communities served by HUD programs to better withstand and increase their
resilience to future disasters (adaptation). These investments are crucial to help communities
mitigate and prepare for the worst effects of climate change. Please see the "Climate Overview"
justification for more details.
Housing-related challenges can trigger significant mental health distress. Training and technical
assistance resources available in this account will be used to support HUD's department-wide effort
to reduce the impacts of housing-related challenges on mental and emotional well-being and improve
the experience of the Department's customers. HUD will coordinate validated, evidence-based
training for front-line housing professionals on the signs and symptoms of emotional distress and
mental health challenges. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
JUSTIFICATION
The Public Housing Fund provides payments to nearly 3,000 PHAs for the operation, management,
maintenance, and capital needs of publicly owned affordable rental housing throughout the United
States and its territories. The Public Housing Fund is allocated as grants to support operations
awarded pursuant to Section 9(e) of the United States Housing Act of 1937 and grants to support
capital needs awarded pursuant to Section 9(d) of the Act.
The Public Housing program is a vital part of the Nation's critical infrastructure. Operating housing
and investing in modernization are demonstrated economic generators. Additionally, through
investments in energy conservation and climate resilience measures - both through regular
modernization activities and through energy incentives, like energy performance contracts and rate
reduction incentives -the program supports the goal of reducing the Nation's reliance on fossil fuels
and serves to reduce HUD's carbon footprint. Investing in public housing is also crucial to reversing
the negative impacts of racism and discrimination in access to quality, affordable housing. Black,
Latino, Native American, and Asian families make up over two-thirds of people living in public
housing. Eliminating health hazards like lead and mold, improving heating and cooling systems, and
upgrading building amenities like elevators and broadband access are essential to giving households
a stronger foundation for their health, education, and employment success. Finally, through regular
capital investments, ongoing maintenance efforts, and strategic funding available through targeted
set-asides, the Public Housing program serves to ensure that HUD and PHAs are meeting the
important goal of providing a healthy and safe living environment to the families living in public
housing.
The Public Housing program has long been vital to the Federal housing safety net, and it has been
especially important as the COVID-19 pandemic exacerbated the lack of stable affordable rental
housing. The Public Housing Fund enables the preservation of housing for low- and extremely low-
income families who cannot afford housing on the private rental market. For these families, public
housing offers an affordable, stable platform to access other resources and supports to improve
economic and social mobility.
Grants Awarded for Operations
Public Housing grants are the only dedicated Federal resource available to PHAs to operate and
maintain the Nation's public housing stock. PHA eligibility for an operating grant is based on the
Operating Fund formula established through negotiated rulemaking in 2007 and codified at 24 CFR
7-2
GAD 47-463 05/03/2022
44
PUBLIC HOUSING FUND
990. This funding covers day-to-day operational expenses associated with public housing and
program implementation expenses that PHAs are required to undertake under Section 9(e) of the
U.S. Housing Act of 1937 and existing program regulations.
These expenses include, but are not limited to:
Public Housing Operation:
• Management and operations, including staff costs;
• Operating costs for privately owned public housing units in mixed finance projects;
• Routine and preventative maintenance;
• Anti-crime, anti-drug, and security activities;
• Utilities costs;
• Resident supportive services, support coordinators, and participation activities; and
Insurance.
Public Housing Program Implementation:
• Recertifications of income and household composition;
• Timely rent collection;
• Submission of annual unaudited and audited financial statements to HUD;
• Asset management over the physical and financial integrity of the program;
• Annual unit inspections;
• Planning for the long-term capital needs to maintain the viability of PHA properties; and
• Debt service incurred to finance unit rehabilitation and development.
The Budget proposes operating grants in the amount of $5.0 billion. Funding at this level is projected
to be sufficient to cover 100 percent of public housing operating expenses.
2023 OPERATING FUND ELIGIBILITY
!Dollars in Thousandsl
Actual Estimate Estimate
Description FY 2021 FY 2022 FY2023
1 Non-Utilily Expense Level (PEL) $5,230,829 $5,326,705 $5,331,665
2 Utilities $1,484,643 $1,523,778 $1,510,462
3 Less· Tenant Income -52,830,858 -$2,874,417 -S2,884.724
4 Public Housing Operating Fund Base (line 1-3) $3,884,613 $3,976,066 $3,957,403
5 MTW Alternative Formula Grant, PHA's not in Base $519,631 $531,172 $542,969
6 Public Housing Add-ons 0 0 0
7 Elderly/Disabled Coordinators $15,520 $15,991 $16,388
B Resident Participation $21,516 $21,262 $20,766
9 Energy-Add On for Loan Amortization $40,903 $42,147 $43,192
10 Payments in Lieu of Taxes $166,956 $172,032 $176,298
11 Cost of Independent Audit $24,641 $25,390 $26,019
12 Asset Management Fee $32,487 $32,104 $31,356
13 Information Technoklgy Fee $22,139 $21,877 $21,368
14 Asset Repositkming Fee $64,230 $66,183 $67,824
15 Mutual Help and Turnkey Units $7 $7 $7
7-3
GAD 47-463 05/03/2022
45
PUBLIC HOUSING FUND
16 Estimated Appeals $10,000 $10,000 $10,000
17 Stop Loss $125,755 $124,270 $121,376
18 Subtotal: Operating Fund Base (line 4-19) $4,928,397 $5,038,500 $5,034,967
Information Technology - Operating Fund Portal
HUD continues to make progress towards modernizing its Information Technology (IT) systems to
improve the administration of Public Housing programs. In coordination with the Office of the Chief
Information Officer (OCIO), PIH is continuing to develop new functionality within the Operating
Fund Portal (Op Fund Portal), which will help reduce the administrative burden on PHAs when
requesting Operating Funds and HUD processing of these requests and calculation of Operating
Fund grants. Specifically, PIH IT modernization funding provided in the Consolidated
Appropriations Act, 2021 (the 2021 Appropriations Act) for the OpFund Portal will enable the
automation of the pre-population of Operating Fund requests and the submission and review of these
requests, ultimately replacing approximately 14,000 manual Operating Fund forms each year. The
Operating Fund Portal also substantially automates many other aspects of the funding process for
both PHAs and HUD.
Grants Awarded for Capital Needs
Public Housing grants are the primary source of funding for public housing rehabilitation and
development. The Budget provides $3.2 billion for grants to be awarded pursuant to the Capital
Fund Formula enumerated at 24 CFR 905.400. This proposed amount represents a 16 percent
increase above the 2022 annualized CR level and approaches the estimated level (as of 2010)
required to satisfy the annual accrual amount.
Eligible uses of capital grants include, but are not limited to:
• Addressing deferred maintenance needs;
• Development, financing, and rehabilitation activities;
• Vacancy reduction;
• Resident relocation;
• Programs supporting economic self-sufficiency of public housing residents;
• Resident security and safety activities;
• Homeownership activities;
• Integrated utility management and energy saving measures; and
• Debt service.
The most recent portfolio-wide Capital Needs Assessment (CNA), completed in 2010, estimated the
backlog of unmet public housing capital need at approximately $26 billion. The projected annual
accrual of needs across the inventory was estimated to be at least $3.4 billion per year on average at
that time. Since the 2010 study, the Public Housing Capital Fund grant program has not been
funded at the annual accrual need estimated in 2010, much less the increased need caused by
inflation in construction and modernization costs over time. Although the public housing inventory
has been reduced and many units have been rehabilitated since 2010, the financial impact of
inflation and deferrnd capital investment in the public housing inventory are substantially greater
than any decrease in need associated with the units that have left the inventory or have since been
revitalized. HUD is currently engaging with a contractor on a portfolio-wide study that assesses (1)
the usefulness of underlying capital needs data available to HUD and PHAs; (2) how PHAs estimate
capital needs and best practices employed in doing so; and (3) estimates the nationwide capital needs
of public housing, while recommending future estimation methods.
7-4
GAD 47-463 05/03/2022
46
PUBLIC HOUSING FUND
Public Housing grants remain essential to achieving HUD's goals related to improving the quality of
public housing, increasing occupancy in public housing, decreasing energy costs, and maximizing
Federal resources.
• Improving the quality of Public Housing. More than half of the Nation's public housing stock was
constructed prior to 1970, some as early as 1936. As a result, these units require significant
rehabilitation work to bring them into a condition that is safe, decent, and sustainable.
• Increasing occupancy in Public Housing. The occupancy of public housing units has decreased to
94 percent, and HUD's goal is to improve upon that occupancy rate to 96 percent by the end of
2022. HUD is focused on the challenge of preserving the availability of quality affordable rental
housing in order to provide necessary housing for low-income families to improve their lives,
preventing homelessness and reducing worst-case housing needs.
• Investing in Public Housing. Investing in public housing addresses racial inequities, as over two-
thirds of public housing residents are people of color. The Budget proposes historic investments
that will reduce carbon emissions and increase the climate resilience of the public housing stock,
while improving indoor air quality and creating healthier and safer homes for the families that
live there.
• Decreasing utility consumption and costs. As part of the Administration's whole-of-government
approach to address the climate crisis, the Department is improving utility conservation options
through targeted set-asides to support investments in energy conservation measures and
utilities benchmarking activities. Public Housing grants provide PHAs with the necessary
resources to increase utility conservation as they modernize their inventory.
• Addressing Capital Needs. Given the current Federal fiscal environment, PHAs must leverage
outside investment, since they cannot meet their needs by using only Federal funds. The Rental
Assistance Demonstration (RAD) and the Capital Fund Financing Program (CFFP) help achieve
this goal. Since its inception in 2012, the RAD program has converted approximately 157,000
public housing units while generating over $14 billion in resources to meet modernization needs
for the converted units. HUD has approved approximately 196 transactions involving 253 PHAs
through the CFFP. The total amount of loan and bond financing approved to date is
approximately $4. 7 billion since the CFFP program's inception in 1999. The CFFP has evolved
such that PHAs are further leveraging their Capital Fund dollars by utilizing the CFFP to obtain
Low-Income Housing Tax Credits. Approximately $2.5 billion worth of tax credits have been
leveraged using CFFP funds.
The Department will continue to use its statutory authority under the Consolidated and Further
Continuing Appropriations Act of 2012 (Public Law 112-55) to transfer amounts from the 2023
Operating and Capital Fund appropriations to the Tenant-Based Rental Assistance (TBRA) and
Project-Based Rental Assistance (PBRA) accounts to fund renewal costs for public housing units
converting under RAD in calendar year 2022.
Public Housing Grants for Housing Health Hazards
The Budget proposes $60 million in funding to PHAs for competitive grants to help PHAs identify
and eliminate housing-related hazards in public housing, such as mold, carbon monoxide, pest
infestation, radon, and other housing hazards. The Department intends to prioritize funding
requests to enhance fire safety, including the funding of fire suppression systems such as fire
sprinkler systems for multifamily buildings. Improving the environmental conditions and safety of
public housing are environmental justice priorities as they improve residents' health and safety.
While many of these deficiencies are identified by the Real Estate Assessment Center (REAC) in
physical needs assessments, PHAs would benefit from dedicated funds for evaluation and mitigation.
Evaluations will include comprehensive assessments of fire hazards, moisture intrusion, ventilation,
7-5
GAD 47-463 05/03/2022
47
PUBLIC HOUSING FUND
and other structural defects that can contribute to unhealthy or unsafe conditions. These repairs can
help reduce allergies and asthma exacerbation in residents, especially children, and help prevent
injury and death.
Public Housing Grants for Lead-Based Paint Hazards
The Budget includes $25 million to support competitive grant funding to address health
hazards from lead-based paint in public housing units. Funding for the determination and
remediation of health hazards related to lead-based paint remains a critical need. Most public
housing units were constructed prior to 1978 and have extensive potential for lead-based painted
surfaces. These grants are a successful tool to advance the health and welfare of public housing
residents nationwide, particularly for children under the age of six who are most at risk of suffering
the devastating effects oflead poisoning.
Public Housing Grants for Emergencies and Natural Disasters
The Budget includes up to $20 million for grants to PHAs for capital needs arising from emergency
situations or non-Presidentially-declared natural disasters. (PHAs whose properties suffer damage
because of Presidentially-declared natural disasters are eligible to receive funding from the Federal
Emergency Management Agency, or FEMA, under the Robert T. Stafford Relief Act.) Examples of
capital needs funded under grants for non-Presidentially-declared disasters and other emergencies
include plumbing replacement, sewer line replacement, foundation stabilization, heating,
ventilation, and air conditioning (HVAC) replacement, fire alarm replacement, flood abatement,
mold removal/repairs, boiler pipe replacement, and emergency window replacement.
Public Housing Grants for Safety and Security Needs
The Budget proposes $20 million for grants to PHAs to address crime and drug-related activity to
provide for the safety of public housing residents. The grants for emergency safety and security
needs are used to install, repair, or replace capital needs items, including security systems,
surveillance cameras, fencing, lighting systems, emergency alarm systems, window bars, deadbolt
locks, and doors. The purchase and installation of carbon monoxide detectors may, also, continue to
be an eligible activity, depending on determination of outstanding need.
Prevention, Recovery and Transformation of High Risk PHAs
The Budget proposes $45 million to support high-risk PHAs, specifically including PHAs in
receivership or under the control of a Federal monitor, through the following:
• Activities related to recovery from and prevention of receivership. This includes costs
associated with recapitalization, transformation, and preservation of affordable housing
assets for troubled and high-risk PHAs, including any PHA under control of a Federal
monitor. Funding will be used to address deteriorated physical conditions, which can help
preserve affordable housing and prevent high risk and troubled PHAs from being placed into
receiverships.
• Activities related to technical assistance and administrative costs that enable HUD and PHAs
to build capacity, conduct assessments, and develop recapitalization strategies for PHAs
whose deep capital needs pose financial and operational risks to the Agency.
During any given year, performance scoring under the Public Housing Assessment System (PHAS)
identifies over 500 troubled and substandard PHAs. Further, as evidenced by REAC financial and
physical data, there are approximately 207,000 units across 658 developments in poor physical
7-6
GAD 47-463 05/03/2022
48
PUBLIC HOUSING FUND
condition where the PHA does not have resources to address physical needs. The data, also,
identifies 123,000 units across 663 developments with a limited remaining useful life with failing or
trending to failing physical scores.
To address the collective needs of these agencies, HUD has undertaken a concerted effort to work
with PHAs to evaluate the on-the-ground challenges, provide technical assistance to PHAs to focus
capital investments, and address operational inefficiencies since 2019.
Public Housing Operating Shortfall Funding
The Budget proposes $25 million for Public Housing Operating Shortfall funding. Funding awarded
for operational shortfalls enables HUD to provide targeted assistance to agencies with short-term
operational challenges. HUD requires PHAs receiving these funds to take corrective actions to
remedy the causes of PHA shortfalls and to address such causes on a case-by-case basis. Through
this process, HUD can evaluate whether additional long-term policy changes are necessary for the
PHA.
Some PHAs have been found to have financial management challenges and face insolvency. These
PHAs were assisted by a $25 million insolvency/shortfall program in both 2020 and 2021. The
program provides PHAs with funding to support improvements in financial management and
solvency. In 2020, 219 PHAs were eligible with $112 million in eligibility, and the funding assisted
138 PHAs. In 2021, 167 PHAs were eligible with $143 million in eligibility, and the funding assisted
129PHAs.
Since the program's inception, the Department has seen improvement in the financial health and
stability of the PHAs participating in the Shortfall program. For the 2020 and 2021 Shortfall
programs, PHAs were required to achieve and maintain an operating reserve balance of one month
of expenses or better on their subsequent financial statements to access funds. As of January 2022
reporting, approximately half of the PHAs that received Shortfall funding in 2020 have met this
goal. Furthermore, these PHAs have collectively improved their financial position by increasing their
operating reserves by 50 percent since entering the program.
In 2022, HUD plans to implement improved oversight and support for PHAs receiving Shortfall
funding. As part of this effort, PHAs will be required to submit formal corrective action plans and
approved annual budgets. The corrective action plans will require PHAs to identify areas for
improvement and commit to certain timeframes. HUD will provide necessary technical support to
PHAs to increase the likelihood of success in meeting those goals.
Financial and Physical Assessment
The Budget proposes $50 million for Financial and Physical Assessments, which includes the
financial reviews and physical inspections of public housing necessary to identify performance risk
and to issue Public Housing Assessment System (PHAS) scores. Assessing housing health risks is
critical to additional actions aimed at health equity and environmental justice for public housing
residents, including hundreds of thousands of children. If these risks are not assessed, our most
vulnerable populations will remain at critical, and unknown, risk of acute illness, long-term
disability, or even death. This funding level reflects the increase in the number of physical
inspections performed on public housing properties during REAC's transition from legacy to new
standards; from the Uniform Physical Condition Standards (UPCS) for legacy PHAS scoring to
National Standards for the Physical Inspection of Real Estate program (NSPIRE).
As the Department transitions to the new NSPIRE standards in 2023, this funding together with
PIH IT modernization funds provided in the Consolidated Appropriations Act, 2021 supports the
7-7
GAD 47-463 05/03/2022
49
PUBLIC HOUSING FUND
NSPIRE Information Technology solution. It provides the necessary collection and improved
technology capabilities required to receive, process, analyze, and manage a larger volume of data and
information from all types of inspections (e.g., REAC-conducted inspections, self-inspections) and
resident surveys. It includes the development of a substantially improved inspection program,
including all operations at a more enhanced scale than possible under the legacy operating model.
Implementing NSPIRE by the end of 2023 is one ofHUD's strategic plan priorities to improve rental
assistance, and this funding will be instrumental in achieving this goal. This funding, also, includes
new specialized assessments and the continuation of an operational pilot for the collection of
information about environmental hazards in public housing, such as lead, mold, pest infestation, and
radon (in coordination with the Office of Lead Hazard Control and Healthy Homes) at approximately
1,000 properties.
As required by the 21st Century Integrated Digital Experience Act and the recent Executive Order
14058 on Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in
Government, and in furtherance of HUD's goal of advancing sustainable communities, this funding
level allows for continued development of a new set of performance and risk indicators for public
housing based in sound evidentiary principles. These indicators are also aligned with our voucher
program inspections. A revised assessment program will help to improve the way HUD works by
using digital and human-centered design principles to transform business processes and the
supporting technology infrastructure REAC utilizes to perform and deliver assessments. The
following IT efforts comprise the Department's mutli-pronged enhancement strategy to achieve these
goals:
• NSPIRE: Using 2021 PIH IT Modernization funds approved in HUD's 2021 PIH IT
Performance Plan, PIH and its partner, OCIO, are developing a new system, the NSPIRE IT
solution, which will automate the entire inspection lifecycle, including the prioritization,
scheduling, inspection data collection (e.g., recording of deficiencies), remediation tracking
and accountability, enforcement, and reporting among other functions. During December
2021, PIH has already deployed the first component of the NSPIRE IT solution to successfully
perform NSPIRE Demonstration inspections in approximately 60 days after development
started, in fact achieving the inspection collection capability as planned.
• IMS-PIC Modernization: IMS-PIC is the bedrock system for all PIH programs, including
Tenant-Based Rental Assistance, Public Housing Operating Fund grants, and Public Housing
Capital Fund grants, as it includes the baseline information for all families participating in
PIH programs (household data) and all public housing assets (inventory data). IMS-PIC
inventory data is also used for HUD's physical inspection program and Public Housing
assessments. Following the deployment of the Enterprise Voucher Management System, all
PIH rental assistance programs will use IMS-PIC household data for the calculation of annual
funding. Like many PIH systems, IMS-PIC was built a little over 3 decades ago and uses
outdated technology that is costly to maintain and vulnerable to performance and security
risks. Like many PIH systems, IMS-PIC was built over three decades ago and uses outdated
technology that is costly to maintain and vulnerable to performance and security risks. PIH
and OCIO have been developing a replacement for IMS-PIC, approved as part of the 2021 PIH
IT Performance Plan, that will replace all aspects of IMS-PIC and add several new functions
supporting PIH programs, including data collection for Moving to Work (MTW) Expansion
and HOTMA implementation; and functionality to support ONAP's Tribal HUD VASH
program.
• PIH Data Warehouse Modernization: The PIH Data Warehouse is the repository and data
architecture for all PIH programs and has substantially exceeded its useful life, requiring
substantial operations and maintenance and regular hardware/performance enhancements to
maintain its ability to operate. In order to support its rental assistance programs and grants
moving forward, PIH and OCIO are developing a new PIH Data Warehouse to support its
7-8
GAD 47-463 05/03/2022
50
PUBLIC HOUSING FUND
programmatic data needs, including analytics, risk analysis and reporting. The new PIH Data
Warehouse is essential for supporting its other PIH IT modernization efforts that require a
new data architecture to effectively manage and organize PIH data to evaluate the efficacy of
how these programs support several million households and approximately 7,000 assets.
• PHAS Modernization: OCIO requested funding in its 2022 Budget to modernize the
technology supporting PIH's Public Housing Assessment System (PHAS). This technology
would specifically enable an enhanced view of public housing performance and
complementary data analytics to forecast/predict performance trends that could be used to
prevent and respond to troubled housing and provide greater insight and transparency in the
overall performance and risk of the public housing portfolio.
Public Housing Energy and Water Conservation
PHAs use operating grants to pay for ongoing utilities costs, including energy and water incentive
programs, and are authorized/encouraged to use capital grants to make investments in energy
conservations measures. HUD spends about $2 billion in utilities through utilities subsidies and
energy and water conservation incentive programs, such as the decades-old Energy Performance
Contract (EPC) program, the Rate Reduction Incentive, and the newly implemented Small Rural
Frozen Rolling Base (SRFRB) program focused the small, rural PHAs. The incentive programs
provide financial inducements for PHAs to implement energy and water conservation measures that
reduce utility costs, improve infrastructure, reduce carbon emissions, conserve water, and bolster
other climate resilience initiatives. In 2021, 80 percent of these incentives supported implementation
of energy and water conservation measures, such as efficient lighting, water fixtures, and solar
energy. These programs have been used by a limited number of PHAs, and various market factors
and available resources have created barriers to usage by more PHAs. The remaining 20 percent
promoted PHA utility rate reduction efforts, which lower utility costs that contribute to the $2 billion
cost of Public Housing utilities. A part of that $2 billion utility cost, in addition to the $1.5 billion in
utility subsidy, is $500 million in resident utility allowances. This budget requests resources to
reduce public housing utilities usage and costs, and to support more informed decision-making by
PHAs when investing in their portfolios.
Climate Resilience and Energy Efficiency
As part of the Administration's whole-of-government approach to the climate crisis, the Department
is committed to cost-effective, energy efficient, green, and healthy retrofits of HUD-supported
affordable housing. The Budget includes a total of $300 million in the Public Housing Fund that will
be used to achieve these goals through targeted investments for public housing to further support
energy efficient housing construction and environmentally sensitive and resilient design. Further, a
portion of this funding will be used for pursuing energy benchmarking across the Public Housing
portfolio. The table below illustrates the breakout:
7-9
GAD 47-463 05/03/2022
51
PUBLIC HOUSING FUND
Million
Public Housing Rapid Return Utility Conservation Program $176
Climate Resilience 100
Public Housing Utilities Benchmarking 24
$300
Public Housing Rapid Return Utility Conservation Program
The budget includes $176 million for energy efficiency capital improvements. The competitive
selection criteria would include the period it would take for the conservation measure to pay for itself
with investments that have a more rapid return on the investment receiving a priority for funding.
The Secretary would be authorized to establish additional selection criteria. Grantees would be
required to report on the performance of the utility conservation measures. While many PHAs have
sporadically implemented utility conservation measures, the Department believes that extensive
opportunities remain for PHAs to implement utility conservation measures that will pay for
themselves in just a few years. Based on consumption data, at least 200,000 public housing units
would be able to install low flow water fixtures that would substantially reduce water consumption.
There are also opportunities for rapid paybacks that reduce energy consumption. PHAs that install
improved weatherization measures, smart thermostats, or shift from using fluorescent bulbs to Light
Emitting Diode (LED) bulbs can achieve a one-year payback. This investment in the public housing
program may achieve an estimated $100 million per year in savings on utility costs, save more than
7 billion gallons of water, and conserve more than 85 billion BTUs.
Climate Resilience
The budget includes $100 million in competitive grants to fund capital investments to increase the
climate resilience of public housing. These would prioritize cost-effective investments that protect
the largest number of units possible. The selection criteria would include a per-unit cost ratio that
would provide a higher score to proposals that would make a higher number of units climate resilient
for a lower cost. PHAs would have to provide evidence that the proposed intervention would
ameliorate the climate threat sufficiently to ensure the long-term viability of the property. The
Secretary would be permitted to establish an eligible list of climate threats that are eligible to
receive funding, as well as to permit PHAs to propose climate threats for consideration. The
Secretary would be authorized to establish additional selection criteria, as well as maximum grant
limits.
In order to maximize the effectiveness of the climate management component of the Public Housing
Fund, the legislative language has been written such that the Secretary has the ability to shift funds
from utility conservation measures to climate resilience measures, if demand for one or the other is
insufficient to consume the funds initially made available.
Public Housing Utilities Benchmarking
Rising utility costs, aging property infrastructure, and increasingly frequent and intense weather
events all threaten the affordability, financial viability, and habitability of assisted housing. By
retrofitting properties to be more energy efficient, healthier, and more resilient, HUD can ensure the
safety, affordability, and availability of housing. Despite spending nearly $7 billion annually on
utilities across its programs, HUD does not currently have complete, actionable data on how assisted
7-10
GAD 47-463 05/03/2022
52
PUBLIC HOUSING FUND
properties in the portfolio perform relative to industry norms for utility consumption. HUD's ability
to target technical assistance, resources, and programs to improve the worst performing properties
in our portfolios, to reward the highest performers and improvers, and to set performance standards
and targets for our properties, will depend upon having a reliable, baseline snapshot of how
properties currently perform relative to industry standards. Further, because the utility
consumption data collected through utilities benchmarking is the same data upon which HUD utility
allowances are sized, utilities benchmarking should also result in more accurate utility allowances
giving each property the correct energy subsidy.
HUD believes strongly that implementing utilities benchmarking across its assisted housing
portfolio will serve to inform PHAs, owners, and the Department of the performance of its portfolio to
support informed decision making. The 2023 Budget seeks to increase utilities benchmarking across
the entire HUD housing portfolio, while providing each program flexibility to implement based on
the specific needs and current program requirements. Utilities benchmarking is a tool that supports
data-driven utility management. Utilities benchmarking allows PHAs to electronically track utility
consumption, cost data, and respective building characteristic data for capital improvements
planning. PHAs can support and measure improvements in the program and measure carbon
reductions.
Chronic underfunding of the Public Housing program has left a significant portion of the public
housing portfolio in need of capital investment to modernize systems to reduce energy and water
consumption. PHAs have useful, but limited, incentive programs built into the Operating Fund
Formula that reward PHAs that invest in energy conservation measures by allowing them to keep a
portion of the savings (a portion is shared with HUD). Pursuing utilities benchmarking will help
PHAs and those supporting housing authorities to identify inefficiencies and prioritize the
investment of limited grant or financing resources.
HUD plans to require mandated utilities benchmarking across the portfolio when systems are
operational. For public housing, HUD plans to require utilities benchmarking after completing the
regulatory requirements related to a feasibility study and public process. These efforts include
analysis of comprehensive data, systems, and processes to identify a viable approach to
implementing utilities benchmarking for public housing.
The Budget proposes $24 million to advance Public Housing utilities benchmarking in 2023 to
provide robust technical assistance to support agencies that would voluntarily participate in a pilot
utilities benchmarking effort in 2023, as well as enable HUD to meet its regulatory obligations to
complete a feasibility study and conduct a public prooess with appropriate stakeholders. Further,
depending on the outcome of the activities related to the feasibility study and public process, up to
$9 million of this funding could be used to support IT systems upgrades to support longer-term
changes to HUD or EPA systems to implement utilities benchmarking across the public housing
portfolio, to support integration with the Operating Fund process, and to make other systems
upgrades to support integration between HUD and EPA systems.
In addition, HUD expects to use up to $10 million of the utilities benchmarking funding for technical
assistance to support agencies to voluntarily participate in utilities benchmarking in 2023. With
$10 million in funding to support a utilities benchmarking pilot, HUD could provide TA to
approximately 280 PHAs, or 10 percent of the public housing portfolio. This would provide PHAs
technical assistance in their effort to report into Portfolio Manager and equip PHAs to use the
utilities benchmarking data to improve their energy and water efficiency. Depending upon the size of
the PHAs participating, we would expect this to impact approximately 90,000 units, or 10 percent of
the Public Housing portfolio.
7-11
GAD 47-463 05/03/2022
53
PUBLIC HOUSING FUND
Unlike utilities benchmarking in other HUD programs, the Public Housing program is required to
conduct a feasibility study and complete a Federal Advisory Committee Act (FACA) process as part
of its utilities benchmarking effort. HUD will then advance the recommendations of the study, as
well as feedback from stakeholders at the FACA, to identify policies, system requirements, and
develop a utilities benchmarking system that leverages existing technology and systems.
Public Housing Resident Characteristics
Currently, the Public Housing program serves families with an average household income of
approximately $15,574, less than a quarter of the 2020 U.S. median household income of $67,521.
Extremely low-income families (families earning less than 30 percent of an area's median income)
make up approximately 60 percent of public housing households. More than a quarter of public
housing households earn wages as their primary source of income, with approximately 65 percent of
wage earners earning between $5,000 and $25,000. Over half of households live on fixed incomes.
The elderly and persons with disabilities head 56 percent of households. Close to 40 percent of all
households served include children. The average household contributes more than $334 a month
toward rent and utilities.
7-12
GAD 47-463 05/03/2022
54
PUBLIC HOUSING FUND
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Fonnula Grants
{Capital Expensee) 2,765,000 2,765,000 2.710,162 2,765,000 11,204 2,776,20-4 3.200,000
Public Hous:ing
Formula Grants
(Open,~r,g
Expenies) 4,839,000 4,839,000 4,320,550 4,839,000 442,694 5,281,694 5,035,000
P-ubHc Housing
Shortfall Prevention 25,000 25,000 25.000 25,000 25,000 25.000
EinergencY O!a:at•r
Grants 20,000 20,000 18,940 20,000 1,060 21,060 2D,OOO
Safety and Security
Grant:5 10,000 10,000 10,000 10,000 10,000 2D,OOO
Receivership and
Monii:'Hlihip
Emergency Grants 45,000 45,000 45,000 45,000 45,(lO0
in~mc(al and
Phy~ic..tl
AJM1sament nooo 23,000 1,26t) 23,000 21.734 44.734 50,000
eceivenship,
Troubled, High Risk
PHAs 15,000 15,000 14 15,000 14,986 29,986 45,000
P\.lbHc Hou.sing
Rapid Return U'dlity
Conservation
Program and C!lmata
RulOer.:y 276,000
ummes
8'3cnchml!uklng 24,000
Lelild Paint
Determination and
Ab111t&m&nt 25,000 25,000 19,613 25,000 5,387 30,387 25,000
Housing HeetEl'l
Hazaroe. 35,000 35,000 35,000 35.000 70.000 60,000
Radon Testing 4,000 4,000 4,000 4,000 8,000
!nfomiation
Technology Ft.md
(transfer) (9,000)
Rental Assistance
Demostratlon
(transfer) (!19,000) (119,000) (85,000) (85,000) (86,000)
Total 7,006,000 (119,000) 7,687,000 7,150,545 7,806,000 451,065 6,257,065 8,685,000
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
• Operating Fund accommodates Jobs Plus rent incentive. The amount of any foregone
tenant rent payments due to the implementation of rent incentives from the Jobs-Plus
initiative should be factored into the PHA's general operating fund eligibility instead of
coming out of the PHA's Jobs Plus grant. This will allow PHAs to use their Jobs Plus grants
to encourage self-sufficiency, not cover rent payments.
7-13
GAD 47-463 05/03/2022
55
PUBLIC HOUSING FUND
• Capital and Operating Fund Flexibility, Under current law, Public Housing
appropriations are designated as "Operating" or "Capital," each of which has a separate list
of eligible uses in statute. Small PHAs (i.e., operating <250 units) have full flexibility
between Operating and Capital Funds, but non-small PHAs are only able to use 20 percent
flexibly. HUD proposes to grant full flexibility to all PHAs.
General Provisions
The 2023 President's Budget proposes the following new general provision(s):
• Capital and Operating Fund Formula Grant Corrections. HUD requests authority to
correct formula errors for any HUD formula program on a prospective basis by offsetting
amounts from any previously overpaid grantee(s)' award(s) in the current fiscal year and
distributing those funds to grantees in the current fiscal year that previously received less
formula funding than they would have as a result of the error in the prior fiscal year. (2023
President's Budget, Section 235)
• Moving to Work (MTW) Implementation. The provision provides HUD an extra three
years to implement the MTW expansion because of delays attributable to the COVID-19
pandemic. (2023 President's Budget, Section 229)
The 2023 President's Budget re-proposes the following general provision(s) that were enacted in the
2021 appropriations bill:
• PHA Executive Compensation. This provision establishes a cap on PHA personnel
compensation tied to the Federal Executive Schedule pay scale. (2023 President's Budget,
Section 216)
• PHA Grant Funding Eligibility. This provision prohibits funds from being used to make
certain eligibility limitations as part of a notice of funding availability for competitive grant
awards under the Public Housing Fund. (2023 President's Budget, Section 225)
• Asset Management Exemption for Small PHAs. Public housing agencies that own and
operate 400 or fewer public housing units may elect to be exempt from any asset
management requirement imposed by the Secretary in connection with the operating fund
rule. (2023 President's Budget, Section 210)
• Use of Capital Funds. Ensures that agencies that are utilizing asset management are
permitted to transfer capital funds for operations in compliance with the U.S. Housing Act of
1937. (2023 President's Budget, Section 211)
• Expansion MTW Reserves Flexibility, The provision allows Expansion MTW PHAs the
ability to use previously appropriated funds flexibly permanently. (2023 President's Budget,
Section 224)
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes through the
authorization process:
7-14
GAD 47-463 05/03/2022
56
PUBLIC HOUSING FUND
• Transfer of Reserves at Closing to Encourage Repositioning. HUD requests authority
to permit PHAs to retain a portion or the entire balance of Operating Funds, rental, and non-
rental income reserves and use them to provide HCV assistance or capitalize the reserves of
properties converted to PBVs through Section 22 or Section 18.
• Community Service and Self-Sufficiency Requirement. Current law requires non-
working, non-elderly, non-disabled residents of Public Housing to participate in eight hours
per month of either community service or economic self-sufficiency activities. HUD proposes
to remove this requirement.
• Biannual Selection of Flat or Income-based Rent for Families Experiencing
Temporary Fluctuations in Income. Under current law, PHAs must make available to
tenants a "flat rent," generally at 80 percent FMR; however, tenants can only make the
choice between a flat rent and an income-based rent once per year. HUD proposes to allow
families to make this choice up to twice per year.
• Triennial Recertifications oflncome. To promote family wealth building, HUD requests
language that would provide the Department with the discretion to allow PHAs to, instead of
annual or biennial income examinations, implement triennial recertification of income, like
what is currently available to PHAs for fixed income families.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For 2023 payments to public housing agencies for the operation and management of public housing,
as authorized by section 9(e) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)) (the ''.Act'?,
and to carry out capital and management activities for public housing agencies, as authorized under
section 9(d) of the Act (42 U.S.C. 1437g(d)), $8,780,000,000, to remain available until September 30,
2026: Provided, That the amounts made available under this heading are provided as follows:
(I) $5,035,000,000 shall be available to the Secretary to allocate pursuant to the Operating Fund
formula at part 990 of title 24, Code of Federal Regulations, for 2023 payments: Provided, That the
amount of any forgone increases in tenant rent payments due to the implementation of rent incentives
as authorized pursuant to waivers or alternative requirements of the Jobs-Plus initiative as described
under the heading "Self-Sufficiency Programs" shall be factored into the PHA's general operating
fund eligibility pursuant to such formula;
(2) $25,000,000 shall be available to the Secretary to allocate pursuant to a need-based application
process notwithstanding section 203 of this title and not subject to such Operating Fund formula to
public housing agencies that experience, or are at risk of, financial shortfalls, as determined by the
Secretary: Provided, That after all such shortfall needs are met, the Secretary may distribute any
remaining funds to all public housing agencies on a pro-rata basis pursuant to such Operating Fund
formula;
(3) $3,200,000,000 shall be available to the Secretary to allocate pursuant to the Capital Fund
formula at section 905.400 of title 24, Code of Federal Regulations: Provided, That from the funds
made available under this paragraph, the Secretary shall provide bonus awards in fiscal year 2023 to
public housing agencies that are designated high performers;
( 4) $40,000,000 shall be available for the Secretary to make grants, notwithstanding section 203 of
this title, to public housing agencies for emergency capital needs, including safety and security
7-15
GAD 47-463 05/03/2022
57
PUBLIC HOUSING FUND
measures necessary to address crime and drug-related activity, as well as needs resulting from
unforeseen or unpreventable emergencies and natural disasters excluding Presidentially declared
emergencies and natural disasters under the Robert T. Stafford Disaster Relief and Emergency Act
(42 U.S.C. 5121 et seq.) occurring in fiscal year 2023: Provided, That of the amount made available
under this paragraph, not less than $20,000,000 shall be for safety and security measures: Provided
further, That in addition to the amount in the previous proviso for such safety and security measures,
any amounts that remain available, after all applications received on or before September 30, 2024,
for emergency capital needs have been processed, shall be allocated to public housing agencies for such
safety and security measures;
(5) $25,000,000 shall be for competitive grants to public housing agencies to evaluate and reduce lead-
based paint hazards in public housing by carrying out the activities of risk assessments, abatement,
and interim controls (as those terms are defined in section 1004 of the Residential Lead-Based Paint
Hazard Reduction Act of 1992 (42 U.S.C. 4851b)): Provided, That for purposes of environmental
review, a grant under this paragraph shall be considered funds for projects or activities under title I
of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) for purposes of section 26 of such Act
(42 U.S.C. 1437x) and shall be subject to the regulations implementing such section;
(6) $60,000,000 shall be available for competitive grants to public housing agencies to evaluate and
reduce housing-related hazards including carbon monoxide, radon and mold in public housing:
Provided, That for purposes of environmental review, grants under this paragraph shall be considered
funds for projects or activities under title I of the United States Housing Act of 1937 (42 U.S.C. 1437
et seq.) for purposes of section 26 of such Act (42 U.S.C. 1437x) and shall be subject to the regulations
implementing such section: Provided further, That amounts made available under this paragraph
shall be combined with any amounts remaining from amounts made available under this paragraph
for Healthy Homes Initiative grants in prior Acts and shall be used in accordance with the purposes
and requirements under this paragraph;
(7) $45,000,000 shall be to support the costs of administrative and judicial receiverships and for
competitive grants to PHAs in receivership, designated troubled or substandard, or otherwise at risk,
as determined by the Secretary, for costs associated with public housing asset improvement, in
addition to other amounts for that purpose provided under any heading under this title;
(8) $50,000,000 shall be to support ongoing public housing financial and physical assessment
activities;
(9) $300,000,000 shall be available to improve the energy or water efficiency or climate resilience of
public housing, including for competitive grants to public housing agencies for capital improvements
to achieve such purposes: Provided, That for purposes of environmental review, grants under this
paragraph shall be considered funds for projects or activities under title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) for purposes of section 26 of such Act (42 U.S.C. 1437x)
and shall be subject to the regulations implementing such section: Provided further, That of the
amounts made available under this paragraph, up to $24,000,000 shall be available for utility
benchmarking, including research and evaluations, technical assistance, and contracts, of which up
to $9,000,000 may be transferred to and merged with the heading "Information Technology Fund" to
develop systems and tools necessary to collect and analyze PHA utility benchmarking data, to remain
available until September 30, 2026;
Provided further, That notwithstanding any other provision of law or regulation, during fiscal year
2023, the Secretary of Housing and Urban Development may not delegate to any Department official
other than the Deputy Secretary and the Assistant Secretary for Public and Indian Housing any
authority under paragraph (2) of section 9(j) of the Act regarding the extension of the time periods
under such section: Provided further, That for purposes of such section 9(j), the term "obligate" means,
7-16
GAD 47-463 05/03/2022
58
PUBLIC HOUSING FUND
with respect to amounts, that the amounts are subject to a binding agreement that will result in
outlays, immediately or in the future: Provided further, That a public housing agency may use
operating reserve funds or any amounts allocated to such agency pursuant to the Operating or Capital
Fund formulas from amounts made available in this and prior Acts for any eligible activities under
sections 9(d)(l) and 9(e)(l) of the United States Housing Act of 1937 (42 U.S.C. 1437g(d)(l) and
(e)(l)).
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
7-17
GAD 47-463 05/03/2022
59
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Housing Certificate Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
77,427 77,427 25,088 25,000
2023 Presidenls Budget 54,000 54,000 20,000 20,000
Change from 2022 (23,427) (23,427) (5,088) (5,000)
al Refer to the table below for a description of the source of the funds.
bl Table may not reflect complete resources as compared to the 2023 Budget Appendix due to rounding.
PROGRAM PURPOSE
The Housing Certificate Fund (HC:F) is best described as a composite account. Prior to 2005, it
funded contracts that are now administered in the Tenant-Based Rental Assistance (TBRA) and
Project-Based Rental Assistance (PBRA) programs. In 1998, some smaller accounts (including
Annual Contributions for Assisted Housing) were consumed by HCF, making it an even more eclectic
mix.
• Beginning in 2005, the account stopped receiving annual appropriations and the TBRA and
PBRA accounts were established.
• HCF continues to "hold" the account's prior obligations for original term PBRA contracts that
were funded in advance (i.e., long-term, up to 40 years). These funds continue to pay for
contract expenses as they come due.
• As original contract terms draw to completion, annual renewals subsequently take place in
the PBRA account, thus slowly depleting the inventory of projects and contracts in HCF,
while increasing the number of projects in PBRA.
• Any undisbursed funds remaining on contracts at termination are recaptured and either
cancelled or re-appropriated (depending on the source year). Eligible uses of recaptures
include PBRA renewals, amendments, and administrative fees for multifamily housing
programs.
BUDGET OVERVIEW
The 2023 President's Budget requests no funding for the Housing Certificate Fund. The Budget
request for HCF reflects the use of anticipated carryover and recaptures from previous years.
Continuing appropriations language for HCF provides that recaptures from source years 1975
through 1987 will be cancelled and an amount of additional budget authority equal to the amount
cancelled will be appropriated. Recaptures of contract authority originating in 1974 and prior are
cancelled.
8-1
GAD 47-463 05/03/2022
60
HOUSING CERTIFICATE FUND
SOURCE OF FUNDS
2022 7H27547 10 000 000 15.000 000 7H27,51.7 25 067 848
2023 52,000 000 10 000 000 15 000 000 54 OOJ,000 20 000 OOJ
a/ 2021 carryover is net of SF-133 adjustment
bl Rescissions include all recaptured funds appropriated prior to 1987.
cl An equivalent amount of the rescinded funds from 1974 to 1987 are then re-appropriated to HUD,
HUD anticipates using available residual funding from the HCF account to supplement
appropriations in the PBRA account. Currently, HUD estimates this need at $20 million but may use
more based on actual operational need. The recaptures in 2023, along with funds remaining from
prior year HCF recoveries, are anticipated to support Performance Based Contract Administrators
(and/or successor contracts) and contract renewals in the PBRA program, providing an offset to new
appropriations needed in the PBRA account.
JUSTIFICATION
For more detailed information, please see the ''Project-Based Rental Assistance (PBRA)"
justification.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
81,656 81,656 6,228 77,427 77,427
Renewal of Expiring
Section BContract
Total 81,656 81,656 6,228 77,427 77,427
al Table may not reflect complete resources as compared to the 2023 Budget Appendix due to rounding,
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
None
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
(INCLUDING CANCELLATIONS)
Unobligated balances, including recaptures and carryover, remaining from funds appropriated to the
Department of Housing and Urban Development under this heading, the heading "Annual
Contributions for Assisted Housing" and the heading "Project-Based Rental Assistance", for fiscal
year 2023 and prior years may be used for renewal of or amendments to section 8 project-based
contracts and for performance-based contract administrators, notwithstanding the purposes for which
8-2
GAD 47-463 05/03/2022
61
HOUSING CERTIFICATE FUND
such funds were appropriated: Provided, That any obligated balances of contract authority from fiscal
year 1974 and prior fiscal years that have been terminated are hereby permanently cancelled:
Provided further, That amounts heretofore recaptured, or recaptured during the current fiscal year,
from section 8 project-based contracts from source years fiscal year 1975 through fiscal year 1987 are
hereby permanently cancelled, and an amount of additional new budget authority, equivalent to the
amount permanently cancelled is hereby appropriated, to remain available until expended, for the
purposes set forth under this heading, in addition to amounts otherwise available,
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended).
3.3
GAD 47-463 05/03/2022
62
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Choice Neighborhoods
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 200,000 188,744 368,744 164,998 72,378
2022 Annualized CR 200,000 223,746 423,746 200,000 143,397
2023 Presidents 8 uclge! 250,000 224,000 474,000 250,000 155,000
Change lrom 2022 50,000 254 50,254 50,000 11,603
PROGRAM PURPOSE
Choice Neighborhoods is a place-based grant program which helps communities develop and
implement locally driven comprehensive neighborhood plans to transform underserved
neighborhoods into thriving communities with greater economic opportunity for all residents. The
Choice Neighborhoods program focuses on three key elements: 1) Housing - redevelop severely
distressed public housing and/or HUD multifamily housing; 2) Neighborhood- invest in and catalyze
economic development-related improvements meant to revitalize the surrounding neighborhood; and
3) People - improve the lives of housing residents through education, employment, and health care.
The ultimate outcome of the program is to achieve social and racial equity, where a person's
neighborhood does not determine their socioeconomic outcomes and the neighborhood provides the
living conditions, amenities, services and supports they need to thrive. By redeveloping and
modernizing distressed housing and neighborhood amenities, the program advances energy-
efficiency, climate resilience, and environmental justice.
HUD provides two types of Choice Neighborhoods grants: 1) Planning Grants, which support
development of comprehensive neighborhood transformation plans to guide revitalization of targeted
underserved neighborhoods; and 2) Implementation Grants, which allow communities to implement
their plans for neighborhood transformation. While HUD is a key partner in both grants, the
program stresses the creation of local, city-wide, State, and Federal partnerships and supports
extensive outreach to and meaningful participation of residents.
As of January 2022, there were 30 active Planning Grants and 31 active Implementation Grants.
BUDGET OVERVIEW
The 2023 President's Budget requests $250 million for the Choice Neighborhoods program, which is
$50 million more than the 2022 annualized CR level. Choice Neighborhoods grants are competitively
awarded each year. Of that amount, HUD will allocate up to $5 million for Planning Grants to fund
10-12 new grants, which will allow those communities the funding necessary to develop meaningful
neighborhood transformation plans ready for implementation. Approximately $235 million will enable
HUD to award 5 to 7 additional Implementation Grants, which will provide those communities the
funds necessary to implement their neighborhood transformation plans, including: redeveloping the
targeted severely distressed HUD public housing or HUD multifamily project; improving the lives of
housing residents through the provision of intensive case management, service coordination, and
housing choice; and completing critical economic development projects in the surrounding
9-1
GAD 47-463 05/03/2022
63
CHOICE NEIGHBORHOODS
neighborhood. Additionally, up to $10 million will be used to fund planning and implementation
grants specifically targeted to communities in proximity to Superfund sites through a pilot of the
Revitalization and Empowerment of Communities near Contaminated Lands through Assistance,
Investment, and Mitigation (RECLAIM) program.
JUSTIFICATION
The Choice Neighborhoods program targets disadvantaged neighborhoods where at least 20 percent
of residents are estimated to live in poverty. In most targeted neighborhoods, over 90 percent of
residents are people of color. These neighborhoods must include a distressed HUD-assisted housing
project, either public housing or multifamily. Many of these neighborhoods were once thriving but
over time fell behind, leaving them with poor housing choices and a lack of amenities (compared to
other higher income communities), thus limiting opportunities for residents. In addition, many of
these neighborhoods are located on or near areas of environmental contamination, impacting
resident health and well-being.
Concentration of poverty remains a serious challenge for low-income families and children in
accessing opportunities and moving up the economic ladder. Where a family lives dramatically
affects their life opportunities. For example, concentrated poverty often exacerbates the imbalance
between housing and jobs, whereby residents oflow-income neighborhoods are isolated from
opportunities for employment and advancement because of distance from the location of jobs and
limited access to transportation. Income also impacts the types of services or amenities found in a
neighborhood, such as access to healthy foods or health care, and may also impact the quality of
basic services such as education and transportation. In addition, public housing and multifamily
projects are often severely distressed and a blight on their neighborhoods, as well as an unsafe living
environment for residents. While this housing is obviously in need of major renovation or
reconstruction, there is a significant backlog of capital needs.
In line with the Administration's priority to provide affordable housing choices, Choice
Neighborhoods grants provide direct support for the redevelopment of distressed public or
multifamily housing projects into modern mixed-income communities. The program's 1:1
replacement requirement for demolished units assures that every former resident can live in a new
or substantially renovated affordable home. Each new housing development must be healthy, free of
toxins, sustainable, and energy efficient; this includes conforming to the standards of a nationally
recognized Green rating program. In addition, housing construction generates jobs, which residents
may be eligible for, in line with HUD's Section 3 requirements. Thus, Choice Neighborhoods grants
also contribute to the Administration's goals on economic mobility, environmental justice, and
climate resilience by serving as an economic engine in the communities awarded the grants and
significantly improving the environmental health and energy efficiency of the housing stock in the
communities.
The Choice Neighborhoods program addresses the issue of social and racial equity by directly
funding and catalyzing investments in economic development and critical neighborhood
improvements. The Program addresses indicators of distress, such as vacant land, poor schools, lack
of transportation, high crime rate, lack of retail services, dilapidated structures, lack of healthy food
options, poor health care, lack of jobs, distressed infrastructure, low homeownership, etc.-all of
which can limit choices of residents and their ability to access economic opportunities. In addition,
the Choice Neighborhoods program directly serves residents of HUD-assisted housing by funding
intensive case management and social service coordination to improve access to jobs, education, and
health care for both adults and children.
9-2
GAD 47-463 05/03/2022
64
CHOICE NEIGHBORHOODS
Climate
As part of the Administration's whole-of-government approach to the climate crisis, HUD's Budget
requests $1.065 billion to assist communities to reduce carbon pollution, increase resilience to the
impact of climate change, and deliver environmental justice. The National Climate Assessment has
shown that climate change disproportionately impacts low-income and disadvantaged communities,
the very communities and households served by HUD programs. HUD's Budget addresses climate
change on two fronts: both in tracking and lowering the carbon footprint and energy consumption of
the 4.5 million units of public and assisted housing, and at the same time helping the co=unities
served by HUD programs to better withstand and increase their resilience to future disasters. These
investments are crucial to assist communities throughout the country to mitigate and prepare for the
worst effects of climate change.
Please see the Climate Initiative Justification for more details.
Revitalization and Empowerment of Communities near Contaminated Lands through
Assistance, Investment, and Mitigation (RECLAIM)
Many low-income, underserved communities are also disproportionately impacted by severe
environmental contamination, given the historic siting oflow-income housing near manufacturing
sites, railroads, utilities, highways, mining, and other hazards. To further support the goal of the
Choice Neighborhoods program to address issues of environmental justice, HUD will initiate a pilot
program which focuses on distressed neighborhoods that contain public and/or HUD-assisted
housing and are located in neighborhoods in proximity to hazardous waste sites designated by the
Environmental Protection Agency as Superfund sites. The President's request includes up to
$10 million to fund this pilot program, called RECLAIM. The program leverages a coordinated
interagency effort with EPA and the Department of Health and Human Services to identify, cleanup,
and improve these sites by concentrating Federal resources. RECLAIM grants will allow designated
communities that have been impacted through the years by the presence of major contamination to
prepare comprehensive Transformation Plans and utilize funds for catalytic investments to attract
private and other public investment into these long-neglected communities. Consistent with the
larger Choice Neighborhoods program, RECLAIM focuses on housing, people, and neighborhoods,
including developing and implementing strategic economic development initiatives in the
community, creating affordable housing, and assessing the needs of and providing social services for
housing residents.
Data
The Choice Neighborhoods program has a specifically designed data system called Inform, which is
used to collect data on all Implementation Grants. Metrics cover key indicators in housing
production; resident self-sufficiency; and neighborhood development. Information is collected
quarterly throughout the 6-year grant period.
Program Improvements
Residents' options and outcomes are improving in Choice Neighborhoods through service
coordination and case management, as more than 14,000 residents are now receiving personalized
case management. Over 80 percent of grantees with available data have shown an increase in the
percentage of residents who are employed. Likewise, 90 percent of grantees have shown an increase
in residents' average household income. Four grantees saw average household income almost double,
increasing by 75 percent or more. Moreover, HUD's Office of Policy Development and Research
estimates that for every $100,000 of Choice Neighborhoods funds spent on development, two
9-3
GAD 47-463 05/03/2022
65
CHOICE NEIGHBORHOODS
construction jobs are created. The benefits have shown to extend beyond improved economic
conditions for residents as well. First, over 90 percent of grantees have shown an increase in the
percentage of children engaged in positive youth development activities. Second, over 85 percent of
grantees have shown an increase in the percentage of residents with a medical home, or regular
place for treatment or medical care that is not an emergency room; and between 83 and 95 percent of
residents in the first cohort of grantees have medical coverage.
Neighborhood and housing conditions are improving in Choice Neighborhoods. Many Choice
Neighborhoods are plagued with dilapidated housing, vacant or abandoned properties, lack of retail
services, poor transportation, environmental and public safety concerns, poor food choices, and lack
of jobs. Through Choice Neighborhoods, more than 12,000 distressed and obsolete HUD-assisted
housing units are scheduled to be replaced, including public housing units that are being
repositioned to the Section 8 platform, with more than 27,700 total housing units to be created by
current grantees. To date, Implementation Grantees have completed construction of 4,500 HUD
replacement housing units, plus an additional 4,600 affordable and market rate units.
Further, grantees have developed public safety strategies that are making a difference. For grantees
that have two or more years of crime data, 85 percent of target neighborhoods have shown a decrease
in violent crimes at higher rates relative to the surrounding city, and 60 percent have shown a
decrease in violent crimes at twice the rate of the city. New retail development has been attracted,
including grocery stores and food related business incubators, which are supported by Choice
Neighborhoods funding. Funds have also been used to demolish abandoned structures and repurpose
vacant land. Placemaking activities have been funded to "brand" neighborhoods to attract private
investment. Residential and commercial fa9ade programs have been implemented by grantees with
Choice Neighborhoods funding to assist homeowners and small businesses with maintenance of their
homes and businesses. Loan pools have been established to assist small business growth. New parks
and recreational facilities that promote healthy living have been built in many Choice
Neighborhoods communities. All these housing and neighborhood investments help to advance social
and racial equity by improving disadvantaged neighborhoods and providing low-income residents
with choices found in other more affluent communities across their cities.
Choice Neighborhoods projects have attracted nearly $7 ofleverage for every $1 of Choice
Neighborhoods grant funds spent. These in~estments support a wide variety of projects which bring
much needed amenities, services, and jobs to underserved neighborhoods, such as City funds to build
new infrastructure, parks and recreation, philanthropic funding for business incubators and day
care, and private investment in retail and commercial development.
SUMMARY OF RESOURCES BY PROGRAM
(Dollara in Thousands)
RECLAIM Pilot 10,000
Total 200,000 188,744 388,744 164,998 200,000 223,746 423,746 250,000
9-4
GAD 47-463 05/03/2022
66
CHOICE NEIGHBORHOODS
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language
The 2023 President's Budget includes the following:
• Flexibility in Affordability Requirements for Homeownership Units Developed with Choice
Neighborhoods Funding: HUD requests language to allow flexibility in applying
homeownership affordability requirements - such as reducing the 20-year term of
affordability and allowing for equity sharing models such as recapture authorities in the
HOME Investment Partnerships Program - with the objective of making the development of
homeownership units a more realistic option for grantees. This flexibility would not pertain
to the affordability term for any rental housing units (replacement and other affordable)
developed with grant funds.
• Extension of the Period of Availability (POA): HUD requests language to extend the POA to
obligate funds by an additional year for Choice Neighborhoods appropriations in 2023 and
subsequent years, from three years to four years. Thus, the POA for 2023 Choice
Neighborhoods appropriations would extend through September 30, 2026. This will provide
additional time for grantees to expend funds prior to the expenditure deadline.
General Provisions
The 2023 President's Budget re-proposes with edits the following general provision:
Provide One-Year Extension for previously appropriated Choice Neighborhoods funding: This
provision would provide a one-year extension to expenditure deadline for previously appropriated
Choice Neighborhoods funding. Grantees must currently expend all grant funding within 5 years
after the period of availability for obligation by HUD ends. In light of ongoing complications caused
by the COVID-19 pandemic, this extension of grant periods is needed to allow grantees additional
time to fully complete all phases of their housing redevelopment and fully expend their Choice
Neighborhoods grant funds. HUD is requesting to extend the grant period for the fiscal year 2015
through fiscal year 2021 Choice Neighborhoods grants by one year to allow them to fully complete
their housing plans. (2023 President's Budget, Sec. 228).
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For competitive grants under the Choice Neighborhoods Initiative (subject to section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v) unless otherwise specified under this heading), for
transformation, rehabilitation, and replacement housing needs of both public and HUD-assisted
housing and to transform neighborhoods of poverty into functioning, sustainable mixed income
neighborhoods with appropriate services, schools, public assets, transportation and access to jobs,
$250,000,000, to remain available until September 30, 2026: Provided, That grant funds may be used
for resident and community services, community development, and affordable housing needs in the
community, and for conversion of vacant or foreclosed properties to affordable housing: Provided
further, That the use of funds made available under this heading shall not be deemed to be for public
housing notwithstanding section 3(b)(l) of such Act: Provided further, That grantees shall commit to
an additional period of affordability determined by the Secretary of not fewer than 20 years: Provided
further, That the Secretary may specify a period of affordability that is less than 20 years with respect
9-5
GAD 47-463 05/03/2022
67
CHOICE NEIGHBORHOODS
to homeownership units developed with grants from amounts made available under this heading:
Provided further, That grantees shall provide a match in State, local, other Federal or private funds:
Provided further, That grantees may include local governments, Tribal entities, public housing
agencies, and nonprofit organizations: Provided further, That for-profit developers may apply jointly
with a public entity: Provided further, That for purposes of environmental review, a grantee shall be
treated as a public housing agency under section 26 of the United States Housing Act of 1937 (42
U.S.C. 1437x), and grants made with amounts available under this heading shall be subject to the
regulations issued by the Secretary to implement such section: Provided further, That of the amount
provided under this heading, not less than $100,000,000 shall be awarded to public housing agencies:
Provided further, That such grantees shall create partnerships with other local organizations,
including assisted housing owners, service agencies, and resident organizations: Provided further,
That the Secretary shall consult with the Secretaries of Education, Labor, Transportation, Health and
Human Services, Agriculture, and Commerce, the Attorney General, and the Administrator of the
Environmental Protection Agency to coordinate and leverage other appropriate Federal resources:
Provided further, That not more than $5,000,000 of funds made available under this heading may be
provided as grants to undertake comprehensive local planning with input from residents and the
community: Provided further, That not more than $10,000,000 of the funds made available under this
heading shall be available, in addition to amounts otherwise available for such purposes, for
planning and implementation grants, notwithstanding section 203 of this title, to support the
revitalization of communities with public or HUD-assisted housing in close proximity to Superfund
sites, notwithstanding the limitation on planning under the previous proviso: Provided further, That
communities selected under this program shall not be ineligible for participation in the Choice
Neighborhoods Initiative due to their selection under this program: Provided further, That the
Secretary shall define eligible activities for such grant assistance, which may include permitting
grantees to provide assistance to businesses and nonprofit organizations to carry out economic
development and job creation or job retention activities: Provided further, That the Secretary shall be
authorized to waive, or specify alternative requirements for any provision of such section 24 that the
Secretary administers in connection with the use of funds for this program (except for requirements
related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by
the Secretary that any such waivers or alternative requirements are necessary for the effective delivery
and administration of such assistance: Provided further, That unobligated balances, including
recaptures, remaining from funds appropriated under the heading "Revitalization of Severely
Distressed Public Housing (HOPE Vl)" in fiscal year 2011 and prior fiscal years may be used for
purposes under this heading, notwithstanding the purposes for which such amounts were
appropriated: Provided further, That notwithstanding section 24(0) of the United States Housing Act
of 1937 (42 U.S.C. 1437v(o)), the Secretary may, until September 30, 2023, obligate any available
unobligated balances made available under this heading in this or any prior Act.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as ame7J:ded). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
9-6
GAD 47-463 05/03/2022
68
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Self-Sufficiency Programs
SUMMARY OF RESOURCES
(Dollars in Thousands)
155,000 143,7'15 298}15 155,000 144,000
175,000 161,451 336,451 175,000 160,000
20,000 17}36 37,736 20,000 16,000
PROGRAM PURPOSE
The programs included in this justification promote economic opportunity for HUD-assisted residents by
encouraging self-sufficiency and financial stability. This allows families to benefit from supportive services
that are essential, especially now facing challenges posed by the COVID-19 pandemic. These efforts are
facilitated through the Family Self-Sufficiency program (FSS), the Jobs Plus Initiative (JPI or Jobs Plus)
program, and the Resident Opportunity and Self-Sufficiency program (ROSS). This suite of programs
focuses on employment, financial stability, and economic empowerment of HUD-assisted residents; and
results in their contributing to the overall economic health of the communities served.
These programs are especially vital to very-low and !ow-income families of color. In 2019, it was reported
that over 75 percent of FSS participants were non-white, which mirrors the overall population of those
living in HUD-assisted housing. 1 Additionally, developments eligible for the Jobs Plus program are often
located in communities of color. For example, the largest Jobs Plus grant award was given to Nickerson
Gardens in Watts, California, a development that is over 99 percent African American and Latino.
Additionally, the ROSS program has the unique ability to fund service coordinators at Native American
Housing Assistance and Self-Determination Act (NAHASDA)-assisted units. In recent years, over 30 Tribal
entities have been awarded grants under this program. The participation in these programs generally
mirrors the population of those receiving housing assistance.
BUDGET OVERVIEW
The 2023 President's Budget requests $1 75 million for Self-Sufficiency Programs, which is $20 million more
than the 2022 annualized CR level. Of that amount, $120 million is for the FSS program, $20 million is for
JPI, and $35 million for ROSS. With funding at the requested level, FSS will be able to fund approximately
1,450 FSS coordinators to support 67,000 families in public housing, voucher housing, and Multifamily
housing. Jobs Plus funding will allow HUD to fund up to 10 new grantees, and ROSS will fund 150 ROSS
coordinators to support over 65,000 households in public housing and NAHASDA-assisted units.
Housing-related challenges can trigger significant mental health distress. Training and technical
assistance resources available in this account will be used to support HUD's Department-wide effort to
reduce the impacts of housing-related challenges on mental and emotional well-being and improve the
experience of the Department's customers. HUD will coordinate validated, evidence-based training for
front-line housing professionals on the signs and symptoms of emotional distress and mental health
challenges. This training will help housing professionals connect customers who are experiencing
emotional distress with appropriate local resources.
1 Public Housing Information Center (PIC) HUD-50058 Family Reports.
https://www.hud.gov/program offices/public indi.an housing/systems/pie
10-1
GAD 47-463 05/03/2022
69
SELF-SUFFICIENCY PROGRAMS
JUSTIFICATION
The three Self-Sufficiency Programs' goals are to promote economic stability through self-sufficiency and
financial stability:
Family Self-Sufficiency
Family Self-Sufficiency provides funds for FSS coordinators' salaries. These funds leverage an array of
services provided by other national, State, and local programs for training, education, financial
empowerment, and other supportive services that expand employment opportunities for the purpose of
increasing economic self-sufficiency.
The requested funding level will provide one-year renewal funding for the salaries of approximately 1,300
existing (from 2021) FSS Program Coordinators and approximately 150 additional coordinators added as
the result of new awards. This would continue service levels previously requested, which provides funding
for these approximately 1,450 coordinators who could support an estimated 7,500 additional families. In
2022, HUD seeks to prioritize the expansion of FSS to multifamily properties, as residents in these
properties are often unsupported in their efforts to become self-sufficient. The baseline funding level is
critical to support those new programs as they provide service coordination through each participant's five-
year Contract of Participation.
FSS grants are for one year and renewable in subsequent years. Grants fund only the coordinator's salary,
while all supportive services are provided by community partners. FSS coordinators connect participants
with supportive services to help participants achieve their employment goals, increase their earnings, and
accumulate assets. FSS coordinators in each local program build partnerships with employers and service
providers in the community to help participants obtain jobs and supportive services. These services often
include childcare, transportation, basic adult education, job training, employment counseling,
substance/alcohol abuse treatment, financial empowerment, asset-building programs, and homeownership
counseling.
The overarching goals of the FSS program include:
Increased educational and employment attainment leading to increased earnings;
Engagement in fmancial empowerment activities leading to debt reduction, improvement in credit
scores, and increased savings; and
Decreased or eliminated need for Temporary Assistance to Needy Families (TANF) assistance and
rental assistance.
The success of the FSS program in promoting the economic security and self-sufficiency of Public Housing
and HCV participants is demonstrated by local co=unities achieving the following outcomes for
2021 (data exclude participant outcomes in Moving to Work public housing agencies):
• Over 60,000 households actively participated in the program; 3,838 families successfully completed
their FSS contracts and graduated; 100 percent of graduating families did not require temporary
cash assistance (TANF/welfare); and 25 percent of graduates had escrow savings at graduation.
Those with escrow had an average of approximately $9,495, and 57 percent of participants earned
escrow while in the program. Many participants who accumulated escrow chose to use some of or
all their escrow while in the program toward reaching their self-sufficiency goals;
1,048 FSS program graduates (27 percent of graduates) no longer needed rental assistance within
one year of leaving the FSS program;
451 FSS program graduates (11 percent of graduates) ultimately purchased homes; and
10-2
GAD 47-463 05/03/2022
70
SELF-SUFFICIENCY PROGRAMS
Program expansion to approximately 130 Project Based Rental Assistance (PBRA) properties via
Rental Assistance Demonstration or unfunded programs.
In support of this effort to study the effectiveness of the program, HUD co=issioned a national impact
evaluation of FSS by MDRC. The timeframe of the evaluation was designed to cover the full five years of a
standard FSS contract of participation with a final report likely to be published in late 2022. Findings for
the first 36 months indicated a higher uptake of services in the FSS group. Participants were more engaged
in financial empowerment programs and shifted from part-time to full-time work, each resulting in more
stable employment and potential for earned income over the longer term. The study does not indicate a
statistically significant change in earned income for FSS participants compared to the control group. 2
The program anticipates implementing a performance measurement system in Spring 2022 that provides
an analysis of each Public Housing Agency's (PHA's) FSS program by examining three factors: earnings
performance, graduation rate, and participation rate. The scores combine to determine a "performance
score." No new reporting is required to implement the performance score; HUD analyzes data already
collected through the Public Housing Information Center (PIC). HUD will use the performance score to
prioritize monitoring and oversight of FSS programs, targeting the lowest performers for the first reviews.
If the Congress removes the prohibition on using the performance measurement system in funding
decisions, HUD may use it to prioritize additional funding to higher-performing grantees especially when
considering expansion of existing programs.
The Congress re-authorized the FSS program in Section 306 of the Economic Growth, Regulatory
Relief, and Consumer Protection Act (Public Law No: 115-174) in 2018. HUD is on track to publish the
Final Rule implementing this new statute in Spring 2022. Updated tools and guidance will also be made
available.
Jobs Plus Initiative
The Jobs Plus Initiative provides an evidence- and place-based strategy for increasing the employment
opportunities and earnings of HUD-assisted residents. It accomplishes this through a three-pronged
program of employment services, rent-based work incentives, and community support for work. Jobs
Plus awards four 5-year grants to PHAs to address poverty among residents by incentivizing and enabling
employment through a financial rent incentive (earned income disregard) for working residents and a set of
services designed to support work including employer linkages, job placement and counseling, educational
advancement, and financial counseling. Residents in Job-Plus developments can evaluate educational,
training, and work opportunities in their community to determine a pathway towards long term economic
security. Through Jobs Plus, residents can address barriers that may prevent them from seeking
and retaining employment. These services are particularly critical during the COVID-19 pandemic-access
to readily available resources helped some Jobs Plus sites maintain or regain employment levels despite
the increase in local unemployment. The Budget requests $20 million for the Jobs Plus Initiative.
The Jobs Plus model depends on a "saturation" strategy, supporting entire developments and promoting
work throughout the community, rather than assisting individual households. This facet of Jobs Plus is
particularly important in co=unities of color that have historically lacked access to resources and
information related to work opportunities. Saturation ensures that everyone in the development has
equitable access to work readiness resources.
2 HUD Family Self-Sufficiency Program Evaluation Report. https://www_huduser_gov/portal/publications/FSS-
Midpoint-2021.html
10-3
GAD 47-463 05/03/2022
71
SELF-SUFFICIENCY PROGRAMS
Since the inception of Jobs Plus, PHA residents have been able to stabilize families though increased
income, asset building, barrier reduction, and wrap around supports. Among the key accomplishments for
the Jobs Plus Initiative from 2014 through June 30, 2021:
• Of the participants who have completed assessments, over 89 percent have received post-
assessment services or supports;
Jobs Plus sites report 5,762 part-time and/or full-time jobs placements;
Approximately 1,777 individuals have been continuously employed for at least 180 days
after placement; and
Through the Jobs Plus Earned Income Disregard, PHA residents have saved over
$31.4 million in rent payments.
Jobs Plus has evolved over time; the program launched as a demonstration in 1998 and was replicated
through the Social Innovation Fund (SIF) in 2011. HUD co=issioned two studies of the Federal
implementation, one focusing on implementation of Jobs Plus and one focusing on the impact of the
program. The interim implementation report found that the nine grantees in the first cohort implemented
the model more quickly and fully than the original demonstration and the SIF replication sites. The final
implementation study report (released December 2019) described how PHAs implement this ambitious
program and describes challenges sites faced and how they were addressed. 3 The study of program impacts
is currently underway, and results are expected later in 2022. 4
One of the main components of the Jobs Plus program is the Jobs Plus earned income disregard (JPEID). If
participants in JPEID experience an increase in earned income, instead of seeing their contribution to rent
increase, they are allowed to keep that extra money. Current program structure requires that this
difference in rent be covered by the Jobs Plus grant-so, if a program is successful in having participants
earn more income, their grant can become too small to continue to support the program. The Budget
contains language in the Tenant-Based Rental Assistance, Public Housing Fund, and Project-Based Rental
Assistance accounts that shift the cost of the disregard to those "source" accounts, allowing the Jobs-Plus
grants to focus on funding services. Also, shifting the disregard to the source accounts will significantly
minimize administrative burden for both HUD and grantees.
Resident Opportunity and Self-Sufficiency (ROSS)
The Resident Opportunity and Self Sufficiency (ROSS) Service Coordinator program provides funding to
hire and maintain Service Coordinators, who assess the needs of residents of public or Indian housing and
coordinate available resources in the community to meet those needs. ROSS leverages public and private
resources for supportive services and resident empowerment activities.
The Budget requests $35 million to fund 150 existing ROSS service coordinators who provide vital services
to over 65,000 public housing and NAHASDA-assisted residents. ROSS is designed to assist not just work-
able families but also elderly/disabled residents. In 2021, ROSS added digital inclusion as a focus area of
need in the Notice of Funding Opportunity (NOFO), increased salary maximums, and for the first time
since 2008, the NOFO allowing the use of grant funding for direct services. In addition to funding
PHAs, ROSS has the unique ability to provide grant funding to Tribes, non-profits, and Residents
Associations.
3 3 HUD's Jobs Plus Pilot Program for Public Housing Residents: Ongoing Implementation EXPeriences.
https://www.huduser.gov/portal/publications/JobsPlusReport.btml
4 More information on evaluation findings can be found at https://www.mdrc.org/proiect/iobs-.!llil§:
communityrevitalization-initiative-public-housing-families#overview
10-4
GAD 47-463 05/03/2022
72
SELF-SUFFICIENCY PROGRAMS
A 2019 evaluation of the ROSS program found that ROSS was often the sole source of funds for service
coordination among grantees in lower-resourced areas, and therefore, a vital lifeline which allowed
residents to access critical services and supports. 5 Through ROSS, residents receive services in a range of
areas, including health and wellness, education, financial literacy, employment training, and substance
abuse programs.
Key fmdings and accomplishments for the ROSS program from 2017 through 2020:
More than three-quarters (76 percent) of all participants received at least one service after the
initial assessment. Of those who received services, most participants (70 percent) received two or
more services;
ROSS Service Coordinators provided case management services to 85 percent of elders and people
with disabilities and to 67 percent of work-able adults, including comprehensive needs assessments
and links to other services;
65 percent of elderly participants and people with disabilities gained or maintained access to health
care, with 51 percent having a primary care physician; and
3,364 participants enrolled in an education or vocational program (4 percent), and 1,207 increased
their level of education (2 percent).
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
35,000 35,000 70,000 34,20il 35,000 35,7S2 35.00ll
Jobs Plus Initiative 15,000 15,00ll 30,000 28,280 15,000 1,720 20,00ll
Total 155,000 119,912 284,912 141,797 155,000 143,114 298,114 175,000
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following changes:
Jobs Plus Expansion beyond Public Housing: HUD requests account language authorizing the
expansion of Jobs Plus eligibility to fund place-based communities within not only Public Housing,
but also Project Based Rental Assistance (PBRA) developments and Project Based Voucher (PBV)
developments.
Jobs Plus Reduction of Grant Cost Burden: HUD requests a provision to allow the Jobs Plus
financial and rent incentive to be paid from the housing assistance source account rather than the
Jobs Plus grant. Corresponding language is included in the TBRA, PBRA, and Public Housing
Fund accounts.
• Project SOAR Closeout Site Visit Summary. https://www.huduser.gov/portal/publications/ROSS-SOARC!oseout-
Rept.html
10-5
GAD 47-463 05/03/2022
73
SELF-SUFFICIENCY PROGRAMS
General Provisions:
The 2023 President's Budget proposes the following new general provision(s):
• Eligibility of Rental Assistance Demonstration (RAD) Converted Properties for Resident
Opportunities and Self Sufficiency (ROSS) Program: PHAs that have received grant funding under
the Resident Opportunities and Self-Sufficiency (ROSS) program for public housing properties that
have undergone RAD conversions to Project Based Rental Assistance or Project Based Voucher
assistance remain eligible for future ROSS funding for those assisted housing developments (2023
President's Budget, Sec. 232).
The 2023 President's Budget requests the deletion of the following general provision that was enacted in
the 2021 appropriations bill:
Use of performance measures: HUD is requesting the removal of the provision that prevents HUD
from using Family Self-Sufficiency performance measures to determine funding awards. In 2019,
HUD released a Final Notice explaining the methodology behind a performance measurement tool
for FSS programs that HUD intended to use as part of future funding decisions. Even after public
comment, there remained stakeholder concerns about this tool. HUD, including the Secretary, has
carefully listened to these concerns and made revisions to the performance measure and how it will
be used. HUD seeks to begin using this revised measure and looks forward to continuing
discussions with the appropriations staff on the best ways to ensure that FSS funds are being used
effectively.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For activities and assistance related to Self-Sufficiency Programs, to remain available until September 30,
2026, $175,000,000: Provided, That the amounts made available under this heading are provided as
follows:
(I) $120,000,000 shall be for the Family Self-Sufficiency program to support family self-sufficiency
coordinators under section 23 of the United States Housing Act of 1937 (42 U.S.C. 1437u), to promote the
development of local strategies to roordinate the use of assistance under sections 8 and 9 of such Act with
public and private resources, and enable eligible families to achieve economic independence and self-
sufficiency: Provided, That the Secretary may, by Federal Register notice, waive or specify alternative
requirements under subsections (b)(3), (b)(4), (b)(5), or (c)(l) of section 23 of such Act in order to facilitate the
operation of a unified self-sufficiency program for individuals receiving assistance under different
provisions of such Act, as determined by the Secretary: Provided further, That owners or sponsors of a
multifamily property receiving project-based rental assistance under section 8 of such Act may voluntarily
make a Family Self-Sufficiency program available to the assisted tenants of such property in accordance
with procedures established by the Secretary: Provided further, That such procedures established pursuant
to the previous proviso shall permit participating tenants to accrue escrow funds in accordance with section
23(d)(2) of such Act and shall allow owners to use funding from residual receipt accounts to hire
coordinators for their own Family Self-Sufficiency program;
(2) $35,000,000 shall be for the Resident Opportunity and Self-Sufficiency program to provide for supportive
services, service coordinators, and congregate services as authorized by section 34 of the United States
Housing Act of 1937 (42 U.S.C. 1437z-6) and the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.); and
10-6
GAD 47-463 05/03/2022
74
SELF-SUFFICIENCY PROGRAMS
(3) $20,000,000 shall be for a Jobs-Plus initiative, modeled after the Jobs-Plus demonstration: Provided,
That funding provided under this paragraph shall be available for competitive grants to public housing
authorities or owners or sponsors of multifamily properties receiving project-based rental assistance under
section 8, that, in partnership with local workforce investment boards established under section 107 of the
Workforce Innovation and Opportunity Act of 2014 (29 U.S.C. 3122), and other agencies and organizations
provide support to help public housing residents, or tenants residing in units assisted under a project-based
section 8 contract (including section 8(0)(13) of the United States Housing Act of 1937), obtain employment
or increase earnings, or both: Provided further, That applicants must demonstrate the ability to provide
services to such residents or tenants, partner with workforce investment boards, and leverage service dollars:
Provided further, That the Secretary may allow public housing agencies to request exemptions from rent and
income limitation requirements under sections 3 and 6 of the United States Housing Act of 1937 (42 U,S.C.
1437a, 1437d), as necessary to implement the Jobs-Plus program, on such terms and conditions as the
Secretary may approve upon a finding by the Secretary that any such waivers or alternative requirements
are necessary for the effective implementation of the Jobs-Plus initiative as a voluntary program for
residents: Provided further, That the Secretary shall publish by notice in the Federal Register any waivers
or alternative requirements pursuant to the preceding proviso no later than 10 days before the effective date
of such notice: Provided further, That the costs of any rent incentives as authorized pursuant to such waivers
or alternative requirements shall not be charged against the competitive grant amounts made available
under this paragraph.
Note.--A full-year 2022 appropriation for this account was not enacted at the time the budget was prepared;
therefore, the budget assumes this account is operating under the Continuing Appropriations Act, 2022
(Division A of P.L. 117-43, as amended). The amounts included for 2022 reflect the annualized level
provided by the continuing resolution.
10-7
GAD 47-463 05/03/2022
75
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Native American Programs
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 825,000 127,370 740,000 1,692,370 988,455 829,767
2022 Annualized CR 825,000 703,898 1,528,898 1,512,000 1,358,000
2023 President's Budget 1,000,000 16,000 1,016,000 1,006,000 1,119,000
Change rrom 2022 175,000 (687,898) (512,898) (506,000) (239,000)
al The table above reflecls only discretionary budget authority; mandatory authority for upward credit re-estimates is excluded,
bl Includes supplemental funds under the American Rescue Plan Act of 2021 (ARP Act)
cl 2020 into 2021 carryover includes $144K from recaptures,
PROGRAM PURPOSE
The Native American Programs account is the single largest source of funding for Indian housing
assistance. The programs funded under this account are the Indian Housing Block Grant (IHBG)
program, the Federal Guarantees for Financing Tribal Housing Activities program (also known as
the Title VI Loan Guarantee program), and the Indian Community Development Block Grant
(ICDBG) program. The IHBG program provides grants to Tribes and Tribally Designated Housing
Entities (TDHEs) to finance affordable housing construction and related community development.
The ICDBG program provides competitive grants to American Indian and Alaska Native
communities to help develop decent housing, a suitable living environment, and economic
opportunities, primarily for low- and moderate-income families.
The various programs funded under this account provide critical resources to tribal communities and
ensure that Native Americans have equitable access to safe, sustainable, and affordable housing and
essential services,
BUDGET OVERVIEW
The 2023 President's Budget requests $1 billion for Native American Programs, which is
$175 million more than the 2022 annualized CR level, The request includes funding for the following
activities:
• $772 million for IHBG formula grants
• $150 million for IHBG competitive grants
• $70 million for the ICDBG program
• $7 million for training and technical assistance
• $1 million for the Title VI Loan Guarantee program
Housing-related challenges can trigger significant mental health distress, Training and technical
assistance resources available in this account will be used to support HUD's department-wide effort
to reduce the impacts of housing-related challenges on mental and emotional well-being and improve
the experience of the Department's customers. HUD will coordinate validated, evidence-based
training for front-line housing professionals on the signs and symptoms of emotional distress and
11-1
GAD 47-463 05/03/2022
76
NATIVE AMERICAN PROGRAMS
mental health challenges. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
JUSTIFICATION
Housing Needs of American Indians and Alaska Natives in Tribal Areas
Federal investment in Native American Programs is critical to ensure the health and safety of tribal
communities. In January 2017, HUD published Housing Needs of American Indians and Alaska
Natives in Tribal Areas, a report that was based on the results of the most comprehensive, national
study of housing needs in Indian Country conducted since the enactment of the Native American
Housing Assistance and Self-Determination Act of 1996 (NAHASDA).1 The study found that the
physical housing problems for Indian households in tribal areas are much more severe than for U.S.
households on average. It estimated that between 42,000 and 85,000 Native Americans are "doubled
up." This means they are living with family or friends because they have no place else to stay and
would otherwise be staying in a homeless shelter, a place not meant for human habitation, or living
on the streets. In tribal areas, homelessness often translates into overcrowding, and 68,000 units of
new affordable housing are needed to replace substandard or overcrowded units. With few
exceptions, American Indian and Alaska Native communities rank below other groups when
comparing statistical indicators of social and economic well-being, including poverty rates.
The 2017 study found that, under NAHASDA, Indian Tribes have matched or exceeded the previous
rate of assisted housing production that was accomplished under predecessor HUD programs (before
1998). Tribal leaders and administrators that were interviewed for the study almost uniformly prefer
operations under NAHASDA to the prior system. The tenets of the tribal self-determination policy,
as embodied in the IHBG program, give Indian Tribes greater flexibility to tailor their affordable
housing programs to their local needs, and determine what types of services, programs, and projects
they will carry out. This approach has worked well in Indian Country, where geographies, climates,
customs, resources, and economic conditions vary widely. However, the 2017 study also found that
years of level funding for the IHBG formula has led to the reduced construction of new units and
expanded the number of rehabilitated units in order to reach a larger share of the families in need.
Separately, researchers also found ample evidence of partnerships among Indian Tribes and other
community stakeholders, not only to leverage funds, but also to: provide homebuyer education;
provide new homeowners with the skills to maintain their homes; improve home energy efficiency;
and provide training and employment in the building trades. To further these goals, HUD continues
to work diligently to disseminate information on best practices and strategies to leverage funds to
allow Indian Tribes and TDHEs to improve housing conditions in Indian Country.
Indian Housing Block Grant Program - Formula Grants
The Budget requests $772 million for the IHBG formula program, which is $125 million more than
the 2022 annualized CR level. The IHBG program is the primary means by which the Federal
Government fulfills its trust responsibilities to provide housing to Native Americans. Eligible IHBG
recipients are federally recognized Indian Tribes, TDHEs, and a limited number of State-recognized
Indian Tribes.
The IHBG program is the single largest source of funding for housing in Indian Country, where safe,
decent, and affordable housing is desperately needed. The flexibility of this self-determination
program enables Indian Tribes to design, develop, and operate their own affordable housing
1
Housing Needs of American Indians and Alaska Natives in Tribal Areas,
(https://www.huduser.gov/portal/publications/HNAIHousingNeeds.htrnl)
11-2
GAD 47-463 05/03/2022
77
NATIVE AMERICAN PROGRAMS
programs based on local needs and customs. IHBG funds can be leveraged to attract additional
financial resources, stabilize communities when families are able to live near their friends and
families, and spur economic development when funds can be spent in the local community. The
program substantially contributes to stabilizing communities and building healthy economies within
American Indian and Alaska Native communities, many of which are in rural areas where most of
the reservations are located. During the past fiscal year, individual grants have ranged in size from
about $74,000 to about $72 million, with a median grant of about $260,780.
In 2021, IHBG funds were used to build or acquire almost 350 affordable housing units and
substantially rehabilitate over 3,300 units. Since the inception of the IHBG program, IHBG funds
have been used to build or acquire almost 41,500 affordable housing units and rehabilitated more
than 105,000 units.
The IHBG formula allocation, developed in consultation with Tribes under statutorily mandated
negotiated rulemaking, is based on need and the number of existing housing units that were funded
under the U.S. Housing Act of 1937 (before NAHASDA was enacted). Each Tribe's need is calculated
using several weighted factors, such as the local population's income levels, condition of existing
housing, and level oflocal housing costs.
Since IHBG's inception 25 years ago, funding for the IHBG formula program has been largely level
funded and has not been able to keep up with general inflation and the increased costs of
construction materials and labor. Over this same period, funding for other housing programs
administered by the Federal Government have grown - in part to address these increases. Rising
costs require Tribes to use more funding to operate and maintain existing units, including the 38,000
units originally developed under the U.S. Housing Act of 1937. This, in combination with past flat
funding, severely limits the buying power of the IHBG program and its ability to make new housing
units available.
Indian Housing Block Grant Program - Competitive Grant
The Budget requests $150 million for the IHBG competitive program, which is $50 million more than
the 2022 annualized CR level. This competition will focus on projects that spur construction and
rehabilitation of housing units. It would give priority to projects that further climate resilience,
increase energy efficiency, improve water conservation, and sustain these improvements over a long
period.
Since December 2019, HUD has awarded a total of $300 million to 76 Indian Tribes and TDHEs to
construct approximately 1,550 new housing units and encourage economic opportunities in
distressed communities.
As part of the Administration's whole-of-government approach to the climate crisis, HUD's Budget
requests $1.065 billion (including this IHBG Competitive request) to assist communities to reduce
carbon pollution, increase resilience to the impact of climate change, and deliver environmental
justice. These investments are crucial to assist communities throughout the country to mitigate and
prepare for the worst effects of climate change.
Please see the "Climate Initiative" justification for more details.
Indian Community Development Block Grant Program
The Budget requests $70 million for the ICDBG program, which is equal to the 2022 annualized CR
level. This includes $66 million for single-purpose grants and up to $4 million for imminent threat
grants. The ICDBG program funds housing-related projects in Indian Country, such as the
construction of community buildings and the infrastructure necessary for housing developments.
11-3
GAD 47-463 05/03/2022
78
NATIVE AMERICAN PROGRAMS
Single purpose grants are awarded on a competitive basis and imminent threat funds are allocated
on a first-come, first-served basis for qualifying disasters and other emergencies.
In 2021, ICDBG funds were used to: construct an electrical distribution system; build a community
center; build a nursing center; extend powerlines in communities; build a water tower; and much
more. These activities have improved the physical environment where low- and moderate-income
Native American families live.
The ICDBG program provides much-needed funding for tribal infrastructure. The lack of basic
infrastructure, including running water and sewer systems, in some tribal communities left many
Native Americans particularly vulnerable during the COVID-19 pandemic. The effects have been
particularly devastating for many Native American communities, which have experienced
disproportionately higher rates of infection and death than the general population. This funding will
help Tribes to recover from COVID-19, as well as meet other community needs.
Training and Technical Assistance
The Budget requests $7 million for training and technical assistance, which is equal to the 2022
annualized CR level. These funds are used to help promote best practices that support development
in Indian Country and encourage innovative methods of construction, management, and finance
(e.g., the advantages of leveraging NAHASDA funds with other homeownership programs).
Additionally, these funds are used to help residents oflow-income housing to meet their needs and
achieve their financial goals.
Title VI Loan Guarantee Program
The Budget requests $1 million for the Title VI Loan Guarantee program, which is equal to the 2022
annualized CR level. The program encourages private lenders to finance tribal housing development
activities. A Tribe or TDHE pledges a share of its IHBG grant as security to leverage critical private
financing to fund large-scale housing projects. Historically, private lenders have been hesitant to
provide much needed capital on tribal lands. Programs like the Title VI Loan Guarantee program
allow Tribes and TDHEs to overcome these lending barriers by using their IHBG funds as collateral
to leverage private capital.
As of September 30, 2021, a cumulative total of 111 loans worth over $279 million have been
guaranteed to fund affordable housing and housing-related community development projects.
Throughout the history of the program, the average Title VI loan guarantee has been $2.4 million.
Between 2018 and 2021, annual loan guarantee firm commitments have averaged about $10 million.
The Title VI program has never experienced a default in its history.
Information Technology- Grants Evaluation and Management System
HUD continues to modernize its Information Technology (IT) systems to improve the administration
of tribal housing programs. In coordination with the Office of the Chieflnformation Officer, ONAP is
developing a new system, the Grants Evaluation and Management System (GEMS), to reduce the
administrative burden on grant recipients and PIH staff. The GEMS system was deployed on
February 19, 2022, and ONAP is in the process of migrating data from previous systems and
onboarding pilot grantees. The data migration and pilot grantee onboarding process in the live
system is expected to be completed in 2022.
11-4
GAD 47-463 05/03/2022
79
NATIVE AMERICAN PROGRAMS
SUMMARY O,F RESOURCES BY PROGRAM
(Dollars in Thousands)
Formula Graots 647,000 5,283 652,283 647,830 647,000 4,453 651,453 772,000
Loan Guarante""
Title VI (Credit
Subsidy) 1,000 5,703 6,703 1,208 1,000 5.495 6.495 1,000
Technical
Assistance 5,000 7,333 12,333 7,000 5,000 5,316 10,316 7,000
National or
Regional
Organization
NAIHC 2,000 2,000 4,000 2,000 4,000 6,000
Grants 100,000 91,013 191,013 96,013 100,000 95,000 195,000 150,000
Indian Communily
Dev elopmenl
Block Granl!l 70,000 10,555 80,555 3,706 70,000 76,849 146,849 70,000
Indian Housing
Block Grant-
CARES ACT 2,957 2,957 916 2,041 2,041
Indian Communily
Development
Block Grant-
CARES ACT 2,526 2,526 2,400 126 126
Indian Housing
Block Grant (ARP
Act) 450,000 450,000 219,382 230,618 230,618
Indian Communily
Development
Block Grant (ARP
Act) 280,000 280,000 280,000 280,000
Tmining and
Technical (ARP
AcQ 10,000 10,000 10,000
ONAP
Initiative
Total 1,565,000 127,370 1,692,370 988,455 825,000 703,898 1,528,898 1,000,000
al 2020 into 2021 carryover includes $144K !rum recaptures
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Legislative Proposal
The 2023 Budget supports the following legislative proposal and will seek changes through the
authorization process:
11-5
GAD 47-463 05/03/2022
80
NATIVE AMERICAN PROGRAMS
Flexibility for New Housing Construction by Indian Tribes in the ICDBG Program:
• Under current law, ICDBG funds cannot be used for new housing construction unless the
new housing construction is carried out by a community-based development organization
(CBD0). HUD proposes to eliminate the COBO requirement for Tribes administering ICDBG
grants.
• The CBD0 requirement is a holdover requirement from the broader CDBG program and is
not particularly compatible with the ICDBG program. Though a "CBD0" is defined broadly
in the ICDBG regulations to cover many types of organizations with a connection to housing
or community development, these types of organizations tend to be more prevalent in urban
settings. In many tribal communities, the only entities carrying out housing and community
development work are the tribal ICDBG grantees themselves. To receive a CBD0
designation under current policy, a Tribe, TDHE, or other tribal organization must spend
time and resources demonstratmg to HUD that they should be regarded as CBD0s before
they can be authorized to carry out new housing construction using ICDBG funds.
This provision is burdensome to tribal grantees and HUD, and it can serve as a major hurdle
to funding new housing construction in tribal communities at a time when there is a major
shortage of affordable housing in tribal communities.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
Native American Programs
(INCLUDING CANCELLATIONS)
For activities and assistance authorized under title I of the Native American Housing Assistance and
Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4111 et seq.), title I of the Housing and
Community Development Act of 1974 with respect to Indian tribes (42 U.S.C. 5306(a)(l)), and related
training and technical assistance, $1,000,000,000, to remain available until September 30, 2027:
Provided, That the amounts made available under this heading are provided as follows:
(1)$772,000,000 shall be available for the Native American Housing Block Grants program, as
authorized under title I of NAHASDA: Provided, That, notwithstanding NAHASDA, to determine the
amount of the allocation under title I of such Act for each Indian tribe, the Secretary shall apply the
formula under section 302 of NAHASDA with the need component based on single-race census data
and with the need component based on multi-race census data, and the amount of the allocation for
each Indian tribe shall be the greater of the two resulting allocation amounts;
(2) $150,000,000 shall be available for competitive grants under the Native American Housing Block
Grants program, as authorized under title I of NAHASDA- Provided, That the Secretary shall
obligate such amount for competitive grants to eligible recipients authorized under NAHASDA that
apply for funds: Provided further, That in awarding such amount, the Secretary shall consider need
and administrative capacity, shall give priority to projects that will spur construction and
rehabilitation of housing, and may give priority to projects that improve water or energy efficiency or
increase climate or disaster resilience for housing units owned, operated, or assisted by eligible
recipients authorized under NAHASDA- Provided further, That any funds transferred for the
necessary costs of administering and overseeing the obligation and expenditure of such amounts in
prior Acts may also be used for the necessary costs of administering and overseeing such amounts;
11-6
GAD 47-463 05/03/2022
81
NATIVE AMERICAN PROGRAMS
(3) $1,000,000 shall be for the cost of guaranteed notes and other obligations, as authorized by title VI
of NAHASDA: Provided, That such costs, including the cost of modifying such notes and other
obligations, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended:
Provided further, That funds made available in this and prior Acts for the cost of such guaranteed
notes and other obligations, that are unobligated, including recaptures and carryover, are available to
subsidize the total principal amount of any notes and other obligations, any part of which is to be
guaranteed, not to exceed $50,000,000, to remain available until September 30, 2024: Provided
further, That any remaining loan guarantee limitation authorized for this program in fiscal year
2020 or prior fiscal years is hereby permanently cancelled;
(4) $70,000,000 shall be available for grants to Indian tribes for carrying out the Indian Community
Development Block Grant program under title I of the Housing and Community Development Act of
1974, notwithstanding section 106(a)(1) of such Act, of which, notwithstanding any other provision of
law (including section 203 of this Act), up to $4,000,000 may be used for emergencies that constitute
imminent threats to health and safety: Provided, That not to exceed 20 percent of any grant made with
funds appropriated under this paragraph shall be expended for planning and management
development and administration; and
(5) $7,000,000, in addition to amounts otherwise available for such purpose, shall be available for
providing training and technical assistance to Indian tribes, Indian housing authorities, and tribally
designated housing entities, to support the inspection of Indian housing units, contract expertise, and
for training and technical assistance related to funding provided under this heading and other
headings under this Act for the needs of Native American families and Indian country: Provided,
That of the funds made available under this paragraph, not less than $2,000,000 shall be available
for a national organization as authorized under section 703 of NAHASDA (25 U.S.C. 4212): Provided
further, That amounts made available under this paragraph may be used, contracted, or competed as
determined by the Secretary: Provided further, That notwithstanding the provisions of the Federal
Grant and Cooperative Agreements Act of 1977 (31 U.S.C. 6301-6308), the amounts made available
under this paragraph may be used by the Secretary to enter into cooperative agreements with public
and private organizations, agencies, institutions, and other technical assistance providers to support
the administration of negotiated rulemaking under section 106 of NAHASDA (25 U.S.C. 4116), the
administration of the allocation formula under section 302 of NAHASDA (25 U.S.C. 4152), and the
administration of performance tracking and reporting under section 407 of NAHASDA (25 U.S.C.
4167).
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
11-7
GAD 47-463 05/03/2022
82
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Indian Housing Loan Guarantee Fund (Section 184)
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 2,000 8,548 10,548 2,818 1,537
2022 Annualized CR 2,000 7,740 9,740 3,716 2.900
2023 President's Budget 5,521 6,024 (2,400) 9,145 6,021 4,800
Change from 2022 3,521 (1,716) (2,400) (595) 2,305 1,900
al The table above reflects only discretionary budget authority; mandatory authority for upward reestimates and interest is excluded.
PROGRAM PURPOSE
The Indian Housing Loan Guarantee Fund (also known as the Section 184 program) is a loan
guarantee program that facilitates homeownership and increases access to capital for American
Indian and Alaska Native families, Indian Tribes, and Tribally Designated Housing Entities
(TDHEs). The Section 184 program provides an incentive for private lenders to make market-rate
home mortgages available to Native Americans by guaranteeing 100 percent of the unpaid principal
and interest due in the event of a loan default. In January 2017, HUD published Housing Needs of
American Indians and Alaska Natives in Tribal Areas. 1 According to the study, overcrowding and a
lack of available housing are major challenges for many Tribal communities. By providing the loan
guarantee, the Section 184 program helps increase the supply of housing, which in turn helps relieve
overcrowding in Indian Country.
BUDGET OVERVIEW
The 2023 President's Budget requests $5.5 million for the Section 184 program, which is $3.5 million
more than the 2022 annualized CR level. It includes $5.5 million for credit subsidy. It does not
include funding for administrative contract expenses, which has sufficient carryover funding to
support 2023 activities. The credit subsidy will support up to $1.1 billion in new loan commitment
authority to remain available until September 2024 at a subsidy rate of 0.5 percent, which includes a
projected volume increase associated with a legislative proposal to expand program eligibility (see
the Legislative Proposal section below for more information). HUD requests $1.4 billion in overall
commitment authority in the event that actual volume is higher than projected; this additional
increment could be funded by using unobligated credit subsidy balances from prior years.
The request for a two-year appropriation intends to: 1) mitigate disruption in operations during the
transition from one year to the next; 2) reduce operational challenges in the event of a short-term
continuing resolution; and 3) allow the new loan origination system, Native Advantage, which
released its first module in 2022, to continue automated processes during the transition from one
year to the next. This change will minimize the potential disruption to Native American families
trying to become homeowners.
1 Housing Needs of American Indians and Alsska Natives in Tribal Areas: A &port From the Assessment of
American Indian, Alaska Native, and Native Hawaiian Housing Needs
(https:l/www.huduser.gov/portal/publicationslHNAIHousingNeeds.htrnl)
12-1
GAD 47-463 05/03/2022
83
INDIAN HOUSING LOAN GUARANTEE FUND (SECTION 184)
The administrative contract expenses will support data integrity efforts to resolve outstanding Office
oflnspector General findings, costs associated with data management for subsidy rate analysis,
contractual needs for legal information services, and interim data dashboards for management
analysis.
JUSTIFICATION
The Section 184 program is the primary vehicle to access mortgage capital in Indian Country,
supporting Departmental priorities of assisting underserved communities and promoting
homeownership. The program allows eligible borrowers from across the income spectrum the
opportunity to purchase quality housing by guaranteeing home mortgages provided by private
lenders. Tribes and TDHEs can also use the program to diversify the type of housing in Indian
Country by developing housing for homeownership or long-term rentals, without affordability
restrictions.
The Section 184 program maximizes a relatively minimal Federal investment by insuring thousands
ofloans each year and by expanding markets for lenders. In a typical year, demand ranges between
3,000 and 4,000 loans. Lenders get the guarantee by making mortgage loans to purchase, construct,
refinance, and rehabilitate single-family housing on trust or restricted land, in Tribal areas of
operation, as well as on fee simple land in Indian Country.
In January 2017, HUD published Mortgage Lending on Tribal Land. 2 The report showed that the
Section 184 program has helped address the functional market barrier to private lending presented
by Tribal trust land. Historically, Native Americans have had limited retail banking opportunities
and limited access to private mortgage capital, primarily because much of the land in Indian
Country is held in trust by the Federal Government. Before a lien can be placed on a property, it
must receive Federal approval through the U.S. Department of the Interior's Bureau oflndian
Affairs.
To meet program demand and reduce reliance on Federal appropriations, HUD started collecting a
1.5 percent up-front fee in 2014 and a 0.15 percent annual fee starting in 2015. In 2017, HUD
increased the annual fee to 0.25 percent, while keeping the up-front fee at 1.5 percent.
In 2021, program demand remained steady. Lenders requested slightly more than 4,800 case
numbers, which resulted in 3,652 firm commitments (or "loan approvals"). These firm commitments,
in turn, resulted in 3,133 loan guarantees in 2021. Between October 1, 2021, and March 1, 2022,
HUD has issued 1,764 loan guarantees and anticipates demand to continue to be high for the
remainder of the fiscal year.
Since the inception of the Section 184 program in 1992, HUD has obligated funds to guarantee
approximately 49,000 loans with a loan level over $8.0 billion. By encouraging lenders to serve
Native communities, the Section 184 program helps increase the marketability and value of Native
assets, strengthens the financial standing of a traditionally underserved population, and helps
ensure housing equity for Native American homebuyers.
HUD continues to make progress towards modernizing the Section 184 program. Under the Office of
the Chieflnformation Officer's leadership, the Office of Public and Indian Housing (PIH) is
developing Native Advantage, which is a multi-year information technology modernization initiative.
2 Mortgage Lending on Tribal Land: A Report from the Assessment of American Indian, Alaska Native, and
Native Hawaiian Housing Needs
(https://www.huduser.gov/portal/publications/NAHSC-Lending.html)
12-2
GAD 47-463 05/03/2022
84
INDIAN HOUSING LOAN GUARANTEE FUND (SECTION 184)
When fully deployed, it will cover all loan functions, from origination to claims and loan closeout.
The Claims Module, which was released in December 2021, allows lenders, servicers, and Office of
Native American Programs (ONAP) staff to submit, edit, and track claims. The Loan Origination
Module, which will be released later in 2022, will enable lenders to submit loan guarantee
documents electronically.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Loan Guarant/le
Credi! Subsidy 1,500 4,315 5,615 2,498 1,500 3,326 4,826 5,521
Skilled Workers
Loan Credi!
Subsidy 1,727 1,727 1,727 1,727
Administrative
Contract
Expenses 500 2,506 3,006 321 500 2,687 3,187
Total 2,000 B,548 10,548 2,818 2,000 7,749 9,740 5,521
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language
The 2023 President's Budget includes the following:
As HUD plans to align the Indian Housing Loan Guarantee Program (184) authority with other
HUD credit programs, HUD requests loan limitation for a two-year period. The remaining balances
of no-year subsidy budget authority and loan limitation are proposed to be cancelled. The proposal to
cancel prior-year subsidy budget authority and associated loan limitation will in no way impact the
volume ofloans the Department can guarantee or its continued ability to meet program demand.
Legislative Proposals
The 2023 Budget supports the following legislative proposals and will seek changes through the
authorization process:
• Service Area Expansion. This proposal would amend the Section 184 authorizing statute to
permit HUD to expand the program service area to all Tribal members, regardless of where
they purchase a home. While the original program served only Tribal members on
reservation/trust lands, an expansion initiated in the early 2000s to include HUD-designated
"Indian areas" resulted in a service area covering approximately 75 percent of the total
Native American population. This patchwork approach has led to sometimes arbitrary
geographic disparities in eligibility; for example, an eligible family would be able to use the
Section 184 program for a home located in Michigan, but not a comparable home located just
over the border in Ohio. To reduce these disparities, HUD proposes to remove these
geographic restrictions, which would allow the remaining 25 percent of Native Americans in
the country to use a Section 184 loan to purchase or refinance their home. The credit subsidy
funding for the service area expansion is incorporated into the 2023 Budget request,
12-3
GAD 47-463 05/03/2022
85
INDIAN HOUSING LOAN GUARANTEE FUND (SECTION 184)
• 40-Year Mortgages. This proposal would authorize HUD to guarantee mortgages up to 40
years in length, when seeking to modify a loan to avoid foreclosure. The proposal will permit
Section 184 loss mitigation options to align with those offered by the Federal Housing
Administration.
• Indemnification Authority. A planned rulemaking will permit lenders in the Section 184
program to underwrite loans for closing without prior HUD review (in other words, "direct
endorsement" of the loans). HUD seeks indemnification authority to require the lender to
accept the loss (rather than HUD) when the lender closes noncompliant loans. HUD
anticipates this will improve performance and accountability of the program.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT
(INCLUDING CANCELLATIONS)
For the cost of guaranteed loans, as authorized by section 184 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a),$5,521,000, to remain available until expended:
Provided, That such costs, including the costs of modifying such loans, shall be as defined in section
502 of the Congressional Budget Act of 1974: Provided further, That funds made available in this and
prior Acts for the cost of guaranteed loans, as authorized by section 184 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13a), that are unobligated, including
recaptures and carryover, are available to subsidize total loan principal, any part of which is to be
guaranteed, up to $1,400,000,000, to remain available until September 30, 2024: Provided further,
That any remaining loan guarantee limitation authorized under this heading in fiscal year 2020 or
prior fiscal years is hereby permanently cancelled: Provided further, That any amounts determined by
the Secretary to be unavailable are hereby returned to the General Fund of the Treasury of the United
States.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
12-4
GAD 47-463 05/03/2022
86
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Native Hawaiian Housing Block Grant
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 2,000 85 5,000 7,085 7,000 7,917
2022 Annualized CR 2,000 502 2,502 2,251 6,000
2023 Presidenfs Budget 10,000 251 10,251 10,251 5,000
Change from 2022 8,000 (251) 7,749 8,000 (1,000)
al 2021 Supplemental funds are from the American Rescue Plan Act of 2021 (ARP Act),
PROGRAM PURPOSE
The Native Hawaiian Housing Block Grant (NHHBG) program funds a wide range of affordable
housing activities on Native Hawaiian home lands. Eligible activities include new construction,
rehabilitation, acquisition, infrastructure, and various support services. In addition, funds can be
used to provide rental assistance to eligible Native Hawaiians residing on or off Hawaiian home
lands. The sole recipient is the State of Hawaii's Department of Hawaiian Home Lands (DHHL).
BUDGET OVERVIEW
The 2023 President's Budget requests $10 million for the NHHBG program, which is $8 million more
than the 2022 annualized CR level. This investment will help increase the production of and access
to affordable housing for Native Hawaiian families, as well as address the needs identified in the
2017 Housing Needs of Native Hawaiians Report. 1
JUSTIFICATION
In May 2017, HUD published Housing Needs of Native Hawaiians. According to the report, Native
Hawaiians, and other Pacific Islanders account for 39 percent of the State's overall homeless
population despite only representing 10 percent of the State's population. In addition, Native
Hawaiians have lower incomes, higher poverty rates, and lower educational attainment rates than
other residents of Hawaii.
Since the inception of the program, funds have been primarily for housing development activities
(e.g., infrastructure to support new homeownership units). Now, DHHL is using more of their funds
on individual homeowner financing (e.g., for new home construction and homeowner rehabilitation),
rental housing assistance, and housing counseling. The development activities support HUD
priorities of assisting underserved communities and increasing the production of affordable housing.
1 Housing Needs of Native Hawaiians: A Report from the Assessment of American Indian, Alaska Native, and
Native Hawaiian Housing Needs (https://www.huduser.gov/portaVpublications/housing-needs-native-
hawaiians.html)
13-1
GAD 47-463 05/03/2022
87
NATIVE HAWAIIAN HOUSING BLOCK GRANT
In 2019, the Governor of Hawaii approved new administrative rules for DHHL that allow
multifamily complexes and rental housing units to be built on the Hawaiian home lands. In
response, DHHL has also shifted its focus to increasing future rental housing opportunities for
Native Hawaiian families.
Between 2002 and 2021, DHHL used NHHBG funds to help build, acquire, and rehabilitate
748 affordable homes and develop infrastructure improvements to approximately 693 lots to
construct affordable homes. Funds have also been used to rehabilitate community centers, provide
housing counseling, financial literacy training, and self-help home repair training to over 2,900
families.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Grani,, (A RP Act) 5,000 5,000 SJJOO
Total 7,000 ll5 7,065 7,000 2,000 502 10,000
al Includes supplemen!al funds under the American Rescue Plan Act of 2022 (ARP Act).
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
None.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For the Native Hawaiian Housing Block Grant program, as authorized under title VIII of the Native
American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4221 et seq.),
$10,000,000, to remain available until September 30, 2027; Provided, That notwithstanding section
812(b) of such Act, the Department of Hawaiian Home Lands may not invest grant amounts made
available under this heading in investment securities and other obligations; Provided further, That
amounts made available under this heading in this and prior fiscal years may be used to provide
rental assistance to eligible Native Hawaiian families both on and off the Hawaiian Home Lands,
notwithstanding any other provision of law.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
13-2
GAD 47-463 05/03/2022
88
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Public and Indian Housing
Native Hawaiian Loan Guarantee Fund (Section 184A)
SUMMARY OF RESOURCES
(Dallam in Thousands)
2022 Annualized CR 5,926 5,926
2023 President's Budget 5,926 (5,926)
Change lrom 2022 (5,926) (5,926)
PROGRAM PURPOSE
The Native Hawaiian Housing Loan Guarantee Fund (also known as the Section 184A program)
offers Native Hawaiians homeownership, property rehabilitation, and new construction
opportunities on Hawaiian home lands. By incentivizing private lenders with a 100 percent
guarantee in the event of a loan default, the Section 184A program increases access to private
financing for Native Hawaiians.
BUDGET OVERVIEW
The 2023 President's Budget requests no funding for credit subsidy budget authority and rescinds
$5.9 million in previously appropriated credit subsidy for the Native Hawaiian Housing Loan
Guarantee Fund (the Section 184A program). The Section 184A program continues to guarantee
loans on a negative subsidy basis, which is a function of the historically low default and high
recovery rates. In addition, it proposes to align the Section 184A program with other credit programs
by clearly specifying a loan limitation level every year based on estimated demand.
In 2023, the Section 184A program is requesting $28.0 million in loan guarantee commitment
authority, including authority to guarantee refinance loans. In the Appropriations Acts for 2012
through 2015, the Congress provided HUD with the authority to guarantee refinance loans under
the Section 184A program. While the program has been operating under a negative subsidy rate
since 2017 and has not needed additional appropriations, HUD projects that refinance loan
guarantee commitment authority will be exhausted by the second quarter of 2023 given current
program activity and estimates. Without this specific authority, HUD will no longer be able to
guarantee refinance loans under the Section 184A program.
JUSTIFICATION
The Section 184A program expands the market for lenders and ensures access to private-market
mortgages for a traditionally underserved population, supporting the Departmental priority of
promoting homeownership. Private financing is used to cover construction or acquisition costs, while
Federal funding is used only to guarantee payment in the event of a default. Eligible borrowers
include Native Hawaiian families who are eligible to reside on the Hawaiian home lands, the
Department of Hawaiian Home Lands (DHHL), the Office of Hawaiian Affairs, and organizations
experienced in the planning and development of affordable housing for Native Hawaiians.
14-1
GAD 47-463 05/03/2022
89
NATIVE HAWAIIAN LOAN GUARANTEE FUND (SECTION 184A)
The existence of the Hawaiian home lands is a distinctive feature of the housing situation for
members of the Native Hawaiian community. The home lands are managed by DHHL with oversight
provided by the U.S. Department of the Interior. The Congress established a homesteading program
in 1921 to support the self-sufficiency and well-being of Native Hawaiians. This program strengthens
and broadens the Federal housing safety net for people in need, improves housing choices and
greater economic opportunity and promotes climate resilience, environmental justice, and energy
efficiency across the housing sector. These public trust lands are meant to be leased to eligible
Native Hawaiian beneficiaries for residential, agricultural, and pastoral purposes in homestead
communities. However, the trust status of the land prevented most lenders from providing
mortgages, as trust land is inalienable and cannot be used as collateral. The Section 184A program
helps to address this problem by providing a 100-percent guarantee to lenders in cases of default.
When the program switched to negative subsidy, the $5.9 million of subsidy remaining as no-year
carryover was no longer needed to issue new loans. As HUD plans to align the Native Hawaiian
Loan Guarantee Program (184A) authority with other HUD credit programs, HUD requests loan
limitation for a two-year period. The remaining balances of no-year subsidy budget authority and
loan limitation are proposed to be cancelled. The proposal to cancel prior-year subsidy budget
authority and associated loan limitation will in no way impact the volume of loans the Department
can guarantee or its continued ability to meet program demand.
Since 2005 (when program activity began), HUD has guaranteed approximately 809 loans worth
$206.0 million. Of this amount, 55 loans worth approximately $16 million were guaranteed in 2021.
Based on the current economic climate, HUD anticipates guaranteeing loans worth approximately
$17 million in both 2022 and 2023.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Loan Guarantee
Credi! Subsidy 5,926 5,926 5,926 5,926 (5,926)
5,926 5,926 5,926 5,926 (5,926)
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Legislative Proposals
The 2023 Budget supports the following legislative proposals and will seek changes through the
authorization process:
• 40-Year Mortgages: HUD proposes authority to guarantee mortgages up to 40 years in
length, when seeking to modify a loan to avoid foreclosure. The proposal will permit Section
184A loss mitigation options to align with those offered by the Federal Housing
Administration.
• Indemnification Authority: A planned rulemaking will permit lenders in the Section 184A
program to underwrite loans for closing without prior HUD review (in other words, "direct
14-2
GAD 47-463 05/03/2022
90
NATIVE HAWAIIAN LOAN GUARANTEE FUND (SECTION 184A)
endorsement'' of the loans). HUD seeks indemnification authority to require the lender to
accept the loss (rather than HUD) when the lender closes noncompliant loans.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
NATIVE HAWAIIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT
(INCLUDING CANCELLATIONS)
New commitments to guarantee loans, as authorized by section 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13b), any part of which is to be guaranteed, shall not
exceed $28,000,000 in total loan principal, to remain available until September 30, 2024: Provided,
That the Secretary may enter into commitments to guarantee loans used for refinancing: Provided
further, That any unobligated balances, including recaptures and carryover, remaining from amounts
made available under this heading in prior Acts and any remaining loan guarantee limitation
associated with such amounts in such prior Acts are hereby permanently cancelled.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
14-3
GAD 47-463 05/03/2022
91
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Community Planning and Development
Housing Opportunities for Persons With AIDS (HOPWA)
SUMMARY OF RESOURCES
(Dollars in Thousands)
430,000 148,349 403,387
455,000 174,962 629,962 533,374
Change !mm 2022 25,000 26,613 51,613 129,987 (30,121)
PROGRAM PURPOSE
The Housing Opportunities for Persons With AIDS (HOPWA) program provides stable and
permanent housing assistance and supportive services to one of the most vulnerable populations -
low-income people living with Human Immunodeficiency Virus (HIV). This population often faces
housing instability as well as other life and medical challenges, including mental health and
substance abuse issues as well as discrimination and stigma that create barriers to needed services
(authorized per the AIDS Housing Opportunity Act (42 U.S.C. 12901-12912)).
BUDGET OVERVIEW
The 2023 President's Budget requests $455 million for HOPWA, which is $25 million more than the
2022 annualized CR level. Ninety percent of the funding is distributed by formula to qualifying
States and metropolitan areas, and the remaining funds will be distributed by competitive selection
of innovative model projects that address special issues or populations through the award of Special
Projects of National Significance. To encourage innovation in addressing emerging needs and to
ensure competitive grants can be made available to States and local governments and private non-
profit entities with a fair process for projects to serve areas that do not qualify for a formula
allocation, the Budget eliminates a provision that requires priority renewal of competitive grants
funded in 2010 or prior years.
JUSTIFICATION
The HOPWA program exists to strengthen and broaden t,he Federal housing safety net and provide
support for underserved communities, focusing Federal resources on saving lives by meeting the
housing needs of low-income people living with IDV who are without stable housing arrangements.
HOPWA's targeted funding request advances equity by ensuring the appropriate needs-based
distribution of funds, helps address negative impacts resulting from COVID-19, and bolsters efforts
to end the HIV epidemic in the United States by 2030.
HOPWA assistance covers households experiencing homelessness or those at risk of homelessness,
by providing permanent or temporary housing assistance; short-term rent, mortgage, and utility
(STRMU) payments; and the operation of housing facilities. These housing efforts ensure access to
affordable housing so that beneficiaries achieve housing stability, which helps reduce their risk for
homelessness, support their access to treatment and other healthcare, and reduce HIV transmission
a significant consideration for Federal IDV prevention efforts.
15-1
GAD 47-463 05/03/2022
92
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
HO PWA-assisted households vary by community, depending on the types of assistance provided,
funding levels, attrition levels, and grantee program design. At $455 million, HUD estimates that
communities will be able to provide access to affordable housing for approximately 45,640
economically vulnerable households living with HIV. 1 In addition to affordable housing, an
estimated 62,430 households will receive supportive services and 236,531 households will receive
housing information services to ensure housing stability.
Housing Assistance and Housing Development: The below chart shows the percentage of HOPWA
households receiving different types of housing assistance:
Percentage of Households Served by Type of Housing Assistance in 2020
Facility Based
Transitional Housing
Permanent Housing 7%
Placement
11% Tenant Based Rental
Assistance
36%
Facility Based
Permanent Housing
12%
Facility Based
Permanent Housing Short-term Rent,
Development Mortgage, and Utility
1% Assistance
33%
• Tenant-Based Rental Assistance: Ongoing long-term rental assistance.
• Facility-based housing: Both Transitional and Permanent facility housing to assist
individuals and households with significant health and life challenges that impede their
ability to live independently.
• Facility-based housing development: Expected development of facility-based housing,
reported in the year it becomes operational.
• Short-term Rent, Mortgage, and Utility Assistance: Homeless prevention services providing
short-term assistance to address an immediate crisis and prevent households from becoming
homeless by maintaining occupation in their current residence.
Permanent Housing Placement: One-time support for first month rent and deposits to
secure permanent housing.
1The method used in calculating the projected household numbers is as follows: Three years of national (formula
and competitive) HOPWA performance data is averaged to create a baseline for performance. The most recent
cost per unit from the performance profile (2020) is inflated based on internal projections from the Office of
Policy Development and Research and applied to the baseline across multiple funding scenarios and housing
activities. Household estimates reflect past HOPWA performance across eligible activities, projected
appropriation scenarios, and rising costs per unit in upcoming fiscal years.
15-2
GAD 47-463 05/03/2022
93
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
Supportive Services and Housing Information Services: In addition to housing assistance, grantees
can use HOPWA funding for supportive services and housing information services; these activities
focus on improving housing access and stability for HOPWA-assisted households. The delivery of
supportive housing often requires partnerships between HOPWA grantees and project sponsors
consisting of local networks of non-profit, faith-based, and housing and homeless assistance
organizations. Eligible supportive services include housing case management, transportation, mental
health services, substance abuse treatment, and employment training. These critical supportive
services help sustain housing stability, promote better health outcomes, and increase beneficiaries'
quality of life. This includes beneficiaries who transition to the unsubsidized private housing market
or other affordable housing which does not provide supportive services, such as placement in the
Housing Choice Voucher program. HOPWA-funded housing information services often include
housing search support staff and development of housing search websites and tools to assist
households in finding appropriate, affordable units.
Evidence-Based Outcomes
HOPWA grants increase housing stability for beneficiaries, which leads to improved access to care
and support and better health outcomes. HUD works with any poor performers to address barriers in
program design or implementation issues preventing the achievement of HOPWA performance
standards. According to HOPWA grantee reports, in 2021:
• 98 percent of clients receiving tenant-based rental assistance achieved housing stability.
• 97 percent of clients placed in a permanent housing facility achieved housing stability.
• 68 percent of clients receiving transitional or short-term housing facilities assistance achieved
housing stability.
Access to Care: HOPWA data shows high levels of connection to care. The infographic below shows
2021 HOPWA grantee reporting data.
Percentage of Households who Accessed or Maintained Access to Care
100% 95% 95%
91% 91%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Has a Housing Plan Had Contact with a Case Had Contact with Primary Accessed Medical Insurance
Manager Care
Multiple studies have found that lack of stable housing is one of the most significant factors limiting
the use of antiretroviral medications regardless of insurance, substance abuse, and other factors.
Ryan White HIV/AIDS Program data show that clients in unstable housing situations are less likely
to be virally suppressed. In 2020, 76.8 percent of unstably housed clients were virally suppressed,
15-3
GAD 47-463 05/03/2022
94
HOUSING OPPORTUNITIES FOR PERSONS WITHAJDS (HOPWA)
compared to 89.4 percent of all Ryan White clients.2 Housing interventions improve stability and
connection to care, providing the essential foundation for participating in antiretroviral treatment
and achieving a suppressed or undetectable viral load. Research shows that when people living with
HIV attain and maintain an undetectable viral load, they have effectively no risk of sexually
transmitting HIV. 3
Moreover, HOPWA assistance safeguards the national investment in HIV care. The HUD-CDC joint
Housing and Health study - a peer-reviewed, multi-site randomized trial undertaken to examine the
health, housing, and economic impacts of providing HOPWA assistance to homeless and unstably
housed people living with HIV - found that HOPWA housing assistance efficiently and effectively
helped to improve the health outcomes of people living with HIV and their families. This study of
HOPWA and other supportive housing programs for people living with HIV found that housing was
associated with 41 percent fewer visits to emergency departments, a 23 percent reduction in
detectable viral loads, and a 19 percent reduction in unprotected sex with partners whose HIV status
was negative or unknown. 4
Stable housing leads to cost savings by reducing transmission rates and thus driving down overall
costs attributable to the U.S. HIV epidemic. Estimates indicate the annual direct costs of HIV
medications are between $22,000 and $54,000 per person per year, depending on the severity of an
individual's infection.• Lifetime treatment costs per person are estimated to have a present value of
$420,285. 6
In a recent population-based study in San Francisco, people experiencing homelessness with HIV
had 27 times higher odds of death compared to those with housing. 7 In addition, homeless or
unstably housed people living with HIV have been shown to be more likely to demonstrate frequent
and prolonged use of high-cost, hospital-based emergency or inpatient services, as compared to those
who are stably housed. Research conducted in Chicago showed that homeless people living with HIV
had significantly improved medication adherence, health outcomes, and viral loads when provided
HOPWA housing assistance, as compared to those who remained homeless or unstably housed.
Moreover, substantial cost savings were achieved by reducing emergency care and nursing services
for this population. 8
2 Health Resources and Services Administration. Ryan White HIV/AIDS Program Annual Client-Level
Data Report 2020. www.hab.hrsa.gov/data/data-reports. Published December 2021.
3 Rodger AJ, Cambiano V, Bruun T, et al. (2019) PARTNER Study Group. Risk of HIV transmission through
condomless sex in serodifferent gay couples with the HIV-positive partner taking suppressive antiretroviral
therapy (PARTNER): final results of a multicentre, prospective, observational study. Lancet 393(10189): 2428-
2438.
4 Kidder, Daniel. (2009). The Housing and Health Study: Background, Methods, and Outcomes. Presentation at
National AIDS Housing Coalition Conference.
5 Schackman, B.R., Fleishman, J.A., Su, A.E., Berkowitz, B.K., Moore, R.D., Walensky, R.P., Becker, J.E., Voss,
C., Paltiel, A.D., Weinstein, M.C., Freedberg, K.A., Gebo, K.A., Losina, E. (2015). The lifetime medical cost
savings from preventing HIV in the United States. Medical care, 53(4), 293-301.
6 Bingham, A., Shrestha, R.K., Khurana, N., Jacobson, E.U., Farnham, P.G. (2021). Estimated Lifetime HIV-
Related Medical Costs in the United States. Sexually Transmitted Diseases, 48, 299-304, updated to 2019
dollars.
7 Spinelli, M.A., Hessol, N. A., Schwarcz, S., Hsu, L., Parisi, M. K., Pipkin, S., Scheer, S., Havlir, D., &
Buchbinder, S. P. (2019). Homelessness at diagnosis is associated with death among people with HIV in a
population-based study of a US city. AIDS (London, England), 33(11), 1789--1794.
8 Sadowski, L., Kee, R., VanderWeele, T., Buchman, D. (2009). Effect of a housing and case management
program on emergency department visits and hospitalization among chronically ill homeless adults. Journal of
the American Medical Association (JAMA), 301(17), 1771-1778.
15-4
GAD 47-463 05/03/2022
95
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
Impact of COVID-19
The COVID-19 pandemic has had a negative effect on HIV testing, linkage to care, and treatment
access. In the space of weeks during February and March 2020, the HIV care system changed from
one that linked and retained patients into care to one that paused or limited in-person clinical visits
for patients with chronic diseases. Although the HIV care system began reopening by May 2021 for
most patients with chronic illness, the impact of this paradigm shift for HIV testing, prevention and
care is anticipated to set back HIV epidemic control efforts for some time. 9 National experts suggest
that the disruption of these and other HIV-related healthcare services has likely resulted in
increased HIV incidence, morbidity, and mortality. As a result of these health system disruptions,
the COVID-19 pandemic could result in a 10 percent increase in HIV-related deaths over the next
five years. 10
HOPWA-funded housing assistance and supportive services are critical for lessening the impacts of
these disruptions and ensuring low-income people living with HIV remain stably housed and
connected to care and other needed services. Unstable housing and higher rates of congregate living
situations among people living with HIV have been linked to increased susceptibility to COVID-19. 11
As unstable housing negatively impacts health and treatment for people living with HIV, an eviction
crisis can significantly increase COVID infections for people living with HIV and exacerbate co-
occurring health and social morbidities. 12 Furthermore, counties with high rates of COVID-19
infections are also areas with high rates of new HIV infections. 13 The 2023 Budget will help alleviate
the additional burdens associated with unstable housing for people living with HIV during the
ongoing COVID-19 pandemic.
Advancing Equity
The demographics of the HIV epidemic in the US continue to trend toward a more disproportionate
impact, as evidenced by the rate of new HIV diagnoses for Black/African American and
Hispanic/Latino communities. The modernized HOPWA formula helps address this disproportionate
impact (i.e., advance equity in the program) by ensuring the appropriate, need-based distribution of
funds for an HIV epidemic that has migrated disproportionately into communities with higher levels
of poverty. To stay ahead of this trend and to ensure race, gender, and sexual orientation equity
across HOPWA programs, HUD established a team in 2021 to review equity of the HOPWA
program, including equity implications of the shifting formula resources. HUD introduced a phased
Technical Assistance (TA) Initiative for HOPWA Race, Gender, and LGBTQ+ Equity to ensure all
low-income people living with HIV have equitable, unfettered access to HOPWA housing and
services. This TA initiative will assist HOPWA grantee communities in assessing their HOPWA
9 Brown, L.B., Spinelli, M.A., & Gandhi, M. (2021). The interplay between HIV and COVID-19: summary of the
data and responses to date. Current opinion in HIV and AIDS, 16(1), 63-73.
https://doi.org/10.1097/COH.0000000000000659
10 Eisinger, R. W., Lerner, A. M., & Fauci, A. S. (2021). HIV/AIDS in the Era of COVID-19: A Juxtaposition of
Two Pandemics. The Journal of infectious diseases, jiabl14. Advance online publication.
https://doi.org/10.1093/infdis/jiabll4
11 Sachdev, D., Mara, E., Hsu, L., Sclleer, S., Rutherford, G., Enanoria, W., & Gandhi, M. (2021). COVID-19
Susceptibility and Outcomes Among People Living With HIV in San Francisco. Journal of acquired immune
deficiency syndromes, 86(1), 19-21. https://doi.org/10.1097/QAI.0000000000002531
12 Dery, M., Barr, M., Feldman, B. (2020) COVID-19, HIV, and Housing Instability. [PowerPoint slides] AETC
National Coordinating Resource Center. https://aidsetc.org/resource/covid-19-hiv-and-housing-instability
13 Luan, H., Song, I., Fiellin, D. A., & Ransome, Y. (2021). HIV Infection Prevalence Significantly Intersects
With COVID-19 Infection At the Area Level: A US County-Level Analysis. Journal of acquired immune
deficiency syndromes, 88(2), 125-131. https://doi.org/10.1097/QAl.0000000000002758
15-5
GAD 47-463 05/03/2022
96
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
program's ability to measure and address equity and will provide tools for grantee communities to
improve their systems. In addition, the 2020 HOPWA Notice of Funding Opportunity (NOFO) and
the 2021 HOPWA Renewal/Replacement Notice were both published in 2021 with rating criteria that
required applicants to be responsive to racial equity in their applications and planned projects that
will operate through at least 2024. The planned 2023 NOFO will also include rating criteria related
to racial and LGBTQ+ equity.
Addressing Risk
The 2023 Budget helps address several operational, staffing, and information technology challenges
that pose risks to carrying out the HOPWA mission. For example:
• Current law account language requires expiring competitive permanent housing grants to be
renewed. The inability of non-competitive renewal communities to implement new projects
means that there is limited opportunity for funding new grants in communities which are now
more severely impacted by the epidemic than the current renewal grants. Please see the
Legislative Proposals and General Provisions section of the HOPWA program justification for
more details.
• Amended priority renewal provision in 2021, which allowed for competitive grantees to apply for
a "replacement" option, increased workload and grant management responsibilities without fully
addressing the programmatic mission concern of ensuring best practices in communities
experiencing HIV epidemics. Please see the Community Planning and Development Salary and
Expenses section of the 2023 President's Budget for more details.
• Current HOPWA grantee reporting is paper-based and carries risks for HUD's ability to monitor
and report on program effectiveness, higher likelihood of reporting error, and overall lower
quality data for the program. To respond to this need in the short term, HUD is utilizing an
interim solution for HOPWA grantees using widely accessible software. Please see the
Community Planning and Development Salary and Expenses (Office of Special Needs, data
contract) section of the 2023 President's Budget for more details.
National HIV Strategy
The National HIV/AIDS Strategy (2022-2025), released in December 2021, is a roadmap for ending
the HIV epidemic in the United States by 2030. By 2025, the Strategy aims to reduce new HIV
infections by 75 percent and reduce homelessness among people living with HIV by 50 percent. HUD
staff from the Office of HIV/AIDS Housing and other HUD offices continue to work on the
development of agency action items to meet these ambitious goals. These action items have involved
a coordinated, cross-department approach that focuses on improving housing stability and health
outcomes for people living with HIV and those at risk for HIV. Closely aligned and complementary to
it is the Ending the HIV Epidemic Initiative, which is currently focused on leveraging the powerful
data and tools now available to reduce HIV infections in jurisdictions hardest hit by HIV/AIDS. The
Office of HIV/AIDS Housing has engaged in planning and data sharing discussions with HHS and
the 57 targeted States and counties to ensure HOPWA data and resources are accessible and
available to strengthen the Federal housing safety net for people in need and support this initiative.
Information Technology
The Office of HIV/AIDS Housing continues to work collaboratively on operational improvement
initiatives across all Community Planning and Development program offices with a goal of
streamlining processes including grantee risk analysis, monitoring, grant making, and tracking. In
addition, the program office continues efforts on a HOPWA data strategy to streamline the flow of
quality data between systems and processes from planning, through the drawing of grant funds,
15-6
GAD 47-463 05/03/2022
97
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
accomplishment reporting, and close out. This effort includes continuing to work with the systems
contractors to identify improvements to the current data collection functionality to enhance the
quality of data received from grantees.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Formula Grants 387,000 182,273 569,273 478,293 387,000 90,980 477,980 409,500
Competitive Grants 43,000 41.1)48 84,048 27,069 43,000 56,979 99,979 45,500
Technical
Assistance
CARES Act
Formula Grants 16,190 16,190 16,190
CARES Act
Competiive Grants 383 383 383 383
Total 430,000 239,901 669,901 521,552 430,000 148,349 578,349 455,000
Note, 2020 Canyover Into 2021 column includes $14 thousand of recaptured competitive grants funds in 2021,
Distribution of Funds by Grantee
The distribution of HOPWA funds for 2021, 2022 and 2023 (requested) appropriations are shown
below.
Estimated HOPWA Formula Funding by Grantee (Dollars in Thousands)
State HOPWA 2021 2022 Annualized 2023
Formula Grantee Actual CR Pres. Bude:et
AL Alabama $2,823 $3,689 $3,904
AL Birmingham $1,541 $1,513 $1,601
AR Arkansas $1,031 $1,202 $1,271
AR Little Rock $627 $890 $942
AZ Arizona $442 $524 $555
AZ Phoenix $3,399 $4,568 $4,834
AZ Tucson $842 $884 $935
CA Anaheim $2,841 $3,113 $3,294
CA Bakersfield $709 $890 $942
CA California $4,467 $4,306 $4,556
CA Fresno $714 $837 $886
CA Los Angeles $20,734 $20,826 $22,036
CA Oakland $3,234 $3,241 $3,430
CA Riverside $3,607 $3,832 $4,055
CA Sacramento $1,627 $1,667 $1,764
CA San Diego $5,253 $5,370 $5,682
CA San Francisco $7,041 $6,707 $7,097
CA San Jose $1,553 $1,579 $1,671
CA Santa Rosa $455 $460 $486
co Colorado $811 $1,052 $1,113
co Denver $2,882 $3,522 $3,727
CT Bridgeport $975 $984 $1,041
15-7
GAD 47-463 05/03/2022
98
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
Estimated HOPWA Formula Funding by Grantee (Dollars in Thousands)
State HOPWA 2021 2022 Annualized 2023
Formula Grantee Actual CR Pres. Bude-et
CT Connecticut $272 $271 $286
CT Hartford $1,217 $1,201 $1,271
CT New Haven $1,133 $1,133 $1,199
DC District of Columbia $11,174 $11,235 $11,888
DE Delaware $336 $343 $362
DE Wilmington $824 $830 $878
FL Cape Coral $672 $681 $720
FL Deltona $612 $632 $669
FL Florida $4,473 $4,523 $4,786
FL Ft Lauderdale $7,088 $6,890 $7,290
FL Jacksonville $2,601 $2,600 $2,751
FL Lakeland $754 $772 $817
FL Miami $11,925 $12,143 $12,848
FL North Port $644 $657 $696
FL Orlando $4,587 $4,729 $5,004
FL Palm Bay $487 $500 $529
FL Port St Lucie $723 $717 $759
FL Tampa $4,378 $4,487 $4,747
FL West Palm Beach $3,203 $3,100 $3,280
GA Atlanta $22,712 $12,420 $13,142
GA Augusta-Richmond County $1,042 $870 $921
GA Georgia $4,344 $5,553 $5,876
HI Hawaii $270 $270 $286
HI Honolulu $664 $660 $699
IA Iowa $800 $831 $880
IL Chicago $10,915 $10,919 $11,554
IL Illinois $2,157 $2,201 $2,329
IN Indiana $1,737 $1,854 $1,962
IN Indianapolis $1,792 $2,012 $2,129
KS Kansas $642 $661 $700
KY Kentucky $1,001 $1,189 $1,258
KY Louisville $1,083 $1,332 $1,409
LA Baton Rouge $2,534 $1,921 $2,033
LA Louisiana $2,491 $2,999 $3,173
LA New Orleans $3,826 $3,401 $3,599
MA Boston $3,248 $3,231 $3,419
MA Lowell $2,024 $2,118 $2,241
MA Massachusetts $366 $345 $365
MA Springfield $727 $738 $780
MA Worcester $694 $700 $741
MD Baltimore $8,275 $6,334 $6,703
MD Frederick $1,688 $1,625 $1,719
MD Maryland $547 $528 $559
MI Detroit $3,053 $3,096 $3,276
MI Michigan $2,013 $2,151 $2,276
MI Warren $977 $1,175 $1,243
MN Minneapolis $1,946 $2,608 $2,759
15-8
GAD 47-463 05/03/2022
99
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
Estimated HOPWA Formula Funding by Grantee (Dollars in Thousands)
State HOPWA 2021 2022 Annualized 2023
Formula Grantee Actual CR Pres. Budget
MN Minnesota $284 $369 $391
MO Kansas City $1,829 $1,872 $1,981
MO Missouri $984 $1,014 $1,073
MO St Louis $2,607 $2,713 $2,871
MS Jackson $1,429 $1,411 $1,493
MS Mississippi $1,877 $2,306 $2,440
NC Charlotte $3,030 $3,115 $3,297
NC Durham $543 $923 $976
NC Fayetteville .. $724 $766
NC Greensboro $600 $1,071 $1,133
NC North Carolina $4,053 $3,512 $3,716
NC Wake County $1,024 $1,403 $1,485
NC Winston-Salem $710 $713 $754
NE Nebraska $683 $720 $762
NJ Camden $1,138 $1,141 $1,207
NJ Jersey City $2,381 $2,218 $2,346
NJ Lakewood Township .. $1,934 $2,046
NJ New Jersey $1,670 $1,661 $1,757
NJ Newark $5,768 $5,083 $5,379
NJ Paterson $1,804 $1,808 $1,913
NM Albuquerque $556 $569 $602
NM New Mexico $535 $603 $639
NV Las Vegas $2,166 $2,968 $3,140
NV Nevada $445 $467 $494
NY Albany $717 $716 $757
NY Brookhaven Town $2,266 $2,271 $2,403
NY Buffalo $856 $881 $933
NY New York $2,701 $2,914 $3,084
NY New York City $43,482 $39,920 $42,241
NY Rochester $1,003 $983 $1,040
NY Syracuse $413 $418 $443
OH Cincinnati $1,281 $1,621 $1,716
OH Cleveland $1,774 $2,025 $2,143
OH Columbus $1,585 $2,174 $2,300
OH Dayton $542 $625 $661
OH Ohio $1,832 $1,908 $2,019
OK Oklahoma $463 $482 $510
OK Oklahoma City $1,004 $1,129 $1,195
OK Tulsa $667 $686 $726
OR Oregon $611 $628 $665
OR Portland $1,797 $1,807 $1,912
PA Allentown $531 $540 $571
PA Bensalem Township $853 $864 $914
PA Harrisburg $494 $499 $528
PA Pennsylvania $2,170 $2,160 $2,285
PA Philadelphia $7,474 $7,479 $7,914
PA Pittsburgh $1202 $1,219 $1,290
15-9
GAD 47-463 05/03/2022
100
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
Estimated HOPWA Formula Funding by Grantee (Dollars in Thousands)
State HOPWA 2021 2022 Annualized 2023
Formula Grantee Actual CR Pres. Bude:et
PR Puerto Rico $2,284 $2,264 $2,396
PR San Juan Municipio $6,130 $5,532 $5,853
RI Providence $1,275 $1,300 $1,376
SC Charleston $917 $1,018 $1,078
SC Columbia $1,593 $1,618 $1,712
SC Greenville $680 $732 $775
SC South Carolina $2,529 $2,577 $2,726
TN Memphis $3,488 $3,013 $3,188
TN Nashville-Davidson $1,737 $2,069 $2,190
TN Tennessee $1,776 $1,894 $2,004
TX Austin $2,099 $2,254 $2,385
TX Dallas $7,944 $8,093 $8,563
TX El Paso $704 $926 $980
TX Fort Worth $1,904 $2,133 $2,258
TX Houston $10,885 $11,150 $11,798
TX San Antonio $2,295 $2,594 $2,745
TX Texas $5,593 $6,470 $6,847
UT Salt Lake City $675 $803 $850
UT Utah $273 $293 $310
VA Richmond $1,500 $1,715 $1,814
VA Virginia $1,375 $1,512 $1,600
VA Virginia Beach $2,178 $2,558 $2,707
WA Seattle $3,150 $3,208 $3,394
WA Washington $1,301 $1,337 $1,414
WI Milwaukee $1,099 $1,239 $1,311
WI Wisconsin $877 $921 $974
WV West Virginia $623 $667 $706
Total Formula $387,000 $387,000 $409,500
Total Competitive $43,000 $43,000 $45,500
Total Appropriation $430,000 $430,000 $455,000
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Change
The 2023 President's Budget includes the following:
Remove the Priority Renewal Provision: The Department proposes deleting the priority renewal
provision for permanent housing competitive grants. Removal of this mandate will ensure the 10
percent of HOPWA funding designated by statute as "Competitive" is used for its intended purposes
of developing new and innovative models to address disease trends and ensuring States that do not
meet population or demographic requirements for formula allocations still receive fair access to
HOPWA funds. This change is necessary because most HOPWA competitive funds are used to fund
the same 82 projects and same organizations that were first awarded those grants in the 1990s and
early 2000s. Currently these 82 HOPWA competitive grants receive priority for renewal and non-
renewal communities and stakeholders have few opportunities for new projects. Of the 82 renewal
grants, 31 are anticipated to be eligible for renewal in 2023 at approximately $35.8 million. Renewal
15-10
GAD 47-463 05/03/2022
101
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
grants based on outdated models are limited in demonstrating effectiveness to meet current need,
and replacement grants to the same grantees in the same locations limit HOPWA dollars from
reaching potentially higher-need, higher-capacity grantee areas (i.e., those communities more
severely impacted by the epidemic than current grantees).
The Department requested the removal of the priority renewal language as part of the 2020-2022
President's Budgets.
• The 2020 House Appropriations Committee report dir~cted the Department to work with
communities to prepare to implement this change in the future. The Office ofHIV/AlDS Housing
followed that directive and met in person with AlDS housing advocates, community
stakeholders, and more than a dozen competitive renewal grantees to address this possible
change in the competitive grant process. HUD has received and analyzed co=unity and
grantee feedback based on the Committee directive; this feedback will inform the
implementation of the competitive grant changes.
• The appropriations account language was revised in 2021 to include an option for renewal-
eligible grantees (only) to "replace" their grant with other grant activities. Of the 24 renewal
applications received, three elected to request replacement activities and were funded for those
new activities.
• Stakeholder and Congressional concerns are limited to the 82 grantee communities subject to
losing current guaranteed priority renewal. Specific concerns will be addressed in the
competitive Notice of Funding Opportunity (NOFO) process including ensuring fair but
competitive funding for States and territories that do not receive HOPWA formula funds,
consideration for development projects where HOPWA renewal funds have been committed for
longer terms, provision of technical assistance, and ensuring local formula grantees collaborate
with renewal projects transitioning to a competitive process.
Legislative Proposal
The 2023 Budget supports the following legislative proposal and will seek changes through the
authorization process:
HUD proposes a change to allow HOPWA grantees flexibility in providing short-term housing
payment assistance to (a) people who are currently experiencing homeless instead of the statutory
requirement that this activity only prevent homelessness and (b) people assessed to require rent or
utilities payments up to 24 months instead of the statutory requirement limiting the activity to 21
weeks in a 52-week period. These flexibilities will give communities the ability to address housing
needs for those living with HIV who are currently homeless, especially when combined with other
HOPWA activities and non-HOPWA resources and will also ensure people are able to receive
assistance for longer durations when needed to achieve housing stability and prevent homelessness.
The Department requested the expansion ofHOPWA short-term housing assistance terms in its
2019-2022 President's Budgets.
• Stakeholder support is very high for this provision and is, in fact, in direct response to HOPWA
grantee requests. Grantees have reported that 21 weeks is often too limited for establishing
housing stability for high-risk households living with HIV, and that people who are currently
experiencing homelessness cannot receive short-term rent and utilities assistance through
HOPWA even when coupled with permanent housing placement from HOPWA or another
source.
15-11
GAD 47-463 05/03/2022
102
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
• The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a provision that
allows HOPWA grantees flexibility of providing assisted households with up to 24 months of
rent, mortgage, and utility payments. Stakeholder response has been overwhelmingly positive to
this flexibility, as it has worked to ensure housing stability for eligible households during the
COVID-19 health and economic crises. The provision of short-term payment assistance
represents the most-utilized HOPWA CARES Act activity during the first year of
implementation.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For carrying out the Housing Opportunities for Persons with AIDS program, as authorized by the
AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.), $455,000,000, to remain available until
September 30, 2024, except that amounts allocated pursuant to section 854(c)(5) of such Act shall
remain available until September 30, 2025.
Note.--A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
15-12
GAD 47-463 05/03/2022
103
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Community Planning and Development
Community Development Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
3,475,000 3,750,891 4,994,500 12,220,391 10,768,000
2023 President's Budget 3,770,000 3,597,683 7,367,683 7,301,482 10,942,000
Change fi'om 2022 295,000 (153,208) (4,994,500) (4,852,708) (1,321,226) 174,000
al Canyover into 2021 includes $26 billion of Disaster Assistance, $3 billion of CARES Act, and $808 thousand in recaptured funds.
bl 2022 Supplemental includes $5 billion of disaster funding enacted in the 2022 Continuing Resolution (P ,L, 117-43), net a transfer of $5,5 million to Salaries
and Expenses.
PROGRAM PURPOSE
The Community Development Fund (CDF) is the broadest domestic development assistance program
in the U.S. Government portfolio. Its largest program, the Community Development Block Grant
(CDBG) program, develops viable urban and rural communities by expanding economic opportunities
and improving quality oflife principally for low- and moderate-income persons. The program
provides annual grants to more than 1,200 recipients, including large cities, urban counties, States,
Puerto Rico, and the U.S. Territories. All cities and towns in the United States can potentially
receive CDBG funding, either from HUD directly or through their respective State.
BUDGET OVERVIEW
The 2023 President's Budget requests $3. 77 billion for the Community Development Fund, which is
$295 million above the 2022 annualized CR level. The Budget for the CDF includes funding for the
following sub-components:
• CDBG Entitlement Program ($2.5 billion - increase of $70 million)
• CDBG Non-Entitlement Program ($1.1 billion - increase of $30 million)
• CDBG Insular Program (no change)
Section 8071 Recovery Housing Program (no change)
• Historically Underserved Communities initiative (new initiative - increase of $195 million)
The Budget will further the Administration's priority of advancing community development in an
equitable manner. The Budget requests $195 million in targeted CDBG funding to be directed
toward removing barriers to affordable housing and community development in underserved
communities. This funding will forward the Administration's commitment to advancing racial equity
and supporting underserved communities through affordable housing, economic recovery, and
environmental justice.
JUSTIFICATION
Communities use CDBG funds for projects initiated and developed at the local level based on local
needs, priorities, and benefits. There are 26 statutory eligible activities that include public facilities,
16-1
GAD 47-463 05/03/2022
104
COMMUNITY DEVELOPMENT FUND
infrastructure, housing, economic development, and planning. Each activity must also meet a
National Objective of either: 1) benefitting low- and moderate-income persons; 2) eliminating slums
or blight; or 3) addressing urgent needs for community health and safety.
CDBG funding is often used in association with other HUD grants for projects that further the
Administration's policy priorities of strengthening and broadening the Federal housing safety net for
people in need, advancing housing equity by improving housing choices and greater economic
opportunity, supporting underserved communities, and advancing sustainable communities by
promoting climate resiliency and energy efficiency across the housing sector. In 2021, the program
provided funding for:
• Housing-related activities that served nearly 53,000 families, including direct
homeownership assistance and rehabilitation of homes;
• More than 20,000 individuals to find permanent employment or to keep the full-time jobs
they were at risk of losing;
• Improvements to homeless facilities serving more than 10,000 people; and,
• Public services, including senior services, operating costs of homeless and AlDS patients
programs, food banks, services for the disabled, transportation services, and general health
or mental health services, nearly 1.4 million people.
The Budget will advance the equity goal of the Administration by helping sustain the continued
recovery from the coronavirus pandemic and ensuring that the recovery is equitable across
geographic, racial, and socioeconomic demographics. As grantees deplete their supplemental CDBG
coronavirus response (CDBG-CV) funds appropriated through the CARES Act, additional CDBG
funds will allow grantees to address community needs that existed prior to the pandemic and those
vulnerabilities exposed or exacerbated by the pandemic's economic effects. Support for the CDF will
enable CDBG grantees to address the broadest risk, as identified in Executive Orders, of failing to
adequately support economic recovery from the impacts of the coronavirus and doing so in an
equitable manner. An inequitable and incomplete recovery would leave communities without enough
resources to serve their residents and make them less resilient in responding to future economic
shocks.
Communities predominantly expend CDBG funds for housing-related activities and public
improvements. In addition to families served through the housing activities highlighted above, public
improvements such as streets, sidewalks, parks, and water and sewer systems served more than
36 million people in 2021. Under the CDBG formula, 70 percent offunding goes to the urban
entitlement program, and 30 percent goes to the State program. In the rural and suburban
communities in the State CDBG program, the main expenditure is for public improvements. In
addition to the State and Entitlement programs, pursuant to the Housing and Community
Development Act of 1974, the CDF contains $7 million for the Insular Areas.
16-2
GAD 47-463 05/03/2022
105
COMMUNITY DEVELOPMENT FUND
These investments in community development are frequently made in conjunction with other
funding. CDBG is often used for gap financing to add the final necessary funds for a project to be
successful. HUD requests that grantees report on leveraged funds, as well as public-private
partnerships, to demonstrate local investment. CDBG investments reported leveraging an average of
$3.64 for every $1 of grant funding during 2020, amplifying the CDBG program's return on
investment with $3.41 billion in other resources.
To encourage local leverage of CDBG funds, pending proposed rulemaking will enhance grantees'
ability to use CDBG funds, particularly for economic development. The proposed rule would establish
mandatory financial underwriting requirements for economic development and housing loan
activities, expand the regulatory definition of slum and blight to allow grantees greater flexibility in
undertaking economic development projects, incorporate several eligibility changes not currently
codified in HUD's CDBG regulations, and modernize various provisions regarding grantee public
citizen participation requirements. The rule also proposes to allow funds to be used for targeting
emerging markets, revise the criteria for national objectives in mixed-used developments, and
modernize and simplify the public benefit standards for economic development activities. The
updated regulations seek to strengthen timeliness measures while finding ways to incentivize high
performing and entrepreneurial grantees. Lastly, the proposed rule would update definitions and
streamline reporting requirements.
The effectiveness of CDBG funding is evident in the accomplishments of the program. The table
below demonstrates those accomplishments from 2005 through 2021. In addition, the relative cost of
activities and the impacts of funding changes are expressed by the number of beneficiaries served for
every $100 million of CDBG investment in each category.
16-3
GAD 47-463 05/03/2022
106
COMMUNITY DEVELOPMENT FUND
During its 45-year history, the impact of the CDBG program has been strained by increasing
numbers of qualifying entitlement grantees and the declining value of CDBG appropriations in real
dollars (see graphic below). For example, the 2021 enacted appropriation of $3.45 billion represents
approximately one quarter of the funding level in 1975 when adjusted for inflation, while the number
of grantees has doubled.
16-4
GAD 47-463 05/03/2022
107
COMMUNITY DEVELOPMENT FUND
CDBG History: Funding. Inflation & the Number
CDBG Funds for Historically Underserved Communities
The Budget requests $195 million to target resources to spur equitable development and the removal
of barriers to revitalization in up to 100 of the most historically underserved communities in the
United States. The Historically Underserved Communities initiative will provide additional grants
to CDBG grantees to target these neighborhoods and to identify and address regulatory, structural,
and capacity barriers to revitalization. These barriers include deteriorating infrastructure, economic
disinvestment, limited or lack of neighborhood amenities, exclusionary zoning, harmful land use
policies, outdated building codes, complicated permitting processes, and insufficient capacity for
implementation of Federal funding and community development. Such barriers are historically
linked to racial segregation, limited labor mobility, disproportionate climate change and
environmental contamination effects on communities of color, economic disparities, and the racial
wealth gap. Underserved communities often have disproportionate housing needs, deteriorating
infrastructure, and fewer neighborhood amenities.
HUD would award grants of equal size to 100 CDBG grantees based on formula criteria that identify
eligible neighborhoods within those jurisdictions. In developing the formula, HUD would consider
factors such as persons in poverty, persons in poverty in areas with concentrated poverty or
concentrated vacancy, and/or evidence of residential displacement oflow-income tenants. Grantees
would use place-based solutions to address the barriers to revitalization in the identified
neighbor hoods.
As part of a HUD grantee's comprehensive community development strategy, jurisdictions are
required to submit Consolidated Plans, which must include an assessment of housing needs and
explain whether there are regulatory or public policy barriers to developing, maintaining, or
improving affordable housing. This initiative would help CDBG grantees with underserved
communities focus on and create model approaches for removing those barriers at the neighborhood
level.
16-5
GAD 47-463 05/03/2022
108
COMMUNITY DEVELOPMENT FUND
The criteria for the formula would be based on the goals of the initiative, including: identifying
barriers to affordable housing and equitable community development, such as exclusionary zoning,
harmful land use policies, and unnecessarily complicated permitting practices; increasing affordable
housing supply and neighborhood amenities in underserved communities; reducing residential and
commercial vacancy and blight through innovative housing and community development solutions
including adaptive reuse, rehabilitation, mixed use development, and conversion to affordable
multifamily homeownership units; and improving infrastructure, community resilience, and
economic revitalization, to foster thriving communities while retaining and increasing the affordable
housing supply. The initiative would not only encourage grantees to address existing barriers but
also seed future revitalization and elevate improved models of CDBG-funded community
development.
Grantees could use awards for eligible CDBG activities that further the initiative's goals, including
real property acquisition, public infrastructure improvements, and environmental remediation. HUD
would structure the program to provide incentives for grantees that chose to undertake additional
planning activities related to policies and approaches to eliminating barriers that inhibit affordable,
fair housing and prevent housing supply production and equitable community development. The
incentives would allow those grantees to develop approaches to improve their housing and
community development strategies and to incorporate flexibilities into their local regulations and
practices to promote equitable development and innovative housing solutions (such as planning to
streamline complicated permitting processes). This strategic community-development approach
would also prevent displacement from market forces and lead to increased community-led
investment in disinvested communities.
Section 8071 Recovery Housing Program
The Pilot Program to Help Individuals In Recovery From a Substance Use Disorder Become Stably
Housed (Recovery Housing Program), was authorized under Section 8071 of the Support for Patients
and Communities (SUPPORT) Act. The Recovery Housing Program (RHP) allows States and the
District of Columbia to provide stable, transitional housing for individuals in recovery from a
substance-use disorder. The funding covers a period of not more than two years or until the
individual secures permanent housing, whichever is earlier. The Further Consolidated
Appropriations Act of 2020 (Public Law 116-94), under the Title II Community Development Fund,
allocated $25 million for the RHP. The Consolidated Appropriations Act, 2021 (Public Law 116-260),
under the Title II Community Development Fund, allocated an additional $25 million for the RHP.
The program has allocated funds to 28 grantees whose age-adjusted rate of drug overdose deaths was
above the national rate in 2016 (2020 grantees) or 2018 (2021 grantees). The 28 grantees, some of
which have received two allocations, include 27 States and the District of Columbia. The President's
2022 Budget requested a third appropriation of $25 million.
Non-Community Development Funds Roles of the Office of Block Grant Assistance
CDBG also provides a statutory and regulatory structure that can be used by the Federal
Government to quickly allocate funds to local communities for a wide range of community
development initiatives. For example, Congress has frequently used the existing CDBG
infrastructure to respond to long-term disaster recovery needs. Community Planning and
Development (CPD) administers the following programs that uses the existing CDBG framework:
• CD BG-CV funds ($5 billion) to prevent, prepare for, and respond to coronavirus, made
available through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act);
16-6
GAD 47-463 05/03/2022
109
COMMUNITY DEVELOPMENT FUND
• Supplemental appropriations of CDBG funds ($47.5 billion during the past five years) for
long term recovery to affected communities of major natural disasters that occur within the
United States, as CDBG-Disaster Recovery (CDBG-DR) funds; and,
• Emergency assistance of approximately $7 billion to stabilize communities with high rates of
abandoned and foreclosed homes due to the 2008 financial crisis, through the Neighborhood
Stabilization Program (NSP).
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
EnfitiemenVNon-
Entitlement 3,443,000 1,337,144 4,780,144 4,170,439 3,443,000 604,349 4,047,349 3,543,000
Insular Area CDBG
Program 7,000 7,000 14.000 5.018 7.000 8,982 15,982 7,000
indian Tlibes 930 930
Special Purpose
(Section 107)
Grant, 41 41 41 41
Economic
Development
lniiativ e Grantl 379 379 379 379
Cisaster
Assistance 26,328,237 26,328,237 23,283,510 4,994,500 3,050,083 8,044,583
Section 805
EcDnomlc
Development
Training 360 360 11 349 349
Recovery Housing
(SUPPORT) 25,000 24,500 49,500 7,592 25,000 41,908 66,908 25,000
HislJrically
Underserved
Communities 195.000
CARES
Program 3,231,877 3,231,877 3.187,077 44,800 44,800
CARES Act
Technical
Assistance 5,000 5,000 5,000
Total 3,475,000 30,935,468 34,410,468 30,658,647 8,469,500 3,750,891 12,220,391 3,770,000
al Carryover into 2021 includes $808 lhousand in recaptured funds.
b/ 2022 Supplemental includes $5 billion of disaster funding enacted in the 2022 ConUnuing Resolution (P.L 117-43), net a transfer of $5.5 million to Salaries
and Expenses.
cl 2021 Carryover into 2022 excludes $903 thousand in expired funds
16-7
GAD 47-463 05/03/2022
110
COMMUNITY DEVELOPMENT FUND
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
The 2023 Budget proposes a targeted increase for the CDBG program of $195 million for up to
100 grants to States and local governments for additional activities to identify and remove barriers
to revitalization faced by underserved communities in deteriorating or deteriorated neighborhoods.
The neighborhoods and places to receive allocations will be established in accordance with a formula
based on factors that may include persons in poverty, persons in poverty in areas with concentrated
poverty or concentrated vacancy, and other factors. HUD would structure the program to provide
incentives for grantees that chose to undertake additional planning activities and would not be
subject to the 20 percent limitation for planning and management development and administration.
The language requested in the Budget is intentionally broad to allow for flexibility in program
design.
General Provisions
The 2023 President's Budget proposes the following new general provision(s):
• Formula Grant Corrections: HUD requests authority to correct formula errors for any HUD
formula program on a prospective basis by offsetting amounts from any previously overpaid
grantee(s)' award(s) in the current fiscal year and distributing those funds to grantees in the
current fiscal year that previously received less formula funding than they would have as a
result of the error in the prior fiscal year. (2023 President's Budget, Section 235)
The 2023 President's Budget re-proposes the following general provision that was enacted in the
2021 appropriations bill:
• Preventing the termination of a metropolitan city's entitlement community status. (2023
President's Budget, Section 218)
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes through the
authorization process:
• HUD supports a permanent, reliable framework for disaster recovery and authorizing of
CDBG-DR. The Department looks forward to discussing CDBG-DR in 2023 with the
Congress. Please see the CDBG-DR CJ for more details.
• HUD also proposes to require a State to create compliance standards for its review and
audits of recipient units of general local government to ensure that the local government is
spending funds in accordance with the State's community development plan, has satisfied its
performance criteria, and is carrying out activities in a timely manner. This proposal would
also remove a superseded requirement for a unit of general local government to comply with
a housing assistance plan.
• HUD proposes to amend section 104 of the Housing and Community Development Act of
1974 (HCD Act) so that if a metropolitan city or urban county does not have capacity to
16-8
GAD 47-463 05/03/2022
111
COMMUNITY DEVELOPMENT FUND
administer its grant, HUD may permit the State to administer the grant on behalf of the
metropolitan city or urban county. This tool would provide an option for a low-capacity
entitlement that is not within an urban county to remain in the entitlement program while
working to increase its capacity.
• Paired with the proposal on State compliance authority, HUD proposes to amend section 106
to raise the State grantee administration fee cap from 3 percent to 6 percent to provide
resources to support greater accountability and technical assistance for non-entitled local
governments. This section retains the State matching requirement for the administration of
funds. The purpose of this proposed amendment is to support States with maintaining
capacity to operate the program and to track local revolving funds and other program income
over time. This is an identified area of weakness in the CDBG program, evidenced by major
monitoring findings with multimillion-dollar resolutions in several States.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For carrying out the community development block grant program under title I of the Housing and
Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.) (in this heading "the Act'?,
$3,770,000,000, to remain available until September 30, 2025, unless otherwise specified: Provided,
That unless explicitly provided for under this heading, not to exceed 20 percent of any grant made
with funds made available under this heading shall be expended for planning and management
development and administration: Provided further, That a metropolitan city, urban county, unit of
general local government, or insular area that directly or indirectly receives funds under this heading
may not sell, trade, or otherwise transfer all or any portion of such funds to another such entity in
exchange for any other funds, credits, or non-Federal considerations, but shall use such funds for
activities eligible under title I of the Act: Provided further, That notwithstanding section 105(e)(l) of
the Act, no funds made available under this heading may be provided to a for-profit entity for an
economic development project under section 105(a)(l 7) unless such project has been evaluated and
selected in accordance with guidelines required under subsection (e)(2) of section 105: Provided
further, That of the amount provided under this heading, $195,000,000 shall be for up to 100 grants
to state and local governments for additional activities under such title I for the identification and
removal of barriers to revitalization faced by underserved communities in deteriorating or
deteriorated neighborhoods with the greatest need, as determined by the Secretary: Provided further,
That the Secretary shall establish by notice a formula identifying the neighborhoods eligible for such
additional assistance, based on factors that may include the number or relative share of persons in
poverty, the number or relative share of persons in poverty in areas with concentrated poverty or
concentrated vacancy, and other factors: Provided further, That a state or local government
responsible for carrying out title I activities within the eligible neighborhood shall be given the
opportunity to apply for such assistance: Provided further, That such funds shall not be subject to the
20 percent limitation for planning and management development and administration: Provided
further, That in administering such amounts the Secretary may waive or specify alternative
requirements to sections 105 and 106 of the Act (42 U.S. C. 5305 and 5306) except for requirements
related to fair housing, nondiscrimination, labor standards, the environment, and requirements that
activities benefit persons of low- and moderate-income, upon a finding that such a waiver is necessary
to expedite or facilitate the use of such amount: Provided further, That of the amount provided under
this heading, $25,000,000 shall be for activities authorized under section 8071 of the SUPPORT for
Patients and Communities Act (Public Law 115--271): Provided further, That the funds allocated
pursuant to the preceding proviso shall not adversely affect the amount of any formula assistance
received by a State under this heading: Provided further, That the Secretary shall allocate the funds
16-9
GAD 47-463 05/03/2022
112
COMMUNITY DEVELOPMENT FUND
for such activities based on the notice establishing the funding formula published in 84 FR 16027
(April 17, 2019).
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
16-10
GAD 47-463 05/03/2022
113
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Community Planning and Development
Community Development Loan Guarantee
SUMMARY OF RESOURCES
(Dollars in Thousands)
2022 Annualized CR
2023 Presidents Budget
Change from 2022
Note: The table above reflects only discretionary budget authority and outlays; mandatory authority for upward reestimates and interest is excluded.
PROGRAM PURPOSE
The Community Development Loan Guarantee Program, also known as the Section 108 Loan
Guarantee Program, provides Federal guarantees to private lenders to assist communities in
undertaking large community or economic development projects.
BUDGET OVERVIEW
The 2023 President's Budget requests $300 million in loan guarantee authority for the Community
Development Loan Guarantee program, which is equal to the 2022 annualized CR level. With the
implementation of the congressionally approved fee structure for the Section 108 program, HUD is
again requesting zero credit subsidy in 2023 to support this program. Instead of requesting a credit
subsidy, HUD will support loans in 2023 through the imposition of a fee assessed on borrowers,
continuing the policy which started with the 2015 Consolidated and Further Continuing
Appropriations Act (Pub. L, 113-235).
JUSTIFICATION
Section 108 of the Housing and Community Development Act enables communities to leverage their
Community Development Block Grant (CDBG) funds into Federally guaranteed loans large enough
to pursue substantial physical and economic revitalization projects. These projects allow
communities to provide critical affordable housing to low- and moderate-income families, expand
economic opportunities, and renew entire neighborhoods through new or rehabilitated
infrastructure. Section 108-assisted projects approved between 2011 and 2022 are projected to create
more than 29,000 jobs based on $1.4 billion in loan guarantees. The Section 108 Program's utility as
a job generating tool is magnified because many of these economically distressed localities lack
alternative sources of financing for community and economic development projects.
Under the requested funding level in 2023, the Section 108 Program would continue to fulfill its role
as a highly valuable financing tool for the large-scale community and economic development
activities being carried out by local governments that are vital to expanding opportunities for their
residents. The requested funding level would ensure the expanded availability of low-cost, flexible
financing for community and economic development projects for CDBG entitlement communities,
non-entitlement local governments participating through the State CDBG program, and Insular
Areas, as local governments nationwide continue to struggle with financing development needs.
17-1
GAD 47-463 05/03/2022
114
COMMUNITY DEVELOPMENT LOAN GUARANTEE
To assist governments with the fee-based financing mechanism, HUD allows Section 108 borrowers
to include the fee in the guaranteed loan amount, as is permitted under other Federal guarantee
programs (e.g., the Small Business Administration 504 program).
Outcomes Associated with 2023 Section 108 Requested Commitment Authority:
• The Section 108 program would finance job-creating projects that could be expected to create
or retain 2,500 jobs resulting from economic development investments financed by loans
guarantees.
• Based on historical data, Section 108 financing for economic development purposes would
leverage approximately $4.62 of additional funds for every $1 of Section 108 loan funds.
• The program would be expected to provide $105.0 million in financing for rehabilitation and
construction of public facilities and infrastructure, $104.0 million for housing rehabilitation,
and $90 million in assistance for economic development activities.
States and local governments face challenges in addressing their community and economic
development needs. Often, the annual CDBG allocation alone is not sufficient to complete crucial
large-scale community and economic development projects that communities desperately need. As a
result, communities across the country turn to the Section 108 loan guarantee as a source of funds
for these crucial projects. Currently, the Section 108 program is supporting more than
351 outstanding loans in communities across the country, with a total loan balance of approximately
$843.9 million. With leverage, a grantee can carry out a larger project with the Section 108 financing
than it could otherwise. Grantees can finance revenue generating activities (e.g., economic
development) with a guaranteed loan and applying the future revenue to repayment of the debt.
The Section 108 program guarantees loans that offer variable and fixed-rate financing for up to
20 years to finance certain CDBG eligible activities, including economic development activities,
public facilities and improvements, housing rehabilitation, land acquisition, and related activities.
Although some CDBG-eligible activities cannot be financed under Section 108 (such as program
administration and public services), the CDBG activity types that can be financed through
Section 108 account for approximately 70 to 75 percent of the total CDBG expenditures. Enhanced
economic development data for consolidated planning, made possible through recent Consolidated
Plan improvements, will help grantees understand how they most efficiently use this financing.
Entitlement communities are eligible to apply for Section 108 loan guarantees equal to five times
their most recent CDBG award. Communities in non-entitlement areas may receive loan guarantees,
in the aggregate, equal to five times the State's grant under the CDBG program. As permitted in
recent appropriations, several States have applied directly for Section 108 funding to be distributed
to communities in non-entitlement areas to create a loan portfolio of economic development and
public facilities projects.
Since 1977, HUD has issued 2,007 commitments totaling approximately $9.8 billion. When HUD
guarantees a Section 108 loan, it provides a full faith and credit guarantee to the lender. This, in
turn, ensures timely payment of principal and interest to the lender and favorable interest rates.
HUD has never paid a claim from a holder of a guaranteed obligation as a result of a default, due in
part to the availability of CDBG funds for repayment if planned repayment sources are insufficient.
The loans guaranteed under Section 108 are privately financed. HUD has developed a productive
partnership with financial institutions who implement a flexible financing structure while providing
States and local governments with low-cost financing.
17-2
GAD 47-463 05/03/2022
115
COMMUNITY DEVELOPMENT LOAN GUARANTEE
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Loan Guarantee
Subsidy
Loan
Commilment 300,000 300,000 300,000 300,000 300,000
Tola! 300,000 300,000 300,000 300,000 300,000
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
None.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT
Subject to section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a), during fiscal year
2023, commitments to guarantee loans under section 108 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308), any part of which is guaranteed, shall not exceed a total
principal amount of $300,000,000, notwithstanding any aggregate limitation on outstanding
obligations guaranteed in subsection (k) of such section 108: Provided, That the Secretary shall collect
fees from borrowers, notwithstanding subsection (m) of such section 108, to result in a credit subsidy
cost of zero for guaranteeing such loans, and any such fees shall be collected in accordance with
section 502(7) of the Congressional Budget Act of 19 74: Provided further, That such commitment
authority funded by fees may be used to guarantee, or make commitments to guarantee, notes or other
obligations issued by any State on behalf of non-entitlement communities in the State in accordance
with th~ requirements of such section 108: Provided further, That any State receiving such a
guarantee or commitment under the preceding proviso shall distribute all funds subject to such
guarantee to the units of general local government in no entitlement areas that received the
commitment.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
17-3
GAD 47-463 05/03/2022
116
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Community Planning and Development
HOME Investment Partnerships Program
SUMMARY OF RESOURCES
(Dollars in Thousands)
1,350,000 249,095 1,599,095 1,262,031 1,967,054
President's Budget 1,950,000 337,064 2,287,064 1,500,441 2,775,379
Change from 2022 600,000 87,969 687,969 538,410 808.325
al 2020 CarJYover into 2021 column includes $2,114 million of funds racaptured in 2021.
b/ 2021 supplemental includes $4.95 billion in American Rescue Plan funds, pursuant to Public Law Number 117-2.
PROGRAM PURPOSE
HOME is the primary Federal tool of States and local governments for the production of affordable
rental and owner-occupied housing for low-income to extremely low-income families, including
mixed-income housing and housing for homeless and persons with IDV/AIDS. It is an anchor of this
nation's affordable housing finance system and can be an important factor for community
revitalization. For many States and local governments, HOME is the only reliable stream of
affordable housing development funds available to them.
BUDGET OVERVIEW
The 2023 President's Budget requests $1.95 billion for the HOME Investment Partnerships
Program, which is $600 million more than the 2022 CR annualized level. The Budget includes a
$100 million set-aside for a FirstHOME Downpayment Assistance initiative to States and insular
areas to better ensure sustainable homeownership. The increase to HOME reflects the
Administration's recognition of the need to increase the production of and access to affordable
housing.
JUSTIFICATION
An appropriation of HOME funds at the requested funding level will strengthen,and broaden the
Federal housing safety net for people in need by providing safe, decent, and affordable housing to
low-income households. Specifically, HOME funds at the requested level will increase the production
of and access to affordable housing through the acquisition, new construction, and rehabilitation of
affordable housing units for sale or rent. Further, many participating jurisdictions provide tenant-
based rental assistance to extremely low-income households and special needs populations with their
annual HOME allocations to serve the most vulnerable populations in their communities.
Funding Impact
An investment of HOME funds at the requested level will result in the following over time:
• 17,909 units of affordable housing for new homebuyers;
• 15,169 units of newly constructed and rehabilitated affordable rental units;
• 8,547 units of owner-occupied rehabilitated housing for low-income homeowners; and
18-1
GAD 47-463 05/03/2022
117
HOME INVESTMENT PARTNERSHIPS PROGRAM
• 15,244 low-income households assisted with HOME tenant-based rental assistance.
Funding at the requested level would require HOME participating jurisdictions to provide
$487 .5 million in matching contributions and, based on historical activity, would leverage a total of
approximately $8.9 billion in public and private funds.
FirstHOME Downpayment Assistance
The FirstHOME Downpayment Assistance initiative is a proposed set-aside within the HOME
account that aims to support sustainable homeownership among first-generation, first-time
homebuyers while piloting programmatic flexibilities and innovations in subsidy delivery.' HUD is
requesting broad appropriations language with waiver authority to maintain flexibility in program
design, but anticipates that this additional downpayment assistance funding would:
• Help participating borrowers achieve 10 percent equity in their homes at the time of closing
(including the assistance of other downpayment sources and sweat equity or personal
resources, if necessary).
• Encourage participating jurisdictions to partner with community development financial
institutions and other community lenders to match homebuyers with additional sources of
downpayment assistance, leveraging Federal investments.
• Allow low- and moderate-income borrowers, who also experience homebuying challenges due
to generational wealth disparities, to be better able to reach the ten percent equity, even in
high-cost markets.
HUD proposes this initiative because homeownership is a proven method of building wealth, but
obtaining the resources to meet required downpayment and closing costs is the most significant
obstacle to homeownership for potential first-time homebuyers who could otherwise afford the
monthly costs of owning a home. The funds enable jurisdictions to increase homeownership
opportunities, especially among households of color, who generally have lower rates of
homeownership compared to the national average. The home equity established at the time of
purchase through downpayment creates housing stability from the start, as evidence suggests that
equity of 10 percent or greater reduces the likelihood of default and foreclosure.
Need for HOME Funds
HOME funds are critically needed, as documented by HUD's survey results in the Worst Case
Housing Needs: 2021 Report to Congress, which states that in 2019, 7.7 million households had worst
case needs. 2 Most of these households had extremely low incomes (74 percent or 5.7 million) and
97.5 percent had severe housing cost burdens. These are households that do not receive government
housing assistance and pay more than one-half of their incomes toward rent, and/or those that live in
severely inadequate conditions.
The ratio of affordable and available units to very low-income renters followed a downward path
from 2009 to 2017. After 2017, there was some improvement, with the ratio increasing from 59 units
per 100 renter households in 2017 to 62 units per 100 renter households in 2019. For extremely low-
income households, the ratio of affordable and available units did not change: there were only
1 Though not a requirement for participation, the FirstHOME DPA program is designed to pair with a new
Home Equity Accelerator Loan pilot product in FHA, designed to lower barriers for first-time buyers and
furthering the aim of sustainable homeownership.
2 htt.ps://www.huduser.gov/portal/publications/Worst-Case-Housing-Needs-2021.html.
18-2
GAD 47-463 05/03/2022
118
HOME INVESTMENT PARTNERSHIPS PROGRAM
40 affordable and available units for every 100 extremely low-income renter households in both 2017
and 2019.
HOME funds frequently provide the critical gap financing that make rental housing funded with
Low-Income Housing Tax Credits (LIHTC) or other Federal, State, or local housing projects feasible.
For example, approximately 56 percent of 63,487 completed HOME-assisted rental units were part of
LIHTC projects from 2016-2021.
HUD Strategic Goals Supported by HOME
1. Support Underserved Communities: HOME funds support low-income families, which
directly correlates to supporting the communities in which they reside. HOME funds must be
used to benefit families and individuals who qualify as low-income (i.e., households with
incomes at or below 80 percent of Area Median Income (AMI)). Historically, however, 83
percent of HOME rental units have beneficiaries with very low incomes at or below 50
percent AMI. The investment of HOME funds in rental projects increases the affordability
for families at the very lowest income levels by requiring long-term income targeting and
affordable rents. Nearly 44 percent of those assisted with HOME funds for rental housing
were extremely low-income families (i.e., income at or below 30 percent of AMI.) When
HOME funds are spent in communities, by building and rehabilitating homes, it creates or
preserves local jobs. The requested HOME funding can create or preserve an estimated
34,847 jobs in the communities where HOME funds are expended. This also creates
opportunities for area residents to gain economic stability and build wealth in, and spur
economic growth within their local communities. HOME funds were the catalyst that
resulted in the leveraging of $164.5 billion of other funds for affordable housing, with $4.61
of private or other public dollars for each HOME dollar invested in rental and home buyer
projects since the beginning of the program.
2. Ensure Access to and Increase the Production of Affordable Housing: The HOME program
allows its key stakeholders, States and local governments, the discretion to determine the
type of housing product they will invest in, the location of the affordable housing, and the
segment of their low-income population to be served through these housing investments.
This allows the stakeholders to help stabilize individuals, families, and their communities by
providing decent, safe, sanitary, and affordable housing. As a result, using HOME funds,
participating jurisdictions have completed 1,347,147 affordable units in the past 30 years, of
which 551,805 were for new homebuyers, 258,137 were for owner-occupied rehabilitated
housing, and 537,205 were new and rehabilitated rental units. The HOME program has
helped ensure access to affordable housing by providing 362,662 low-income families in the
past 30 years with tenant-based rental assistance, of which 96.4 percent were very low-
income (i.e., income at or below 50 percent of AMI.)
3. Promote Homeownership: The HOME program has longstanding success in promoting
homeownership. In the past 30 years, participating jurisdictions used HOME funds to create
551,805 units for new, low-income homebuyers, and rehabilitate 258,137 units for low-
income homeowners.
Equity
Public policies and disparities in law have contributed to a lack of equal opportunity, health, and
prosperity for many Americans and their communities. HUD is part of the Administration's effort to
strive for racial equity and provide support to underserved communities. The HOME program, in
particular, is a proven Federal tool that advances equity because of its flexibility for State and local
governments to target community needs.
18-3
GAD 47-463 05/03/2022
119
HOME INVESTMENT PARTNERSHIPS PROGRAM
Risk and Evaluating the Effectiveness of the Program
Each year HUD field offices conduct a risk assessment of all formula and competitive grantees based
on several factors, including size of formula grant, complexity of activities undertaken, management
capacity, and length of time since last monitoring visit. Based on the risk assessment results, field
offices target staff resources to monitor grantees that pose the greatest risk of fraud, waste, abuse
and mismanagement. This monitoring includes a HUD assessment of the grantee's policies and
procedures governing sub-recipient management, financial management, eligible activities,
allowable costs, written agreements, match requirements, and beneficiary data. It also includes a
review of specific project files and on-site inspection of selected sample projects.
HUD has developed a range of innovative tools and system improvements over the years to improve
HOME oversight and to assist grantees to better manage their programs. These tools help to track
program funds, to rate and rank grantee performance, and to identify and lower risk in the HOME
program - most are publicly available on HOME's website. For example, the Open Activities Report,
which identifies, at the State and local level, the progress of individual HOME projects until the
projects are completed.
HOME Investment Partnerships Program Allocations by State for 2021 Enacted, 2022 Annualized Budget
Authority and the
2023 Budget Request
(Dollars in Thousands)
ARP Actual Actual Annualized Estimate
STATE or TERRITORY FY 2021 FY 2021 FY2022 FY2023
Alabama ............................................ . 64,746 17,558 17,282 24,321
Alaska .............................................•.. 7,697 3,743 3,699 2,891
Arizona.............................................. . 83,258 22,709 22,763 31,275
Axkansas ............................................ . 43,745 11,824 12,087 16,432
California ........................................... . 667,163 182,064 179,856 250,610
Colorado ............................................ .. 67,023 18,251 18,196 25,176
Connecticut ........................................ . 57,768 15,670 15,976 21,700
Delaware •........................................... 11,095 4,581 4,633 4,168
District of Columbia ......................... . 19,315 5,574 5,535 7,255
Florida............................................... . 251,669 68,621 69.047 94,536
Georgia .............................................. . 140,400 38,083 38,239 52,739
Hawaii ............................................... . 17,534 6,045 5,980 6,586
Idaho .................................................. . 22,397 6,052 6,122 8,413
Illinois ............................................... . 203,978 55,601 55,059 76,621
Indiana .............................................. . 96,992 26,335 26,061 36,434
Iowa ................................................... . 42,538 11,529 11,822 15,979
Kansas ............................................... . 39,319 10,672 10,775 14,770
Kentucky........................................... . 71,060 19,244 19,268 26,693
l,ouisiana........................................... . 70,124 19,041 19 282 26,341
HOME Investment Partnerships Program Allocations by State, Continued
18-4
GAD 47-463 05/03/2022
120
HOME INVESTMENT PARTNERSHIPS PROGRAM
ARP Actual Actual Annualized Estimate
STATE or TERRITORY FY 2021 FY2021 FY2022 FY 2023
Maine ................................................. . 20,981 5,681 5,599 7,881
Maryland .......................................... .. 68,182 18,572 18,664 25,612
Massachusetts ................................... . 124,950 34,066 34,054 46,935
Michigan ........................................... .. 150,643 40,989 40,833 56,587
Minnesota .......................................... . 66,762 18,153 17,979 25,078
Mississippi. ........................................ . 44,130 11,927 11,876 16,577
Missouri. ............................................ . 88,420 24,026 24,214 33,214
Montana............................................ . 15,021 4,067 4,047 5,642
Nebraska .......................................... .. 27,375 7,434 7,445 10,283
Nevada, ............................................. . 37,098 11,394 11,582 13,935
New Hampshire ............................... . 18,033 4,881 4,898 6,774
Ne\v Jersey ........................................ . 130,875 35,760 36,271 49,161
New Mexico .... ,.................................. . 28,767 7,797 7,829 10,806
New York ........................................... . 464,682 126,865 126,140 174,551
North Carolina ................................ .. 137,414 37,358 37,403 51,617
North Dakota ................................... .. 9,466 3,465 3,468 3,556
Ohio .................................................. .. 200,721 54,592 54,856 75,398
Oklahoma .......................................... . 53,996 14,654 14,771 20,283
Oregon ............................................... . 66,707 18,131 17,982 25,057
Pennsylvania .................................... . 206,462 56,237 57,067 77,554
Rhode Island ..................................... . 23,129 6,278 22,081 30,660
South Carolina ................................. .. 62,466 16,995 6,110 8,688
South Dakota ................................... .. 11,133 3,504 16,993 23,464
Tennessee .......................................... . 93,423 25,363 3,503 4,182
Texas ................................................. . 343,538 93,527 25,275 35,093
Utah .................................................. .. 29,523 8,031 94,631 129,045
Vermont............................................. . 11,065 3,411 7,956 11,090
Virginia .............................................. . 96,983 26,394 3,414 4,156
Washington....................................... . 98,113 26,771 26,527 36,430
West Virginia .................................... . 28,291 7,668 7,730 10,627
Wisconsin ........................................... . 89,966 24,463 26,764 36,854
Wyoming ............................................ . 7,391 3,500 3,500 2,776
Puerto Rico ........................................ . 81,623 22,149 24,156 33,794
Subtotal Formula Grants...... . 4,915,150 1,347,300 1,347,300 1,846,300
Insular .A.reas ................................ . 9,850 2,700 2,700 3,700
Downpayment Assistance ............ . 0 0 0 99,250
Downpayment Insular Areas ...... . 0 0 0 750
American Rescue Plan TA........... . 25,000 0 0 0
TOTALS ... 4 950,000 1,350,000 1350,000 1950,000
18-5
GAD 47-463 05/03/2022
121
HOME INVESTMENT PARTNERSHIPS PROGRAM
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Formula Grants 1,347,300 457,332 1,804,632 1,570,864 1,347,300 230,476 1,577,776 1,945,550
Insular Areas 2,700 2,700 5,400 1,788 2,700 3,612 6,312 4,450
Management
Information Systems
Housing Counseling 4 4
Homeless
Assistance and
Supportive Services
(ARP) 4,925,000 4,925,000 4,925,000
Homeless
Assistance and
Supportive Services
(ARP) TA 25,000 25,000 10,000 15,000 15,000
Technical Assistance 181 181
Total 6,300,000 460,220 6,760,220 6,507,652 1,350,000 249,095 1,599,095 1,950,000
al 2020 Carryover into 2021 column includes $2.114 million offunds recaptured in 2021, of which $181 lhousand was technical assistance.
bl 2021 Carryover into 2022 column excludes $3.4 million in expired funds.
cl 2023 President's Budget column includes $100 million for a FirstHOME Downpayment Assistance initiative, of which $99.250 million is included in lhe Formula
Grants row and $750 thousand is included in the Insular Areas row.
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
• Inserts a set-aside for a FirstHOME Downpayment initiative to States and insular areas to
better ensure sustainable homeownership.
• Deletes statutory provisions that apply when the appropriation is below $1.5 billion,
• Inserts a provision to allow all remaining no-year Community Housing Development
Organization funds to be allocated via the HOME formula rather than via competition.
• Extends the suspension of the 24-month commitment period for HOME funds for another
year so that the funds remain with the jurisdiction. A suspension of this requirement has
been included in the HOME appropriation law since 2017 and has had a favorable response
from participating jurisdictions.
• Extends the suspension of the provision that requires Community Housing Development
Organization funds to be recaptured if they remain uncommitted after 24 months and allows
the funds to remain with participating jurisdiction and convert to HOME formula funds for
an additional year. This suspension has been in the HOME appropriation law since 2019 and
has had a favorable response from participating jurisdictions.
18-6
GAD 47-463 05/03/2022
122
HOME INVESTMENT PARTNERSHIPS PROGRAM
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For the HOME Investment Partnerships program, as authorized under title II of the Cranston-
Gonzalez National Affordable Housing Act, as amended (42 U.S.C. 12721 et seq.), $1,950,000,000, to
remain available until September 30, 2026: Provided, That of the amount made available under this
heading, up to $100,000,000 shall be for awards to States and insular areas for assistance to
homebuyers as authorized under section 212(a)(l) of such Act (42 U.S.C. 12742(a)(l)), in addition to
amounts otherwise available for such purpose: Provided further, That amounts made available under
the preceding proviso shall be allocated in the same manner as amounts under this heading, except
that amounts that would have been reserved and allocated to units of general local government within
the State pursuant to section 217 of such Act (42 U.S.C. 12747) shall be provided to the State:
Provided further, That the Secretary may waive or specify alternative requirements for any provision
of such Act in connection with the use of amounts made available under the previous two provisos
(except for requirements related to fair housing, nondiscrimination, labor standards, and the
environment) upon a finding that any such waivers or alternative requirements are necessary to
expedite or facilitate the use of amounts awarded pursuant to the preceding provisos: Provided
further, That notwithstanding section 23l(b) of such Act (42 U.S.C. 12771(b)), all unobligated
balances remaining from amounts recaptured pursuant to such section that remain available until
expended shall be combined with amounts made available under this heading and allocated in
accordance with the formula under section 217(b)(l)(A) of such Act (42 U.S.C. 12747(b)(l)(A)):
Provided further, That section 218(g) of such Act (42 U.S.C. 12748(g)) shall not apply with respect to
the right of a jurisdiction to draw funds from its HOME Investment Trust Fund that otherwise
expired or would expire in 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, or 2026 under
that section: Provided further, That section 231(b) of such Act (42 U.S.C. 12771(b)) shall not apply to
any uninvested funds that otherwise were deducted or would be deducted from the line of credit in the
participating jurisdiction's HOME Investment Trust Fund in 2018, 2019, 2020, 2021, 2022, 2023,
2024, 2025, or 2026 under that section.
Note.--A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
18-7
GAD 47-463 05/03/2022
123
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Community Planning and Development
Self-Help Homeownership Opportunity Program (SHOP)
SUMMARY OF RESOURCES
(Dollars in Thousands)
2022 Annualized CR 60,000 65,446 125,446 61,000 56,930
2023 President's Budget 60,000 64,446 124,446 60,000 50,196
Change from 2022 (1,000) (1,000) (1,000) (8,734)
PROGRAM PURPOSE
The SHOP account combines several programs designed to assist low- and moderate-income
populations:
• The Self-Help Homeownership Opportunities Program (SHOP) awards grant funds to
eligible non-profit organizations and consortia to purchase home sites and develop or
improve the infrastructure to set the stage for sweat equity and volunteer-based
homeownership programs for low-income individuals and families. SHOP is authorized by
the Housing Opportunity Program Extension Act of 1996, Section 11.
• The Capacity Building for Affordable Housing and Community Development
(Capacity Building) Program was originally authorized under Section 4 of the HUD
Demonstration Act of 1993 (42 U.S.C. 9816 note) to enhance the capacity and ability of
community development corporations (CDCs) and community housing development
organizations (CHDOs) to carry out community development and affordable housing
activities that benefit low-income persons.
• The Rural Capacity Building (RCB) Program awards funds to national organizations to
enhance the capacity of local governments, Indian Tribes, housing development
organizations, rural CDCs, and rural CHDOs to carry out community development and
affordable housing activities that benefit low-and moderate-income families and persons in
rural areas.
• The Veterans Housing Rehabilitation and Modification Pilot (VHRMP) Program
awards grants to nonprofit organizations that provide Nationwide or Statewide programs to
rehabilitate and modify the primary residence of disabled or low-income veterans. VHRMP is
authorized in accordance with section 1079 of the Carl Levin and Howard P. "Buck" McKean
National Defense Authorization Act for Fiscal Year 2015 (Pub. L. 113-291, enacted December
19, 2014).
BUDGET OVERVIEW
The 2023 President Budget's requests $60 million for the Self-Help Homeownership Opportunity
Program, which is equal to the 2022 annualized CR level. This includes:
• $10 million for the SHOP;
• $41 million for the Capacity Building program;
• $5 million for RCB; and
• $4 million VHRMP.
19-1
GAD 47-463 05/03/2022
124
SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM
JUSTIFICATION
Self-Help Homeownership Opportunity Program
Through SHOP, HUD awards grants to eligible nonprofit organizations and consortia to purchase
home sites and develop or improve the infrastructure needed to set the stage for sweat equity and
volunteer-based homeownership programs for low-income persons or families. Through a Notice of
Funding Opportunity (NOFO), $10 million will be awarded to grantees to be used for eligible
expenses to develop decent, safe, and sanitary dwellings.
Land acquisition, infrastructure improvements, and reasonable and necessary planning and
administration costs are the only eligible uses for SHOP grant funds. The SHOP expenditure for the
combined cost ofland acquisition and infrastructure improvements cannot exceed $15,000 per unit.
Grantees must leverage other public and private funds to pay for the construction or rehabilitation
costs of each SHOP unit and for any other program costs that are not assisted with SHOP grant
funds.
SHOP will address the Administration's priorities as published in recent Executive Orders and,
specifically, by the following three themes:
1) Support underserved communities: Currently, 50 percent of SHOP individuals and families live
in rural and underserved communities. The SHOP units must be sold to homebuyers at prices below
the prevailing market price. Home buyers must be low-income and must contribute a significant
amount of sweat equity towards the development of the SHOP units. Reasonable accommodations
must be permitted for individuals with disabilities in order for such individuals to meet hourly sweat
equity requirements.
2) Ensure access to and increase the production of affordable housing by conveying new or
rehabilitated housing units: Based on a $10 million budget, approximately 538 units will be
conveyed by SHOP grantees. Over the course of the program's history beginning in 1996, total
appropriations of $467. 7 million have led to more than 32,500 SHOP units conveyed to homeowners,
and the program has leveraged approximately $3.3 billion in public and private funds.
A homebuyer's sweat equity contribution cannot be mortgaged or otherwise restricted upon future
sale of the SHOP unit. Volunteer labor is also required. SHOP grantees may award SHOP grant
funds to local non-profit affiliate organizations to carry out the grantee's SHOP program. These
affiliate organizations must be located within the grantee's service area of the housing projects. The
sweat equity model of SHOP is associated with neighborhood-strengthening spillover benefits,
including greater collective efficacy and improved neighboring and civic engagement. 1
The long-standing racial disparities in homeownership rates increased between 2016 and 2019, as
the increase in Black homeownership by 0.6 percentage points was less than half the 1.4-point
increase among White households. Factors contributing to this disparity include the lack of a strong
credit history, lack of a down payment large enough to reduce the monthly mortgage, and limited
savings for home maintenance, as well as segregation and systemic factors that affect credit access
and sustainable homeownership. 2
1 Bowers, Rachel M. 2019. '1Iome is the Key: A Study of the Social Impact of
Habitat for Humanity in South Carolina." https://tigerprints.clemson.edu/all dissertations/2454/
2 Joint Center for Housing Studies. State of the Nation's Housing 2020. Cambridge, MA: Harvard U.
https:l/www.jchs.harvard.edu/state-nations-housing-2020
19-2
GAD 47-463 05/03/2022
125
SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM
3) Strengthen internal capacity: The Office of Community Planning and Development (CPD),
working with the Office of Policy Development and Research (PD&R), will explore what evidence-
based quantifiable output and outcome indicators could be used to measure performance of the
SHOP program. In addition, CPD will work with the Office of the Chief Financial Officer (OCFO)
regarding SHOP's risk assessment to strengthen internal controls through oversight and monitoring
of grantees.
Capacity Building for Community Development and Affordable Housing (Section 4) and
Rural Capacity Building (RCB) Programs
The Capacity Building and RCB programs provide grant awards to national non-profits to deliver
capacity building support to local organizations. This capacity building support provides local
organizations with the knowledge and resources to initiate, improve, or expand implementation of
community development, housing, and economic development activities. Capacity Building program
and RC}} grantees provide capacity building support through two primary methods: direct
engagement and financial assistance. Examples of direct engagement include technical assistance,
training, peer-to-peer learning, curriculum development, and organizational assessments. Examples
of financial assistance include grants, loans, and training scholarships or stipends. Financial
assistance is primarily delivered through sub-grant awards that provide local organizations salary
offset to hire new staff or expand the role of existing staff. Some grantees offer capacity building
loans, which help to pay for pre-development expenses that are not covered by other funding sources
in the local organization's development financing package. Capacity Building program and RCB
grantees coordinate Federal financial assistance investments with direct beneficiary engagement, to
ensure that the Federal funds provided support the projected outcomes; and the local organizations
experience sustainable capacity building change.
The capacity building programs, through the Capacity Building program and RCB grantees, advance
equity by filling the capital gap created by decades of systemic racism; strengthening CDCs and
CDHOs through advisory services and other support and creating new career pathways to diversify
leadership in real estate.
The Capacity Building program is further advancing equity by integrating a new focus on equitable
community development, helping communities align and access resources from multiple federal
partners as well as external sources.
The program will work with community leaders and grassroots stakeholders in urban, rural, tribal,
and underserved communities to maximize HUD programs and other federal resources in keeping
with the Administration's priorities; to address COVID economic recovery, racial equity, reduce
public health disparities, and improve climate resilience. This effort will also seek to remove barriers
to expenditure and increase the rate of spending on Community Development Block Grant CARES
(CDBG-CV) and other funding streams.
The focus on equitable community development will support areas where HUD already has
investments to help these communities better strategize how to spend their funding resources in an
impactful manner, and create change on the ground. This could include creation of technical
assistance to support in development of economic recovery strategies, place-based interventions, as
well as best practices communities can support small businesses and dislocated workers. This may
also involve strategies like fiscal mapping around alignment of Federal resources for project
implementation.
Building on previous place-based models, such as Strong Cities Strong Communities and Promise
Zones, the Capacity Building program will include technical assistance, convening, support for
19-3
GAD 47-463 05/03/2022
126
SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM
coordinated neighborhood-based and regional planning, project development, and financial support
to realize the roadmap.
The Capacity Building program competitively awards grant funds to the following eligible grantees:
Enterprise Community Partners, Habitat for Humanity International, Inc., and Local Initiatives
Support Corporation to provide capacity building support to Community Development Corporations
and Community Housing Development Organizations. The Capacity Building grant funds primarily
go to urban and suburban communities; however, past appropriations have required that at least
$5 million be dedicated to rural communities. In implementing grant award funding received from
2016 - 2020 Capacity Building appropriations, the three Capacity Building program grantees have
so far achieved the following outputs:
Section 4 Program Outputs
Cumulative out ut totals from 2016-2020 fundin,
Organizations Served
ousing Units Rehabbed, Sustained, or
Reconstructed
ousing Units Put in the Development Process
uh-Grants Awarded (count/dollars)
oans Awarded (cmmt/dollars)
The RCB program competitively awards grant funds to national non-profit organizations to provide
capacity building support in rural communities to the following five types of eligible organizations:
Community Development Corporations, Community Housing Development Organizations, Rural
Housing Development Organizations (RHDOs), Local Governments, and Indian Tribes. In
implementing grant award funding received from 2016-2020 RCB appropriations, the RCB grantees
have so far achieved the following outputs:
RCB Program Outputs
2016-2020 fundi
2,518
New Housin Units Cons_tr_·u_c_.te_'d_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-+______6_6_4
7
Jfou~_ing U nita Rehabbed Sustained or Reconstructed 906
Housin Units Put in the Develo ment Process 2,936
Sub-Grants Awarded count/dollars) 27/$459,511
Loans Awarded (count/dollars) 4/$489,916
The local organizations served through the Capacity Building and RCB grant programs are critical
stakeholders in addressing community needs in urban and rural environments, and for ensuring
that assistance reaches underserved populations.
The requested levels of funding for Capacity Building and RCB programs will ensure that local
organizations continue to get access to a broad range of capacity building, to help improve or expand
19-4
GAD 47-463 05/03/2022
127
SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM
their ability to serve their communities, and will help to achieve the following Administration
priorities:
1) Support underserved communities: Capacity building provided through the Capacity Building
and RCB grant programs provides local organizations with the knowledge and resources to create
new homeowner housing for critical populations, bridging the gap in housing equity and enhancing
economic opportunity for underserved communities.
2) Ensure access to. and increase the production of. affordable housing: Capacity building provided
through the Capacity Building and RCB grant programs leads to affordable housing production and
rehabilitation, as indicated in the program outputs shared above.
3) Promote homeownership: The accomplishments in the Capacity Building and the RCB programs
demonstrate that funding these capacity building programs leads to affordable housing development
and rehabilitation. Specifically, the direct engagement and financial assistance provide local
organizations with the knowledge and resources to implement affordable housing projects.
4) Advance sustainable communities: The capacity building provided through Capacity Building and
RCB grant programs creates more equitable, inclusive, and sustainable communities. These
programs provide financial and human capital to build the capacity of partners and improve
neighborhoods.
5) Strengthen internal capacity: The Office of Policy Development and Coordination (OPDC) within
CPD administers the Capacity Building and RCB grant programs. OPDC worked in partnership
with PD&R to create a rural mapping tool to allow grantees to verify a beneficiary's rural eligibility
for the Capacity Building and RCB programs. OPDC will continue this partnership with PD&R to
update the mapping tool as new Census data becomes available. OPDC has also collaborated with
HUD CPD's Office of Technical Assistance Management (OTAM) to share monitoring approaches
and discuss common areas of program participant non-compliance, as the programs share several
awardee organizations.
Veterans Housing Rehabilitation and Modification Pilot Program (VHRMP)
The purpose of the VHRMP is to award grants to nonprofit organizations to rehabilitate and modify
the primary residence of veterans who are low-income and living with disabilities.
HUD has awarded $19.2 million to nonprofit organizations that provide nationwide or statewide
programs that primarily service veterans or low-income individuals. Through the Notice of Funding
Opportunity process, grants are competitively awarded up to $1 million each to selected applicants.
To date, HUD has made 20 awards that will result in the rehabilitation and modification of
1,433 veterans' homes.
VHRMP will address the Administration's priorities as articulated in recent Executive Orders and,
specifically, on the following three themes:
1) Support underserved communities: VHRMP grantees rehabilitation and/or modification projects
are constructed in urban, rural and underserved communities. An estimated 13 percent of American
households in 2019 use a mobility device (wheelchair, walker, cane, etc.). 3 However, a 2015 HUD
study found that only 0.15 percent of all housing units in the nation are wheelchair accessible, and
3.8 percent are livable for people with moderate mobility difficulties. Another 33.3 percent of homes
3 U.S. Census Bureau, American Housing Survey.
19-5
GAD 47-463 05/03/2022
128
SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM
have some essential structure features for accessibility but would not be accessible without further
modifications. 4 The VHRMP program focuses on disabled veterans - a population that faces mobility
challenges - and provides them the ability to upgrade their homes to make them more accessible.
2) Ensure access to, and increase the production of. affordable housing through the rehabilitation
and/or modification of housing units: According to the Current Population Survey, 26 percent of all
veterans have a service-related disability. 6 This high prevalence among veterans with service-related
disabilities tied together with a lack of affordable, accessible housing units indicates a substantial
need for targeted home modifications. 6
In 2018, 27 .9 percent of non-institutionalized civilian veterans aged 21 to 64 years reported having a
disability connected with their service.7 Many veterans who are low-income and have disabilities are
in need of adaptive housing to help them regain or maintain their independence, but are unable to
finance significant home repairs. In partnership with the U.S. Department of Veterans Affairs, HUD
designed the VHRMP to test a new approach to address these challenges in accordance with section
1079 of the Carl Levin and Howard P. "Buck" McKean National Defense Authorization Act for Fiscal
Year 2015 (Pubic Law 113-291, enacted December 19, 2014 "Program Statute").
3) Strengthen internal capacity: CPD, working with PD&R, will explore what evidence-based,
quantifiable output and outcome indicators could be used to measure program performance for
VHRMP. In addition, CPD will work with OCFO regarding the SHOP's risk assessment to
strengthen internal controls through oversight and monitoring of grantees.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Homeownership
Oppori!Jnity Program 10,000 10,000 20,000 10,000 10,000 20,000 10,000
Capacity Building 41,000 36,000 77,000 36,000 41,000 82,000 41.000
Capacity Building ror
Rural Housing 5,000 10,000 15,000 10,000 5,000 10,000 5,000
Veterans Home
Rehabilitation and
Modification Pilot
Program 4.000 9,445 13,445 3,999 4.000 9,446 13,446 4,000
Total 60,000 65,445 125,445 59,999 60,000 65.446 125,446 60,000
4 IDJD. 2015. Accessibility of America's Housing Stock: Analysis of the 2011 American Housing Survey (AHS).
https:l/www.huduser.gov/portal/publications/mdrt/accessibility-america-housingStock.html
5 Bureau of Labor Statistics (Ed.). (2021, March 18). EMPLOYMENT SITUATION OF VETERANS -2020.
Retrieved from https:llwww.bls.gov/news.release/pdf/vet.pdf
6 Stineman, Margaret G., et al. 2011. "Activity of Daily Living Staging, Chronic Health Conditions, and
Perceived Lack of Home Accessibility Features for Elderly People Living in the Community." J Am Geriatr Soc.
2011 March; 59(3): 454-462. https://www.ncbi.nlm.nih.gov/pmclarticles/PMC3073492/
7 Cornell University. ''Disability Statistics." https:llwww.disabilitystatistics.org/reports/acs.cfm?statistic=lO
19-6
GAD 47-463 05/03/2022
129
SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
No legislative proposals.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriations language listed below.
For the Self-Help and Assisted Homeownership Opportunity Program, as authorized under section 11
of the Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note), and for related
activities and assistance, $60,000,000, to remain available until September 30, 2025: Provided, That
of the total amount made available under this heading, $10,000,000 shall be for the Self-Help
Homeownership Opportunity Program as authorized under such section 11: Provided further, That of
the total amount made available under this heading, $41,000,000 shall be for the second, third, and
fourth capacity building entities specified in section 4(a) of the HUD Demonstration Act of 1993 (42
U.S.C. 9816 note), of which not less than $5,000,000 shall be for rural capacity building activities:
Provided further, That for purposes of awarding grants from amounts provided in the previous
proviso, the Secretary may enter into multiyear agreements, as appropriate, subject to the availability
of annual appropriations: Provided further, That of the total amount made available under this
heading, $5,000,000 shall be for capacity building by national rural housing organizations having
experience assessing national rural conditions and providing financing, training, technical
assistance, information, and research to local nonprofit organizations, local governments, and Indian
Tribes serving high need rural communities: Provided further, That of the total amount provided
under this heading, $4,000,000, shall be made available for a program to rehabilitate and modify the
homes of disabled or low-income veterans, as authorized under section 1079 of Public Law 113-291.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
19-7
GAD 47-463 05/03/2022
130
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Community Planning and Development
Homeless Assistance Grants
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 3,000,000 5,680,198 8,680,198 5,279,358 3,214,502
2022 Annualized CR 3,000,000 3,545,000 6,545,000 2,997,000 5,460,000
2023 President's Budget 3,576,000 3,699,000 7,275,000 3,247,000 3,319,C'OO
Change from 2022 576,000 154,000 730,000 250,000 (2,141,000)
a/ 2021 Canyover, per Sec. 231 of Public Law 116-94, canyover includes Rental Assistance recaptures of $398 million.
b/ 2022 Canyover, per Sec. 231 of Pubr~ Law 116-94, canyover includes esfimated Rental Assistance recaptures of $151 million.
c/ 2023 Canyover, per Sec. 231 of Public Law 116-94, canyover includes estimated Rental Assistance recaptures of $150 million.
PROGRAM PURPOSE
Homeless Assistance Grants (HAG) are key to addressing homelessness nationwide, which has
declined by 9 percent between 2010 and 2020.1 HAG funds allow HUD to serve vulnerable
individuals and families who are homeless or at risk of homelessness through a wide variety of
service and housing interventions, including homelessness prevention, emergency shelter, rapid re-
housing, transitional housing, and permanent supportive housing.
BUDGET OVERVIEW
The 2023 President's Budget requests $3.576 billion for HAG, which is $576 million more than the
2022 annualized CR level.
• $3.197 billion for Continuum of Care;
o $3.125 billion for renewal need for the Continuum of Care (CoC) Program will allow
HUD to continue to serve over 750,000 people experiencing homelessness each year,
o Not less than $52 million for rapid re-housing for persons fleeing domestic violence,
and
o $20 million for CoC planning to provide CoCs additional support as they improve
coordination with mainstream housing and healthcare partners. This funding is
critical to providing the capacity and support to communities as they work to
promote equity and coordinate an effective, trauma-informed homeless response
system.
• $290 million for Emergency Solutions Grants (ESG), which supports over 350,000 persons in
emergency shelter each year.
• $7 million for Homeless Management Information System (HMIS), data analysis, and
technical assistance through the National Homeless Data Analysis Project.
1 Department of Housing and Urban Development. The 2020 Annual Homeless Assessment Report to Congress,
Part 1. Due to the national emergency related to the COVID-19 pandemic, the 2021 AHAR does not include an
estimate of the national unsheltered homelessness population. The 2020 AHAR contains the most recent
estimates.
20-1
GAD 47-463 05/03/2022
131
HOMELESS ASSISTANCE GRANTS
• Not less than $82 million for additional Youth Homelessness Demonstration Program
(YHDP) projects through a separate competition, including up to $10 million of this amount
for technical assistance to improve system responses to youth homelessness, and collection,
analysis, use and reporting of data and performance measures under the comprehensive
approaches to serve homeless youth, and to coordinate with other technical assistance funds.
JUSTIFICATION
The number of people experiencing unsheltered homelessness is rising in cities across the country.
The increase is a result of the rising cost of housing and the lack of assistance provided to segments
of the homeless population. For veterans and families experiencing homelessness, investments in
permanent supportive housing and rapid re-housing have helped reduce homelessness, even as
housing costs in most of the country for low-income people have risen dramatically. In partnership,
HUD and VA have invested significant resources, including HUD-Veterans Affairs Supportive
Housing (HUD-VASH), to reduce veteran homelessness, which has led to a decline of veteran's
homelessness by half since 2011. A similar decline (32 percent) has occurred for families with
children experiencing homelessness. On average, much less assistance is provided to individuals who
are not veterans or accompanied by children. As a result, rising numbers are experiencing
homelessness and particularly unsheltered homelessness.
Homelessness Data
Homelessness affects over 580,000 adults and children on any given day. To track progress and
continue learning about individuals and families experiencing homelessness, HUD uses data from
local HMIS, Point-in-Time Count (PIT), and Housing Inventory Count (HIC) data reported in the
Annual Homeless Assessment Report to Congress (AHAR). 2 The longitudinal data is collected both
as a "snapshot" of the number and characteristics of persons who are homeless on a given night and
persons being served in emergency shelter, transitional housing, safe havens, and permanent
housing. HUD also relies on system performance data that shows the progress of communities in
ending homelessness, including reducing the average length of time homeless, reducing the rate
people return to homelessness, increasing the exits to and retention of permanent housing, and
increasing employment and other income.
The 2020 AHAR shows that homelessness increased slightly between January 2019 and January
2020. The number of people experiencing homelessness nationwide increased by two percent
(12,751 people). This increase was driven by a seven percent (14,787 persons) increase in unsheltered
persons overall. Between 2007 and 2020, the number of people experiencing homelessness on a
single night in January has decreased by 10 percent (66,792 people). Unsheltered homelessness
declined by 12 percent (29,777 fewer people) over the same period. The number of veterans
experiencing homelessness increased by less than one percent between 2019 and 2020 and has
dropped by almost 50 percent since 2009. We continue to see over-representation of people of color in
the homeless population. People identifying as Black or African American accounted for 39 percent of
all people experiencing homelessness but are 12 percent of the total U.S. population.
2Part 1 of the 2020 AHAR can be accessed online at https://www.huduser.gov/portal/datasets/ahar/2020-ahar-
part-1-pit-estimates-of-homelessness-in-the-us.html. Part 1 of the 2021 AHAR, which includes only partia~ data
on unsheltered homelessness, can be accessed online at https://www.huduser.gov/portal/datasets/ahsr/2021-
ahar-part-l-pit-estimates-of-homelessness-in-the-us.html. Part 2 of the 2018 AHAR can be accessed online at
https://www.huduser.gov/portal/datasets/ahar/2018-ahar-part-2-pit-estimates-of-homelessness-in-the-us.html.
20-2
GAD 47-463 05/03/2022
132
HOMELESS ASSISTANCE GRANTS
Continuum of Care Program ($3.279 billion that includes renewals, $20 million to increase
CoC planning capacity, and $134 million for new projects)
The CoC program is HUD's largest program targeted to adults and children experiencing
homelessness. Funds are awarded to over 6,500 projects through a national competition. In the 2019
CoC program competition, over 92 percent of those projects were renewals.
CoC program funds can be used for:
• Rapid re-housing to provide time-limited permanent housing and stabilization services;
• Permanent supportive housing for homeless people with disabilities;
• Transitional housing to help individuals and families move to stability within two years;
• Support services to help identify and maintain permanent housing; and
• Planning to improve program monitoring, collaboration, and data collection to drive higher
performance at the local level.
The CoC Program is a key driver of the multiyear progress in ending homelessness. Policy priorities
for the CoC program are focused on preventing and ending homelessness, including ending
homelessness for veterans, families, youth, and people experiencing chronic homelessness. The CoC
program's competitive funding process encourages applicants to carefully review the performance of
each project in its portfolio and reallocate funds from under-performing or under-utilized projects to
ones based on proven, data-driven strategies.
The estimated renewal demand for each fiscal year is based primarily on three factors: the number of
previously renewed grants which are eligible to seek renewal again; the number of new awards made
in the prior 1 to 5 years, which are now eligible for renewal for the first time; and increases based on
Fair Market Rent (FMR) updates.
HUD estimates renewal requirements within a range, to accommodate the uncertain percentage of
projects that will need renewal. The following chart details HUD's five-year estimates of renewal
demand. These projections include currently awarded projects and new projects anticipated from
funding enacted through 2021.
Fiscal Year Estimated Renewal Need (in millions)
2022 $2,637 - $2,745
2023 $2,829 - $2,974
2024 $2,873 - $3,051
2025 $2,932 - $3,114
2026 $2,993 - $3,178
2027 $3,055 - $3,244
For over 15 years, HUD has prioritized permanent supportive housing, which serves people with the
highest levels of housing and service needs, especially people experiencing chronic homelessness. In
2020, HUD allocated over $1. 71 billion - 70 percent of its competitive funds - to permanent
supportive housing projects. More recently, as more evidence has emerged about the cost
effectiveness of rapid re-housing relative to certain other interventions, HUD has created incentives
for communities to use their ESG and CoC resources to expand rapid re-housing.
The Budget also includes an additional $20 million in CoC planning to expand CoCs' capacity, in
order to meet the growing demands on their homeless response systems. COVID-19 has highlighted
the support CoCs need to run an effective homeless response system. These CoC Planning funds
have been crucial to many communities, allowing them to create more effective and coordinated
20-3
GAD 47-463 05/03/2022
133
HOMELESS ASSISTANCE GRANTS
approaches to the challenges of homelessness specific to their communities, there are still many
other communities that receive small amounts of $10,000 or less, which does not give them the
resources to engage in the comprehensive planning processes important for success. The additional
$20 million, along with the proposed legislative changes to update the planning limit from 3 percent
to the higher of 5 percent or $50,000, will allow CoCs to coordinate with public health, health care,
education, employment, and other stakeholders.
The proposal would also include $134 million for new projects. At least $52 million within CoC is for
new rapid re-housing projects and other assistance to serve people fleeing domestic violence and
other gender-based violence, including human trafficking. For the past several years, HUD has made
a significant investment in housing and service solutions for survivors of domestic violence.
Providing thia funding will allow more communities to build the necessary housing and service
options to protect survivors of domestic violence and help them achieve independence and housing
stability.
At least $82 million for new YHDP grants that would allow more communities the funding necessary
to build partnerships and provide solutions tailored to the unique needs of youth experiencing
homelessness. YHDP funding is an important resource for bringing together stakeholders from
diverse organizations, particularly youth with lived experience of homelessness, to align and expand
services and housing resources for youth experiencing homelessness. YHDP communities have
developed innovative models for serving youth, including peer navigators, who can help youth in
crisis housing and employment services; joint transitional housing and rapid re-housing, which
provides initial intensive supports which decrease as the youth stabilize and are able to establish
more independence; and problem-solving project to help youth reunify with family, where safe, or
identify other resources that can help stabilize the youth.
Emergency Solutions Grants Program ($290 million)
The ESG program provides the first response to people with a housing crisis and engages people
living on the streets. ESG awards funds to over 360 urban counties, metropolitan cities, States, and
territories, supporting a variety of life-saving activities including:
• Emergency shelter for people in crisis;
• Street outreach and other essential services to engage people who may be living on the
streets;
• Rapid re-housing to provide time-limited permanent housing and stabilization services; and
• Homelessness prevention for individuals and families.
National Homeless Data Analysis Project ($7 million)
The National Homeless Data Analysis Project provides critical resources to communities to improve
data collection and reporting. It works to integrate data collection efforts in HMIS with other
Federal funding streams, using software as a service for data integration. This enhances HUD and
communities' ability to report and analyze data about persons experiencing homelessness, produce
standards and specifications for data entry and reporting for all HMIS-generated reports. In
addition, it analyzes point-in-time and longitudinal data to produce the AHAR and provide direct
technical assistance to CoCs on HMIS implementation.
Key Partners and Stakeholders
Throughout the COVID-19 pandemic, HUD has closely partnered with the Centers for Disease
Control and Prevention (CDC) and other Federal agencies and national stakeholders to address the
health risks of serving people experiencing homelessness during a global pandemic. This has
20-4
GAD 47-463 05/03/2022
134
HOMELESS ASSISTANCE GRANTS
resulted in coordinated messaging and efforts to work together to find solutions as we address
COVID-19 and prepare to better address potential health risks in the future.
HUD continues to prioritize key partnerships with local, State, and Federal stakeholders to prevent
and end homelessness. HUD and the Department of Veterans Affairs 0{A) remain committed to
ending veteran homelessness and have implemented joint planning efforts related to data collection
and reporting and partnered to develop milestones and strategies to meet the goal of ending
homelessness among veterans. HUD and the VA continue to successfully administer HUD-VASH,
resulting in over 190,000 veterans being housed since 2008, and continue to improve the efficacy of
the program. HUD, VA, and the United States lnteragency Council on Homelessness (USICH)
continue to collaborate on innovative strategies to reduce veteran homelessness, including the use of
rapid resolution, a problem-solving technique that helps veterans reunify with family members or
find other creative housing options. This partnership has been critical in reducing homelessness by
nearly 50 percent since 2009.
HUD, Department of Education (ED), and the Department of Health and Human Services (HHS)
share the joint goal of ending homelessness among children, families, and youth. Through HUD' s
YHDP process, HUD, HHS, ED, and USICH have worked closely to use data and better understand
performance as well as what interventions and partnerships are necessary to end youth
homelessness.
HUD, HHS, and the Department of Justice (DOJ) jointly fund the Federal Domestic Violence and
Housing Technical Assistance Consortium (the Consortium) - an innovative, collaborative approach
to providing training, technical assistance, and resource development at the critical intersection of
domestic and sexual violence, homelessness, and housing. HUD is also working with the Department
of Labor to help communities better connect people experiencing homelessness to employment
opportunities.
Research-based Evidence of Effectiveness
HUD recently released a series of case studies that highlight how communities across the country
are addressing homelessness.a These studies reinforce the importance of partnerships and the need
to have dedicated teams focused on providing housing and support to successfully address
homelessness.
With the rise of unsheltered homelessness over the past few years, it is critical that HUD focus on
solutions that are appropriate for this population. A report published by the California Policy Lab
analyzed the characteristics of the people experiencing unsheltered homelessness. 4 The researchers
found that physical health, behavioral health, and trauma are significant contributing factors to loss
of housing, particularly for unsheltered women. Unsheltered people continue to experience major
and worsening health conditions while homeless. People with the longest experiences of
homelessness, most significant health conditions, and greatest vulnerabilities are not being served
"U.S. Department of Housing and Urban Development. 2021. "Seattle, Washington: Service-Rich Housing Helps
Combat Chronic Homelessness." https://www.huduser.gov/portal/casestudies/study-031821.html. U.S.
Department of Housing and Urban Development. 2021. ''Long Beach, California: Anchor Place Adds Housing for
Veterans and Others Experiencing Homelessness to the Century Villages at Cabrillo."
https://www.huduser.gov/portal/casestudies/study 012621.html. U.S. Department of Housing and Urban
Development. 2020. ''Bringing People Together to Fight Homelessness in Los Angeles."
https://www.huduser.gov/portal/casestudieslstudy 110920.html.
4 Roundtree, Janey, Nathan Hess, and Austin Lyke. 2019. 'Health Conditions among Unsheltered Adults in the
U.S." https://www.capolicylab.org/health-conditions-among-unsheltered-adults-in-the-u-sl.
20-5
GAD 47-463 05/03/2022
135
HOMELESS ASSISTANCE GRANTS
by emergency shelters. HUD's Annual Performance Report (APR) data for CoC Program-funded
projects indicates that HUD's permanent housing programs admit roughly 30 percent of persons
they serve directly from unsheltered situations. This is higher than HUD's transitional housing
program which admits roughly 21 percent of persons directly from unsheltered situations.
There is a large body of research that demonstrates positive outcomes and cost-savings gained from
housing and supportive services for homeless people. A 2017 study conducted in Orlando showed
that placing 58 persons who regularly use public services (e.g., hospitals, jails) into permanent
supportive housing resulted in a cost savings of nearly $2.5 million in a single year. 5 There is a rich
body of research demonstrating that serving people who are the hardest to serve results in
improving their lives and saving money for the public. 6
The unsheltered and chronic homelessness research supports a need for healthcare providers and
homeless assistance systems to closely collaborate. This is especially true of the aging homeless
population that present with unique health challenges. In a multi-site study in Boston, New York
City, and Los Angeles County, researchers found that the aged homeless population is growing
rapidly and will double or triple (depending on the location) in the next decade. 7 With this growth in
the aged population there will be an increase in service use and costs, including for hospital and
nursing home stays.
HUD continues to research the effectiveness of existing funding efforts. The Understanding Rapid
Re-housing study, evaluates the current rapid re-housing models being used and the perspectives of
people being served in those programs. 8 Additionally, evaluation of the HUD Youth Homelessness
Demonstration Program shows the level of coordination involved with successfully implementing
these grants and the evaluation will provide further explore the impacts of this targeted funding. 9
5 Ability Housing. 2017. "Solutions that Save." https://abilityhousing.org/the-solution-that-saves/.
6 See Culhane, Dennis P ., Stephen Metraux, and Trevor Hadley. 2002. "Public Service Reductions Associated
with Placement of Homeless Persons with Severe Mental Illness in Supportive Housing." Housing Policy
Debates 13(1): 107-63. See also, Cunningham, Mary. 2009. "Preventing and Ending Homelessness-Next Steps."
Metropolitan Housing and Communities Center. Washington, DC: Urban Institute; Martinez, Tia, and Martha
R. Burt. 2006. '1mpact of Permanent Supportive Housing on the Use of Acute Care Health Services by Homeless
Adults." Psychiatric Services 57(7): 992-99; Basu, Anirban, Romina Kee, David Buchanan, and Laura S.
Sadowski. 2012. "Comparative Cost Analysis of Housing and Case Management Program For Chronically Ill
Homeless Adults Compared to Usual Care." HSR 47(1): 523-543; Sadowski, Laura, Romina Kee, Tyler
VanderWeele, David Buchanan. 2009. "Effect ofa Housing and Case Management Program on Emergency
Department Visits and Hospitalizations Among Chronically Ill Homeless Adults: A Randomized Trial" JAMA
301(17): 1771-8; Larimer, Mary, Daniel Malone, Michelle Garner, et al. 2009. Health Care and Public Service
Use and Costs Before and After Provision of Housing for Chronically Homeless Persons With Severe Alcohol
Problems." JAMA 301(13): 1349-57; Cunningham, Mary. 2009. ''Preventing and Ending Homelessness-Next
Steps." Metropolitan Housing and Communities Center. Washington, DC: Urban Institute; Martinez, Tia, and
Martha R. Burt. 2006. '1mpact of Permanent Supportive Housing on the Use of Acute Care Health Services by
Homeless Adults." Psychiatric Services 57(7): 992-99; Tsemberis, Sam, Leyla Gulcur, and Maria Nakae. 2004.
"Housing First, Consumer Choice, and Harm Reduction for Homeless Individuals with Dual Diagnosis."
American Journal of Public Health 94:651.
7 Culhane, Dennis, Thomas Byrne, Stephen Metraux, Randall Kuhn, Kelly Doran, Eileen Johns, and Maryanne
Schretzman. 2019. "The Emerging Crisis of Aged Homelessness: Could Housing Solutions Be Funded by
Avoidance of Excess Shelter, Hospital, and Nursing Home Costs?" https://www.aisp.upenn.edu/wp-
content/uploads/2019/0l/Emerging-Crisis-of-Aged-Homelessness-l.pdf.
8 U.S. Department of Housing and Urban Development. 2020. ''Understanding Rapid Re-housing study."
https://www.huduser.gov/portal/Understanding-rapid-re-housing-study.html.
9 Henderson, Kathryn, Debra Rog, Bernadette Blanchfield, Clara Wagner, Eleanor Kerr, Harihar Bhattarai.
2020. "Evaluation of the HUD Youth Homelessness Demonstration Program: Early Implementation Report."
https://www.huduser.gov/portal/publicationslEvalYHDP-InterimRpt.html.
20-6
GAD 47-463 05/03/2022
136
HOMELESS ASSISTANCE GRANTS
Promoting Equity within underserved communities
HUD's Homeless Assistance Grants support communities' efforts to promote equity in the homeless
response system. HUD provides resources to assist communities to evaluate equity in their homeless
response system, and HUD's proposal to increase funding for CoC Planning will help build
communities' capacity to promote equity. HUD integrated equity into its competitive process to
ensure that communities working towards equity in their system are more competitive and to
encourage other communities to make it a part of their system. Through the COVID-19 response,
HUD has centered equity in the crisis response and will continue to do so.
Technical Assistance
CoC funds also support Technical Assistance (TA), which helps communities improve their homeless
assistance. HUD uses TA resources to:
• Work directly with communities to develop strategic plans and action steps to improve
project and community level performance;
• Develop tools and provide direct assistance to improve data collection, analysis, and
reporting to HUD;
• Increase the overall capacity of grantees to understand their own markets and manage their
portfolios successfully; and
• Develop and provide guidance to communities on critical compliance issues.
HUD is committed to providing a variety of technical assistance resources to communities and
grantees to help identify and address any performance and compliance issues. HUD intends to use
technical assistance as another tool to encourage communities to implement best practices and
improve efficiencies in projects and in the community as a whole.
Information Technology
Within the Information Technology Fund, the Budget requests $3 million to modernize the electronic
Special Needs Assistance Program System (e-snaps).
Program Pain Point
HUD continues to use the e-snaps data system to automate the $2.5 billion Continuum of Care (CoC)
Program Competition. The e-snaps system provides an online data portal for all CoC applicants to
prepare and submit to HUD a detailed project application for funding. However, the system is brittle
and unstable, approaching 14 years old, which is far beyond the original technical limits of the
platform. Basic system changes and updates are costly and each change risks the stability of the
system. HUD staff constantly employ manual interventions to overcome functional gaps in the
system. The CoC Program depends completely one-snaps performance. System failure, or a
significant drop in performance, will be catastrophic, public-facing, and detrimental to local
communities and homeless assistance providers.
Mission Benefits
A more modern and stable platform would speed up and streamline the CoC application and grant
processes for grantees and HUD staff. This reduces risk and uncertainty to grantees who provide
direct homeless assistance, which should improve staffing consistency and improve outcomes.
Replacing e-snaps would also make it easier for HUD to quickly implement special initiatives like
the Youth Homelessness Demonstration Program. A new solution may also provide better
integration with HUD financial systems, improved credentialling and authentication of users, and
better data integration and standardization with other HUD grant systems.
20-7
GAD 47-463 05/03/2022
137
HOMELESS ASSISTANCE GRANTS
Target Functionality
• Improved system performance and stability; reduction in current risks related to long term
availability and support for acute technical problems.
• Improved efficiency for grants management activities, including reduced administrative
burden for HUD staff and grantees, reduced time to award, and improved business
automation such as data analytics and financial system interface.
Projected Cost Savings
A modernized e-snaps should reduce costs of:
• Annual Operations and Maintenance of the system by streamlining the annual
configurations required to meet the NOFO and other programmatic efforts, allowing further
investment into new capabilities and free staff time towards program oversight or analytics.
• Annual licensing for the CSDC/Grantium COTS platform.
• Manual interventions performed by HUD staff, Technical Assistance providers, HUD
infrastructure staff, and grantees required due to functional or process gaps in the system,
performance issues requiring troubleshooting, repetitive reporting in more than one system,
or the manipulations performed to aggregate data originating from multiple systems (SAGE,
HDX, e-snaps, LOCCS, etc.).
Remaining implementation Costs in out-years
NIA
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
290,000 109,459 399,459 355,496 290,000 43,963 333,963 290,000
7,000 10,000 17,000 1,253 7,000 14,000 21,000 7,000
Youth Demonstration 72,000 216,852 288,852 72,156 72,000 214,013 286,013 72,000
Youth TA 10,000 10,000 20,000 6,616 10,000 13.384 23,384 10,000
Rapid Rehousing for
Victims of Domestic
Violence 52,000 73,952 125,952 23.515 52.000 102,000 154.000 52,000
CARES Act ESG 2,270,984 2,270,984 2,270,984
CARES ActTA 17,500 17,500 17.500
Housing Needs for
Victims of Human
Trafficking 1.098 1,098 1,098
Total 3,000,000 5,680,198 8,680,198 5,279,358 3,000,000 3,545,500 6,545,500 3,576,000
al 2021 Carryover, per Sec. 231 of Pubuc Law 116-94, includes Rental Assistance recaptures of $398 million.
bl 2022 Carryover, per Sec. 231 of Public Law 116-94, includes estimated RenlalAss~tance recaptures of $151 million.
20-8
GAD 47-463 05/03/2022
138
HOMELESS ASSISTANCE GRANTS
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
The 2023 President's Budget includes the following:
• Increase the CoC Planning Limit: This provision will allow HUD to increase the CoC
planning grant limit from 3 percent of the total funds available in the geographic area, as
established in the McKinney-Vento Homeless Assistance Act, as amended, to the higher of
5 percent or $50,000. Increasing this limit will allow many smaller CoCs whose award is not
sufficient to hire full time staff to have funding for dedicated staff to coordinate assistance
across the CoC. The impacts of COVID-19 have reinforced the need to better support CoCs in
their effort to coordinate and effectively administer the homeless response system.
General Provisions
The 2023 President's Budget proposes the following new general provision(s):
• Additional flexibility for Tribes to Participate in the CoC Program: This provision
will eliminate barriers to tribes to participate in the CoC Program as recipients and CoCs.
Tribes were historically prohibited from directly participating in the CoC Program as tribal
entities. Recent changes to the CoC Program 1·emoved that restriction but tribes and
communities will need added flexibility to include tribes in the CoC process and to find
solutions uniquely tailored to the needs of Native Americans. These changes are focused on
statutory flexibilities and do not include changes to the budget. (2023 President's Budget,
Sec. 237)
The 2023 President's Budget re-proposes the following general provisions that were enacted in the
2022 appropriation bill:
• Allow Continuum of Care grants to count program income towards matching
requirements: This provision allows Homeless Assistance Grant recipients to count
program income as an eligible match for CoC program funds. (2023 President's Budget, Sec.
221)
• Continuum of Care Transition Grants: This provision allows CoC recipients to receive
one-year transition grants to transition from one CoC program component to another. (2023
President's Budget, Sec. 222)
Legislative Proposals
The 2023 Budget supports the following legislative proposal and will seek changes through the
authorization process:
• Allowing two-year CoC Program NOFO: This proposal would allow HUD to award CoC
Program funds every other year instead of every year. Responding to an annual NOFO
requires CoCs to spend many hours implementing a local competition process and additional
time to complete the application. Many of our CoCs have limited capacity to fulfill the many
requirements of addressing homelessness, which has recently been stretched to their limits
through the COVID-19 response. A two-year NOFO process would allow CoCs to focus more
on strategic planning and performance evaluation to better prevent and end homelessness in
.their communities. This request does not impact the budget request.
20-9
GAD 47-463 05/03/2022
139
HOMELESS ASSISTANCE GR.ANTS
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriations language listed below.
For assistance under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360 et
seq.), $3,576,000,000, to remain available until September 30, 2025: Provided, That of the amounts
made available under this heading-(1) not less than $290,000,000 shall be for the Emergency
Solutions Grants program authorized under subtitle B of such title IV (42 U.S.C. 11371 et seq.); (2) up
to $3,197,000,000 shall be for the Continuum of Care program authorized under subtitle C of such
title IV(42 U.S.C. 11381 et seq.) and the Rural Housing Stability Assistance programs authorized
under subtitle D of such title IV (42 U.S.C. 11408): Provided, That the Secretary shall prioritize
funding under the Continuum of Care program to continuums of care that have demonstrated a
capacity to reallocate funding from lower performing projects to higher performing projects: Provided
further, That the Secretary shall provide incentives to create projects that coordinate with housing
providers and healthcare organizations to provide permanent supportive housing and rapid rehousing
services: Provided further, That the Secretary may establish by notice an alternative maximum
amount for administrative costs related to the requirements described in sections 402(f)(l) and
402(0(2) of subtitle A of such title IV of no more than 5 percent or $50,000, whichever is greater,
notwithstanding the 3 percent limitation in section 423(a)(l 0) of such subtitle C: Provided further,
That of the amounts made available for the Continuum of Care program under this paragraph, not
less than $52,000,000 shall be for grants for new rapid re-housing projects and supportive service
projects providing coordinated entry, and for eligible activities that the Secretary determines to be
critical in order to assist survivors of domestic violence, dating violence, sexual assault, stalking, or
human trafficking: Provided further, That amounts made available for the Continuum of Care
program under this heading in this Act and any remaining unobligated balances from prior Acts may
be used to competitively or non-competitively renew or replace grants for youth homeless
demonstration projects under the Continuum of Care program, notwithstanding any conflict with the
requirements of the Continuum of Care program; (3) up to $7,000,000 shall be for the national
homeless data analysis project: Provided [further], That notwithstanding the provisions of the Federal
Grant and Cooperative Agreements Act of 1977 (31 U.S.C. 6301-6308), the amounts made available
under this paragraph and any remaining unobligated balances under this heading for such purposes
in prior Acts may be used by the Secretary to enter into cooperative agreements with such entities as
may be determined by the Secretary, including public and private organizations, agencies, and
institutions; and (4) not less than $82,000,000 shall be to implement projects to demonstrate how a
comprehensive approach to serving homeless youth, age 24 and under, in up to 25 communities with a
priority for communities with substantial rural populations in up to eight locations, can dramatically
reduce youth homelessness: Provided, That of the amount made available under this paragraph, up to
$10,000,000 shall be to provide technical assistance on improving system responses to youth
homelessness, and collection, analysis, use, and reporting of data and performance measures under
the comprehensive approaches to serve homeless youth, in addition to and in coordination with other
technical assistance funds provided under this title: Provided further, That the Secretary may use up
to 10 percent of the amount made available under the previous proviso to build the capacity of current
technical assistance providers or to train new technical assistance providers with verifiable prior
experience with systems and programs for youth experiencing homelessness: Provided further, That
youth aged 24 and under seeking assistance under this heading shall not be required to provide third
party documentation to establish their eligibility under subsection (a) or (b) of section 103 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) to receive services: Provided further, That
unaccompanied youth aged 24 and under or families headed by youth aged 24 and under who are
living in unsafe situations may be served by youth-serving providers funded under this heading:
Provided further, That persons eligible under section 103(a)(5) of the McKinney-Vento Homeless
Assistance Act may be served by any project funded under this heading to provide both transitional
housing and rapid re-housing:
20-10
GAD 47-463 05/03/2022
140
HOMELESS ASSISTANCE GRANTS
Provided, That for all matching funds requirements applicable to funds made available under this
heading for this fiscal year and prior fiscal years, a grantee may use (or could have used) as a source
of match funds other funds administered by the Secretary and other Federal agencies unless there is
(or was) a specific statutory prohibition on any such use of any such funds: Provided further, That
none of the funds made available under this heading shall be available to provide funding for new
projects, except for projects created through reallocation, unless the Secretary determines that the
continuum of care has demonstrated that projects are evaluated and ranked based on the degree to
which they improve the continuum of care's system performance: Provided further, That any
unobligated amounts remaining from funds made available under this heading in fiscal year 2012
and prior years for project-based rental assistance for rehabilitation projects with 10-year grant terms
may be used for purposes under this heading, notwithstanding the purposes for which such funds
were appropriated: Provided further, That unobligated balances, including recaptures and carryover,
remaining from funds transferred to or appropriated under this heading in fiscal year 2019 or prior
years, except for rental assistance amounts that were recaptured and made available until expended,
shall be available for the current purposes authorized under this heading in addition to the purposes
for which such funds originally were appropriated.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
20-11
GAD 47-463 05/03/2022
141
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Community Planning and Development
Housing Trust Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
,2022 Annualized CR 739,808 634,579 244,496
2023 President's Budget 393,000 209,428 19,768 622,196 510,809 360,994
Change from 2022 (346,808) 103,576 21,421 (221,811) (123,770) 116,498
al 2021 Total Resources include sequestered funds (5.7% of budget authority, or $40.516 million) made temporarily unavailable per the 0MB Report to the Joint
Congress on the Joint Reductions for Fiscal Year 2021, partially offset by $19.263 million sequestered in 2020 that became available in 2021.
bl 2022 Total Resources include sequestered funds (5.7% of budget authority, or $42.169 million) made temporarily unavailable per the 0MB Report to the
Joint Congress on the Joint ReducNons for Fiscal Year 2022, partially offset by $40.516 million sequestered in 2021 that became available in 2022.
c/ 2023 Total Resources include $42.169 million previously sequestered in 2022, partially offsat by $22.401 million (or 5.7% of estimated 2023 budget
authority).
PROGRAM PURPOSE
The Housing Trust Fund (HTF) is a mandatory program authorized by the Housing and Economic
Recovery Act of 2008. This Act directed the account to be funded from assessments from the Federal
National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation
(Freddie Mac). This account is a formula-based program for the States and U.S. Territories that
finances the development, rehabilitation, and preservation of affordable housing for extremely low-
income and very low-income families.
BUDGET OVERVIEW
The 2023 President's Budget estimates that $393 million will be provided to this account from
assessments from Fannie Mae and Freddie Mac. It also supports legislative proposals that would
authorize an environmental review process for Housing Trust Fund projects, align the program with
Davis Bacon wage requirements required in other programs, and eliminate the two-year statutory
commitment requirement.
JUSTIFICATION
Housing Trust Fund program funding of $393 million will leverage approximately $3.6 billion of
other private and public funds needed to pay for the production of an estimated 3,593 units of
affordable rental housing for extremely low-income households over time. It would also preserve or
create approximately 7,000 jobs.
The Housing Trust Fund program is critically needed funding for affordable housing as documented
by HUD's survey results in the Worst Case Housing Needs: 2021 Report to Congress, which states
that in 2019, 7.7 million households had worst case needs. 1 Most of these households had extremely
low incomes (74 percent or 5.7 million) and 97.5 percent had severe housing cost burdens. These are
households that do not receive government housing assistance and pay more than one-half of their
incomes toward rent, and/or those that live in severely inadequate conditions.
I https://www.huduser.gov/portal/publications/Worst-Case-Housing-Needs-2021.html.
21-1
GAD 47-463 05/03/2022
142
HOUSING TRUST FUND
The ratio of affordable and available units to very low-income renters followed a downward path
from 2009 to 2017. After 2017, there was some improvement, with the ratio increasing from 59 units
per 100 renter households in 2017 to 62 units per 100 renter households in 2019. For extremely low-
income households - the target population of this program - the ratio of affordable and available
units did not change: there were only 40 affordable and available units for every 100 extremely low-
income renter households in both 2017 and 2019.
The Housing Trust Fund program addresses Administration priorities through its support of
underserved communities and by ensuring access to and increasing production of affordable housing
through grantee discretion to determine the type and location of affordable housing to fill the need of
the most vulnerable populations within their communities. Key features of the program are:
• Income Targeting: At least 75 percent of the funds must be used for extremely low-income
families, or families with incomes at or below the poverty line (whichever is greater), unless
the amount available for allocation is below $1 billion, at which point 100 percent of the
funds must be used for extremely low-income families.
• Period of Affordability: Housing Trust Fund projects have a 30-year period of affordability.
• Eligible and Prohibited Activities: Eligible activities include: production, preservation, and
rehabilitation of affordable rental housing and affordable housing for homeownership
through the acquisition, new construction, reconstruction, or rehabilitation of non-luxury
housing with suitable amenities, including real property acquisition, site improvements,
conversion, demolition, financing costs, relocation expenses, operating costs of program-
assisted rental housing, and reasonable administrative and planning costs.
Equity
Public policies and disparities in application of laws have contributed to inequality in opportunities,
healthcare, and prosperity for many Americans and their communities.
The recent economic effects of the COVID-19 pandemic are not evenly distributed across the
population. Households that were already experiencing housing affordability or stability issues are
more likely than other households to hold jobs affected by public health and social distancing
measures. The pandemic exacerbated these affordability and stability issues for these households.
Federal, State, and local eviction moratoria and appropriation of substantial resources for rental
assistance has lessened the pandemic's impact on existing affordability and stability issues. In the
intermediate and long-term, however, the Nation must prioritize expansion of the quality housing
stock available and affordable for households with worst-case housing needs. Through its deep
income targeting and 30-year minimum affordability requirements, this program is an effective
vehicle for delivering that investment.
The Housing Trust Fund helps to strengthen and broaden the Federal housing safety net for people
in need by increasing production of, and access to, affordable housing for the nation's most
vulnerable populations. At the estimated 2023 funding level, 100 percent of funds must be used for
extremely low-income families. This targeting ensures the priority of this program is helping those
with the greatest needs.
Evaluating the effectiveness of the program
Since the program started in 2016, the Housing Trust Fund program has:
21-2
GAD 47-463 05/03/2022
143
HOUSING TRUST FUND
• Completed 2,164 units of affordable housing, with an average cost per assisted unit of
$98,444; and
• Leveraged $1.97 billion of other funds for affordable housing with a leveraging ratio of
$9.25: 1 (i.e., $9.25 of private or other public dollars for each Housing Trust Fund dollar
invested in rental projects).
HUD has developed a range of tools to provide oversight and to assist grantees to better manage
their programs. These tools help to track program funds, track program deadlines, and to identify
and lower risk in the program. Most of these tools are publicly available on the program website. For
example, the Open Activities Report identifies the development progress of individual Housing Trust
Fund projects until the projects are completed. 2
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
anyover nto me es 5. m, ,on o nds recaptured in 2.
bl 2021 and 2022 Total Resources reflect net sequestration activity.
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
The 2023 Budget supports the following legislative proposals and will seek changes through the
authorization process:
• Authorize an environmental review process for HTF projects: Under current law,
RTF-funded projects cannot satisfy Federal environmental requirements through the
environmental review process in 24 CFR Part 58. HUD proposes to authorize a Part 58
review process for HTF.
The inability to employ environmental mitigation measures through the Part 58 process has
caused many potential HTF project sites to be excluded from the program and some projects
to be deemed ineligible after HTF grantees have already expended funds on the project.
This legislative proposal would align this program with other HUD grant programs by
authorizing the Part 58 process for HTF projects, permitting RTF units to be included in
projects being developed with other HUD funding sources and increasing the number of sites
that can be considered for development with HTF funds.
• Align HTF with Davis-Bacon wage requirements required in other HUD programs:
Under current law, Davis-Bacon wage rate requirements do not apply to RTF-assisted
development projects. HUD is proposing an amendment to apply Davis Bacon requirements
to HTF, which will align with program requirements of other HUD programs including the
HOME Investment Partnerships Program. This amendment will result in workers ofHTF-
assisted development projects receiving a fair wage for their labor.
2 For example, see HTF Open Activities Reports - HUD Exchange. Note that HUD considers these reports to be
estimates since grantees are not reqwred to report until completion.
21-3
GAD 47-463 05/03/2022
144
HOUSING TRUST FUND
• Eliminate the two-year commitment requirement: A statutory provision and program
regulation require funds to be used or committed to a project within two years of grant
execution. To date, several grantees have missed the deadlines, resulting in the required
deobligation of these funds from these grantees. The HOME Investment Partnerships
Program has similar commitment requirements that have been suspended by the Congress
in annual appropriations laws beginning in 2017 and the Department is requesting similar
treatment with HTF. The HOME suspension resulted in funds being committed to projects
that are ready to move forward instead of projects that were just trying to meet a
commitment requirement deadline, which over time has led to fewer failed projects requiring
repayment because the grantee is able to perform due diligence to ensure the project will
move forward before committing HOME funds. The funds remain with the grantee for use on
viable projects. HUD anticipates that eliminating the HTF two-year commitment
requirement deadline will produce similar results and the stakeholders will be receptive to
this proposal.
APPROPRIATIONS LANGUAGE
None.
21-4
GAD 47-463 05/03/2022
145
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
Project-Based Rental Assistance
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 13,465,000 480,398 13,945,398 13,574,246 13,541,747
2022 Annualized CR 13,465,000 477,000 13.942,000 13,738,000 13,589,000
2023 Presidents Budget 15,000,000 317,000 15,317,000 15,054,000 14,517,000
Change from 2022 1,535,000 (160,000) 1,375,000 1,316,000 928,000
al FY 2021 Resources includes unobligated balances of $369 million, recaptures realized in 2021 of $55 million, and $56 million transferred from the Public
Housing Fund.
bl FY 2022 Resources includes an estimated $371 million of unobligated balances, an estimated $56 million from recaptures, an estimated $33 million from
transfers from the Public Housing Fund, and an estimated $17 million from Housing for the Elderly for RAD conversions.
cl FY 2023 Resources includes an estimated $204 million of unobligated balances, an estimated $56 million from recaptures, an estimated $40 million from
transfers from the Public Housing Fund, and an estimated $17 million from Housing for the Elderly for RAD conversions.
PROGRAM PURPOSE
The Project-Based Rental Assistance (PBRA) program provides over 1.2 million low-income and very
low-income families with decent, safe, and affordable housing. Without this assistance, many
currently affordable properties would either convert to market rates or would be unable to generate
enough rental income to be maintained in adequate living conditions.
BUDGET OVERVIEW
The 2023 President's Budget requests $15 billion for the PBRA program, which is $1.535 billion
more than the 2022 Annualized CR. This includes:
• $14.065 billion for contract renewals and amendments, including public housing properties
that converted to PBRA via the Rental Assistance Demonstration (RAD);
• $50 million for RAD conversion subsidy for public housing projects converting to PBRA;
• $10 million for RAD conversion subsidy for the Section 202 Project Rental Assistance
Contracts (PRACs) converting to PBRA;
• $275 million for Budget-Based Rent Increases (BBRI) for certain at-risk post-Mark-to-
Market (M2M) properties and other PBRA properties with health and safety deficiencies;
• $31 million for BBRis for PBRA properties serving the elderly to cover the cost of a service
coordinator;
• $194 million for Moderate Rehabilitation and Single Room Occupancy renewal programs;
and
• $375 million for Performance-Based Contract Administration (PBCA).
This Budget also requests modifications to the RAD statute to expand and improve the efficacy of
RAD conversions to both PBRA and Project-Based Vouchers (PBV), including:
• The elimination of the cap on public housing units that may convert under RAD and the
sunset date by which applications must be received.
• Avoiding disincentives to conversion to RAD for Second Component conversions by excluding
existing service coordinator and service costs from the 120 percent of Fair Market Rent
22-1
GAD 47-463 05/03/2022
146
PROJECT-BASED RENTAL ASSISTANCE
(FMR) rent cap for new Section 8 contracts so that properties serving the elderly can
effectively be preserved without losing access to critical services.
• Ensuring continued availability of services for residents following a RAD conversion to PBRA
or PBV under the first component. This will guarantee that resident services funding under
the Jobs Plus, Resident Opportunities for Self-Sufficiency (ROSS), and Congregate Housing
Services Program (CHSP) programs awarded to public housing properties prior to conversion
may continue to operate fully and, as appropriate, be eligible for renewal at the completion of
the grant term. Additionally, this will also permit the full implementation of the Jobs Plus
Initiative program design following conversion of properties benefiting from Jobs Plus
program grants.
• Permitting the conversion and integration of the budget authority associated with Tenant
Protection Vouchers (TPV) authorized following a Section 18 approval into RAD PBRA or
PBV contracts, and permitting previously converted properties that have both a PBV and a
PBRA contract to combine those contracts into one platform (i.e. either PBRA or PBV).
Authorizing the use of Participating Administrative Entities (PAEs) to reduce the
administrative burden on small properties converting under RAD.
• Authorizing the budget-neutral conversion of Section 811 PRAC properties under RAD.
• Authorizing the budget-neutral conversion for properties assisted under Senior Preservation
Rental Assistance Contracts (SPRACs) under RAD.
Housing-related challenges can trigger significant mental health distress. Training and technical
assistance resources available in this account will be used to support HUD's department-wide effort
to reduce the impacts of housing-related challenges on mental and emotional well-being and improve
the experience of the Department's customers. HUD will coordinate validated, evidence-based
training for front-line housing professionals on the signs and symptoms of emotional distress and
mental health challenges. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
JUSTIFICATION
Contract Renewals and Amendments - $14,065 billion
The Budget fully funds the renewal or amendment of approximately 17,240 rental assistance
contracts, providing safe, stable, and affordable housing to approximately 1.2 million low-income and
very low-income households. The PBRA program serves some of the Nation's most vulnerable
populations including seniors, families with children, and persons with disabilities; it also serves
many people of color (demographic detail below in chart). This includes funds for renewal of Section
8 contracts already within the Office of Housing PBRA portfolio, as well as properties that are
projected to convert to PBRA during 2021 and 2022 via the Rental Assistance Demonstration
program and require PBRA budget authority for the first time in 2023. This also includes $20 million
for Section 8 Original Term contract amendments, which were used to amend long-term project-
based Section 8 contracts executed primarily in the 1970s and 1980s. The PBRA contract renewal
and amendment amounts assume that PBRA annual gross current services needs will be fully
funded in 2022.
Increases in gross needs for PBRA renewals and amendments are driven by several factors, most
notably annual rent increases and the addition of units formerly funded in other programs (e.g.,
Public Housing) entering the PBRA renewal portfolio for the first time. For 2023, HUD estimates
PBRA subsidy inflation at approximately 4.0 percent, resulting from Operating Cost Adjustment
22-2
GAD 47-463 05/03/2022
147
PROJECT-BASED RENTAL ASSISTANCE
Factors (OCAF) and other rent adjustments, coupled with no significant increases in tenant
contributions, relative to 2022 enacted levels.
PBRA contracts are public-private partnerships working with for-profit and non-profit entities in
local communities and providing a crucial Federal investment in the nation's stock of deeply
affordable housing. In places of disinvestment, PBRA improves housing quality and safety through
higher management and occupancy standards than are generally required under State and local law.
In places with high housing costs, PBRA provides access to affordable housing not otherwise
available for many households.
The program maintains and protects the long-term Federal investment in these assets. Nationally,
only 37 affordable units are available per 100 extremely low-income renters.I Without rental
assistance, many of these households would not be able to access housing at local market rates or
would have very high housing costs. Households burdened with high housing costs often sacrifice
spending on other critical expenses such as food, healthcare, and transportation to stay housed,
potentially impacting their health outcomes and access to job and educational opportunities. 2
PBRA funding directly reduces worst-case housing needs by providing affordable housing to
populations likely to be in this situation, including families with children, senior citizens, and
persons with disabilities, who might otherwise be at risk of experiencing homelessness.
Approximately 45 percent of assisted households are headed by elderly persons, 16 percent by
persons with disabilities, and 33 percent are families with children. 3
The PBRA program is a crucial component of the Federal housing safety net for people in need.
Multifamily housing assisted by PERA stabilizes neighborhoods and contributes to greater local
economic opportunity by providing employment, increasing the buying power of assisted tenants in
support of local businesses, and increasing local tax bases. The PBRA program directly contributes to
job creation and retention in the fields of property management, maintenance, general construction,
and contract work such as landscaping, pest control, security, snow removal, equipment servicing,
legal representation, and property insurance. Because PBRA contracts are a place-based investment,
they provide opportunities for the Department to engage with communities where they are located
and foster connections between initiatives and programs at the local level. Without ongoing rental
income, some properties may be unable to continue payments on existing debt, including mortgages
insured by FHA or backed by bonds issued by State housing finance agencies. The periodic
refinancing of the debt underlying projects assisted by PBRA generates significant capital available
for investment in construction repairs and improvements. Refinancing and capital improvements
create opportunities for increasing the energy efficiency of PBRA properties. HUD incentivizes
energy efficiency at FHA-insured PERA properties undergoing refinance through the FHA Green
Mortgage Insurance Premium (MlP) program. Of 16,800 total PBRA properties, more than 5,100
PBRA properties carry financing issued by FH,\.
The Budget also funds the Real Estate Assessment Center's (REAC) efforts to eliminate the backlog
of overdue physical inspections accrued largely during the COVID-19 pandemic, consistent with
HUD Strategic Objective 2B - Improve Rental Assistance. The funds requested will enable REAC to
eliminate the multifamily housing inspection backlog and maintain on schedule inspections and re-
inspections consistent with multifamily program regulations through the end of 2023. Funds
1 National Low Income Housing Coalition (2021). The Gap: A Shortage of Affordable Rental Homes March 2021.
Analysis based on tabulations of 2019 American Community Survey Public Use Microdata Sample data.
Available at: https://reports.nlihc.org/gap
2 Joint Center for Housing Studies of Harvard University (2020). The State of the Nation's Housing 2020.
Available at: https://www.ichs.harvard.edu/state-nations-housing-2020
3 HUD Administrative Data. 12 Month Tenant Characteristics Report - Ending December 31, 2020. Available
at: https://www.hud.gov/sites/dfiles/Housing/documents/Tenant Characteristics Rpt.pdf
22-3
GAD 47-463 05/03/2022
148
PROJECT-BASED RENTAL ASSISTANCE
requested also support inspections-related contracts facilitating analysis of inspection data,
performance reporting, and the improvement ofHUD's inspection program through the National
Standards for the Physical Inspection of Real Estate (NSPIRE) contract.
Rental Assistance Demonstration Activities - $60 million
The Budget includes a total of $60 million for RAD activities: $50 million in RAD conversion subsidy
in the PERA account to support the cost-effective conversion of 30,000 public housing properties that
are unable to convert using only the funds provided through existing appropriations, and $10 million
in RAD conversion subsidy to support the cost-effective conversion of 3,000 Section 202 PRAC
properties that could not otherwise participate in a RAD conversion to support a more sustainable
long-term operation. These funds would also be available to utilize PAEs to provide direct support to
small owners and properties for the administrative costs of the RAD conversions under both
components of RAD.
Budget-Based Rent Increases (BBRI) for certain at-risk post-Mark-to-Market properties
and other PBRA properties with health and safety deficiencies - $275 million
The Budget includes up to $250 million to allow budget-based rent adjustments for certain at-risk
post-Mark-to-Market (M2M) Section 8 properties to prevent distress and facilitate rehabilitation,
22-4
GAD 47-463 05/03/2022
149
PROJECT-BASED RENTAL ASSISTANCE
consistent with program requirements that the property rents remain at or below comparable
market rents. M2M contract rents are initially set at market levels and may currently only be
adjusted by OCAF. Of the approximately 1,800 post-M2M Section 8 properties, approximately 830
have rents currently below Fair Market Rents for their locality. This Budget would allow a BBRI
adjustment for those properties at risk of becoming distressed. The Budget also includes at least
$25 million for BBRI adjustments for other PBRA properties that have health and safety
deficiencies, to set rents at or below market rent, based on a current rent comparability assessment.
This funding would stabilize operating budgets of the affected properties and, where needed, provide
for rehabilitation and/or transfer of ownership. This will ensure quality management of the
properties, achieve greater sustainability, and increase the availability of affordable housing units by
preserving these investments farther into the future while preventing default on FHA-insured
mortgages and Section 8 contracts.
Budget-Based Rent Increases to fund service coordinators for the elderly- $31 million
This Budget includes $31 million to support BBRis at PBRA properties serving the elderly to cover
the cost of a service coordinator to help elderly residents stay healthy and age in place. Elderly
service coordination is recognized as a cost-effective means to support seniors aging-in-place and
prevent premature institutionalization in nursing homes. These rent increases would be limited to
circumstances where budget-based rent adjustments are allowed by statutory program
authorizations but have been constrained in recent years by HUD policies designed to slow program
cost growth. HUD would modify its rent adjustment procedures to reflect availability of the
requested funds.
Moderate Rehabilitation and Single Roo:n Occupancy renewal programs - $194 million
The requested funding provides $194 million for renewals in Section 8 Moderate Rehabilitation and
the Single Room Occupancy Program for Homeless Individuals (commonly known as the Mod Rehab
and SRO programs).
Contract Administration - $375 million
The Budget includes $375 million to maintain the Contract Administration program in 2023. This
level of funding will ensure critical contract administration services continue without interruption.
The extension of existing PBCA agreements is estimated to cost up to $395 million in 2023, which
HUD would fund from new appropriations and supplement with $20 million in Housing Certificate
Fund recaptures. Estimates provide for continuation of Management and Occupancy Reviews,
incorporate projected transfers of existing non-PBCA administered contracts into the PBCA
portfolio, and include projected increases in Fair Market Rents, upon which fees are based. This
assumes the extension of current agreements, though HUD may complete pending procurements to
replace the current agreements by 2023.
Rental Assistance Demonstration (RAD)
The RAD conversion to PBRA and PBV is a powerful tool to secure the Federal safety net that has
preserved over 195,000 affordable homes thus far (157,400 in public housing and 37,600 in other
HUD rental programs). In addition, through RAD, PHAs and private owners have moved assisted
housing to lower-poverty neighborhoods, allowed residents to use tenant-based assistance if they
want to find new housing, and produced more energy-efficient and climate-resilient housing free of
environmental hazards. The outcomes associated with the converted public housing units are
particularly noteworthy:
22-5
GAD 47-463 05/03/2022
150
PROJECT-BASED RENTAL ASSISTANCE
• The PHAs' development teams have generated over $14 billion, or over $60,000 per home,
for the rehabilitation or redevelopment of modern, safe, and affordable housing for low-
income households. These teams have secured $14.83 for every $1 of appropriated public
housing funds contributed to project budgets.
• Over 21,000 of the most-distressed public housing apartments have been demolished and
replaced with newly constructed homes, all meeting international standards for energy
efficiency.
• Over 9,000 homes have been moved away from detrimental environmental conditions,
floodplains, and opportunity deserts and into neighborhoods with greater access to jobs,
schools, and transportation.
All properties have undergone an environmental review as a condition of conversion,
including evaluating, and where necessary mitigating, the presence of radon, lead,
asbestos, carbon monoxide, and mold.
• All properties have been evaluated for their energy- and water-efficiency and have
implemented cost-effective improvements to decrease their carbo~ footprint.
• Over 250,000 jobs have been created, directly or indirectly, through RAD construction
activities, including many jobs for low-income persons through HUD's Section 3
requirements.
There remain many public housing properties that are unable to leverage the public and private
capital needed for property improvements with subsidy levels based only on available appropriated
funds. The public housing capital backlog, together with additional modernization needs, require a
cost-effective, leveraged strategy to achieve a comprehensive modernization; this Budget advances
those efforts. The funding supports the cost-effective conversion of public housing properties that are
unable to convert using only the funds provided through existing appropriations. Several of the
general provisions requested below protect residents' access to services, provide an affordable
housing preservation strategy for additional portfolios of at-risk properties, provide technical
capacity to support small owners, and assure permanent affordability of converted properties
blending RAD and Section 18 strategies.
The $60 million requested in PBRA for RAD subsidy conversion is part of the Administration's
whole-of-government approach to the climate crisis. In total, HUD's budget requests $1.065 billion in
investments across several programs to assist communities reduce carbon pollution, increase
resilience to the impact of climate change, and deliver environmental justice. The National Climate
Assessment has shown that climate change disproportionately impacts low-income and
disadvantaged communities, the very communities and households served by HUD programs. HUD's
Budget addresses climate change on two fronts: both in tracking and lowering the carbon footprint
and energy consumption of the 4.5 million units of public and assisted housing, and at the same time
helping the communities served by HUD programs to better withstand and increase their resilience
to future disasters. These investments are crucial to assist communities throughout the country
mitigate and prepare for the worst effects of climate change.
Please see the "Climate Initiative" justification for more details.
IT Modernization
Within the Information Technology (IT) Fund, the Budget requests $5 million for integrated Real
Estate Management System (iREMS) and $1.5 million for Tenant Complaint Customer Relationship
Management (CRM). These two projects will directly support HUD's PBRA program in providing
over 1.2 million low-income and very low-income families with decent, safe, and affordable housing:
22-6
GAD 47-463 05/03/2022
151
PROJECT-BASED RENTAL ASSISTANCE
• iREMS Modernization:
Program Pain Point
The integrated Real Estate Management System (iREMS) is the primary system for the oversight
and asset management of insured and assisted properties in the portfolio of HUD's Office of
Multifamily Housing Programs. GSA, GAO, and Multifamily leadership have found that iREMS is
vulnerable to unacceptably high risk of data errors from manual input processes, having to use ad
hoc tools such as MS Access for reporting, and not interfacing with other systems in real time.
Congressional mandates and Executive Orders that require Multifamily Housing action, such as
security, privacy, and records management regulation, energy efficiency programs, FHA pilot
programs, and the Rental Assistance Demonstration, are all hampered by an inability to integrate
them fully into the Multifamily Housing asset management process in iREMS. Reporting from Asset
Management field staff is often inaccurate because of inconsistencies between HEREMS, the
underlying source database, and iREMS. Poor quality Housing data continues to increase the risk of
HUD failing to meet its monitoring requirements of troubled properties within its portfolio.
Mission Benefits
The success of MFH and HUD's mission is deeply tied to the decision-making done from HEREMS to
iREMS data processing. Therefore, ensuring the accuracy, completeness, reliability, and timeliness
of this data has broad cross-program implications. An improved HEREMS to iREMS database model
will serve as the central data repository for all Multifamily Housing, collecting data from more than
20 systems and integrating data across systems. Improved data and reporting in iREMS will provide
essential support to HUD's efforts to provide decent, safe, and sanitary housing for tenants and to
ensure program compliance.
Target Functionality
• Increase regulatory compliance on currently non-compliant mandates from privacy,
cybersecurity, and records management.
• Increase flexibility in responding to the fast-evolving business requirements of MFH by
providing more tools to adapt to the forecasted increase in MFH loan applications.
• Enhance decision-making, ensuring the accuracy, completeness, reliability, and timeliness of
iREMS/HEREMS data has broad cross-program benefits.
Projected Cost Savings
The existing HEREMS/iREMS data model is outdated, expensive, difficult to maintain, and it is
currently failing to meet system requirements. !REMS has an estimated $2 million backlog in
development priorities that continues to grow. Improvements in the system would result in a cost
benefit as it would support efficiencies in HUD's asset management and oversight functions.
Tenant Complaint CRM:
Program Pain Point
Multifamily (MFH) Asset Management staff, Performance-Based Contract Administrators (PBCAs),
the Multifamily Clearinghouse call center, and Field Program Management (FPM) staff are unable
to conduct unified intake, tracking and resolution of tenant feedback related to unsafe and
unsanitary property conditions or concerns about exigent health and safety conditions in
Multifamily-assisted properties. The various parties maintain multiple systems with disparate
rudimentary and uncoordinated logging and tracking of information, which is not conducive to
ensuring the issues identified by tenants are addressed swiftly and satisfactorily.
22-7
GAD 47-463 05/03/2022
152
PROJECT-BASED RENTAL ASSISTANCE
As a result, MFH is substantially limited in its ability to understand, track, and address such
complaints without a centralized tracking/response system. The current practice of various entities
within HUD and contractors logging and acting on feedback independently restricts HUD's ability to
manage its property portfolio in a coordinated manner.
Mission Benefits
An integrated tenant complaint logging and tracking system would allow HUD to effectively assess
and act upon a wide variety of complaints regarding properties in its portfolio and take a coordinated
approach regardless of the point of intake and allow all entities to track and update progress toward
resolution in real time. This would allow HUD to both be more responsive to tenants by ensuring the
appropriate party follows up and more efficient by avoiding duplicative work on the same issue.
This integrated tenant feedback tracking system will also enable HUD to better understand the
overall volume and nature of complaints both at individual properties and across different portions
of our portfolio, such as by city, program, or management agent, resulting in increased awareness of
conditions and potential issues within the MFH property portfolio.
Target Functionality
• Full integration as a single system for intake and tracking of tenant complaints by (MFH)
Asset Management staff, PBCAs, the Multifamily Clearinghouse call center, and FPM.
• Ability of staff to have real time feedback and reporting on status of tenant complaints and
ongoing action tracking and reporting.
• Ability to aggregate instances of tenant feedback within a particular property and across
portfolio on an ongoing basis.
Projected Cost Savings
PBCAs and other contractors would not need to invest in standalone system(s). An integrated
platform would also reduce duplication of effort across all responsible parties.
Remaining implementation Costs in Outyears
NIA
For additional information regarding HUD's IT investments, please see the Information Technology
Fund justification.
22-8
GAD 47-463 05/03/2022
153
PROJECT-BASED RENTAL ASSISTANCE
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Renewals/Ame
ndments 12,879,000 178.393 13,057,393 12,926,138 12,879,000 88.725 12,967.725 14,065,000
Renta
Assi:5-tence
O.,mon&tralon
Convers!on
Subsidies 63,910 63,910 56,061 113.[)49 113,849 60,000
Is
and Heallh and
Sale!)' BBRls 275,000
BBRI ervice
Coordinators 31,000
Mod Rehab
and SRO
Renewals 230,000 56,861 286,861 223,226 230,000 105,779 335,779 194,000
coiira:t
Administrators 350,000 350,000 350.000 350,000 350,000 375,000
enant
Education and
Outreach 6,000 3,800 9,800 6,000 9,800 15,800
Contract
Renewals
CARES Act 177,434 177,434 18,822 158,725 158,725
Total 13,465,000 460,398 13,945,398 13,574,247 13,465,000 476,878 13,941,878 15,000,000
a/ 2021 Resources include unobligated prior-year balances of $369 million, $55 million from recaptures of prior-year obligations realized in 2021, and $56
million transferred from the Public Housing Fund for Rental Assistance Demonstration Conversions (RAD).
bl 2022 Resources include an estimated $371 million of prior-year unobligated balances, an estimated $56 million from recaptures of prior year obligations,
an estimated $33 million of transfers from lhe Public Housing Fund for Rental Assistance Demonstration Conversions, an estimated $15 million from Housing
for the Elderly Appropriated funds and $2 million from Housing for the Elderly unobligated funds for RAD conversions, PIH/MOD Rehab and CPD/SRO
canyover into 2022 includes $42 million from unapportionedlunobligated recaptures.
cl 2023 canyover includes an estimated $204 million of unobligated prior-year balances, an estimated $56 million from recaptures of prior-year obligations, an
estimated $40 million of transfers from Public Housing Fund for Rental Assistance Demonstration Conversions, and an estimated $17 million transferred from
Housing for the Elderly for RAD conversions,
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
Provide capacity support for small properties and owners converting through RAD: Owners of small
properties, including those assisted under Section 202 PRAC and Section 8 Mod Rehab, sometimes
struggle with the cost and complexity of certain undenvriting requirements that HUD has
established to ensure that the property will be physically sound and free of environmental hazards.
This proposal would authorize the use of Participating Administrative Entities (PAEs), originally
used in the Mark-to-Market program, to conduct the property level due diligence, including Capital
Needs Assessments and environmental reports, that are required of all RAD conversions. They
would provide significant relief for owners of small properties, where the cost of such due diligence is
often prohibitive to taking the necessary steps to improve the property for residents. These small
22-9
GAD 47-463 05/03/2022
154
PROJECT-BASED RENTAL ASSISTANCE
properties are often in underserved communities, and this authority will assist in long-term
preservation and affordable housing opportunities.
General Provisions
The 2023 President's Budget proposes the following general provision(s):
Rental Assistance Demonstration (RAD)
Preservation of assisted properties is part of reinvesting in communities that have been underserved,
neglected, or excluded from economic and housing opportunity in the past, often in continuation of
racial segregation. Preservation is also a way to ensure affordable housing options in places of high
or rising housing costs to reduce past patterns of exclusion. RAD conversions have proven to be a
versatile and effective preservation tool that also promotes sustainable communities through energy
efficiency improvements, eliminates environmental hazards, and creates the opportunity to place
and secure deep rental assistance in racially integrated neighborhoods (2023 President's Budget, Sec
232).
This Budget includes several proposals to improve and expand the Rental Assistance Demonstration.
First Component - Conversion of Public Housing Properties
• Eliminate the sunset date for participation in RAD: HUD is currently authorized to receive
applications from PHAs to convert public housing properties through RAD until September
30, 2024. RAD conversions are a proven and desired tool for repositioning and recapitalizing
public housing. The sunset date constrains the ability of PHAs to plan portfolio
transformations that may require more time to implement, reduces PHAs' ability to utilize
leverage for improving properties, and introduces uncertainty for plans to improve public
housing developments.
• Eliminate the cap on the number of public housing units allowed to convert under RAD:
HUD is currently authorized to convert 455,000 public housing units through RAD. RAD is a
proven strategy which public housing authorities (PHAs) can use to generate capital,
improve properties, and improve conditions for residents. RAD has produced sustainable
affordable housing opportunities and preserved them for the long-term. The cap constrains
the number of cost-effective conversions allowable under the program. Elimination of the cap
makes this tool available to all PHAs wishing to participate in the program.
• RAD for Section 18 Preservation Activities: PHAs routinely blend the use of RAD and
Section 18 disposition towards the preservation and recapitalization of public housing assets.
However, the units approved through Section 18 can only result in a separate PBV contract
that does not contain long-term affordability protections as exist in RAD. This authority
would permit the units leaving public housing through Section 18 to be folded into the RAD
PBVor RAD PERA contract to guarantee the long-term affordability of the assisted units
and to simplify program administration for owners and PHAs. This authority would also
permit properties that currently have some units assisted under a RAD PERA contract and
some units assisted under a PBV contract to place their property on a single Section 8
platform. The 2023 budget modestly expands the 2022 proposal to allow conversion of
properties onto a single Section 8 platform (PBV or PBRA) regardless of each property's
current assistance profile.
• Jobs Plus. ROSS. and CHSP Continuation: This proposal would expand the Jobs Plus
program to allow PBV and PERA properties to be eligible for the program. Jobs Plus is
currently only available to public housing residents. The program has a demonstrated impact
22-10
GAD 47-463 05/03/2022
155
PROJECT-BASED RENTAL ASSISTANCE
on employment outcomes. This proposal would ensure that resident services funding
awarded to public housing properties prior to conversion may continue to operate fully and,
as appropriate, be eligible for renewal at the completion of the grant term.
o Jobs Plus. Allow a property with a Jobs Plus grant that converts under RAD to
continue to enroll participants in the Jobs Plus rent incentive for the duration of
grant's period of performance.
o ROSS. Allow properties with an existing ROSS grant prior to RAD conversion to not
only complete the grant term, but also apply for renewal of the grant.
o CHSP. Allow grantees receiving renewal CHSP grants for elderly properties prior
to conversion to remain eligible for such renewal grants after conversion.
2nd Component - Conversion of Multifamily Housing Properties
RAD for Section 811: Authorize the budget-neutral conversion of Section 811 PRAC
properties under RAD. Much like the Section 202 PRACs, the 30,000 units assisted through
Section 811 PRACs are an aging stock with growing capital needs, but with limited access to
private and public financing. These properties also experience unique challenges as owners
seek alignment with community integration mandates and supportive service program
requirements, which may require distinct authorizing language to make best use of the deep
rental assistance, and which will be recognized in the planned conversion process. These
changes will ultimately improve properties and benefit disabled tenants.
• RAD for SPRAC: Authorize the budget-neutral conversion for properties assisted under
SPRACs under RAD. SPRACs were authorized in 2010 as a preservation solution for
affordable senior properties that were refinancing their pre-1974 Section 202 Direct Loans.
However, with limited funding from Congress and alternative preservation solutions
identified by HUD, the stock is unlikely to grow much beyond the 1,450 units supported by
SPRACs today. The proposed change will consolidate the SPRACs, which, by statute, already
operate very similarly to PBRA, onto the Section 8 platform.
• Avoid Disincentives to Conversion and exclude existing service coordinator and service costs
from the 120 percent of Fair Market Rent (FMR) rent cap for new Section 8 contracts under
RAD: As Section 202 PRAC and, as proposed, SPRAC contracts convert under RAD, they are
subject to Section 8 initial contract rent caps, which restrict initial contract rents to 120
percent of FMR. However, for some properties, this represents a reduction from their current
rent levels. For example, Section 202 PRAC and SPRAC rents include the cost of a service
coordinator and services, which are not accounted for in HUD's calculation of FMRs since
service coordinators and these services are typically not provided in market rate housing. To
avoid disincentives to conversion and to ensure properties can continue providing service
coordination and services following a conversion through RAD, HUD requests authority to
waive the 120 percent of FMR limitation for PRAC and SPRAC contracts converting under
RAD. This proposal would have no cost since affected properties already receive funding
above 120 percent of FMR.
Mark-to-Market (2023 President's Budget;Sec 234)
• Fund rent adjustments for at-risk post-M2M properties and for other PBRA properties with
health and safety deficiencies. This would grant the Secretary authority to provide budget-
based rent increases (BBRls), consistent with program requirements that the property rents
remain at or below comparable market rents, to post-M2M properties that are at risk of
becoming or already are physically or operationally distressed or to other PBRA properties
with health and safety concerns. This budget would allow a BBRI adjustment for those
properties to set rents at or below market, based on a current rent comparability assessment.
22-11
GAD 47-463 05/03/2022
156
PROJECT-BASED RENTAL ASSISTANCE
This funding would stabilize operating budgets of the affected properties and, where needed,
provide for rehabilitation and/or transfer of ownership. This will ensure quality management
of the properties, achieve greater sustainability, and increase the availability of affordable
rental homes by preserving these affordable housing investments for the future and
preventing default on FHA-insured mortgages and Section 8 contracts.
• Extend the Mark-to-Market program through September 30. 2027. The authority to run the
M2M program under Section 579 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) ("MARRA") expires September 30, 2022; and
this provision would extend that authority through September 30, 2027. A property enters
the M2M program when the project's rents have been determined to be above market levels
and must consequently be decreased. Without the M2M program to restructure a project's
debt, there is a risk of default on the FHA-insured Section 8 properties if, because of reduced
Section 8 rents, owners of these properties can no longer pay for property maintenance and
mortgage payments. Further, an extension of the M2M program is needed to continue to
execute post-M2M debt assignment or forgiveness in Qualified Non-Profit preservation
transactions and to ensure authority for asset management of post-M2M debt. Historically,
Congress has extended the M2M program each time it has reached expiration.
Sunset the Section 8 Moderate Rehabilitation and McKinney-Vento Single Room
Occupancy programs
The PBRA account continues to renew approximately 25,000 affordable units through the Mod
Rehab and SRO programs on year-to-year contracts. Through RAD, these properties have a path to
enter long-term Section 8 contracts. Alternatively, an owner may choose to opt out of their contract
and secure tenant protection vouchers to issue to residents. The budget proposes a sunset of the Mod
Rehab and SRO programs in five years to give owners time to develop plans for transition to one of
the two alternative platforms (i.e. PBRA or PBV). This proposal would protect residents, produce and
secure long-term affordable housing opportunities, streamline HUD and PHA administration, and
result in improved properties within HUD's portfolio. (2023 President's Budget, Sec 236)
Resolve Interest Reduction Payments (IRPs) Deficiency
HUD will transfer $1.3 million of previously appropriated amounts in order to liquidate obligations
incurred in 2018 in connection with the provision of IRPs authorized under section 236(a) of the
National Housing Act (12 U.S.C 1715z-l(a)). (2023 President's Budget, Sec 238)
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes through the
authorization process:
Triennial recertification to promote family wealth building: Under current law, a tenant's income
must be verified, and their tenant rent contribution calculated annually, unless they are elderly or
disabled on fixed income, in which case it is every three years. HUD proposes to extend ·every-three-
year recertification to all families.
22-12
GAD 47-463 05/03/2022
157
PROJECT-BASED RENTAL ASSISTANCE
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For activities and assistance for the provision of project-based subsidy contracts under the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) ("the Act'~, not otherwise provided for,
$14,600,000,000, to remain available until expended, shall be available on October 1, 2022 (in
addition to the $400,000,000 previously appropriated under this heading that became available
October 1, 2022), and $400,000,000, to remain available until expended, shall be available on October
1, 2023: Provided, That the amounts made available under this heading shall be available for
expiring or terminating section 8 project-based subsidy contracts (including section 8 moderate
rehabilitation contracts), for amendments to section 8 project-based subsidy contracts (including
section 8 moderate rehabilitation contracts), for contracts entered into pursuant to section 441 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11401), for renewal of section 8 contracts for
units in projects that are subject to approved plans of action under the Emergency Low Income
Housing Preservation Act of 1987 or the Low-Income Housing Preservation and Resident
Homeownership Act of 1990, and for administrative and other expenses associated with project-based
activities and assistance funded under this heading: Provided further, That the amount of any
forgone increases in tenant rent payments due to the implementation of rent incentives as authorized
pursuant to waivers or alternative requirements of the Jobs-Plus initiative as described under the
heading "Self-Sufficiency Programs" shall be factored into housing assistance payments under
project-based subsidy contracts: Provided further, That of the total amounts provided under this
heading, not to exceed $375,000,000 shall be available for performance based contract administrators
or contractors for section 8 project-based assistance, for carrying out 42 U.S.C. 1437([): Provided
further, That the Secretary may also use such amounts in the previous proviso for performance-based
contract administrators or contractors for the administration of: interest reduction payments
pursuant to section 236(a) of the National Housing Act (12 U.S.C. 1715z-l(a)); rent supplement
payments pursuant to section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C.
1701s); section 236(f)(2) rental assistance payments (12 U.S.C. 1715z-1 (D(2)); project rental assistance
contracts for the elderly under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q); project
rental assistance contracts for supportive housing for persons with disabilities under section 811(d)(2)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2)); project assistance
contracts pursuant to section 202(h) of the Housing Act of 1959 (Public Law 86--372; 73 Stat. 667);
and loans under section 202 of the Housing Act of 1959 (Public Law 86--372; 73 Stat. 667): Provided
further, That amounts recaptured under this heading, the heading "Annual Contributions for
Assisted Housing'~ or the heading "Housing Certificate Fund", may be used for renewals of or
amendments to section 8 project-based contracts or for performance-based contract administrators or
contractors, notwithstanding the purposes for which such amounts were appropriated: Provided
further, That, notwithstanding any other provision of law, upon the request of the Secretary, project
funds that are held in residual receipts accounts for any p,oject subject to a section 8 project-based
Housing Assistance Payments contract that authorizes the Department or a housing finance agency to
require that surplus project funds be deposited in an interest-bearing residual receipts account and
that are in excess of an amount to be determined by the Secretary, shall be remitted to the Department
and deposited in this account, to be available until expended: Provided further, That amounts
deposited pursuant to the previous proviso shall be available in addition to the amount otherwise
provided by this heading for uses authorized under this heading: Provided further, That of the total
amount provided under this heading, up to $50,000,000 shall be available to supplement funds
transferred from the heading "Public Housing Fund" to fund contracts for properties converting from
assistance under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) under the
heading "Rental Assistance Demonstration" in the Department of Housing and Urban Development
Appropriations Act, 2012 (title II of division C of Public Law 112-55) to further long-term financial
stability and promote the energy or water efficiency, climate resilience, or preservation of such
22-13
GAD 47-463 05/03/2022
158
PROJECT-BASED RENTAL ASSISTANCE
properties: Provided further, That the amounts under the previous proviso may also be available,
without additional competition, for cooperative agreements with Participating Administrative
Entities that have been previously or newly selected under section 513(b) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) (MAHRAA) to provide direct
support, including carrying out due diligence and underwriting functions for owners and for technical
assistance activities, on conditions established by the Secretary for small properties and owners
entering into any conversion contract under the First Component: Provided further, That of the total
amount provided under this heading, up to $10,000,000 shall be available to supplement funds
transferred from the heading "Housing for the Elderly" to fund contracts for properties converting
from assistance under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2)) under the
heading "Rental Assistance Demonstration" in the Department of Housing and Urban Development
Appropriations Act, 2012 (title II of division C of Public Law 112-55) to further long-term financial
stability and promote the energy or water efficiency, climate resilience, or preservation of such
properties: Provided further, That the amounts under the previous proviso may also be available,
without additional competition, for cooperative agreements with Participating Administrative
Entities that have been previously or newly selected under section 513(b) of MAHRAA to provide direct
support, including carrying out due diligence and underwriting functions for owners and for technical
assistance activities, on conditions established by the Secretary for small properties and owners
entering into any conversion contract under the Second Component: Provided further, That of the
total amounts provided under this heading, not to exceed $275,000,000 shall be available for rent
adjustments as added by section 234 of this Act, of which no less than $25,000,000 of such amounts
shall be available for adjustments added by section 234(b) necessary to address health and safety
deficiencies: Provided further, That up to 2 percent of the total amount made available in the previous
proviso shall be for administrative contract costs, including for carrying out due diligence and
underwriting functions for evaluating owners' requests and for technical assistance activities:
Provided further, That of the total amounts provided under this heading, not to exceed $31,000,000
shall be available for budget-based adjustments for service coordinators for the elderly: Provided
further, That any additional amounts for rent adjustments or supplemental contract funding
authorized under the seven previous provisos shall be combined with other amounts obligated to such
contracts and the combined total amount shall be available for all purposes under such contracts.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
22-14
GAD 47-463 05/03/2022
159
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
Green and Resilient Retrofit
SUMMARY OF RESOURCES
(Dollars in Thousands)
2022 Annualized CR
2023 President's Budget 250,000 250,000 245,000 112,000
Change from 2022 250,000 250,000 245,000 112,000
al 2023 Total Resources include $5 million that will be transferred to the Information Technology (IT) Fund,
PROGRAM PURPOSE
The Green and Resilient Retrofit Program will provide funding to the owners of multifamily-assisted
properties to rehabilitate these properties to be more energy and water efficient, healthier, and more
resilient to natural hazard events. With the increasing prevalence of natural disasters, it is critical
for HUD to strengthen the HUD-assisted multifamily portfolio so that it is better prepared to protect
tenants, reduce property damage, and mitigate the impact of these events on the low• and extremely
low-income residents living in HUD-assisted housing. In addition, the program will yield additional
savings by reducing energy and water consumption within HUD's assisted portfolio through both
grant and loan program assistance, as well as through utility benchmarking of assisted properties.
BUDGET OVERVIEW
The 2023 President's Budget requests $250 million for the Green and Resilient Retrofit program,
which is $250 million more than the 2022 annualized CR level. This includes:
• $207.5 million, for grants and direct loan subsidy which will provide for green retrofits and
climate resilience improvements for approximately 5,000 to 10,000 units at assisted
multifamily properties nationwide.
• $31.5 million for utility benchmarking data collection and systems, including up to $5 million
for IT investments. This will improve future investments in green retrofits.
• $11 million for administrative contract costs.
JUSTIFICATION
As part of the Administration's whole-of-government approach to the climate crisis, HUD's Budget
includes $1.065 billion in targeted investments across programs to assist communities to reduce
carbon pollution, increase resilience to the impact of climate change, and deliver environmental
justice. The National Climate Assessment has shown that climate change disproportionately impacts
low-income communities, the very communities served by HUD programs. HUD's Budget addresses
climate change on two fronts: both in lowering the carbon footprint of the 4.5 million units of public
and assisted housing (mitigation), and at the same time helping the communities served by HUD
programs to better withstand and increase their resilience to future disasters (adaptation). These
23-1
GAD 47-463 05/03/2022
160
GREEN AND RESILIENT RETROFIT
investments are crucial to assist communities throughout the country to mitigate and prepare for the
worst effects of climate change.
Please see the "Climate Initiative" justification for more details.
Green and Climate Resilient Retrofits - $207,5 million
The Green and Resilient Retrofit Program (GRRP) builds upon the American Recovery and
Reinvestment Act of 2009 (ARRA) Green Retrofit Program (GRP), which successfully rehabilitated
nearly 20,000 units in over 200 properties (HUD-assisted proprrties under Section 202, Section 811,
and Section 8 Project-Based Rental Assistance). While ARRA's GRP focused exclusively on greening
and efficiency improvements to these properties, GRRP grants and loans will also fund retrofits that
increase properties' resilience to natural hazard events and retrofits that utilize new, innovative
greening strategies. Considering the program's expanded purpose, GRRP is expected to invest in
deep energy and resilience retrofits, having a significant impact at a smaller cohort of properties.
The Budget provides a combination of direct loan subsidy and grants to support improvement
projects for approximately 5,000 to 10,000 affordable housing units at assisted properties
nationwide. Considering that this program will be the first HUD-administered program to examine
resiliency needs in multifamily housing, the number of units to be assisted through the program will
depend on the extent to which selected properties require a significant level of improvements.
Properties receiving assistance under Section 8 Project Based Rental Assistance (PBRA), Section
202, and Section 811 programs are eligible for participation, as well as properties converting to
Section 8 PBRA through the Rental Assistance Demonstration (RAD). This funding will support an
estimated $67.5 million in direct loan subsidy as well as an estimated $140 million in grants.
As with ARRA's GRP, HUD expects these GRRP investments to be leveraged with private financing
to increase program impact. The investment in green updates at these properties will preserve
affordability while reducing energy and water costs, improving indoor air quality, and supporting
community well-being through capital investment across assisted properties. In addition to
improving and preserving affordable housing for many low- and extremely low-income families, the
program's targeted focus on resilience will help reduce these families' exposure to imminent hazards,
property destruction, power outages, and the need for short or long-term relocation following disaster
events.
Additionally, in the decade since the implementation of the GRP, energy and water efficient products
have become the industry standard. Therefore, this program also provides a renewed opportunity to
leverage public investment to drive innovative strategies for increasing resilience, reducing carbon
emissions, and increasing renewable energy generation in multifamily housing, potentially spurring
owner and industry implementation beyond GRRP.
Utility Benchmarking- $31.5 million
Rising utility costs, aging property infrastructure, and increasingly frequent and intense natural
hazard events all threaten the affordability, financial viability, and habitability of assisted housing.
By retrofitting properties to be more energy and water efficient, healthier, and more resilient, HUD
can ensure the safety, affordability, and availability of housing. HUD does not currently have
complete, actionable data on how assisted properties in the multifamily portfolio perform relative to
industry norms for utility consumption. HUD's ability to target technical assistance, resources, and
programs, to improve the worst performing properties in our portfolios, reward the highest
performers and improvers, and set performance standards and targets, will depend upon having a
reliable baseline of how properties currently perform relative to industry standards. Further, HUD
23-2
GAD 47-463 05/03/2022
161
GREEN AND RESILIENT RETROFIT
can use the utility consumption data collected through benchmarking to better size utility
allowances for HUD-assisted properties.
Of the total $31.5 million for benchmarking activities, $26.5 million will fund contracts with one or
more energy assessment firms to support the development of ongoing utility-consumption reporting
and the establishment of utility baseline data for approximately 480,000 of the approximately
1.4 million multifamily units assisted under Sections 8 (project-based), 202, and 811. This funding
would allow HUD to benchmark about 33 percent of the units in its multifamily assisted portfolio.
This data will inform HUD's efforts to improve the overall energy performance of the multifamily
assisted housing portfolio. Relying on the methodology used for EPA's Portfolio Manager (the
industry standard benchmarking tool), the requested funding will help establish utility
benchmarking nationally. Together with the 17 percent of the portfolio that already collects and
reports this data, this would ensure that at least half of the multifamily assisted portfolio would
have undertaken benchmarking efforts. With this data, HUD will be able to improve policies and
procedures to further optimize the energy and water efficiency of the nation's assisted housing stock.
The remaining $5 million will be used to support upgrades to HUD's information technology (IT)
systems to ensure comprehensive and consistent tracking of utility benchmarking across all
pertinent HUD programs. The multifamily utility benchmarking effort will inform HUD efforts to
reduce utility consumption across the portfolio and to better corroborate mechanisms for
determining utility allowances. Building upon this effort, the IT funds are necessary to develop a
system or compatible systems for seeing year-over-year trends in utility costs and consumption,
verifying utility expenditures, managing utility cost reduction incentives, tallying carbon emissions,
understanding building performance on an aggregate and granular level, identifying physical and
operational improvement needs, tracking progress toward utility consumption goals, and generating
reports with statistics and visualizations ;icross all ofHUD's multifamily programs.
Administrative Costs - $11 million
HUD is requesting administrative costs in order to support this new grant and direct loan program
as well as to develop program infrastructure for this extensive utility benchmarking effort. In
particular, GRRP will require dedicated resources for the creation of a resilience assessment tool for
multifamily housing nationwide. Additionally, this request for administrative costs includes funding
for HUD to enter into cooperative agreements with Participating Administrative Entities (PAEs),
that have been previously or newly selected under section 513(b) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) ("MAHRAA''), to provide direct
support and technical assistance to owners participating in the grant and loan program. These PAEs
will commission capital needs, resilience, and renewable energy assessments and environmental
reviews on behalf of owners. ·
23-3
GAD 47-463 05/03/2022
162
GREEN AND RESILIENT RETROFIT
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Dlrect loans 67,500
UTIiity Consumpion
Benchmarking 26,500
Demons\mion
Program
Adminslrative Costs 11,000
IT Fund 5,000
Total 250,000
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
None.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriations language listed below.
For a demonstration program to improve the energy or water efficiency or climate resilience of
multifamily properties modeled after the Green Retrofit Program for Multifamily Housing,
$250,000,000, to remain available until September 30, 2026: Provided, That such demonstration
program amounts shall be for grants or for the cost of direct loans to properties receiving project-based
assistance pursuant to section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), section 811 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), section 811 of the American
Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note), section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) (excluding section 8(0)(13) of such Act), or
properties converting to a project-based subsidy contract under section 8 of the United States Housing
Act of 1937 (excluding section 8(0)(13) of such Act) through the Rental Assistance Demonstration:
Provided further, That the costs of such loans, including the cost of modifying such loans, shall be as
defined in section 502 of the Congressional Budget Act of 1974: Provided further, That the Secretary
may subsidize gross obligations for the principal amount of direct loans not to exceed $400,000,000, to
remain available until September 30, 2026: Provided further, That up to $31,500,000 of the amount
made available under this heading shall be for data collection and utility consumption benchmarking
of properties eligible for grants or direct loans under this demonstration program, of which
$5,000,000 may be transferred to and merged with amounts made available under the heading
"Information Technology Fund" for information technology systems and tools necessary for the
collection and analysis of such utility benchmarking data: Provided further, That up to $11,000,000
of the amount made available under this heading shall be for administrative contract costs for the
demonstration program and benchmarking, including for carrying out property and energy or water
assessment, due diligence, and underwriting functions for such demonstration program: Provided
further, That such amounts may also be available, without additional competition, for cooperative
agreements with Participating Administrative Entities that have been previously or newly selected
under section 513(b) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) ("MAHRAA'? to provide direct support and technical assistance for owners on
23-4
GAD 47-463 05/03/2022
163
GREEN AND RESILIENT RETROFIT
conditions established by the Secretary for any grant or loan authorized under this heading: Provided
further, That grants or loans authorized under this heading may be provided through the policies,
procedures, contracts, and transactional infrastructure of the authorized programs administered by
the Office of Multifamily Housing Programs, Office of Housing, of the Department of Housing and
Urban Development: Provided further, That the Secretary may waive or specify alternative
requirements for any provision of any statute or regulation that the Secretary administers in
connection with the use of the amounts made available under this heading for the demonstration
(except for requirements related to fair housing, nondiscrimination, labor standards, and the
environment), upon a finding by the Secretary that such waivers or alternative requirements are
necessary to expedite or facilitate the use of such amounts.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
23-5
GAD 47-463 05/03/2022
164
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
Housing for the Elderly (Section 202)
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropliation 855,000 339,442 1,194,442 965,876 783,034
2022 Annualized CR 855,000 207,477 1,062,477 994,100 858,000
2023 President's Budget 966,000 50,377 1,016,377 991,000 1,048,000
Change from 2022 111,000 (157,100) (46,100) (3,100) 190,000
al 2021 Carryover amount includes $330 million in carryover, $6 million in recoveries, and $3 million in collections.
b/ 2022 Carryover amount includes an estimated $227.4 million in carryover and $1 million in recoveries. It is net $21 million in transfers to PBRA and TBRA for
RAD Conversions.
cl 2023 Carryover amount includes an estimated $68 million in carryover and $1 million in recoveries. It is net$19 million in transfers to PBRA and TBRA for
RAD Conversions.
PROGRAM PURPOSE
The Housing for the Elderly (Section 202) program expands the supply of affordable housing with
supportive services for the elderly through capital advances and Project Rental Assistance Contracts
(PRACs). The Section 202 program supports nonprofit entities in building and operating affordable
housing for very low-income elderly tenants. Housing through the Section 202 program provides
seniors with options that allow them to live independently and in an environment that provides
connection to supportive services such as cleaning, cooking, and transportation.
BUDGET OVERVIEW
The 2023 President's Budget requests $966 million for Housing for the Elderly, which is $111 million
more than the 2022 annualized CR level. This request includes:
• $7 42 million to fund renewals and amendments of Project Rental Assistance Contracts
(PRACs) and Senior Preservation Rental Assistance Contracts (SPRACs).
• $100 million for new Capital Advances to increase the supply of affordable housing for
seniors by approximately 1,100 units.
• $120 million to fund the renewal of approximately 1,600 existing Service Coordinator and
Congregate Housing Services grants plus any new awards that will be determined based on
the results of the 2022 Notice of Funding Opportunity (NOFO).
• $4 million for property inspections and related administrative costs.
In addition, to support HUD's focus on climate resilience, property owners who seek to improve their
properties may be eligible to receive grants or loans under the Green and Resilient Retrofit (GRRP)
program.
This budget level assumes that adverse impacts of the current COVID-19 pandemic will gradually
begin to subside, and an economic recovery will be well underway by the start of 2023.
Housing-related challenges can trigger significant mental health distress. Training and technical
assistance resources available in this account will be used to support HUD's department-wide effort
to reduce the impacts of housing-related challenges on mental and emotional well-being and improve
the experience of the Department's customers. HUD will coordinate validated, evidence-based
24-1
GAD 47-463 05/03/2022
165
HOUSING FOR THE ELDERLY (SECTION 202)
training for front-line housing professionals on the signs and symptoms of emotional distress and
mental health challenges. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
JUSTIFICATION
PRAC/SPRAC Renewals and Amendments - $742 million
The requested funding provides $742 million for Section 202 PRAC/SPRAC renewals and
amendments. The proposed amount will fully fund approximately 117,000 units covered by the
2,800 contracts requiring renewal or amendment through mid-November 2023.
Increases for Section 202 PRAC/SPRAC renewals and amendments are driven mainly by increased
project operating costs and other inflationary factors, and by funding needed to support units under
contracts that are renewing or need amendment funding for the first time. For 2023, HUD estimates
Section 202 program subsidy inflation at approximately 4.4 percent. During 2023, about
2,600 existing PRAC units will renew or require amendment funds for the first time.
The funding for PRAC/SPRAC renewal and amendment assumes that current services renewal
needs will be fully funded in 2022 through regular appropriations. This assumes an offset of
$4 million as approximately 16 Section 202 properties with approximately 625 units convert to
Project Based Rental Assistance (PBRA) or Project Based Vouchers (PBV) through the Rental
Assistance Demonstration (RAD) program.
Service Coordinator/Congregate Housing Services - $120 million
The requested funding renews approximately 1,600 existing Service Coordinator/Congregate
Housing Services grants plus any new grants awarded as part of the 2022 NOFO. These grants
support independent living and guard against premature transitions to nursing home care at
properties that do not have a current service coordinator grant or funds allocated in their operating
budgets for this purpose. Older adults living in HUD-assisted housing are more likely on average to
have multiple chronic conditions than other older adults 1. Service coordination promotes housing
equity by connecting residents to the supportive services that they need to continue living
independently and age in the community.
As the physical repair/replacement needs of aging properties begin to increase, HUD has noticed a
decline in the number of grantees that can offset service coordination costs from other sources,
leading to increases in the size of annual extension requests for established grants.
The Congregate Housing Services Program (CHSP) is a legacy program that now only funds
renewals for 31 remaining grants. CHSP subsidizes the cost of supportive services that are provided
on-site and in participants' homes, which may include, but are not limited to, congregate meals,
housekeeping, personal assistance, transportation, and case management.
Capital Advance Expansion - $100 million
The requested funding would increase the affordable housing supply for vulnerable seniors with
worst-case housing needs. These funds will provide construction funding and operating assistance for
approximately 1,100 new units of Section 202 housing. The Section 202 program is currently the only
Federally funded program that expressly addresses the need for affordable elderly housing. Its
1 U.S. Department of Health and Human Services (2014). Picture of Housing and Health: Medicare and
Medicaid Use Among Older Adults in HUD-Assisted Housing. Available at:
https://aspe.hhs.gov/sitBs/default/files/migrated legacy files//44236/HUDpic.pdf
24-2
GAD 47-463 05/03/2022
166
HOUSING FOR THE ELDERLY (SECTION 202)
impact is amplified through the leverage of other housing resources such as Low-Income Housing
Tax Credits (LIHTC).
The average annual household income for Section 202 PRAC tenants is approximately $14,000. HUD
is only able to provide assisted housing to one in three seniors who qualify. The demand for such
programs is likely to increase as the Baby Boom generation continues to age into retirement. In
addition to demand outpacing investments in elderly housing, the number of older Americans with
worst-case housing needs is increasing. HUD's Worst Case Housing Needs: 2021 Report to Congress
found that 2.24 million households headed by an elderly person had worst-case housing needs. 2 The
proportion of elderly, very low-income renters with worst-case needs was 40.3 percent in 2019. Low-
income elderly households that rely on fixed incomes may be less likely than households with wage
income to benefit from positive economic trends, but elderly households are affected by rising market
rents, nonetheless. The Section 202 program helps to reduce the number of vulnerable seniors
experiencing worst-case housing needs or homelessness. With the assistance of service coordinators,
many of these residents can access community-based services that are designed to help them stay
longer in their housing, age in the community, and avoid more expensive institutional settings.
As Section 202 properties age, these properties create an upward pressure on this account because of
the reliance on funding through the rental assistance contract to make repairs and replacements. As
HUD reviews the potential increases to subsidy levels, energy efficient, and cost-effective
improvements to the properties are typically required to decrease their carbon footprint and
operating costs.
Capital Advance Amendments and Other Expenses - $4 million
The requested funding provides $4 million for inspections and other administrative costs, including
funding needed to address the backlog and increasing cost ofREAC inspections delayed due to the
COVID-19 National Emergency.
HUD's 2023 Budget also includes funds for the Real Estate Assessment Center's (REAC) efforts to
eliminate the backlog of overdue physical inspections accrued largely during the COVID-19
pandemic, consistent with HUD Strategic Objective 2B - Improve Rental Assistance. The funds
requested will enable REAC to eliminate the Multifamily Housing inspection backlog and maintain
on-schedule inspections and re-inspections consistent with Multifamily program regulations through
the end of fiscal year 2023. Funds requested also support inspections-related contracts that facilitate
analysis of inspection data, performance reporting, and the improvement of HUD's inspection
program through the National Standards for the Physical Inspection of Real Estate (NSPIRE)
contract. Please see the Public Housing Fund justification for more details.
2 https://www. hud user .gov/portal/p ublica tions/W orst-Case-Housing-Needs-2021.html.
24-3
GAD 47-463 05/03/2022
167
HOUSING FOR THE ELDERLY (SECTION 202)
1\0"1! n:llillY ho11S\,llol<I$ amt Whataretho
peopla.ara sel'.Ved? charaa.eri~csol the
This program serves a relatively demographicaUy diverse heads ot househ<lld?
p0pulation. 51% of reskients are in a minodtv group. Female headed
13,1, thou~d.people
fammes. with: children
Asian/ Black, non-
U:3 thousand households White Unknown
P.1. Hispanic Elderly
119' l 12%
Non-elderly disabled
l!(~t is the shere of re11t
paid by the tenant and
'""~°''"'
25to50Years t·'.
, t'\,
HISO?
Average household
51 to GO Vea~ < ~'
contribution
62YearsorM-Ofe .llllllillllllllllllil!llllllllllillll--llllllllilllllillllllllll
$324
85Veat"'florMor-e Average HUD contribution
$412
lklw do h01As11ho!d lm:om;>S compare to the local area
-111a1i1nc:o-?
Tenants make an average gross income of $14,249. Extremely low income (less than 30% AMI)
!l!i% of households eam $20,000 or l;,,ss per year Very low income (30% to SO% AMI)
Low Income (50% to 80% AMI)
percent11• totak. not ttqu,a;I to 100 due to rounding,.
: HUD PIC aod TAACS extract.
24-4
GAD 47-463 05/03/2022
168
HOUSING FOR THE ELDERLY (SECTION 202)
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
2021 2020 2021 2023
2021 Tolal 2021 2022 2022 Tola!
Budget Activity Budget Carryoverlnlo Carryoverlnlo President's
Resources Obligations Annualized CR Resources
Authortty 2021 2022 Budget
Capital Advance (Expansion) 35,000 152,097 187,097 136,713 35,000 50,384 85,384 100,000
Capital Advance Amendments and Olher
Expenses 3,000 9,027 12,027 9,439 3,000 2,264 5,264 4,000
Eldeny PRACISPRAC
Renewals/Amendmenls 673,000 108,466 781.466 692,164 673,000 90,302 763,302 742,000
Se,vice Coordinators/Congregate
Services 125,000 17.459 142,459 97,912 125,000 43,782 168,782 120,000
Sernor Preservation Rental Assistance
Contracts (Expansion) 1.500 1.500 1,500 1,500
Aging in Place Home Modificalion Grants 20,000 20,000 20,000
Eldeny PRAC/SPRAC
Renewals/Amendmenls (CARES AcQ 20,893 20,893 5,287 15,606 15,606
Se,vice Coordinalors/Congregate
Se,vices (CARES Act) 10,000 10,000 4,361 5,639 5,639
Intergenerational □..!ling Units 5,000 5,000 5,000 5,000 10,000
Supportive Seivices/lWISH
Demonstralion 14,000 14,000 14,000 14,000 28,000
Renlal Assislance
Demonstration (RAD) (21,000) (21,000)
Total 855,000 339,442 1,194,442 965,876 855,000 207,477 1,062,477 966,000
al 2021 Budget Authority reffects reallocation between Capital Advance and PRAC Renewals as reflected in the 2021 Operating Plan.
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
Renewal of Section 811 PRAC and 202 PAC Contracts for Terms of Up to Five Years: This proposal
would allow HUD to renew expiring Section 811 PRACs and Section 202 PACs for up to five-year
terms. This mirrors a provision enacted in 2021 that allows 5-year terms for Section 202 PRAC
renewals.
Authorize use of Section 8 Contracts for Properties Developed Through Capital Advance Funds:
Under current law, HUD is authorized to award Section 202 capital advance awards and to enter
into project rental assistance contracts (PRACs). This proposal would allow HUD to enter into
Section 8 PBRA Housing Assistance Payments (HAP) contracts in lieu of PRACs.
General Provisions
The 2023 President's Budget re-proposes the following general provisions that were enacted in the
2021 appropriations bill:
Transfers of Assistance. Debt. and Use Restrictions: This provision allows the Secretary to authorize
the transfer of some or all project-based assistance, debt held or insured by the Secretary, and
statutorily required low-income and very low-income use restrictions if any. associated with one or
more obsolete multifamily housing project(s) to a viable multifamily housing project. (2023
President's Budget Sec. 206)
24-5
GAD 47-463 05/03/2022
169
HOUSING FOR THE ELDERLY (SECTION 202)
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes through the
authorization process:
Authorize use of Section 8 Contracts for Properties Developed Through Capital Advance Funds:
Under current law, HUD is authorized to award Section 202 capital advance awards and to enter
into project rental assistance contracts (PRACs). This proposal would allow HUD to enter into
Section 8 Housing Assistance Payments (HAP) contracts in lieu of PRACs.
Modification to Rent Increase procedures for Section 202 and 811 Capital Advance projects:
Currently, contract rents for properties with Section 202 and Section 811 project rental assistance
contracts (PRACs) are set through annual budget-based rent increases. This proposal would allow for
the use of an operating cost adjustment factor (OCAF) for annual contract adjustments, with budget•
based rent increases every 5 years. This would streamline the rent adjustment process for Section
202 and Section 811 PRACs and reduce administrative burden on property owners and HUD
program staff. The use of annual OCAF would eliminate the need for over 4,000 budget reviews of
properties in the PRAC portfolio annually, saving an estimated 25,000 staff hours by allowing
sponsors of these properties to use interim O CAF adjustments rather than preparing annual budget
submissions, and an estimated 20,000 staff hours for HUD in reviewing and responding to these
submissions. These scarce staffing resources could be better used running properties and supporting
residents, and on the HUD side could be dedicated to other portfolio management tasks, including
property oversight.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
HOUSING FOR THE ELDERLY
(INCLUDING TRANSFER OF FUNDS)
For capital advances, including amendments to capital advance contracts, for housing for the elderly,
as authorized by section 202 of the Housing Act of 1959 (12 U.S.C. 170lq), for project rental
assistance for the elderly under section 202(c)(2) of such Act, including amendments to contracts for
such assistance and renewal of expiring contracts for such assistance for up to a 5-year term, for
senior preservation rental assistance contracts, including renewals, as authorized by section 81 l(e) of
the American Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note), and for
supportive services associated with the housing, $966,000,000, to remain available until September
30, 2026: Provided, That of the amount made available under this heading, up to $120,000,000 shall
be for service coordinators and the continuation of existing congregate service grants for residents of
assisted housing projects: Provided further, That the Secretary may enter into new project-based
subsidy contracts, which shall be renewable under section 524 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997, using the resources made available under the heading "Project-
Based Rental Assistance" to support projects awarded new capital advance awards: Provided further,
That, from amounts made available under this heading for project rental assistance contracts, the
Secretary shall transfer to and merge with amounts available under the heading "Project-Based
Rental Assistance" an amount equal to the total cost of the new incremental project-based subsidy
contracts executed under the authority of the previous proviso: Provided further, That amounts made
available under this heading shall be available for Real Estate Assessment Center inspections and
inspection-related activities associated with section 202 projects: Provided further, That the Secretary
may waive the provisions of section 202 governing the terms and conditions of project rental
assistance, except that the initial contract term for such assistance shall not exceed 5 years in
duration: Provided further, That upon request of the Secretary, project funds that are held in residual
receipts accounts for any project subject to a section 202 project rental assistance contract, and that
24-6
GAD 47-463 05/03/2022
170
HOUSING FOR THE ELDERLY (SECTION 202)
upon termination of such contract are in excess of an amount to be determined by the Secretary, shall
be remitted to the Department and deposited in this account, to remain available until September 30,
2026: Provided further, That amounts deposited in this account pursuant to the previous proviso shall
be available, in addition to the amounts otherwise provided by this heading, for the purposes
authorized under this heading: Provided further, That unobligated balances, including recaptures
and carryover, remaining from funds transferred to or appropriated under this heading shall be
available for the current purposes authorized under this heading in addition to the purposes for
which such funds originally were appropriated.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
24-7
GAD 47-463 05/03/2022
171
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
Housing for Persons with Disabilities (Section 811)
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 227,000 237,016 464,016 315,763 210,997
2022 Annualized CR 227,000 152,253 379,253 341,000 295,000
2023 President's Budget 287,700 39,253 326,953 310,000 372,000
Change from 2022 60,700 (113,000) (52,300) (31,000) 77,000
a/ 2021 Canyover amount includes $232 million in carryover, $2 million in recoveries, and $3 million in collections,
b/ 2022 Carryover amount includes an estimated $148 million in canyover, $1 million in recoveries, and $3 million in collecUons.
c/ 2023 Carryover amount includes an esUmated $38 million in carryover and $1 million in recoveries.
PROGRAM PURPOSE
The Housing for Persons with Disabilities Program (Section 811) provides project-based rental
assistance to very low- and extremely low-income persons with disabilities to live independently in
integrated housing settings with community-based support and services. The program targets
vulnerable persons with disabilities who need affordable housing to effectively access community-
based support and services, such as case management, housekeeping, and daily living assistance to
successfully live independently in the community. Section 811 provides project-based rental
assistance that covers the difference between HUD-approved operating costs of the project and the
tenants' contributions toward rent, as well as direct funding for construction through Capital
Advances.
BUDGET OVERVIEW
The 2023 President's Budget requests $287.7 million for the Section 811 program, which is
$60. 7 million more than the 2022 Annualized CR level. This includes:
• $205 million for Project Rental Assistance Contracts (PRAC), Project Assistance Contracts
(PAC), and State Project Rental Assistance (State PRA) renewals and amendments.
• $80 million for Capital Advance and Project Rental Assistance to increase the supply of
affordable, community-based housing for persons with disabilities.
• $2. 7 million for inspections and related administrative costs.
In addition, to support HUD's focus on climate, property owners who seek to improve their properties
may be eligible to receive grants or loans under the proposed Green and Resilient Retrofit program.
This Budget level assumes that adverse impacts of the current COVID-19 pandemic will gradually
begin to subside, and an economic recovery will be well underway by the start of 2023.
Housing-related challenges can trigger significant mental health distress. Training and technical
assistance resources available in this account will be used to support HUD's department-wide effort
to reduce the impacts of housing-related challenges on mental and emotional well-being and improve
the experience of the Department's customers. HUD will coordinate validated, evidence-based
training for front-line housing professionals on the signs and symptoms of emotional distress and
mental health challenges. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
25-1
GAD 47-463 05/03/2022
172
HOUSING FOR PERSONS WITH DISABILITIES (SECTION 811)
JUSTIFICATION
PRAC/PAC/State PRA Renewals and Amendments - $205 million
The 2023 Budget provides $205 million for PRAC, Project Assistance Contract (PAC), and State PRA
renewals and amendments to support affordable rental homes for very low-income persons with
disabilities. The requested amount will fully fund the approximately 31,600 units, under the
2,760 contracts requiring renewal or amendment from January through December 2023.
Increases in gross needs for Section 811 PRAC/PAC/PRA renewals and amendments are driven
mainly by increased project operating costs and other inflationary factors, and by funding needed to
support units under contracts that are renewing or need amendment funding for the first time. For
2023, HUD estimates Section 811 program subsidy inflation at approximately four percent. During
2023, about 850 existing PRAC units will renew or require amendment funds for the first time.
The funding for PRAC/PAC/PRA renewal and amendment amounts assumes that current
services renewal needs will be fully funded in 2022 through regular appropriations.
This funding promotes health equity through the integration of healthcare and housing and will
advance policies that recognize housing's role as essential to the residents' health and well-being.
The Section 811 program provides the funding to connect housing and supportive services for
persons with disabilities to live independently in an integrated community-based housing setting.
Providing deeply affordable housing promotes the economic stability of persons with disabilities by
giving them the opportunity to use their financial resources that otherwise would have gone
towards market rent for other purposes, such as education, nutrition, healthcare, transportation,
and savings.
Section 811 PRA promotes vital collaboration between stakeholders to promote connections between
housing and services for persons with disabilities. Section 811 PRA requires cooperation between
State Housing Finance Agencies (HFAs) and State Medicaid Agencies to build institutional capacity
in participating States so States can provide integrated housing in communities.
Capital Advance and State Project Rental Assistance - $80 million
The requested funding will support approximately 900 new Section 811 units to expand the supply of
affordable housing for very low- and extremely low-income persons with disabilities to live
independently in the community with connections to critical supportive services, as an alternative to
costly institutional care. The awards will provide construction funding through Capital Advances
with operating assistance to not-for-profit owners and new Project Rental Assistance (PRA) awards
to State HFAs, as well as other eligible entities.
The Section 811 Program addresses the unmet housing needs of very low- and extremely low-income
renters with disabilities who may experience severe housing problems. HUD's Worst Case Housing
Needs: 2021 Report to Congress showed that 1.045 million renter households with worst case needs
included one or more non-elderly people with disabilities.I People with disabilities often require
accessible housing in addition to supportive services to live independently and avoid
institutionalization. Finding housing that accommodates these needs is very challenging.
1 HUD (2021). Worst Case Housing Needs: 2021 Report to Congress. Available at:
https://www.huduser.gov/portal/publicationslWorst-Case-Housing-Needs-2021.html
25-2
GAD 47-463 05/03/2022
173
HOUSING FOR PERSONS WITH DISABILITIES (SECTION Bll)
Capital Advance Amendments and Other Expenses - $2. 7 million
The Budget provides up to $2. 7 million for physical inspections and related costs, including funding
needed to address the backlog and increasing cost ofREAC inspections delayed due to the COVID-19
National Emergency.
HUD's 2023 Budget request also includes funds for the Real Estate Assessment Center's (REAC)
efforts to eliminate the backlog of overdue physical inspections accrued largely during the COYID-19
pandemic, consistent with HUD Strategic Objective 2B - Improve Rental Assistance. The funds
requested will enable REAC to eliminate the Multifamily Housing inspection backlog and maintain
on-schedule inspections and re-inspections consistent with Multifamily program regulations through
the end of 2023. Funds requested also support inspections-related contracts that facilitate analysis of
inspection data, performance reporting, and the improvement of HUD's inspection program through
the National Standards for the Physical Inspection of Real Estate (NSPIRE) contract. Please see the
Public Housing Fund justification for more details.
Owners of Section 811 properties may be able to receive a grant or loan to improve the climate
resilience and energy efficiency of the units through HUD's new Green and Resilient Retrofit
program.
____ ,_, __________ Q4 2021 Section 811 Tenant Characteristics
, .. -·--....-____
""" "·--· - -·· , ..
How many households and What are the racial characteristics of the tenants? What are the
people are served? characteristics of the
This program serves a somewhat diverse popu!atlon. 38% of heads of household?
residents are in a minority group. Female headed
36 thousand people 3%
families with children
33 thousand households Elderly !
Z6%
Non-elderly disabled 73% i
i
How big are the households? How old are the heads of household? Whal is the share ol rent
paid by the tenant and
2Sto50Years ~ '
HUD?
"'""°'""
SitoiSOYears j,,Rllllllllllll...,llllillllllll_llllll_ _ Average household
52Ye,<1rsorMore !IRllllllllllilllllll_ _ __ contribution
$286 l
85YeanorMorn c: Average HUD contribution ij
$517
i
How do household Incomes compare to the local area i1
What are the income levels ol assisted households? median Income?
Tenants make an average gross income of $12,007. Extremely low income {less than 30% AMI) 86%
92% of households earn $20,000 or less per year Very low income (30% to 50% AMI) 13%
i
,__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .., ...L.o_w__
ln_co_n_1e~(5_0_%_to_80_%_A_M_l,)_ _ _ _ _ _ _ _1%
__ ~',1
Some percentage totals not equal to 100 due to rounding,
Source: HUD PlC and TRACS databases, December 2021 extract.
25-3
GAD 47-463 05/03/2022
174
HOUSING FOR PERSONS WITH DISABILITIES (SECTION 811)
The Genworth 2021 Cost of Care Survey estimates the national average cost of a semi-private room
in a nursing home is $94,896 per year.2 Evaluations of the Department of Health and Human
Services (HHS) Money Follows the Person (MFP) program have found that lack of available
affordable housing is a major barrier to transitioning persons with disabilities to independent
living.a The two most commonly reported challenges in a 2016 report were a dearth of affordable and
accessible housing and an insufficient supply of rental vouchers. Under the Americans with
Disabilities Act and the Supreme Court's Olmstead decision, States are legally obligated to favor
community-based and integrated settings over institutional settings for persons with disabilities.
State Medicaid Agencies are making efforts to comply with this mandate through Medicaid home
and community-based "waiver" programs administered by the HHS Centers for Medicare and
Medicaid Services. They find limited success in achieving this mandate, despite effective Medicaid
waiver programs, because the target population cannot afford the cost of market rent in their
community. Smart investments in Section 811 supportive housing align with, and complement, State
efforts to provide home and community-based services for persons with disabilities in independent
housing settings, minimizing the need to institutionalize this population.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Capital Advance
Amendmenn, and PRA
(Expansion) 54,000 164,198 218,198 124,186 54,000 94,012 148,012 80,000
Capital Advance
Amendments and
Olher Ex pens es 2,000 14,072 16,072 7,008 2,000 9,064 11,064 2,700
Disabled PRAG/PAC
Renew allAmendment 171,000 48,916 219,916 183,598 171,000 40,318 211,318 205,000
Disabled PRAG/PAC
Renew al/Amendment
(CARES Act) 9,830 9,830 971 8,859 8,859
Total 227,000 237,016 464,016 315,763 227,000 152,253 379,253 287,700
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
Renewal of Section 811 PRAC and 202 PAC Contracts for Terms of Up to Five Years. This proposal
would allow HUD to renew expiring Section 811 PRACs and Section 202 PACs for up to five-year
2 Genworth (2021). Genworth Cost of Care Survey 2021. Available at: https://www.genworth.com/aging-and-
you/finances/cost-of-care,html
3 Coghlin, R., Ward, J., Denny-Brown, N., Hagen, B., Maurer, K., Morris, E., Smoot, J., Steiner, A., Perez, B.
(2017). Money Fo/l,ows the Person Demonstration: Overview of State Grantee Progress, January to December
2016. Cambridge MA: Mathematica Policy Research.
25-4
GAD 47-463 05/03/2022
175
HOUSING FOR PERSONS WITH DISABILITIES (SECTION 811)
terms. This mirrors a provision enacted in 2021 that allows 5-year terms for Section 202 PRAC
renewals.
General Provisions
The 2023 President's Budget proposes the following new general provisions:
RAD for Section 811. (See PERA Account) Authorize the budget-neutral conversion of Section 811
PRAC properties under RAD. Much like the Section 202 PRACs, the 30,000 units assisted through
Section 811 PRACs are an aging stock with growing capital needs, but with limited access to private
and public financing. These properties also experience unique challenges as owners seek alignment
with community integration mandates and supportive service program requirements, which may
require distinct authorizing language to make best use of the deep rental assistance, and which will
be recognized in the planned conversion process. These changes will ultimately improve properties
and benefit tenants with disabilities. (2023 President's Budget, Sec. 232)
The 2023 President's Budget re-proposes the following general provisions that were enacted in the
2021 appropriations bill:
Transfers of Assistance, Debt, and Use Restrictions. This provision allows the Secretacy to authorize
the transfer of some or all project-based assistance, debt held or insured by the Secretacy, and
statutorily required low-income and vecy low-income use restrictions if any, associated with one or
more obsolete multifamily housing project(s) to a viable multifamily housing project. (2023
President's Budget, Sec. 206)
25-5
GAD 47-463 05/03/2022
176
HOUSING FOR PERSONS WITH DISABILITIES (SECTION 811)
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes through the
authorization process:
Modification to Rent Increase procedures for Section 202 and 811 PRAC projects. Currently, contract
rents for properties with Section 202 and Section 811 project rental assistance contracts (PRACs) are
set through annual budget-based rent increases. This proposal would allow for the use of an
operating cost adjustment factor (OCAF) for annual contract adjustments, with budget-based rent
increases every 5 years. This would streamline the rent adjustment process for Section 202 and
Section 811 PRACs and reduce administrative burden on property owners and HUD program staff.
The use of annual OCAF would eliminate the need for over 4,000 budget reviews of properties in the
PRAC portfolio annually, saving an estimated 25,000 staff hours by allowing sponsors of these
properties to use interim OCAF adjustments rather than preparing annual budget submissions, and
an estimated 20,000 staff hours for HUD in reviewing and responding to these submissions. These
scarce staffing resources could be better used running properties and supporting residents, and on
the HUD side could be dedicated to other portfolio management tasks, including property oversight.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For capital advances, including amendments to capital advance contracts, for supportive housing for
persons with disabilities, as authorized by section 811 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013), for project rental assistance for supportive housing for persons with
disabilities under section 811(d)(2) of such Act, for project assistance contracts pursuant to subsection
(h) of section 202 of the Housing Act of 1959, as added by section 205(a) of the Housing and
Community Development Amendments of 1978 (Public Law 95-557: 92 Stat. 2090), including-
amendments to contracts for such assistance and renewal of expiring contracts for such assistance for
up to a 5-year term, for project rental assistance to State housing finance agencies and other
appropriate entities as authorized under section 811(b)(3) of the Cranston-Gonzalez National
Affordable Housing Act, and for supportive services associated with the housing for persons with
disabilities as authorized by section 81l(b)(l) of such Act, $287,700,000, to remain available until
September 30, 2026: Provided, That amounts made available under this heading shall be available
for Real Estate Assessment Center inspections and inspection-related activities associated with section
811 projects: Provided further, That, upon the request of the Secretary, project funds that are held in
residual receipts accounts for any project subject to a section 811 project rental assistance contract,
and that upon termination of such contract are in excess of an amount to be determined by the
Secretary, shall be remitted to the Department and deposited in this account, to remain available
until September 30, 2026: Provided further, That amounts deposited in this account pursuant to the
previous proviso shall be available in addition to the amounts otherwise provided by this heading for
the purposes authorized under this heading: Provided further, That unobligated balances, including
recaptures and carryover, remaining from funds transferred to or appropriated under this heading
shall be used for the current purposes authorized under this heading in addition to the purposes for
which such funds originally were appropriated.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
25-6
GAD 47-463 05/03/2022
177
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
Housing Counseling Assistance
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriauon 77,500 3,096 80,596 3,928 45,078
2022 Annualized CR 77,500 76,822 154,322 133,000 53,000
2023 President's Budget 65,900 21,322 87,222 66,000 101,000
Change from 2022 (11,600) (55,500) (67,100) (67,000) 48,000
PROGRAM PURPOSE
The mission ofHUD's Office of Housing Counseling is to provide individuals and families with the
knowledge they need to obtain, sustain, and improve their housing stability and financial health.
This mission is accomplished by supporting a strong national network of HUD-approved housing
counseling agencies and counselors. The mission also includes supporting the Administration's goals
of increasing racial equity in homeownership, recovering from COVID-19, building generational
equity and wealth through responsible and sustainable homeownership, supporting eviction
prevention efforts, supporting senior citizens, and assisting consumers impacted by national
emergencies or disasters.
BUDGET OVERVIEW
The 2023 President Budget's requests $65.9 million for the Office of Housing Counseling (OHC),
which is $11.6 million less than the 2022 annualized CR level. This funding level will support
families and consumers, seniors, disaster impacted families, delinquent homeowners and renters.
Funding at this level will allow approximately 4,000 HUD-certified Housing Counselors, including
367 Home Equity Conversion Mortgage (HECM) certified Housing Counselors to assist consumers
with professional, quality education, advice, and support to make informed decisions.I Assistance
provided by HUD-certified counselors-who are trained in homeownership, loss mitigation, disaster
preparedness and disaster loss mitigation, homebuying, rental eviction prevention and homelessness
prevention, scam and fraud avoidance,. and credit counseling-assures that each homeowner,
resident, or consumer seeking help optimizes their housing situation and financial success,
The requested level of funding will permit HUD, through its network of approximately 1,600 housing
counseling agencies, to support over 1 million consumers at a cost of approximately $251.59 per
1 HUD administers two separate exams: one for individuals seeking certification as a general Housing
Counselor, and one for individuals seeking certification as a HECM-speci.fic Housing Counselor.
26-1
GAD 47-463 05/03/2022
178
HOUSING COUNSELING ASSISTANCE
client, based on analysis of agency 2021 reported data. 2, 3, 4 Analysis indicates that because of
COVID-19, agencies continue to adjust their business operations to offer more telephonic and
internet counseling services. Many of the clients are traditionally from rural and historically
underserved communities that have been most adversely impacted by COVID-19. The Budget
includes $3.5 million that will continue to increase the participation of Historically Black Colleges
and Universities (HBCUs) and Minority Serving Institution (MS!s) in HUD's Housing Counseling
program.
Housing-related challenges can trigger significant mental health distress. Training and technical
assistance resources available in this account will be used to support HUD's department-wide effort
to reduce the impacts of housing-related challenges on mental and emotional well-being and improve
the experience of the Department's customers. HUD will coordinate validated, evidence-based
training for front-line housing professionals on the signs and symptoms of emotional distress and
mental health challenges. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
JUSTIFICATION
Housing Counseling Grants-$61.0 million
Grants to Housing Counseling Agencies. Foreclosure Prevention Counseling. Homeownership
Counseling. Fraud/Scam Awareness/Prevention ($50 million): Funding at this level will support
assistance to approximately 1,600 HUD-approved agencies for housing counseling services, as well
as training for counselors. In 2021, 177 agencies received funding directly from HUD, and around
944 affiliate agencies received funding from HUD-approved intermediaries. The Budget is projected
to serve just over 1 million consumers. 5
HUD-approved housing counseling agencies provide quality counseling in the following areas:
homeownership, financial budgeting, Home Equity Conversion Mortgages, transitioning from
homelessness to housing, rental counseling, wire fraud and scam prevention, and fair housing
counseling to renters and home buyers who experience discrimination. The funding allows agencies
to deliver a holistic range of housing counseling and education services appropriate to national and
local market conditions and individual consumer needs. ·
2 This represents a decrease from the number of Housing Counseling agencies present when the 2022
Congressional Justification was submitted (approximately 1,750). After the implementation of the Housing
Counselor Certification requirement, some programs were terminated if they did not have a Housing Counselor
who is HUD-certified (however, agencies who dropped out due to certification issues only reflect 0.063 percent of
annual client sessions, and many other agencies have expanded their counseling capacity OYer the past year). In
addition, some agencies and intermediaries closed branches in order to have a more virtual presence due to the
COVID-19 pandemic.
3 This number includes consumers who will be directly served by HUD funding as well as additional consumers
served by HUD housing counseling agencies from other funding sources. We estimate the combined number of
consumers served because HUD-approved Housing Counseling agencies leverage their HUD funding and
approval status to obtain additional funding.
4 The projection methodology involves analyzing previous years' actual counseled clients charged to the HUD
grants versus the actual grant funds awarded to see how well it would have predicted client volume. The
percentage difference between actual and projected 0lients are calculated, and the variance is applied to the
current fiscal year to project total grant clients served. The current projection methodology uses data from 2019
to present.
5 Projections may fluctuate due to variables that include the cost of providing services and changes in the level
of funding agencies receive from other sources.
26-2
GAD 47-463 05/03/2022
179
HOUSING COUNSELING ASSISTANCE
Grant funding to expand HUD Partnerships with HBCUs and MSis ($3.5 million): HUD
supports agencies that partner with HBCUs and other MSis to help them expand sustainable
housing opportunities and build generational wealth in their communities. This housing counseling
activity facilitates homeownership education for underserved communities of color by bridging the
information gap through local agencies focused on community counseling service delivery.
In 2021, 19 HBCUs/MSis applied for Comprehensive grant funding. Of that number, 16 were eligible
for funding. The 16 who applied requested over $6 million in support. Based on agency interest,
HUD expects an even larger number of applications this fiscal year. HUD plans to use some of the
requested increase in Housing Counseling to expand program participation by these institutions,
which, in turn, are opportunities for closing the racial equity gap and building generational wealth in
these communities.
Expand Services to Historically Underserved Communities with Culturally Sensitive and
Linguistically Appropriate Counseling ($5.0 million): The Budget includes $5 million for expanded
outreach to diverse markets and augmented counseling services to communities including Asian•
Pacific, Latino(s), Black, Native Alaskan, Tribal, and rural communities. This will be a separate
funding program specifically designed to realize HUD's goal of bridging the homeownership gap.
Funds will be distributed via a new fixed-fee grant competition that will also collect augmented data
for all mortgages originated. 6 Based on the $5 million budget amount, HUD expects to fund over
5,000 program sessions that realize homeownership. 7
Compared to OH C's main grant program, this initiative will also use a more in-depth counseling and
coaching methodology to serve hard-to-reach underserved communities. Outreach activities included
in the statement of work will focus in on the needs of Black, Latino(s), Asian-Pacific, and other
diverse markets served by participating housing counseling agencies. Using culturally sensitive and
linguistically appropriate service delivery, materials, and group education, the OHC will implement
capacity building initiatives in conjunction with HUD-approved housing counseling agencies across
the country which will directly improve access to HUD-certified housing counselors. 8
Training Grants for Housing Counseling Continuing Education ($2.5 million): HUD is committed to
assuring consumers receive quality counseling services. This will be achieved through Counselor
training and professional development provided by HUD training grantees. In 2021, HUD's five
training grantees provided 818 virtual training sessions for a total of more than 33,600 housing
counselors attending, aggregately. The Budget would fund approximately 850 virtual trainings in
sustainable, responsible homeownership, building generational wealth and equity, foreclosure/loss
mitigation, scam and fraud detection and avoidance, and disaster preparedness and disaster loss
mitigation.
Administrative Contract Services - Up to $ 4,9 million
The Budget will support outreach and awareness efforts, improved data collection and reporting to
the Office of Management and Budget and other stakeholders and a reduction in administrative
burden on counseling agencies and HUD. In addition, funding will enhance agency oversight, ensure
program compliance, support the Housing Counseling Federal Advisory Committee, fund HECM
tools for housing counselors, increase educational activities, improve online certification
6 With a fixed-fee grant program, counseling agencies receive a set amount of funding for each client served.
Fb<ed-fee funding models are a growing trend in the broader housing counseling industry and many counseling
agencies, including NeighborWorks America, already receive fixed-fee reimbursement from other funders.
7 Assuming a fixed-fee reimbursement rate of $850 for each client that successfully realizes homeownership.
8 Capacity building includes a variety of technical, administrative, and programmatic assistance that
HUD/OHC provides to agencies including financial assistance and training on best practices in the housing
counseling field.
26-3
GAD 47-463 05/03/2022
180
HOUSING COUNSELING ASSISTANCE
examinations, and facilitate the development of study guides. Further, HUD has requested a higher
amount for Administrative Contract Services in part to fund the development of a new impact
methodology that will use more sophisticated data, predictive analysis, and trend forecasting to
better document the value that consumers receive from HUD's Housing Counseling program. This
improved data management will enhance HUD's ability to strategically target the provision of
resources and funding towards areas that can benefit most from the services that OHC provides.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Assistance 53,000 350 53,350 1,887 53,000 53,000 106,000 61,000
Training Grants
Certification Grants
Administrative
Contract Services 4,500 2}46 7,246 2,041 4,500 3,822 8,322 4,900
Legal Assistance
20.000 20,000 20,000 20.000 40,000
Total 77,500 3,0% 80,596 3,928 77,500 76,822 154,322 65,900
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Legislative Proposals
The 2023 Budget supports the following legislative proposal and will seek changes through the
authorization process:
Change the terms of the Housing Counseling Federal Advisory Committee: This proposal would
provide greater flexibility to establish staggered terms for appointees to the Housing Counseling
Federal Advisory Committee to promote continuity as committee member terms expire.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For contracts, grants, and other assistance excluding loans, as authorized under section I 06 of the
Housing and Urban Development Act of 1968, as amended, $65,900,000, to remain available until
September 30, 2024, including up to $4,900,000 for administrative contract services: Provided, That
funds shall be used for providing counseling and advice to tenants and homeowners, both current and
prospective, with respect to property maintenance, financial management or literacy, and such other
matters as may be appropriate to assist them in improving their housing conditions, meeting their
financial needs, and fulfilling the responsibilities of tenancy or homeownership; for program
administration; and for housing counselor training: Provided further, That for purposes of awarding
grants from amounts provided under this heading, the Secretary may enter into multiyear
agreements, as appropriate, subject to the availability of annual appropriations.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
26-4
GAD 47-463 05/03/2022
181
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
Manufactured Housing Fees Trust Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 13,000 7,275 20,275 11,219 10,271
2022 Annualized CR 13,000 9,474 22,474 13,000 12,000
2023 President's Budget 14,000 9,474 23,474 14,000 14,000
Change from 2022 1,000 1,000 1,000 2,000
PROGRAM PURPOSE
Manufactured housing is a key segment of the affordable housing industry, and manufactured homes
provided approximately 9 percent of the Nation's single-family housing starts in 2021. 1 Additionally,
manufactured homes constitute a major source of housing in rural America, where one in seven
homes is a manufactured home. 2 The primary purposes of the Manufactured Home Construction and
Safety Standards Act of 1974 as amended by the Manufactured Housing Improvement Act of 2000 is
"to protect the quality, durability, safety, and affordability of manufactured homes" and, "to facilitate
the availability and affordability of manufactured homes and to increase homeownership for all
Americans" (42 USC Section 5401(b)). Therefore, HUD's Office of Manufactured Housing Programs
(OMHP) is critical for ensuring access to affordable homeownership, increasing the supply of
affordable housing throughout the United States, and coordinating proper compliance with
construction safety standards. The OHMP serves a key role in supporting the Administration's goal
of increasing the supply of affordable and equitable access to affordable housing across the Nation.
BUDGET OVERVIEW
The 2023 President's Budget requests $14 million for OMHP, which is $1 million more than the 2022
annualized CR level. Funding for this program is solely supported from the receipt of HUD's
certification label fee of $100 for each transportable section. In 2021, HUD collected approximately
$16. 7 million in fees. HUD projects an estimated $16 million in fee collections during 2022 and 2023.
The Administration prioritizes manufactured housing as a critical tool in increasing the affordable
housing supply, especially for underserved Americans. HUD is actively participating in the White
House Council on Environmental Quality's Manufactured Housing Task Force and the White House
Housing Supply and Prices lnteragency Policy Committee. Both of these White House-level
initiatives are taking administrative actions to boost supply and support affordability for
manufactured housing.
The requested funds will support the Department's implementation and oversight responsibilities for
the nationwide building regulatory program including updating the construction, safety, and
installation standards of manufactured homes. The request would also provide funding for HUD to
conduct technical support meetings with State partners to increase State engagement and build
1 HUD Policy Development and Research, National Housing Market Survey, 2020 Supply Data
2 Housing Assistance Council, Rural Research Brief, July 2020.
27-1
GAD 47-463 05/03/2022
182
MANUFACTURED HOUSING FEES TRUST FUND
consensus in funding State inspection programs, incentivize State partnerships, increase State
collaboration with OMHP, and fully support Manufactured Housing Consensus Committee (MHCC)
activities that contribute to the rulemaking process.
Payments to States 4,600
Contract for Monitoring Primary Inspection Agencies and States 4,600
Contract for Monitoring Design Approval Agencies 1,600
Contract for Installation Inspection and Enforcement 1,200
Contract for Consumer Information and Dispute Resolution 650
Contract for Consensus Committee Administering Organization and Support Services 425
Contract for Manufactured Housing Programs Mooting Support Services 925
Total 14,000
Note: The table provides estimates by contract type and are not individual programs, projects or activities for reprogramming purposes. Please see "Summary of
Resources by Program" table at the end of the justifica1ion.
JUSTIFICATION
Funding Impact
HUD's construction and safety standards preempt State and local laws and apply to all
manufactured homes produced after June 15, 1976. While manufactured housing serves all
demographics, its continued availability and affordability is especially critical for young families,
individuals with moderate or low incomes, rural households, and elderly households with fixed
incomes. Therefore, manufactured housing is an important component of the Administration's goal of
equitably providing safe, affordable, and durable homes to those consumers most in need. About
17.5 million people live in manufactured homes. 3 In 2019, the median household income of
manufactured homeowners was $34,800, and the mean household income was $43,900, making
manufactured housing a key component of affordable housing. In 2021, the average sales price of a
manufactured home was $102,175. 4
Payments to States: $4.6 million of the Budget will address instances of non-conformance with the
Construction and Safety Standards for homes manufactured or located in States with a State
Administrative Agency (SAA). SAAs work with manufacturers to ensure consumers are notified of
any defect, or, in the event of a serious problem, the SAAs may require the manufacturers to repair
or replace manufactured homes. There are currently 33 SAAs in the program. HUD is responsible for
direct oversight in the 1 7 States without SAAs and performs these functions with assistance from
the contractor for Monitoring Primary Inspection Agencies and States.
Contracted Assistance for Program Implementation: $9.4 million of the Budget will cover the
contractual costs for monitoring program compliance and enforcing program regulations, specifically:
3 U.S. Census Bureau, American Community Survey, 2019
4 U.S. Census Bureau. Manufactured Housing Survev Data. October 2021,
27-2
GAD 47-463 05/03/2022
183
MANUFACTURED HOUSING FEES TRUST FUND
• Enable HUD to continue to monitor the manufacturer's compliance with the Construction
and Safety Standards ($4.6 million IPIAs/SAAs + $1.6 million DAPIAs):HUD oversees
18 third-party agencies who approve manufacturers' designs (6 Design Approval Primary
Inspection Agencies (DAPIAs)) and inspect construction and quality programs in the plants
(12 Production Inspection Primary Inspection Agencies (IPIAs)). These agencies ensure
compliance with HUD's standards from approximately 139-manufacturing plants
nationwide. In addition, HUD's contractor also performs record reviews in the 17 non-SAA
states and monitors the performance of and supports 33 SAA partnerships including joint
monitoring teams consisting of contractor and SAA staff.
• Continue oversight of the Model Installation Standards in all States ($1.2 million). OMHP is
responsible for installation oversight nationwide and the licensing and training of installers
in many States. OMHP has implemented a Federally administered program in 14 States that
have no installation programs and oversees State-administered programs in 36 States that
are HUD-approved.
• Continue administration of the Dispute Resolution Program ($650,000) to resolve disputes
between manufacturers, retailers, and installers of manufactured homes. OMHP manages a
Federally-administered program in 24 States without dispute resolution programs and
oversees State-administered programs in 26 States. The contract will also work to expand
the resources, information, and data available to prospective and current homeowners.
• Facilitate coordination of activities of the Manufactured Housing Consensus Committee
($425,000) through an Administering Organization (AO). The Committee is mandated by the
amendments to the National Manufactured Housing Construction and Safety Standards Act
and oversees the Federal Advisory Committee process. The AO supports 22 MHCC members
comprised of 21 MHCC voting members and one HUD member that serves as a non-voting
Designated Federal Official. The MHCC provides recommendations to the Secretary on
construction standards, installation standards, and enforcement regulations in a Proposed
Rule format with an economic analysis. The contractor also provides technical support by
compiling cost and benefit data and providing analysis that will be useful in required impact
analyses. This is a decrease from the 2022 request due to lower estimated contracting costs
for economic analysis assistance.
• Increase collaboration and cooperation of all stakeholders ($925,000) through up to four
meetings with individual States or small group meetings in a fiscal year with partners in the
Federal Manufactured Housing Program. These meetings are held with stakeholders to
ensure that the program operates in a consistent and collaborative manner. These meetings
bring stakeholders together, including meetings of the MHCC, meetings with in-plant and
design approval agencies, and meetings at a national and regional level with State partners,
as well as meetings with other Federal agencies.
27-3
GAD 47-463 05/03/2022
184
MANUFACTURED HOUSING FEES TRUST FUND
Key Assumptions: The costs of these programmatic activities are rising steadily due to inflation,
increases in the production of manufactured homes, and the steady increase in the number of
production facilities nationwide. HUD is responsible for overseeing the DAPIAs and IPIAs to ensure
the quality assurance programs are working properly so that consumer safety is not compromised.
This is critical as manufactured homes are inspected by the IPIA in only one stage of production. The
number of manufactured homes produced annually has increased by nearly 33 percent from 2016 to
2021, and production for the first three
months of 2022 is more than 1,500 units
ahead of the same period last year, despite
continuing impacts from the COVID-19
pandemic. Also, the number of
manufacturing plants has increased from
122 in 2013 to 139 in 2022. Manufacturers
pay a $100 fee per transportable home
section (a manufactured home typically has
1-2 transportable sections). In 2021, HUD
collected approximately $16. 7 million in
fees. HUD projects an estimated $16
million in fee collections during 2022 and
2023.
Outcomes, Performance Indicators, and Other Evidence
Since the program's inception in 1976, the overall quality, safety, and durability of manufactured
housing has improved while preserving affordability. The number of per capita fires and deaths in
manufactured homes has been significantly reduced compared to homes produced before the HUD
standards became effective. 5 Manufactured homes produced under the HUD Code perform better in
high wind events due to enhancements to modern manufactured home construction standards. 6
Moreover, financial organizations have been encouraged to offer home mortgages instead of chattel
financing due to the increased lifetime and durability of manufactured homes produced under HUD's
program.
HUD is also working to continuously update the Manufactured Home Construction and Safety
Standards and associated regulations. In 2021, HUD published a final rule updating the HUD Code
based on the third set ofMHCC recommendations. HUD has been making steady progress in
preparing additional updates to be published. Regular updates to the HUD Code are essential to
further the associated strategic goals and administration priorities of equitably providing safe,
durable, and affordable, manufactured homes nationwide.
Administration Priorities
As a regulatory office, OMHP is uniquely positioned to assist in meeting several of the
Administration's priorities. Manufactured housing is a housing solution that can help Americans
realize the dream of homeownership. By enabling disadvantaged households to advance their own
economic opportunities, OMHP directly supports the objective of sustainable homeownership and
financial viability. Additionally, as a major source ofFEMA-provided temporary housing,
manufactured homes also support the short-term and long-term objectives of disaster recovery. HUD
has been working towards minimizing the industry impacts of supply chain disruptions for the
5
John R. Hall, Jr., National Fire Protection Association, Manufactured Home Fires, September 2013.
6Institute for Building Technology and Safety, An Assessment of Damage to Manufactured Homes Caused by
Hurricane Charley, March 2005.
27-4
GAD 47-463 05/03/2022
185
MANUFACTURED HOUSING FEES TRUST FUND
manufactured housing industry, providing code updates on a more regular basis, improving
organizational outreach/communication to address homelessness, and continuing communication,
cooperation, and collaboration with stakeholders. To support energy efficiency and innovation,
OMHP has been working with the Department of Energy to provide feedback on its rule for
increased energy efficiency in manufactured homes and working with DOE on compliance and
enforcement.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
None.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For necessary expenses as authorized by the National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5401 et seq.), up to $14,000,000, to remain available until expended,
of which $14,000,000 shall be derived from the Manufactured Housing Fees Trust Fund (established
under section 620(e) of such Act (42 U.S.C. 5419(e)): Provided, That not to exceed the total amo.;nt
appropriated under this heading shall be available from the general fund of the Treasury to the extent
necessary to incur obligations and make expenditures spending the receipt of collections to the Fund
pursuant to section 620 of such Act: Provided further, That the amount made available under this
heading from the general fund shall be reduced as such collections are received during fiscal year
2023 so as to result in a final fiscal year2023 appropriation from the general fund estimated at zero,
and fees pursuant to such section 620 shall be modified as necessary to ensure such a final fiscal year
2023 appropriation: Provided further, That for the dispute resolution and installation programs, the
Secretary may assess and collect fees from any program participant: Provided further, That such
collections shall be deposited into the Trust Fund, and the Secretary, as provided herein, may use
such collections, as well as fees collected under section 620 of such Act, for necessary expenses of such
Act: Provided further, That, notwithstanding the requirements of section 620 of such Act, the
Secretary may carry out responsibilities of the Secretary under such Act through the use of approved
service providers that are paid directly by the recipients of their services.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
27-5
GAD 47-463 05/03/2022
186
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Housing
FHA- Mutual Mortgage Insurance Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 130,000 43,575 173,575 151,044 126,000
2022 Annualized CR 130,000 22,531 152,531 130,000 116,000
2023 President's Budget 165,000 24,531 189,531 174,000 130,000
Change from 2022 35,000 2,000 37,000 44,000 14,000
a/ 2021 Carryover includes $39.6 million in carryover and $4.0 million in recaptures.
bi 2022 Carryover includes $20.2 million in estimated carryover and $2.3 million in anticipated recaptures.
cl 2023 Carryover includes $22.5 million in estimated carryover and $2 million in anticipated recaptures.
PROGRAM PURPOSE
Under the Federal Housing Administration (FHA) Single Family Housing programs, the Mutual
Mortgage Insurance (MMI) Fund has insured approximately 52.3 million home mortgages since
1934. It provides mortgage insurance on single family mortgage loans made by FHA-approved
lenders throughout the United States and its territories. FHA Single Family Housing programs
provide mortgage insurance for the purchase and refinance of homes with one to four units. The
MMI Fund strives to meet the needs of many first-time, low- to moderate-income and minority
homebuyers who, without FHA insurance, may find mortgage credit to be unaffordable or simply
unavailable. FHA also remains active and viable in all markets during times of economic disruption,
playing an important countercyclical role until private capital returns to its normal levels. During
times of credit contraction, FHA plays an integral role in expanding equitable access to financing for
traditionally marginalized borrowers. Through the MMI Fund, the Department offers several types
of single-family forward (traditional) mortgage insurance products and Home Equity Conversion
Mortgages (HECMs) for seniors. Activity for the Cooperative Management Housing Insurance
(CMHI) Fund-which insures mortgages for multifamily cooperatives-is also reported together with
the MMI Fund.
BUDGET OVERVIEW
The 2023 President's Budget requests $165 million for FHA administrative contract expenses, which
is $35 million more than the 2022 annualized CR level. This amount includes up to $15 million for a
new Home Equity Accelerator Loan (HEAL) pilot. The 2023 Budget also requests $400 billion in loan
guarantee commitment authority and $1 million in direct loan authority, which are both equal to the
2022 annualized CR level.
The increase of $35 million over the 2022 Annualized CR level includes an additional $20 million for
administrative contract expenses, which is attributable to increased costs for Secretary-held
mortgage servicing, including HECM servicing, mortgagee compliance contractor expenses, and real
estate owned (REO) case management. The primary cause of the increase is the growing expense of
servicing the Secretary-held HECM portfolio. In addition, due in part to the increased volume of
partial claims in response to the COVID-19 pandemic and natural disasters, the Secretary-held
mortgage servicing portfolio continues to grow. FHA anticipates expending significantly more
resources to service these mortgages and to dispose of the properties once they become vacant.
28-1
GAD 47-463 05/03/2022
187
FHA - MUTUAL MORTGAGE INSURANCE FUND
The increase also includes $15 million for the Home Equity Accelerator Loan (HEAL) pilot program.
The HEAL pilot program will offer a new loan product to increase access to homeownership and
facilitate faster accumulation of home equity for first-generation and/or low-wealth first-time
homebuyers.
JUSTIFICATION
The 2023 President's Budget requests $165 million for the FHA MMI Program Account. This amount
will provide funding for contracts necessary for the administration of FHA programs operating under
the MMI and the General Insurance and Special Risk Insurance (GI/SRI) Fund, as well as the HEAL
pilot program. It will fund activities including, but not limited to; insurance endorsement of single-
family mortgages, single-family case management system for REO properties, Secretary-held
mortgage servicing, HECM counseling tools, construction inspections on multifamily projects, the
required annual FHA independent actuarial review, FHA Resource Center, management and
oversight of asset disposition, risk analysis, accounting and audit support, and assistance with
claims, partial claims, and premium refund processing.
The services identified in the 2023 Budget also support Multifamily Housing's core program
functions, including, but not limited to: post-closing portfolio management, loan underwriting
support services, construction inspections, document scanning and imaging, loan servicing and
accounting, financial advisor services, and the Clearinghouse Call-in Center.
Together these activities and services support underserved communities and promote
homeownership as demonstrated in the discussion below.
For budgetary purposes, the programs of the MMI Fund are broken into three risk categories:
Forward mortgages, HECMs, and HEAL.
• Forward programs: provide mortgage insurance for the purchase and refinance of homes
with one to four units. Loan products under this category include single-family forward
mortgages (Section 203(b)), condominiums, homes purchased on Indian and Hawaiian lands,
and rehabilitation loans (Section 203(k)). Maximum mortgage amounts insured by FHA (i.e.,
loan limits) are calculated annually by HUD and are generally set at 115 percent of the
median house price in each county, subject to a "low-cost" floor and "high-cost" ceiling. There
are also special exception loan limits for certain areas to account for higher construction
costs.
• The HECM program: provides senior homeowners aged 62 and older access to FHA-insured
reverse mortgages, which enable seniors to access the equity in their homes to support their
financial and housing needs as they age. The HECM program fills a unique role in the
national mortgage market and offers critical opportunities for the Nation's seniors to utilize
their own assets and resources to preserve their quality oflife as they age. The HECM
program provides options for seniors to access their equity through monthly payments,
draws from a line of credit, a combination of these options, or one-time draws at closing.
Unlike a forward mortgage, the HECM borrower does not make payments on the loan and
the loan does not become due and payable until the last remaining borrower no longer
occupies the property or fails to comply with other requirements of the loan, such as payment
of property taxes and insurance.
• HEAL: is a positive credit subsidy program that will provide more opportunities for
homeownership to first-generation and/or low-wealth first-time homebuyers. This program
will offer new loan products to enable these individuals to more rapidly access
homeownership and build equity.
28-2
GAD 47-463 05/03/2022
188
FHA- MUTUAL MORTGAGE INSURANCE FUND
Commitment Authority - Up to $400 billion for New Loan Guarantees
The 2023 President's Budget requests $400 billion in loan guarantee commitment limitation, which
is to remain available until September 30, 2024. This limitation includes sufficient authority for
insurance of single-family forward mortgages and HECMs. Loan volume projected in 2023 for MMI
programs is $254.8 billion that includes $225 billion for standard forward mortgages, $26.4 billion
for HECMs, and $3.4 billion for the HEAL pilot program. The size and two-year availability for the
total commitment authority reduces the likelihood of program disruption due to delays in enactment
of full-year appropriations or greater than expected demand for loan guarantees.
Negative Subsidy Receipts
The $251.4 billion in loan volume projected for the forward and HECM MMI portfolios in 2023 is
expected to generate $7.97 billion in negative subsidy receipts, which are transferred to the MMI
Capital Reserve account, where they are available to cover any unexpected future cost increases for
the MMI portfolio.
Commitment Authority- Up to $1 million for Direct Loans
The loan authority requested would provide short-term purchase money mortgages for non-profit
and governmental agencies. It would enable these entities to make HUD-acquired single-family
properties available for resale to purchasers with household incomes at or below 115 percent of an
area's median income. This program has been infrequently used in recent years due to the shortage
of State and local government subsidies needed to offset participants' development costs associated
with administering the program. Nonetheless, the program remains a valuable tool for HUD's
support of affordable homeownership opportunities in distressed communities while responsibly
managing its REO inventory of properties.
Administrative Contracts- $150 million
The $150 million requested for 2023 will provide funding for contracts necessary in the
administration of FHA programs operating under MMI and GI/SRI. This will fund activities
including, but not limited to, insurance endorsement of single-family mortgages, construction
inspections on multifamily projects, the required annual FHA independent actuarial review in
support of the financial audit and other mandated requirements, management and oversight of asset
disposition, risk analysis, accounting support services, and assistance with claims and premium
refund processing.
Home Equity Accelerator Loan (HEAL) Pilot - $15 million
This funding will support the subsidy cost of the HEAL pilot, which will offer new loan products
designed to lower barriers to homeownership for first-generation and/or low-wealth first-time
home buyers. This initiative will expand eligibility for FHA home mortgage insurance and may
include incentives for lenders or borrowers.
Information Technology
FHA Catalyst is a critical information technology modernization initiative to make FHA systems
operationally more efficient and effective for both internal users and external customers. This
modernization effort is necessary for FHA to support HUD's mission and objectives including to
promote homeownership, equitable access to credit, and wealth building in underrepresented
28-3
GAD 47-463 05/03/2022
189
FHA - MUTUAL MORTGAGE INSURANCE FUND
communities. For additional information regarding HUD's Information Technology investments,
please see the Information Technology Fund Justification.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Oinlract Expenses 130,00Q 43,575 173,575 151,044 130,000 22,531 152,531 150,000
Home Equily
Accelarator Loans 15.000
Total 130,000 43,575 173,575 151,044 130,000 22,531 152,531 165,000
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
• Removed language for a pilot expansion of the Good Neighbor Next Door program.
General Provisions
The 2023 President's Budget re-proposes the following general provision(s) that were enacted in the
2021 appropriations bill:
• Eminent Domain Restrictions: Prohibits HUD from guaranteeing mortgages or mortgage-
backed securities that refinance or otherwise replace mortgages that have been subject to
eminent domain. (President's Budget Section 217)
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes through the
authorization process:
• HECM Non-Borrowing Spouses: Current law is ambiguous on the limits of foreclosure
protections (i.e., loan deferrals) for non-borrowing spouses, which has led to questions
regarding their availability for non-borrowing spouses NOT identified at origination (e.g.,
HECM borrower remarries). This proposal would clarify that automatic protections apply
only to non-borrowing spouses identified at origination, consistent with current policy, while
also establishing flexibility to extend further protections at the Secretary's discretion.
• FHA Lender Suspension Authority: Currently, if FHA wants to suspend a lender's approval
to do business with FHA, it must do so for a minimum of 6 months. HUD proposes to allow
shorter suspension periods such as one month. FHA rarely uses its existing suspension
authority because a 6-month suspension would put many lenders out of business and
therefore has the same practical effect as the more severe sanction of withdrawing a lender's
FHA authority. Allowing HUD to impose shorter suspensions would pressure lenders to
address violations without permanently forcing them out of the program.
• FHA Civil Money Penalties: Under current law, FHA imposes civil money penalties against
lenders up to per-violation ($10,366) and annual ($2,073,133) caps. For some lenders, civil
28-4
GAD 47-463 05/03/2022
190
FHA- MUTUAL MORTGAGE INSURANCE FUND
money penalties may not be an effective deterrent to bad behavior, or incent corrective
action, due to the limited costs permitted by the annual cap. Depending on the number of
violations, a lender may look at the cost of remedying the violations and compare it to the
annual cap and decide it is less costly to pay the penalty. This proposal would strengthen
FHA's enforcement authority by eliminating the annual cap while maintaining the per-
violation maximum in place.
• Remove HECM Loan Cap: This proposal would eliminate the statutory cap on the number of
HECM loans that can be insured by FHA, which is routinely waived in the 2023 Budget and
Appropriations Acts.
• Removal of Obsolete Language: This proposal would strike obsolete language related to the
use of a 2001 study to set HECM premiums, which would have no practical implications for
the program.
• Improvements to Partial Claim Execution: HUD's current partial claim authority requires
the creation of a separate junior lien to the FILA-insured first mortgage. This proposal would
provide HUD more flexibility in structuring partial claim notes, such as tying them to the
first lien and directing lenders to conduct servicing. This would reduce FHA administrative
costs and possibly increase recoveries since junior liens can be extinguished in foreclosure or
bankruptcy.
• Claim adjustments for errors in property disposition: This proposal would allow downward
adjustments to FHA claim payments in the unlikely event that a servicer inadvertently sells
a foreclosed property below the FHA-approved floor.
• HECM Foreclosure Notifications: This proposal would clarify that foreclosure notices can be
provided to heirs of a deceased HECM borrower or other persons designated by the borrower
in the HECM loan documents to mitigate the risk of unnecessary foreclosure delays and
associated costs to FHA.
Standardize Language in Section 203: This proposal would amend the FHA 203 program
statute to ensure consistent terms and definitions.
• PACE priming of FHA-insured Loans: Current policy prohibits new FHA-insured loans on
properties with outstanding first-lien Property Assessed Clean Energy (PACE) loans but
does not prevent first-lien PACE loans after a mortgage is insured by FHA. This proposal
would address this gap by requiring PACE providers to obtain HUD consent before adding
PACE loans to properties with outstanding FHA-insured mortgages.
• Housing Counseling for HECM Refinances: Under current law, prospective borrowers must
receive HUD-approved housing counseling to qualify for a HECM, except a borrower can
waive this requirement for a refinance if less than five years has passed since the closing
date of their current HECM. This proposal would extend the counseling requirement to
refinances of HECMs obtained within the last five years.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
New commitments to guarantee single family loans insured under the Mutual Mortgage Insurance
Fund shall not exceed $400,000,000,000, to remain available until September 30, 2024: Provided,
That during fiscal year 2023, obligations to make direct loans to carry out the purposes of section
204(g) of the National Housing Act, as amended, shall not exceed $1,000,000: Provided further, That
the foregoing amount in the previous proviso shall be for loans to nonprofit and governmental entities
28-5
GAD 47-463 05/03/2022
191
FHA - MUTUAL MORTGAGE INSURANCE FUND
in connection with sales of single family real properties owned by the Secretary and formerly insured
under the Mutual Mortgage Insurance Fund: Provided further, That for administrative contract
expenses of the Federal Housing Administration, $165,000,000, to remain available until September
30, 2024: Provided further, That of the amount in the previous proviso, up to $15,000,000, to remain
available until September 30, 2025, shall be for the cost of guaranteed loans to support a pilot of new
loan products, which may include mortgagee and borrower incentives designed to lower barriers to
homeownership, notwithstanding the limitations on eligibility in section 203(b) of the National
Housing Act: Provided further, That such costs in the previous proviso, including the costs of
modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974:
Provided further, That notwithstanding the limitation in the first sentence of section 255(g) of the
National Housing Act (12 U.S.C. 1715z-20(g)), during fiscal year 2023 the Secretary may insure and
enter into new commitments to insure mortgages under section 255 of the National Housing Act.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
28-6
GAD 47-463 05/03/2022
192
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Housing
FHA - General and Special Risk Insurance Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 1,574 1,574
2022 Annualized CR 1,574 1,574
2023 President's Budget 1,574 1,574
Change from 2022
PROGRAM PURPOSE
The Federal Housing Administration's (FHA) General Insurance and Special Risk Insurance
(GI/SRI) Fund programs are a critical component of the Department's efforts to meet the Nation's
need for decent, safe, and affordable housing. These programs provide the necessary liquidity so that
communities can:
• Continue to provide quality affordable housing and assisted living/nursing home/hospital
opportunities;
• Improve access to quality healthcare, reduce the cost of that care, and support the needs of
aging populations in communities nationwide;
• Strengthen local economies by playing a countercyclical role in the market;
• Improve the availability and maintenance of rental housing for low- and moderate-income
families; and
• Enable private lenders to make loans for important projects, places of historic disinvestment
or exclusion that might otherwise not be possible.
Credit programs under the FHA GI/SRI Fund include:
• Multifamily Rental Housing: loan guarantees for the construction, rehabilitation,
preservation, and refinancing of multifamily rental housing;
• Healthcare Facilities: loan guarantees for the construction, rehabilitation, and refinancing of
hospitals, nursing homes, and other healthcare facilities; and
• Single family: loan guarantees for manufactured housing and property improvement loans
under Title I of the National Housing Act.
BUDGET OVERVIEW
The 2023 President's Budget for the Federal Housing Administration's (FHA) General Insurance and
Special Risk Insurance (GI/SRI) Fund program requests $35 billion in loan guarantee commitment
authority, and $1 million in direct loan authority. The loan guarantee commitment authority is
$5 billion more than the 2022 President's Budget. The Budget estimates $789 million in offsetting
negative credit subsidy receipts in 2023 from GI/SRI loan guarantees.
At the requested level, GI/SRI is projected to issue over $28 billion in loan insurance commitments in
2023, including:
28-7
GAD 47-463 05/03/2022
193
FHA - GENERAL AND SPECIAL RISK INSURANCE FUND
• Approximately $1.5 billion in loan guarantees for 38 new Federal Financing Bank (FFB)
Risk Sharing loans;
• Approximately $21.1 billion in loan guarantees to support 1,113 housing apartment projects;
• Approximately $5.6 billion in loan guarantees for 404 healthcare facilities; including
residential care facilities (skilled nursing homes, assisted living facilities, and board & care
homes), and 11 hospitals; and
• Approximately $51 million for 3,025 Title I manufactured housing and property
improvement projects.
JUSTIFICATION
GI/SRI commitment volume exceeded $30 billion for the first time in 2021, totaling over $37 billion.
Commitment authority has been set at $30 billion since 2014, a level designed to ensure no
interruption in availability of liquidity. GI/SRI commitment volume began a dramatic increase in
2020, reaching record volumes in 2021. Several factors driving the increase are low interest rates
(even with recent increases), a strong ongoing demand for rental housing, and COVID-19 capital
market disruption. Increasing commitment guarantee authority to $35 billion will ensure no
interruption in availability of liquidity.
The 2023 Budget supports mortgage insurance programs that are essential in supporting
underserved communities, ensuring access to and increasing the production of affordable housing,
promoting home ownership, and advancing sustainable communities. More specifically:
• GI/SRI mortgage insurance encourages private lenders to make loans for new rental housing
in high-demand markets, innovative energy technology renovations, nursing homes serving
aging senior citizens, and critical access hospitals. In addition to providing better access to
credit for new developments, GI/SRI supports refinance lending to preserve financially
healthy housing and healthcare projects by helping them reduce high current debt
obligations. The major refinancing programs for housing and nursing home facilities offer
long-term amortization periods and are a critical option for many conventionally financed
projects facing large balloon payments. GI/SRI refinancing may also enable properties to
undertake needed renovation and rehabilitation for the health and safety of the residents.
• FHA mortgage insurance enhances a borrower's credit and provides banks with better access
to capital markets, most notably through Ginnie Mae securities for eligible programs. In
exchange for adherence to strict underwriting and application requirements established by
HUD and the payment of annual insurance premiums, HUD-certified lenders can file claims
with FHA when a borrower defaults. Mortgage insurance premiums and specific terms for
claim payments vary by program. GI/SRI mortgage insurance works in part by helping
private lenders access liquidity otherwise not available to borrowers developing or
maintaining rental housing for low- and moderate-income families.
• FHA mortgage insurance facilitates fixed-rate loans with long-term amortization not found
with conventional lending sources. This mitigates interest rate risk for owners because they
do not necessarily have to refinance to. maintain affordability of their payments. The long-
term amortization period and guarantee of payment in the event of claim stabilizes interest
rates and can also allow monthly mortgage payments to be less than payments required
under non-insured financing. These savings in turn can reduce the overall costs of developing
and maintaining housing, stabilizing housing markets, and benefiting low- and moderate-
income residents. Similarly, FHA financing of healthcare facilities contributes to lower
healthcare costs for taxpayers and consumers.
28-8
GAD 47-463 05/03/2022
194
FHA- GENERAL AND SPECIAL RISK INSURANCE FUND
Projected activity by risk category is detailed in the "GI/SRI Risk Categories and Estimated Volume"
table; please see below for descriptions of each loan category.
GI/SRI Risk Categories and Estimated Volume:
• I
$3,143 -0.90% $32
$5,522 -2.17% $121
$11,957 -2.25% $297
Hou · Finaoce 542c $303 -1.56% $6
GSE risk-share
Other Rental $195 -2.64% $7
$ubtot81 - Mulifami/ Pr rams c $21,118 -2.02% $463
New Construction and 241(a)/Residential Care Facilities
_g!32_nc , 241 d $125 -5.80% $7
Refinances (a7 and 223(0)/Residential Care Facility Refinances
2}.2.Jeii1_9 eration Loss $4,812 -2.27% $121
Hos itals 242 $642 -5.73% $36
$5,579 -2.75% $164
Title 1 - Pro e Im rovement $50 -1.60% $1
Title 1 - Manufactured Housin $1 -6.15% $0
Total• Guaranteed Loan Levels c $26,749 $628
Total· GI/SRI Fund" $28,24/i -2.49%
a/ Receipts are recognized as the underlying loans are disbursed.
b/The FFB Risk Shanng program ceased accepting new applications after December 31, 2018. New applications were accepted starting September 1, 2021
when !he program was reactivated, and loan commitments resumed in 2022.
c/ The subsidy rate is a weighted average.
Multifamily and Healthcare loans are large and complex. Prior to receiving a mortgage guarantee for
any multifamily or healthcare loan, lenders and borrowers must complete a rigorous application
process in which HUD staff review borrower creditworthiness, cash flow projections, property
appraisals, architectural design, environmental impact, requested loan size, quality of the property
management, and other information that establishes a loan as an acceptable credit risk to HUD.
Large multifamily housing projects and all healthcare facility loans receive secondary review and
approval by a national loan committee of senior HUD officials. Once insurance has been approved,
progress on any new construction or renovation is closely monitored by HUD inspectors. HUD asset
managers monitor project financial statements on an ongoing basis and periodic physical inspections
are conducted by HUD's Real Estate Assessment Center. Loss mitigation measures, including partial
payment of claims, are undertaken before a default and full claim on the loan occurs. When a
borrower does default and a claim is filed, HUD will take possession of the mortgage note or property
and seek to recover losses.
28-9
GAD 47-463 05/03/2022
195
FHA- GENERAL AND SPECIAL RISK INSURANCE FUND
With each mortgage it insures, FHA carefully considers the benefits of renewed capital investment
in the community balanced with the financial risks to the government. Cognizant of the risks
associated with FHA's role in the housing market, the Department has launched several new
initiatives aimed at appropriately managing the risk involved with Multifamily loans. Risk
mitigation procedures for Multifamily Housing originations include a tiered loan approval structure
requiring increasing levels of Loan Committee review based on program and dollar amount of each
loan. In addition, HUD staff conduct a thorough underwriting review of each transaction, and the
Office of Risk Management and Regulatory Affairs conducts sampling of post-commitment reviews.
Loan origination and default data and trends are monitored by HUD, and lenders are required to
obtain third-party quality control reviews on a sampling ofloans and for all early claims, defined as
those that occur within four years of final endorsement.
Healthcare facilities are major economic engines and community anchors that are pivotal for
economic growth and quality of life within communities nationwide. The healthcare portfolio as of
January 2022 included 3,729 insured residential care facilities (assisted living facilities, nursing
homes, and board and care homes) in all 50 states as well as the District of Columbia, and
88 hospitals within 22 states and territories including Puerto Rico. Through proactive risk
management, HUD has maintained extremely low claim rates of under two percent in both
programs.
FHA's effectiveness is demonstrated by the tangible result of its programs. Quality housing and
healthcare facilities are made possible and more affordable throughout the country due to the FHA
mortgage guarantee. For example, as of February 2022 FHA's Commercial Mortgage Portfolio
(Multifamily and Healthcare programs) currently supports 15 thousand loans on 1.98 million units.
Multifamily Risk Categories
Federal Financing Bank (FFB) Risk Share: The FFB Risk Share Initiative was started in 2015 to
increase access to and reduce the cost of funding for multifamily mortgage loans insured by FHA
through its Section 542 Risk Sharing programs with Housing Finance Agencies (HFAs). This
Initiative was an inter-agency partnership between HUD, Treasury's FFB and HFAs that provided a
Ginnie Mae-like financing mechanism for HFA risk-share partners until Ginnie Mae securitization
is allowed for the Section 542(c) programs. This Initiative ended in 2018. To address the critical need
for affordable housing, and to ensure a stable source of capital in an environment of volatile tax-
exempt bond pricing, HUD has temporarily resumed the Initiative, with a renewed emphasis on
enacting legislation to provide a permanent source of lower-cost capital through Ginnie Mae
securitization. This second phase of the FFB Initiative has started with the first loans issued in
2022, and will sunset in 2024. In the interim, HUD is pursuing legislation that will permit 542(c)
loans to access Ginnie Mae securitization permanently.
Section 22l(d)(4) Mortgage Insurance for Rental Housing: The Section 221(d)(4) program is FHA's
largest for new construction/substantial rehabilitation of multifamily housing. The program insures
loans for up to between 85 and 90 percent of the project replacement cost (as limited by debt service
coverage and per-unit cost requirements). The program covers long-term mortgages of up to 40 years
and, like all FHA new constru_ction loan programs, provides for both construction and permanent
financing.
Sections 223(f) and 223(a)(7) Mortgage Insurance for Refinancing or Purchase of Existing
Multifamily Rental Housing: Section 223(f) allows for long-term mortgages of up to 35 years for
refinancing or purchase of existing multifamily rental housing. Refinances of current FHA-insured
multifamily loans are also offered under Section 223(a)(7) but are grouped together with Section
223(f) for budgetary purposes.
28-10
GAD 47-463 05/03/2022
196
FHA- GENERAL AND SPECIAL RISK INSURANCE FUND
Section 24Ha) Mortgage Insurance for Supplemental Loans for Multifamily Housing Projects:
Section 24l(a) provides mortgage insurance for supplemental loans for multifamily housing projects
already insured or held by HUD. This program is intended to keep projects competitive, extend their
economic life, and finance the replacement of obsolete equipment. Section 24l(a) mortgages finance
repairs, additions, and other improvements. These loans take the second position to the primary
mortgage. For budgetary purposes, these loans are included in the risk category of the primary loan
they are supplementing.
Section 542(b) Risk Sharing with Qualified Participating Entities (QPEs): This is one of two
multifamily programs under which FHA insures only a portion of the losses by sharing the risk with
Fannie Mae, Freddie Mac, and other qualified federal, state, and local public financial and housing
institutions. If a loan insured under Section 542(b) defaults, the QPE will pay all costs associated
with loan disposition and will seek reimbursement from HUD for 50 percent of the losses.
Section 542(c) Risk Sharing with Housing Finance Agencies (HFAs): Section 542(c) provides
mortgage insurance of multifamily housing projects whose loans are underwritten, processed,
serviced, and disposed ofby state and local HFAs. FHA insurance enhances HFA bonds to
investment grade and provides capital for affordable housing construction. HFAs may elect to share
from 10 to 90 percent of the loss on a loan with HUD. Section 542(c) insured-projects often include
low-income housing tax-credits, in which case they are reported under GI/SRI's risk category for Tax
Credit Projects.
Other Rental Programs: This risk category includes several relatively low-volume programs that
have been grouped together for budgetary purposes, including Section 220 loans in urban areas,
Section 231 loans for elderly housing, and Section 207 loans for mobile home park development.
Section 220 is a new-construction program, distinct from 22l(d)(4) in that it insures loans for
multifamily housing projects in urban renewal areas, code enforcement areas, and other areas where
local governments have undertaken designated revitalization activities. The program offers special
underwriting allowances for greater mixed-use development. Section 231 is also a new
construction/substantial rehabilitation program, but for projects specifically designed for senior
citizens. For Section 231 projects with 90 percent or greater rental assistance, the maximum loan
amount is 90 percent of the estimated replacement cost.
Tax Credit Projects: Projects assisted with Low-Income Housing Tax Credits (LIHTC) may be
insured under several FHA multifamily programs but are grouped together in a single budget risk
category. These loans have a lower risk of default than similar projects without tax credits and
require borrowers to pay lower FHA mortgage insurance premiums.
Healthcare Risk Categories
Section 232 New Construction/Substantial Rehabilitation of Residential Care Facilities: Section 232
programs are split into two budget risk categories, the first of which includes new-construction and
substantial-renovation projects. The program enables access to capital that may not otherwise be
available for many quality providers in underserved areas, thereby providing access to needed
healthcare and residences for seniors. These loans are offered for terms of up to 40 years and provide
both construction and permanent financing. This risk category also includes Section 24l(a)
supplemental loans made to projects with a primary FHA Section 232 mortgage.
Section 232/223(f) Refinancing and Purchase of Existing Residential Care Facilities: The Section
232/223(£) refinancing program, the second of the two budget risk categories of the section 232
program, enables existing facilities to take advantage of refinancing at low-interest rates with loan
terms of up to 35 years. For a refinance, maximum mortgage amounts are up to 85 percent of the
appraised value (90 percent if the borrower is a non-profit organization). For acquisitions, mortgages
28-11
GAD 47-463 05/03/2022
197
FHA- GENERAL AND SPECIAL RISK INSURANCE FUND
are insured up to 85 percent of the acquisition price plus transaction costs (90 percent of acquisition
price if the borrower is a non-profit organization). Equity cash-out transactions are prohibited under
this program. Section 223(a)(7) refinances of existing Section 232 loans are also reported under this
risk category, as well as operating loss loans insured under Section 223(d).
Section 242 Hospitals: The Section 242 program provides mortgage insurance for loans made to
acute care hospitals. An FHA guarantee allows hospitals to lock in low-interest rates and reduce
borrowing costs for major renovation, expansion, replacement, and refinancing projects that help
improve healthcare access and quality. Loans are up to 25 years in length, plus a construction
period, if applicable. The risk category also includes Section 24l(a) supplemental loans, Section
223(a)(7) loans for refinancing current FHA-insured projects, and Section 223(e) loans for hospitals
in older, economically declining urban areas.
Single Family Risk Categories
Title 1 Property Improvement: The Title I Property Improvement program insures loans for repairs
and other improvements to residential and non-residential structures, as well as new construction of
non-residential buildings.
Title 1 Manufactured Housing: Under Title I, HUD provides mortgage insurance for individuals to
finance manufactured homes and lots on which to set the homes.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Legislative Proposals
The 2023 Budget supports the following legislative proposal(s) and will seek changes through the
authorization process:
Section 232 Loans Civil Money Penalties: FHA's Section 232 program insures loans made to
residential care facilities, such as nursing homes. The borrowers responsible for repaying the loan
often lease the facility to operators who provide day-to-day management of the facility and its
residents. Although these operators can directly impact the performance of the property, FHA's
ability to enforce quality operations is somewhat diluted, relying on either the owner or regulatory
agreements with the operator. FHA seeks explicit authority to assess civil monetary penalties for
violations of the regulatory agreement, as a more immediate lever for addressing financial
performance issues and reducing the risk of management-related defaults.
Increase in Property Improvement Loan limits under Title I and provide for construction of new
residential structures: The current Property Improvement loan program, which provides insurance
28-12
GAD 47-463 05/03/2022
198
FHA- GENERAL AND SPECIAL RISK INSURANCE FUND
for loans and mortgages made for the purpose of financing property alterations, repairs and
improvements, has seen a steady decline in usage over the past ten years and a significant reduction
since the peak in the mid 1990's 1• The decline in utilization has been particularly problematic for
homeowners that lack capital for property improvements, as much of the improvements are
increasingly executed with existing reserves rather than financing. Because low- and moderate-
income homeowners often lack sufficient reserves, viable and cost-effective financing products are
necessary to enable needed repairs or improvements that improve livability and increase homeowner
equity.
While multiple market forces affect the use of the program, a significant obstacle to its use has been
the static loan limit of $25,000 for single unit properties which has been in effect since 19922 • Since
that time, there have been significant increases in the cost of building materials, labor, and other
renovation costs.
As mortgage interest rates rise and the inventory of homes available for purchase remains low,
demand for property improvement loans is expected to increase. Access to affordable renovation
financing will allow households that currently have lower interest rates for their first mortgages to
make adaptations to their existing homes to meet their current needs. In order for the Title I
program to assist in meeting expected market demand for property improvement financing, it must
offer loan limits that are commensurate with its eligible uses.
For the FHA Title I program to meet the demand for renovation financing in today's housing market,
the program's loan limits must be increased to levels commensurate with current market conditions
and program uses.
Increase Title I Manufactured Housing Loan limits and provide flexibility to establish an index for
future increases: The current loan limits for the Title I Manufactured Housing program were
established in 2008 based upon average manufactured housing prices at the time. The existing
statute also provides for the indexing of such limits based upon manufactured housing price data
collected by the United States Census Bureau.
Manufactured housing represents the largest source of unsubsidized affordable housing throughout
the nation. Increasing the baseline loan limits for FHA-insured manufactured housing loans to a
level that is commensurate with the current prices of single and multi-unit manufactured homes will
allow buyers to utilize FHA-insured financing to purchase manufactured homes at more affordable
rates than are presently available in the market. This will further enhance the availability of high
quality affordable housing for low- and moderate-income households.
Providing FHA with the ability to utilize indexes other than Census Bureau data for the
establishment of Title I manufactured housing loan limits will ensure that FHA's loan limits are
calibrated to factors more appropriate and specific to this housing market. This flexibility is crucial
for Title I to be a useful and reliable financing source for the manufactured housing market.
1 FHA insured 9,320 loans in FY 2012 and 1015 loans in FY 2021. FHA insured 110,117 loans in 1996.
2The Housing and Economic Recovery Act of 2008 (HERA) also increased the loan limit to $25,090 and
established indexing for Manufactured Home improvement loans only. Manufactured Home improvement loans
make up only .02% of all Property Improvement loans since 2008. HERA set the limit at $60,000 or an average
amount of $12,000 per family unit for dwellings with greater than one unit.
28-13
GAD 47-463 05/03/2022
199
FHA - GENERAL AND SPECIAL RISK INSURANCE FUND
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
New commitments to guarantee loans insured under the General and Special Risk Insurance Funds,
as authorized by sections 238 and 519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c),
shall not exceed 35,000,000,000 in total loan principal, any part of which is to be guaranteed, to
remain available until September 30, 2024: Provided, That during fiscal year 2023, gross obligations
for the principal amount of direct loans, as authorized by sections 204(g), 207(l), 238, and 519(a) of
the National Housing Act, shall not exceed $1,000,000, which shall be for loans to nonprofit and
governmental entities in connection with the sale of single family real properties owned by the
Secretary and formerly insured under such Act.
Note.-A full-year 2022 appropriation for this accdunt was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
28-14
GAD 47-463 05/03/2022
200
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Government National Mortgage Association (GNMA)
Mortgage-Backed Securities Program
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 1,300,000,000 222,640,721 1,522,640,721 999,096,004
2022 Annualized CR 1,300,000,000 523,544,717 1,823,544,717 877,730,752
2023 President's Budget 900,000,000 945,813,965 1,845,813,965 885,573,606
Change from 2022 (400,000,000) 422,269,248 22,269,248 7,842,854
ADMINISTRATIVE EXPENSES AND COMMITMENT & MULTICLASS FEES
(Dollars in Thousands)
2022 Annualized CR 1,270,294 36,500 (1,455,794) 43,695 (178,705)
2023 President's Budget 1,455,794 241,000 42,400 (1,654,394) 49,254 (195,480)
Change from 2022 185,500 19,000 5,900 (198,600) 5,559 (16,775)
al Budget Authority for 2021 and 2022 include $3 million of eamed no-year funds contingent an volume,
PROGRAM PURPOSE
The Government National Mortgage Association (Ginnie Mae) makes affordable housing a reality for
millions of households across America by channeling global capital into the nation's housing markets
while minimizing the risk to the U.S. taxpayer. Specifically, the Ginnie Mae guaranty (i.e., the
timely payment of principal and interest to mortgage-backed securities (MBS) investors, backed by
the full faith and credit of the U. S. Government) enables mortgage lenders to sell their loans at
favorable prices in the U.S. secondary mortgage market, increasing the total funding available for
lenders to make new loans at attractive interest rates to borrowers. This helps to lower financing
costs and increases access to affordable and sustainable housing and homeownership for those that
the Federal mortgage programs are intended to serve.
BUDGET OVERVIEW
The 2023 President's Budget for Ginnie Mae consists of two parts:
1) $900 billion in limitation on new commitments of single class MBS, which is $400 billion
less than the 2022 annualized CR level; and
2) $42.4 million in spending authority from offsetting collections to cover personnel
compensation and benefits, which is $5.9 million more than the 2022 annualized CR level.
29-1
GAD 47-463 05/03/2022
201
MORTGAGE-BACKED SECURITIES PROGRAM
Commitment Authority
The 2023 President's Budget requests $900 billion in commitment authority, to remain available
until September 30, 2024. This funding level is necessary to ensure that Ginnie Mae can continue its
mission of channeling funding from the global capital markets to the primary market for Federally
backed mortgages administered by the Departments of Housing and Urban Development, Veterans
Affairs, and Agriculture in order to meet the credit access and housing needs of Americans across the
single family, multifamily, manufactured housing, and reverse mortgage segments of the market.
Salaries and Expenses (S&E)
The 2023 President's Budget requests $42.4 million, to remain available until September 30, 2024.
Ginnie Mae's S&E budget is offset by an estimated $241.0 million in collections from Commitment
and Multiclass fees, resulting in net budget authority of -$198.6 million. Please see the Ginnie Mae
S&E Congressional Justification for more details.
JUSTIFICATION
Ginnie Mae, authorized by Title III of the National Housing Act, as amended (P.L. 73-479; codified at
12 U.S.C. 1716 et seq.), does not make or purchase mortgage loans, nor does it buy, sell, or issue
securities. Instead, Ginnie Mae supports liquidity in the mortgage market by guaranteeing timely
payment of pass-through income to investors ofMBS pooled by mortgages insured and guaranteed
by the Federal Government. To do this, Ginnie Mae is provided by the Congress with a dollar
amount of commitment authority. Ginnie Mae sells this commitment authority to approved lending
institutions (Issuers), giving Issuers the ability to pool government insured mortgages and sell them
as government guaranteed MBS. Ginnie Mae, in turn and as authorized by Section 306(g) of the
National Housing Act, guarantees the performance (i.e., timely payment of principal and interest) of
the issuer who issues the MBS and who continues to service and manage the underlying loans. In
return for this guarantee on MBS securitized by approved issuers, Ginnie Mae charges a guaranty
fee. It is through this business model that Ginnie Mae executes its mission and furthers the
Administration's priorities to 1) Support Underserved Communities; 2) Ensure Access to and
Increase the Production of Affordable Housing; and 3) Promote Homeownership while also
significantly limiting its exposure to risk (see Figure 1).
Figure 1: Protecting the Ginnie Mae Guaranty
Relative Loss Position
29-2
GAD 47-463 05/03/2022
202
MORTGAGE-BACKED SECURITIES PROGRAM
The Ginnie Mae guaranty, coupled with an expected return higher than U.S. Treasury securities,
makes Ginnie Mae securities highly liquid and attractive to domestic and foreign investors of all
types. This liquidity is passed on to the issuers who can then use the proceeds from issuances to
make new loans available. The ongoing cycle (as depicted in Figure 2) helps support accessible and
affordable housing for America. Because the Ginnie Mae guaranteed MBS are backed by the full
faith and credit of the U.S. Government, capital continues to flow even during recessionary periods
when liquidity stalls in the private market and in times of great market change. This powerful
feature ensures that mortgage financing is available for homeownership and rental properties
regardless of the economic climate. In 2021, over 3.2 million homeowners and renters benefitted from
the Ginnie Mae MBS program with more than 966,100 families achieving the drea:m of
homeownership for the first time.
Figure 2·: Capital Flow of Ginnie Mae Guaranteed Securities
For over 50 years, Ginnie Mae has been a cornerstone of the U.S. mortgage market, providing
stability and liquidity to America's housing finance system and promoting homeownership and
affordable rental housing by ensuring a steady source of funding for the vast majority ~f loans
insured and guaranteed by the Federal Government. Over the last several years Ginnie Mae's MBS
issuance volumes have continued to rise significantly based on market demand, and there has been a
corresponding increased demand for commitment authority. In 2021, fueled in part by historically
low interest rates that made it possible for homeowners across the country to reduce their monthly
mortgage payments, and for first-time homebuyers to enter the market, Ginnie Mae commitment
authority sales exceeded $999 billion - a 14 percent increase over the previous $877 billion record set
in 2020.
The 2023 Budget reflects this increased demand for Federally backed mortgage loans and aligns
with Ginnie Mae's risk management objectives, as recently addressed in its 2021 Risk Profile
Assessment. Insufficient access to commitment authority increases exposure to the following
enterprise risks as defined in the Assessment:
• Market Volatility: Ginnie Mae could lack the ability to effectively respond to changing
market conditions, resulting in Issuer financial and operational strains.
• Issuer Liquidity: Financial Institutions could face liquidity constraints, resulting in lenders
making fewer loans at less attractive rates and increased Issuer defaults and
extinguishments.
29-3
GAD 47-463 05/03/2022
203
MORTGAGE-BACKED SECURITIES PROGRAM
A failure to ensure an adequate level of commitment authority carries the risk of creating market
instability and distorting decisions that affect credit availability for the Federal mortgage
programs. The 2023 Budget will enable Ginnie Mae to continue its practice of making commitment
authority available to issuers in good standing at the levels they request, thereby, fulfilling its
mission and maintaining support for low-cost homeownership and housing opportunities for
Americans, including Veterans, across the nation.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
General Provisions
The 2023 President's Budget proposes the following new general provision:
Ginnie Mae Securitization of HFA Risk-Share loans: Ginnie Mae currently lacks the
authority to securitize multifamily housing loans insured under paragraph (6) of section 542
(c) of the Housing and Community Development Act of 1992 (12 U.S.C l 715z-22(c).
Securitization capability for this multifamily housing program would permanently address
the critical need for a stable and low-cost source of capital and enhanced market liquidity for
this form of affordable housing. The use of the Federal Financing Bank (FFB) for "Ginnie-
like" financing of HFA risk-share loans is temporary and will expire in 2024. This provision
is requested to authorize Ginnie Mae to replace reliance on the FFB for liquidity in the Risk
Share program in future years. (2023 President's Budget, Sec. 230).
The 2023 President's Budget re-proposes the following general provisions that were enacted in the
2021 appropriations bill:
HUD Corporation Expenditures: This provision is an authorization by which the Congress
implements its responsibilities under section 104 of the Government Corporations Control
Act (31 U.S.C. 9104), which is necessary to carry out the programs set forth in Ginnie Mae's
budget for the coming year. (2023 President's Budget, Sec. 205)
Prohibition on Insuring Mortgages Subject to Eminent Domain: Prohibits HUD from
guaranteeing mortgages or mortgage-backed securities that refinance or otherwise replace
mortgages that have been subject to eminent domain. (2023 President's Budget, Sec. 217)
These provisions are described further in the "Explanation of General Provisions" section.
Legislative Proposals
The 2023 Budget supports the following legislative proposal and will seek changes through the
authorization process:
Administrative Expenses Fiscal Year Limitations: The Budget seeks to permanently authorize the
provision that makes limitations on administrative expenses inapplicable to certain expenditures of
29-4
GAD 47-463 05/03/2022
204
MORTGAGE-BACKED SECURITIES PROGRAM
Ginnie Mae, including legal services contracts and the expenses of carrying out its programmatic
duties. This provision ensures that administrative expenses provided in annual appropriations bills
does not preclude Ginnie Mae's reliance upon its permanent, indefinite appropriation in Section 1 of
the National Housing Act for essential operating funds.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
New commitments to issue guarantees to carry out the purposes of section 306 of the National Housing
Act, as amended (12 U.S.C. 1721(g)), shall not exceed $900,000,000,000, to remain available until
September 30, 2024: Provided, That $42,400,000, to remain available until September 30, 2024, to be
derived from fees credited as offsetting collections to this account, including balances of fees collected
and credited in prior fiscal years, shall be available for necessary salaries and expenses of the Office of
Government National Mortgage Association: Provided further, That receipts from Commitment and
Multiclass fees collected pursuant to title 111 of the National Housing Act (12 U.S.C. 1716 et seq.),
shall be credited as offsetting collections to this account.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
29-5
GAD 47-463 05/03/2022
205
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Government National Mortgage Association
SALARIES AND EXPENSES..
(Dollars in Thousands)
Personnel Services: $30,788 $5,735 $33,50() $39,235 $42,400 $42,400
Non-Personnel Services:
Total, Non-Personnel
Services
Working Capital Fund
Carryover 5,735
Grand Total $36,523 $5,735 $33,500 $39,235 $42,400 $42,400
FTEs 154 28 163 191 198 198
'Includes 2020 Carryover
tt2021 and 2022 exclude x-year S&E ($3 million earned in each year). The 2023 Budget does not request x-year S&E funds.
PROGRAM PURPOSE
The Government National Mortgage Association (Ginnie Mae) is a revenue-generating government-
owned corporation chartered to conduct commercial operations for a public purpose. Its operations
are integral to the Nation's housing finance system and its mission is to bring low-cost domestic and
global capital into that market. Ginnie Mae fulfills its mission by providing a mortgage-backed
securities (MBS) guarantee, which provides the liquidity that keeps funds flowing to lenders that
originate loans under the Federal Housing Administration (FHA), Veterans Affairs (VA), Rural
Housing Services (RHS) and Public and Indian Housing (PIH) programs.
BUDGET OVERVIEW
The 2023 President's Budget requests $42.4 million for Ginnie Mae, which is $8.9 million above the
2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of $42.4
million, which is $3.2 million above 2022 total funding.
Ginnie Mae's core functions surround its guarantee to investors of timely payment of principal and
interest on MBS issued under Ginnie Mae's program. These core functions include the key
operational activities of establishing requirements for the MBS program, approving and monitoring
issuers and servicers, maintaining the infrastructure through which MBS are issued, provide loan-
level information about pools to investors and analysts, remit principal and interest to investors, and
support multiclass securities formed from MBS.
Personnel Services (PS)
The Budget assumes $42.4 million for Ginnie Mae personnel services (PS), $3.2 million above 2022
total funding. This funding will support 198 full-time equivalents (FTEs), seven FTEs above the
2022 total level. The 2023 PS request will support the annualized costs of hiring projected in 2022
and additional hiring planned in 2023. Funding also supports the proposed 4.6 percent pay raise.
The amount requested in the President's Budget also supports staffing for the implementation of
essential risk management and technology platform improvements, as well as new program
30-1
GAD 47-463 05/03/2022
206
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
initiatives reflecting administration priorities, as described further under the "Key Operational
Initiatives" section.
Non-Personnel Services (NPS)
Ginnie Mae intends to support its 2023 Non-Personnel Services (NPS) requirements in travel,
training, contracts, and supplies using balances of contingent spending authority from offsetting
collections earned in the Ginnie Mae S&E x-year account. The Budget does not request new x-year
funds in 2023. The requested two-year funds in combination with carryover ofx-year funds is
sufficient to cover Ginnie Mae's S&E needs in 2023.
Working Capital Fund (WCF)
Ginnie Mae intends to support its 2023 WCF requirements using balances of contingent spending
authority from offsetting collections earned in the Ginnie Mae S&E x-year account.
KEY OPERATIONAL INITIATIVES
Ginnie Mae will utilize the entire two-year S&E appropriations (spending authority from offsetting
collections) for PS, and pay for NPS, Term PS and WCF expenses from carryover of S&E x-year
funding. Below is a summary of strategic staffing objectives.
• $39.2 million - Upholding Current Responsibilities (Continuance S&E):
Ginnie Mae's core mission is in direct support of the agency's strategic goals to: Support
Underserved Communities; Ensure Access to and Increase the Production of Affordable
Housing; Promote Homeownership; and Advance Sustainable Communities. The Budget
provides $39.2 million to support the 184 FTEs planned for the start of 2023. The funding
will enable Ginnie Mae to support its core functions surrounding its guarantee to investors
of timely payment of principal and interest on MBS issued under Ginnie Mae's program.
These core functions link the U.S. housing market to the global capital markets, thus
providing low-cost financing for federal housing programs; minimize the disruption of the
pandemic and support the related forbearance and loss mitigation efforts of our partner
government mortgage insurance agencies; and provide relief to mortgage servicers
struggling with the impact of natural disasters and other market conditions.
The funding will support the planned permanent staff for the start of year and considers
expected annual attrition.
• $1.3 million - Managing Risks <Risk S&E):
The changing operating environment continues to pressure Ginnie Mae core functions and
increase vulnerabilities and exposure to enterprise risk (including risks that relate to use of
contracted services). In alignment with the Department's strategic goal to Strengthen HUD's
Internal Capacity, the Budget would support the hiring of essential positions to enhance
Ginnie Mae's staffing capabilities to manage these risks, specifically in the domains of
Cybersecurity, Counterparty Risk and Climate Change Modeling, and Oversight and
Compliance (including of contracted services). This would allow Ginnie Mae to continue to
develop its programs and infrastructure to enable resiliency and readiness to respond in the
event of cyber-attacks, single or multiple issuer failures, or securitization platform
degradation or interruption - these needs have increased, such as through the Executive
Order on Improving the Nation's Cybersecurity and cannot be met with existing staffing
levels.
30-2
GAD 47-463 05/03/2022
207
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
The Budget provides $1.3 million of support to enable Ginnie Mae to hire approximately
six FTEs to address high-priority needs relating to cybersecurity risk, counterparty and
climate change risk modeling, and risk in procurement.
• $1.9 million • Program and Platform Improvement:
Ginnie Mae has already embarked on a program of substantial improvements to its
securitization platform infrastructure, and furthermore has now been committed to
enhanced mission responsibilities in connection with Departmental and Administration
priorities - both needs, reflected in the HUD 2022-2026 Strategic Plan, will require dedicated
staffing that is not currently provided for.
The securitization platform is now being transitioned to the cloud and re-engineered to
support increased digitalization (such as through expansion of the pilot program supporting
the use of eMortgages as security collateral). In addition, Ginnie Mae must upgrade its data
capabilities to support increased levels of market disclosure that have value from an
Environmental, Social and Governance (ESG) standpoint - this is an important tool for
directing capital to needed areas. These initiatives carry with them responsibilities that
require dedicated resources that Ginnie Mae does not currently have.
The 2022 - 2026 HUD Strategic Plan explicitly directs Ginnie Mae to pursue new programs
and security products to reach communities that are currently not being adequately served
by the government's housing finance program. While early-stage explorations of
opportunities are well underway, the work involved in full development and implementation
of the resulting improvements will be significant and cannot be met through existing
resources.
An example of this is supporting the creation of affordable housing supply through the
transition of the FHA Section 542(c) Housing Finance Agency (HFA) Risk Sharing Program
so that it can be financed through the Ginnie Mae MBS program as a means of ensuring
reliable liquidity. This Administration priority will require not just that the prohibition of
Ginnie Mae securitization be lifted (see General Provisions Section 230), but that Ginnie Mae
be equipped to support the participation of HFA issuers in new and different ways.
The Budget provides $1.9 million of support to enable Ginnie Mae to provide eight FTEs for
these program improvements that have been deemed central to HUD's agenda in the years
ahead.
30-3
GAD 47-463 05/03/2022
208
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Policy Development and Research
Research and Technology
SUMMARY OF RESOURCES
(Dollars in Thousands)
2022 Annualized CR 47,718 97,600
2023 Presidents Budget 145,000 41,000 186,000 108,000 127,000
Change tom 2022 40,000 (6,718) 33,282 (3,718) 29,400
al 2021 Enacted includes $3 million transferred from Traasuiy for Technical Assistance for the Emergency Rental Assistance program.
bl 2021 Carryover includes $805 thousand transferred from Department of Justice for BJA Pay for Success and $7.2 million in prior year recaptures.
c/ 2022 Cariyover excludes $2 million in anticipated recapturas.
di 2023 Carryover includes $41 million anticipated carryover and excludes $2 million in anticipated recapturas.
PROGRAM PURPOSE
The Research and Technology (R&T) account, administered by the Office of Policy Development and
Research (PD&R), provides fundamental evidence to support the mission of the Department through
policy analysis, research, surveys, and program evaluations, as authorized in Title V of the Housing
and Urban Development Act of 1970, as amended. R&T funds the research and evaluation function
and leverages it through data infrastructure development, information management, and technical
assistance. PD&R's work enables the Secretary, the Congress, and principal staff at HUD and other
agencies to make informed decisions on budget and legislative proposals and to strengthen housing
and community development policy. In addition to sustaining Core R&T data collection and research
dissemination, the requested level reflects new priority research identified in HUD's 2022 - 2026
Learning Agenda. Technical assistance provided through the R&T account helps improve
implementation of most of HUD's existing programs, as well as launching new programs and
program expansions so HUD's partners and customers have the knowledge, skills, tools, capacity,
and systems needed to successfully implement HUD programs and be effective stewards of Federal
funding. The 2023 Budget provides increased support for agency-wide technical assistance as this
account is the only source of TA resources for many HUD programs.
BUDGET OVERVIEW
The 2023 President's Budget requests $145 million for Research and Technology, which is
$40 million more than the 2022 annualized CR level. The requested funding level for R&T provides
support for three critical functions with growing importance:
1. Core R&T includes up to $70 million to support the American Housing Survey and other
national surveys, knowledge management, data acquisition, research dissemination,
building technology, and public-private research;
2. Research. Evaluation, and Demonstrations includes up to $25 million to support
experimental demonstrations of innovative program concepts, evaluations of current
programs, and other policy-focused research; and
3. Technical Assistance includes no less than $50 million to ensure that HUD program
partners and practitioners have access to research-informed guidance in effective
31-1
GAD 47-463 05/03/2022
209
RESEARCH AND TECHNOLOGY
practice for better accountability, efficiency, and outcomes for all of HUD's programs
and customers.
The requested amount for R&T will enable PD&R to address priority research needs by successfully
completing evaluations of ongoing program demonstrations, implementing the HUD Learning
Agenda more fully, and strengthening systematic evidence-building for the Department as
envisioned by the Foundations for Evidence-Based Policymaking Act of 2018 ("Evidence Act"). R&T
investments are a cornerstone of an increasingly robust internal institutional capacity to accomplish
HUD's mission and leverage diverse external partnerships.
Housing-related challenges can trigger significant mental health distress. Resources available to the
Department for technical assistance, as well as any grant amounts available for a grantee's own
training efforts, will be used to support HUD's department-wide effort to reduce the impacts of
housing-related challenges on mental and emotional well-being and improve the experience of the
Department's customers. HUD will coordinate validated, evidence-based training for front-line
housing professionals on the signs and symptoms of emotional distress and mental health
challenges. This training will help housing professionals connect customers who are experiencing
emotional distress with appropriate local resources.
JUSTIFICATION
Core Research and Technology
Core R&T requires the largest share ofR&T resources, with a request ofup to $70 million for 2023,
and comprises three components that are each described below: Housing Data Infrastructure;
Knowledge Management, Dissemination, and Outreach; and Technical Expertise and Innovation.
The increase of $11.0 million in the 2023 Budget for Core R&T above the 2022 annualized CR level is
needed to fund higher survey costs and to increase funding for data acquisition and housing
technology research. The Core R&T budget also continues funding for Knowledge
Management/HUDUSER, housing finance research, research partnerships with Historically Black
Colleges and Universities (HBCUs), and innovation events.
Core R&T makes significant contributions to Presidential priorities. Generating reliable evidence
about market conditions helps document the needs ofunderserved communities and inform better
policy to promote homeownership and the production of affordable housing. Housing equity is
advanced by investing in research collaborations with HBCUs that are engaged in their communities
and in underserved communities where they have a long-standing tradition of providing capacity-
building and program supports; generating and disseminating data on the incidence and
demographics of housing instability; and investing in housing technology innovations that improve
affordable housing choices by supporting greater durability, resilience, and energy efficiency.
Housing Data Infrastructure: The largest-component of Core R&T is support for the surveys that
constitute the backbone of the nation's housing data infrastructure. Reliable and well-structured
housing survey datasets inform policymakers about homeowner and rental units, HUD-assisted and
unassisted populations, and the nature of affordable housing problems. These data sources are
widely used within the private sector and are essential for an efficient housing market-which in
the fourth quarter of 2021 totaled $2.8 trillion of housing and utilities consumption and $1.1 trillion
31-2
GAD 47-463 05/03/2022
210
RESEARCH AND TECHNOLOGY
of residential fixed investment, together accounting for 16.4 percent of gross domestic product. 1 The
largest of these data sources is the American Housing Survey (AHS). Information from the biennial
AHS covers the nation's housing stock, housing finance, and characteristics of markets,
neighborhoods, and occupants, and supports national, regional, and metropolitan area estimates.
Other surveys funded under Core R&T provide important data necessary to monitor housing needs,
housing finance topics, and local housing market conditions. These surveys include the Survey of
Construction (SOC), the Survey of Market Absorption of Apartments (SOMA), the Manufactured
Homes Survey (MHS), and the Rental Housing Finance Survey (RHFS). In addition, funding will
support other timely aI).d innovative surveys such as the Census Bureau's Household Pulse Survey,
which has provided important insights into housing stability and eviction and foreclosure risk over
the course of the coronavirus pandemic.
Housing Data Infrastructure also includes the acquisition of private sector data, and other data such
as Low-Income Housing Tax Credit and U.S. Postal Service vacancy data, that are used in PD&R
research and for numerous policy-relevant purposes. Important information technology systems
supported by the separate IT account that are managed and used by PD&R staff to make our
research and data analysis possible are the Policy Analysis and Research Information System
(PARIS) and the Enterprise Geographic Information System (eGIS) systems, as well as the Geocode
Service Center (GSC) system that provides shared services for cross-agency missions requiring
spatially enhanced data.
HUD's survey activities are overseen by HUD's Statistical Official, who is also PD&R's Deputy
Assistant Secretary for Economic Affairs. PD&R's staff expertise leverages the housing data assets
by facilitating linkage with administrative data and external surveys and by conducting analysis to
provide key program parameters such as income limits and fair market rents and to inform key
policy initiatives. PD&R's Office of the Chief Data Officer (OCDO) is strengthening HUD's data
governance, enhancing privacy protections, and generating open data. OCDO is establishing
structures, identifying stakeholders, defining policies and processes that are aligning data
governance with how HUD does business. PD&R is also engaged in numerous partnerships with
Federal agencies to link and analyze complementary administrative data-activities that greatly
enhance the value of these public investments.
Knowledge Management, Dissemination, and Outreach: The second component of Core R&T
supports knowledge management, a multidisciplinary effort to ensure that knowledge is created,
organized, and shared effectively to advance HUD's mission. It supports the dissemination of
research to inform evidence-based policy and ensure equitable access to knowledge, as well as the
convening of stakeholders for shared learning opportunities. Key beneficiaries of knowledge
management activities include HUD program staff, HUD grantees, researchers and policy analysts,
and policy makers at all levels-local, state, national, and international. Along with formal research
reports and the Cityscape journal, several shorter-format periodicals such as U.S. Housing Market
Conditions, The Edge, and Evidence Matters make data and research freely accessible to broad
audiences. The Comprehensive Housing Market Analyses produced by PD&R economists provide in-
depth looks at economic, demographic, and housing inventory trends of specific housing markets to
guide builders, lenders, and others. PD&R makes available more than 10,000 research reports,
articles, books and data sources; during fiscal year 2021, users downloaded an average of 827,000
files per month from the HUD USER.gov research portal. In addition to providing new research and
data, PD&R will continue to scan historical reports and research from its library and make them
available for download on HUDUSER.gov.
1 Annual averages of seasonally adjusted quarterly data from the Federal Reserve Bank of St. Louis,
(https://fred.stlouisfed.org/).
31-3
GAD 47-463 05/03/2022
211
RESEARCH AND TECHNOLOGY
Technical Expertise and Innovation: Core R&T also supports building technology research and
dissemination of information on new technologies; housing finance research, including analysis that
reduces risk to the FHA Mutual Mortgage Insurance Fund and supports housing finance reform
discussion; and the Research Partnerships program that complements HUD's direct research efforts
by providing matching funds for external researchers who present unique research opportunities.
Through the Research Partnerships program, HUD encourages support for research conducted by
HBCUs and Minority Serving Institutions (MSis), helping to advance equity in funding for housing
research. Research Partnerships support projects on topics that address the Department's goals and
that draw on novel research approaches, including big data analytics, machine learning, and
artificial intelligence. For example, an ongoing Research Partnerships study will produce a novel set
of comprehensive climate vulnerability and resilience capacity indexes for enhancing urban recovery
in Detroit and Cincinnati, two major Midwestern cities at high future climate risk. This project
advances HUD's goal of advancing sustainable communities. Research Partnerships with HBCU s
and MSis are advancing housing technology as well as understanding of challenges facing
underserved populations.
Also within Core R&T are funds for innovation activities such as the Innovative Housing Showcase
on the National Mall. Stakeholders for these efforts include HUD program offices, Federal agencies,
state and local policy makers, researchers and practitioners, and the housing industry.
Research, Evaluation, and Demonstrations
R&T funding of up to $25 million for Research, Evaluation, and Demonstrations (RED) will allow
PD&R to continue existing multi-year evaluations of programs and initiatives that advance
Departmental priorities and to conduct new evaluations, demonstrations, and policy-focused
research that respond to Congressional directives, address Departmental priorities, and advance
strategic evidence-building priorities.
PD&R's discretionary research and evaluation is guided by HUD's 2022-2026 Learning Agenda, a
part of HUD's Strategic Plan which provides a long-term framework for evidence-building through
research, data collection, and data-driven policy analysis. PD&R develops the Learning Agenda by
consulting with stakeholders to ensure that the research function is forward-looking, systematic,
and well-structured to take advantage of HUD's comparative advantages. The priority research
questions that form the core of the Learning Agenda are addressed with preliminary research
proposals.
The R&T funding will allow HUD to continue work on three critical multi-year research projects:
the Housing Choice Voucher Mobility Demonstration, the Moving to Work (MTW) Demonstration,
and the HUD-Department of Justice Pay for Success Permanent Supportive Housing
Demonstration. Together, these research efforts will produce rigorous evidence to support program
and policy decisions for HUD's core rental assistance and homelessness assistance programs,
including decisions about how best to support asset-building among HUD-assisted households.
HUD will work with the Congress to identify the specific new research and evaluation projects to be
supported by the 2023 Budget requests. Based on the Learning Agenda, these could include research
on land use policies and other regulatory factors and their effect on rents and production of
affordable rental units; research into supporting health among assisted households, including
maternal and child health in HUD's homelessness programs; a study of the effectiveness of
homeowner rehab programs at improving individual quality of life and neighborhood quality; a study
of the housing protections provided under the Violence Against Women Act 01AWA) targeting
assistance to victims of domestic violence, dating violence, sexual assault and stalking; an evaluation
of the long-term outcomes of the Section 811 Housing for Persons with Disabilities program; and
31-4
GAD 47-463 05/03/2022
212
RESEARCH AND TECHNOLOGY
studies that build evidence on strategies for increasing the supply of affordable and accessible
housing. There are also important priorities from the 2022 Budget related to evaluating Federal
efforts to provide emergency housing vouchers and rental assistance for eviction diversion that
remain critical priorities as HUD seeks to learn how to support underserved communities and
increase access to affordable housing. PD&R anticipates that up to $5 million of the requested RED
funding will be dedicated to climate-related research, which could include studies of opportunities to
mitigate the risk to HUD properties and HUD-assisted households from climate change and natural
disasters, evaluations of existing programs supporting recovery from and resilience to environmental
threats, and research on energy efficiency and environmental justice.
Technical Assistance
Funding of no less than $50 million for the Technical Assistance (TA) program will equip HUD's
partners and customers with the knowledge, skills, tools, capacity, and systems needed to
successfully implement HUD programs and be effective stewards of Federal funding. TA resources
provided through this account are the only source of TA funds for most programs at HUD. This
funding will allow HUD to address the extraordinary needs that continue to arise from the response
and recovery from the COVID-19 pandemic. It will also help grantees address challenges in
implementing regular HUD programs as grantee attention diverts to implementation of the influx in
pandemic response funding.
With this funding, HUD will provide more focused expertise to low- and moderate-income
communities to recover fully from the pandemic's effects and to build resilience to any future stresses
or shocks, including climate change and economic downturns. HUD grantees will need significant
support to build their capacity to respond to the current situation and future crises as the saturation
of Federal program funding has created back logs and slow launch times indicating capacity issues
ripe for technical assistance. These TA resources will help build an understanding of various HUD
program flexibilities and efficient administration of HUD resources to enable more effective and
timely program implementation and spending.
In addition, every program area at HUD has identified a need to provide more in-depth
implementation support to grantees, including support to: build internal capacity around affordable
housing planning and development; develop program designs and operational policies and
procedures; improve grantees' understanding of how to combine Federal, state, and.local funding
sources in projects; effectively integrate Federal cross-cutting requirements such as Environmental
Review, Uniform Relocation Act, and the new Section 3 requirements into programs and projects;
and make effective use of new funding for high performance, energy-efficient and climate resilient
buildings.
In support of the President's strategy to address our national mental health crisis, TA funds will be
used to support a national effort to train housing counselors, housing-based services coordinators,
and Fair Housing grantee staff to recognize the signs of emotional distress and to connect residents
with mental health resources.
HUD will continue awarding TA funds on a competitive basis through a two-year (2022 and 2023)
Community Compass Notice of Funding Opportunity (NOFO) because of the balance it offers
between stability, flexibility, and administrative burden. HUD will also award a portion of these
funds through a separate TA NOFO to continue to support TA to units of general local government
experiencing long-term economic hardship, whose residents have been underserved due to limited
local capacity.
31-5
RL(ja) 47-463 05/03/2022
213
RESEARCH AND TECHNOLOGY
Information Technology
Within the Information Technology Fund, the Budget requests $2 million for Enterprise Geographic
Information System (eGIS) and $600 thousand for PD&R's Disaster Recovery Portal.
• Enterprise Geographic Information System (eGIS)
Program Pain Point
Decision makers at all levels rely on the examination of accurate data for the effective development
and implementation of data-driven housing policies. To that end, the Office of Policy Development
and Research (PD&R) conducts mission-critical analyses of priority housing and community
development issues while developing and maintaining the data required for that work. HUD's
Enterprise Geographic Information System (eGIS) program was established in PD&R to manage day
to day operations of the Department's shared geospatial business solution which satisfies the
common requirement for geospatial data and analytical capabilities in support of the Department's
mission and strategic objectives. When brought to bear, these data and tools allow personnel to
develop and apply actionable intelligence used to craft effective housing policies that are data-driven
and equitable in scope. Unfortunately, HUD's existing enterprise geospatial solution now falls short
of what is required to support robust housing and community analysis moving forward, and the
inability of public to interface with HUD offices and data sources.
The increasingly obsolete architecture of HUD's existing system limits the scale and scope of the
work that program analysts and policy developers engage in. In its current state, analysts cannot
effectively use the solution to collaborate with one another on mission-critical assignments that
require the examination of sensitive geospatial housing data. This limitation impedes the progress of
collaborative projects requiring robust geospatial study and remains a source of considerable
frustration for analysts and leadership alike.
Mission Benefits
Development, modernization, and enhancement (DME) ofHUD's geospatial business solution and
enterprise applications will significantly improve the Department's analytical capabilities allowing
for greater insights into national housing issues. Improved performance of the updated system will
provide expanded access to rich datasets which remain largely unavailable to Departmental staff
due to the shortcomings of the current platform. Modernization ofHUD's geospatial resources will
likewise improve the security posture of the system enabling HUD's program analysts and policy
developers to collaborate on assignments requiring the analysis of sensitive (i.e., PII) geospatial
data. The proposed upgrade will also empower HUD's program analysts to create analytical
reporting tools and standalone applications required by stakeholders, but which cannot currently be
developed due to existing system constraints. In addition, HUD's Community Planning and
Development (CPD) will benefit from this upgrade to support its mission objectives by modernizing
its customer self-service portal as well as improve its data collection and process automation
capabilities. The impacted systems for CPD that require updates are: CART (Community
Assessment Reporting System), HRL (Housing Resource Locator), TDAT (Tribal Directory
Assessment Tool), and CPD-MAPS (Community Planning & Development Maps).
In addition, improvements of the existing system architecture will obviate the current requirement
to maintain project-related geospatial data in a cloud-based software as a service (SaaS)
environment thus resulting in substantial cost savings for the Department. For example, proposed
improvements to HUD's existing geospatial solution include the implementation of a business facing
GIS user portal deployed within HUD's network. User activity will take place within HUD's network
thereby eliminating the cost required to accommodate collaborative work and data storage in a SasS
environment. Furthermore, enhanced capabilities for application development enabled by system
modernization will allow for the in-house creation of new applications. This eliminates the current
31-6
RL(ja) 47-463 05/03/2022
214
RESEARCH AND TECHNOLOGY
need to earmark funds for new application development as well as protracted contract negotiations
required to secure a vendor for such work.
Target Functionality
Modernization of the Department's geospatial business solution and enterprise applications will
result in:
• Substantial improvements to system security, performance, user access, and resource
management.
• Significantly enhanced capacity for analysis, collaboration, application development, and the
crafting of actionable intelligence.
• Considerable cost savings for the Department.
Projected Cost Savings
Improving HUD's existing geospatial business solution will allow the Department to realize
significant cost savings associated with the storage and maintenance of project-related geospatial
data. Moreover, improved capacity for in-house application development will eliminate the need to
engage in the prolonged contract negotiations and costs required to secure commercial vendors to
provide those services.
• Disaster Recovery Portal
Program Pain Point
HUD has·identified the need for a new process and tools for data sharing with the Federal
Emergency Management Agency (FEMA) and CDBG-DR grantees. This project will eliminate the
need for Individual Assistance Information Sharing Access Agreements (ISAAs) between FEMA and
HUD also with FEMA and CDBG-DR grantees as it will make that data readily available to grantees
through the Disaster Recovery Data Portal (DRDP) application. It will also eliminate the need for
requesting data from FEMA to perform the CDBG-DR allocations process when congressional funds
are appropriated.
While data being shared is similar, or in fact the same, it requires multiple resources from multiple
program areas within HUD and FEMA to request and process data sets. If the bidirectional data
exchange process was in a completed stage that data could be shared within HUD to multiple
resources/programs in a fashion designed to only make available, the necessary program data to only
those with a valid need to know and manage one data set for multiple users. This would also ensure
that all users are accessing the same data and would eliminate a misunderstanding of the data as
well and ensure all areas are utilizing the same data.
Mission Benefits
Real time data sharing enables decision making that is focused on elimination of duplication of
benefits, adequate assistance value to the customer, ability for multiple programs to utilize one
standard data set, correct and accurate FEMA data for HUD and HUD CDBG-DR grantee use,
enhanced disaster survivor support functions and enhance data security across multiple federal
agencies.
The Disaster Recovery Portal (DRDP) is within HUD's purview of the project and HUD will share
the 'new processes' aspect with FEMA. FEMA will solely fund their efforts' development needs.
In addition, DRDP will provide the ability to avoid duplication of benefits between FEMA, HUD, and
SBA assistance; the ability to identify geographical areas that are the most at risk due to high level
of unmet needs; the ability to complete early determination of projects at the CD BG-DR grantee level
that will provide/return disaster survivors to long term sustainable housing; and reduction in
duplication of efforts by multiple federal agencies in similar processes. This in turn will reduce the
need for multiple touch points with applicants that are related to similar cross agency processes.
31-7
RL(ja) 47-463 05/03/2022
215
RESEARCH AND TECHNOLOGY
Hence, this project has the capability to enhance the disaster survivor experience as mandated in the
Disaster Recovery Reform Act of 2018. HUD's cost to FEMA is approximately $415 thousand over
the next seven years, but will increase once any further development begins.
Target Functionality
DRDP will result in:
• Real time data sharing to enable informed and immediate decision making
• Ability for multiple programs to utilize one standard data set
• Provide correct, accurate, and the most up to data available data
Projected 02.st Savings
As this is a cross agency effort between FEMA and HUD therefore the overall federal benefit is
shown below:
DRDPD and the new processes will result in significant cost savings to both agencies. We estimate
that HUD grantees pay approximately $13 million average annual housing repair or rehabilitation
assistance payments to homeowners who are also reimbursed for these costs by FEMA. By providing
timely and automated matching and delivery of data, we estimate that at least one half of these
duplicate payments will be avoided and reduces the need for labor intensive and time-consuming
efforts to recover the excess payments. We also estimate that FEMA will save approximately $900
thousand annually.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Core R&T 59,050 10,267 69,317 60,736 59.050 8,581 67,631 70,000
Technical Assistance 32,800 29,875 62,675 35,551 32.B00 26.100 58,900 50.000
Research,
Evaluations and
Demonstrations 13,150 18,349 31.499 18.462 13,150 13,037 26.187 25,000
SJA Pay for
Success 805 805 804
TA for ERA 3,000 3,000 3.000
Total 108,000 59,296 167,296 118,553 105,000 47,718 152,718 145,000
al Research, Evaluations) and Demonstrations 2020 Carryover into 2021 lnc!udes $7.2 mi!l!on in prior year recaptures_
bl BJA Pay for Success 2020 Carryover into 2021 includes $805 thousand transferred from the Department of Justice,
31-8
RL(ja) 47-463 05/03/2022
216
RESEARCH AND TECHNOLOGY
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
General Provisions
PD&R re-proposes the following general provision that was enacted in the 2021 appropriations bill
and submitted for consideration in the 2022 President's Budget request:
Unobligated Research Funds:
This provision gives HUD the ability to re-obligate research funds left unexpended at the conclusion
of an agreement. (2023 President's Budget, Sec. 219).
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the proposed appropriation language listed below.
For contracts, grants, and necessary expenses of programs of research and studies relating to housing
and urban problems, not otherwise provided for, as authorized by title V of the Housing and Urban
Development Act of 1970 (12 U.S.C. 170lz-l et seq.), including carrying out the functions of the
Secretary of Housing and Urban Development under section l(a)(l)(i) of Reorganization Plan No. 2 of
1968, and for technical assistance, $145,000,000, to remain available until September 30, 2024:
Provided, That with respect to amounts made available under this heading, notwithstanding section
203 of this title, the Secretary may enter into cooperative agreements with philanthropic entities, other
Federal agencies, State or local governments and their agencies, Indian Tribes, tribally designated
housing entities, or colleges or universities for research projects: Provided further, That with respect to
the preceding proviso, such partners to the cooperative agreements shall contribute at least a 50
percent match toward the cost of the project: Provided further, That for non-competitive agreements
entered into in accordance with the preceding two provisos, the Secretary shall comply with section
2(b) of the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109-282, 31
U.S.C. note) in lieu of compliance with section 102(a)(4)(C) of the Department of Housing and Urban
Development Reform Act of 1989 (42 U.S.C. 3545(a)(4)(C)) with respect to documentation of award
decisions.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
31-9
RL(ja) 47-463 05/03/2022
217
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Fair Housing and Equal Opportunity (FHEO)
Fair Housing Programs
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 72,555 16,627 19,400 108,582 35,574 65,594
2022 Annualized CR 72,555 73,025 145,580 138,395 85,000
2023 President's Budget 86,000 9,185 95,185 90,185 85,000
Change from 2022 13,445 (63,840) (50,395) (48,211)
a/ 2021 Supplemental funding was appropriated through the American Rescue Plan, pursuant to Public Law 117-2.
bi 2022 and 2023 Total Resources excludes $1 million in estimated offsetting collections.
PROGRAM PURPOSE
The mission ofHUD's Office of Fair Housing and Equal Opportunity (FHEO) is "to eliminate housing
discrimination, promote economic opportunity, and achieve diverse, inclusive communities by
leading the nation in the enforcement, administration, development, and public understanding of
Federal fair housing policies and laws." FHEO funds four Fair Housing Programs: (1) the Fair
Housing Initiatives Program (FHIP); (2) the Fair Housing Assistance Program (FHAP), (3) the
Limited English Proficiency Initiative (LEPI); and (4) the National Fair Housing Training Academy
(NFHTA). In combination with the other work of FHEO, these programs aim to redress injuries to
victims, prevent housing discrimination, and eliminate segregation. The 2023 Budget supports the
Secretary's commitment to fair housing and provide resources to implement fair housing activities.
BUDGET OVERVIEW
The 2023 President's Budget for Fair Housing Programs is $86 million, which is $13.4 million more
than the 2022 annualized CR level. The Budget funds the following programs:
• Fair Housing Initiatives Program (FHIP): $56 million will support grants to private fair
housing organizations for enforcement, and education and outreach on fair housing rights
and responsibilities.
Fair Housing Assistance Program (FHAP): $26 million will support State and local civil
rights enforcement agencies with grants, training, and technical assistance.
Limited English Proficiency Initiative (LEPI): $1 million will support language assistance
services to the public and outreach efforts, including through grant opportunities to increase
awareness of fair housing and other HUD services to underserved communities.
• National Fair Housing Training Academy (NFHTA): $3 million will support national training
on fair housing investigation and conciliation techniques.
Housing-related challenges can trigger significant mental health distress. Training and technical
assistance resources available in this account will be used to support HUD's department-wide effort
to reduce the impacts of housing-related challenges on mental and emotional well-being and improve
the experience of the Department's customers. HUD will coordinate validated, evidence-based
training for front-line housing professionals on the signs and symptoms of emotional distress and
mental health challenges. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
32-1
RL(ja) 47-463 05/03/2022
218
FAIR HOUSING PROGRAMS
JUSTIFICATION
The 2023 President's Budget reflects the Department's goal of supporting the efforts of public and
private organizations to provide fair housing enforcement and education and outreach services in
addressing currently unmet needs. This budget makes an investment toward eradicating
discrimination based on race, national origin, and other protected characteristics from the housing
market. Despite decades of prohibitions against housing discrimination, audits of race and national
origin discrimination in the rental and sales market continue to show high occurrence nationwide.
Mortgage lenders still reject people of color and other protected class applicants almost twice as
often as White Americans. The Interagency Task Force on Property Appraisal and Valuation Equity
is engaged in efforts to identify, and provide recommendations for, biased appraisals in mortgage
transactions. Architects, engineers, and builders continue to design and construct housing that is
inaccessible for individuals with disabilities, and housing providers and lenders continue to deny
reasonable accommodations and modifications that may be necessary for individuals with
disabilities to have an equal opportunity to enjoy and use housing. Studies have found that same-
sex couples and transgender persons in communities across the country experience less favorable
treatment than their heterosexual and cisgender counterparts when seeking housing. 1 In the rental
market, many households face source of income discrimination by housing providers.
Fair Housing Initiatives Program (FHIP)
Many cities with large populations and many rural areas have no fair housing organizations. The
Department's efforts to reduce homeownership gaps based on race, color, national origin, and other
protected characteristics are frustrated by persistent systemic discrimination. To address these
major issues, the Department will continue to carry out a targeted, coordinated strategy for
enforcement, education, and outreach. FHIP supports critical fair housing enforcement work
throughout the United States, as well as education and outreach to the public about the rights of
individuals and families and the responsibilities of housing providers, lenders, and State and local
governments under the Fair Housing Act (the Act). The 2023 Budget level of $56 million for FHIP
will provide support for fair housing activities conducted by more than 128 private fair housing
organizations and represents a 21 percent increase above the 2021 enacted level. It will allow the
program to continue enforcement, education, and outreach activities nationwide at the 2022 enacted
level, and provide additional funding for activities to combat discrimination in the housing market.
There are three major initiatives under FHIP:
Private Enforcement Initiative: Under the Private Enforcement Initiative, continued funding is
needed for multi-year projects to carry out complaint intake, testing, investigative activities, and
legal fees for systemic investigations as well as investigations of individual complaints. The
Department will also increase funding under this initiative to ensure full enforcement for all claims
under the Act's purview. This includes funding to encourage and support all testing by FHIP
grantees designed to expose discrimination under the Act, including source of income testing
intended to reveal discriminatory effects. The funding will also support the increased demand on
FHIP enforcement services after clarification by HUD in February 2021 that the Act bars
discrimination based on sexual orientation and gender identity. This expansion in the protections
1 Friedman, Samantha, Angela &ynolds, Susan Scovill, Florence R. Brassier, Ron Campbell, and McKenzie
Ballou. (2013). An Estimate of Housing Discrimination Against Same-Sex Couples. U.S. Department of Housing
and Urban Development, Office of Policy Development and &search, and Levy, Diane, Doug Wissoker, Claudia
L. Aranda, Brent Howell, Rob Pittingolo, Sarale Sewell, and Rob Santos. (2017). A Paired Testing Pilot of
Housing Discrimination Against Same-Sex Couples and Transgender Individuals. The Urban Institute.
32-2
RL(ja) 47-463 05/03/2022
219
FAIR HOUSING PROGRAMS
and the scope of covered persons and prohibited practices can be expected to increase the demand on
FHIP education, outreach, and enforcement services. The increased funding will also bolster the
resources to encourage and support all testing by FHIP grantees designed to expose discrimination
under the Act.
Fair Housing Organization Initiative: The Budget requests funding for the Fair Housing
Organization Initiative for HUD to support the creation of at least one new fair housing enforcement
organization located in an unserved or underserved area. These are typically communities that lack
the presence of a private fair housing enforcement group and have a large and growing population
that is vulnerable to housing discrimination. HUD's efforts to create fair housing groups in unserved
and underserved areas co=enced in 1994, and the groups created through this initiative make a
notable difference in resolving fair housing complaints and most importantly, in increasing the
knowledge in the areas served of the fair housing rights of individuals and families and the
responsibilities of housing providers. The 2023 Budget will also provide funding to build the capacity
of existing organizations to enforce the rights granted under the Act.
Education and Outreach Initiative <EOD: Fair housing discrimination based on race or national
origin continues to be a persistent problem. To address these problems, the proposed 2023
Budget will support four specific components in the Education and Outreach Initiative.
• EOI National - National Media Component. Earlier studies of segregation found that
Black Americans and other members of protected classes who reported being subject to
discrimination in the housing market did not file complaints or take legal action. One of the
key reasons for the lack of action had to do with the belief that such actions would not yield
results or remedy the discrimination. The studies also showed that a lack of knowledge
about where or how to file a complaint was a factor in not filing a complaint. For the
Department to have a more enduring impact on reducing housing discrimination against
people of color and other protected classes, HUD plans to fund a national fair housing media
campaign to educate the American public regarding the forms of discrimination that can
occur in the rental, sales, mortgage, insurance, and appraisal markets. The campaign will
provide information on how to file a housing discrimination complaint through HUD.
• EOI General - Regional, Local, and Community-based Component Striving for
Housing Equity. This component addresses the issues that may arise when people
protected under the Act exercise their rights to expand housing choice. These issues include
but are not limited to opposition to affordable housing, harassment against families of color
who move into predominantly white residential neighborhoods and creating obstacles for
people with disabilities seeking to enforce their fair housing rights. HUD will fund local and
community-based projects to address these issues and promote equity and justice in housing,
consistent with the mission of the Act.
• Targeted Fair Housing Component. The Budget also requests funds for an initiative to
allocate EOI General awards for targeted fair housing education and outreach projects. Fair
housing organizations may use these funds for a variety of purposes, including projects to: (1)
develop law school curricula related to fair housing; (2) improve access to homeownership for
underserved populations that have historically been denied such opportunities; and (3)
advance community integration. These funds may also be used to provide complaint intake
services to underserved communities and underserved populations.
• Fair Housing Accessibility FIRST. This component reflects FHEO's continued dedication
to Fair Housing Accessibility Instruction, Resources, Support and Technical Guidance
(FIRST), which has been in operation for over 20 years. The contract provides training and
32-3
RL(ja) 47-463 05/03/2022
220
FAIR HOUSING PROGRAMS
technical guidance through interactive classroom and virtual training, a web-based resource
clearinghouse, and on-demand technical assistance for architects, builders, code officials,
advocates, and others on compliance with the design and construction requirements of the
Act. Fair Housing Accessibility FIRST is part of a broad effort to increase compliance with fair
housing design and construction requirements across the U.S., especially in disaster-impacted
areas. Fair Housing Accessibility FIRST conveys the importance of front-end planning for
compliance with the accessibility requirements prior to work on engineering, design, and
construction. FHEO proposes to fund the contract at $1 million in the 2023 budget,
expanding the scope of training to cover a comprehensive curriculum covering all Federal
accessibility standards and partnerships with architecture schools to increase industry
compliance, technical training, and services to disaster-impacted areas.
• EOI Sexual Orientation and Gender Identity Component. This budget includes
funding for fair housing organizations to update existing materials to reflect the recognition
that the Act bars discrimination based on sexual orientation and gender identity.
Fair Housing Initiatives Program (FHIP)
(Dollars in Thousands)
Private Enforcement
Initiative 36,350 36,350 41,300 4,950
Education Outreach
Initiative 7,405 7,405 10,000 2.595
Fair Housing
Or anization Initiative 2,000 2,000 3,700 1,700
450
FIRST 550 550 1,000
FHIP Total 46,305 46,305 56,000 9,695
Performance Indicators. FHEO measures success by ensuring: (1) sound financial management
techniques; (2) development of activities that allow for increases in quality and timeliness of
deliverables; (3) increases in the number of enforcement actions initiated; and (4) increases in the
number of people reached through education and outreach efforts. FHEO documents these outcomes
by requiring grantees to report quarterly and annual successes and positive outcomes, which are
used to gauge grantee performance against target goals. For example, in 2020, cases filed with HUD
involving a FHIP agency were less likely to be dismissed than other cases. FHIP-assisted complaints
resulted in higher conciliation rates (45.7 percent) than non-FHIP complaints (28.9 percent).
Fair Housing Assistance Program (FHAP)
FRAP is requesting $26 million, $1.6 million above the 2022 annualized CR level. This level will
allow the program to implement a 6.5 percent increase in case processing reimbursement rates
and administrative funds, which supports State and local FHAP agencies in covering costs
associated with increased salaries and expenses and competitive employee recruitment and
retention. FHAP agencies have reported high staff turnover due to retirements, retention
challenges, and inflationary strains that are likely to continue into 2023. The pandemic has also
exacerbated the resources available to our FRAP agency partners due to challenges in hiring and
reductions in State and local budgets. FHAP has not increased complaint processing
reimbursement rates since 2017 or the amount of administrative funds since 2018, both of which
32-4
RL(ja) 47-463 05/03/2022
221
FAIR HOUSING PROGRAMS
are the two main sources of FRAP funding provided to our agency partners.
The funding level in the 2023 Budget will allow FHAP to continue enforcement activities
nationwide and provide Capacity Building funds to admit at least two new agencies to the program,
pending review and certification. An increase in Partnership funds will provide resources for
agencies to enhance their mission by partnering with FRIP organizations, as well as other
community-based fair housing organizations to conduct fair housing testing, public education and
outreach, and training. The National Fair Housing Training Academy (NFRTA) no longer charges
FHAP staff to attend its training and has developed a largely virtual training platform that has
resulted in FHAP agencies incurring lower travel costs. Consequently, the Budget requests a
reduction in training funding.
FHAP agencies investigate approximately three-quarters of the administrative complaints filed
under the Fair Housing Act. Currently, there are 77 FHAP agencies in the program, including
35 States (including the District of Columbia) and 42 localities. FRAP agencies investigate fair
housing complaints to ensure compliance with fair housing laws and, where necessary, litigate
complaints to address violations. FRAP agencies plan and conduct investigations, interview parties
and witnesses, gather and analyze evidence, facilitate resolution, and render determinations.
Further, these agencies ensure compliance with settlement agreements and, where necessary,
litigate complaints to address violations. FRAP agencies also conduct education on fair housing
and fair lending at events throughout their jurisdictions. In 2021, FRAP agencies processed over
5,600 fair housing complaints and obtained monetary relief totaling more than $4.34 million in
addition to public interest relief such as adoption/revision of nondiscrimination policies, education
and outreach efforts, and fair housing training.
Performance Indicators, FHEO measures success by: (1) ensuring sound financial management
techniques; (2) monitoring each agency's ability to meet the nine performance standards and
program requirements at 24 CFR §§ 115.206 and 115.307; and (3) increasing the number of cases
processed by FRAP agencies each year and the number of cases FHAP agencies resolved through
recommendation of a legal charge of discrimination or a conciliation. FREO monitors agency
performance and conformity with regulatory requirements at least once every 24 months, and in
connection with recertification every five years.
Administrative Costs 4,740 4.740 5,090 350
Trainin 1.700 1.700 1,200 -500
SEE 100 100 100
Activities 800 800 1.500 700
360 360 360
FHAP Total 24,400 24,400 26,000 1,600
32-5
RL(ja) 47-463 05/03/2022
222
FAIi{ HOUSING PROGRAMS
Limited English Proficiency Initiative (LEPI)
The funding request for the Limited English Proficiency Initiative (LEPI) is $1 million. LEPl is a
direct initiative to ensure HUD's compliance with Executive Order 13166. This Order requires
Federal agencies to assess and address the needs of otherwise eligible persons seeking access to
federally funded programs and activities who, due to limited English proficiency (LEP), cannot
fully and equally participate in or benefit from those programs and activities. FHEO manages the
HUD-wide Language Assistance Services program. This program provides translation and
interpretation services for HUD-related and sponsored material, services, activities, and programs
at no cost to the public. The increased funding will allow the Department to continue providing
existing language assistance services to the public and expand upon these efforts through new
grant opportunities to increase awareness of fair housing and HUD services to underserved LEP
communities.
Performance Indicators. FHEO measures progress in the LEPI progtam by: (1) the number of
instances of multi-lingual document translations and (2) the number of instances of multi-lingual
interpretation. FHEO uses data from the contracted vendor's monthly and ad hoc reports to assess
the quantity and quality of the services rendered in the program. FHEO plans to evaluate the LEPI
grant program through the development of targeted outreach content and activities and
measurement of direct engagement with LEP populations.
limited English Proficiency Initiative (LEPI)
(Dollars in Thousands)
National Fair Housing Training Academy (NFHTA)
The funding request for the National Fair Housing Training Academy (NFHTA) is $3 million. In
202:3, NFHTA will continue work to support and build competencies grounded in the President's
Executive Orders on Advancing Racial Equity and Support for Underserved Communities and
Preventing and Combating Discrimination based on Gender Identity or Sexual Orientation. NFHTA
will move to the delivery of regional, in-person classroom training opportunities should HUD's
protocols and public health conditions allow for in person activities. The funding in the 2023 Budget
will be used to develop curricula and deliver regionalized advanced courses on fair lending and other
topics. In addition, the funding allows for training on appraisal biases, accessibility and architectural
design, cultural competency on systemic racism, investigating discrimination against the LGBTQ+
community, and the relevance and use of data. NFHTA will continue its partnership with subject
matter experts and will endeavor to create additional partnerships with industry professionals, such
as appraisers, mortgage bankers, Geographic Information System (GIS) mapping and data experts,
developers, and architects, to assist fair housing professionals in specializing in emerging novel and
complex fair housing issues. Additionally, NFHTA will work alongside other FHEO offices to engage
Historically Black Colleges and Universities (HBCUs); Hispanic-Serving and other Minority-Serving
Institutions of higher education; and the students of these institutions. This may include
collaboration to develop and deliver curricula and other content. NFHTA will also evaluate training
needs that stern from HUD's stakeholder listening sessions related to equity.
Performance Indicators. FHEO will evaluate the effectiveness of NFHTA's offerings through a
variety of short and long-term measures. FHEO has determined the core competencies needed to
32-6
RL(ja) 47-463 05/03/2022
223
FAJR HOUSING PROGRAMS
conduct quality, timely, and comprehensive investigations that include knowledge of fair housing
law and policies, data analysis, knowledge and application of investigative techniques, conciliation
and mediation techniques and application. In the short term, FHEO will evaluate the quality of the
training and increased knowledge. Over the long term, based on the core competencies, FHEO will
evaluate the gaps between current and needed proficiency levels to effectively support quality
investigations.
National Fair Housing Training Academy (NFHTA)
(Dollars in Thousands)
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Fair Housing
Initiatives Program
(FHIP) 46.305 10,241 56,546 10,315 46,305 46,199 92,504 56,000
Fair Housing
Assistance
Program (FHAP) 24,400 4,022 28,422 22,844 24,400 5,689 30,089 26,000
Limited English
Proficiency
lnitiativ e (LEPI) 350 211 561 315 350 237 587 1,000
National Fair
Housing Training
Academy
(NFHTA) 1,500 1,500 3,000 1,500 1,500 1,500 3,000 3,000
CARES Act - FHIP 654 654 600
American Rescue
Plan (ARP) - FHIP 19,400 19,400 19,400 19,400
Total 91,955 16,627 108,582 35,574 72,555 73,025 145,580 86,000
al FHAP 2021 canyover includes $128,840 in recaptures.
bf 2022 Total Resources excludes $1 ml!!ion in estimated offsetting collections,
LEGISLATNE PROPOSALS AND GENERAL PROVISIONS
General Provision
The 2023 President's Budget proposes to continue the following General Provision included in the
2021 appropriations bill:
32-7
RL(ja) 47-463 05/03/2022
224
FAIR HOUSING PROGRAMS
Fair Housing Act Investigations and Prosecutions: This section makes clear that the Department
will not use its authority under the Fair Housing Act to investigate or prosecute legal activity. (2023
President's Budget, Sec. 202)
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For contracts, grants, and other assistance, not otherwise provided for, as authorized by title VIII of
the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.), and section 561 of the Housing and Community
Development Act of 1987 (42 U.S.C. 3616a), $86,000,000, to remain available until September 30,
2024: Provided, That notwithstanding section 3302 of title 31, United States Code, the Secretary may
assess and collect fees to cover the costs of the Fair Housing Training Academy, and may use such
funds to develop on-line courses and provide such training: Provided further, That none of the funds
made available under this heading may be used to lobby the executive or legislative branches of the
Federal Government in connection with a specific contract, grant, or loan: Provided further, That of
the funds made available under this heading, $1,000,000 shall be available to the Secretary for the
creation and promotion of translated materials and other programs that support the assistance of
persons with limited English proficiency in utilizing the services provided by the Department of
Housing and Urban Development.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117- 43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
32-8
RL(ja) 47-463 05/03/2022
225
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Lead Hazard Control and Healthy Homes (OLHCHH)
Lead Hazard Reduction
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 360,000 132,650 492,650 122,100 90,213
2022 Annualized CR 360,000 370,548 730,548 712,735 279,000
2023 President's Budget 400,000 17,813 417,813 400,000 347,000
Change from 2022 40,000 (352,735) (312,735) (312,735) 68,000
PROGRAM PURPOSE
The Office of Lead Hazard Control and Healthy Homes (OLHCHH) program protects low-income
families, particularly those with children and other vulnerable populations, such as the elderly, from
exposures to lead from house paint and the lead-contaminated dust and soil it creates. Concurrently,
the program addresses multiple health hazards in these homes that contribute to such conditions as
asthma, cancer, and/or unintentional injuries. OLHCHH funds grants that reduce lead-based paint
hazards and other housing-related health and safety hazards, enforces lead-based paint regulations,
provides outreach and technical assistance, and funds technical studies to develop and evaluate cost•
effective methods to protect children and their families from health and safety hazards in the home.
OLHCHH also conducts demonstrations of programs that identify and remediate housing-related
hazards on their own and in collaboration with other HUD offices and/or other agencies. For 2023,
these demonstrations would include collaborating with other HUD offices and other agencies on the
Radon Testing and Mitigation Resident Safety Demonstration, and the Income Eligibility
Harmonization Demonstration. As further described in HUD's 2022-2026 strategic plan Goal 4, HUD
is committed to reducing exposure to health risks, environmental hazards, and substandard housing,
especially for low-income households and communities of color, who disproportionately impacted by
these threats.
BUDGET OVERVIEW
The 2023 President's Budget requests $400 million for OLHCHH, which is $40 million more than the
2022 annualized CR level.
• Lead Hazard Control Grants: $200 million in grants to make 16,700 unassisted low-income
older homes free of lead-based paint hazards.
• Lead Hazard Reduction Demonstration: $105 million in grants to make 8,800 unassisted low-
income older homes in jurisdictions with the most pre-1940 rental housing and highest rates
of childhood lead poisoning cases free of lead-based paint hazards.
• Healthy Homes Grants and Support:
o $28 million in Healthy Homes Supplements to the Lead-Based Paint Hazard Control
and Lead Hazard Reduction Demonstration grant programs, above, to mitigate
multiple health hazards (besides the lead-based paint hazards that those programs
address) that contribute to asthma, cancer, and unintentional injuries in 9,300 homes.
33-1
RL(ja) 47-463 05/03/2022
226
LEAD HAZARD REDUCTION
o $37 million in grants and contracts to identify and correct housing-related health and
safety hazards besides lead-based paint hazards, further the understanding of housing
conditions and their connections to resident health, identify effective interventions and
preventive practices, demonstrate the health and economic benefits of interventions,
conduct surveys, provide technical support and training, grant management and
evaluation tools, and manage and evaluate demonstration programs.
o $10 million in Aging in Place Modification grants to treat housing-related health and
safety hazards in low-income housing oflow-income seniors to help enable them to age
in place.
o $5 million in Healthy Homes Technical Studies grants, cooperative agreements, and
contracts, to develop detection, evaluation, and control technologies regarding housing-
related health and safety hazards other than lead-based paint hazards, and provide the
basis for the building, housing, scientific, and public health communities to address the
hazards more efficiently and broadly. The technical studies and assistance activities
include technical support and training, grant management and evaluation tools, and
interagency collaboration projects.
o $5 million in Healthy Homes and Weatherization Cooperation Demonstration grants to
demonstrate whether the coordination of Healthy Homes remediation activities with
weatherization activities achieves cost savings ·and better outcomes in improving the
safety and quality oflow-income homes.
o $5 million in Radon Testing and Mitigation Resident Safety Demonstration grants for
radon testing and mitigation in public housing units with radon levels at or above the
Environmental Protection Agency (EPA)'s radon action level, in areas identified by the
EPA or a state or local government as having high potential for elevated indoor radon
levels.
• Lead Technical Studies and Support: $5 million to develop detection, evaluation, and control
technologies regarding lead-based paint hazards, and provide the basis for the building,
housing, scientific, and public health co=unities to address the hazards more efficiently
and broadly. The technical studies and assistance activities are conducted through grants,
cooperative agreements, and contracts, and include technical support and training, grant
management and evaluation tools, and interagency collaboration projects.
JUSTIFICATION
OLHCHH's mission is to provide safe and healthy homes for at-risk families and children-a mission
with an inherent environmental justice, and racial and ethnic equity foundation-by supporting the
identification and mitigation of conditions that threaten the health of vulnerable residents. Through
its outreach and enforcement of HUD's Lead Safe Housing Rule, which covers lead safety in older
(pre-1978) assisted housing that is primarily occupied by low-income families, OLHCHH's programs
strengthen and broaden the Federal housing safety net for people in need. By making, at HUD's
expense, older housing of low-income families and housing in which low-income families will find
affordable in the future lead-safe and healthy, OLHCHH's programs advance housing equity as a
means to improving housing choices and greater economic opportunity. By conducting research and
translating the research into regulations, policy, guidance, and housing assistance program elements
used by other HUD program offices, OLHCHH programs strengthen HUD's internal institutional
capacity to deliver on mission. The Office's outreach and education programs, directed to housing
stakeholders and HUD program staff, on climate resiliency, environmental justice, and energy
efficiency, conducted on its own and in collaboration with other HUD offices and with other Federal
and non-Federal partners, promote these considerations across the housing sector.
33-2
RL(ja) 47-463 05/03/2022
227
LEAD HAZARD REDUCTION
OLHCHH coordinates disparate health and housing agendas, supports key research, targets
enforcement efforts, and provides tools to build sustainable local programs that mitigate housing-
related health hazards. OLHCHH assists states and local governments, both directly and through
collaboration with other HUD Offices, in remedying unsafe housing conditions and addressing the
acute shortage of decent and safe dwellings for low-income families. OLHCHH collaborates with non-
Federal partners, especially philanthropies, to create local, regional, and national partnerships in
both the childhood lead safety and the healthy homes arenas. OLHCHH has strong collaborations
with other Federal agencies, e.g., the Department of Health and Human Services, the EPA, and the
U.S. Department of Agriculture, as well as associated advisory committees and working groups, such
as its chairing of the Healthy Homes Working Group and of the Lead Exposure and Prevention
Advisory Committee, and its participation in the Children's Environmental Health Task Force
(including co-chairing its Lead Subcommittee), Asthma Disparities Working Group, Federal Bedbug
Working Group, and National Radon Action Plan Workgroup.
OLHCHH will continue reporting on grantee progress quarterly through HUD's Agency Priority
Goal reporting and annually through HUD's Annual Performance Report.
Lead Hazard Reduction
Lead paint in housing presents one of the largest threats to the health, safety, and future
productivity of America's children, with 29 million homes (44 percent of the homes built before 1978)
having significant lead-based paint hazards. OHCHH's two main programs are the Lead Hazard
Control and Lead Hazard Reduction Demonstration grant programs, which share the same goal to
make privately owned low-income older (pre-1978) housing lead-safe. (42 U.S.C. § 4862) The main
distinction between the two programs is that the Lead Hazard Reduction Demonstration grant
program (begun in 2003) focuses on jurisdictions with the most pre-1940 rental housing and highest
rates of childhood lead poisoning cases, while the original Lead Hazard Control program (begun in
1993) is open to a broader range of States, Native American Tribes, and communities. Funding is
projected to make the housing units enrolled in the programs lead-safe at an average of $12,000 per
unit.
HUD has rigorously evaluated the effectiveness of the programs, determining them effective in both
the pure outcome measure (i.e., reducing children's blood lead levels) and the long-term effectiveness
of the hazard controls. 1•2 The programs offer high returns for children's reduced healthcare costs and
later increased work productivity, i.e., $17-$221 per dollar controlling lead paint hazards. 3
Healthy Homes
The Healthy Homes program "goes beyond addressing lead-based paint hazards to cover other serious
threats to residents' health and safety. While grantees can use Lead Hazard Control and Reduction
Demonstration funds to remove or repair the lead paint, dust, or soil in a residence (as authorized by
Title X of the Housing and Community Development Act of 1992), those grants cannot address mold
clean up, smoke detector installation, lead-containing water supply component replacement, or other
unsafe or unhealthy conditions present in those same houses. For the sake of explicitness, the
appropriations language accordingly provides that the Healthy Homes program includes mitigating
1 Clark S, et al. Effects of HUD-supported lead hazard control interventions in housing on children's blood lead.
Env. Research. 111(2):301-311 (2011)
2 Dixon SL, et al. Window replacement and residential lead paint hazard control 12 years later. Env. Research.
113(1):14-20 (2012)
3 Gould E., Childhood Lead Poisoning: Conservative Estimates of the Social and Economic Benefits of Lead
Hazard Control. Env. Health Perspectives. 117(7):1162-7 (2009)
33-3
RL(ja) 47-463 05/03/2022
228
LEAD HAZARD REDUCTION
housing-related health and safety hazards in housing of low-income families. A major portion of the
Healthy Homes funding is for Healthy Homes Supplements to the Lead-Based Paint Hazard Control
and Lead Hazard Reduction Demonstration grants, which allow those grantees to address
residential hazards other than lead-based paint hazards in the same low-income older homes where
grantees are controlling lead-based paint hazards. The Healthy Homes Supplement approach is
efficient in that the outreach, recruitment, enrollment, and monitoring processes for getting work
done in the home have already been developed and implemented for the lead hazard control work, so
that smaller, incremental efforts are needed to assess for and mitigate hazards other than lead-
based paint. Funding for Healthy Homes Supplements is projected to make homes healthy at an
average cost of $3,000 per unit. To complement the use of Healthy Homes Supplements, another
major portion of the Healthy Homes funding is for the Healthy Homes Production Program to
address residential hazards that are not primarily lead-based paint hazards in housing of low-
income families. Healthy Homes programs yield high returns on investment. For example, reducing
household allergens that contribute to asthma and allergies yields $5.30 - $16.50 per dollar
invested, 4 and installing battery-operated smoke alarms yields $18 per dollar invested. 6
As described in the Budget Overview, the Healthy Homes Initiative funds grants for the Aging in
Place Modification program to treat housing-related health and safety hazards in housing oflow-
income seniors to help enable them to age in place, with at least half of the funds going to
substantially rural communities. Healthy Homes and Weatherization Cooperation Demonstration
grants will continue the demonstration of whether the coordination of Healthy Homes remediation
activities with weatherization activities achieves cost savings and better outcomes in improving the
safety and quality oflow-income homes.
The Healthy Homes Initiative also funds grants for radon testing and mitigation in public housing.
The continuation of this resident safety demonstration, initiated using 2021 funding, would allow
more public housing agencies to mitigate elevated radon levels and provide HUD with additional
implementation information for consideration of subsequent steps in addressing radon in public
housing. OLHCHH would continue to implement this demonstration in collaboration with the Office
of Public and Indian Housing, including development, award, and management of one or more
grants, contracts, or other funding vehicles, with each Office providing its technical, managerial, and
administrative skills to their respective portions of the demonstration.
The Healthy Homes program funds support services contracts for a grants management and
evaluation tool for the OLHCHH's lead and healthy homes grants, and for a regulatory information
public use tool. The Healthy Homes Grants Management System (HHGMS) uses the Salesforce
platform for providing grant application processing support, grantee document management, grant
progress tracking, quarterly progress report generation, and query responses for its grantee and
OLHCHH grant monitoring staff users. OLHCHH's Lead Compliance Advisor provides a robust
electronic regulatory implementation decision-support engine, available to the public via HUD's
website, and provides online advice about the requirements of the Lead Safe Housing Rule (24 CFR
part 35, subparts B - R) to owners and managers of HUD-assisted housing built before 1978 that are
covered by the rule. OLHCHH will continue to need Healthy Homes program funds to maintain
access to these services and to enhance and expand their functionality available to the Department
as business requirements or congressional requirements on their respective subject matters evolve.
4 Nurmagambetov TA et al., 2011. Economic Value of Home-Based, Multi-Trigger, Multicomponent
Interventions with an Environmental Focus for Reducing Asthma Morbidity: A Community Guide Systematic
Review. American Journal of Preventive Medicine. 41(2S1): 833--847. (2011)
• Children's Safety Network/Pacific Institute for Research and Evaluation. Injury Prevention: What Works? A
Summary of Cost-Outcome Analysis for Injury Prevention Programs (2014 Update)
33-4
RL(ja) 47-463 05/03/2022
229
LEAD HAZARD REDUC1'ION
Healthy Homes program funds also support contracts for national surveys, training, and public
education programs that help State, local, and nongovernmental agencies, housing industry
stakeholders, and the public to understand the issues; and the Healthy Homes Technical Studies
Grant Program (discussed below), which develops and evaluates effective interventions and
preventive practices to reduce or eliminate health and safety hazards in homes.
Technical Studies and Support
The 2023 Budget includes $10 million for Lead and Healthy Homes Technical Studies and Support
($5 million for Lead Technical Studies and $5 million from within the Healthy Homes Program). The
funding will continue HUD's significant progress furthering the national understanding of housing
conditions and their connections to resident health, which includes identifying effective interventions
and preventive practices and demonstrating the health benefits of interventions to reduce or
eliminate health and safety hazards in homes.
The technical studies conducted to date have helped develop detection, evaluation, and control
technologies regarding lead and other residential hazards and have provided the basis for the
building, housing, scientific, and public health communities to address the hazards more efficiently
and broadly. The technical studies and support activities are conducted through grants, cooperative
agreements, and contracts, and include technical assistance and training, grant management and
evaluation tools, and interagency collaboration projects.
As part of the technical studies funding, HUD is proposing to allow OLHCHH to transfer up to
$2 million of its funds for research to the Office of Policy Development and Research (PD&R). Part of
the Lead and/or Healthy Homes research funds can then be awarded as cooperative agreements
through PD&R, allowing those funds to be awarded in a faster and more targeted manner. If lead
and healthy homes technical studies are funded out of the Lead Hazard account, the funds must be
distributed via a Notice of Funding Opportunity (NOFO) with a fixed application submission date.
This prevents HUD from moving quickly to partner with specific researchers on projects they have
proposed that could benefit HUD's efforts to end lead poisoning and reduce housing-related health
and safety hazards.
Information Technology
Within the Information Technology Fund, the Budget requests $300 thousand for OLHCHH's Grants
Management System.
Program Pain Point
HHGMS requires perfective and adaptive maintenance to continue to conform to evolving
congressional and program office business requirements.
Mission Benefits
Healthy Homes Grant Management System (HHGMS) is a grants management system using the
Salesforce platform that provides application processing, document management, grant tracking,
and quarterly progress reporting for the Office of Lead Hazard Control and Healthy Homes
(OLHCHH) and grantee users. The OLHCHH will need support to continue using this system but
will require enhancements and expanded functionality.
Target Functionality
· • Upgrade and maintain an existing web-based system.
33-5
RL(ja) 47-463 05/03/2022
230
LEAD HAZARD R!Wl:CTION
• Perform system maintenance and operational support to enhance OLHCHH grant
application (pre-award cycles), and grants management and reporting systems (post-award
cycles).
P.1:gjected Cost Savings
Implementation of required enhancements and expanded functionality will yield savings of
grantee labor time of 10 percent, and OLHCHH government technical representatives and
managers labor time, 15 percent.
This translates into reducing fully loaded labor costs annually by $202 thousand for grantees
and $112 thousand for HUD staff, totaling $314 thousand annually.
• For grantees, this operationalizes as increased number of homes made lead safe and healthy
(vs. administrative costs); for OLHCHH, as capacity to monitor increased number of grants
within and outside ofHHGMS usage.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Justification.
Demonstration Programs
For 2023, OLHCHH would collaborate with other HUD offices and other agencies on two
demonstrations: the Radon Testing and Mitigation Resident Safety Demonstration, described in the
Healthy Homes section, above, and the Income Eligibility Harmonization Demonstration, described
in the Legislative Proposals and General Provisions section, below.
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Reduction Grant
Program 190,000 26,842 216,842 30,856 190,000 185,266 375,266 200,000
Technical Studies
and Assistance 5,000 4,180 9,180 4,398 5,000 5,501 10,501 5,000
Healthy Homes 60,000 37,628 97,628 29,926 60,000 67,701 127,701 75,000
Lead Hazard
Reduction
Demonstration
Program 95,000 95,000 46,920 95,000 48,080 143,080 105,000
Home Modification
Grant Program 10,000 10,000 10,000 10,000 10,000 10,000
Lead Hazard
Reduction
Neighborhood 64,000 64,000 64,000 64,000
Radon Teslng and
Mitigation Resident
Safety
Demonstration 5,000
Total 360,000 132,650 492,650 122,100 360,000 370,548 730,548 400,000
33-6
RL(ja) 47-463 05/03/2022
231
LEAD HAZARD REDUCTION
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
Income Eligibility Harmonization Demonstration: This demonstration, provides that, for determining
the eligibility of a family to be a beneficiary of an OLHCHH grant based on the family's income being
low, the OLHCHH's grantees may use income eligibility determinations made for other HUD
programs, or the Department of Energy's (DOE's) weatherization assistance program, the
Department of Health and Human Services' (HHS) low income home energy assistance program, or
the Department of Veterans Affairs' supportive services for veteran families program for such
families who are occupying permanent housing, without duplicating the income verification process.
The demonstration is derived from income eligibility harmonization work group discussions among
the agencies above. 6 Its results will be used to determine if and how to expand this approach to
additional programs. No additional costs are required and, as a result of the demonstration, grantee
and assisted housing owner costs are expected to be reduced, allowing more housing units to have
their hazards mitigated. This demonstration is being proposed for the first time. Stakeholders, which
are local jurisdictions and some States, are anticipated to support the proposal for business efficiency
reasons.
General Provisions
The 2023 President's Budget proposes the following new general provision:
Extension of disbursement deadlines: Certain grant programs of the OLHCHH have periods of
performance of 42 months. The pandemic has resu;lted in the reduced production oflead-safj:) and
healthy housing by the Office's 2019 grantees (which use private-sector contractors to perform the
evaluation, control, and clearance work), and the standard grant extension period under 2 CFR
200.308(e)(2) of up to 12 months (when justified for reasons not under the control of the grantee) is
not sufficient to allow grantees to meet their production performance goals for implementing their
grants as Congress had intended. Extensions of grants to allow expenditures beyond the five-year
period after the availability of funds (31 U.S.C. 1552) will allow the grantees to fully expend funds in
accordance with such intent. Specifically, funds previously made available through grants awarded
using fiscal year 2019 funds under the Lead Hazard Reduction and Lead Hazard Reduction
Demonstration accounts would remain available for the liquidation of valid obligations through the
end of fiscal year 2027. With funds having already been appropriated and obligated, and no grant
modifications other than period of performance being provided, no additional costs are required. This
proposal is being made for the first time. The grantees, which are local jurisdictions and some states,
are anticipated to support the proposal for business and mission reasons. With the current high
emphasis on lead safety in housing, children's health advocates and low-income family advocates, as
6The work group was created based on direction in H. Rept. 116-83, Energy and Water Development and
Related Agencies Appropriations Bill, 2020 (www.congress.gov/comn;essiona1-report/116th-congress/house-
report/83/l). Efforts in this field have yielded DOE's Program Notice 22-5, Expansion of Client Eligibility in the
Weatherization Assistance Program (WAP), December 8, 2021, allowing WAP use ofHUD's means-tested
programs' income qualifications (www.energy.gov/sites/defau!t/fi!es/2021-12/wpn-22-5.pdt), DOE's rule allowing
WAP use of HHS' Low Income Home Energy Assistance Program income qualifications (10 CFR 440.22(a)(3)),
and, for the OLHCHH's programs, Policy Guidance 2017-05, Income Verification Guidance, allowing their use of
Community Planning and Development programs,' and Housing Choice Voucher program's income eligibility
criteria
(www.hud.gov/sites/dfiles/HH/documents/PG 2017 05 Income Verification Guidance Revision Finalrv.pdt).
33-7
RL(ja) 47-463 05/03/2022
232
LEAD HAZARD REDUCTION
well as local and state governments and nonprofit organizations that rehabilitate older HUD-
assisted housing are anticipated to support the proposal. (2023 President's Budget, Sec. 233)
Legislative Proposals
The 2023 Budget supports the following legislative proposals, and will seek changes through the
authorization process rather than the appropriations process:
• An increased threshold for lead abatement under the Lead Safe Housing statute
(42 U.S.C. 4822(a)(l)) to reflect inflation since the 1992 enactment of that statute.
The lead abatement threshold is met when Federal rehabilitation assistance is greater than
the fixed amount of $25,000 per unit (42 U.S.C. 4822(a)(l), enacted under Section 1012 of the
Residential Lead-Based Paint Hazard Reduction Act of 1992 ("Title X'')). Inflation since the
1992 enactment of Title X (when the dollar threshold was established) means that a
rehabilitation project of just $12,500 at the time of enactment would cost, in 2023 over
$25,000. As a result, the abatement of units is required for projects with much less real-
dollar rehabilitation assistance than Congress intended. This can induce local funding
agencies to not rehabilitate many of the units they would have in previous years, leaving
them to continue exposing young children to avoidable health risk. To restore the real-world
meaning of the abatement threshold, adjusting the threshold for inflation is necessary. The
proposed statutory amendment would authorize the Secretary to, annually, use a publicly
available inflation index to determine the abatement threshold. No additional costs are
required because the proposal pertains to how underlying assistance awards will be used; no
additional assistance is being provided. This amendment has been proposed in several
previous years but not enacted. With the current high emphasis on lead safety in housing,
children's health advocates and low-income family advocates, as well as local and state
governments and nonprofit organizations that rehabilitate older HUD-assisted housing are
anticipated to support the proposal.
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriations language listed below.
LEAD HAZARD REDUCTION
(including transfer of funds)
For the Lead Hazard Reduction Program, as authorized by section 1011 of the Residential Lead-
Based Paint Hazard Reduction Act of 1992, and for related activities and assistance, $400,000,000, to
remain available until September 30, 2025, of which $85,000,000 shall be for the Healthy Homes
Initiative, pursuant to sections 501 and 502 of the Housing and Urban Development Act of 1970,
which shall include research, studies, testing, and demonstration efforts, including education and
outreach concerning lead-based paint poisoning and other housing-related diseases and hazards, and
mitigating housing-related health and safety hazards in housing of low-income families: Provided,
That for purposes of environmental review, pursuant to the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) and other provisions oflaw that further the purposes of such Act, a
grant under the Healthy Homes Initiative, or the Lead Technical Studies program, or other
demonstrations or programs under this heading or under prior appropriations Acts for such purposes
under this heading, shall be considered to be funds for a special project for purposes of section 305(c)
of the Multifamily Housing Property Disposition Reform Act of 1994: Provided further, That not less
than $105,000,000 of the amounts made available under this heading for the award of grants
pursuant to section 1011 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 shall be
provided to areas with the highest lead-based paint abatement needs: Provided further, That of the
33-8
RL(ja) 47-463 05/03/2022
233
LEAD HAZARD REDUCTION
amount made available for the Healthy Homes Initiative, $5,000,000 shall be for the implementation
of projects in up to five communities that are served by both the Healthy Homes Initiative and the
Department of Energy weatherization programs to demonstrate whether the coordination of Healthy
Homes remediation activities with weatherization activities achieves cost savings and better outcomes
in improving the safety and quality of homes: Provided further, That each applicant for a grant or
cooperative agreement under this heading shall certify adequate capacity that is acceptable to the
Secretary to carry out the proposed use of funds pursuant to a notice of funding availability: Provided
further, That of the amounts made available for the Healthy Homes Initiative, $10,000,000 shall be
for a program established by the Secretary to make grants to experienced non-profit organizations,
States, local governments, or public housing agencies for safety and functional home modification
repairs and renovations to meet the needs of low-income elderly homeowners to enable them to remain
in their primary residence: Provided further, That of the total amount made available under the
previous proviso, no less than $5,000,000 shall be available to meet such needs in communities with
substantial rural populations: Provided further, That amounts made available under this heading,
except for amounts in the previous two provisos, in this or prior appropriations Acts, still remaining
available, may be used for any purpose under this heading notwithstanding the purpose for which
such amounts were appropriated if a program competition is undersubscribed and there are other
program competitions under this heading that are oversubscribed: Provided further, That $5,000,000
of the amounts made available under this heading shall be for a radon testing and mitigation
resident safety demonstration program (the radon demonstration) in public housing: Provided
further, That the testing method, mitigation method, or action level used under the radon
demonstration shall be as specified by applicable state or local law, if such a law is more protective of
human health of the environment than the method or level specified by the Secretary: Provided
further, That the Secretary shall conduct a demonstration to harmonize income eligibility criteria for
grants under this heading in this and prior Acts with the income eligibility criteria of certain other
Federal programs: Provided further, That, for purposes of such demonstration, the Secretary may
establish income eligibility criteria for such grants using income eligibility criteria of any program
administered by the Secretary, the Department of Energy weatherization assistance program (42
U.S.C. 6851 et seq.), the Department of Health and Human Services low income home energy
assistance program (42 U.S.C. 8621 et seq.), and the Department of Veterans Affairs supportive
services for veteran families program (38 U.S.C. 2044): Provided further, That up to $2,000,000 of the
amounts made available under this heading may be transferred to the heading "Research and
Technology" for the purposes of conducting research and studies and for use in accordance with the
provisos under that heading for non-competitive agreements.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
33-9
RL(ja) 47-463 05/03/2022
234
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Salaries and Expenses Overview
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services:
Personnel Services 1,190,220 55,379 1,236,075 1,291,454 28,616 1,451,260 1,479,876
Common Distributable 7,141 200 9,050 9,250 12,500 12,500
Total, Personnel Services $1,492 376
$1,197,361 $55,579 $1,245,125 $1 300,704 $211,616 $1,463,760
Non-Personnel Services:
Travel 1,411 1,715 4,368 6,083 10,588 10,588
Transportation of Things 378 361 361 446 446
Rent and Utilities 124,490 17 123,801 123,818 128,168 128,168
Printing 609 16 912 928 1,384 1,384
Other Services/Contracts 112,708 47,112 90,865 137,977 2,792 137,884 140,676
Training 5,380 2,069 5,123 7,192 12,018 12,018
Supplies 563 243 552 795 1,854 1,854
Furniture and Equipment 1,698 10 5,883 5,893 6,647 6,647
Claims and Indemnities 802 50 720 770 768 768
Total, Non-Personnel
Services $248,039 $51,232 $232,585 $283,817 $2,792 $299,757 $302,549
Working Capital Fund 67,088 10,043 20,313 30,356 2,723 72,983 75,706
Carryover 116,854 34,131 34,131 2,000 2,000
Grand Total $1,838,500 $1,872 631
$1,629,342 $116,854 $1,532,154 $1649,008 $34,131
FTEs 7,317 314 7,249 7,563 149 8,177 8,326
'Includes 2020 Carryover.
'Tota~ in chart and associated narrative include GNMA and exclude OIG and Information Technology Fund. Totals in chart may not add due to rounding.
SALARIES AND EXPENSES OVERVIEW
HUD's operational infrasti·ucture related to people, processes, and technology remains a top priority
of the Department. Funding to support HUD's operations is essential to successfully meet the
demands of the continually increasing workload. The 2023 President's Budget continues to support
and expand on the investments proposed in 2022 in the areas of staffing and Information Technology
(IT) modernization to best manage and reduce risks associated with this growth.
The 2023 Budget requests $1.8 billion for HUD salaries and expenses (S&E), an increase of
$306 million from the 2022 Annualized Continuing Resolution (CR) leveL 1 The Budget reflects total
S&E (carryover and new authority) of $1.9 billion, which is $224 million above 2022 total funding.
HUD's mission is critical to achieving the President's vision to address our Nation's public health
1 The 2023 President's Budget includes $11.8 million, which was realigned from the Information Technology (IT)
Fund to support end-user IT devices and wireless support to be paid via the Working Capital Fund.
34-1
RL(ja) 47-463 05/03/2022
235
SALARIES AND EXPENSES OVERVIEW
and economic challenges, from the climate crisis and rising inequality to the longstanding systemic
challenges ofracial injustice. Investing in HUD's S&E will support HUD's ability to do its essential
work improving the quality of life for the American people.
Staffing
The 2023 President's Budget (with carryover) supports a total of 8,326 full time equivalents (FTEs).
While this reflects a significant increase in staffing over a 2022 annualized CR funding level, the
actual increase over HUD's 2022 Budget is a modest 141 FTEs, or less than a two percent increase.
The 2023 funding level seeks to maintain the staffing gains achieved in 2020 and 2021, in addition to
the Department's planned growth in 2022. HUD's recent successes in beginning to build back
staffing levels have been crucial to addressing the significant erosion of our ability to monitor
compliance on properties, loans, grants, public housing authorities, and other areas of responsibility,
as well as tackling the systemic issues inside the Department that occurred over the previous two
decades as the result of the steady decline in staffing.
However, this recent growth in staffing is only a start. Continued staff growth is essential to address
not only the Department's increasing workload but also emerging risks identified by the
Department's Enterprise Risk Management program. These risks reveal agency-wide exposures that
could prevent the agency from accomplishing its mission, vision, and program outcomes. In
particular, the declining staffmg numbers over the last two decades, if allowed to continue, would
place the Department in an increasingly vulnerable position for managing programmatic and
operational responsibilities and will further compromise disaster recovery readiness.
Using workforce succession strategies, the Department intends to ensure that additional staffmg
results in the right people allocated to the right jobs, provi.~ing the biggest impact toward achieving
HUD's priorities. The staffing increases achieved in 2023 will allow the Department to better and
more efficiently serve households and co=unities across the country, in addition to achieving the
Department's priorities.
• Supporting Underserved Co=unities: HUD will fortify support for underserved
communities and support equitable community development for all people.
• Ensuring Access to and Increase the Production of Affordable Housing: HUD will
ensure the housing demand is matched by adequate production of new homes and
equitable access to housing opportunities for all people.
• Promoting Homeownership: HUD will promote homeownership opportunities,
equitable access to credit for purchase and improvements, and wealth-building in
underserved communities.
• Advancing Sustainable Communities: HUD will advance sustainable communities
by strengthening climate resilience and energy efficiency, promoting environmental justice,
and recognizing housing's role as essential to health.
• Strengthening HUD's Internal Capacity: HUD will strengthen its internal capacity
and efficiency to better ensure delivery of HUD's mission.
The requested funding in 2023 also supports a cost-of-living increase of 4.6 percent.
Account Structure, Reorganizations and Realignments
The 2023 Budget proposes the following new reorganizations and realignments.
• The Office of Departmental Equal Employment Opportunity (OD EEO) is renamed the Office
of Equal Employment and Equity Advancement (OEEEA). The Diversity, Equity and
Inclusion programs are realigned to this office from the Office of the Chief Human Capital
34-2
RL(ja) 47-463 05/03/2022
236
SALARIES AND EXPENSES OVERVIEW
Officer (OCHCO). This realignment includes the position of Chief Diversity Officer and
creation of two divisions to better reflect these expanded responsibilities. These divisions are:
o The Equal Opportunity Support Services Division to perform Alternative Dispute
Resolution functions and provide administrative support services; and
o The Diversity, Equity, Inclusion, and Accessibility Division executes the functions
previously performed in the Office of Diversity and Inclusion within the OCHCO.
• Within the Office of Administration:
o Realigns the Disaster Management function from the Office of the Chief
Administrative Officer (OCAO) to the Office of the Deputy Secretary within the
Executive Offices.
o Realigns the Diversity Equity and Inclusion programs from OCHCO to the OEEEA.
o Creates a Deputy Assistant Secretary for Operations to oversee all administrative,
budgetary, and overhead functions for the OCAO, OCHCO, and the Office Chief
Procurement Officer (OCPO).
• Within the Office of the Chief Financial Officer (CFO), realigns the Grants Management and
Oversight Division from the Assistant Chief Financial Officer (ACFO) for Systems to the
ACFO for Budget.
• The Department proposes to move the Technical Assistance Division (TAD), which is
currently located in Community Planning and Development (CPD) Operations, Office of
Technical Assistance and Management to the Office of Policy Development and Research.
This realignment includes funding to support 24 FTE.
• CPD proposes to reorganize its structure to align functions properly, foster better
communication, effective succession planning, and employee engagement.
In addition to the new reorganizations and realignments listed above, the 2023 Budget reproposes
the following account structure change, reorganizations, and realignments previously identified in
the 2022 President's Budget:
• Establish an Assistant Secretary of Administration (ASA) which includes the I=ediate
Office of the Assistant Secretary for Administration and consolidates funding for the
following Administrative Support Offices: OCHCO, OCAO, and OCPO.
• Within the OCFO, a reorganization of the following is proposed:
o The ACFO for Accounting: Tbe CFO Accounting Center will be undergoing a
reorganization to better align functions, workload, and operational missions. The
proposed changes are required to balance workload, realign employee to supervisor
ratios, and improve operational efficiencies and service delivery due to the transition
to shared services. Tbe reorganization will include the dissolution of the Reports and
Control Division and integrating those duties with the Payments and Collections
Division. It will also encompass the renaming of various divisions and branches to
better reflect current functions.
o The ACFO for Budget: The ACFO for Budget has relied solely on contractor staff to
support the customer experience functions for the Department in 2020 and 2021. The
2022 Budget creates a Customer Experience Division reporting to the Director for
Performance Management and Customer Experience.
o The ACFO for Systems: The ACFO for Systems has solely used contract support to
meet Digital Accountability and Transparency Act (DATA Act) Reporting
Requirements over the past few years, with only one Federal staff managing the
work. In 2022, the OCFO proposes to begin transitioning contract support to Federal
staff. The creation of the Financial Data Reporting and Analysis Division will permit
34-3
RL(ja) 47-463 05/03/2022
237
SALARIES AND EXPENSES OVERVIEW
this transition from contractor resources to Federal staff, provide support for
reporting, audit, and data quality, as well as to meet additional regulatory financial
reporting such as the Grants Oversight and New Efficiency Act and the Grant
Reporting Efficiency and Agreements Transparency Act.
o The Office of the Chief Risk Officer (OCRO}: The OCFO requests to establish the
Office of the Chief Risk Officer in 2022. This office will include the Chief Risk Officer
(CRO) and four risk analysts. The CRO will report to the Deputy CFO. The CRO
provides executive-level management, leadership, direction, and oversight to the
Enterprise Risk Management Program. The OCRO will provide expertise to HUD by
identifying and advising on mitigation efforts regarding the most significant risks
facing HUD.
• The Office of Housing intends to restructure the Office of Risk Management and Regulatory
Affairs by removing the Office of Manufactured Housing and establishing this Office as a
standalone organization reporting directly to the Office of the Assistant Secretary for
Housing-FHA Commissioner.
• The Office of Administration intends to combine the Freedom of Information Act (FOIA) and
the Privacy Divisions with the Office of Digital Enterprise. The name of the newly formed
organization will be the Office of Government Information Management. Additionally, a new
office named the Office of Administrative Services is proposed in 2022. This Office would
include the Administrative Officer and support staff.
• CPD proposes to move the Disaster Recovery and Special Issues Division (DRSI), which is
currently located within the Office of Block Grant Programs to the Office of Grant Programs.
This reorganization would involve the following:
o Establish an Office of Disaster Recovery under CPD's Office of Grant Programs;
o Realign existing functions in the Disaster Recovery and Special Issues Division
(DRSI) to the Office of Disaster Recovery; and
o Realign the Office of Grant Programs' Coordinating Officer for Disaster Recovery and
its associated staff to CPD's Office of Disaster Recovery.
• Ginnie Mae proposes several organizational changes to its structure to better align functions,
workload, and operational missions. The changes proposed and outlined within Ginnie Mae's
congressional justification will provide improved operational efficiencies and program
support for all the affected offices.
• The Office of the Inspector General (OIG) proposes to realign the Planning, Performance,
Risk Management, and Engagement Office (PPRiME) Division within the Office of
Evaluation to create the office of the Chief Strategy Officer within the Immediate Office of
the Inspector General. This realignment will help to assist the IG with developing and
executing strategic plans and initiatives, centralize oversight strategy, manage OIG
organizational risk, and increase OIG quality assurance.
Working Capital Fund (WCF)
In 2023, two new business lines are being incorporated into the WCF: Printing Services and HR
Platform Licensing. In addition, a re-proposal for the incorporation ofHUD's 2022 new business line
for End-User Information Technology Devices and Wireless Support is also included in 2023.
Printing Services is comprised of leasing contracts for Multifunction Devices (MFDs), including
black/white and color MFDs in HUD's headquarters and field offices, large format and specialized
printing equipment used in HUD's Weaver Building Printing Shop, and the associated Federal FTE
and contractor support. Moving this service to the WCF will create opportunities to realize long-term
savings through more flexible contracting, increase customer visibility into costs, and provide for
expanded printing capabilities for WCF customers.
34-4
RL(ja) 47-463 05/03/2022
238
SALARIES AND EXPENSES OVERVIEW
HR Platform Licensing is comprised of the license costs for ServiceNow Human Resources Service
Delivery (HRSD). HUD plans on beginning implementation of the ServiceNow platform in 2022, with
an estimated go-live date near the end of 2023. The ServiceNow HRSD platform will improve HR
efficiency and productivity by streamlining the employee HR service experience end-to-end with
intelligent workflows and a shared document portal. The system would provide a consistent level of
service and experience to employees.
End-User IT Devices and Wireless Support is comprised of end-user IT equipment, including
computers and laptops, mobile phones, tablets, mobile hotspots (MiFis), and specialized equipment
purchases, as well as the associated voice and data plans. Moving device acquisition to a WCF model
allows HUD to improve long term IT planning, establish a more regular device refresh cadence,
improve IT security through use of up-to-date hardware, and promote efficient use of these services
driven by customer business needs.
Information Technology (IT) Fund
The Budget requests $382 million for the IT Fund. Within this request, $339 million supports the
Operations and Maintenance of current IT systems and applications that support HUD's mission
and administrative functions, and its IT infrastructure, such as computer hardware, network and
co=unications, support services, enterprise software licenses, and cybersecurity, but excludes
funding for computers, mobile equipment, and related voice and data for Departmental users that
are part ofHUD's Working Capital Fund request. The technology provided through the IT Fund
promotes affordable rental housing, provides access to homeownership opportunities, creates
healthier home environments, and reduces homelessness.
The Budget also provides $43 million for critical new initiatives, including $14 million for Operations
and Maintenance investments and $29 million for Development, Modernization, and Enhancement
initiatives to support the Department's strategic goals. and strengthen HUD's internal institutional
capacity to deliver on its mission. These new investments improve delivery of services, digitize
manual processes, and promote the stewardship of taxpayer dollars. The Budget will also expand
and strengthen cybersecurity at HUD by continuing implementation of a comprehensive
cybersecurity program that addresses critical security deficiencies related to cyber risk management,
the operating environment, governance, and data protection.
34-5
RL(ja) 47-463 05/03/2022
239
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
EXECUTIVE OFFICES
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services: $11,687 $4,626 $11,947 $16,573 $4,600 $15,067 $19,667
Non-Personnel Services:
Travel 77 300 300 310 310
Transportation of Things
Rent and Utilities
Printing 10 10 10 10
Other Services/Contracts 439 2,400 2,400 745 1,730 2,475
Training 30 30 45 45
Supplies 20 50 50 50 50
Furniture and Equipment
Claims and Indemnities 6
Total, Non-Personnel
$543 $2,790 $2,790 $745 $2,145 $2,890
Services
Working Capital Fund 882 788 788
Carryover 7,416 5,345 5,345
Grand Total $20,528 $7,416 $17,292 $24,708 $5,345 $18,000 $23,345
FTEs 60 26 71 97 26 85 111
•includes 2020 Carryover
PROGRAM PURPOSE
The Executive Offices (EO) provide the overall direction and leadership for the Department. These
offices are responsible for the overall development, implementation and management of the
Department's programs and policy priorities. Those policy priorities include strengthening and
broadening the Federal housing safety net for people in need, advancing housing equity as a means
of improving housing choices and greater economic opportunity, strengthening HUD's internal
institutional capacity to deliver on mission, increasing the production of, and access to, affordable
housing, and promoting climate resiliency, environmental justice, and energy efficiency across the
housing sector,
HUD's mission is critical to achieving the President's vision to ensure that we build back better from
the public health and economic challenges and address longstanding systemic challenges, including
racial injustice, rising inequality, and the climate crisis. HUD's work is essential to improving the
quality oflife of the American people, and this investment in the EO's salaries and expenses will
assist in ensuring that work can be done,
35-1
RL(ja) 47-463 05/03/2022
240
EXECUTIVE OFFICES
BUDGET OVERVIEW
The 2023 President's Budget requests $18 million for EO, which is $708 thousand more than the
2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of
$23.3 million, $1.4 million less than 2022 total funding.
Housing-related challenges can trigger significant mental health distress. Amounts available in this
account will be used to support HUD's department-wide effort to reduce the impacts of housing-
related challenges on mental and emotional well-being and improve the experience of the
Department's customers. EO will oversee the incorporation of validated, evidence-based practices
around mental health and emotional distress in the Department's ongoing technical assistance and
grantee training programs. This training will help housing professionals connect customers who are
experiencing emotional distress with appropriate local resources.
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) of $19. 7 million for EO's PS,
$3.1 million more than 2022 total funding. This funding will support 111 full-time equivalents
(FTEs), 14 FTEs more than the 2022 level. Increases in FTEs are primarily attributed to the
Department realigning the Disaster Management Division from the Office of Administration to the
Office of the Deputy Secretary. Additionally, the FTE level reflects the completion of the realignment
of the Executive Secretariat Division into the Office of the Secretary, which was approved in 2021.
The final six FTE realigned as part of this move perform Executive Scheduling and Advance
functions. The funding also supports a 4.6 percent Federal pay raise.
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) of $2.9 million for EO's NPS,
$100 thousand more than 2022 total funding. This funding will support contracts, travel, training,
and supplies.
Working Capital Fund (WCF)
The President's Budget assumes $788 thousand for EO's WCF requirements, $264 thousand more
than the 2022 CR Annualized CR level that was forward funded at the end of 2021. The WCF
funding level reflects payments for baseline WCF services (including inflationary adjustments and
changes in service utilization) and the additions of the End-User Devices business line, the Printing
Services business line, HR platform licensing, and the full cost recovery of the Financial Services
Acquisition and Development Division (FSADD) Financial Management expenses.
KEY OPERATIONAL INITIATIVES
• Provide program and policy guidance, and operations management and oversight in
administering all programs, functions, and authorities of the Department;
• Educate and enforce Federal Fair Housing law and advise the President on issues related to
housing, community development, and equal housing opportunity;
• Develop recommendations for policy in the areas of advancing housing equity, increasing
production of and access to affordable housing, safe and sustainable homeownership
opportunity, community development, ending homelessness, and promoting climate
resiliency and environmental justice to build inclusive communities;
35-2
RL(ja) 47-463 05/03/2022
241
EXECUTIVE OFFICES
• Serve as the nerve center for all HUD a~tivities and steer the Department's mission to create
strong, sustainable, and inclusive communities, and quality affordable homes for all;
• Provide program and policy guidance, and operations management and oversight;
• Help the Department achieve its strategic goals by providing management and support to
program offices working with human capital, financial management, procurement, and
information tech:nology;
• Coordinate congressional and intergovernmental relations activiti~s involving program
offices to ensure the effective and accurate presentation of the Department's views;
• Collaborate with the Office of General Counsel (OGC) and program offices in developing the
Department's position on relevant legislative matters;
• Coordinate the presentation of the Department's legislative matters to the Congress, and
ensure that all testimony and responses to congressional inquiries are consistent with the
Secretary's and the Administration's views;
• Educate and keep the American people informed about the Department's mission to create
strong, sustainable, and inclusive communities, and quality affordable homes for all;
• Pursue media outreach to ensure homeowners, renters, and those living in subsidized
housing hear directly from key officials about the Department's latest initiatives and goals;
• Conduct hearings and make determinations regarding formal complaints or adverse actions
initiated by HUD, based upon alleged violations of Federal statutes and implementing
regulations;
• Provide small business program design and outreach to the business community in its efforts
to assist small and disadvantaged businesses in providing services to the Federal
Government and the American people;
• · Build partnerships with faith-based and secular nonprofit organizations through grant
writing training, sustained outreach, convening events, information exchange, and capacity
building programs;
• Create a more stable and effective directives management program by working with HUD
offices to create a departmentwide inventory of directives and a cyclical review process to
establish a scheduling mechanism for advance notice of directives that may be approaching
expiration;
• Reinstitute a strong Exec Sec program for the Department to maintain continuity through
transitions Administrations; and to work closely with other executive offices, primarily
Congressional/Intergovernmental Relations (CIR), Office of Public Affairs (OPA), and OGC to
ensure consistency in messaging across all platforms representative of the voice and views of
the Secretary and the Administration in line with the Department's mission;
• Create a public access link (PAL) managed by Exec Sec that will allow customers to submit
correspondence directly to the Secretary via HUD's website providing an option for electronic
submission to eliminate barriers that customers face when sending inquiries via USPS (e.g.,
unknown delivery status, delivery delays, costs, etc.), and potentially reducing the time it
takes for HUD to respond to customers' concerns;
• Propose the realignment of the Disaster Management Division (6 FTEs) from the Office of
Administration to the Office of the Deputy Secretary.
35-3
RL(ja) 47-463 05/03/2022
242
EXECUTIVE OFFICES
EXECUTIVE OFFICES
OFFICE OF THE SECRETARY
Salaries and Expenses
(Dollars in Thousands)
.. c-
!'½''7'.- ,--°","'.."-C:,.,,.,,..,.=--c-c:-7•..,...,--r-..,-,....,...,-,..,-.,-,.-;",,-,,,,.,,,,.,,
... =..,...,-.,-..,...,-..,...,-..,...,-'7'"7..,.-,-=~
Personnel Services: $4,810 $1,458 $4,300 $5,758 $1,250 $6,274 $7,524
Non-Personnel Services:
Travel 36 125 125 125 125
Transportation of Things
Rent and Utilities
Printing 1
Other Services/Contracts 345 400 400 450 450
Training 8 8 15 15
Supplies 11 20 20 20 20
Furniture and Equipment
Claims and Indemnities 6
Total, Non-Personnel
$399 $554 $554 $611 $611
Services
Working Capital Fund 882 788 788
Carryover 7,416 1,250 1,250
Grand Total $13,507 $2,012 $5,550 $7,562 $1,250 $7,673 $8,923
FTEs 24 8 25 33 7 35 42
'Includes 2020 Carryover
PROGRAM PURPOSE
The Immediate Office of the Secretary (OSEC) provides program and policy guidance, as well as
operations management and oversight for the Department in the administration of all programs,
functions, and authorities. OSEC educates and enforces Federal Fair Housing law, advises the
President and develops policy focused on strengthening and broadening the Federal housing safety
net for people in need, advancing housing equity as a means of improving housing choices and
greater economic opportunity, strengthening HUD's internal institutional capacity to deliver on
mission, increasing the production of, anC: access to, affordable housing, and promoting climate
resiliency, environmental justice, and energy efficiency across the housing sector.
OSEC serves as the nerve center for all HUD activities and leads the Department's mission to create
strong, sustainable, and inclusive communities, and quality affordable homes for all.
BUDGET OVERVIEW
The 202:3 President's Budget requests $7.7 million for OSEC, which is $2.1 million more than the
2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of $8.9
million, $1.4 million more than 2022 total funding.
:35.4
RL(ja) 47-463 05/03/2022
243
EXECUTIVE OFFICES
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) of $7.5 million for OSEC PS,
$1.8 million more than 2022 total funding. This funding will support 42 full-time equivalents (FTEs),
9 FTEs more than the 2022 level. Increases in FTEs are primarily attributed to the completion of the
Executive Secretariat Division realignment from the Office of Administration to the Office of the
Secretary approved in 2021. The final six FTE realigned as part of this move perform Executive
Scheduling and Advance functions. The funding also supports a 4.6 percent Federal pay raise.
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) of $611 million for NPS,
$57 thousand more than 2022 total funding. This funding will support contracts, travel, training,
and supplies.
Working Capital Fund (WCF)
The President's Budget assumes $788 thousand for EO's WCF requirements, $264 thousand more
than the 2022 CR Annualized CR level that was forward funded at the end of fiscal year 2021. The
WCF funding level reflects payments for baseline WCF services (including inflationary adjustments
and changes in service utilization) and the additions of the End-User Devices business line, the
Printing Services business line, HR platform licensing, and the full cost recovery of Financial
Services Acquisition and Development Division (FSADD) Financial Management expenses.
35-5
RL(ja) 47-463 05/03/2022
244
EXECUTIVE OFFICES
EXECUTIVE OFFICES
OFFICE OF THE DEPUTY SECRETARY
Salaries and Expenses
(Dollars in Thousands)
i;: ;:/;,3. <; /. > 1 , . ~ : • ·. :\.s ~ > •....•.\·• , , ••. ./20!3,. : .. ·;
;• • ;~,i <C:t' · · ·
· ",/,'"'"',:\
!:.i: ' ' .
Personnel Services:
<·.)>
•
;; . ~la1!:
$370
·.·.= . .
$200 $1,166 $1,366
•; Bi!i:IO!lt
$2,293
,> .
Jroul .
$2,293
Non-Personnel Services:
Travel 4 50 50 - 50 50
Transportation a/Things - -
Rent and Utilities - -
Printing 1 1 - 1 1
Other Services/Contracts 1,800 1,800 745 1,055 1,800
Training 4 4 5 5
Supplies - 5 5 - 5 5
Furniture and Equipment - - - -
Claims and Indemnities - -
Total, Non-Personnel
$4 $1,860 $1,860 $745 $1,116 $1,861
Services
Working Capital Fund -
Carryover 745 745 -
Grand Total $374 $2,060 $1,911 $3,971 $745 $3,409 $4,154
FTEs 2 1 7 8 13 13
PROGRAM PURPOSE
The Office of the Deputy Secretary (DEPSEC) provides program and policy guidance, and operations
management and oversight under the direction of the Office of the Secretary. The DEPSEC helps the
Department achieve its strategic goals by providing management and support to program offices
working with human capital, financial management, procurement, and information technology.
BUDGET OVERVIEW
The 2023 President's Budget requests $3.4 million for DEPSEC, which is $1.5 million more than the
2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of $4.2
million, $183 thousand more than 2022 total funding.
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) $2.3 million for PS, $927 thousand
more than 2022 total funding. This funding will support 13 full-time equivalents (F'rEs), 5 FTEs
more than the 2022 level. Increases in FTEs are primarily attributed to the Department realigning
the Disaster Management Division from the Office of Administration to the Office of the Deputy
Secretary. The funding also supports a 4.6 percent Federal pay raise.
35-6
RL(ja) 47-463 05/03/2022
245
EXECUTIVE OFFICES
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) of $1.9 million for DEPSEC NPS,
which is level with 2022 total funding. This funding will support contracts, travel, training, and
supplies.
35-7
RL(ja) 47-463 05/03/2022
246
EXECUTIVE OFFICES
EXECUTIVE OFFICES
OFFICE OF CONGRESSIONAL AND INTERGOVERNMENTAL
RELATIONS
Salaries and Expenses
(Dollars in Thousands)
Personnel Services: $1,263 $2,194 $800 $1,125
Non-Personnel Services:
Travel 4 50 50 50 50
Transportation of Things
Rent and Utilities
Printing
Other Services/Contracts 50 50 75 75
Training 4 4 5 5
Supplies 5 5 5 5
Furniture and Equipment
Claims and Indemnities
Total, Non-Personnel
$4 $110 $110 $136 $136
Services
Working Capital Fund
Carryover 800 800
Grand Total $1,267 $685 $2,419 $3,104 $800 $1,261 $2,061
FTEs 8 4 12 16 6 8 14
PROGRAM PURPOSE
The Office of Congressional and Intergovernmental Relations (CIR) is responsible for coordinating
congressional and intergovernmental relations activities involving program offices to ensure the
effective and accurate presentation of the Department's views. The Office collaborates with the
Office of General Counsel (OGC) and program offices in developing the Department's position on
relevant legislative matters. The Assistant Secretary for CIR is the principal advisor to the
Secretary, Deputy Secretary, and senior staff with respect to legislative affairs, congressional
relations, and policy matters affecting Federal, State, and local governments and public and private
interest groups.
CIR is responsible for coordinating the presentation of the Department's legislative matters to
the Congress. It monitors and responds to the HUD-related activities of the Department's
congressional oversight and authorizing committees. It is also the principal Departmental
advocate before the Congress regarding HUD's legislative initiatives and other legislative
matters. In this regard, CIR is responsible for ensuring that all testimony and responses to
congressional inquiries are consistent with the Secretary's and the Administration's views.
:35-8
RL(ja) 47-463 05/03/2022
247
EXECUTIVE OFFICES
BUDGET OVERVIEW
The 2023 President's Budget requests $1.3 million for CIR, which is $1.2 million less than the 2022
Annualized CR level. The Budget reflects total funding (carryover and new authority) of $2.1 million,
$1 million less than 2022 total funding.
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) of $1.9 million for CIR PS,
$269 thousand less than 2022 total funding. This funding will support 14 full-time equivalents
(FTEs), two FTEs less than the 2022 level. The funding also supports a 4.6 percent Federal pay
raise.
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) of $136 thousand for NPS,
$26 thousand more than 2022 total funding. This funding will support contracts, travel, training,
and supplies.
35-9
RL(ja) 47-463 05/03/2022
248
EXf:CUTIVF: OFFICF:S
EXECUTIVE OFFICES
OFFICE OF PUBLIC AFFAIRS
Salaries and Expenses
i,,.,: .·.. r \< . . mt,.,, . , .•.:.:::a~• . .: •<. .\•>.•• ;,i21!2J > /•.··••··.···
•·· .:
(Dollars in Thousands)
... ,,i:r ,i.:·.CR·
.. A.:..:,~,{,:\
"<>it/. ;\\i: :-.::: ·.'- ".,\·,." .•' ..::•, -·•·. ·",,,<
,/~ ..' ';;;::r:::~· ~·.. ·• 1otlll .• .
.•
1:. . • <i: ....• •1'€1t11l ..
Personnel Services: $2,371 $600 $2,935 $3,535 $950 $3,000 $3,950
Non-Personnel Services:
Travel 33 50 50 50 50
Transportation of Things .
Rent and Utilities .
Printing 1 1 . 1 1
Other Services/Contracts 87 100 100 100 100
Training 4 4 . 5 5
Supplies 5 5 . 5 5
Furniture and Equipment . . -
Claims and Indemnities .
Total, Non-Personnel
$120 $160 $160 $161 $161
Services
Working Capital Fund . . - -
Carryover . 950 950 . -
Grand Total $2,491 $760 $3,885 $4,645 $950 $3,161 $4,111
FTEs 12 4 17 21 5 17 22
PROGRAM PURPOSE
The Office of Public Affairs (OP A) strives to educate and keep the American people informed about
the Department's mission to create strong, sustainable, and inclusive communities and quality
affordable homes for all. By pursuing media outreach, OPA works to ensure homeowners, renters,
and those living in subsidized housing hear directly from key officials about the Department's
latest initiatives and goals. Using communications tools such as press releases, press conferences,
the Internet, media interviews, social media, and community outreach, OPA provides Americans
with information about housing policies and programs that are important to them.
OPA is responsible for managing the Department's web products and provides direction, policies, and
guidance for all web products within the Department. OPA strives to educate and keep the American
people informed about steps the Department is taking to further its mission.
BUDGET OVERVIEW
The 2023 President's Budget requests $3.2 million for OPA, which is $724 thousand less than the
2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of $4.1
million, $534 thousand less than 2022 total funding.
35-10
RL(ja) 47-463 05/03/2022
249
EXECUTIVE OFFICES
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) of $4 million for OPA PS,
$415 thousand more than 2022 total funding. This funding will support 22 full-time equivalents
(FTEs), one FTEs more than the 2022 level. The increased FTE is primarily attributed to the
annualized funding of backfilling a vacant position in late 2022.
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) $161 thousand for OPA NPS,
which is essentially level with 2022 total funding. This funding will support contracts, travel,
training, and supplies.
Information Technology (IT)
Within the Information Technology Fund, the Budget requests $200 thousand for www.HUD.gov
Application Programming Interface (API) & App Development.
Program Pain Point
Currently the Department has a significant amount of information, data, and resources that are
beneficial to the public but has no expedient way in which to consolidate and present the information
in a user-friendly way on its website. Development dollars are limited and trying to excavate the
information in its various current iterations is costly and time consuming. It also is not conducive to
transparency.
Mission Benefits
The development of APis will ensure the Department's content is ready for easy sharing and
redistribution to deliver our mission directly to more citizens, not only via HUD channels but
potentially expanding our departmental information and services exponentially by allowing the
content to be more easily embedded or interwoven throughout external sites or other applications.
APis can be used to distribute services and information to new audiences and in specific contexts
that can be customized to provide tailored user experiences. Making data available via API will also
improve data quality review and cleanup.
Target Functionality
API creation for integration into websites such as:
• Affordable Apartments
• Housing Counselors
• Public Housing Authorities
Projected Cost Savings
Adoption of APis versus individual legacy access of data by various systems could provide
substantial savings in both development and maintenance for the Department. Once built for one
application that same API can be used for others.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification.
35-11
RL(ja) 47-463 05/03/2022
250
EXECUTIVE OFFICES
EXECUTIVE OFFICES
OFFICE OF ADJUDICATORY SERVICES
Salaries and Expenses
(Dollars in Thousands)
...· 2G~ 2< .. ,, • L: ·.•.··' ., , .• .2112:{ .•....•·
,,
i\• ',•
{ •· 1
2'l1 ,' ,;;':
t<. '
.
. . •. ··•.· ..... ' ·.
, 'ri-f.. ·••.t~•i ',,;;.;.1 ·'
','
,\ Allill~~ ,· •: itt ..
\; ,'
'
1• ', '
,,, I CR :/
',• ,,,
i:1,,,1,.,.1 ',
1 .·•• ,'
Personnel Services: $1,522 $793 $891 $1,684 $600 $1,000 $1,600
Non-Personnel Services:
Travel . . . .
Transportation of Things . .
Rent and Utilities . .
Printing . .
Other services/Contracts 5 25 25 25 25
Training 2 2 5 5
Supplies . 5 . 5 5 5
Furniture and Equipment . .
Claims and Indemnities .
Total, Non-Personnel
$5 $32 $32 $35 $35
Services
Working Capital Fund . . .
Carryover 600 600 . .
Grand Total $1,527 $825 $1,491 $2,316 $600 $1,035 $1,635
FTEs 7 4 4 8 3 5 8
PROGRAM PURPOSE
The Office of Adjudicatory Services (OAS) is an independent judicial office within the Office of the
Secretary. The Office is headed by a Chief Administrative Law Judge, appointed by the Secretary,
who supervises judges and administrative support staff. The OAS Administrative Judges (AJ) and
Administrative Law Judges (ALJ) conduct hearings and make determinations regarding formal
complaints or adverse actions initiated by HUD, based upon alleged violations of Federal statutes
and implementing regulations. OAS hearing procedures are governed by HUD regulations and
guided by the rules applicable to trials in Federal court. In each case, the judge seeks to make a fair
and impartial decision based upen the laws and the facts established by the evidence.
BUDGET OVERVIEW
The 2023 President's Budget requests $1 million for OAS, which is $456 thousand less than the 2022
Annualized CR level. The Budget reflects total funding (carryover and new authority) of $1.6 million,
$681 thousand less than 2022 total funding.
35-12
RL(ja) 47-463 05/03/2022
251
EXECUTIVE OFFICES
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) $1.6 million for OAS PS,
$84 thousand less than 2022 total funding. This funding will support 8 full-time equivalents (FTEs),
equal to the 2022 level.
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) of $35 thousand for OAS NPS,
$3 thousand more than 2022 total funding. This funding will support contracts, training, and
supplies.
35-13
RL(ja) 47-463 05/03/2022
252
EXECUTIVE OFFICES
EXECUTIVE OFFICES
OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION
Salaries and Expenses
(Dollais in Thousands)
<;. < }:'. ·. <· : 2ffli .. •. : i;• .· . •. .• ;•.2mi1c., .. ··: ·· .. 2023
..
..·.: ;
. \iJi11f . 1:c,w
!• ,i/ " ;+ ,;;
·..·
\ : ... : :\ ... <Oi,m, CR •··. r~tiit.·· \ ·a~i;;;;": ·Tllt>lil.
Personnel Services: $660 $500 $352 $852 $500 $650 $1,150
Non-Personnel Services:
Travel 25 25 - 25 25
Transportation of Things .
Rent and Utilities . - .
Printing 3 - 3 - 3 3
Other Services/Contracts 2 25 . 25 25 25
Training . 4 4 5 5
Supplies 9 5 . 5 5 5
Furniture and Equipment . . .
Claims and Indemnities . .
Total, Non-Personnel
$11 $62 $62 $63 $63
Services
Working Capital Fund - - - .
Carryover 500 500 . . -
Grand Total $671 $562 $852 $1,414 $500 $713 $1,213
FTEs 3 2 2 4 2 3 5
PROGRAM PURPOSE
The Office of Small and Disadvantaged Business Utilization (OSDBU) provides small business
program designs and outreach to the business community in its efforts to assist small and
disadvantaged business that provide services to the Federal Government and the American people.
The OSDBU is responsible for ensuring that small businesses are treated fairly and have an
opportunity to compete and be selected for a fair amount of the Agency's prime and sub-contracting
opportunities. The OSDBU also serves as the Department's central referral point for small business
regulatory compliance information, as required by the Small Business Regi,latory Enforcement
Fairness Act of 1996. The Secretary of HUD is committed to providing universal access to both small
and large businesses. The Department recognizes that small businesses are of vital importance to job
growth and the economic strength of our country. A successful and strong business community is an
integral component of the Department's overall mission of job creation, community empowerment
and economic revitalization.
35-14
RL(ja) 47-463 05/03/2022
253
EXECUTIVE OFFICES
BUDGET OVERVIEW
The 2023 President's Budget requests $713 thousand for OSDBU, which is $139 thousand less than
the 2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of
$1.2 million, $201 thousand less 2022 total funding.
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) of $1.2 million for the OSDBU PS,
$298 thousand more than 2022 total funding. This funding will support 5 full-time equivalents
(FTEs), 1 FTE more than the 2022 level. The additional FTE will support the Departmental Equity
Assessment Working Group as part of the President's Executive Order 13985, Executive Order On
Advancing Racial Equity and Support for Underserved Communities Through the Federal
Government. The additional FTE will also facilitate OSDBU's ability to broaden HUD's outreach to
small disadvantaged and minority business concerns, retrieve nation-wide data on vendors to
supplement outreach efforts and market research for technical reviews and to expeditiously obtain
supplier lists, as appropriate. The funding also supports a 4.6 percent Federal pay raise.
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) of $63 thousand for the OSDBU
NPS, $1 thousand more than 2022 total funding. This funding will support contracts, travel,
training, and supplies.
35-15
RL(ja) 47-463 05/03/2022
254
EXECUTIVE OFFICES
EXECUTIVE OFFICES
CENTER FOR FAITH-BASED AND NEIGHBORHOOD PARTNERSHIPS
Salaries and Expenses
(Dollars in Thousands)
Personnel Services: $691 $500 $684 $1,184 $500 $725 $1,225
Non-Personnel Services:
Travel 10 10
Transportation of Things
Rent and Utilities
Printing 3 3 3 3
Other Services/Contracts
Training 4 4 5 5
Supplies 5 5 5 5
Furniture and Equipment
Claims and Indemnities
Total, Non-Personnel
$12 $12 $23 $23
Services
Working Capital Fund
Carryover 500 500
Grand Total $691 $512 $1,184 $1,696 $500 $748 $1,248
FTEs 4 3 4 7 3 4 7
PROGRAM PURPOSE
The Center for Faith-Based and Neighborhood Partnerships (CFBNP) serves as a liaison between
faith-based and community-serving organizations, HUD, and the White House Office of Faith-Based
and Neighborhood Partnerships pursuant to Executive Order 14015. CFBNP assists in developing
and coordinating HUD and the Administration's policy agenda affecting faith-based and other
community programs and initiatives, and optimizes the role of such efforts in communities, It does so
by building partnerships with faith-based and secular nonprofit organizations through grant writing
training, sustained outreach, convening events, information exchange, and capacity building
programs. CFBNP also facilitates intra-departmental and inter-agency cooperation to reach
nonprofits with two-way information sharing, technical assistance, and training opportunities; it
encourages new partnerships to reach communities more effectively which HUD and the White
House office of Faith-Based and Neighborhood Partnerships seek to have an impact.
BUDGET OVERVIEW
The 2023 President's Budget requests $748 thousand for CFBNP, which is $436 thousand less than
the 2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of
$1.2 million, $448 thousand less than 2022 total funding.
35-16
RL(ja) 47-463 05/03/2022
255
EXECU'l'NE OFFICES
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) of $1.2 million for CFBNP PS,
$41 thousand more than 2022 total funding. This funding will support 7 full-time equivalents
(FTEs), equal to 2022 total level. The funding also supports a 4.6 percent Federal pay raise.
Non-Personnel Services (NPS)
The Budget assumes total funding (carryover and new authority) of $23 thousand for CFBNP NPS,
$11 thousand more than 2022 total funding. This funding will support contracts, travel, training,
and supplies.
35-17
RL(ja) 47-463 05/03/2022
256
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices Overview
rr.~, . ·' \ .·.•\ ....· ~r~~·" HL:j? . .
>; \.i; ·(\~//'
Personnel Services:
.·.
-~•um-
\'
SALARIES AND EXPENSES
'
(Dollars in Thousands)
l!:12: .,•t·'; . ,, . :; ;';~/ \ ·:
<;(l'j:t :
\ T~t~i.t;·•··· ''i~;;~
•. \{
>.~ot.11'
..
Personnel Services 320,007 20,114 323,266 343,380 18,416 391,675 410,091
Common Distributable 7,141 200 9,050 9,250 12,500 12,500
Total, Personnel Services $327,148 $20,314 $332,316 $352,630 $18,416 $404,175 $422,591
Non-Personnel Services:
Travel 1,037 915 1,460 2,375 - 5,117 5,117
Transportation of Things 378 361 361 - 440 440
Rent and Utilities 124,485 15 123,800 123,815 - 128,164 128,164
Printing 524 1 717 718 - 1,161 1,161
Other Services/Contracts 98,665 28,789 80,498 109,287 117,840 117,840
Training 3,434 1,369 1,840 3,209 6,808 6,808
Supplies 421 113 432 545 1,562 1,562
Furniture and Equipment 1,697 10 5,873 5,883 - 6,627 6,627
Claims and Indemnities 750 50 620 670 - 768 768
Total, Non-Personnel . $268,487
$231,391 $31,262 $215,601 $246,863 $268,487
Services
Working Capital Fund 15,540 2,470 7,633 10,103 2,723 18,238 20,961
Carryover 54,046 21,139 21,139 - -
Grand Total $628,125 $54,046 $576,689 $630,735 $21,139 $690,900 $712,039
FTEs 1,880 111 1,775 1,886 93 2,070 2,163
'Includes 2020 Carryover.
The Administrative Support Offices are the backbone of HUD's operations. These offices support the
Department's core mission by providing: day-to-day operational support; strategic human capital
management and workforce planning; management and operation of facilities, administrative
services, correspondence and records management; sound financial management and stewardship of
public resources; compliant acquisition and business solutions; strategic leadership, direction, and
oversight across the Department to maximize agency performance; enforcement of Federal laws
relating to the elimination of all forms of discrimination in employment practices; legal opinions,
advice, and services with respect to all programs and activities; and modern information technology
that is secure, accessible and cost effective.
The Administrative Support Offices include:
• Office of the Chief Financial Officer
• Office of the General Counsel
• Office of Administration (which includes the Office of the Chief Administrative Officer, Office
of the Chief Human Capital Officer, and Office of the Chief Procurement Officer)
• Office of Field Policy and Management
36-1
RL(ja) 47-463 05/03/2022
257
ADMINISTRATIVE SUPPORT OFFICES OVERVIEW
• Office of Equal Employment and Equity Advancement (formerly the Office of Departmental
Equal Employment Opportunity)
• Office of the Chieflnformation Officer
36-2
RL(ja) 47-463 05/03/2022
258
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of the Chief Financial Officer
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services:
Personnel Services 35,546 300 41,122 41,422 48,300 48,300
Common Distributable 6,172 5,620 5,620 6,000 6,000
Total, Personnel Services $41,718 $300 $46,742 $47,042 $54,300 $54,300
Non-Personnel Services:
Travel 3 75 75 150 150
Transportation of Things
Rent and Utilities
Printing 10 25 25 25 25
Other Services/Contracts 40,607 9,754 24,201 33,955 37,100 37,100
Training 158 195 195 300 300
Supplies 3 20 20 46 46
Furniture and Equipment
Claims and Indemnities
Total, Non-Personnel
$40,781 $9,754 $24,516 $34,270 $37,621 $37,621
Services
Working Capital Fund 3,926 3,204 3,204 5,079 5,079
Carryover 10,054
Grand Total $96,479 $10,054 $74,462 $84,516 $97,000 $97,000
FTEs 211 2 220 222 249 249
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of the Chief Financial Officer (OCFO) provides HUD-wide leadership to support HUD's
mission through sound financial management in programs and operations. OCFO leads HUD in
practicing financial integrity, financial responsibility, accountability, and stewardship of public
resources. While advising the Secretary and HUD leadership on all aspects of financial management
and budget, OCFO works to ensure that HUD meets established financial management goals and
complies with pertinent legislation and directives. In addition, OCFO analyzes budgetary
implications of policy and legislative proposals and oversees budget activities throughout HUD.
OCFO's Strategic Planning and Performance Division (SPPD) supports HUD's priority projects and
agency-wide efforts to achieve operational excellence. SPPD also develops, analyzes, and reports on
key performance indicators for HUD and agency priority goals.
HUD's mission is critical to achieving the President's vision to ensure we build back better from the
public health and economic challenges and address longstanding systemic challenges, including
racial injustice, rising inequality, and the climate crisis. HUD's work is essential to improving the
37-1
RL(ja) 47-463 05/03/2022
259
OFFICE OF THE CHIEF FINANCIAL OFFICER
quality of life of the American people, and this investment in OCFO's salaries and expenses will
assist in ensuring that work is able to be done.
BUDGET OVERVIEW
The 2023 President's Budget requests $97 million for OCFO, which is $22.5 million more than the
2022 annualized CR level. The Budget reflects total funding (carryover and new authority) of $97
million, $12.5 million above 2022 total funding. This Budget will support OCFO's mission and key
initiatives involving Financial Management, Enterprise and Fraud Risk Management, Customer
Experience, the Payment Integrity Information Act (PIIA), and a proposed reorganization of its
current structure.
Personnel Services (PS)
The Budget assumes total funding of $48.3 million for OCFO PS, $6.9 million above 2022 total
funding. This funding will support 249 full-time equivalents (FI'Es), an increase of 27 FTEs above
the 2022 total FTE level, which includes new recruitments, backfills, and projected attrition. The
funding request supports a 4.6 percent Federal pay raise in 2023. Increases in FTEs support the
following:
• Chief Risk Officer (CRO) - The CRO is currently assisted by two risk analysts. With the
creation of the Office of the Chief Risk Officer, the CRO requests four additional FTEs to
support Department-wide enterprise and fraud risk management. The CRO will provide
expertise to HUD by identifying and advising on mitigation efforts regarding the most
significant risks facing HUD.
• Assistant Chief Financial Officer (ACFO) for Systems -The ACFO for Systems requests nine
additional FTEs to provide support for the new business lines for shared services,
information security requirements, increased workloads, and creation of the Financial Data
Reporting and Analysis Division.
• ACFO for Budget - The ACFO for Budget requests six additional FTEs to support the
creation of the Customer Experience Division.
• ACFO for Financial Management - The ACFO for Financial Management requests six
additional FTEs to support increased audits, reviews, data analytics, A-123 risk and control
testing, and payment integrity work.
• Appropriations Law Staff (ALS) -ALS requests two additional FTEs to support providing
Department-wide appropriations law guidance, anti-deficiency act reviews, financial
implementation of new programs, advisory support, and appropriations law training.
Common Distributable
The Budget assumes total funding of $6 million in Personnel Services for Professional Liability
Insurance, Workers' Compensation and Unemployment Compensation, which is $380 thousand more
than 2022 total funding.
Non-Personnel Services (NPS)
The Budget assumes total funding of $37.6 million for NPS, $3.4 million more than 2022 total
funding. Funding will support travel, printing, contracts/other services, training, and supply
requirements. With the assumption of returning to normal operations, OCFO will return to pre-
COVID-19 levels in travel and supplies. The increase in training will support more training
requirements for additional staff. Other services/contracts include:
37-2
RL(ja) 47-463 05/03/2022
260
OFFICE OF THE CHIEF FINANCIAL OFFICER
• $10 million for financial management support to assist with the agency financial reporting,
A-123 compliance, audit remediation, data analytics, and improved financial operations;
• $3.6 million for Enterprise and Fraud Risk Management;
• $4.5 million for Customer Experience;
• $7.2 million to ensure compliance with PIIA;
• $3 million to support OCFO's systems strategy, analysis, remediation, and shared services;
and
• $8.8 million to maintain services for line of business agreements, accounting services, CXO
Council and Cross Agency Priority Goals agreements, systems security control and
compliance, and computer matching for employment/income verification.
Working Capital Fund (WCF)
The Budget assumes total funding of $5.1 million for OCFO's contribution to the WCF, $1.9 million
above 2022 total funding. The WCF funding level reflects payments for baseline WCF services
(including inflationary adjustments and changes in service utilization) and the additions of the
End-User Devices business line, the Printing Services business line, HR platform licensing, and the
full cost recovery of Financial Services Acquisition and Development Division (FSADD) Financial
Management expenses.
Information Technology (IT)
Within the IT Fund, the Budget requests $5 million for Financial Management Modernization. This
investment addresses the Line of Credit Control System (LOCCS) and Oracle Federal Financials
(OFF) interface modernization needs.
Program Pain Point
The Line of Credit Control System (LOCCS) is the Department's primary disbursement and funds
control system for grants and Housing subsidy programs. LOCCS is not integrated with Oracle
Federal Financials, which is the Department's core accounting system. Instead, the antiquated
legacy HUD Central Accounting Program System (HUDCAPS) is used to exchange the allotment and
the grants and Housing subsidies financial activity between LOCCS and the core accounting system.
The lack of integration between LOCCS and the core accounting system results in an extended
timeline for processing financial transactions that delays disbursements to grantees and Housing's
subsidies tenants, and related financial reporting. The Department is unable to decommission
HUD CAPS and its IBM mainframe, which are expensive to maintain and the subject of GAO and
OIG audit findings. A separate project to complete the PIH Enterprise Voucher Management System
(eVMS) to improve PIH and Public Housing Authority (PHA) operations must also be completed to
be able to decommission HUDCAPS.
Mission Benefits
This initiative improves the reliability and quality of financial data, streamlines and strengthens
financial management and allows timely grants and Housing subsidies disbursements. By enabling
the use of shared services system-to-system integration, it improves productivity and security and
consolidates IT infrastructure. It will reduce operations and maintenance costs while removing
unsupported and antiquated technology. This project enables HUD to move closer to
decommissioning both HUDCAPS and the IBM mainframe which helps to fast-track our path to
complete digital transformation.
Target Functionality
The targeted functionality and changes will include:
37-3
RL(ja) 47-463 05/03/2022
261
OFFICE OF THE CHIEF FINANCIAL OFFICER
• Enhance the existing financial interface system, New Core Interface Solution (NCIS), to
exchange the allotment, grants and Housing subsidies financial activity between LOCCS and
the core accounting system.
• Deactivation ofHUDCAPS financial interface capabilities.
Projected Cost Savings
HUD estimates a possible reduction in the $2 million per year for contractor support operations and
maintenance costs for HUD CAPS due to the deactivation of the HUD CAPS financial interface
capabilities. PIH will still use the remaining HUD CAPS capabilities for all subsidies financial
operations and disbursements to PHAs. When the enterprise Voucher Management System (eVMS)
is completed, with all HUDCAPS capabilities incorporated, HUD will propose to integrate eVMS
with the core accounting system. This is the last step necessary to decommission HUD CAPS and the
IBM mainframe.
Please refer to the IT Fund justification for additional information regarding HUD's proposed IT
resources for 2023.
KEY OPERATIONAL INITIATIVES
The Budget supports Departmental Goals by ensuring the availability and accountability of
operational and programmatic funding. OCFO strives to implement strong financial management
policies, accounting practices, internal controls, funds control assurance, and audit support to
safeguard resources for intended purposes. OCFO's key operational initiatives most directly support
the Departmental Goal: Strengthen HUD's internal capacity and efficiency through increased
personnel, contract support, Department-wide training programs and streamlined processes.
Financial Management: The Budget provides $10 million to sustain the path of sound and reliable
operations in support of HUD's mission. The funding allows continued investment in HUD's people,
processes, and technology to strengthen reliability of executing HUD's mission while protecting
taxpayer funds. The funding provides financial consulting services support for agency financial
reporting, A-123 risk and internal control assessment, audit remediation and resolution, data
analytics, single audit compliance, and improved financial operations. These efforts have had
impactful outcomes, such as remediating financial infrastructure weakness, resolving eight material
weaknesses, eliminating multiple disclaimers, and obtaining an unqualified audit opinion for the
second time in ten years. Moreover, these achievements have enabled HUD to express a positive
Statement of Assurance as well as becoming compliant with the Digital Accountability and
Transparency Act (DATA Act), Circular A-123, and Grants Oversight and New Efficiency Act.
Since implementation, OCFO has remediated eight material weaknesses and eliminated all four
disclaimers in the 2017 financial statements. OCFO will continue this investment to further HUD's
effort in protecting taxpayer funds.
Enterprise and Fraud Risk Management: The Budget provides $3.6 million for enterprise and fraud
risk management contract support. OCFO's Enterprise and Fraud Risk Management supports
enterprise risk analysis and mitigation efforts pursuant to 0MB Circular No. A-123 ''Management's
Responsibility for Enterprise Risk Management and Internal Control." Establishing enterprise and
fraud risk management is essential to HUD's control system and will entail working collaboratively
with HUD component programs and external stakeholders. Contract support will enable the
program to integrate existing silo programs into a comprehensive program that complies with
federal internal control requirements. This program will support risk mitigation, front end risk
assessments, and management control reviews.
37.4
RL(ja) 47-463 05/03/2022
262
OFFICE OF THE CHIEF FINANCIAL OFFICER
Customer Experience: The Budget provides $4.5 million for Customer Experience. The purpose of
the Customer Experience initiative is to meet mandates in delivering excellent, equitable, and secure
Federal services and customer experience. OCFO will establish a centralized CX capacity and will
partner with program offices to better understand customers and design solutions to address
customer pain points, gaps in accessibility and equity. OCFO in partnership with program offices
will leverage a common customer feedback tool to support data-driven decisions and improve service
delivery. This centralized CX approach and enterprise tool will meet 0MB Circular A-11 Part 6
Section 280 reporting requirements and mandates in the Executive Order on Transforming Federal
Customer Experience and Service Delivery to Rebuild Trust in Government and increase HUD
compliance with: the 21st Century Integrated Digital Experience Act (IDEA), 2018; Plain Writing
Act, 2010; Rehabilitation Act, Section 508, 1973; and Paperwork Reduction Act (PRA).
Payment Integrity Information Act (PUA): The Budget provides $7.2 million for contract support to
achieve compliance with 0MB Circular A-123 Appendix C for effective estimation, process
improvements, and remediation of improper payments necessary to protect taxpayer funds.
Systems Strategy. Analysis, Remediation. and Shared Services Support: The Budget provides
$3 million for contract services support with project management, audits, change management, data
and policy analysis, customer service engagement, communication, and data output. Services will
assist with maintaining compliance with ever changing requirements for legislative, financial,
performance, and transparency mandates.
Reorganization: The following reorganization was submitted in the 2022 President's Budget and is
reproposed in the 2023 Budget. OCFO requests authority to make changes within its organizational
structure to reflect current functions and transitioning contract support to Federal staff. The
proposed reorganization consists of the ACFO for Accounting, ACFO for Budget, ACFO for Systems,
and the Chief Risk Officer.
• ACFO for Accounting -The CFO Accounting Center will undergo a reorganization to better
align functions, workload, and improve operational efficiencies and service delivery due to the
transition to shared services. The reorganization includes the dissolution of the Reports and
Control Division and integrating those duties with the Payments and Collections Division. It
will also encompass the renaming of various divisions and branches to better reflect current
functions. Changes in division and branch titles include:
o CFO Accounting Center ➔ CFO Accounting Operations Center
o Payments and Collections Division ➔ Payments, Collections and Analytical Services
Division
o Commercial Branch ➔ Payments, Intragovernmental and GL Branch
o Program Branch ➔ Vendor Maintenance, Debt Collection & Cash Services Branch
o Funds Control Division ➔ Grants, Loans, and Subsidies Servicing Division
o Funds Control Branch 1 ➔ Loans and Subsidies Servicing Branch
o Funds Control Branch 2 ➔ Grants Servicing Branch
• ACFO for Budget - The ACFO for Budget has relied solely on contractor staff to support the
customer experience functions for the Department. The Budget creates a Customer
Experience division reporting to the Director for Performance Management and Customer
Experience. It adds six additional Federal staff to fill critical customer experience roles such
as customer experience researchers, user experience designers, and data analysts. These
Federal staff will develop an in-house capability that expands HUD's ability to listen to HUD
customers and partner organizations and use that insight to improve HUD programs,
measured by improved program performance and customer experience.
37-5
RL(ja) 47-463 05/03/2022
263
OFFICE OF THE CHIEF FINANCIAL OFFICER
In addition, newly proposed in 2023, the Grants Management and Oversight Division is
moved to the ACFO for Budget to better align functions. Currently, the Grants Management
and Oversight Division is operating under the ACFO for Systems.
• ACFO for Systems - The ACFO for Systems has solely used contract support to meet DATA
Act Reporting Requirements over the past few years. OCFO proposes to begin transitioning
contract support to Federal staff. The creation of the Financial Data Reporting and Analysis
Division will permit this transition from contractor resources to Federal staff, provide support
for reporting, audit, and data quality, as well as, to meet additional regulatory financial
reporting such as the Grants Oversight and New Efficiency Act and the Grant Reporting
Efficiency and Agreements Transparency Act. The division will be staffed with a division
director and four employees to support this requirement and additional work. A smaller
contracting team will still be needed to support activities within this Division.
• Office of the Chief Risk Officer (OCRO) - The Budget requests establishment of the OCRO.
This office will include the Chief Risk Officer (CRO) and six risk analysts. The CRO will
report to the Deputy CFO. The CRO provides executive-level management, leadership,
direction, and oversight to the Enterprise and Fraud· Risk Management program. OCRO will
provide expertise to HUD by identifying and advising on mitigation efforts regarding the most
significant risks facing HUD.
37-6
RL(ja) 47-463 05/03/2022
264
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of General Counsel
SALARIES AND EXPENSES
(Dollars in Thousands)
... . .......
,.
···~
:/ ·. ·.· . '• . 1. . 2021• - ·• ..... ·•· .•C20lll! •· ,/ .> • ··.• .· ; 2023
.•
. .· ;,·· · .. .·
.\
.. :. Ad!!lls . ·.~?·
. . . •i • 1·•· .· •
1,,l1311111:1~ ··• ttit1t! .· •.·
·. i .·.··.· .• .· Cit •· . 1~111\
Personnel Services: $104,996 $3,430 $99,206 $102,636 $3,500 $116,784 $120,284
Non-Personnel Services:
Travel 67 - 90 90 - 1,242 1,242
Transportation ofThings 11 - - - - .
Rent and Utilities - -
Printing 430 600 600 - 800 800
Other Services/Contracts 1,099 1,360 1,360 1,810 1,810
Training - 180 310 490 - 930 930
Supplies 159 - 140 140 300 300
Furniture and Equipment - -
Claims and lndemniUes 749 500 500 650 650
Total, Non-Personnel
$2,515 $180 $3,000 $3,160 $5,732 $5,732
Services
Working Capital Fund 1,469 462 1,548 2,010 - 3,584 3,584
Carryover 4,072 3,500 3,500 - -
Grand Total $113,052 $4,072 $107,254 $111,326 $3,500 $126,100 $129,600
FTEs 595 19 536 555 18 606 624
*Includes 2020 Carryover.
PROGRAM PURPOSE
The General Counsel is the chief legal officer of HUD and principal legal adviser to the Secretary
and other principal leadership in the Department. The Office of General Counsel (OGC) provides
legal opinions, advice, and services with respect to all departmental programs and activities in
Headquarters and throughout the field. OGC attorneys draft or review legislation, regulations, and
policy guidance to create, revise and implement HUD programs and initiatives. OGC attorneys also
provide litigation support for the Department, including representing HUD in defensive litigation,
enforcing the Fair Housing Act, and bringing enforcement actions against individuals and
organizations that violate the rules of HUD programs, both administratively and in coordination
with the HUD Inspector General and the Department of Justice. In addition, OGC attorneys provide
transactional legal services in connection with the Department's various housing programs and the
activities of the Federal Housing Administration, and advice on the issuance of mortgage-backed
securities and various related financial, capital market, and securitization transactions by the
Government National Mortgage Association. OGC attorneys represent the Department with other
federal agencies in support of joint initiatives and projects, and before the Office of Management and
Budget and other external parties.
The Departmental Enforcement Center (DEC) provides independent oversight of the administration
of HUD programs and HUD's external partners. To this end, the DEC offers support and
38-1
RL(ja) 47-463 05/03/2022
265
OFFICE OF GENERAL COUNSEL
recommendations to HUD program offices through reviews of program activities in the field and
analysis of financial statements and data on the physical condition of housing.
BUDGET OVERVIEW
The 2023 President's Budget requests $126.1 million for the OGC, which is $18.8 million more than
the 2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of
$129.6 million, $18.3 million above 2022 total funding.
The total OGC funding request in 2023 supports the DEC's total requirement of $20 million, of
which $3.5 million will be funded through 2023 carryover and $16.5 million with new authority.
Personnel Services (PS)
The Budget reflects total funding (carryover and new authority) of $120.3 million for PS, an increase
of $17. 7 million above 2022 total PS funding. The funding supports 624 full-time equivalents (FTEs),
an increase of 69 FTEs above 2022. The DEC's staffing level will be increased to ll8 FTEs in 2023
from 112 FTEs in 2022 for the DEC to conduct oversight and monitoring of HUD assets. The Budget
also supports a 4.6 percent Federal pay raise. OGC anticipates utilizing the additional FTEs in 2023
to increase staffing levels to provide accurate and timely legal counsel for:
• Compliance, enforcement and defense of fair housing and civil rights initiatives.
• Expanding efforts of CPD, Housing and PIH to meet the needs of local communities,
including disaster response and implementation ofHUD's climate action plan.
• Advancing Administration priorities related to supporting workplace flexibilities and
furthering Presidential Executive Orders to further equity and ethics in the Federal
workforce
The additional funding and FTEs will also support the following:
• OGC's proposal in the 2022 President's Budget to convert the 10 Regional Counsels to
Senior Executive Service employees due to their increased portfolios and workload.
• At least 10 Legal Honor positions as part ofOGC's succession planning using its 50+ year
program to bring graduating law students on board in OGC.
The DEC will accomplish all its stated 2023 goals with greater focus on moving to a more project and
knowledge management-based strategy. As a result of the pandemic, the "new normaY' involves more
remote managing of personnel and work products. With a shortage of affordable housing across the
nation there will be increased program monitoring and thus more referrals to the DEC.
Non-Personnel Services (NPS)
The Budget indicates total funding (carryover and new authority) of $5. 7 million for Non-Personnel
Services (NPS) requirements. The total NPS requirements reflect an increase of $2.6 million from
2022 total funding, which will continue to support critical training, technology needs, travel,
digitization, government printing, supplies, contracts, and claims and indemnifications (attorney's
fees for adverse parties prevailing in non-program related litigation). At this level, increased
investments will be made in both training and additional travel above 2022 levels. Training and
travel were delayed during 2022 and additional expenses are expected in 2023 to meet deferred
needs. Printing funding supports the Department's printing costs for the Federal Register and the
Code of Federal Regulations. NPS funding also supports OGC's access to online legal research and
databases. These services include Lexis/RELX Inc., PACER, West LegalEd, CyberFeds, and the
Congressional Quarterly.
38-2
RL(ja) 47-463 05/03/2022
266
OFFICE OF GENERAL COUNSEL
Working Capital Fund (WCF)
The 2023 WCF funding level is $3.6 million, an increase of $1.6 million from the 2022 total level.
The WCF funding level reflects payments for baseline WCF services (including inflationary
adjustments and changes in service utilization) and the additions of the End-User Devices business
line, the Printing Services business line, HR platform licensing, and the full cost recovery of
Financial Services Acquisition and Development Division (FSADD) Financial Management expenses.
Information Technology (IT)
Within the IT Fund, the Budget requests $150 thousand for OGC SharePoint Support.
Program Pain Point
OGC uses SharePoint for many purposes, such as consolidating program performance information
that is used in Congressional and 0MB communications, the eDiscovery Program, and to manage
and track enforcement referral investigations and other compliance monitoring activities. OGC
SharePoint development projects require greater technical knowledge and a deeper understanding of
software design and development techniques.
Limited support services are currently provided under the legacy eDiscovery Program support
contract. The current, limited SharePoint support is not sufficient to meet OGC's ever-growing
development requirements and increased project complexity. In addition, utilizing the new HUD
Microsoft 0365 development tools to improve project efficiencies requires greater technical
knowledge and a deeper understanding, of software design.
Mission Benefits
DOJ, litigation opposing counsel, Congress, OIG, and FOIA requesters all rely on the Department's
eDiscovery program to work smoothly and timely. The improvements to SharePoint applications will
ensure HUD's ability to manage all aspects of the program, including managing the queue of
requests. HUD relies on OGC's Clearance Calendar, Reports to Congress application, compliance
monitoring activities, and other products and will benefit from SharePoint improvements.
Target Functionality
Continued functionality for key Department-wide and OGC applications will provide transparency,
streamlined data collection, and business process administration for HUD mission support at a low
cost. This also allows OGC to maximize the benefits provided by OCIO's enterprise investment in
SharePoint and 0365 software development tools.
Projected Cost Savings
OGC could potentially save one full-time FTE Tier 3 for SharePoint troubleshooting, administration,
and design advice.
For additional information regarding HUD's Information Technology investments, please see the IT
Fund justification.
KEY OPERATIONAL INITIATIVES
Priority 1: Fair Housing and Civil Rights Compliance and Enforcement
As a priority of the Biden Administration, OGC and the Office of Fair Housing and Equal
Opportunity (FHEO) are increasing compliance, enforcement and defense of fair housing and civil
rights initiatives. OGC has also taken on additional legal reviews associated with a substantial
increase in complaints alleging Fair Housing Act violations and significantly more Secretary-
38-3
RL(ja) 47-463 05/03/2022
267
OFFICE OF GENERAL COUNSEL
initiated investigations, complaints, and compliance reviews. OGC is a key partner in supporting
increased fair lending enforcement and undertaking investigations of complaints alleging
discriminatory appraisal services. To ensure effective advocacy of this priority, in-depth training and
technical assistance is necessary for program participants to meet their fair housing obligations.
This will necessitate a large commitment of resources by OGC, in creating the program, providing
training and technical assistance, and in enforcing the program. To support these goals, OGC has
had and will continue to have a significant need for resources and to add additional staff as
requested in this Budget.
Priority 2: Ethics and Personnel
Personnel and ethics are two of the most critical components of any Federal agency. This is
especially true given this Administration's Executive Orders on Equity, Ethics, and the Federal
workforce. Without timely and sound legal advice in these two areas, HUD's ability to effectively
carryout its mission is significantly compromised. Indeed, without sound advice being provided to
help tlie Agency hire and retain personnel, hold them accountable, and ensure they are carrying out
their duties in an ethical manner, HUD's ability to support this Administration's agenda will be
negatively impacted. To support this vital agency work, OGC has a need for additional staff
attorneys requested in this Budget.
Priority 3: Legislation and Regulations
OGC's Office of Legislation and Regulations continues to be a key office in advancing Administration
and HUD priorities through HUD's regulatory agenda and in cultivating the support and
coordinating with Congressional leaders in support of HUD's legislative priorities. OGC has seen a
significant increase in legislative reviews from Congress to support the Secretary's efforts to build a
more robust relationship with Congress and the authorizing committees. Additionally, regulatory
work will continue on key rules to ensure compliance with the Fair Housing Act and other civil
rights laws. To support timely and effective legal counsel for these new initiatives, OGC has a
significant need for resources and additional staff requested in this Budget.
Priority 4: Litigation
OGC's Office of Litigation is critical for effective and strong advocacy to support and defend the
interests of the Department for litigation related to implementation of Administration priorities,
including those related to fair housing and civil rights. Many suits against HUD involve
constitutional, statutory, regulatory, and contractual challenges to HUD programs nationwide that
involve litigation risks that could cost the Department millions of dollars. Without effective support
and staffing in the Office of Litigation, the Department is limited in its ability to defend itself from
challenges, to be good stewards of tax dollars, and to advocate for the people the Department
services. To support these efforts, the Office of Litigation has a significant need for resources and
additional staff requested in this Budget.
Priority 5: Legal Honors and Succession Planning
For over 50 years, a key component for OGC's succession planning efforts is its Legal Honors
.Program. OGC continues to backfill attorney attrition with Legal Honors at the GS-11 level and then
invests in their training and professional development with a career ladder to support advancement
and retention. OGC's funding request in 2023 will allow OGC to continue its Legal Honors program
and bring a class of at least 10 Legal Honors to start in September 2022 and whose salaries will
largely be paid in 2023.
38-4
RL(ja) 47-463 05/03/2022
268
OFFICE OF GENERAL COUNSEL
Priority 6: Legal Support to the Department
OGC provides vital legal support to the Department related to HUD's existing programs as well as
supplemental disaster and recovery funds. To continue to provide timely and accurate legal counsel,
including legal counsel related to FHA's trillion-dollar insurance portfolio, the trillions of dollars
guaranteed by Ginnie Mae and billions in rental and homelessness assistance, additional staff and
resources identified in this Budget are necessary. In a fiscal year, OGC also: defends the
Department's programs against hundreds of millions of dollars in claims; formally reviewed at least
$300 million of Departmental procurements; manages the Department's ethics program for over
2,600 financial disclosure filers; represents the Department's interests in Multifamily foreclosure;
and handles almost 6,000 legal actions to protect the single-family inventory.
Priority 7: Departmental Enforcement Center
In 2023, OGC DEC will be in its 25th year and most of the employees who started with the DEC
when it was created are eligible to retire. Resources will be dedicated to increasing the staffing
capacity to 118 FTEs, and backfilling attrition as it occurs.
Program Oversight Reviews: In a typical year, the DEC completes 26 program oversight reviews.
These reviews are targeted regulatory compliance reviews. At the request ofHUD's program areas
such as Public and Indian Housing, Community Planning and Development, DEC oversight reviews
focus on key areas of program compliance. Key review areas include Financial, Internal Controls,
Governance and Physical Condition. As a result of the reviews, the DEC annually makes over 200
reco=endations to the program areas pertaining to improved oversight and/or repayment
accountability for violations. Additionally, on average $68 million in misused funds annually (e.g.,
Unsupported, ineligible, unallowed and/or unreasonable) are identified. Due to pent up work due to
delays from the 2020-2021 pandemic there will be an increased need for DEC reviews. By performing
these reviews, the DEC supports the program area mission of affordable housing and viable
co=unities through enforceable program adherence and compliance.
Multifamily Housing and Office of Healthcare Program Referrals: The DEC projects it will receive
3,098 automatic/elective referrals from the Office of Multifamily Housing and the Office of
Healthcare Programs in 2023. The referrals focus on late filing of annual financial statements,
regulatory compliance, and substandard physical conditions of assisted and non-assisted properties.
The results of the DEC reviews on average result in over $12.3 million in Civil Money Penalties,
$78.9 million in Recoveries and $5.9 million Directed Payments. Actions by the DEC ensure that
affordable housing is being preserved and that owners are aware that non-compliance is not to be
taken lightly.
Suspensions and Debarments: The DEC pursues suspension and debarment actions that result in
the exclusion of a sanctioned party from further participation in HUD procurement and non-
procurement programs and other Federal Government programs. Suspensions and debarments seek
to ensure the highest standards of professional conduct and ethical business practices by the Federal
Government's business partners. Annually, the DEC receives on average over 200 referrals resulting
in the DEC issuing 87 Suspensions, 145 Proposed Debarments and 146 Final Debarments in a
typical year.
38-5
RL(ja) 47-463 05/03/2022
269
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of Administration
SALARIES AND EXPENSES
(Dollars In Thousands)
I ,••·.• .• .••••• ··•·· 10%1~ f. <•. ··• :,: 2027 . • ·'· .\ .... .·
: :. ' 21)2~ ·•·· • ;\ \. :
..·... ·· ..
:. .. ', ... '/{ \i~i.ii. ~\
CR
•··.•· .·•·•
.·.· l'~tlll > ~~j, ;' ..l!ludiilli: ····
.·.. •
i'~I.
:
Personnel Services:
Personnel Services 77,473
°"'"
966 85,693 86,659 108,141 108,141
Common Distributable 969 200 3,430 3,630 . 6,500 6,500
Total, Personnel Services $78,442 $1,166 $89,123 $90,289 $114,641 $114,641
Non-Personnel Services:
Travel 827 15 845 860 . 2,100 2,100
Transportation of Things 361 361 361 . 440 440
Rent and Utilities 124,485 15 123,800 123,815 . 128,164 128,164
Printing 83 . 92 92 . 333 333
Other Services/Contracts 48,815 13,032 43,202 56,234 . 62,187 62,187
Training 2,627 189 1,250 1,439 4,448 4,448
Supplies 245 13 252 265 1,111 1,111
Furniture and Equipment 1,697 10 5,813 5,823 6,627 6,627
Claims and Indemnities 1 . 20 20 90 90
Tola!, Non•Personnel $205,500 $205,500
$179,141 $13,274 $175,635 $188,909
Services
Working Capital Fund 4,693 911 2,881 3,792 . 6,259 6,259
Carryover 15,351 . . . . .
Grand Total $277,627 $15,351 $267,639 $282,990 . $326,400 $326,400
FTEs 473 6 484 490 . 588 588
'Includes 2020 Carryover
PROGRAM PURPOSE
The 2023 President's Budget requests the consolidation of the Office of the Chief Administrative
Officer (OCAO), Office of the Chief Human Capital Officer (OCHCO), and Office of the Chief
Procurement Officer (OCPO) into a single funding line under the Office of Administration (OA). The
consolidation of the three offices will achieve unity of effort in administrative support activities while
maximizing resources necessary to support the Administration's goals and objectives. Harmonizing
the efforts of the three offices toward achieving common goals and objectives will reduce duplication
of effort and improve efficiency.
In August 2020, as part of the OA's effort to continue to streamline operations across its program
offices, improve efficiency and effectiveness of the offices and Department overall, the budget
functions and staff were consolidated into one budget office providing support across the OA. This
consolidation has standardized the financial planning, forecasting, formulation, execution, and
management of all budget functions across the OA allowing for efficient and effective budgeting. As
part of this continued effort, consolidating the three budgets into a single funding line will allow the
39-1
RL(ja) 47-463 05/03/2022
270
OFFICE OF ADMINISTRATION
OA to strengthen its fiscal governance and increase transparency and accountability. The focus on
the consolidation approach is to:
• Develop a unified strategic vision for the organization and the support provided to
the Department.
• Better align budget and policy objectives (e.g., performance-based budgeting).
• Design and maintain a strong framework of internal financial controls for managing and
reporting performance against budget and forecasts.
• Design a planning process that is effective and efficient to maximize the organization's
resources.
• Eliminate any duplicative and/or overlapping requirements.
• Establish flexibility to quickly address changing needs and requirements of the Department.
HUD's mission is critical to achieving the President's vision to ensure that we build back better from
the public health and economic challenges and address longstanding systemic challenges, including
racial injustice, rising inequality, and the climate crisis. HUD's work is essential to improving the
quality oflife of the American people, and this investment in the OA's salaries and expenses will
assist in ensuring that work is able to be done.
BUDGET OVERVIEW
The 2023 President's Budget requests $326.4 million for OA, which is $58.8 million more than the
2022 annualized CR level and $43.4 million above 2022 total funding. OA consists of the Immediate
Office of the Assistant Secretary for Administration (IOASA), OCAO, OCH CO, and OCPO.
With a focus on strengthening HUD's internal institutional capacity to deliver on mission, the Budget
increase is critical to address multiple areas that have gone underfunded for several years:
• Weaver Building Deferred Maintenance - The Headquarters building's systemic
infrastructure contains many failure points where systems are well past useful life and are
currently operating in a patchwork fashion. Although there are many critical needs, most of
the repairs will address obsolete infrastructure in the systems that deliver and filter the
Weaver Building's indoor air. Failure to replace obsolete systems creates operational risk
and vulnerability for all HUD employees. Given the indoor air quality lessons learned during
the pandemic, HUD believes it must complete these repairs to ensure workplace safety.
• Staffing - With a focus on recruiting, hiring, retention, and training the workforce, OA is
proposing to make an investment in staffing for its program offices. The additional staffing
will be focused in critical areas such as Freedom ofinformation Act and privacy (FOIA),
human capital services to support the Department's need to increase staffing levels, and
procurement services such as acquisition support and capacity to support the Housing
Assistance Program Support Service contracts, which will be the largest HUD acquisition
program.
Personnel Services (PS)
The Budget assumes $114.6 million for OA PS. The Budget supports 588 full-time equivalents
(FTEs), 98 FTEs above the 2022 total level and is comprised of 397 Headquarters (HQ) FTEs and
191 field FTEs. This request represents an increase of $24.4 million and 78 HQ FTEs and 20 field
FTEs from 2022. The funding also supports a 4.6 percent Federal pay raise.
39-2
RL(ja) 47-463 05/03/2022
271
OFFICE OF ADMINISTRATION
The OA will invest additional FTEs in the following areas:
• Implementation of the Department's anti-harassment program. This investment is required
to comply with the Equal Employment Opportunity Council's Management Directive
715 (MD 715), which mandates that Agencies must have in place an effective anti-
harassment program.
• Freedom of Information Act and Privacy services.
• Printing, Graphics, and Digital Mail services to address the changing dynamics of work in
this arena and improving the technical interaction with the Government Printing Office.
• Enhanced Program Office support and customer service in both the HQ and Field Support
Services. ·
• Acquisition support to address the rapid increase of Departmental procurement programs.
Common Distributable (CD)
The Budget assumes $6.5 million for OA CD. This represents an increase of $2.9 million from 2022
total funding. This funding provides for the Department-wide Transit Subsidy Benefits Program,
Student Loan Repayment Program, and Flexible Spending Account administrative fees. The increase
from the 2022 level will primarily support increased costs in the Transit Subsidy Benefits Program
as a result of the Department returning to anticipated post-pandemic commuting levels, additional
staff increases anticipated in 2022 and 2023, and anticipated inflationary cost increases.
Non-Personnel Services (NPS)
The Budget assumes $205.5 million for OA NPS. This represents an increase of $16.6 million from
2022 total funding. NPS investments include:
• $5.1 million for Weaver Building Deferred Maintenance and Modernization.
• $2.3 million for Digital Information Management to provide comprehensive digital asset
management contract support.
• $2.6 million for Future of Work efforts.
• $1.5 million FOIA/Privacy.
• $3.1 million for contracting efforts that support process improvement targeted at developing
strategies to reduce the time to hire, promote talent development and succession planning, and
develop evaluation strategies and human capital oporating objectives.
• Additional $2 million of funding is required to support inflationary increases to current
services contracts and also additional travel costs post pandemic.
Working Capital Fund (WCF)
The Budget assumes $6.3 million for OA contributions to the WCF. This represents an increase of
$2.5 million from 2022 total funding. The WCF funding level reflects payments for baseline WCF
services (including inflationary adjustments and changes in service utilization) and the additions of
the End-User Devices business line, the Printing Services business line, HR platform licensing, and
the full cost recovery ofFSADD Financial Management expenses.
Information Technology (IT)
Within the Information Technology Fund, the Budget requests funding for three OA projects:
Computer Aided Facility Management, Acquisition Tool, and Enterprise Case Management and
Workflow Platform (includes HireNOW initiative).
39-3
RL(ja) 47-463 05/03/2022
272
OFFICE OF ADMINISTRATION
• Computer Aided Facility Management - To continue OCAO efforts to support the acquisition
of a Computer Aided Facilities Management (CAFM) System through the implementation of
technology solution.
• Acquisition Tool - To meet OCPO immediate requirements for an Acquisition Management
Support System (AMSS) to achieve efficiencies in the Department's Procurement Program
and drive transparency and accountability across the entire acquisition lifecycle.
• Enterprise Case Management and Workflow Platform (includes HireNOW initiative)• To
continue OCHCO efforts to redesign and modernize HR services and strategic management
through the implementation of technology solutions.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification.
KEY OPERATIONAL INITIATIVES
OA will work to optimize service delivery and decision making to better meet customer needs
through the following three key operational initiatives:
Major Initiative: Improve Service Delivery of Administrative Support Services
• Spearhead effort to improve organization effectiveness by supporting restructuring of the
three subordinate organizations: Reach a "target organization" with fewer layers, larger
spans of control, and a more strategic distribution of grades through better position
management and natural attrition.
• Hiring - secure sufficient staff resources to support the workload.
• Enhance reporting, analytics, and evaluation of OA business practices.
• Improve space and rent efficiencies by modernizing HQ and reducing HUD's footprint.
• Continuity of Operations Program (COOP) operations and buildout.
• Establish Department wide Program Management business process improvements including
compliance with the Program Management Improvement Accountability Act (PMIAA).
Major Initiative: Improve Acquisition (Procurement Management)
• Prioritize hiring for the IT cadre and Ginnie Mae support divisions to increase the internal
capability to support the growing acquisition portfolios and bring acquisition assistance
requirements back in-house, resulting in a cost reduction to the Department.
• Prioritize hiring for Fort Worth that will support the Housing Assistance Program, which will
be the lai:gest acquisition program for the Department. This team also supports the Policy
Development and Research (PD&R) portfolio, which includes acquisition assistance
requirements previously outsourced to the U.S. Department of Health and Human Services
(HHS) Program Support Center (PSC).
• Increase capacity within the Acquisition Liaison Unit (ALU) to provide consultation services
for the development of requirements documents and supporting artifacts. Improving the
quality ofrequirements documentation has been identified as a key contributor to reducing
delays in the acquisition process, which will directly impact streamlining acquisitions and
reducing procurement lead times.
• Ensuring an acquisition staff that is properly resourced, trained, and equipped to support
the mission of HUD is paramount to meeting Departmental goals and Administration
priorities. Increased funding strengthens the acquisition programs at HUD, properly
resourcing the OCPO to support the entirety ofHUD's procurement needs, reducing the
reliance on outsourcing of contracting support at a significantly higher cost, and training the
acquisition workforce to ensure they are equipped with the knowledge and skills necessary
to support the Department's acquisition programs.
39-4
RL(ja) 47-463 05/03/2022
273
OFFICE OF ADMINISTRATION
Major Initiative: Improve Hiring Process & Develop a Workforce for the 21•' Century
• Develop a Workforce Strategy encompassing all actions taken to acquire, retain, develop,
engage, and deploy HUD's human capital. This strategy is a whole-of-workforce plan that
extends over the employment life cycle.
• Execute strategies to increase the quality of candidate referrals and streamline hiring
processes, including improving program office partnerships and initiating the use of shared
vacancies, position descriptions and certificates.
• Create alignment between hiring forecasts and budget cycles to "get ahead" of hiring and
identify and prepare for future needs in advance by creating a cycle to review existing
skillsets and position descriptions.
• Increase employee accountability and engagement by building a performance culture which
embraces innovation, diversity, and inclusiveness.
• Improve workforce and succession planning strategies.
• Enhance reporting, analytics, and evaluation of OCH CO business practices.
• Enhance recruiting and succession planning through the utilization of tools designed to
create a positive HUD brand and facilitate participation at recruitment fairs, utilize direct
hiring authority, as appropriate, and strengthen the selection process.
• Embed diversity, equity, inclusion, and accessibility into all aspects of the human resources
lifecycle.
• Reconfiguration of the Weaver Building, including construction/alteration of space, allowing
OCAO to be proactive in designing a workplace commensurate with the future of work.
• Address deferred maintenance backlog at HUD Headquarters (Weaver Building) to maintain
the health and safety of the workplace.
39-5
RL(ja) 47-463 05/03/2022
274
OFF!Cp; OF ADMINISTRATION
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Immediate Office of the Assistant Secretary for Administration
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services: $4,137 $4,137
Non-Personnel Services:
Travel 25 25
Training 40 40
Supplies 15 15
Total, Non-Personnel Services $80 $80
Grand Total $4,217 $4,217
FTEs 25 25
'Includes 2020 Carryover
PROGRAM PURPOSE
The Immediate Office of the Assistant Secretary for Administration (IOASA) provides management
and oversight to the Office of the Chief Administrative Officer (OCAO), Office of the Chief Human
Capital Officer (OCH CO), and Office of the Chief Procurement Officer (OCPO),
BUDGET OVERVIEW
The 202:3 President's Budget requests $4.2 million for IOASA. 'l'he Budget will support the
immediate staff of the Assistant Secretary for Administration, including consolidated Budget and
Administrative support functions and the establishment of a Program Management Office (PMO)
with a dedicated Program Management Improvement Officer (PMIO).
Personnel Services (PS)
The Budget assumes $4.l million for IOASA PS to support 25 FTEs, The funding also supports a
4.6 percent Federal pay raise. In addition to supporting the offices of the Assistant Secretary for
Administration and General Deputy Assistant Secretary for Administration, funding will support
the consolidation of budget and administrative functions for the Office of Administration (OA). In
August 2020, OA consolidated and streamlined the budget functions across all its program offices
into one Budget Office, This consolidation has standardized the financial planning, forecasting,
execution, and management of all budget functions across IOASA, OCAO, OCHCO, and OCPO,
Similarly, in 2022, OA is proposing the consolidation of administrative functions into one office, Both
the consolidated budget office and administrative office will report to a Deputy Assistant Secretary
for Operations,
89-6
RL(ja) 47-463 05/03/2022
275
OFFICE OF ADMINISTRATION
The Budget also funds four positions to establish a PMO with a dedicated PMlO to lead HUD
Program/Project Management (PM) policy and initiatives and ensure HUD compliance with the
Program Management Improvement Accountability Act (PMlAA).
The PMlAA (signed into law in 2016) requires that Agencies conduct annual portfolio reviews of
programs in coordination with the Office of Management and Budget (0MB) to ensure major
programs are being managed effectively, and that 0MB conduct reviews of areas identified by
the Government Accountability Office (GAO) as "high risk."
The formation of an enterprise level Program Management Office will enable HUD to:
a) Provide PM support for the Office of Administration.
b) Provide PM support for HUD Program Offices that lack qualified resources.
c) Provide an organization for the nurturing, mentoring, and coaching of new and
prospective PMs.
d) Provide an incubation organization to develop and implement PMlAA strategies.
The creation of a PMO within IOASA will improve PM activities throughout HUD.
Non-Pnsonnel Services (NPS)
The Budget assumes $80 thousand IOASA NPS. These funds will support the travel, training, and
supply requirements for the Immediate Office.
KEY OPERATIONAL INITIATIVES
IOASA will work to optimize service delivery and decision making to better meet customer
needs through the following key operational initiatives:
Major Initiative: Improve Service Delivery of Administrative Support Services
• Hiring - secure sufficient staff resources to support the workload.
• Enhance reporting, analytics, and evaluation of OA business practices.
• Establish Department-wide Program Management business process improvements,
including compliance with the PMlAA. Efforts will include:
o Leveraging a coordinated approach and governance structure that clarifies key
roles and responsibilities for senior leader engagement in strengthening P/PM and
establishes broadly applicable program management principles and standards.
o Conducting regular OMB/Agency Engagement and Reviews that hold managers
accountable, assess performance, and identify opportunities for improvement.
o Strengthening Program Management Capacity to Build a Capable PM.
o Workforce by better tracking HUD PM workforce and investing in building program
management capacity and capability over time through increased training
opportunities, career pathways, and mentorship opportunities.
• Proposed in 2022, the consolidation of administrative functions into one office. Both the
consolidated budget office and administrative office will report to a Deputy Assistant
Secretary for Operations.
39-7
RL(ja) 47-463 05/03/2022
276
OFFICE OF ADMINISTRATION
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of the Chief Administrative Officer
SALARIES AND EXPENSES
(Dollars in Thousands)
\it\'.\}\f }(( ··•·s\ )Alt~{ <~~, ~ttt_htt:'.h; ·.~~,. ~l:t? :r1,,
\ i'• . •,· .. !'. \,
<2~1·> , . •. .·...·.•.· ' • ,21122,. ; •·•· .. >, ' ... \.,. •.....
i \ mm, . •'.'.111~:;::.,
\J!lt3·. ···••·· •
·.
<
Personnel Services: $33,699 $250 $37,411 $37,661 $42,964 $42,964
Non•Personnei Services:
Travel 811 15 820 835 . 1,600 1,600
Transportation of Things 361 - 361 361 - 440 440
Rent and Utilities 124,485 15 123,800 123,815 - 128,124 128,124
Printing 80 - 77 77 - 283 283
Other services/Contracts 41,328 7,848 38,194 46,042 51,378 51,378
Training 25 50 50 433 433
Supplies 203 3 202 205 981 981
Furniture and Equipment 1,674 5,700 5,700 6,402 6,402
Claims and Indemnities 1 20 20 60 60
Total, Non•Personnel
$168,968 $7,881 $169,224 $177,105 $189,701 $189,701
Services
Working Capital Fund 2,155 388 1,058 1,446 2,684 2,684
Carryover 8,519 - - -
Grand Total $213,341 $8,519 $207,693 $216,212 $235,349 $235,349
FTEs 218 2 218 220 . 240 240
'2021 Actuals include 2020 Carryover
PROGRAM PURPOSE
The Office of the Chief Administrative Officer (OCAO) plays a critical role in supporting HUD by
providing a wide range of administrative services, including management and operation of buildings
nationwide, providing administrative services to all field offices, managing information throughout its
life cycle, overseeing HUD' s broadcasting services, and coordinating Agency responses to disasters
and emergencies.
BUDGET OVERVIEW
The 2023 President's Budget requests $235.3 million for OCAO, which is $27.7 million more than the
2022 annualized CR level and $19.l million above 2022 total funding. The increase primarily
accounts for Digital Information Management, Weaver Building Deferred Maintenance, Future of
Work effort, and inflationary increases for recurring contracts. Additionally, full-time equivalent
(FTE) growth is needed in the areas of Freedom of Information Act and Privacy services, Printing
Office, and Headquarters and Field Support Services.
39-8
RL(ja) 47-463 05/03/2022
277
OFFICE OF ADMINISTRATION
Personnel Services (PS)
The Budget assumes $43 million for OCAO PS to support 240 FTEs, representing 132 HQ
FTEs and 108 field FTEs. This represents an increase of $5.3 million to support 10 HQ FTEs
and 10 field FTEs from 2022. The funding also supports a 4.6 percent Federal pay raise.
OCAO will invest FTE resources in several areas to include:
• Continuity of Operations (COOP) and Emergency Management (EM) personnel to address
critical staffing shortage to perform the Department's national security functions.
• Freedom of Information Act (FOIA) and Privacy services to address critical staffing shortage
contributing to a backlog of work and putting the Department at risk of litigation.
• Printing, Graphics and Digital Mail services to address the changing dynamic of work in this
arena and improving the technical interaction with the Government Printing Office.
• Enhanced Program Office support and customer service in both the Headquarters and Field
Support Services.
This funding level reflects the transfer of six Disaster Management FTEs to the Executive Offices.
Also reflected is the realignment of three FTEs from the Office of the Chief Human Capital Officer
(OCH CO) to OCAO to establish the Personnel Security Division and approximately 16 FTEs to
establish the Immediate Office of the Assistant Secretary for Administration IOASA, as proposed
above.
Non-Personnel Services (NPS)
The Budget assumes total funding of $189. 7 million for OCAO NPS. This represents an increase of
$12.6 million from 2022 total funding. The increase primarily accounts for the critical maintenance
and repairs, compliance-related contracts, and funding inflationary increases for recurring contracts.
The majority of the increased funding will address:
• $2.3 million for Digital Information Management - Funding will allow OCAO to provide
comprehensive digital asset management contract support for incoming document
distribution, storage, transfers, retrievals, and disposition of Departments records and move
from a paper-based to digital process.
o Regulations and policies require many of HUD's records to be transferred to the
National Archives and Records Administration (NARA). The annual costs to store
and have access to these files average $5. 7 million. There are service contracts within
program offices to provide shredding and scanning services. They are a duplication of
functions, services, and cost. These functions and services could and should be
managed from an ent~rprise-umbrella application, resulting in improved
accountability of managed records & information and cost savings for the
Department. In addition, the system will bring HUD into compliance with
Presidential Directive M-19-21 Transition to Electronic Records, and NARA records
requirements outlined in the Federal Records Act.
o HUD plans to address critical infrastructure issues for scanning all incoming mail in
2023. It will implement a program to replace the manual consolidation, organization,
and delivery of paper mail with a document scanning, capture technology to digitize
and automate classification, and distribution of mail enterprise wide. The paperless
mail operation will provide security and efficiencies, reducing operational costs,
improving customer service, and saving money. With the digital mailroom solution,
manual labor costs are reduced due to less reliance on manual processes. Additional
39-9
RL(ja) 47-463 05/03/2022
278
OFFICE OF ADMINISTRATION
automation results in better productivity using less labor, and helps the Department
meet its 0MB M-19 Transition to Electronic Records goals.
• $5.1 million to address critical repairs for the Weaver Building Deferred Maintenance -
Under the Delegated Authority agreement for operating the Weaver Building, OCAO has
accumulated a deferred maintenance backlog of over $14 million due to limited funding to
address needs across multiple prior years. The Budget assumes funding to allow OCAO to
address some of these critical maintenance items. A list of these items is shown below.
• $2.6 million for Future of Work efforts (Major Alterations and Furniture and Outfitting at
the Weaver Building)~ Requested funds will address anticipated changes, alterations, and
outfitting required in the Weaver Building to provide for demolition and reconfiguration of
multiple work/collaboration/common spaces to accommodate the future of workspace
configuration.
• $1.5 million FOIA/Privacy - Contract support for staffing enhancements, automation,
projects, and audit remediation for FOIA and Privacy operations. These improvements will
allow for more vigorous enforcement of, and compliance with, existing policies and statutes,
and significantly reduce its risk profile, resulting in fewer audit findings and reducing
exposure to litigation.
• Additional resources for an increase in personnel and employees returning to the office in an
anticipated post-pandemic environment.
Weaver Modernization
In accordance with the November 2018 GAO report, Federal Real Property Asset Management,
GAO-19-57, OCAO has taken a risk-based approach to examine HUD's real property portfolios and
mitigate existing conditions which place strategic operations in high-risk categories. The risk
assessment revealed that HUD has both immediate and longer-term asset management risks that
lack base budget funding, but must be addressed. The identified risks are principally overdue
deferred maintenance of key Weaver infrastructure. Strategically resolving targeted key
infrastructure risk factors will allow HUD to reduce its near-term and long-term overall asset
management costs and provide for safer operations. HUD's real property portfolio responsibilities
consist of operations and maintenance responsibilities under a Delegation of Authority with GSA for
the Weaver Building.
The Weaver Building's systemic infrastructure contains many failure points with systems that are
well past useful life and operate in a patchwork fashion. In some cases, workarounds allow for
continued operations but create tremendous risk offailure. Most of the critical needs reside in the
building HVAC system. Now more than ever, in an atmosphere of deadly airborne pathogens, a fully
functioning HVAC system tops the list of essential building systems. The urgency of this situation
has already begun to manifest itself; in February 2022, failure of certain system components caused
system damage and costly repairs to the air handling unit. These antiquated systems are so
vulnerable that additional failures and system damage are highly probable.
In 2020, HUD was able to replace several obsolete isolation valves in the HVAC system as well
as refurbish the failing cooling towers. These much-needed repairs greatly increase the
effectiveness and efficiency of the system. In 2022, HUD will be able to complete $1.625 million
in critical repairs to the HVAC system infrastructure that maintains indoor air quality.
The Budget requests $5.1 million for critical infrastructure repairs that were identified in the 2022
President's Budget and are not assumed in the 2022 Annualized CR level. Most of the repairs will
address obsolete infrastructure in the systems that deliver and filter the Weaver Building's indoor
air. Failure to replace obsolete systems creates operational risk and vulnerability for all HUD
39-10
RL(ja) 47-463 05/03/2022
279
OFFICE OF ADMINISTRATION
employees. Given the indoor air quality lessons learned during the pandemic, HUD believes it must
complete these repairs to ensure workplace safety.
Priority Critical Deferred Need* Risk Cost
1 Replace nine Penthouse air return fans High $675,000
2 Replace Sub-Basement air fans High $600,000
Replace garage exhaust fan system and install unit that
3 High $350,000
ooerates on CO sensors
Replace loading dock exhaust fan system and install unit
4 High $150,000
hat onerates on CO sensors
Replace electrical motor control centers in north and south
5 High $1,100,000
Penthouse
6 Convert three chillers to R-134 refrigerant High $1,308,000
7 Replace garage air handler units High $120,000
8 Replace north and south lobby air handler units High $440,000
9 Increase UV light system in air handlers High $400,000
Total $5,143,000
*Originally identified in 2022 CJ.
Working Capital Fund (WCF)
The Budget for OCAO's contribution to the WCF is $2. 7 million. This represents an increase of $1.2
million from 2022 total funding (carryover and new authority). The WCF funding level reflects
payments for baseline WCF services (including inflationary adjustments and changes in service
utilization) and the additions of the End-User Devices business line, the Printing Services business
line, HR platform licensing, and the full cost recovery of FSADD Financial Management expenses.
Information Technology (IT)
Within the Information Technology Fund, the Budget requests $800 thousand for the Computer
Aided FPcility Management.
Program Pain Point
The Space and Asset Management Division (SAMD) experiences signillcant difficulty managing,
evaluating, and maintaining information on spatial data and space-related information on the HUD
Headquarters facilities in the National Capitol Region. Critical information such as occupancy,
vacancy, square footage, space-type space assignments, and utilization rates are not currently
tracked or updated in an. accurate, efficient, or effective manner. ·
In addition, the two current systems: Federal Asset Management Enterprise System (FAMES),
HUD's inventory management system of record,) is limited in its operations; as well as the existing
39-11
RL(ja) 47-463 05/03/2022
280
OFFICE OF ADMINISTRATION
Administrative National Services Requests Supplies System (ANSRS), HUD's workplace ticket
request system of record, is antiquated.
Mission Benefits
SAMD will need to procure and implement a Computer Aided Facilities Management (CAFM)
system that would address and solve several problems and needs. The CAFM system would provide
a central repository for space information that can be easily accessed, queried, and analyzed with
real time, up-to-date data; and allow SAMD to manage HUD's portfolio of lease holdings and space
data effectively and efficiently. SAMD could easily track and update HUD's footprint in satellite
buildings/headquarters, manage personnel move/add/change tasks by name, occupancy and vacancy
data, floor plan drawing record management, project management, space reservation functionality,
and personal property asset management. Through algorithms, a CAFM system would generate
space utilization rates of usable square footage and identify areas that are not in compliance with
GSA's space utilization guidelines. SAMD would meet the overarching goal of space consolidation in
headquarters, thus reducing lease holdings in the DC area and reallocating funds saved from leased
space.
Target Functionality
• More efficient data retrieval and reporting, allowing SAMD to quickly analyze underutilized
spaces and target these areas for future reduce the footprint (RTF) projects
• Track and maintain property inventory within the CAFM's interactive and integrated floor
plan drawing environment. With simple pick-drag-and-drop functionality, property
assignments can easily be moved to new locations within the floor plan whenever an
employee move is conducted and updated, simultaneously and seamlessly updating the
inventory with new location information; and
• With the data collected and analyzed within a CAFM system, the SAMDSMB will be able to
improve its efforts in restacking the building and reorganizing space by Program Office with
the goal of collocating entire program areas on the same floor (if possible) and ensuring
adjacency opportunities with other Program Offices.
Projected Cost Savings
Integrating multiple modules into one CAFM system streamlines data management. The antiquated
ANSRS system fails to meet current business requirements causing time management issues and
decreased productivity. Retiring the FAMES application could save $570,000. Furthermore, reducing
underutilized leased spaces in HUD's portfolio can save millions of dollars in rent annually.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification.
KEY OPERATIONAL INITIATIVES
OCAO will continue to improve operations by organizing and delivering services more effectively
through the following operational initiatives:
Major Initiative: Improve Service Delivery of Administrative Support Service
• Hiring - secure sufficient staff resources to support the workload.
• Enhance reporting, analytics, and evaluation of business practices.
• Improve space and rent efficiencies by modernizing Headquarters and reducing HUD's
footprint.
39-12
RL(ja) 47-463 05/03/2022
281
OFFICE OF ADMINISTRATION
• Modernize the records management sphere at HUD and expand digital mail services to
support 21st Century Program Office workflow and communications needs and improve their
operating efficiencies.
• Begin strategic planning and implementation of HUD Forward initiatives.
Major Initiative: Develop a Workplace for the 21st Century
• The reconfiguration.of the Weaver Building including construction/alteration of space. This
allows OCAO to be proactive in designing a workplace commensurate with the future of
work. Space design must be flexible to accommodate changing workforce needs and create
an environment that is state-of-the art to recruit and retain the best talent.
Major Initiative: Modernizing Headquarters and Reducing HUD's footprint
• Address deferred maintenance backlog at HUD Headquarters. In addition to maintaining
the health and safety of the workplace, key maintenance issues must be addressed for the
Weaver Building, which is iconic and synonymous with HUD. Ensuring the building is one
that employees feel proud to work in plays a vital role in employee satisfaction. It is critical
that we address our maintenance issues to ensure that the building and its systems are
functioning correctly. Executing these repairs and replacing equipment will not only make
the building operate more efficiently, but it will also add to the longevity of our historic
headquarters.
Major Initiative: Enhancing Evaluation of Business Practices
• These initiatives in the proposed Budget will support the Department's Strategic Goal 5:
Strengthen HUD's internal capacity and efficiency to better ensure delivery of
HUD's mission on the ground.
• Improve service delivery in several areas (Unified Nationwide Telecommunications, Records
Management, FOIA, Privacy, Digital Mail and Scanning). These improvements include both
technological upgrades and contractual support. Our lines-of-business must be modernized
to keep pace with industry and planned innovative solutions. It will move OCAO forward in
providing world class customer service to HUD-wide Program Offices to enhance their
operating efficiencies in furtherance of their missions and better support their distributed
workforce under the new HUD Forward operating construct.
• Support the Administration's priority of Empowering, Rebuilding, and Protecting the
Federal Workforce by prioritizing employee health and safety in workspaces around the
country. The 2023 Budget also supports the Administration's priority of Restoring Public
Trust in the Federal Government and Delivering Services Effectively and Efficiently
through Modernizing Public-Facing Websites, Digital Services, and Records
Management. Additionally, resources at these levels directly support the Administration's
Planning for the Future of Work effort.
39-13
RL(ja) 47-463 05/03/2022
282
OFFICE OF ADl\!lN!STRi\T!ON
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of the Chief Procurement Officer
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services: $19,795 $116 $19,937 $20,053 $29,006 $29,006
Non-Personnel Services:
Travel 75 75
Other services/Contracts 609 50 272 322 563 563
Training 199 39 39 475 475
Supplies 15 15
Total, Non-Personnel $1,128 $1,128
$609 $89 $272 $361
Services
Working Capital Fund 1,178 523 804 1,327 1,924 1,924
Carryover 728
Grand Total $22,510 $728 $21,013 $21,741 $32,058 $32,058
FTEs 116 109 110 153 153
•includes 2020 Carryover.
PROGRAM PURPOSE
The Office of the Chief Procurement Officer (OCPO) provides quality, timely, innovative, and
compliant acquisition and business solutions to support the creation of strong, sustainable, inclusive
communities and quality, affordable homes for all. OCPO is responsible for all matters related to the
Department's acquisition-related needs and activities, including managing the acquisition workforce,
in addition to conducting procurement activities. Procurement activities are conducted in:
Washington, DC; Atlanta, GA; Ft Worth, TX: Denver, CO; Chicago, IL; and Philadelphia, PA in
support of all HUD program offices.
BUDGET OVERVIEW
The 2023 President's Budget requests $32.1 million for OCPO, which is $11 million more than the
2022 annualized CR level and $10.3 million above 2022 total funding.
Personnel Services (PS)
The Budget assumes $29 million for OCPO PS to support 153 full-time equivalents (FTEs),
representing 101 HQ FTEs and 52 field FTEs. This request represents an increase of $9 million and
34 HQ FTEs and nine field FTEs from 2022. The funding also supports a 4.6 percent Federal pay
raise.
Given that OCPO is responsible for implementation of the Department's procurement program,
the requested Budget will resource OCPO at a level that will accomplish the following, which are
39-14
RL(ja) 47-463 05/03/2022
283
OFFICE OF ADMINISTRATION
directly aligned to the strategic goal to Strengthen HUD's internal institutional capacity to
deliver on mission:
• OCPO will maintain responsibility over the OA Contract Management Unit (CMU) in
Headquarters, which provides the contract oversight and Contracting Officer
Representatives (COR) for all program offices (Office of the Chief Administrative Officer,
Office of the Chief Human Capital Officer, and OCPO) within the Office of Administration
(OA) throughout the acquisition lifecycle. The CMU is the consolidation of the COR
function for OA under OCPO in order to achieve efficiencies and streamline processes.
• Increase capacity in the Acquisition Liaison Unit (ALU) from 6 to 11 FTEs to provide
supP,ort to program offices for development of requirements documents, government
cost estimates, quality assurance surveillance plans, and other requirements package
artifacts. This will also increase cost/price analysis support for the program offices and
contracting activities. Dedicated cost/price analysis support will help reduce risk when
developing budgets, acquisition cost estimates, and negotiating contract pricing with
bidders.
• Increase Capacity in the Information Technology Support (IT) Divisions from 11 to 21
FTEs to support complete execution and administration of the IT portfolio and bringing
out-sourced procurement actions back within the HUD portfolio to facilitate proper
oversight and prioritization. The enhancement of the IT cadre is part of the strategy to
directly address the mitigation of the Department's Top Management Challenges and
the remediation of several Office of the Inspector General (OIG) evaluation and audit
findings.
• Increase capacity in Fort Worth Contracting Office from 5 to 11 FTEs to support a new set
of contracts that will replace the current Performance-Based Contract Administrators,
which support the HUD-assisted multifamily housing portfolio. This will be the largest
HUD acquisition program once awarded. These services were acquired via cooperative
agreements in the past; however, by a Federal Court Order, these agreements are
contracts and must be awarded as contracts in accordance with the Federal Acquisition
Regulations. This will be a new set of contracts that OCPO is not currently resourced to
support. Additionally, the increased resources are required to support the Office of Policy
Development & Research and Housing contracts that were previously supported by
assisted acquisition, through the Health and Human Services Professional Services Center
which were terminated in 2019.
• Increase capacity in the Chicago Contracting Office from 7 to 11 FTEs in order to
support placement and administration of Enterprise-wide acquisition vehicles (category
management), including inspection services and studies - such as Rent Comp Studies -
in support primarily of Housing and Public and Indian Housing programs.
• Increase capacity in the FHA/Ginnie Mae Office from 11 to 14 FTEs to support the
sourcing of contracted services for Ginnie Mae, which will ensure OCPO has the internal
capacity and resources to support mission accomplishment and reduce risk in the Ginnie
Mae and FHA portfolio. Historically, HUD has had to use assisted acquisitions through
GSA or other shared service providers at a cost of four percent of the obligated amount,
and a flat fee of $120 thousand for consulting services per requirement. The additional
FTEs will allow HUD to avoid costs that equaled $16 million in 2020 and $11 million in
2021.
This funding level aligns OCPO to other Federal Departments and Agencies with a similar workload
based on the cost-to-spend ratio and achieves providing the resources needed to ensure the
Department's procurement program has the internal capacity to meet mission and support all the
39-15
RL(ja) 47-463 05/03/2022
284
OFFICE OF ADMINISTRATION
Department's programs. With the increasing mission of the Department and the focus on increasing
the availability of programs to the public, HUD's workload increased by 30 percent, as measured by
total number of procurement awards. This upward trajectory is anticipated to continue. To maintain
pace with an ever-growing acquisition workload, the Department paid approximately $11 million in
assisted acquisition fees in 2021 to support 70 procurement actions. The additional FTEs will allow
HUD to increase internal capability to reduce reliance on assisted acquisitions and provide resources
to support the implementation of an enhanced enterprise strategic sourcing and category
management strategy. The Agency-wide procurement strategy will result in more ofHUD's contract
obligations being under management, and will reduce the average time to procure. The Budget also
includes the realignment of four FTEs to the Deputy Assistant Secretary for Operations within
Immediate Office of the Assistant Secretary for Administration (IOASA).
Non-Personnel Services (NPS)
The 2023 Budget assumes $1.1 million for OCPO NPS. This request represents an increase of
$767 thousand from 2022 total funding. Funding at this level would allow additional funds for
increased and improved training of the acquisition workforce, which has been identified as a
critical need in HUD's internal r:isk assessment and OIG evaluation reports. Funding at this level
would allow OCPO to support the following NPS:
• Additional funds for training of the acquisition workforce, including contracting officers
and specialists, program project managers, and contracting officer representatives. Given
the increase in FTEs for OCPO, there is a need to provide certification training for the
new staff and continuous learning for all the staff to receive and maintain required
certifications and stay abreast of changes in Federal Government contracting.
Specifically:
o The increased funding will allow increased training opportunities for the FAC-
PPM certifications and continuous learning for the HUD program project
managers, which is consistent with the mandates of the Program Management
Improvement Accountability Act (PMIAA) and the Top Management Challenges.
o OCPO is requesting a $241 thousand increase over the 2022 level for contract
services. This increase is due to escalations in the cost of services and adjustments
to quantities resulting from OCPO' s increased staffing levels.
o The Budget includes a $436 thousand increase for training, $75 thousand for
travel, and $15 thousand for supplies. These increased funds will provide
sufficient office supplies for the staff and support items needed to promote a clean
and safe environment as well as other ongoing return-to-office needs.
o Increase Acquisition workforce training to improve the service delivery of OCPO
staff to program offices, increase the number of certified program managers in the
Department resulting in reduction of the current deficit in qualified program
managers according to the PMIAA, and continued training and
professionalization of the Department's CORs.
o Ability to fund contracted acquisition support services to provide surge support for
the Acquisition Liaison Unit and the Operational Contracting Offices in order to
address temporary capacity needs that do not warrant the onboarding of
permanent FTE. Having the additional resources/capacity will result in improved
acquisition documentation and reduced cycle times.
39-16
RL(ja) 47-463 05/03/2022
285
OFFICE OF ADMINISTRATION
Working Capital Fund (WCF)
The 2023 Budget assumes $1.9 million for OCPO's contribution to the WCF. This request represents
an increase of $697 thousand from 2022 total funding. The WCF funding level reflects payments for
baseline WCF services (including inflationary adjustments and changes in service utilization) and
the additions of the End-User Devices business line, the Printing Services business line, HR platform
licensing, and the full cost recovery of FSADD Financial Management expenses.
Information Technology (IT)
Within the Information Technology Fund, the Budget requests $1.76 million for the Acquisition Tool.
Program Pain Point
The HUD Acquisition Community is not often able to share and archive information, including
requirements documents (e.g., Performance Work Statements, Independent Government Cost
Estimates) with stakeholders in the form of a "one-stop-shop." Instead, documents must be shared
through e-mail exchanges and stored on a share drive and other repositories that contains
information for upwards of one thousand contracts. For the most part, SharePoint is currently used
across the enterprise; however, it is not a viable alternative as its limitations do not provide the in-
depth requirements for a fully functional acquisition management system.
In addition, the community lacks a secure electronic solution to conduct source selection evaluations
and protect proprietary source selection sensitive information. Furthermore, an overarching
dashboard is required to track key performance indicators to determine the effectiveness/efficiency of
acquisition operations across the enterprise. Microsoft Excel is currently used for this function;
however, it is not a viable alternative as it is static and neither efficient nor effective.
Mission Benefits
OCPO anticipates that value to the HUD Acquisition Community will be substantial and significant
as it will include the relative ease provided to the team of CORs performing contract oversight
functions as well as the provision of a central location for developing and maintaining a COR file for
each contract managed by the acquisition team. This ensures near full proof audit compliance with
an accurate account of data provided for each contract; effective and efficient management of the
source selection evaluation process; and an overarching dashboard that provides an accurate
assessment of the health of the acquisition system.
A fully operational Acquisition Management Support System (AMSS), Source Selection Evaluation
Management System, and Acquisition Dashboard will provide approximately 500 licenses. Therefore,
key members of the Integrated Project Team, Integrated Acquisition Team, including the team of
CORs, OCPO (Contracting Officer and Contract Specialist), Program Officials (FAC-P/PMs), Bud~et
Officials, and senior management within the organization will have access allowing for ease of
sharing information across different job functions in addition to the benefits previously discussed.
Finally, a successful rollout will bring agencywide advantages that will enable users to have real
time insights into how their program is performing across the enterprise and make course
corrections as necessary. This would significantly increase transparency of efforts and collaboration
across the enterprise while significantly reducing poor acquisition planning. One of the greatest
benefits will be the direct addressing of acquisition pain points thus resulting in the streamlining of
acquisitions across the enterprise. ·
39-17
RL(ja) 47-463 05/03/2022
286
OFFICE OF ADMINISTRATION
Target Functionality
An Acquisition Management Support System for HUD will result in:
• The Acquisition Community and its team of Contracting Officer Representatives (CORs) and
Program/Project Managers (P/PMs) being able to perform critical oversight function on key
requirements and contracts that support HUD operations and provide proper record storage
and retrieval of requirements and contract documents and deliverables.
• Effectively managing requirements planning processes, pre-award processes, source selection
evaluation management suite, post award data management including period of performance
(POP) and funding based on FY, user management; and
• Provision of overarching dashboard to track key performance indicators determining _the
effectiveness/efficiency or lack thereof of acquisition operations across the enterprise.
Projected Cost Savings
Compared to current processes, implementing the AMSS will allow HUD to recapture approximately
130,000 hours of staff time each year spread out across HUD's acquisition community. Time can be
redirected to higher value acquisition related activities, such as providing efficient and effective
acquisition management and improved processes ultimately reducing time to procure.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification. '
KEY OPERATIONAL INITIATIVES
Under the baseline and enhanced mission levels of funding, OCPO initiatives and priorities in
2023 will support the Department's Strategic Goal 5: Strengthen HUD's internal capacity and
efficiency to better ensure delivery ofHUD's mission on the ground. Staffing and non-
personnel funding will comprehensively align to Strategic Objective 5B: Improve Acquisition
(Procurement) N,[anagement.
• Prioritize hiring for the IT cadre and Ginnie Mae support divisions to increase the
internal capability to support the growing acquisition portfolios and bring acquisition
assistance requirements back in-house, resulting in a reduction in cost to the Department.
• Prioritize hiring for Fort Worth that will support the Housing Assistance Program, which
will be the largest acquisition program for the Department. This team also supports the
Policy Development and Research (PD&R) portfolio, which includes acquisition assistance
requirements previously outsourced to the U.S. Department of Health and Human Services
(HHS) Program Support Center (PSC).
• Increase capacity within the ALU to provide consultation services for the development of
requirements documents and supporting artifacts. Improving the quality of requirements
documentation has been identified as a key contributor to reducing delays in the
acquisition process, which will directly impact streamlining acquisitions and reducing
procurement lead times.
• Ensuring an acquisition staff that is properly resourced, trained, and equipped to support
the mission of HUD is paramount to meeting Departmental goals and Administration
priorities. Increased funding strengthens the acquisition programs at HUD, properly
resourcing the OCPO to support the entirety of HUD's procurement needs, reducing the
reliance on acquisition assistance at a significantly higher cost, and training the
acquisition workforce to ensure they are equipped with the knowledge and skills
necessary to support the Department's acquisition programs.
39-18
RL(ja) 47-463 05/03/2022
287
OFFICE OF ADMINISTRATION
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of the Chief Human Capital Officer
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services:
Personnel Services 23,979 600 28,345 28,945 32,034 32,034
Common Distributable 969 200 3,430 3,630 6,500 6,500
Total, Personnel Services $24,948 $800 $31,775 $32,575 $38,534 $38,534
Non-Personnel Services:
Travel 16 25 25 400 400
Rent and Utilities 40 40
Printing 3 15 15 50 50
Other Services/Contracts 6,878 5,134 4,736 9,870 10,246 10,246
Training 2,403 150 1,200 1,350 3,500 3,500
Supplies 41 10 50 60 100 100
Furniture and Equipment 23 10 113 123 225 225
Claims and Indemnities 30 30
Total, Non-Personnel
$9,364 $5,304 $6,139 $11,443 $14,591 $14,591
Services
Working Capital Fund 1,360 1,019 1,019 1,651 1,651
Carryover 6,104
Grand Total $41,776 $6,104 $38,933 $45,037 $54,776 $54,776
FTEs 139 3 157 160 170 170
'Includes 2020 Carryover.
PROGRAM PURPOSE
The Office of the Chief Human Capital Officer (OCHCO) provides leadership and direction in the
formulation and implementation of strategic human capital policies, programs, and systems to
promote efficient and effective human capital management for HUD. OCHCO represents HUD on
strategic human capital and human resources matters and plays a critical role in maximizing its
performance and assuring accountability with the Office of Personnel Management (OPM), Office of
Management and Budget (0MB), other Federal Agencies, Congress, and the public.
BUDGET OVERVIEW
The 2023 President's Budget requests $54.8 million for OCH CO, which is $15.8 million more than
the 2022 annualized CR level and $9. 7 million above 2022 total funding.
39-19
RL(ja) 47-463 05/03/2022
288
OFFICE OF ADMINISTRATION
Funding at the 2023 level will allow OCHCO to address HUD human resources (HR) challenges,
modernize human capital programs for the new world of work and next generation of Federal
employees, and continue to deliver effective services and solutions while instituting necessary
changes. In 2023, OCHCO will continue to focus on:
• Ensuring human capital planning processes enable HUD to hire and retain diverse top talent
with the right skills, in the right positions, and at the right time;
• Providing opportunities for continuous development and professional growth to meet HUD's
current and future mission needs;
• Embedding diversity, equity, inclusion, and accessibility principles within training and
development programs to support an inclusive culture in all HUD work environments;
• Developing a central HUD-wide knowledge management repository ofHUD's standard
operating procedures; and
• Improving operational efficiencies in service delivery with new technology investments.
OCHCO has identified HR challenges that impact its ability to deliver effective HR services and
solutions that enable the Department's mission. The requested funding level allows OCH CO to hire
additional staff to support the needs of the growing employee headcount of the Department, allowing
for human capital services to be supported effectively by OCHCO.
Included in the request is funding for OCH CO to establish talent teams in response to Executive
Order 13932, "Modernizing and Reforming the Assessment and Hiring of Federal Job Candidates."
The talent team will support continued modernization and maturation ofHUD's talent acquisition
and assessment capabilities and participate in newly created government-wide hiring improvement
teams to develop and share best practices and lessons learned, among other things, aligned with a
new OPM hiring line of business.
Increases from the 2022 annualized CR will enable HUD to implement new multi-year staffing
strategies, conduct workforce and succession planning efforts, and position management approaches
to reduce hiring timelines and improve budget and business planning. OCHCO will also continue to
streamline and implement new approaches to reduce time to hire, such as utilizing shared hiring
certificates, developing Department-wide position descriptions and vacancy announcements, and
integrating new candidate assessment capabilities shown to be better predictors for job performance
than self-report assessments. The increased funding will enable the implementation of a redesigned
HR business partner/program office model to improve strategic planning and to implement new data
analytics and visualization capabilities and technology-enabled solutions to improve data-driven
decision making, recruiting strategies, efficiency, customer service to program offices, and employee
experience.
The increase in funding will support OCHCO's ability to become strategic partners and implement
client-centric solutions to reduce the time to hire and retain employees. OCHCO will focus on
employee retention by revitalizing developmental programs, conducting strategic workforce and
succession planning, and developing competency models and career pathing focused on creating a
positive HUD journey for employees. Additional funding will also enable HUD to actualize a modern
approach to telework in a post pandemic environment and to track and monitor telework program
data with enhanced reliability to inform data-driven decision making and facilitate HUD
performance and employee engagement.
Personnel Services (PS)
The Budget assumes total funding of $32 million for OCH CO PS to support 170 full-time equivalents
(FTEs), representing 139 Headquarters (HQ) FTEs and 31 field FTEs. This is an increase of $3.1
million and 10 FTEs (nine HQ FTEs and one field FTE) from 2022. After the Department finalizes
39-20
RL(ja) 47-463 05/03/2022
289
OFFICE OF ADMINISTRATION
its HUD Forward plans, many positions may be eligible for remote work, which could impact the
HQ/Field split. The increase in funding also supports a 4.6 percent Federal pay raise.
OCHCO will utilize the additional FTEs to:
• Strengthen HUD's performance culture, workforce capacity, and workforce capability;
• Develop and implement client-centric solutions to not only reduce the time to hire but also
focus on retaining employees once they come onboard;
• Ensure OCHCO growth is commensurate with HUD-wide growth to manage and
administer HR programs with acceptable service levels;
• Ensure training and development programs are staffed. The current retirement eligibility
in the office exceeds 43 percent, driving serious succession planning and knowledge
management concerns as employees attrit. Additional hiring will better right-size the
organization and reduce risk; and
• Allow the Department to meet mandates laid out in Executive Order 13932 requiring
Agencies to establish talent teams to support development, validation, and maintenance of
hiring assessments for the Department.
Additionally, as reflected in the OA reorganizational proposal submitted in January 2022, this
funding level reflects the realignment of four Diversity, Equity, and Inclusion FTEs from OCH CO to
Office of Equal Employment and Equity Advance (OEEEA); three FTEs from the existing Personal
Identity Verification (PIV) Branch within OCHCO to establish the Personnel Security Division in
Office of the Chief Administrative Officer (OCAO); and the realignment of four FTEs to the Deputy
Assistant Secretary for Operations within the Immediate Office of the Assistant Secretary for
Administration (IOASA).
This Budget supports OCHCO's objective to operate as strategic partners to the Department's
programs and leaders, emphasizing a client-centric approach that allows for greater understanding
of the program offices and their workforce while impacting HUD across the enterprise.
Due to HUD's goal to increase the number of employees in support of its mission, the volume of work
performed by OCHCO has and will continue to grow. This growth includes ensuring sufficient
resources are available to support the hiring of temporary employees authorized under the various
recovery appropriations for program offices across the Department.
Increases in OCHCO hiring are also needed to support anticipated hiring increases HUD-wide in
2022 and 2023 based on pending appropriations and legislation that exceed previous years' hiring
projections.
Common Distributable
The 2023 Budget for Common Distributable is $6.5 million. This represents an increase of
$2.9 million from 2022 total funding. This funding provides for the Department-wide Transit
Subsidy Benefits Program, Student Loan Repayment Program, and Flexible Spending Account
administrative fees. The increase from the 2022 level will primarily support increased costs in the
Transit Subsidy Benefits Program as a result of the Department's returning to anticipated post-
pandemic commuting levels, additional staff increases anticipated in 2022 and 2023, and anticipated
inflationary cost increases.
Non-Personnel Services (NPS)
The 2023 Budget assumes $14.6 million for OCHCO NPS, an increase of $3.1 million from 2022 total
funding. OCHCO will utilize the additional resources to fund HR contracts that improve process
39-21
RL(ja) 47-463 05/03/2022
290
OFFICE OF ADMINISTRATION
improvement efforts targeted at developing strategies to reduce the time to hire, promote talent
development and succession planning, support the Hiring Assessment Line of Business, and develop
evaluation strategies and human capital operating objectives.
In addition to services provided under Common Distributable, OCHCO centrally funds human
capital and human resources services and management for the Department. Specific initiatives
slated for 2023 include but are not limited to:
• Development and implementation of a Senior Executive Service Candidate Development
Program;
• Department-wide implementation of a training program to support actions associated with a
positive culture focused on accountability and collaboration;
• Expansion of the new employee onboarding journey;
• Whole-person (career, nutrition, sleep) executive coaching;
• Job analysis and competency modeling to support development of customized selection
assessments targeting high-volume and mission critical occupations, and the development of
career paths/lattices for employee career development, reskilling, or upskilling.
Working Capital Fund (WCF)
The 2023 Budget for OCHCO's contribution to the WCF is $1. 7 million, an increase of $632 thousand
from 2022. The WCF funding level reflects payments for baseline WCF services (including
inflationary adjustments and changes in service utilization) and the additions of the End-User
Devices business line, the Printing Services business line, HR platform licensing, and the full cost
recovery of FSADD Financial Management expenses.
Information Technology (IT)
Within the Information Technology Fund, the Budget requests $1.75 million for the Enterprise Case
Management and Workflow Platform (includes HireNOW initiative).
Program Pain Point
HUD defines Case Management as a broad set of use cases that involve the intake of requests from
users and the fulfillment of those requests through a digital workflow process. An enterprise case
management platform will enable HUD to solve a variety of pain points that cut across different
program areas. Across HUD, there is limited ability to quickly stand-up workflow and case
management-based applications while simultaneously adhering to IT policies. This leads to:
"shadow IT'' solutions that are unsupported by OCIO or continued reliance on inadequate or non-
existent technology solutions. HUD plans to leverage the ServiceNow platform which will provide
HUD a common platform on which to create applications with robust security, privacy and policy
controls implemented centrally by OCIO. ServiceNow is a commercial cloud-based, low-code digital
workflow platform that provides the foundation on which to configure tailored applications to meet
specific business requirements, while other low-code technologies exist within HUD, ServiceNow is
best-suited to handle enterprise-wide internal case management and w'orkflow applications such as
HR functions, IT Help Desk, and Facilities Management.
The initial use case for case management and workflow platform will be address the lack of
automation and centralization of data for OCHCO for resolving HR related cases including employee
and contractor onboarding. The currently lack of a holistic IT solution for HR related cases leads to
data integrity issues, lack of an authoritative centralized source of HR data, limited reporting
capabilities, delayed time to hiring and onboarding employees and contractors, and inability for
analytics based continuous improvement. The pain points related to HR cases affects all HUD
employees and contractors and depresses the velocity at which HUD can operate across the board.
39-22
RL(ja) 47-463 05/03/2022
291
OFFICE OF ADMINISTRATION
Mission Benefits
This 2023 funding request will be a continuation of 2022 request ($2 million) and will be used to
deploy and mature a ServiceNow-based enterprise case management platform. By adopting an
enabling enterprise platform, HUD OCIO anticipates that it will be able to more quickly design,
build, and deploy a wide variety of applications to meet their customers tailored business needs. A
common platform that can be securely controlled and governed at the enterprise-level, while giving
program offices more direct control of business functionality of their applications will drastically
improve the speed and consistency of software delivery. Currently, case management functionality is
housed in disparate systems which drive numerous inefficiencies; an enterprise case management
platform will broadly consolidate licenses, infrastructure, development, and O&M costs and allow
HUD to build momentum in a focused and unified enterprise direction.
Each use case that will leverage the enterprise case management platform has its own mission
benefits that it will produce. In the HR Transformation use case described previously, it is expected
that HUD will be able to hire and onboard employees more effectively and efficiently helping HUD
deliver on its overall mission. Secretary Fudge has committed to rebuilding HUD's depleted
workforce which has lost 20 percent of its staff since 2012 and ServiceNow will help achieve this
human capital goal.
Target Functionality
• HUD envisions ServiceNow will become the standard platform to use for critical internal-
facing applications such as HR Case Management, IT Help Desk ticketing, Facilities
Management (Workspace Hoteling), and more.·
• The HR Transformation use case will provide an end-to-end holistic electronic onboarding
experience for new employees and contractors which will lead to dramatically shorter
onboarding times.
Proiected Cost Savings
The case management and workflow platform based on ServiceNow will be used for multiple new
business requirements needs as well as modernization of legacy systems. A single use case of
modernizing and retiring the Adaptive Case Management Suite (ACMS/eCase) is projected eliminate
$2.SM of O&M and license expense annually. This would not be considered a net reduction of costs
as the ServiceNow solution will incur similar (if not higher) annual O&M and licensing costs. HUD
will ultimately realize greater value through economies of scale - increased adoption of the platform
and more applications built upon it will consolidate HUD-wide licensing and O&M costs that are
currently distributed across several solutions.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification.
KEY OPERATIONAL INITIATIVES
OCHCO is actively looking at how to better align functions to achieve maximum efficiency, more
effectively meet business needs and enhance customer experience, which will impact strengthening
HUD's Internal capacity.
Realignments under consideration are:
• Establish an Office of Transformation that will focus cross-OCH CO/programmatic priorities
such as reorganizations, Voluntary Early Retirement Authority (VERA) and Voluntary
Separation Incentive Payments (VSIP), strategic planning and alignment, and data
management.
39-23
RL(ja) 47-463 05/03/2022
292
OFFICE OF ADMINISTRATION
o This team will work across OCH CO to identify streamlining opportunities for operational
efficiency gains, and provide internal growth and development opportunities for the
OCHCO staff.
• Establish a Safe Workplace Division reporting to the OCH CO front office that will cover
Anti-harassment and prevention of workplace violence under a single umbrella.
o This will include a conflict resolution center, housed in this office, to resolve conflicts at
the lowest level and facilitate alternate dispute resolution.
• Realign the employee focused programs from the Human Capital Services to the Office of
Performance Management, which is targeted at managing employee experiences such as
employee engagement, performance management, work life balance and Reasonable
Accommodation.
• Creating more functional alignment in the Office of Business Management and
Administration and better realignment of functions in the Office of Executive Resources and
the Office of Human Capital Services to effectively facilitate Departmental hiring for all
levels. OCH CO is currently collaborating on the best placement/structure for the Office of
Executive Resources.
• Breaking the Office of Recruiting and Staffing into two arms, one focused on performing
operational work efficiently and effectively (day-to-day staffing and classification) and one
focused on strategic planning and special programs and projects (triennial position
management review process, staffing forecasting planning, targeted recruiting for
underrepresented groups in the HUD workforce, intern and student hiring to support talent
pipelines, co=only filled, and hard to fill positions; the development of standardized HUD-
wide position descriptions where multiple program offices are filling the same type of
position; and the development of automation to streamline the hiring process).
OCHCO takes a strategic approach to addressing long-standing challenges with hiring, employee
accountability, employee engagement and inclusion, and succession planning. Funding will be used
to support OCHCO's ability to execute strategies to support priorities which include diversity, equity
and inclusion, workplace safety, workforce capability, workforce capacity, performance culture, data
analytics, and automation.
Major Initiative: Improve Hiring Process & Develop a Workforce for the 21st Century
• Develop a Workforce Strategy encompassing all actions taken to acquire, retain, develop,
engage and deploy HUD's human capital. This strategy is a whole-of-workforce plan that
extends over the employment life cycle;
• Execute strategies to increase the quality of candidate referrals and streamline hiring
processes, including improving program office partnerships and initiating the use of shared
vacancies, position descriptions and certificates;
• Create alignment between hiring forecasts and budget cycles to "get ahead" of hiring and
identify and prepare for future needs in advance by creating a cycle to review existing
skillsets and position descriptions;
• Increase employee accountability and engagement by building a performance culture which
embraces innovation, diversity, and inclusiveness;
• Improve workforce and succession planning strategies;
• Enhance reporting, analytics, and evaluation of OCH CO business practices;
• Enhance recruiting and succession planning through the utilization of tools designed to
create a positive HUD brand and facilitate participation at recruitment fairs, utilize direct
hiring authority, as appropriate, and strengthen the selection process; and
39-24
RL(ja) 47-463 05/03/2022
293
OFFICE OF ADMINISTRATION
• Embed diversity, equity, inclusion and accessibility into all aspects of the human resources
!ifecycle.
OCHCO is focused on reducing the time to hire and developing strategies to manage high voluntary
attrition rates, both of which have historically negatively impacted staff levels at the Department.
Non-retirement Voluntary Attrition Rate
Average time to Hire (days)
FY19 FY20 FY21
140.1 143.3 123.5
Strategies implemented during 2021 resulted in a reduction in overall time to hire by approximately
14 percent against 2020 timeframes. Additionally, OCH CO has developed analytical tools, such as a
Business Intelligence Dashboard that illustrates descriptive data pertaining to attrition and staffing
and classification timelines, providing transparency into the hiring process and ensuring focus across
the Department to move hiring actions timely.
Moving forward, several strategic initiatives are planned to reduce the time to hire and manage
voluntary attrition. For example, in 2022, OCH CO began implementing a multi-year staffing model
that encourages offices to develop forward thinking staffing plans in line with the budget cycle.
Additionally, OCH CO plans to implement targeted recruitment strategies to ensure diversity,
equity, and inclusion within our portfolio.
These initiatives are dependent on receiving sufficient resources to allow staff to operate with a
proactive, strategic focus versus simply keeping up with the increasing hiring demands across the
Department.
In order to assist the Department in strengthening HUD's internal capacity, OCHCO is putting in
place business process improvement initiatives to ensure HUD meets its workforce challenges in
2023, to support its mission, and meet Departmental and Administration priorities. OCHCO's goals
to increase its headcount; formally establish and operate the workplace violence prevention/anti•
harassment program; and focus on diversity, equity, inclusion, and accessibility will support HUD's
mission at large. This also includes enhanced performance management, strategically reducing the
time to hire, development of retention and recruitment strategies, automating its processes and
developing robust dashboards to share information.
39-25
RL(ja) 47-463 05/03/2022
294
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of Field Policy and Management
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services: $52,523 $6,467 $52,502 $58,969 $2,477 $64,250 $66,727
Non-Personnel Services:
Travel 126 450 450 650 650
Transportation of Things 6
Rent and Utilities
Printing
Other Services/Contracts 981 1,435 1,435 1,220 1,220
Training 110 65 65 80 80
Supplies 3
Furniture and Equipment
Claims and Indemnities
Total, Non-Personnel
$1,227 $1,950 $1,950 $1,950 $1,950
Services
Working Capital Fund 2,388 1,097 1,097 2,723 2,723
Carryover 7,564 5,200 5,200
Grand Total $63,702 $7,564 $59,652 $67,216 $5,200 $66,200 $71,400
FTEs 331 38 307 345 14 360 374
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Field Policy and Management (FPM) provides national and local strategic leadership,
direction, oversight support and operational responsibilities for the Department's 64 Regional and
Field Offices, located across ten national regions. FPM supports the priorities of the Secretary and
Administration across the United States and its territories and serves as the first point of contact. for
HUD questions and concerns within communities. Additionally, FPM maintains partnerships with
other Federal agencies, as well as state and local governments, elected officials, community members
and other stakeholders.
FPM's staff perform critical functions that support the Department's programs, strategic goals, and
initiatives. FPM's core activities consist of:
Stakeholder Engagement and Analytics: Responding to customer inquiries and
improving the customer experience, managing and directing field communications,
conducting community outreach and public relations; coordinating and liaising with
Congressional, state, and local elected officials; supporting disaster planning, response and
recovery efforts; collecting customer feedback and evaluating customer engagements to
40-1
RL(ja) 47-463 05/03/2022
295
OFFICE OF FIELD POLICY AND MANAGEMENT
improve data analysis and better deliver on organizational goals and performance
management.
• Strategic Initiatives and Economic Empowerment: Overseeing compliance and
monitoring of Federal prevailing wage requirements applicable to HUD-assisted and insured
housing and community development programs covered under the Davis-Bacon and Labor
Standards and Related Acts (DBRA) and Section 3 of the HUD Act of 1968; executing
program coordination and support for program offices including Housing, Public and Indian
Housing (PIH), Community Planning and Development (CPD), as well as other cross-
programmatic and Departmental initiatives, including increasing homeownership,
preserving affordable housing, and integrating healthcare and housing as part ofHUD's
mission to provide safe, quality, sanitary, affordable and fair housing. Other initiatives
under this activity include activities to expand housing opportunities for underserved
Americans by reducing homelessness, increase awareness of our nation's fair housing laws,
expand racial justice and equity, promote worker empowerment and economic opportunity
and guide investment in climate resiliency.
• Operations and Risk Management: Ensuring consistent, responsive, and reliable field
leadership, actively support workplace safety and engagement; establish strong and
coordinated leadership through Headquarters to provide efficient and effective oversight of
operations and administrative functions, to include human capital management, budget
execution and risk management.
BUDGET OVERVIEW
The 2023 President's Budget requests $66.2 million for FPM, which is $6.5 million more than the
2022 annualized CR level. The Budget reflects total funding (carryover and new authority) of $71.4
million, $4.2 million above 2022 total funding. Funding at this level is critical to the achievement of
the Department's mission and the President's vision to ensure that the Nation builds back better
from the public health and economic challenges, and address long-standing systemic challenges,
including racial injustice, rising inequality, and the climate crisis.
FPM's leadership and presence across the United States and its territories directly affect the
successful execution and monitoring of HUD programs. Through FPM's outreach and relationships
with local stakeholders, the Department can effectively deliver on its mission and improve the
overall customer experience for the people we serve in the communities where they live and work.
Personnel Services (PS)
The 2023 Budget assumes $66. 7 million in total funding for FPM PS, $7.8 million above 2022 total
funding. This funding level supports 37 4 full-time equivalents (FTEs), an increase of 29 FTEs over
the 2022 total FTE level. This funding level supports salaries and benefits, to include support for a
4.6 percent Federal pay raise, for staffing necessary to increase FPM's presence in the community
and improve overall customer experience in line with Executive Order 14058 (Transforming Federal
Customer Experience and Service Delivery to Rebuild Trust in Government). Funding at this level
will allow FPM to continue to backfill critical vacancies and establish additional management and
staffing capacity to assist in mitigating identified risks, address unmet needs, support Departmental
strategic goals and key operational initiatives. A steady reduction in headcount over the last decade
has negatively impacted FPM's ability to drive critical mission priorities in the field. Increased staff
will allow FPM to improve service delivery that respond to our distinct internal and external
customers, partners from within and outside the Federal sector, and advance Secretarial initiatives
and the Administration's priorities.
40-2
RL(ja) 47-463 05/03/2022
296
OFFICE OF FIELD POLICY AND MANAGEMENT
Non-Personnel Services (NPS)
The 2023 President's Budget assumes $2 million in total funding for FPM NPS, which equals 2022
total funding. The requested level supports activities such as: (1) continued travel for outreach and
monitoring; (2) training and other efforts necessary to support FPM's core portfolio; (3) customer
service; (4) executing Secretarial initiatives; (5) management and oversight of compliance activities;
(6) supporting disaster planning and response; and (7) strategic communications. FPM plans to
allocate an additional $200 thousand for travel and a minimal increase in training above 2022 levels.
As the country rebounds from the COVID-19 pandemic, it is expected that staff will increase
outreach, compliance, monitoring and other in-person collaboration. An estimated decrease of $215
thousand in other services is primarily attributable to a reduction in projected future year costs for
an electronic payroll subscription service to support Davis-Bacon staff as well as other support
contracts.
Working Capital Fund (WCF)
The 2023 President's Budget assumes $2.7 million in total funding for WCF, $1.6 million above 2022
total funding. The WCF funding level reflects payments for baseline WCF services (including
inflationary adjustments and changes in service utilization) and the additions of the End-User
Devices business line, the Printing Services business line, HR platform licensing, and the full cost
recovery of Financial Services Acquisition and Development Division (FSADD) Financial
Management expenses.
Information Technology (IT)
Within the Information Technology Fund, the Budget requests $600 thousand for Section 3
Reporting (S3R) and $1 million for NextGen Labor Standards (NGLS).
Program Pain Point
HUD is a major driver of infrastructure and job creation, and contributes to worker empowerment
and economic opportunities throughout the nation. The Department ensures that construction
workers are paid prevailing wages on HUD-funded development and administers programs that seek
to increase employment oflow and very low-income community residents. The Department uses two
systems for Section 3 and enforcement of the Davis-Bacon Related Acts: Section 3 Performance
Evaluation and Reporting System (SPEARS), and Labor Relations 2000 (LR2000).
Section 3 Reporting $600,000
The Section 3 program requires that recipients of certain HUD financial assistance, to the
greatest extent possible, provide training, employment, contracting and other economic
opportunities to low- and very low-income persons, especially recipients of government
assistance for housing, and to businesses that provide economic opportunities to low- and
very low-income persons. The Department recently finalized a new regulation for the Section
3 program, which requires a new system to capture statutory requirements from grantees
and contractors. Without having a working system for grantees, specifically Housing
Authorities, to report on Section 3, HUD cannot perform its statutory and regulatory
responsibilities to ensure compliance with the new rule.
NextGen Labor Standards (NGLS) $1.0 Million
The Office of Labor Standards Enforcement and Training (LSET) is responsible for HUD's
overall compliance with the Federal prevailing wage requirements applicable to HUD-
assisted and insured housing and community development programs covered under the
Davis-Bacon and Related Acts (DBRA). The current system, LR2000, is antiquated, non-
compliant, and must be replaced to close-out a longstanding audit finding by the Office of
Inspector General. LR2000 is non-compliant with cybersecurity standards because it is on an
40-3
RL(ja) 47-463 05/03/2022
297
OFF!CF: OF FIELD POLICY AND MANAGEMENT
outdated server and Operating System and is allowed to operate under a Risk-Based
Decision (RBD) Memorandum from the HUD's OCIO. The system will be replaced by the
Next Generation Labor Standards (NGLS) application. HUD is also unable to adequately
monitor grantees to ensure compliance with prevailing wage requirements. The current
statutory requirements ensure skilled workers are paid a fair wage to build the critical
infrastructure communities desperately need.
Mission Benefits
This funding will enable the Department to provide a reporting platform for approximately 5,000
grantees to report on Section 3 compliance, as well as for 7,000 contractors to report on DBRA
requirements. Both systems would enable the Department to meet statutory requirements and
assist grantees to empower low and very low-income workers, in addition to ensuring workers are
paid prevailing wages.
'l'arget Functionality
Reporting platform for approximately 5,000 grantees and 7,000 contracts to meet Section 3
Rule and DBRA reporting requirements.
• Integration with other HUD programs for Department-wide Section 3 and DBRA data
collection and analysis.
• Ability to generate and review reports for quality and accuracy, as well as enhanced
assessment of program effectiveness.
Projected Cost Savings
S3R and NGLS will significantly reduce staff hours required to complete manual processes and allow
for automated collection, analysis, reporting and enhanced assessments of program effectiveness.
Please refer to the Information Technology Fund justification for additional information regarding-
HllD's proposed IT resources for 2023.
KEY OPERATIONAL INITIATIVES
The Budget includes funding to address the operational, strategic, compliance, and reporting risks
impacting FPM's work in local communities. Funding at this level is critical to address human
capital risks impacting core workload, suecession planning, and improve overall customer
experience, and necessary to address information technology limitations and acquisitions to perform
FPM regulatory requirements for Davis-Bacon and Section 3 programs. The Budget also supports
the development and implementation of internal controls to address risks associated with FPM
leadership and local execution of cross-programmatic Departmental goals, Secretarial initiatives,
and FPM core activities.
As an adjunct of the Deputy Secretary's Office, FPM plays an instrumental role in the planning,
execution, and sustainability of cross-programmatic Departmental goals. Core FPM activities
correlate with strategic goals as follows:
40-4
RL(ja) 47-463 05/03/2022
298
OFFICE OF FIELD POLICY AND MANAGEMENT
FPM staff across the field lead and contribute to critical initiatives in advancing the Secretary's
priorities to fortify support for underserved co=unities and equitable community development for
all people; ensure access to and increase affordable housing; promote homeownership opportunity,
equitable access to credit for purchase and improvements, and promote wealth-building in
underrepresented communities; advance sustainable communities; and strengthen HUD's internal
capacity and efficiency to better ensure delivery of HUD' s mission.
Within each of FPM's core activities, FPM is collaborating with internal and external stakeholders to
launch, execute, and manage several cross-programmatic, high priority initiatives.
Requested funding levels will allow FPM to continue to play a critical role in support of the
Department's core mission with a particular focus on improving the customer experience by
enhancing strategic communications and overall service delivery.
40-5
RL(ja) 47-463 05/03/2022
299
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of Equal Employment and Equity Advancement
SALARIES ANO EXPENSES
(Dollars in Thousands)
Personnel Services: $2,900 $1,215 $2,300 $3,515 $1,439 $4,200 $5,639
Non-Personnel Services:
Travel 75 75
Transportation of Things
Rent and Utilities
Printing 2 2
Other Services/Contracts 292 300 300 427 427
Training 20 20 50 50
Supplies 20 20 5 5
Furniture and Equipment 60 60
Claims and Indemnities 50 100 150 28 28
Total, Non-Personnel
$292 $50 $500 $550 $587 $587
Services
Working Capital Fund 251 213 213
Carryover 1,265 1,439 1,439
Grand Total $4,708 $1,285 $4,239 $5,504 $1,439 $5,llOll $6,439
FTEs 16 7 12 19 7 22 29
"Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Departmental Equal Employment Opportunity (ODEEO) is proposing to rename its
office to the Office of Equal Employment and Equity Advancement (OEEEA). OEEEA is responsible
for ensuring compliance consistent with Federal regulations and statutes, including Title VII of the
Civil Rights Act of 1964, the Rehabilitation Act of 1973, and the Age Discrimination in Employment
Act, the Equal Pay Act, the Genetic Information Nondiscrimination Act, and the Notification and
Federal Employee Anti-discrimination and Retaliation (No FEAR) Act of 2002, Executive Orders and
HUD policies.
It is the responsibility of OEEEA to enforce the laws preventing discrimination and harassment
of employees and applicants for employment based on race, color, sex, religion, national origin,
age (40 and over), disability, protected genetic information, protected EEO activity, sexual
orientation, gender identity, and, to ensure that the Department functions to recruit, hire, train,
develop, promote, reward, and discipline for employees are conducted in a fair and consistent
manner, solely based on merit. OEEEA has nationwide responsibility for EEO Programs and
neutrally administers the process by which current and former employees and applicants for
employment may file an EEO complaint. OEEEA is responsible for planning, executing, and
implementing the Department's EEO/Affirmative Employment (EEO/AE) Activities pursuant to
41-1
RL(ja) 47-463 05/03/2022
300
OFFICE OF EQUAL EMPLOYMENT AND EQUITY ADVANCEMENT
the Federal Regulation at 29 C.F.R. §1614 and other management directives. OEEEA works to
proactively prevent discrimination and promote diversity and inclusion within the Department's
workforce.
OEEEA is responsible for Diversity, Equity, Inclusion, and Accessibility (DEIA) programs that
previously operated within the Office of the Chief Human Capital Officer (OCHCO).
BUDGET OVERVIEW
The 2023 President's Budget requests $5 million for the OEEEA, $761 thousand more than the 2022
Annualized CR level. The Budget reflects total funding of $6.4 million, which is $935 thousand above
2022 total funding. OEEEA continues to utilize technology to enhance services to our customers in
processing EEO complaints and the EEO complaints tracking database.
Personnel Services (PS)
The Budget assumes Personnel Services funding is $5.6 million an increase of $2.1 million. This
funding level allows OEEEA to maintain and backfill critical positions and to acquire needed
skillsets to increase OEEEA's efficiency in processing EEO complaints. This level supports 29 FTEs,
which is 10 FTEs above the 2022 total level. The additional FTEs are due to the annualized cost of
backfilling several vacant positions with ODEEO in 2022 and the transfer of four FTE from the
Office of the Chief Human Capital Officer due to the realignment of the Diversity, Equity and
Inclusion function to OEEEA. The Budget also supports a 4.6 percent Federal pay raise.
Non-Personnel Services (NPS)
The Budget assumes Non-Personnel Services funding is $587 thousand, an increase of $37 thousand.
This funding allows OEEEA to process EEO complaint cases, provide mandatory training for EEO
staff, and support EEO staff travel to train the HUD workforce on senior management initiatives.
Working Capital Fund (WCF)
The Budget assumes total funding of $213 thousand for OEEEA's WCF requirements, which is
$63 thousand above 2022 Annualized CR WCF requirements that were forward funded at the end of
2021. The WCF funding level reflects payments for baseline WCF services (including inflationary
adjustments and changes in service utilization) and the additions of the end-user devices business
line, the Printing Services business line, HR platform licensing, and the full cost recovery of
Financial Services Acquisition and Development Division (FSADD) Financial Management expenses.
KEY OPERATIONAL INITIATIVES
OEEEA's Budget is driven by the Secretary's priorities for the Department, especially strengthening
HUD's internal capacity and efficiency to better ensure delivery ofHUD's mission on the ground and
building a culture of respect and harmony.
OEEEA's focus will continue to be on ensuring the enforcement of Federal laws relating to the
elimination of discrimination in all the Department's employment practices proactively, preventing
discrimination, and resolving disputes early and at the lowest possible level.
41-2
RL(ja) 47-463 05/03/2022
301
OFFICE OF EQUAL EMPLOYMENT AND EQUITY ADVANCEMENT
Reorganization
Realignment of the Diversity, Equity and Inclusion function from the Office of the Chief Human
Capital Officer: As part of the administration's priority of ensuring diversity, equity and inclusion is
imbedded in the Department's mission, culture, and human capital lifecycle, and consistent with the
direction of Executive Order 14035, the function of the Diversity and Inclusion Office is performed
within OEEEA, which reports to the Deputy Secretary. This elevates the functions ofDEIA and
ensure that they are in alignment with the Department's strategic priorities and embedded in
activities of all offices. This realignment includes the position of Chief Diversity Officer and creation
of two divisions to better reflect these' expanded responsibilities. These divisions are:
• The Equal Opportunity Support Services Division to perform Alternative Dispute Resolution
functions and provide administrative support services.
• The Diversity, Equity, Inclusion, and Accessibility Division executes the functions previously
performed in the Office of Diversity and Inclusion, within the OCH CO.
41-3
RL(ja) 47-463 05/03/2022
302
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Administrative Support Offices
Office of the Chief Information Officer
SALARIES AND EXPENSES
(Dollars in Thousands}
Personnel Services: $46,569 $7,736 $42,443 $50,179 $11,000 $50,000 $61,000
Non-Personnel Services:
Travel 14 900 900 900 900
Transportation of Things
Rent and Utilities
Printing
Other Services/Contracts 6,871 6,003 10,000 16,003 15,096 15,096
Training 539 1,000 1,000 1,000 1,000
Supplies 11 100 100 100 100
Furniture and Equipment
Claims and Indemnities
Total, Non-Personnel
$7,435 $8,004 $10,000 $18,004 $17,097 $17,097
Services
Working Capital Fund 2,813 3,103 3,103
Carryover 15,740 11,000 11,000
Grand Total $72,557 $15,740 $63,443 $79,183 $11,000 $70,200 $81,200
FTEs 251 39 216 255 54 245 299
*Includes 2020 Carryover
PROGRAM PURPOSE
The mission of the Office of the Chieflnformation Officer (OCIO) is to enable delivery of HUD
programs, services, and management processes by providing high-quality information technology
(IT) solutions and services to its stakeholders. The OCIO is committed to modernizing HUD IT. The
OCIO is focused on the accomplishment of our programmatic goals to:
Enhance service delivery, assess IT workforce, and processes to align with HUD and OCIO
mission;
Create repeatable processes that streamline and improve OCIO through performance and
innovation; and
• Strengthen customer collaboration to deliver customer focused outcomes.
HUD's mission is critical to achieving the President's vision to ensure that we build back better from
the public health and economic challenges and address longstanding systemic challenges, including
racial injustice, rising inequality, and the climate crisis. HUD's work is essential to improving the
quality of life of the American people, and this investment in OCIO's salaries and expenses (S&E)
will assist in ensuring that work can be done.
42-1
RL(ja) 47-463 05/03/2022
303
OFFICE OF THE CHIEF INFORMATION OFFICER
BUDGET OVERVIEW
The 2023 President's Budget requests $70.2 million for the OCIO, which is $6.8 million more than
the 2022 annualized CR level. The Budget reflects total funding (carryover and new authority) of
$81.2 million, $2 million above 2022 total funding. The 2023 Budget supports OCIO's S&E
requirements to improve HUD's cybersecurity posture, support IT modernization, and increase
infrastructure operational services and IT support in HUD field offices.
Personnel Services (PS)
The Budget assumes total funding (carryover and new authority) of $61 million for OCIO PS,
$10.8 million above 2022 total funding, to support 299 full-time equivalents (FTEs), which reflects an
overall increase of 44 FTEs from 2022. The Budget assumes 244 FTEs in Headquarters and 55 FTEs
in the field offices. The funding also supports a 4.6 percent Federal pay raise. The FTE increases are
primarily due to the full effect of the annualized costing for the hires expected in late 2022 and to
improve HUD's cybersecurity posture to support:
• Headquarters Services for configuration management, incident response, continuous
monitoring, escalation, and incident/problem management;
Data Center for Engineering support services, incident response, DevOps support model
across Tiers 1, 2, and 3 services in Development, Integration, Test, Staging, Production, and
Disaster Recovery environments for associated Data Center and Cloud services;
• Operation Security for Continuous Diagnostic Monitoring (CDM) support services/incident
response;
• Unified Communications for network security engineers and network administrators; and
• Acquisition Management Branch to support OCIO's IT and S&E requisition activities by
balancing Contracting Officer's Representatives (CORs) workload and to improve OCIO's pre
and post contract award work activities.
Non-Personnel Services (NPS)
The Budget assumes total funding of $17.1 million for OCIO NPS, $907 thousand below 2022 total
funding. This funding level will maintain 2022 current services for contracts, travel, training, and
supplies. The slight decrease is due to increased staffing, which reduces OCIO's reliance on
contractor support to augment IT staff functions.
Working Capital Fund (WCF)
The Budget assumes total funding of $3.1 million for OCIO's WCF requirements, which is
$1.5 million above 2022 Annualized CR WCF requirements that were forward funded at the end of
2021. The WCF funding level reflects payments for baseline WCF services (including inflationary
adjustments and changes in service utilization) and the additions of the End-User Devices business
line, the Printing Services business line, HR platform licensing, and the full cost recovery of
Financial Services Acquisition and Development Division (FSADD) Financial Management expenses.
KEY OPERATIONAL INITIATIVES
OCIO's 2023 Budget will directly support the HUD Strategic Goals listed below:
1. Support Underserved Communities:
a. Enhance the quality, availability, and delivery of HUD information to citizens,
employees, business partners, and government.
42-2
RL(ja) 47-463 05/03/2022
304
OFFICE OF THE CHIEF INFORMATION OFFICER
b. Modernization efforts support both this priority and priority 2 below, as the Public
and Indian Housing (PIH) and Federal Housing Administration (FHA) programs will
be more effective and cost efficient as modernization initiatives are completed and
become operational. This allows these programs to further expand their services to
the public. The request also provides other areas to enhance the quality, availability,
and delivery of HUD information to citizens, employees, business partners, and
government.
2. Ensure Access to and Increase the Production of Affordable Housing:
a. FHA Modernization, which is a multi-year investment, will modernize FHA's
antiquated systems to align with industry technology improvements. While FHA has
long delegated significant underwriting and servicing authority to lenders,
technology now enables a "trust but verify" approach of granular monitoring and
oversight that better protects the taxpayer without placing an undue burden on FHA
personnel.
b. Subsidies and Inspection Modernization involves the migration to cloud-based
computing resources, automation of program-specific business rules, improved
information sharing through use of a common database model, and development of
inspection mobile application.
c. Grants Modernization improves the grants-making process by streamlining,
modernizing, and consolidating the legacy systems that support grant programs.
Currently, HUD operates multiple grants management systems on the Agency's
infrastructure. Additionally, HUD uses Grant Solutions, the shared software, as a
service operated by the Grants Center of Excellence at the Department of Health and
Human Services (HHS).
3. Strengthen HUD's internal capacity:
a. Promote an enterprise approach to Information Technology that will foster
innovation and collaboration.
b. Achieve excellence in IT management practices.
c. Transform the OCIO into a culture of operational excellence that can achieve current
and future Departmental goals.
d. Maintain the stability, quality, and availability ofHUD's core enterprise services and
the enterprise IT infrastructure supporting HUD's program offices, public facing
systems, and internal operations used in facilitating the fulfillment ofHUD's
mission.
e. Support the transition from maximum telework to hybrid and in-person work
through space modifications and system reconfiguration.
4. OCIO's proposed 2023 Budget will help execute Executive Order 14028, Improving the
Nation's Cybersecurity, by implementing new policies to protect the American people's
security and privacy:
a. Modernize Federal Government Cybersecurity: To keep pace with today's dynamic
and increasingly sophisticated cyber threat environment, OCIO must take decisive
steps to modernize its approach to cybersecurity, including increasing the visibility
into threats, while protecting privacy and civil liberties. HUD must adopt security
best practices, centralize and streamline access to cybersecurity data to drive
analytics for identifying and managing cybersecurity risks, and invest in both
technology and personnel to match these modernization goals.
b. Enhance Software Supply Chain Security: There is a pressing need to implement
more rigorous and predictable mechanisms for ensuring that products function
42-3
RL(ja) 47-463 05/03/2022
305
OFFICE OF THE CHIEF INFORMATION OFFICER
securely, and as intended. The security and integrity of "critical software" - software
that performs functions critical to trust - is a particular concern.
c. Improve Detection of Cybersecurity Vulnerabilities and Incidents on HUD Networks:
HUD shall employ all appropriate resources and authorities to maximize the early
detection of cybersecurity vulnerabilities and incidents on its networks. This
approach shall include increasing the visibility into and detection of cybersecurity
vulnerabilities and threats to agency networks in order to bolster HUD's
cybersecurity efforts.
Operational Risk:
OCIO's S&E resources are critical to ensuring HUD can perform mission critical functions related to
operations for IT systems and security. OCIO staff must be trained and aligned to fully support agile·
development processes. Business and program system owners must be trained to understand
requirements for coordination/participation in the development of HUD systems. HUD programs
may experience delays in implementation timelines and/or the development ofIT systems that do
not meet the organization's mission or operational requirements.
42-4
RL(ja) 47-463 05/03/2022
306
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Program Offices Overview
SALARIES AND EXPENSES
l·•.,i
'. ·.
.>' ,,;?
.. . ~~lll,/
.·• :;
.~f)~1~u<
}i:J!!
(Dollars in Thousands)
' > . .·\. . >to~·.. >.•. . '~···,'"'··'
·. <
.·.··:,·,.I\
<~R;;
.,.
. Total ..
• •~.•
1
1
'ii;~s
·,
.. ,
1'<:ltlll
Personnel Services:
$827,738 $24,904 $867,362 $892,266 $5,600 $1,002,118 $1,007,718
Non-Personnel Services:
Travel 297 500 2,908 3,408 . 5,161 5,161
Transportation of Things . . 6 6
Rent and Utilities 5 2 1 3 . 4 4
Printing 84 5 195 200 . 213 213
Other Services/Contracts 13,604 15,923 10,367 26,290 2,047 18,314 20,361
Training 1,946 670 3,283 3,953 5,165 5,165
Supplies 122 80 120 200 242 242
Furniture and Equipment 1 10 10 20 20
Claims and Indemnities 46 100 100 . .
Total, Non-Personnel
Services $16,105 $17,180 $16,984 $34,164 $2,047 $29,125 $31,172
Working Capital Fund 50,666 7,573 12,680 20,253 . 53,957 53,957
Carryover 49,657 . 7,647 7,647 . 2,000 2,000
Grand Total $1,087,200 $1,094,847
$944,166 $49,657 $904,673 $954,330 $7,647
FTEs 5,223 149 5,240 5,389 30 5,824 5,854
'Includes 2020 Carryover.
Program offices execute HUD's mission to create strong, sustainable, inclusive communities and
quality affordable homes for all. HUD is working to strengthen the housing market to: bolster the
economy and protect consumers; meet the need for quality affordable rental homes; utilize housing
as a platform for improving quality of life; build inclusive and sustainable communities free from
discrimination; and transform the way HUD does business.
HUD's mission is critical to achieving the President's vision to ensure that we build back better from
the public health and economic challenges from the COVID-19 pandemic and address longstanding
systemic challenges, including racial injustice, rising inequality, and the climate crisis. HUD's work
is essential to improving the quality oflife of the American people, and this investment in HUD's
programs will assist in ensuring that work can be done.
The 2023 President's Budget provides funding for six offices:
Office of Public and Indian Housing
• Office of Community Planning and Development
• Office of Housing
• Office of Policy Development and Research
• Office of Fair Housing and Equal Opportunity
• Office of Lead Hazard Control and Healthy Homes
43-1
RL(ja) 47-463 05/03/2022
307
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Program Office Salaries and Expenses
Office of Public and Indian Housing
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services: $212,034 $12,400 $239,475 $251,875 $263,100 $263,100
Non-Personnel Services:
Travel 39 1,468 1,468 500 500
Transportation of Things 6 6
Rent and Utilities 4
Printing 6 10 10
Other Services/Contracts 7,467 5,676 934 6,610 5,800 5,800
Training 1,179 1,179 1,180 1,180
Supplies 57 15 15
Furniture and Equipment 1 20 20
Claims and Indemnities 29
Total, Non-Personnel
$7,603 $5,676 $3,581 $9,257 $7,531 $7,531
Services
Working Capital Fund 21,675 15,269 15,269
Carryover 18,076
Grand Total $259,388 $18,076 $243,056 $261,132 $285,900 $285,900
FTEs 1,304 71 1,372 1,443 1,448 1,448
'Includes 2020 Carryover
PROGRAM PURPOSE
The central mission of the Office of Public and Indian Housing (PIH) is to provide nearly 8.5 million
of the country's most vulnerable households a safe, decent and affordable place to call home, while
simultaneously supporting the Administration's priorities to: strengthen and broaden the Federal
housing safety net for people in need; advance housing equity as a means to improving housing
choices and greater economic opportunity; strengthen HUD's internal institutional capacity to
deliver on mission; increase the production of and access to affordable housing; and promote climate
resiliency, environmental justice, and energy efficiency across the housing sector.
PIH currently partners with more than 8,700 PHAs and Tribally Designated Housing Entities
(TDHEs) serving 592 tribes, to: increase capacity; administer, operate, and modernize their housing
inventories; effectively manage their physical assets and financial resources; and facilitate programs
that provide supportive services to improve tenant outcomes and create strong, sustainable, energy
efficient, inclusive communities and quality affordable homes for all.
HUD's mission is critical to achieving the President's vision to ensure that we build back better from
the public health and economic challenges posed by the COVID-19 pandemic and address
longstanding systemic challenges, including racial injustice, rising inequality, and the climate crisis.
HUD's work is essential to improving the quality of life of the American people, and this investment
in PIH's salaries and expenses will assist in ensuring that work is able to be done.
44-1
RL(ja) 47-463 05/03/2022
308
OFFICE OF PUBLIC AND INDIAN HOUSING
BUDGET OVERVIEW
The 2023 President's Budget requests $285.9 million for the PIH Salaries and Expenses, which is
$42.8 million more than the 2022 annualized CR level. The Budget reflects total funding (carryover
and new authority) of $285.9 million, $24.8 million above 2022 total funding. In 2021 and 2022 PIH
implemented a three-pronged approach to addressing hiring which included recruiting talent,
sustaining the workforce, and future hiring. In 2023 PIH will continue to utilize its hiring strategies
to recruit talent which culminated in a net gain of 67 employees at the beginning of 2022, the highest
number of employees since 2016 and growing, while focusing on the second prong which is sustaining
the workforce. PIH improved the time it takes to hire without losing quality of candidates by putting
into place hiring strategies such as special hiring authorities, recruiting strategies, improving job
announcements, and implementing aggressive follow-up. In addition, PIH instituted and enforced
accountability techniques into the timelines to ensure the selection of the right candidates were
made expeditiously. Putting in place these hiring strategies was only the first step in successfully
delivering Congressional initiatives. In 2023, PIH is focusing salaries and expenses on sustaining
staff levels required to support the Administration's commitments to increased access to affordable
housing and promote climate resiliency, environmental justice, and energy efficiency to build
inclusive communities as well as to support emergency housing funding and programs authorized by
the American Rescue Plan Act (ARP Act) of 2021 that will extend beyond the years of availability
and become part of the baseline program. Once PIH has shown a continued commitment to recruit
and sustain employees in 2022 and 2023, the final step-or third prong-of PIH's long-term hiring
strategy will be to secure additional funding in the future years beyond 2023 to maintain the
workforce and continue to meet the Administration's priorities.
Personnel Services (PS)
The Budget assumes total funding of $263.1 million, $23.6 million above the 2022 annualized CR
level, $11.2 million above 2022 total funding. The Budget supports 1,448 full-time equivalents
(FTEs), an increase of 5 FTEs above 2022 total FTE level. This Budget will sustain PIH at
approximately the same staffing level projected for 2022 while it also supports a 4.6 percent Federal
pay raise. The FTE allocations for each PIH program office will remain level and vacancies resulting
from transfers, retirements, and resignations will be administered based on the criticality of the
position to be filled and mission requirements. HUD has acknowledged that limited staff capacity in
PIH is a key risk for HUD and a priority focus area for HUD's Enterprise Risk Mitigation
Committee; that is also why PIH has implemented the three-pronged approach. As stated in the
Budget Overview, PIH's hiring strategy will sustain the work PIH has been doing to manage and
administer new initiatives that provide increased production of and access to affordable housing,
promote climate resiliency, environmental justice, and energy efficiency, and integrate healthcare
and housing.
The Office of Field Operations (OFO): OFO's FTEs in 2023 will support Departmental goals and
Federal government priorities by monitoring and providing technical assistance and guidance to
approximately 3,700 public housing agencies (PHAs). Local OFO employees are the first point of
contact for PHAs, residents, political officials, State and local government officials, and community
stakeholders. OFO's current staff is spread across HUD headquarters and 44 field offices. OFO will
carry out its existing responsibilities to: provide oversight and monitoring to improve PHA
performance and enhance the quality of public housing; partner with PHAs to evaluate occupancy
challenges and implement mitigation strategies to reduce long-term vacancies; increase HCV
utilization and public housing occupancy to directly aid in the Departmental goal to increase access
to affordable housing for more families; assist PHAs with disaster management and recovery; and
manage and oversee the shortfall prevention, recovery, and transformation of troubled and
44-2
RL(ja) 47-463 05/03/2022
309
OFFICE OF PUBLIC AND INDIAN HOUSING
substandard PHAs faced with receiverships, monitorships, default, financial insolvency, and
substandard housing.
The OFO portfolio has responsibility for new programs that have been established under the
American Rescue Plan (Emergency Housing Vouchers), a newly established funding opportunity for
Troubled and At-Risk PHAs, and a host of new administration priorities.
To mitigate further risk to OFO's ability to carry out the mission, for long-term sustainment, OFO
will need this staff to adequately manage the increased responsibilities and workload. Increased
staff will strengthen and broaden the Federal housing safety net by ensuring safe and high-quality
housing assets for people in need, while furthering the expectation that all HUD assisted individuals
and families have access to safe, decent, and affordable housing.
The Office of Native American Programs (ONAP): ONAP's mission is to: ensure that safe, decent,
and affordable housing is available to low- and middle-income Native American families; create
economic opportunities for Tribes and their residents of assisted housing; help Tribes plan
co=unity development; and ensure fiscal integrity in the operation of the programs. ONAP's FTEs
will effectively execute its core statutory and regulatory requirements.
ONAP essentially administers the full range of programs to Tribal communities that the larger HUD
administers to the general public. ONAP administers 17 programs dedicated to Native American
communities and three programs dedicated to Native Hawaiians residing in Hawaii. Since the
inception of the various programs, the ONAP workload has increased significantly. Additionally,
since 2020, the amount of funding administered by ONAP has increased by more than $1 billion.
Under normal circumstances, staff would manage seven grantees. ONAP manages 18 high-demand
grantees and nearly 58 grants at one time. With 50 percent ofONAP's staff being retirement eligible,
ONAP has utilized and embraced PIH's three-pronged approach of recruitment, sustainment, and
future hiring.
ONAP's FTEs have responsibilities that include administering the loan guarantee programs, to
include the possible expansion of the Section 184 service area nationwide, which consists of all Tribal
members regardless of where they purchase a home. In addition, the FTEs enable ONAP to focus on
potential weaknesses, such as fraud and abuse that were included in two recent audit reports.
In accordance with President Biden's Memorandum on Strengthening Nation-to-Nation Relations
and under the direction of Secretary Fudge, ONAP is preparing to launch HUD's first Tribal
Intergovernmental Advisory Committee. Additionally, ONAP is actively implementing the
Department's Tribal Consultation Plan of Actions, which calls for deeper engagement with Tribes.
ONAP continues to oversee its grant programs, which provides an opportunity to identify needs in
Indian Country and provide technical assistance. Prior to the COVID-19 pandemic, ONAP was able
to monitor less than 10 percent of these grantees annually and many grantees once every five years.
The long-term strategy for ONAP will be to increase this monitoring, hence the future hiring
strategy.
ONAP is assisting the Department of the Treasury (Treasury) with a number of its programs. For
example, ONAP is helping Treasury administer both the $800 million Emergency Rental Assistance
Program (ERAP) and the $500 million Tribal Homeowners Assistance Fund, as well as provide
technical assistance for the $28 billion in Coronavirus Relief Funds that have been allocated to
Tribes. HUD expects to continue to play a supporting role in 2022 and potentially into 2023 and
beyond.
ONAP approved 182 Training and Technical Assistance (TITA) in 2020, 195 T/TA in 2021, and has
already approved 223 T/TA in the first quarter of 2022. All of this has necessitated additional ONAP
44-3
RL(ja) 47-463 05/03/2022
310
OFFICE OF PUBLIC AND INDIAN HOUSING
staff expertise and system support, which we have been able to acquire and will continue to sustain
this requirement, both now and in the future as long as we continue to implement our long-term
hiring strategy. In just two years' time, ONAP now manages nearly twice as many programs. Each of
these programs has its own unique reporting requirements, grants administration demands, and
monitoring staffing needs. ·
The Office of Public Housing Investments (OPHD: OPHI requires continued growth in FTEs due to
a significant and unprecedented expansion in mission since 2020 that is attributable to the Office's
commitment to fully meet multiple Administration strategic priorities. Without a strong cadre of
FTEs, the expanded responsibilities pose a risk to OPHI' s ability to: deliver timely and effective
execution on Congressional appropriations; better serve the public in an era of continuing economic
recovery; and meet the Administration's ambitious goals.
The increase in OPHI's workload for review of funding applications, expanded requirements to
provide new guidance and rule changes in the timelines requested by Congress, as well as the need
for adequate monitoring and oversight of grants that pose great risk to OPHI' s ability to carry out its
mission. The long-term strategy for OPHI will be to mitigate risks in order to strengthen and
broaden the Federal housing safety net by ensuring safe and high-quality housing assets for people
in need, while furthering the implementation and operation of self-sufficiency programs designed to
advance economic opportunities for residents in HUD-assisted housing.
OPHI's needs for.continued growth in FTEs are due to specific program augmentations since
2019/2020:
• Capital Improvements to nationwide Public Housing portfolio: Continuing expansion efforts
toward the modernization, revitalization, and recapitalization of the nationwide portfolio of
public housing through capital development financing, as a result of initiatives authorized by
appropriations to the Public Housing Capital Fund program, as well as through management
of Section 18 and 22 applications and through public housing mixed-finance transactions.
Overall, public housing financing programs have witnessed at least a 20 percent increase in
magnitude since 2020. Specific to the Public Housing Capital Fund, the 2023 Proposed
Budget includes a 100 percent increase since 2019 in the size and complexity of competitive
funding for mitigating health hazards in public housing, as well as two entirely new
programs for 2023 focused on climate management in public housing: competitive funding
for utility efficiency/conservation ($176 million); and competitive funding for climate
resilience ($100 million).
• Self Sufficiency Programs: Continuing growth in existing Community and Supportive
Services programs, a key focus for expanded efforts to meet the Administration's priority for
enhancing equity and for increasing opportunities to build personal assets across lower
income communities nationwide. Specifically, the 2023 Budget includes: expansion in the
target grantee population for the Family Self Sufficiency (FSS) Program, along with a
50 percent increase in budget and grants management since 2019; and expansion in the Jobs
Plus Program, also widening the target grantee audience, with a 33 percent increase in
budget and grants management since 2021.
• Choice Neighborhoods: Continued expansion in the program size and complexity of the
Choice Neighborhoods Program, a critically important tool for neighborhood revitalization,
including specifically: development of a new specialized funding focus that will target
communities that have suffered from sustained economic disinvestment related to long-term
44-4
RL(ja) 47-463 05/03/2022
311
OFFICE OF PUBLIC AND INDIAN HOUSING
environ.mental contamination issues. The 2023 Budget of $250 million represents a 67
percent increase in program size and programmatic responsibility since 2020.
• Expanded MTW Program: 2023 will mark the fulfillment of the 100-PHA expansion in the
MTW Program, from 39 agencies to 139 since 2020. Administration of the MTW program,
and in particular the expansion, requires extensive coordination with PD&R's significant
research investment efforts. The 100-PHA expansion agencies are divided among five
"cohorts," each with a research focus on specific MTW flexibilities.
In 2023 OPHI will continue to develop, implement, and administer these new and expanded
programs that support the Administration's agenda to broaden housing opportunities and housing
choice, promote climate resiliency, environ.mental justice, and energy- and water-efficiency, and
create and expand communities of equity nationwide.
The Office of Public Housing and Voucher Program (OPHVP): In 2023, OPHVP has new initiatives
in both the HCV and Public Housing programs that are imperative to advancing the
Administration's priorities. OPHVP's FTEs enable the Housing Choice Voucher and Public Housing
Office to accomplish our goals in the Strategic Plan, Annual Performance Plan, and other
Administration priorities.
New initiatives in the HCV program include the following:
• Developing and implementing a new allocation of 200,000 vouchers that involves everything
from formula allocation to ensuring certain priority populations are served to budgeting and
policy documents.
• Creating a new mobility program targeted to lift families out of poverty. This is distinctly
different from our existing mobility program and needs significant resources to start-up from
program design to implementation, financing, quality assurance, and data analytics.
• Leading the effort with the Office of Field Operations to provide data analytics, technical
assistance, and support to ensure that the Housing Choice Voucher Program reaches 100
percent annual budget authority utilization by the end of 2023.
• Overseeing the implementation of the Emergency Housing Voucher program, which provided
70,000 vouchers to PHAs and requires a Continuum of Care partner to serve people
experiencing homelessness, those who are at risk of homelessness, and families fleeing
domestic violence. This novel program requires an intense amount of effort, oversight,
financial controls, and data analytics.
• Staffing specifically to address the new MTW agencies in order to ensure financial controls
and accountability under the new HCV program formula.
• Implementing the EVMS that is designed to ensure better financial controls and
transparency, as well as more timely and accurate data for sending out HAP and
Administrative fee payments.
New initiatives in the Public Housing program include the following:
• Implement expanded and new energy efficiency initiatives around Energy Performance
Contracts, Rate Reduction Incentives, Utilities Benchmarking and climate resiliency work.
• Implement cash management improvements to the public housing operating fund that allows
for better financial oversight and compliance with account-closing requirements, improved
accounting of pensions, liabilities, and program funds, as well as debt repayments, shortfalls,
and quality control efforts. This includes implementation of a General Provision that allows
44-5
RL(ja) 47-463 05/03/2022
312
OFFICE OF PUBLIC AND INDIAN HOUSING
for PHAs to retain public housing reserves when repositioning from public housing and for
those funds to be used for HCV purposes.
• Expand the Public Housing Quality Assurance team that is focused on continuing the
development of SOPs and related program guidance on the procedures to address the misuse
of public housing operating funds, financial management reviews, and collection activities.
Additionally, this team will continue to support the Public Housing Financial Management
Division for ongoing quality control activities to ensure improved accuracy of the operating
fund process.
• Working with the Office of Field Operations on an initiative to improve occupancy rates in
public housing.
Finally, OPHVP is the lead for PIH on major Administration priorities that are cross-cutting, such
as:
• The Affirmatively Furthering Fair Housing regulatory efforts.
• Re-Entry work that includes reviewing, modifying, and issuing guidance for regulations to
ensure housing access in PH and HCV programs for formerly justice-involved individuals.
• Implementing new legislative initiatives such as the Violence Against Women Act and
continuing closeout on the Cares Act, American Rescue Plan, and other pandemic related
activities.
• Assisting in the House America effort through programs such as ERV, HUD-VASH, and our
PH and HCV program preferences.
• Finalizing and implementing the two major Housing Opportunities Through Modernization
Act regulations that will both streamline and reduce burden across the public housing, HCV,
and multifamily programs as it relates to income calculations but also implements changes
to the project-based voucher program and Housing Quality standards that have been long-
awaited by the industry. The implementation is expected to be extensive and require not only
systems changes but extensive guidance and technical assistance.
The Office of Operations (OPS): OPS provides operational support to PIH's six program offices in
achieving the Administration's priorities and executing the Department's goal of strengthening
HUD's internal institutional capacity and efficiency to deliver on mission. Staff provide the
foundational support functions of budget, financial management, auditing, accounting, funds control
and execution, oversight, procurement, human resource, training, performance management, and
policy. OPS manages and performs budget execution and formulation responsibilities for PIH's
$40. 7 billion budget stemming from Congressional and Presidential initiatives, and ARP funding
programs. Additionally, OPS is responsible for the oversight of approximately 1,400 employees, while
projecting to hire an additional 200, including backfills, which requires on-boarding needs and hiring
actions involving validating the need, position classification, job analysis, succession planning, and
retention initiatives for all of PIH. OPS employees are responsible for PIH's contract management,
cooperative agreements, data analysis and reporting, evaluation and assessment, technical
assistance oversight, reverse auction program, indirect cost rate analysis, PIH training, and
professional development programs. OPS provides the necessary expert advice and guidance to
program offices to expedite procurements, contracts, and technical assistance inquiries. Finally, OPS
develops and conducts proactive trainings for managers and supervisors with the objective of
avoiding future litigation and provide oversight of settlement and litigation expenses with the intent
of reducing the costs associated with those actions.
The Real Estate Assessment Center (REAC): In 2023 REAC staff will support the expansion of on-
site and remote collection of information related to the physical condition and performance of HUD
housing. This includes the environmental assessment capability as described in the Financial and
Physical Assessment (FPA) justification, specialized collectors for fire safety, structural, resident
44-6
RL(ja) 47-463 05/03/2022
313
OFFICE OF PUBLIC AND INDIAN HOUSING
safety and security and related health or safety risks, and additional quality assurance staff to
ensure the overall quality of the inspection, collection, and assessment program. With the increase in
data and information coming to HUD through these enhanced assessments, staff will conduct
research, analysis, and evaluation of program outcomes using evidence-based and scientific
principles, which will enhance HUD's capabilities to review assessment and other key performance
and risk data and trends across HUD programs resulting in real-time inputs to decision makers
throughout the Department. Further, to fully realize the benefits of the modern digital technology, in
collaboration with HUD's OCIO, we will modernize REAC's governance and business processes in
accordance with EO14058 Transforming Customer Experience and Service Delivery, EO13707 Using
Behavioral Science Insights, the OPEN Government Data Act, and the Evidence Act.
In 2023 REAC will hire inspectors and other specialized assessors (e.g., inspectors/assessors with
training and certifications in evaluating environmental hazards, structural engineering concerns).
This will enable REAC to address key risks to HUD's portfolio which may otherwise go unidentified
as those conditions are outside the scope of a traditional inspection, to avoid delays in identifying
problematic conditions or inconsistencies in the risk profile of housing properties which places
residents at increased risk of injury or death or of properties becoming substandard or financially
unsound. Collection and assessment of data is only one step of the process and effectively translating
into actionable insights is another step. REAC staff will support system and business process
enhancements and ensure HUD has the ability to make use of modern, efficient technology, to scale
collections or analyses and make data flowing from these processes understandable, open, and
accessible so that all parties have equitable access to improve outcomes for the millions of families
within these programs.
Non-Personnel Services (NPS)
The Budget assumes total funding of$7.5 million for PIH's NPS, $1.7 million below the 2022 total
funding level. The Budget for NPS is the result of refocusing PIH's dependency on contract services
and moving towards maximizing resources to fund increasing FTEs to support the Administration's
housing goals. The proposed 2023 funding level provides $5.8 million for contracts, an overall
decrease of $810 thousand when compared to the 2022 total funding level of $6.6 million. The
decreased funding will support assistance and advisory services, audits, technical assistance,
program oversight, monitoring and analysis, risk mitigation, and system sustainment and
maintenance to provide continued support to programs that strengthen HUD's internal capacity and
efficiency consistent with the Administration and Departmental goals. Due to the pandemic, staff did
not conduct onsite monitoring and inspections, provide in-person technical assistance, or conduct in-
person consultations during most of 2020, all of 2021, and in a limited capacity for 2022. Funding for
travel is decreased by $968 thousand from the 2022 funding level. The decrease in travel funding
was realigned to support personnel employment and development costs.
OFO; Funding request for OFO procurement actions will support specific activities associated with
PHAs in receivership as well as troubled and high-risk PHAs. Contract support is needed to provide
staff to serve in a variety of positions including as a HUD-assigned Recovery Administrator, key
management positions, and other PHA positions to accomplish tasks and activities associated with
chronic performance issues. For receivership, troubled, and high-risk PHAs, services will include
activities such as property/asset management, functions associated with occupancy and unit
turnaround, maintenance and modernization, capital planning, financial management, procurement,
resident services, and tenant file management. Contract support will help to ensure PHA's are
meeting intended goals and decrease the amount of time a PHA is in receivership, troubled, or
substandard status.
ONAP: Funding request will support ONAP's need to enter into a contract to assist with the
awarding and administration of the IHBG Competitive NOFO process. In prior years, Congress
provided a dedicated source of S&E funding for administration and oversight of the IHBG
Competitive program by authorizing HUD to set-aside and transfer one percent of funding from the
44-7
RL(ja) 47-463 05/03/2022
314
OFFICE OF PUBLIC AND INDIAN HOUSING
IHBG Competitive account to PIH S&E. In more recent cycles, Congress stopped providing this
dedicated source of funding to ONAP.
OPHVP: Funding request for OPHVP procurement actions will support specific activities, including:
additional in-depth technical assistance to our PHA partners; improvements and support in the
review of Energy Performance Contracting (EPC) and Small Rural Frozen Rolling Base (SR-FRB)
applications; oversight and monitoring in support of the President's climate resiliency goals;
furthering projects that focus on automating cash and change management for public housing and
HCV programs, including eVMS and the new Operating Fund Web Portal; assistance with the
collection and calculation of 13,000 submissions to PIH for the Operating Fund eligibility for each
public housing development (two Microsoft Excel forms for each of the 6,500 developments);
insurance support and project expense levels (PELs) appeal reviews; comprehensive training to HUD
staff for the implementation ofHOTMA Income and Asset calculations, Operating Fund Web Portal
and e VMS, and implementation of processes and systems that allow for ease of information sharing
and communications with our customers and stakeholders.
REAC: The funding will support activities that REAC manages for areas outside of the financial and
physical assessment of public housing. As HUD moves to additional areas of program alignment,
such as on physical inspections, and assessments, the need to support the HCV program will
increase (e.g., revisions to the Section Eight Management Assessment Program that rely on new
NSPIRE inspections of voucher units).
Working Capital Fund (WCF)
The Budget assumes total funding of $15.3 million for PIH's contribution to the WCF, $3.6 million
above 2022 Annualized CR WCF requirements that were forward funded at the end of 2021. The
WCF funding level reflects payments for baseline WCF services (including inflationary
adjustments and changes in service utilization) and the additions of the End-User Devices business
line, the Printing Services business line, HR platform licensing, and the full cost recovery of
Financial Services Acquisition and Development Division (FSADD) Financial Management expenses.
Information Technology
The Budget assumes PIH's on-going IT modernization efforts are fully funded in 2022 within the
Information Technology Fund. This effort will enhance public-facing systems and lead to cost savings
and industry efficiencies for PIH and its external stakeholders. Without modernized IT, PIH is at
risk of mission failure. IT funding as well as dedicated staff is essential for PIH's IT modernization to
be successful. Current IT systems need updating, upgrading, and better integration. PIH expects
these modernization initiatives to improve the efficiency of its operations for all stakeholders,
eliminate inefficiencies in the design of PIH's existing data analytics environments, improve the
timeliness of data used for housing assistance payments and perform daily reconciliation of reserve
balances, and provide efficiencies that can be leveraged across other HUD program offices. The PIH
IT modernization efforts include:
• Inventory Management System/Public Housing Information Center (IMS/PIC)
Modernization
• National Standards for the Physical Inspection of Real Estate (NSPIRE)
• Operating Fund Portal
• Enterprise Voucher Management System (eVMS)
• PIH Assessment System Modernization/Data Warehouse
• Native Advantage - Section 184/184A Loan Guarantee Programs
• Grants Enterprise Management System (GEMS) -IHBG, ICDBG
44-8
RL(ja) 47-463 05/03/2022
315
OFFICE OF PUBLIC AND INDIAN HOUSING
KEY OPERATIONAL INITIATIVES
By providing necessary personnel and non-personnel supportive resources, PIH's Salaries and
Expenses (S&E) Budget supports the Administration's agenda to:
• Support Underserved Communities
• Ensure Access to and Increase the Production of Affordable Housing
• Promote Homeownership
• Advance Sustainable Communities
• Strengthen HUD's Internal Capacity
Specifically, in 2023, PIH's S&E enables PIH to deliver on its core mission, essential functions,
existing programs, and new initiatives:
House as many families as possible:
• Increase HCV Utilization and Public Housing Occupancy
o Increase HCV utilization from 96.2 percent in 2021 to 100 percent in 2023 (Agency
Priority Goal)
o Increase HUD Veterans Affairs Supportive Housing (HUD VASH), Family
Unification Program (FUP), and Mainstream (non-elderly persons with disabilities)
voucher utilization to 82 percent
o Increase Public Housing occupancy from 94.93 percent to 96 percent (Agency Priority
Goal)
• Increase access to affordable housing in Tribal communities
o Support Tribes and Department of Hawaiian Homelands (DHHL) in achieving their
housing, infrastructure, and economic development priorities to meet the needs of
their communities through staffing and staff training, IT systems, Training and
Technical Assistance
o Increase access to and equity in homeownership for Native American and Native
Hawaiian families through program regulations, systems, streamlined business
practices, and policy initiatives.
o Support cross agency initiatives to develop a "one government" approach to
streamline housing, infrastructure, and economic development projects and the path
to homeownership in Indian Country
• Address inequities in housing opportunities through
o Community Choice (Mobility), Affirmatively Furthering Fair Housing, criminal
records and screening policies
Residents Live in safe and healthy homes:
• Significantly increase physical inspections by completing 100 percent of past due and current
due physical inspections.
• Implement the National Standards for the Physical Inspection of Real Estate (NSPIRE) by
issuing the Final Rule, Standards Notice, and IT.
• Invest in public housing to improve housing quality for residents by creating portfolio
improvements through the Capital and Operating Fund, Mixed Finance, Choice
Neighborhoods, conversions through Rental Assistance Demonstration (RAD), Section 18,
and Section 22
o Eliminating lead-based paint, increase fire safety, and reduce other health and safety
hazards
44-9
RL(ja) 47-463 05/03/2022
316
OFFICE OF PUBLIC AND INDIAN HOUSING
o Enhancing energy and water efficiency, and climate resiliency
Invest in and retain PIH employees:
• Hiring talent to have over 1,470 employees to address workload challenges.
• Creating opportunities for professional growth.
o Employee Enrichment Program (EEP) - PIH's signature professional development
program where employees are provided the opportunity to identify and apply for
funding for a training course of their choice. It offers staff an opportunity to lead
their own growth and development and close skill gaps.
o PIH Fundamentals - Webinar series developed by PIH staff that focuses on PIH
programs and systems to acquaint new staff with PIH programs and systems and
serve as a refresher for others. Recordings are also available.
44-10
RL(ja) 47-463 05/03/2022
317
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Program Offices Salaries and Expenses
Office of Community Planning and Development
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services: $121,955 $3,163 $122,514 $125,677 $141,019 $141,019
Non-Personnel Services:
Travel 24 1,000 1,000 1,000 1,000
Transportation of Things
Rent and Utilities
Printing 35 35 35 35
Other Services/Contracts 1,515 3,566 3,820 7,386 4,000 4,000
Training 600 600 600 600
Supplies 5 3 45 48 45 45
Furni!ure and Equipment
Claims and Indemnities 17
Total, Non-Personnel
$1,561 $3,569 $5,500 $9,069 $5,680 $5,680
Services
Working Capital Fund 4,645 1,134 3,093 4,227 7,401 7,401
Carryover 7,866
Grand Total $136,1127 $7,866 $131,107 $138,973 $154,100 $154,100
FTEs 766 20 755 775 835 835
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Community Planning and Development (CPD) primarily manages community
development, affordable housing, homelessness assistance, disaster recovery, and funds provided in
response to the COVID-19 pandemic that support communities, low-income households, and others
requiring assistance. Functions include:
• Grant administration and oversight (including CARES and ARP funds);
• Audit management and resolution;
• Risk assessment and monitoring to ensure program compliance;
Environmental Review and mediation;
• Technical assistance and customer support; and
• Long-term Disaster Recovery;
In headquarters, CPD focuses more on policy development, implementation, and administration. To
oversee compliance and program performance, CPD uses the "cross-program," placed-based specialist
approach. Field staff are assigned responsibility for overseeing a range of programs, both formula
and competitive, in designated geographical areas. Grantees are issued a single point of contact,
which enables CPD to manage the broad mix of projects found in a typical grantee portfolio.
45-1
RL(ja) 47-463 05/03/2022
318
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
Under the "cross-program," place-based specialist approach, individual CPD field staff perform a
variety of duties, including, but not limited to, grant administration and oversight, risk assessment
and monitoring, audit management and resolution, consolidated plan review and approval, and
technical assistance.
In 2021, CPD's program appropriation was over $8.3 billion and was supported by 766 full-time
equivalents (FTEs). In the past five years, CPD received an additional $47.5 billion to support
disaster impacted areas, $9.08 billion from the Coronavirus Aid, Relief and Economic Security
(CARES) Act and $5 billion from the American Rescue Plan (ARP) on top of its annual
appropriations. CPD will need to dedicate significant resources to help manage and monitor its core
workload, in addition to the supplemental emergency assistance to ensure successful program
delivery and guard against waste, fraud, and abuse.
BUDGET OVERVIEW
The 2023 President's Budget requests $154.1 million for the Office of Community Planning and
Development, which is $23 million more than the 2022 annualized CR level. The Budget reflects
total funding (carryover and new authority) of$154.1 million, $15.1 million above 2022 total funding.
CPD is projecting no carryover from 2022 into 2023 under an annualized CR funding level scenario
in 2022.
The President's Budget funding level for CPD will: 1) Support Underserved Communities, 2) Ensure
Access to Increase the Production of Affordable Housing, 3) Promote Homeownership, 4) Advance
Sustainable Communities, and 5) Strengthen HUD's Internal Capacity.
CPD has a solid track record managing several programs that are helping the American public and
that align with the Administration's priorities.
Grant Programs
Office of Grant Programs: The Office of Grant Programs has the largest and broadest development
program in the Nation, including Co=unity Development Block Grant (CDBG), CDBG-DR
(Disaster Recovery), CDBG-CV (CARES Act), HOME Investment Partnerships (HOME),
Neighborhood Stabilization Program (NS!_'), Section 108 Loan Guarantee, Recovery Housing
Program (RHP), and Housing Trust Fund (HTF). In addition, Grant Programs has the Departmental
cross-cutting functions and manages the Office of Environment and Energy (OEE) and the Office of
Real Estate Acquisition and Relocation. These programs are critical to the recovery of the Nation.
Community Development Block Grant: Currently, the CDBG program has 1,236 formula recipients
(units of general local government and states). Its loan guarantee component, Section 108, has 4 75
outstanding guaranteed loans with maturities of up to 20 years. CPD is responsible for oversight and
program management, including the closeout of approximately 30,000 grants that were administered
under the "first in, first out" funding approach used from the inception of the program in 1974 to
2015. Further, the CDBG-CV program received $5 billion that was distributed in three tranches and
added an additional 1,233 grants that require oversight and continuing technical assistance.
HOME Investment Partnerships: Currently, HOME has 651 eligible participating jurisdictions.
However, an appropriation increase may create new HOME participating jurisdictions by formula.
HOME-assisted projects have 5-, 10-, 15-, or 20-year compliance periods. CPD is responsible for
providing guidance and technical assistance to participating jurisdictions and for ensuring
compliance with program requirements. Additionally, the HOME Program received $5 billion of
supplemental funds through ARP.
45-2
RL(ja) 47-463 05/03/2022
319
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
Housing Trust Fund (HTF): The Housing Trust Fund Program grew 115 percent between 2020 and
2021. These grants will require staffing oversight for several years. RTF-assisted projects have 30-
year compliance periods. Resources are needed to provide guidance and technical assistance to HTF
grantees to ensure compliance with program requirements.
ARP: In 2021, CPD received $5 billion as part of the ARP to help thousands of people experiencing
homelessness or housing instability by further leveraging HOME. Specifically, the program will
provide tenant-based rental assistance, development and support of affordable housing, supportive
services, and acquisition and development of non-congregate shelter units. Additionally, funds were
allocated to provide technical assistance and administrative support. However, CPD core staff are
needed to begin implementing the program, including on-boarding and training new staff and
managing responses to audits and inquiries regarding the program execution.
Disaster Recovery and Mitigation: When Congress appropriates supplemental emergency funding
through CD BG-DR, HUD provides flexible grants to help cities, counties, and states recover from
Presidentially declared disasters, especially in low-income areas. In recent years, CPD has
experienced a significant workload relating to disaster recovery and currently manages an active
grant portfolio of more than $82 billion in CDBG-DR funding. CDBG-DR funding serves impacted
areas including those affected by the 2017 Hurricanes (Harvey, Irma, and Maria), Western Wildfires,
and 2018, 2019, 2020, and 2021 natural disasters. CDBG-DR grantees from these disaster events
include, but are not limited to, Alaska, California, Florida, North Carolina, South Carolina, Texas,
Wisconsin, Ohio, Iowa, Arkansas, Nebraska, Alabama, Louisiana, Mississippi, and Tennessee. HUD
requires additional FTE resources to manage the CDBG-DR portfolio.
Special Needs Programs
Office of Special Needs (OSN): The Office of Special Needs operates the Nation's primary resource to
serve individuals and families across the U.S. who are affected by homelessness. The number of
people experiencing unsheltered homelessness is rising in cities across the country. The increase is a
result of the rising cost of housing and the lack of assistance provided to segments of the homeless
population. After receiving historic appropriation levels, coupled with an unprecedented housing
crisis that has been exacerbated by the pandemic, OSN workload is at the highest levels. Staff must
manage the Continuum of Care (CoC), Emergency Solutions Grants (ESG), Emergency Solutions
Grants - CARES Act (ESG-CV), Youth Homelessness Demonstration Program (YHDP) programs,
and Rapid Re-housing Victims of Domestic Violence Programs; all which have been growing rapidly
without proportionate resources. Additionally, HUD has partnered with many other agencies and
community partners to ensure that HUD resources combine with other Federal, State, and local
resources to provide an efficient system to serve people experiencing homelessness. For example,
HUD, including OSN, is partnering with the Department of Treasury to support the Emergency
Rental Assistance Program. As communities take on more responsibility for ending homelessness by
responding to public health crises and more efficiently utilizing affordable housing and health
resources, OSN will need additional capacity to provide guidance and oversight.
CoC New Projects: The 2023 President's Budget requests $134 million for new projects to support
CoCs, as they partner with Public Housing Authorities (PHA) and other housing and healthcare
providers and utilize more mainstream resources to reduce homelessness; including youth
experiencing homelessness and for projects dedicated to survivors of domestic violence. The
President's Budget also includes $20 million to increase CoC planning capacity; this funding is
critical to providing the capacity and support to communities as they work to coordinate an effective
homeless response system in a trauma-informed and equitable way and will require additional
resources for OSN.
Housing Opportunities for Persons With AIDS (HOPWA): In 2022, new tasks emerged that require
higher level staffing support. In addition to the continued renewal process, there is now an
45-3
RL(ja) 47-463 05/03/2022
320
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
additional "replacement" option process requiring staffing resources. CPD now must carry out the
administrative work to accommodate both the renewal and replacement processes for those HOPWA
grantees eligible to renew should some elect to replace instead. Also, the HOPWA program will have
a more frequent Notice of Funding Opportunity (NOFO) process. Ultimately, looking forward, CPD
expects to award competitive grants yearly or every other year.
Economic Development Programs
The Office of Economic Development (OED) supports economic development and capacity-building
for local, state, regional, and national nonprofit organizations. The Office of Rural Housing and
Economic Development (ORHED) is responsible for the oversight and management of Self-Help
Homeownership Opportunity Program (SHOP), Veteran Housing Rehabilitation and Modification
Pilot Program (VHRMP), and the Rural Gateway Clearinghouse which ultimately expands access to
affordable housing and supports economic development. OED is responsible for the administration of
congressionally directed grants. The 2022 appropriation included approximately $1.5 billion in such
funding. The end-to-end grants management for these awards include project narrative and budget
review and approval; funds drawdown approval; the provision of periodic technical assistance for
active grants; project monitoring; and grant closeout. OED is also responsible for responding to or
supporting responses to the congress or other agencies as directed regarding these grants.
CPD Operations, CPD-wide Programs and Workload, and Cross-Cutting Programs and
Initiatives
Operations: CPD's Operations is the backbone of CPD, providing a variety of services to ensure the
effective and efficient management of CPD's program. CPD headquarters staff is responsible for
budget, audits resolution, and working with both the headquarters program offices and the 43 field
offices. The Operations team is also responsible for the grant closeout of the grants administered by
the various CPD headquarters program offices. Budget, Human Resources, the Chief Risk Advisor,
Correspondence, Procurement, and the System Development and Evaluation Division (or IT) are also
all part of Operations and are key contributors to the workflow and the overall operations of CPD.
Additionally, CPD's 43 field offices are managed through Operations. Finally, the Capacity Building
for Affordable Housing and Community Development Program (Section 4) and Rural Capacity
Building (RCB) Program currently are administered in Operations. The substantial increase in the
number of grants, projects, and annual/supplemental appropriations have dramatically increased the
workload for all of Operations and warrants additional staff needs.
Monitoring: Historically, CPD monitors 21 percent of its grantees in its portfolio each year. (Note:
This metric changed for 2020 and 2021 as monitoring was suspended due to the impacts of the
pandemic.) For 2022, given the present climate, CPD has been conducting 100 percent remote
monitoring of selected grantees. For 2023, as the pandemic improves, CPD will transition to in-
person monitoring. CPD leverages its resources for grant oversight and compliance by providing
technical assistance and training to grantees. CPD is pursuing opportunities to streamline a risk-
based monitoring process and utilize remote monitoring and technology to enhance its monitoring
capabilities.
Decreased Capacity of Grantees: There will be a need for additional CPD staffing to assist grantees
that have experienced their own staffing reductions while experiencing an influx of new funding.
The pandemic has further negatively impacted the capacity of grantees at a time when the same
grantees are becoming responsible for expending much more funding from new programs (CDBG-CV,
ESG-CV, HOPWA-CV, HOME-ARP, disaster appropriations, etc.) and larger appropriations.
Additional CPD staff will be required to provide additional guidance, training, and technical
assistance to ensure the proper program administration and guard against fraud, waste, and abuse.
45.4
RL(ja) 47-463 05/03/2022
321
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
Audit Resolution/Grant Closeouts: CPD has 107 open Office of the Inspector General (OIG) audits,
with 431 open recommendations, of which 117 recommendations are overdue for resolution. CDBG-
DR grant program has 16 open audits and nearly 119 open recommendations. In 2021, CPD closed
124 OIG audit recommendations and so far in 2022, CPD has closed 13 recommendations.
Additionally, CPD has over 4,734 grants that are open and will eventually be reviewed for closeouts.
With the addition of more funding and grants, there are more audits and closeouts with greater
attention by the OIG and General Accountability Office (GAO). More CPD staff is needed to ensure
the proper compliance in the use of core CPD funds, as well as the CARES Act and the ARP funding.
CARES Act: CPD is charged with proactively supporting efforts to prevent, prepare for, and respond
to the coronavirus. In 2020, CPD received $9.08 billion in program funds, the majority of the CARES
Act funding allocated to HUD, with CDBG, ESG, HOPWA, Technical Assistance, and administrative
funds for salary and expense, all receiving allocations.
Supplemental Appropriations Funding: CPD has received supplemental administrative funds with
disaster, pandemic, and ARP related appropriations. However, CPD will still need to dedicate
significant permanent staffing resources throughout the life of the grants to ensure successful
program delivery and compliance to guard against waste, fraud, and abuse.
Cross-cutting Activities: It is important to note that while the below activities support the entire
Department, they are funded solely with FTEs from CPD's allocation.
• Environment Support: CPD provides Departmental support for environmental reviews and
assistance and leading the Administration's priority goal relating to climate resilience,
environmental justice, and energy efficiency.
• Relocation: CPD manages the relocation efforts for the entire Department.
Environment and Energy: CPD's Office of Environment and Energy (OEE) performs environmental
reviews to assess the potential environmental impacts of a project and determine whether it meets
Federal, State, and local environmental standards. Every HUD-assisted project must be examined to
ensure that it does not negatively impact the surrounding environment and that the site itself will
not have adverse effect on end users. OEE has a varied workload, which includes, but not limited to
responding to the Department's many requests for energy policy reco=endations and providing
technical assistance to grantees and HUD staff performing environmental reviews.
Relocation: HUD's Relocation and Real Estate Division (RRED) has departmental delegated
authority for the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
as amended (URA). RRED is also responsible for developing and implementing national policies for
real estate and relocation activities in connection with HUD programs.
Personnel Services (PS)
The.2023 Budget assumes total funding of $141 million for CPD personnel services to support
835 FTEs, which is $15.3 million and 60 FTEs above the 2022 total funding level. The Budget
supports a 4.6 percent Federal pay raise. CPD intends to distribute the FTE increases equitably in
accordance with our risk registry and workload priorities to headquarters and field offices. CPD
utilizes its risk registry to inform and prioritize its hiring plan and decisions. This will ensure that
CPD's limited resources are leveraged to mitigate risk associated with its workload. CPD has
streamlined its hiring process and has a solid track record of processing and on-boarding external
and internal candidates. CPD is confident that the groundwork has been laid to hire qualified
candidates timely to support CPD's workload.
The proposed increase in positions would allow CPD to better manage its core workload relating to
grant administration and oversight, continue the progress made in addressing and reducing
45-5
RL(ja) 47-463 05/03/2022
322
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
homelessness, more aggressively address its audit and closeout backlogs, manage the Departmental
functions of Environment and Relocation, lead efforts for current and future disaster-related
response and recovery, and continue to manage outstanding CARES and ARP funds.
Operations Field (35 FTEs): The FTEs will support CPD's grant administration workload, which is
3,900 grants annually in addition to the 3,600 grants and $14 billion in supplemental funding from
the CARES Act and ARP. FTEs are needed for monitoring and supporting grantees that have
experienced their own staffing reductions while receiving an influx of new funding (CDBG-CV, ESG-
CV, HOPWA-CV, HOME-ARP, and disaster appropriations). Additional CPD staff will be required to
provide additional guidance, training, and technical assistance to ensure the proper administration
of program and ensure against, fraud, waste, and abuse.
Office of Grants Programs (12 FTEs): The FTEs will support grant management core workload and
supplemental workload relating to disaster recovery and CARES Act. Also, OEE, the Department's
experts on environment and energy, plays a critical role in supporting the Administration's goal of
promoting climate resilience, environmental justice, and energy efficiency to bqild inclusive
communities and need additional FTE resources.
Office of Special Needs (6 FTEs): The FTEs will support the management and oversight of
Continuum of Care, Emergency Solutions Grants, ESG-CV, Youth Homelessness Demonstration
Program programs, Rapid Re-housing Victims of Domestic Violence Programs, and Housing
Opportunities for Persons with AIDS; all programs which have been growing rapidly without
proportionate resources. As OSN continues to serve individuals and families impacted by
homelessness during an unprecedented housing crisis that has been exacerbated by the pandemic,
workload is at the highest levels.
Operations Headquarters (6 FTEs)· The FTEs will support the variety of services (budget, audit
resolution and grant closeouts, human resource management, field management, risk management,
and system development and evaluation) necessary to ensure the effective and efficient management
of CPD's programs. The substantial increase in the number of grants and projects and annual and
supplemental appropriations have dramatically increased the workload for all of Operations and
warrants additional staff.
Office of Economic Development Programs (1 FTE): The FTE will support the management of CPD's
economic development programs.
Non-Personnel Services (NPS)
The 2023 Budget assumes $5. 7 million for non-personnel services, which is $3.4 million less than the
2022 total funding level.
Travel: CPD is requesting $1 million for travel, a steady-state compared to the 2022 total funding
level. The funding supports CPD's travel-related workload for monitoring, capacity building,
training, and technical assistance.
Printing: CPD is requesting $35 thousand for printing, a steady-state compared to the 2022 total
funding level to support CPD printing workload needs.
Other Contracts: CPD is requesting $4 million for contracts, a decrease of $3.4 million, when
compared to the 2022 total funding level. In 2022, CPD's larger contracts will be awarded and will
not be recompeted in 2023, which contributes to the decrease. Funding will support CPD's ongoing
workload needs relating to the CARES Act, data analysis contract for the Office of Special Needs,
census data, and more.
45-6
RL(ja) 47-463 05/03/2022
323
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
Training: CPD is requesting $600 thousand for training. The funding will support CPD training
needs relating to managing programmatic functions, expand efforts to respond to training needs
associated with pandemic response, and new proposed programs such as the Historically
Underfunded Communities Initiative. Additionally, the funds will be leveraged to train newly hired
staff.
Supplies: CPD is requesting $46 thousand for supplies, a steady-state compared to the 2022 total
funding level to supports the needs of CPD's workload and increase in staffing.
Working Capital Fund (WCF)
The 2023 Budget assumes total funding of $7.4 million for the WCF, which is $3.2 million above the
2022 total funding level. The WCF funding level reflects payments for baseline WCF services
(including inflationary adjustments and changes in service utilization) and the additions of the End-
User Devices business line, the Printing Services business line, HR platform licensing, and the full
cost recovery of Financial Services Acquisition and Development Division (FSADD) Financial
Management expenses.
Information Technology
Within the Information Technology Fund, the Budget requests $3 million to modernize the electronic
Special Needs Assistance Program System (e-snaps).
Program Pain Point
HUD continues to use the e-snaps data system to automate the $2.6 billion Continuum of Care (CoC)
Program Competition. The e-snaps system provides an online data portal for all CoC applicants to
prepare and submit to HUD a detailed project application for funding. However, the system is brittle
and unstable, approaching 14 years old, which is far beyond the original technical limits of the
platform. Basic system changes and updates are costly and each change risks the stability of the
system. HUD staff constantly employ manual interventions to overcome functional gaps in the
system. The CoC Program depends completely one-snaps performance. System failure, or a
significant drop in performance, will be catastrophic, public-facing, and detrimental to local
communities and homeless assistance providers.
Mission Benefits
A more modern and stable platform would speed up and streamline the CoC application and grant
processes for grantees and HUD staff. This reduces risk and uncertainty to grantees who provide
direct homeless assistance, which should improve staffmg consistency and improve outcomes.
Replacing e-snaps would also make it easier for HUD to quickly implement special initiatives like
the Youth Homelessness Demonstration Program. A new solution may also provide better
integration with HUD financial systems, improved credentialling and authentication of users, and
better data integration and standardization with other HUD grant systems.
Target Functionality
• Improved system performance and stability; reduction in current risks related to long term
availability and support for acute technical problems.
• Improved efficiency for grants management activities, including reduced administrative
burden for HUD staff and grantees, reduced time to award, and improved business
automation such as data analytics and financial system interface.
Projected Cost Savings
A modernized e-snaps should reduce costs of:
45.7
RL(ja) 47-463 05/03/2022
324
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
• Annual Operations and Maintenance of the system by streamlining the annual
configurations required to meet the NOFO and other programmatic efforts, allowing further
investment into new capabilities and free staff time towards program oversight or analytics.
• Annual licensing for the CSDC/Grantium COTS platform.
• Manual interventions performed by HUD staff, Technical Assistance providers, HUD
infrastructure staff, and grantees required due to functional or process gaps in the system,
performance issues"requiring troubleshooting, repetitive reporting in more than one system,
or the manipulations performed to aggregate data originating from multiple systems (SAGE,
HDX, e-snaps, LOCCS, etc.).
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund justification.
KEY OPERATIONAL INITIATIVES
CPD programs align directly with the Administration's priorities as articulated in recent Executive
Orders, policy directives, and other Administration actions relating to expanding equity and
economic opportunities to underserved groups. The 2023 President's Budget also provides CPD with
resources to address the following HUD Strategic Goals: 1) Support Underserved Communities; 2)
Ensure Access to and Increase the Production of Affordable Housing; 3) Promote Homeownership; 4)
Advance Sustainable Communities; and 5) Strengthen HUD's Internal Capacity. A snapshot is
below.
Support Underserved Communities
• Community Development Block Grant, Home Investment Partnerships Program, Housing
Trust Fund, Section 108, Homelessness Assistance Grants, Housing Opportunities with
Persons with AlDS, Self-Help Homeownership Opportunity Program, Rural Capacity, and
Capacity Section 4, and Veterans Housing Rehabilitation and Modification Pilot Program,
CPD's Office of Real Estate Acquisitien and Relocation (Relocation and Historically
Underserved Communities Initiatives.
Examples include, but are not limited to:
The Historically Underserved Communities Initiative will direct funding toward removing
barriers to affordable housing and community development in underserved communities. The
initiative will provide additional grants to CDBG grantees to identify and address regulatory,
structural, and capacity barriers to revitalization in these co=unities. The initiative would
encourage grantees to address existing barriers, seed future revitalization, and improve models
of CD BG-funded community development across the entire CDBG portfolio.
CPD's Homeless Assistance Grants are focused on ensuring people who have no housing, people
experiencing homelessness, or at risk of homelessness have access to affordable housing. The
program provides housing subsidies, as well as the supportive services necessary to help
individuals and families become stably housed. Through the implementation of such practices as
Housing First and rapid rehousing, these programs assist individuals and families experiencing
homelessness receive quick and fair access to affordable housing.
Ensure Access to and Increase the Production of Affordable Housing
• CDBG, HOME, RTF, SHOP, HAG, HOPWA, and VHRMP
Examples include, but are not limited to:
45-8
RL(ja) 47-463 05/03/2022
325
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
CPD's HOME program is the primary Federal tool of States and local governments use to
produce affordable rental and for-sale housing for low-iii.come to extremely low-income
families, including mixed-income housing and housing for homeless and persons with
HIV/AIDS. It is an anchor of this nation's affordable housing finance system and can be an
important factor for community revitalization. In addition to its annual appropriations,
HOME received $5 billion as part of the American Rescue Plan.
CPD's Housing Trust Fund (HTF) is a formula-based program for the States and U.S.
Territories that finances the development, rehabilitation, and preservation of affordable
housing for extremely low-income families and the nation's most vulnerable populations.
CPD's Veterans Housing Rehabilitation and Modification Pilot (VHRMP) Program in
partnership with the Department of Veteran Affairs provides grants to nonprofit
organizations to rehabilitate and modify the primary residence of veterans who are low-
income and living with disabilities.
Promote Homeownership
• SHOP, Rural Capacity, Capacity Section 4
Examples include, but are not limited to:
SHOP provides funding to national and regional nonprofit organizations and consortia to
purchase home sites and develop or improve the infrastructure needed to set the stage for
sweat equity and volunteer-based homeownership programs for low-income persons or
families.
CPD's Section 4 Capacity Building for Community Development and Affordable Housing and
Rural Capacity Building for Affordable Housing Programs help build capacity of
organizations in both urban and underserved rural communities. The work done through
these programs helps to build capacity among community organizations to develop affordable
housing and improve housing choices for families.
Advance Sustainable Communities
• CDBG, HOME, Section 108, HOPWA, HAG, VHRMP, Office of Environment and Energy
(OEE), Recovery Housing Program
Examples include, but are not limited to:
As the Department's experts on environment and energy, CPD's Office of Environment and
Energy (OEE) plays a critical role in supporting sustainable communities, climate resiliency
and energy efficiency, environmental justice and health. While situated in and wholly funded
by CPD in the Office of Grant Programs, OEE is a statutory compliance office that serves the
entire Department.
CDBG provides state and local governments with tools to support the climate justice goals by
providing funds that can be used for planning and resilient infrastructure benefitting low-
and moderate-income neighborhoods. A CDBG grantee's Consolidated Plan must involve
consultation with residents and local emergency management staff and include consideration
of the climate resilience needs of vulnerable, low- and moderate-income persons and
communities.
45-9
RL(ja) 47-463 05/03/2022
326
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
CPD's homeless programs demonstrates that there is a clear intersection between health and
homelessness. Providing homeless services and housing through the Homeless Assistance
Grants is a significant step HUD takes to promote health. CPD incentivizes the connection
between its homeless resources and other mainstream benefits, including health benefits, to
promote greater health opportunities for people experiencing homelessness.
CPD's HOPWA program include critical support such as housing case management, mental
health services, substance abuse treatment, or employment training that sustain housing
stability, promote better health outcomes, and increase quality of life. ffitimately, housing
stabilization can lead to reduced risk behavior and reduced HN transmission, a significant
consideration for Federal HN prevention efforts.
Strengthen HUD's Internal Capacity
Examples include, but are not limited to:
CPD has taken several steps to increase internal capacity by engaging in continuous operational
improvements relating to workload, human resource management, training, and professional
development to ensure that CPD delivers on mission. Selected highlights include improving
technology, expanding data access, and creating a modern and responsive workforce equipped to
deliver on mission:
• Improving CPD's formula grant data modeling and allocation process. This will bring
automation and efficiencies to the formula allocation process and reduce human error.
• Expanding on several dashboards and reports that are customized per user and provides a
range of information that include status of program funds, salary and expense funds, payroll
reconciliation, staffing and recruitment, among others.
• Enhancing the capacity of Disaster Recovery Grant Reporting (DRGR), a cross-cutting
government cloud system that provides Federally compliant post-award support for a wide
range of programs, supporting both those using grant and cooperative agreement
instruments.
• Developing a Financial Management Training Program for existing and new Financial
Analysts (FA). This will bring consistency across the field and create training curriculum and
modules for FAs to learn the functions and responsibilities of their position.
• Creating a pilot Talent Management Program for CPD Representatives.
• Conducting climate assessments in various CPD program offices to build stronger
staff/management relationships, address diversity and equity tensions, and improve the
working environment.
• Creating an environment of continuous learning and improvement by piloting Continuous
Improvement (Cl) 101 and 201 courses. These courses will provide basic and advance level CI
principles, strategies, and best practices for CPD employees to use on future process
improvement efforts.
• Improving our training management process through updated assessments, targeted
training, and enhanced resource allocation.
• Implementing a comprehensive team-level onboarding process to focus on time to
productivity and cultural assimilation.
• Establishing a standard CPD Standard Operating Procedures (SOP) template. This will
document existing key processes across CPD and allow for enhanced knowledge transfer as
people attrit.
45-10
RL(ja) 47-463 05/03/2022
327
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
• Improving our employee engagement efforts by employing a year-long plan full of activities,
trainings, and resources. Launching road show for intimate discussions with our senior
leadership team and our field offices across the country.
Advancing Equity
CPD is at the forefront of advancing equity through its Federal programs and processes. CPD's
CDBG, HOME, HTF, Section 108, HAG, HOPWA, SHOP, VHRMP, Rural Capacity, and Capacity
Section 4 all support expanding equity, particularly in lower income, marginalized, and/or
underserved communities. CDBG funds support affirmatively furthering fair housing planning and
implementation in many co=unities.
Risk Profile for CPD
Many CPD programs have risks that cannot be mitigated with current staffing levels. In recent
years, CPD has experienced a significant increase in the number of grantees, grants, and funding
levels, particularly in Grants Programs and associated supplemental funding programs such as
CDBG-DR, CARES Act, and ARP. CPD requires additional resources to not only guard against
fraud, waste, and abuse, but also to expand the expertise and capacity of grantees so we can deliver
on mission.
Current staffing levels have impacted CPD's ability to effectively carry out its core grants
management functions and does not allow CPD to have the capacity to provide the necessary
expertise to carry out the Administration's priorities. Additional staff resources provided in the 2023
President's Budget will increase CPD's capacity to provide guidance, training, improved oversight of
CPD grant management functions, and strengthen internal controls.
Many of CPD grantees have expressed challenges presented by the increased funding in response to
the pandemic. The opportunity to transform communities - including beginning to correct the
underlying systemic conditions that led to the vulnerabilities - is available now, but many of these
communities lack expertise to best leverage and administer these resources, and this opportunity
could be lost, squandered, or underperformed. Therefore, CPD requires additional S&E resources, as
requested in the Budget, to ensure that communities maximize the funding to fulfill the
Departmental goals in a timely and equitable manner.
Summary of Reorganization and Operational Improvements
For 2023, CPD proposes to move the Technical Assistance Division (TAD), which is currently located
in CPD Operations, Office of Technical Assistance and Management, to the Office of Policy
Development and Research (PD&R).
This reorganization will involve the following:
• Increase operational efficiencies for program delivery across the Department.
• Make TA a cross-office function and prioritizes the staffing to serve all of the offices of HUD
Improve the ability to create cross-program benefits and efficiencies for TA that can serve
multiple programs.
• Allow HUD to allot separate TA set-asides to PD&R to centralize the number of Cooperative
Agreement Officers and GTRs to ensure proper standardization and risk mitigation for the
Department.
• Improve the ability to facilitate the transfer of research evidence and learning to TA
providers so they can transfer knowledge to grantees more efficiently.
• Realign 24 FTEs from CPD to PD&R.
45-11
RL(ja) 47-463 05/03/2022
328
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
For 2023, in an effort to align functions properly, foster better communication, effective succession
planning and employee engagement in CPD, HUD proposes the following organizational changes:
• Establish the Deputy Assistant Secretary (DAS) for Field Operations (Senior Executive
Service) and the Associate Deputy Assistant Secretary (ADAS) for Field Operations.
• Relocate the 43 field offices from the DAS for Operations to the DAS for Field Operations.
Establish 10 Regions with 10 Regional CPD Directors that will report directly to the DAS for
Field Operations and manage a select number of field offices.
• Dissolve the Office of Technical Assistance and Management to reduce an unnecessary
management level.
• Elevate and change the Budget Division to the Office of Budget and Compliance with the
following divisions:
o Program Management Division.
o Risk Management Division (managing CPDs Enterprise Risk, audits, and grants
closeout).
o Salaries and Expenses (S&E) Division.
• Elevate and change the Management Division to the Office of Resource Management (led by
the Administrative Officer) with the following divisions:
o Administrative Services Division (managing space, travel, credit cards, printing,
supplies, and the Correspondence Branch).
o Human Resources Division (managing recruitment, workforce management,
training, and performance management).
o Strategic Transformation Division (managing continuous process improvements,
strategic planning, and employee engagement).
• Elevate and change the Systems Development and Evaluation Division to the Office of
Technology, Innovation, and Evaluation with divisions:
o Evaluation and Analytics Division
o Operations Division
o Systems Division
• Move the formula allocation process to PD&R.
• Move the Section 4 and Rural Capacity Building Programs to the DAS for Economic
Development within CPD.
For 2023, CPD is not requesting additional S&E directly related to the reorganizations. However,
CPD would like to have the appropriate structure in place and work towards the goal of better
realigning CPD's limited resources.
45-12
RL(ja) 47-463 05/03/2022
329
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Program Offices Salaries and Expenses
Office of Housing
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services: $384,171 $935 $390,056 $390,991 $456,139 $456,139
Non-Personnel Services:
Travel 226 200 200 2,800 2,800
Transportation of Things
Rent and Utilities 1 2 2
Printing 6 10 10 13 13
Other Services/Contracts 2,665 2,990 2,990 2,490 2,490
Training 1,217 20 1,200 1,220 2,615 2,615
Supplies 42 50 50 80 80
Furniture and Equipment
Claims and Indemnities 100 100
Total, Non-Personnel
$4,157 $20 $4,551 $4,571 $8,000 $8,000
Services
Working Capital Fund 18,269 5,099 9,587 14,686 24,361 24,361
Carryover 6,054
Grand Total $412,651 $6,054 $404,194 $410,248 $488,500 $488,500
FTEs 2,420 6 2,380 2,386 2,673 2,673
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Housing plays a vital role for the Nation's homebuyers, homeowners, renters, and
communities through its nationally administered programs. It includes the Federal Housing
Administration (FHA), the largest mortgage insurer in the world, and regulates housing activities
within the industry. The Office of Housing, through its FHA insurance programs, plays a
countercyclical role in the market, including playing a key role in supporting the Nation's recovery
from the COVID-19 pandemic.
HUD's mission is critical to achieving the President's vision to support underserved communities in
improving public health and economic opportunity and addressing longstanding systemic challenges,
including racial injustice, rising inequality, and the climate crisis. HUD's work is essential to
improving the quality of life of the American people, and this investment in the Office of Housing's
salaries and expenses is central to ensuring that HUD is able to execute on its responsibility to meet
America's housing needs.
BUDGET OVERVIEW
The 2023 President's Budget requests $488.5 million for the Office of Housing, which is $84.3 million
more than the 2022 annualized CR level. The Budget reflects total funding (carryover and new
46-1
RL(ja) 47-463 05/03/2022
330
OFFICE OF HOUSING
authority) of $488.5 million, $78.3 million above 2022 total funding. This funding will provide
essential resources for staff to effectively manage subsidized and insured properties and protect the
housing safety net for millions offamilies nationwide. The funding will also ensure the Office of
Housing will have the capacity to accomplish its mission of providing affordable housing and
strengthening the national mortgage insurance market.
Personnel Services (PS)
The Office of Housing is requesting $456.1 million to support 2,673 full-time equivalents (FTEs).
This Budget represents an increase of $65.1 million and 287 FTEs over the 2022 total funding level.
The 2023 Budget provides the funding required to hire and retain critical staff who will be engaged
in strengthening and broadening the Federal housing safety net for people in need, advancing
housing equity to improve housing choices and greater economic opportunity, and increasing the
production of, and access to, affordable housing. The Budget also supports a 4.6 percent Federal pay
raise, as well as the hiring of staff for increased demands post COVID-19 pandemic.,
The additional FTEs will help to reduce current backlogs due to understaffing which were
exacerbated further by the pandemic and conversely generate a reduction of the processing time for
FHA multifamily applications, single family claims, asset sales, and contract assignments/transfers.
The Office of Housing's Budget represents increases across the seven internal program and support
offices, all of which have specific missions supporting the overall HUD mission of providing
affordable housing to underserved communities.
Multifamily Housing
The Office of Multifamily Housing (MFH) requires additional FTEs to provide essential staff to
effectively manage subsidized and insured properties and to support the overall goal of housing
safety and quality. While the vast majority ofMFH's portfolio of over 30,000 properties is in
excellent condition, the number of distressed properties has increased as properties have aged,
resources available have not fully met capital needs, and pandemic disruptions have affected
operations. A support team of field and headquarters staff, alongside regional leadership, will be
assembled to support troubled property resolution.
MFH does not currently have the optimal staffing level to address and remedy distressed properties;
The Office requires additional resources to enable MFH to implement a surge strategy that will rely
on increased external engagement, the deployment of staff, improvement of systems, program
changes, and funding for property rehabilitation.
Additional staff will also be utilized in the field to proactively manage MFH's portfolio through more
frequent management and occupancy reviews for HUD-administered properties, and more frequent
site visits for troubled and potentially troubled properties. The increased staffing will also assist in
improving resident outreach and bettering responses to resident complaints and implementing new
affordable housing initiatives.
Additional FTEs will support the Green and Resilient Retrofit Program through management and
oversight of the Participating Administrative Entities that will be responsible for program
administrative activities such as processing applications and awards for $207.5 million in loans and
grants to support green and climate resilient improvements to thousands of affordable housing units.
Single Family Housing
To increase homeownership and achieve equity, especially in underserved communities, Single
Family requires additional Program Policy Specialists to compose and administer origination and
servicing policy. In addition, Housing Specialists, Underwriters and Appraisers are needed to
46-2
RL(ja) 47-463 05/03/2022
331
OFFICE OF HOUSING
support condominium examinations, reviews and policy interpretations, conduct post endorsement
loan reviews, and to maintain the required appraisal reviews that will help promote equitable and
sustainable homeownership across the country. Additional Business and Management Analysts are
needed to support FHA's Information Technology (IT) Modernization project to advance FHA's
transition to digital process using a single platform, aligning with mortgage industry best practices.
This modernization effort will open the doors to advanced data and risk analytics, cost-savings and
operational efficiencies, and ensuring borrowers receive financing that is sustainable and optimized
for long-term homeownership. Analysts will be required to support the FHA Resource Center project
which serves as FHA's main communication vehicle to external partners, providing critical
operational, analytical and reporting needs to identify trends and forecast patterns in the insured
portfolio. This request for additional staff ensures FHA origination and servicing trends are
identified in a timely manner, help to inform risk management activities, and can be utilized to
formulate future FHA policy and operational changes when required to mitigate unnecessary risks
within the insured portfolio.
Finance and Budget
Finance and Budget (FAB) requests an increase in staffing to support workload requirements in
budget, asset sales, accounting, claim payments, and premiums collection processing. The additional
personnel will absorb the increase in financial management demands as Housing's program offices
implement new programs and expand existing programs. The increase in staffing will also support
the processing of the anticipated increased number of FHA Single Family claims for insurance
benefits by FHA-approved lenders, especially in the aftermath of the COVID-19 global pandemic.
Finally, additional personnel will be needed to support note sales as a disposition option, to help
curtail further losses to the FHA Mortgage Mutual Insurance fund, while increasing non-profit and
units oflocal government participation in notes sales.
Housing Counseling
The Office of Housing Counseling (OHO) is requesting additional FTEs to increase housing
counseling services and capacity for prospective homebuyers, families impacted by national
disasters, disadvantaged communities, and homeowners and renters trying to avoid foreclosure and
eviction. While continuing to meet critical needs, OHO will improve consumer outreach, increase
housing counselor training, address previous program audits related to grantee payments, and fulfill
other programmatic functions. To support the expansion of agency performance reviews to HUD-
Approved Intermediaries, OHO will also address procurement issues and eliminate the need for staff
to perform work outside of their respective disciplines.
Healthcare Programs
The Office of Healthcare Programs requires additional FTEs for the Office of Residential Care
Facilities (ORCF) to successfully meet current and expected human capital needs in underwriting,
closing and servicing loans to mitigate risks. To effectively service the Section 232 portfolio, the
number of loans assigned to an Account Executive (AE) for servicing should not exceed 75 loans.
Currently, each AE is servicing between 80 and 123 loans. AEs should be servicing a maximum of
30 troubled assets; however, they are servicing up to 50 troubled assets each. The additional FTEs
will reduce the average number of loans serviced by each AE by 35 percent, permitting AEs to
manage risk more effectively. Similarly, ORCF's underwriting and closing requirements have
substantially increased. COVID-19 is expected to have long-term impacts to healthcare facilities,
therefore increasing the complexity of underwriting and closing Section 232 loans. The requested
FTEs will reduce the current backlog of applications and prevent creating additional backlog. The
Office of Hospital Facilities, in 2021, completed the underwriting of nine hospital loans valued at
$1.4 billion. In addition, the staff serviced 88 hospital loans currently in the portfolio valued at
approximately $7 billion. Additional FTE support is required for both asset management and
46-3
RL(ja) 47-463 05/03/2022
332
OFFICE OF HOUSING
production activity, as increased effort is required to maintain the hospital portfolio in the current
health care environment.
Office of Risk Management and Regulatory Affairs
The Office of Risk Management and Regulatory Affairs (ORMRA) requires additional FTEs to
support financial, data, credit, and enterprise risk. The current staffing levels create numerous
critical personnel dependencies, exposing ORMRA to staff turnover and an inability to respond
timely and thoroughly to competing demands. Having an adequate and experienced staff is critical to
maintaining and strengthening HUD's internal institutional capacity to deliver on mission, and the
requested FTEs will place the program office in a position to complete this mission successfully.
Additionally, the increased staffing will help advance program equity for ORMRA through its service
as risk mitigators across program offices. ORMRA will be critical in assisting the Administration by
analyzing, modeling, and assessing potential policies that can adequately address FHA's role in
helping the Nation recover from the pandemic.
Non-Personnel Services (NPS)
The Office of Housing is requesting $8 million for Non-Personnel Services (NPS), $3.4 million more
than the 2022 total funding level. NPS funding will primarily be allocated for training, travel, and
contracts. Increased travel is anticipated in 2023 as travel restrictions are lifted. Training will also
increase due to the expanded number of FTEs. The additional funding for travel and training will
allow for mandatory certification training, developmental training to improve the efficiency and
skills of the workforce, critical travel for inspections, onsite reviews, program compliance and
oversight, and portfolio reviews.
Working Capital Fund (WCF)
The Office of Housing is requesting $24.4 million to support the Working Capital Fund (WCF) fees
for its use of shared services. The WCF funding level reflects payments for baseline WCF services
and the additions of the end-user devices business line, the Printing Services business line, HR
platform licensing, and the full cost recovery of FSADD Financial Management expenses. This is a
$4.9 million increase from the 2022 annualized CR funding level. This includes $1.6 million in cost of
living increases within the current WCF business lines and increased staffing levels planned for
HUD offices. It also includes $4.1 million increase for the addition of the ServiceNow and Printing
Services· business lines.
Information Technology
FHA Catalyst is a critical IT modernization initiative to make FHA systems operationally more
efficient and effective for both internal users and external customers. This modernization effort is
necessary for FHA to support HUD's mission and objectives including to promote homeownership,
equitable access to credit, and promote wealth building in underrepresented communities. HUD is
assuming full funding of FHA Catalyst as part of the 2022 Budget.
Within the IT Fund, the Budget requests $5 million for integrated Real Estate Management System
(iREMS) and $1.5 million for Tenant Complaint Customer Relationship Management (CRM).
These two projects will directly support HUD's Project-Based Rental Assistance (PBRA) program in
providing over 1.2 million low-income and very low-income families with decent, safe, and affordable
housing:
46-4
RL(ja) 47-463 05/03/2022
333
OFFICE OF HOUSING
• iREMS Modernization:
Program Pain Point
The integrated Real Estate Management System (iREMS) is the primary system for the oversight
and asset management of insured and assisted properties in the portfolio ofHUD's Office of
Multifamily Housing Programs. General Service Administration, Government Accountability Office,
and Multifamily leadership have found that iREMS is vulnerable to unacceptably high risk of data
errors from manual input processes, having to use ad hoc tools such as MS Access for reporting, and
not interfacing with other systems in real time.
Congressional mandates and Executive Orders that require Multifamily Housing action, such as
security, privacy, and records management regulation, energy efficiency programs, FHA pilot
programs, and the Rental Assistance Demonstration, are all hampered by an inability to integrate
them fully into the Multifamily Housing asset management process in iREMS. Reporting from Asset
Management field staff is often inaccurate because of inconsistencies between HEREMS, the
underlying source database, and iREMS. Poor quality Housing data continues to increase the risk of
HUD failing to meet its monitoring requirements of troubled properties within its portfolio.
Mission Benefits
The success of MFH and HUD's mission is deeply tied to the decision-making done from HEREMS to
iREMS data processing. Therefore, ensuring the accuracy, completeness, reliability, and timeliness
of this data has broad cross-program implications. An improved HEREMS to iREMS database model
will serve as the central data repository for all Multifamily Housing, collecting data from more than
20 systems and integrating data across systems. Improved data and reporting in iREMS will provide
essential support to HUD's efforts to provide decent, safe, and sanitary housing for tenants and to
ensure program compliance.
Target Functionality
• Increase regulatory compliance on currently non-compliant mandates from privacy,
cybersecurity, and records managemeni.
• Increase flexibility in responding to the fast-evolving business requirements of MFH by
providing more tools to adapt to the forecasted increase in MFH loan applications.
• Enhance decision-making, ensuring the accuracy, completeness, reliability, and timeliness of
iREMS/HEREMS data has broad cross-program benefits.
Projected Cost Savings
The existing HEREMS/iREMS data model is outdated, expensive, difficult to maintain, and it is
currently failing to meet system requirements. !REMS has an estimated $2 million backlog in
development priorities that continues to grow. Improvements in the system would result in a cost
benefit as it would support efficiencies in HUD's asset management and oversight functions.
• Tenant Complaint CRM System:
Program Pain Point
Multifamily (MFH) Asset Management staff, Performance-Based Contract Administrators (PBCAs),
the Multifamily Clearinghouse call center, and Field Program Management (FPM) staff are unable
to conduct unified intake, tracking and resolution of tenant feedback related to unsafe and
unsanitary property conditions or concerns about exigent health and safety conditions in
Multifamily-assisted properties. The various parties maintain multiple systems with disparate
rudimentary and uncoordinated logging and tracking of information, which is not conducive to
ensuring the issues identified by tenants are addressed swiftly and satisfactorily.
As a result, MFH is substantially limited in its ability to understand, track, and address such
complaints without a centralized tracking/response system. The current practice of various entities
46-5
RL(ja) 47-463 05/03/2022
334
OFFICE OF HOUSING
within HUD and contractors logging and acting on feedback independently restricts HUD's ability to
manage its property portfolio in a coordinated manner.
Mission Benefits
An integrated tenant complaint logging and tracking system would allow HUD to effectively assess
and act upon a wide variety of complaints regarding properties in its portfolio and take a coordinated
approach regardless of the point of intake and allow all entities to track and update progress toward
resolution in real time. This would allow HUD to both be more responsive to tenants by ensuring the
appropriate party follows up and more efficient by avoiding duplicative work on the same issue.
This integrated tenant feedback tracking system will also enable HUD to better understand the
overall volume and nature of complaints both at individual properties and across different portions
of our portfolio, such as by city, program, or management agent, resulting in increased awareness of
conditions and potential issues within the MFH property portfolio.
Target Functionality
• Full integration as a single system for intake and tracking of tenant complaints by MFH
Asset Management staff, PBCAs, the Multifamily Clearinghouse call center, and FPM.
• Ability of staff to have real time feedback and reporting on status of tenant complaints and
ongoing action tracking and reporting.
• Ability to aggregate instances of tenant feedback within a particular property and across
portfolio on an ongoing basis.
Projected Cost Savings
PBCAs and other contractors would not need to invest in standalone system(s). An integrated
platform would also reduce duplication of effort across all responsible parties.
Remaining Implementation Costs in Outyears
NIA
For additional information regarding HUD's IT investments, please see the Information Technology
Fund justification.
KEY OPERATIONAL INITIATIVES
The 2023 Budget resubmits the proposal from the 2022 President's Budget to restructure the Office
of Risk Management and Regulatory Affairs (ORMRA) by removing the Office of Manufactured
Housing and establishing this Office as a standalone organization reporting directly to the Office of
the Assistant Secretary for Housing-FHA Commissioner.
The Office of Manufactured Housing Programs (OMHP) is currently situated in ORMRA, with the
OMHP Administrator reporting directly to the Deputy Assistant Secretary for ORMRA. OMHP's
mission is to protect the quality, durability, safety, and affordability of manufactured homes.
However, the predominant focus of ORMRA is the unrelated mission to manage FHA credit and
operational risk. As a result, OMHP's secondary and misaligned position often deters prioritization
of Secretarial objectives for manufactured housing. As a particularly important and increasingly
viable housing option for Americans today, support for and awareness of manufactured housing as a
high-quality, affordable homeownership option is absolutely critical to furthering HUD's mission.
Since the inception of the Federal construction regulations mandating minimum construction and
safety standards put in place and overseen by HUD since 1976, the design, quality, construction,
energy efficiency, and stability of manufactured homes have completely evolved and been
transformed into a stable housing product of comparable quality and lifespan to site-built housing,
while maintaining affordability. However, government prioritization and support, as well as policy
46-6
RL(ja) 47-463 05/03/2022
335
OFFICE OF HOUSING
advances, are still required to further optimize this sector of housing to promote this as a key
solution to addressing our Nation's affordable housing crisis. While manufactured housing serves all
sectors of the population, its continued availability and affordability is especially critical for young
families, individuals with moderate or low incomes, and elderly households with fixed incomes.
OMHP needs to be more appropriately realigned as a direct reporting office of the Office of the
Assistant Secretary for Housing-FHA Commissioner. Restructuring the office to report directly to the
FHA Commissioner will open access to much-needed resources (FTEs, hiring priority, travel budget,
etc.) that currently are insufficient and unavailable to OMHP due to organizational hierarchy and
Departmental procedure. Elevating the office will provide the necessary authority levels required to
reform existing processes, reduce obstacles, and streamline improvements necessary to achieve
objectives for manufactured housing prioritization. This will also help ensure OMHP is actively
engaged in cross-HUD initiatives to support and promote manufactured housing as an affordable
housing solution. This proposed office structure allows for more direct collaboration between the
Office's director and the Assistant Secretary as the organization and the Administration works to
expand affordable housing options while formulating and guiding policies to protect consumers who
reside in manufactured homes. Accordingly, within the Office of Housing-FHA Commissioner, plans
are underway for changes in execution and program administration within this office via this
requested restructure. The plan will reflect staffing and organizational changes to the program,
moving from a component office to reporting directly to the Office of the Assistant Secretary for
Housing - FHA Commissioner.
46-7
RL(ja) 47-463 05/03/2022
336
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Program Offices Salaries and Expenses
Office of Policy Development and Research
SALARIES AND EXPENSES
(Dollars in Thousands)
Personnel Services $25,432 $2,662 $28,924 $31,586 $4,300 $34,386 $38,686
Non-Personnel Services
Travel 100 100 330 330
Printing 70 120 120 120 120
Other Services/Contracts 596 5,000 500 5,500 2,047 2,522 4,569
Training 162 234 234 250 250
Supplies 9 15 15 15 15
Furniture and Equipment 10 10
Claims and Indemnities
Total, Non-Personnel
Services
$838 $5,000 $979 $5,979 $2,047 $3,237 $5,284
Working Capital Fund $2,448 1,977 1,977
Carryover $7,662 6,347 6,347 2,000 2,000
Grand Total $36,380 $1,662 $36,250 $43,912 $6,347 $41,600 $47,947
FTEs 150 15 162 177 23 185 208
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Policy Development and Research (PD&R) supports HUD's mission to create strong,
sustainable, inclusive communities and quality affordable homes for all. PD&R is responsible for
maintaining current and historic information on housing needs, market conditions, and existing
programs, as well as conducting research on priority housing and community development issues.
PD&R's research, surveys, and policy analysis inform all aspects of HUD programs, providing a
comprehensive, historical, evidence-based understanding of past program performance as well as
objective data for policymakers and stakeholders to make informed decisions. PD&R provides
economic information, research, analysis and policy recommendations to the Secretary, Deputy
Secretary, Assistant Secretaries, and principal staff. PD&R also facilitates effective, timely, and
innovative Technical Assistance (TA) delivery that builds capacity of HUD customers to achieve
program outcomes.
Within PD&R, there are five Offices with extensive cross collaboration:
The Office of Economic Affairs analyzes the economic impact of HUD and other Federal
regulatory and legislative proposals, directs the program of surveys of national housing
conditions, analyzes private sector data on mortgage markets, supports Federal Housing
Administration operations, develops program operating parameters for HUD rental
47-1
RL(ja) 47-463 05/03/2022
337
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
assistance programs and government programs, and provides data on the socioeconomic and
housing market conditions of cities, counties, and States.
• The Office of Research Evaluation and Monitoring (OREM) staff designs and oversees HUD
funded research, evaluation, and monitoring efforts for a wide variety of HUD programs and
activities, housing construction, and community planning. Staff also conducts in-house
research, data analysis, and geospatial analysis. The office develops and maintains
administrative data spanning more than 20 years across all ofHUD's programs and uses the
data to provide situational awareness for immediate policy issues and to facilitate more
extensive studies.
• The Office of Policy Development (OPD) engages in policy analysis, policy development,
innovation and process improvements, research and data analysis, and knowledge
management and dissemination of policy and research findings. OPD analyzes legislative
proposals, develops legislative initiatives, interprets statutory guidance, and prepares
regulatory guidance. OPD also consults on program process improvements and efficiencies to
ensure better strategic alignment with HUD's mission, and coordinates the development of
HUD's Foundations for Evidence-Based Policymaking Act (Evidence Act) Title 1 deliverables.
In addition, OPD engages the international and philanthropic sectors to harness best
available evidence, innovations, and lessons in thoughtful development and revitalization to
increase mutual learning opportunities and long-term community-building. OPD's role as a
portal for the international community and philanthropic sector makes the office a broker for
new ideas and evidence-based practices. The purpose of this work is to inform domestic
policies and programs. In 2023, the Office oflnnovation will be subsumed under the newly
created Priority Projects & Innovation Division in OPD.
• The Office of the Chief Data Officer (CDO) is the primary organization responsible for
performing the data governance activities outlined under the Evidence Act. The CDO has
agency-wide responsibility for: ensuring lifecycle data management of critical information
and data systems; standardizing data formats and minimizing duplication of data across
internal systems; and coordinating the use, protection, and dissemination of agency data.
Additionally, CDO leads HUD's effort to construct a comprehensive data inventory including
metadata of data assets across the agency and identify those considered public data assets.
CDO also supports the design of data integration solutions across HUD as well as between
HUD and other Federal/non-Federal agencies.
• The Office of Technical Assistance (OTA) is an office that would be newly established in 2023
that realigns the Technical Assistance Division (TAD) from the Office of Community
Planning and Development (CPD) to PD&R. The OTA manages HUD's TA program,
equipping HUD's customers with the knowledge, skills, tools, capacity, and systems needed
to successfully implement HUD programs and policies and be effective stewards of Federal
funding. The OTA provides programmatic technical assistance to HUD grantees across the
Department. The assistance takes the form of needs assessments, direct TA, tools and
products, trainings, data analysis, and knowledge management. In addition to TA for all of
HUD's programs, the OTA also provides TA support for emerging priorities and Secretarial
initiatives.
Supporting these Offices within the Office of the Assistant Secretary are four Divisions: Budget &
Financial Management; Management & Administrative Services; Grants Management & University
Partnerships; and the newly established Procurement Management Division.
HUD's mission is critical to achieving the President's vision to ensure that we build back better from
the public health and economic challenges and address longstanding systemic challenges, including
racial injustice, rising inequality, and the climate crisis. HUD's work is essential to improving the
quality of life of the American people, and this investment in PD&R's salaries and expenses will
assist in ensuring that work is able to be done.
47-2
RL(ja) 47-463 05/03/2022
338
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
BUDGET OVERVIEW
The 2023 President's Budget requests $41.6 million for PD&R Salaries and Expenses (S&E), which
is $5.4 million more than the 2022 annualized CR level. The Budget reflects total funding (carryover
and new authority) of $47.9 million, $4.0 million above 2022 total funding.
Personnel Services (PS)
The Budget assumes total funding of $38.7 million for PD&R PS, $7.1 million above 2022 total
funding. This funding level will support 208 Full-Time Equivalents (FTEs), an increase of 31 FTEs
from 2022, 24 of which supports the realignment of the TAD to PD&R. The remaining seven FTEs
provide additional staff to support the new OTA, and provide support for Regulatory Impact Analysis
(RIA), CARES Act requirements, Evidence Act implementation, and other Departmental and
Congressionally mandated research projects and priorities. The requested funding supports a
4.6 percent Federal pay raise, promotions, within grade increases, and succession planning.
Non-Personnel Services (NPS)
The Budget assumes total funding of $5.3 million for PD&R NPS, $695 thousand less than 2022 total
funding. This decrease is attributed to lower costs in contractual services. The primary cost driver in
NPS is the continued contractual services funding for OCDO. Funds will be used to establish
infrastructure to support data integration solutions and the consolidation of HUD-wide data
management contracts.
Working Capital Fund (WCF)
The Budget assumes total funding of $2 million for PD&R's WCF requirements, which is
$526 thousand above the 2022 Annualized CR WCF requirements that were forward funded at the
end of 2021. The WCF funding level reflects payments for baseline WCF services (including
inflationary adjustments and changes in service utilization) and the additions of the End-User
Devices business line, the Printing Services business line, HR platform licensing, and the full cost
recovery of (Financial Services Acquisition and Development Division) FSADD Financial
Management expenses.
Information Technology (IT)
Within the Information Technology Fund, the Budget requests $2 million for Enterprise Geographic
Information System (eGIS) and $500 thousand for PD&R's Disaster Recovery Portal.
• Enterprise Geographic Information System (eGIS)
Program Pain Point
Decision makers at all levels rely on the examination of accurate data for the effective development
and implementation of data-driven housing policies. To that end, the Office of Policy Development
and Research (PD&R) conducts mission-critical analyses of priority housing and community
development issues while developing and maintaining the data required for that work. HUD's
Enterprise Geographic Information System (eGIS) program was established in PD&R to manage day
to day operations of the Department's shared geospatial business solution which satisfies the
common requirement for geospatial data and analytical capabilities in support of the Department's
mission and strategic objectives. When brought to bear, these data and tools allow personnel to
develop and apply actionable intelligence used to craft effective housing policies that are data-driven
and equitable in scope. Unfortunately, HUD's existing enterprise geospatial solution now falls short
47-3
RL(ja) 47-463 05/03/2022
339
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
of what is required to support robust housing and community analysis moving forward, and the
inability of public to interface with HUD offices and data sources.
The increasingly obsolete architecture ofHUD's existing system limits the scale and scope of the
work that program analysts and policy developers engage in. In its current state, analysts cannot
effectively use the solution to collaborate with one another on mission-critical assignments that
require the examination of sensitive geospatial housing data. This limitation impedes the progress of
collaborative projects requiring robust geospatial study and remains a source of considerable
frustration for analysts and leadership alike.
Mission Benefits
Development, modernization, and enhancement (DME) cfHUD's geospatial business solution and
enterprise applications will significantly improve the Department's analytical capabilities allowing
for greater insights into national housing issues. Improved performance of the updated system will
provide expanded access to rich datasets which remain largely unavailable to Departmental staff
due to the shortcomings of the current platform. Modernization of HUD's geospatial resources will
likewise improve the security posture ofth<a system enabling HUD's program analysts and policy
developers to collaborate on assignments requiring the analysis of sensitive (i.e., PID geospatial
data. The proposed upgrade will also empower HUD's program analysts to create analytical
reporting tools and standalone applications required by stakeholders, but which cannot currently be
developed due to existing system constraints. In addition, HUD's Community Planning and
Development (CPD) will benefit from this upgrade to support its mission objectives by modernizing
its customer self-service portal as well as improve its data collection and process automation
capabilities. The impacted systems for CPD that require updates are: CART (Community
Assessment Reporting System), HRL (Housing Resource Locator), TDAT (Tribal Directory
Assessment Tool), and CPD-MAPS (Community Planning & Development Maps).
In addition, improvements of the existing system architecture will obviate the current requirement
to maintain project-related geospatial data in a cloud-based software as a service (SaaS)
environment thus resulting in substantial cost savings for the Department. For example, proposed
improvements to HUD's existing geospatial solution include the implementation of a business facing
GIS user portal deployed within HUD's network. User activity will take place within HUD's network
thereby eliminating the cost required to accommodate collaborative work and data storage in a SasS
environment. Furthermore, enhanced capabilities for application development enabled by system
modernization will allow for the in-house creation of new applications. This eliminates the current
need to earmark funds for new application development as well as protracted contract negotiations
required to secure a vendor for such work.
Target Functionality
Modernization of the Department's geospatial business solution and enterprise applications will
result in:
• Substantial improvements to system security, performance, user access, and resource
management.
• Significantly enhanced capacity for analysis, collaboration, application development, and the
crafting of actionable intelligence.
• Considerable cost savings for the Department.
Projected Cost Savings
Improving HUD's existing geospatial business solution will allow the Department to realize
significant cost savings associated with the storage and maintenance of project-related geospatial
data. Moreover, improved capacity for in-house application development will eliminate the need to
engage in the prolonged contract negotiations and costs required to secure commercial vendors to
provide those services.
47-4
RL(ja) 47-463 05/03/2022
340
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
• Disaster Recovery Portal
Program Pain Point
HUD has identified the need for a new process and tools for data sharing with the Federal
Emergency Management Agency (FEMA) and CDBG-DR grantees. This project will eliminate the
need for Individual Assistance Information Sharing Access Agreements (ISAAs) between FEMA and
HUD also with FEMA and CDBG-DR grantees as it will make that data readily available to grantees
through the Disaster Recovery Data Portal (DRDP) application. It will also eliminate the need for
requesting data from FEMA to perform the CDBG-DR allocations process when congressional funds
are appropriated.
While data being shared is similar, or in fact the same, it requires multiple resources from multiple
program areas within HUD and FEMA to request and process data sets. If the bidirectional data
exchange process was in a completed stage that data could be shared within HUD to multiple
resources/programs in a fashion designed to only make available, the necessary program data to only
those with a valid need to know and manage one data set for multiple users. This would also ensure
that all users are accessing the same data and would eliminate a misunderstanding of the data as
well and ensure all areas are utilizing the same data.
Mission Benefits
Real time data sharing enables decision making that is focused on elimination of duplication of
benefits, adequate assistance value to the customer, ability for multiple programs to utilize one
standard data set, correct and accurate FEMA data for HUD and HUD CD BG-DR grantee use,
enhanced disaster survivor support functions and enhance data security across multiple federal
agencies.
The Disaster Recovery Portal (DRDP) is within HUD's purview of the project and HUD will share
the 'new processes' aspect with FEMA. FEMA will solely fund their efforts' development needs.
In addition, DRDP will provide the ability to avoid duplication of benefits between FEMA, HUD, and
SBA assistance; the ability to identify geographical areas that are the most at risk due to high level
of unmet needs; the ability to complete early determination of projects at the CDBG-DR grantee level
that will provide/return disaster survivors to long term sustainable housing; and reduction in
duplication of efforts by multiple federal agencies in similar processes. This in turn will reduce the
need for multiple touch points with applicants that are related to similar cross agency processes.
Hence, this project has the capability to enhance the disaster survivor experience as mandated in the
Disaster Recovery Reform Act of 2018. HUD's cost to FEMA is approximately $415 thousand over
the next seven years, but will increase once any further development begins.
Target Functionality
DRDP will result in:
• Real time data sharing to enable informed and immediate decision making
• Ability for multiple programs to utilize one standard data set
• Provide correct, accurate, and the most up to data available data
Projected Cost Savings
As this is a cross agency effort between FEMA and HUD therefore the overall federal benefit is
shown below:
DRDPD and the new processes will result in significant cost savings to both agencies. We estimate
that HUD grantees pay approximately $13 million average annual housing repair or rehabilitation
assistance payments to homeowners who are also reimbursed for these costs by FEMA. By providing
timely and automated matching and delivery of data, we estimate that at least one half of these
duplicate payments will be avoided and reduces the need for labor intensive and time-consuming
47-5
RL(ja) 47-463 05/03/2022
341
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
efforts to recover the excess payments. We also estimate that FEMA will save approximately
$900 thousand annually.
• IT Projects to be Funded by S&E Transfer Authority
In addition to the above projects, PD&R has IT requirements that are intended to be funded by the
transfer authority proposed in Section 231. This provision, if approved, would allow for up to
$10 million to be transferred from the program office S&E account to the IT fund. HUD proposes to
use $7 .5 million of these transferred funds and expected carryover funding to cover the costs of the
following in 2023:
• Conversion of PD&R's Management Information System {MIS): $500 thousand is needed to
convert the current unsupported, non-FITARA-compliant software platform to a supported
software platform. MlS is used to monitor project closeouts, in-house research projects, and
travel. Failure to address this need will impact PD&R's ability to accurately track and
monitor procurement requests, resulting in missed requisition release dates and improper
funds control.
• Data Governance activities: $2 million is needed to advance the agency foundational
governance, planning, and infrastructure activities to enterprise activities for enterprise
standards, budgets, and collaboration for enterprise data management. Enforcement of
policies, common processes, coordination and collaboration amongst data leaders and experts
will move the agency in a shared, common direction to improve data quality and analytics
capacity in support of the Foundations for Evidence Based Policy (FEBP) implementation
and meeting the milestones in the 2019, 2020 and 2021 Federal Data Strategy Action Plans.
• Enterprise Data and Resource Management System (eDARMS): $3.5 million is needed to
implement OCDO's data management framework system - eDARMS. It will also have a
major impact on the OCDO's ability to expand the enterprise research, analytics, and
reporting system Policy and Research Information Server (PARIS), which provides research
and statistical reporting on HUD's Housing program. These funds will be used to consolidate
HUD data marts and data warehouses into eDARMS to improve data management, data
quality, and consistency of reporting. Investments in PARIS will gather additional programs
data and improve data analytics to inform management decision making. This is a planned
collaborative initiative between the OCDO and the OCIO Enterprise Architecture Office.
These investments directly support the implementation of the FEBP Act of 2018 and 0MB
Memorandum M-19-23.
• Open Data Initiatives: $1 million is needed to improve the management and accessibility of
data to support the HUD mission, properly safeguard systems and personal information, and
increase public access to valuable agency information.
• PD&R Data Dissemination Systems Security Upgrades: $500 thousand is needed to make
HUD compliant with FITARA. These systems are used by Headquarters staff and field
economists to accomplish their data management, research, and reporting duties. Failure to
provide adequate funding will result in unsupported software/platforms, possible security
risks, and negative impacts to PD&R's ability to provide accurate and timely data, research,
and reporting.
For additional information regarding HUD's IT investments, please see the Information Technology
Fund justification.
47-6
RL(ja) 47-463 05/03/2022
342
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
KEY OPERATIONAL INITIATIVES
Evidence Act
PD&R continues to lead HUD's full implementation of the Evidence Act. All three of the key
leadership positions required by the Act-the Evaluation Officer, Chief Data Officer, and Statistical
Official-were assigned to members of the PD&R staff. The Act mandates significant new
responsibilities, with demands on S&E resources, beyond previously established roles in building
HUD's institutional capacity to use evidence to inform policy.
Supporting the Management Agenda
PD&R is a leader in using modern information technology to inform and improve HUD's program
operations and public accountability. PD&R staff support and use HUD's data analytics and
business intelligence software (SAS/BI) server as a centralized data resource by adding datasets,
facilitating independent research, and fulfilling ad-hoc requests for administrative data analysis.
PD&R has created and maintained Geographic Information Systems to facilitate spatial
interpretation of the data by HUD officials and the public.
PD&R recognizes that keeping sensitive data secure is critical to maintaining the public trust and
has appointed an Information System Security Officer (ISSO) in cooperation with HUD's Office of
Information Technology Security. The ISSO protects information systems, implements security
controls, and helps ensure compliance with the Federal Information Security Management Act.
These functions will further develop and mature during 2023 under the oversight of the Chief Data
Officer and Statistical Official.
PD&R is committed to providing data, tools, and data products in support of evidence-based policy,
transparency, and public interest. Staff resources ·support performance management of HUD's
agency priority goals, and development of performance metrics. PD&R provides open access to
numerous datasets including administrative data and survey data on the HUDUSER.gov and
Census Bureau websites, offers data licenses for restricted-use data, and links administrative data
with survey data to enable analysis of cross-cutting policy questions affecting HUD housing
programs. PD&R also has arranged to provide experimental datasets from program demonstrations
with extensive data linkage capabilities to qualified researchers through the Census Bureau.
PD&R is striving to build a modern workforce and high-performing management teams in support
ofHUD's evolving mission needs. Improving succession planning is central to this objective. PD&R
supplements generalized training offered by HUD with custom training in the technical skills
needed by analytic staff. PD&R supports staff-led knowledge collaboratives that focus on specific
policy areas to share knowledge and undertake research initiatives. PD&R is also developing the
next generation of leaders by offering management rotations to give mid-level staff hands-on
experience in supervision and management.
Facilitating HUD's Budget Priorities
PD&R staff supports HUD's effort to meet the Administration's priorities by working with program
offices to implement rigorous evaluations, conducting in-house research, and serving as technical
experts on a range of policy topics. Key activities that support each priority include the following:
• Support Underserved Co=unities:
o Explore housing assistance programs and supports that can be effective in helping
vulnerable households maintain housing stability in the event of economic shocks.
47-7
RL(ja) 47-463 05/03/2022
343
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
o Explore and identify policies to support the housing search process and successful
voucher lease-up for vulnerable populations, including persons with disabilities.
o Collaborate with other Federal partners on approaches to using Medicare and
Medicaid funds to support affordable senior housing as a platform for coordinating
health and wellness programs.
o Conduct rigorous evaluations measuring the impact of interventions for homeless
families and new models for financing permanent supportive housing for people
experiencing homelessness with frequent contact with criminal justice, homeless
services, and health care systems.
o Collaborate with partners at Health and Human Services (HHS) to evaluate how
HUD-assisted families access support for childcare services and the barriers to
accessing support.
o Conduct rigorous studies of housing discrimination among historically disadvantaged
groups, and approaches for overcoming the barriers faced by HUD-assisted
households in accessing job training, job search services, and childcare, and asset-
building.
• Ensure access to and increase the production of affordable housing:
o Explore and identify policies to support the housing search process and successful
voucher lease-up for underserved and vulnerable populations.
o Publish semi-annual reports on Worst Case Housing Needs and annual reports on
strategies for increasing housing supply in high-productivity metropolitan areas.
o Support cooperative research in housing technology, including innovative
technologies that reduce the price of housing construction.
o Study the gaps in financing for affordable housing and the opportunities that exist to
encourage the production of new housing and to preserve existing or naturally
occurring affordable housing.
o Implement a rigorous evaluation of the Housing Choice Voucher Mobility
Demonstration focused on improving housing choices.
o Conduct rigorous evaluations of landlord incentives, rent reform, asset-building, and
other innovative approaches to be implemented in the Moving to Work expansion.
• Promote homeownership:
o Collect information on the nation's housing stock, housing finance, and
characteristics of markets, neighborhoods, and occupants, and supports national,
regional, and metropolitan area analyses.
o Provide important data and analysis necessary to monitor housing needs, housing
finance topics, and local housing market conditions.
• Advance sustainable communities:
o Explore the ways in which Community Development Block Grant Disaster Recovery
(CDBG-DR) funding supports recovery and resilience.
o Implement research and data projects identified in HUD's Climate Action Plan.
o Support the research priorities of the Federal Lead Action Plan and integrate lead
hazards and healthy homes research into HUD's learning agenda development and
Research Partnerships program.
47-8
RL(ja) 47-463 05/03/2022
344
OFFICE OF POLICY DEVELOPMENT AND RESEARCH
• Strengthen HUD's internal capacity:
o PD&R staff leads the development of HUD's Learning Agenda and institutional
evidence-building Capacity Assessment in support of the Evidence Act and HUD's
Strategic Plan.
o PD&R policy staff supports other program offices by leading a coordinated effort to
develop performance metrics, enhance program data collection, and evaluate
outcomes of tenants who leave HUD assistance, and by developing a framework and
feasibility analysis for a national evictions database.
o Aligning with the Department's Fraud and Risk Management Policy, PD&R
continues to improve and expand its own internal management funds controls and
risk management policies and procedures to ensure optimal risk mitigation.
• Reorganizations:
o In an effort to gain operational efficiencies, the following reorganizations are
proposed in 2023: the TAD will realign 24 FTEs from CPD to PD&R; By having the
funding and staffing to support the strategy, implementation, and administration of
the TA funding centralized in PDR, it clearly makes TA a cross-office function and
prioritizes the staffing to serve all of the offices of HUD. Realignment will result in
the fulfillment of the vision for HUD TA as a holistic, outcome-based program that
serves the entire Department's TA needs. Further, HUD intends to allot separate TA
set-asides to PD&R to centralize the number of Cooperative Agreement Officers and
GTRs to ensure proper standardization and risk mitigation for the Department. This
realignment will also improve the ability to create cross-program benefits and
efficiencies for TA that can serve multiple programs. Furthermore, it improves the
ability to facilitate the transfer of research evidence and learning to TA providers so
they can transfer knowledge to grantees more efficiently.
o PD&R has the following internal Jeorganizations: the Priority Projects & Innovation
Division will be added under OPD; the Office of Innovation will realign under the
newly established Priority Projects & Innovation Division; the Program
Demonstration Division will be added under OREM; and the Procurement
Management Division will be added under the Office of the Assistant Secretary.
47-9
RL(ja) 47-463 05/03/2022
345
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Program Offices Salaries and Expenses
Office of Fair Housing and Equal Opportunity
SALARIES AND EXPENSES
(Dollars in Thousands)
G~ ·.·.•~ . ••c»·. . ., '•. ·~lJI, ;\=·····.·. . . ~•.;.~.·• .•. .·<,, ..
\itiii? "\ , ···•·•···· .. >li022 ' \C, ·; .. .:• ,.••. ,,., ......... \.·211: 3. / ;:, .<, ;. ;
ct
; ;
'... ••· . ,). ·(''" {,1,f::2·· 1 ·.• .· .+,,1..
.\'.s11t'111 1. .·
Personnel Services: $76,135 $4,156 $77,640 $81,796 $97,175 $97,175
Non-Personnel Services:
Travel 7 500 - 500 - 391 391
Transportation of Things - - - .
Rent and Utilities 2 . 2 . 2 2
Printing 1 5 5 . 5 5
Other Services/Contracts 1,326 1,648 2,123 3,771 . 3,502 3,502
Training 567 650 650 450 450
Supplies 9 77 77 77 77
Furniture and Equipment . . . . -
Claims and Indemnities - . -
Total, Non-Personnel
$1,910 $2,882 $2,123 $5,005 $4,427 $4,427
Services
Working Capital Fund 2,427 1,340 1,340 4,198 4,198
Carryover 8,378 . . . .
Grand Total $88,850 $8,378 $79,763 $88,141 $105,800 $105,800
FTEs 534 28 524 552 630 630
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Fair Housing and Equal Opportunity's (FHEO) mission is "to eliminate housing
discrimination, promote economic opportunity, and achieve diverse, inclusive communities by
leading the nation in the enforcement, administration, development, and public understanding of
Federal fair housing policies and laws." FHEO's fundamental duty, therefore, is to help create equal
housing and credit opportunities for all persons living in America, which it does by administering
and enforcing laws that prohibit housing discrimination on the basis of race, color, religion, sex
(including gender identity and sexual orientation), national origin, age, disability, and familial
status.
The Administration has made fair housing a central pillar in its equity agenda, requiring a
revitalized FHEO to play a key role. FHEO is tasked with simultaneously addressing both day-to-
day discrimination claims and longstanding systemic inequities that are the legacy of a long history
ofracial and other injustice. This investment in FHEO's salaries and expenses will ensure that work
is done efficiently and effectively.
48-1
RL(ja) 47-463 05/03/2022
346
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
BUDGET OVERVIEW
The 2023 President's Budget requests $105.8 million for F1IEO S&E, which is $26 million more than
the 2022 annualized CR level. The Budget reflects total funding of $105.8 million, $17. 7 million
above 2022 total funding.
Personnel Services (PS)
The Budget assumes total funding of $97.2 million for F1IEO Personnel Services (PS), $15.4 million
above the 2022 total funding level. This funding will support 630 full-time equivalents (FTEs), an
increase of 78 FTEs from the 2022 funding level. The Budget supports a 4.6 percent Federal pay
raise.
With the funding requested in 2023, F1IEO will prioritize the hiring of staff in field offices to support
Title VIII of the Civil Rights Act of 1968, "Fair Housing Act" (Title VIII) fair housing enforcement
and civil rights compliance activities. FHEO will continue its practice of maintaining its primary
staffing in the field. F1IEO currently has approximately 80 percent of its staff located in the field.
The majority of FHEO's work is carrying out statutory and regulatory duties that have existed in
some form for years. For the last decade, F1IEO has taken this responsibility with a greatly
reduced staff. In 2010, F1IEO maintained 573 FTEs. F1IEO hit a low of 433 FTEs in 2019 and has
aggressively worked to rebuild staffing over the last two years. FHEO is projected to end 2022 at
552 FTEs. However, that is still a net reduction of 21 FTEs, or four percent, over the last decade. The
long-term reduction resulted in significant challenges to F1IEO's capacity. However, F1IEO has
begun to build back staffing and expertise to restore capacity and carry out the Administration's
agenda of addressing longstanding equity issues related to fair housing. This Budget seeks to build
on increases from 2022, to further provide the resources for much needed staffing increases.
FHEO will continue to engage in Title VIII complaint intake and investigations in accordance
with its non-discretionary duty to ensure that each complaint is properly handled. F1IEO expects
a consistent high level of fair housing complaints for 2023. Every inquiry from the public must
receive staff attention to assess whether.there is a jurisdictional complaint, which leads F1IEO to
diverting more staff to intake and the resulting complaints. F1IEO predicts the non-discretionary
enforcement caseload will increase while ensuring full enforcement for all claims under the Fair
Housing Act's (Act) purview. Title VIII caseloads will also increase with the renewed emphasis of
addressing systemic discrimination, including through Secretary initiated complaints, consistent
with the Administration's overall equity agenda. FHEO requires additional highly skilled staff with
specialized capabilities to address disparities and discriminatory housing practices, including those
in the lending and appraisal industries.
F1IEO also will need additional human capital to fully execute the part of its mission that
involves ensuring non-discrimination in HUD-funded programs. In previous years, such
affirmative compliance activities were deemphasized, as a limited number of Headquarters and
Regional staffs focused on Act enforcement. With this request, F1IEO will also devote
compliance staff to combating other challenges in HUD-funded programs and projects, such as
disability discrimination, segregation of HUD-funded housing, discriminatory nuisance ordinances,
discrimination faced by HUD-assisted housing seekers, and ensuring that the administration of
Community Development Block Grant Disaster Recovery (CDBG-DR) funds by participating
jurisdictions does not discriminate against communities of color.
HUD continues regulatory proceedings necessary to return to a more comprehensive implementation
of the Act's mandate to Affirmatively Furthering Fair Housing (AFFH). AFF1I is a priority of the
Administration and FHEO expects to be charged with implementing these requirements in 2023.
F1IEO will need to invest significant staff in AFF1I-related projects including providing sustained
48-2
RL(ja) 47-463 05/03/2022
347
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
technical assistance to HUD grantees at the State and local level. FHEO staff will also be needed to
fully support HUD program staff to ensure HUD grantees conduct successful fair housing planning
and achieve fair housing goals. Funding requested for 2023 is also critical to carrying out the
President's goal to combat appraisal bias and addressing other racial discrepancies in
homeownership. The aforementioned initiatives will strengthen HUD's Internal Capacity.
Specifically, the 2023 Budget will provide essential personnel and non-personnel services to support
several workstreams driven by this Administration's policy priorities. The following list
demonstrates some of the policy, program, and operational needs for this Budget.
• Additional Equal Opportunity Specialists to handle increased Title VIII intake
workload
o In 2022, compared to 2021 year-to-date, FHEO has handled approximately 2,370 more
inquiries from the public reflecting an increase of 25 percent above 2021 levels at the
same time of the year. The 2021 and 2022 levels are in stark contrast and exponentially
more than the numbers in FHEO's recent past; the 2022 inquiry year-to-date level is
6,174 more inquiries than in 2018. For years, FHEO staff has had to balance the Title
VIII workload and continues to do so.
o Training for staff is required in order to properly handle fair housing cases. Additional
training for proper referral for other services, including eviction prevention support and
mental health support, may also be necessary.
• FHEO's monitoring of additional workload for Fair Housing Assistance Program
(FRAP) and Fair Housing Initiatives Program (FHIP) grants
o Increased COVID-related funding for FRAP and FHIP through the CARES Act and
American Rescue Plan have increased the workload for FHEO staff, particularly for the
monitoring of FRAP agencies and FHIP grantees.
• Preventing housing discrimination against the LGBTQ+ community
o Efforts to fully enforce the Fair Housing Act to combat discrimination on the basis of
sexual orientation and gender identity will require sustained resources for enforcement,
training, and education and outreach. This work is in line with a key administration
priority, as laid out in Executive Order 13988- Executive Order on Preventing and
Combating Discrimination on the Basis of Gender Identity or Sexual Orientation.
• Addressing complex systemic housing discrimination issues
o Many emerging issues of housing discrimination such as environmental justice,
algorithmic discrimination in lending, and other lending discrimination require
personnel and outside contracting for specialized analytical services.
o As one example, combating lending discrimination will require signilicant resources in
the.form of contracting funds and information technology support to conduct complex
regression analysis of mortgage lending data. FHEO requires these resources to monitor
the underwriting and lending guidelines of Fannie Mae and Freddie Mac, the two major
government-sponsored enterprises in the conventional secondary mortgage market, for
compliance with fair lending laws.
o On the appraisal bias front, FHEO will also likely be expected to carry out follow up work
resulting from recommendations made by the Property Appraisal and Valuation Equity
Interagency Taskforce.
• Ensuring compliance with civil rights laws in HUD-funded programs
o FHEO plays a critical role in conducting limited front-end reviews and compliance
reviews of HUD-funded programs. These reviews are extremely time-intensive, and due
48-3
RL(ja) 47-463 05/03/2022
348
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
to insufficient resourcing, FHEO has often had to divert compliance staff away from this
work stream to address statutorily required Title VIII investigations and enforcement
activities. FHEO requires sufficient resourcing to ensure proper front-end and
compliance coverage of HUD-funded programs nationwide in keeping with civil rights
laws and the President's Memorandum to HUD on Redressing Our Nation's and the
Federal Government's History of Discriminatory Housing Practices and Policies.
• Ensuring equity in HUD's disaster recovery program
o Unprecedented levels of disaster recovery and mitigation funding in the CDBG-DR
program requires consistent and sustained equity analyses. FHEO's ability to respond
and deliver equity analyses to ensure fairness in grantee administration of disaster
funding depends on sufficient resourcing. This work is also in keeping with, not only civil
rights laws, but the Administration's directives.
• FHEO's capacity to address other significant issues requiring expertise
o FHEO's work intersects with other high priority areas, including ensuring that the
design and construction ·of multifamily housing contains adequate accessibility for
persons with disabilities, addressing discrimination that targets formerly incarcerated
persons, and investigating exclusionary zoning and land use restrictions. This work also
requires significant resources to enable proper staff coverage throughout the country.
AFFH demands specific mention for the impact of this top administration priority on FHEO's
resource needs. In 2023, FHEO plans to hire an additional 25 FTEs to support this effort. HUD's
previous AFFH experience and stakeholder feedback make it clear that effective AFFH
implementation will require resources for staffing, proper training, technological support, and
communications expertise. This budget level is needed to provide the necessary resources to allow
FHEO to accomplish HUD's existing responsibilities while beginning comprehensive implementation
of the AFFH mandate in a fashion consistent with the requirement and stakeholder needs.
The specific components ofFHEO's AFFH work, all of which requires resourcing at an adequate
level, include:
• Technical Assistance: In order to increase the volume and quality of AFFH technical
assistance (TA) as requested by HUD funding recipients and other stakeholders and HUD
program offices, FHEO must increase its staff to provide oversight of TA providers and
oversee direct TA to HUD funding recipients.
• Data & Mapping: FHEO requires resources to develop improved mapping functionality
that can help HUD staff and HUD funding recipients identify barriers to fair housing. AFFH
requires improvements to the current AFFH-T tool and other potential technology needs. The
necessary improvements will require contracting support as well as additional in-house
capability through expanded licensing and training on ARC Geographic Information System
(ArcGIS) and Microsoft Power Business Intelligence (Power BI) tool. As a component within
HUD's geospatial data program, FHEO is collaborating with OCIO and PD&R to develop
these improvements and interfaces. This expanded capability will allow FHEO to produce
curated data packages for HUD funding recipients. The specialized skills needed for this
function require a minimum of six FTEs, as well as collaboration with the PD&R and OCIO.
• Guidance: FHEO anticipates the need for increased and targeted sub-regulatory guidance
for AFFH to follow the completion of a final rule. Guidance may also be necessary under the
current AFFH interim final rule. This work will require dedicated staffing and expertise.
• Communication: Key to the successful implementation of any present or future regulatory
updates to AFFH will be clear, consistent, and focused education and outreach. FHEO plans
for a targeted education and outreach strategy to message the benefits of AFFH and to
48-4
RL(ja) 47-463 05/03/2022
349
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
provide clarity about how HUD funding recipients can comply with AFFH regulations. This
essential communication function requires additional staffing.
• Staffing: Expertise for oversight and review of fair housing plans will be an important piece
of AFFH implementation.
Non-Personnel Services (NPS)
The Budget assumes total funding of $4.4 million for FHEO Non-Personnel Services (NPS), which is
$578 thousand below the 2022 total funding level. FHEO will allocate $391 thousand in travel,
which is a decrease of $109 thousand below the total 2022 total level, for litigating cases,
undertaking fair housing investigations, conducting compliance reviews, and education and outreach
efforts. FHEO will allocate $3.5 million for contracts, a decrease of $269 thousand below the 2022
total funding level, primarily due to the elimination of the Fair Housing Equal Opportunity Housing
Discrimination Testing contract which is not required to be renewed in 2023. Funding for printing
and supplies are level with 2022 total funding.
Contract Description
Contract funds support ongoing services for legal subscription service, lending data review,
Government-Sponsored Enterprise reviews, and litigation services totaling $1.4 million. The
additional, $2.1 million builds on 2022 contract activities, as described below:
The FHEO Budget requests $2.1 million for renewed contracts.
2023 Renewed Contracts Funding Level
Customer Relationship Manager Subscription $360,000
FHEO Data Science $675,000
Di!rital Communications & Outreach Modernization $1,100,000
Total $2,135,000
The following highlights recent activities in support of FHEO's mission:
Marketing Cloud and Customer Relationship Management: This contract supports FHEO's
responsibility of increasing awareness of the public's fair housing rights and housing providers fair
housing responsibilities. Also, the contract will increase public engagement through human-centric
designed automation to improve HUD customers' experience.
Digital Communications & Outreach Modernization: This contract addresses FHEO's responsibility
to ensure racial and ethnic equality and equity in housing by improving ffiJD's ability to raise
awareness among the general public about fair housing issues. The contract will assist FHEO in
shaping the conversation about high-profile fair housing initiatives and the creation of forward-
facing communications to improve equal housing opportunities for all.
Data Science Program: This contract addresses FHEO's responsibility of ensuring civil rights in all
HUD programs through compliance data by creating a central repository. In addition, this contract
will perform data analysis on the identified risk assessed as civil rights issues.
Working Capital Fund (WCF)
The Budget assumes total funding of $4.2 million for FHEO's contribution to the Working Capital
Fund (WCF), $2.9 million above the 2022 total funding level. The WCF funding level reflects
payments for baseline WCF services (including inflationary adjustments and changes in service
utilization) and the additions of the End-User Devices business line, the Printing Services business
48-5
RL(ja) 47-463 05/03/2022
350
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
line, HR platform licensing, and the full cost recovery of the Financial Services Acquisition and
Development Division (FSADD) Financial Management expenses.
Program Office Priorities
• Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual
Orientation under Executive Order under EO 13988.
• Advancing Racial Equity and Support for Underserved Communities under EO 13985.
• Presidential Memorandum to Secretary on Redressing Our Nation's and the Federal
Government's History of Discriminatory Housing Practices and Policies:
o Restore the Disparate Impact/Discriminatory Effects Rule
o Reinstitute a Framework for Affirmatively Furthering Fair Housing.
• Ensuring an Equitable Pandemic Recovery and Response under EO 13995 through Fair
Housing Guidance:
o COVID-19
o Eviction/Forbearance/Foreclosure Moratorium Expirations
o Availability of Supplemental Fair Housing Assistance Program (FHAP) Funding.
• Tackling the Climate Crisis under EO 14008 through Environmental Justice Collaborations
with the Environmental Protection Agency, the Department of Justice, and other Federal
Partners.
• Strengthening Integration and Inclusion Efforts for New Americans under EO 14012
through the Limited English Proficiency Initiative and Civil Rights Compliance.
• Develop robust civil rights compliance across HUD Programs and in HUD-funded activities.
• Rebuild HUD's Role in Systemic Fair Housing and Fair Lending Enforcement:
o Appraisal Equity Initiative
o Government-Sponsored Enterprise Monitoring
o Algorithmic Methodologies - Online Advertising and Automated Valuations
• Modernize and Advance State-of-the-Art Standards for Accessible Housing.
• Joint HUD-Department of Health and Human Services Effort to promote service-supported,
community-based, and accessible housing opportunities for people with disabilities.
• Interim Final Rule (IFR) for AFFH issued June 10, 2021, restored implementation of the
AFFH requirement. FHEO is preparing for the possibility of additional streams of work
required by a Notice of Proposed Rulemaking. Areas of work include:
o Providing training and tools for HUD funding recipients to create meaningful goals to
address patterns of segregation.
o Holding co=unity and stakeholder engagement sessions to receive feedback on
improvements.
o Implementing a national communications strategy to explain AFFH.
o Engaging and partnering with other Federal agencies on tying in resources and data to
assist HUD funding recipients to make transformational change in communities and
jurisdictions. (Health, Education, Food, Transportation-HEFT)
o Significantly investing in staffing, a data and mapping tool, and overall infrastructure
to manage the work.
Information Technology
Within the Information Technology Fund, the Budget requests $1 million for Affirmatively
Furthering Fair Housing Compliance Improvements.
48-6
RL(ja) 47-463 05/03/2022
351
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
Program Pain Point
The Fair Housing Act, requires HUD and recipients of federal funds from HUD to affirmatively
further the policies and purposes of the Fair Housing Act, also known as "affirmatively further fair
housing" or "AFFH." The obligation to affirmatively further fair housing requires recipients of HUD
funds to take meaningful actions, in addition to combating discrimination, that overcome patterns of
segregation and foster inclusive communities free from barriers that restrict access to opportunity
based on protected characteristics. To facilitate the review of data from funding recipients, two
legacy systems were created for the implementation of the 2015 Affirmatively Furthering Fair
Housing Rule: the Data and Mapping Tool (AFFH-T) and the AFFH User Interface (AFFH- UI). The
AFFH-T is online and has been maintained but was never fully actualized. It provides information at
the local government level but does not have information at the PHA or State level. However, to
provide more updated maps, better useability, and more information FHEO is requesting additional
funding to make improvements to the tool.
The AFFH UI was taken offiine January 2018 and a new system will be needed to comply with any
future Notice of Proposed Rule making on AFFH. The current AFFH Interim Final Rule (IFR) does
not require use of an UI, as it only requires voluntary submission, which can take any format. The
IFR also eliminates certain requirements involved in the 2015 rule. A Notice of Proposed
Rulemaking (NPRM) will likely contemplate a completely different process and structure from the
2015 rule and assessment tool. As such, only a new system will work.
Mission Benefits
The AFFH-T will provide grantees an opportunity to see maps and demographical information from
vetted and reliable sources that will assist in their understanding of the unique factors of their
jurisdiction. The tool already includes information on poverty rates, environmental factors, access to
food, availability of healthcare, access to schools etc. However, we would like to use the funding to
add additional data points and enhance customer useability. The changes to the tool will aid funding
recipients in the process of creating goals that target their unique challenges. Additionally, by
expanding the types of grantees and recipients (PHAs and state grantees) that can utilize the
information provided in the data and mapping tool we will increase the successful implementation
and execution of AFFH. ·
The AFFH-UI will provide grantees with a portal for digital filings of AFFH reports that will replace
a cumbersome paper-based process. Electronic filing of reports will make it easier to submit and
review the files required by the AFFH rule. Other benefits include:
• Integration with other business systems will reduce redundancy of data across multiple
systems.
• Automated FHEO Reviewer Instructions will enable completion of assessment reviews
within the required timeline.
• Increased system interoperability and information sharing within the Department and
among other federal agencies and external organizations.
Target Functionality
• An updated AFFH-T will provide funding recipients with updated demographic information
to better aid in goal setting to adhere with the mandate of AFFH.
• The AFFH-UI solution shall provide a basic reporting module to monitor the activities
associated with the submissions and review processes.
• The AFFH-UI solution will have routing, tracking, and other data functions to incorporate
reporting both for end users and management.
Projected Cost Savings
This project provides electronic filing capability to grantees, which has been a cumbersome paper-
based process and will generate the Notice of Receipt, rather than it having to be manually typed
and issued. These will save labor costs for both HUD staff and grantees.
48-7
RL(ja) 47-463 05/03/2022
352
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Fund Justification.
KEY OPERATIONAL INITIATIVES
FHEO is statutorily obligated to investigate, conciliate, and when appropriate, administratively
enforce several Federal civil rights statutes, including, inter alia, Title VI of the Civil Rights Act of
1964 (Title VI); Title VIII of the Civil Rights Act of 1968, as amended in 1988 (the Fair Housing Act);
and Section 504 of the Rehabilitation Act of 1973. In addition to processing over 1,000 complaints per
year, the Office oversees 5,900 complaints investigations conducted annually. The FRAP agencies
investigate approximately 80 percent of the administrative fair housing complaints filed in the
country. Currently, there are 77 FRAP agencies in the program, including 35 States (including the
District of Columbia) and 42 localities. FHEO also administers and oversees the Fair Housing
Initiatives Program (FHIP), funding 128 private fair housing groups and non-profits nationally
which provide direct assistance to individuals who feel they have been discriminated against while
attempting to purchase, rent, or finance housing. By funding entities through FRAP and FHIP, the
Department not only ensures enforcement of several Federal statutes, but also promotes state and
local control in concerns relating to their communities.
This Budget makes an investment toward eradicating race, national origin, disability, and other
discrimination in the housing and credit market; reducing gaps in homeownership based on
protected characteristics, and otherwise advancing racial equity and supporting underserved
communities and populations in housing and co=unity development. The task is a large one.
Despite decades of prohibitions against housing discrimination, audits of race and national origin
discrimination in the rental and sales market continue to show high occurrence of discrimination
nationwide. Mortgage lenders still reject Black borrowers almost twice as often as White borrowers,
and discrimination in the homebuying process, including appraisals, may be a factor. Architects and
builders continue to design and construct housing that is inaccessible for individuals with disabilities
in violation of Fair Housing Act, Section 504, Architectural Barriers Act, and Americans with
Disabilities Act requirements. Studies have found that same-sex couples and transgender persons in
communities across the country experience demonstrably less favorable treatment than their
counterparts when seeking housing. 1 Many cities wi~h large populations and large rural areas have
no fair housing organizations.
To deal with these major issues and others, the Department will carry out a targeted, focused and
coordinated strategy for enforcement, education, and outreach. In 2016, FHEO began
implementation of a robust Enterprise Risk Management (ERM) framework for identifying and
managing risk. In subsequent years, working with the Department, FHEO began including an
integrated governance structure to improve mission delivery, and to focus and align key operational
initiatives, resources, staff efforts, and corrective actions toward key risks and opportunities which
are most impactful in meeting Departmental goals and that of the President's Budget. Goals include
creation of a SharePoint-based Consolidated Risk Register with user views for identification and
update to risks, issues, strategies, and action plans; organizational change management to include
training materials and events; risk assessment at operational and management work-unit levels,
with intent for strategic, management planning; funding Information Technology (IT) and
performance goals to be reflective of FHEO's risk profile, risk appetite, risk tolerance, and priorities.
The Office of Systemic Investigations (OSI) plays a vital role in fortifying fair housing capacity to
identify, coordinate, conciliate, and otherwise manage the investigations of systemic fair housing
1 Levy, Wissoker, Aranda, Howell, Pittingolo, Sewell, and Santos, 2017; Friedman, Reynolds, Scovill, Brassier,
Campbell, and McKenzie, 2013
48-8
RL(ja) 47-463 05/03/2022
353
OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY
complaints, Secretary-initiated investigations, complaints involving novel and/or complex issues, and
high-profile complaints, such as discrimination in design and construction of multifamily housing,
reasonable accommodation/modifications, mortgage lending, homeowners' insurance, appraisals, and
zoning and land use. In a systemic investigation, multiple victims may be identified, and OSI will
typically uncover broad patterns of discrimination. These additions will enhance the OSI capacity to
analyze complex industry data and conduct fair housing/fair lending testing to uncover unscrupulous
real estate professionals and system-generated biases that undermine the goals of the Department
and create barriers to credit and wealth building for Black Americans and other communities of
color.
Promoting wealth building in underserved communities and populations requires equitable access to
fair mortgage lending, fair mortgage insurance, fair residential property appraisals, and removal of
unnecessary barriers to minorities to participate in the provision of mortgage brokerage services.
This is a growing priority for the Department, and FHEO will need additional resources to properly
investigate bias in appraisals.
48-9
RL(ja) 47-463 05/03/2022
354
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Program Office Salaries and Expenses
Office of Lead Hazard Control and Healthy Homes
SALARIES AND EXPENSES
(Dollars in Thousands)
., <\- ; • ·.~}· •} i!W:1· ..<ioia> \ . c ls. ..; i> .Jtia<... ·•·• . ?
•·••\ \ " .
i i? ,, 1<• ..(<; ['t~Y .• . . ·. I\ ' i~> >< I. \ .
.· . ...,. . · '>:\ · / .. .:~.~i~ ~ <, ni:t, I. tow: R;;J\. ·····• ...:;;c::,~•i · T~al
Personnel Services: $8,011 $1,588 $8,753 $10,341 $1,300 $10,299 $11,599
Non-Personnel Services:
Travel 140 140 . 140 140
Transportation of Things - - - .
Rent and Utilities - -
Printing - 30 30 30 30
Other Services/Contracts 35 33 33 . -
Training . 70 70 70 70
Supplies - 10 10 10 10
Furniture and Equipment . - - -
Claims and Indemnities - . -
Total, Non-Personnel
$36 $33 $250 $283 $250 $250
Services
Working Capital Fund 1,202 - - 751 751
Carryover 1,621 . 1,300 1,300 - -
Grand Total $10,870 $1,621 $10,303 $11,924 $1,300 $11,300 $12,600
FTEs 46 9 47 56 7 53 60
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Lead Hazard Control and Healthy Homes (OLHCHH) has primary responsibility for
the lead-based paint and healthy homes activities of HUD and is directly responsible for the
administration of the Lead-Based Paint Hazard Reduction program authorized by Title X of the
Housing and Community Development Act of 1992.
The mission of the OLHCHH is to provide safe and healthy homes for at-risk families and children-
a mission with an inherent environmental justice, and racial and ethnic equity foundation-by
supporting the identification and mitigation of conditions that threaten the health of vulnerable
residents. As part of this mission, the OLHCHH is involved in coordinating disparate health and
housing agendas, supporting key research, targeting enforcement efforts, and providing tools to build
sustainable local programs that mitigate housing-related health and safety hazards. The OLHCHH
assists states, tribes, and local governments in remedying unsafe housing conditions and addressing
the acute shortage of decent and safe dwellings for low-income families,
49-1
RL(ja) 47-463 05/03/2022
355
OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES
BUDGET OVERVIEW
The 2023 President's Budget requests $11.3 million for the OLHCHH, $997 thousand more than the
2022 annualized CR level. The Budget reflects total funding (carryover and new authority) of $12.6
million, which is $676 thousand above 2022 t~tal funding. This increase will enable OLHCHH to
effectively support HUD's request for $400 million for the Lead Hazard Control and Healthy Homes
grant and contract programs in 2023, a programmatic increase of $40 million over the 2022
annualized CR level.
Personnel Services (PS)
The Budget assumes $11.6 million for PS, which is $1.3 million above 2022 total funding. The 2023
level supports 60 FTEs, an increase of four FTEs above the 2022 total level. These additional four
FTEs will support OLHCHH's mission to provide technical assistance and program oversight to the
expected increase in grants to communities for the control oflead-based paint hazards and other
health and safety hazards in housing. The Budget also supports a 4.6 percent Federal pay raise.
Non-Personnel Services (NPS)
The Budget assumes $250 thousand in NPS, which is $33 thousand less than 2022 total funding.
Working Capital Fund (WCF)
The Budget assumes total funding of $751 thousand for OLHCHH's WCF requirements, which is
$97 thousand above 2022 Annualized CR WCF requirements that were forward funded at the end of
2021. The WCF funding level reflects payments for baseline WCF services (including inflationary
adjustments and changes in service utilization) and the additions of the End-User Devices business
line, the Printing Services business line, HR platform licensing, and the full cost recovery of
Financial Services Acquisition and Development Division (FSADD) Financial Management expenses.
Information Technology
Within the Information Technology Fund, the Budget requests $300 thousand for OLHCHH's Grants
Management System.
Program Pain Point
HHGMS requires perfective and adaptive maintenance to continue to conform to evolving
congressional and program office business requirements.
Mission Benefits
Healthy Homes Grant Management System (HHGMS) is a grants management system using the
Salesforce platform that provides application processing, document management, grant tracking,
and quarterly progress reporting for the Office of Lead Hazard Control and Healthy Homes
(OLHCHH) and grantee users. The OLHCHH will need support to continue using this system but
will require enhancements and expanded functionality.
Target Functionality
• Upgrade and maintain an existing Web-based system.
• Perform system maintenance and operational support to enhance OLHCHH grant
application (pre-award cycles), and grants management and reporting systems (post-award
cycles).
49-2
RL(ja) 47-463 05/03/2022
356
OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES
Projected Cost Savings
• Implementation of required enhancements and expanded functionality will yield savings of
grantee labor time of 10 percent, and OLHCHH government technical representatives and
managers labor time, 15 percent.
• This translates into reducing fully loaded labor costs annually by $202 thousand for grantees
and $112 thousand for HUD staff, totaling $314 thousand annually.
• For grantees, this operationalizes as increased number of homes made lead safe and healthy
(vs. administrative costs); for OLHCHH, as capacity to monitor increased number of grants
within and outside ofHHGMS usage.
For additional information regarding HUD's Information Technology investments, please see the
Information Technology Justification.
KEY OPERATIONAL INITIATIVES
The OLHCHH-specific policy goals in the 2023. President's Budget are identified below:
• Priority 1: Expansion of Lead Hazard Control and Healthy Homes Grants. This function,
which covers both lead hazard control work and mitigation of housing-related health and
safety hazards through healthy homes production grants and the healthy homes
supplements to lead hazard control grants, is performed by the Lead and Healthy Homes
Programs Division and the Grants Services Division. An example of additional activities
advancing lead hazard control and healthy homes program understanding is the Radon
Testing and Mitigation Resident Safety Demonstration (and associated evaluations), which
conducts radon testing and mitigation in public housing units. Approximately 60 percent of
the NPS travel budget is for the Lead and Healthy Homes Programs Division for on-site
grantee monitoring visits, based on assumptions about decreasing pandemic-related travel
restrictions.
Priority 2: Expanded enforcement ofHUD's Lead Safe Housing Rule. This function is
performed by the Program and Regulatory Support Division and approximately 10 percent of
the NPS travel budget is for this Division's on-site monitoring visits, based on assumptions
about decreasing pandemic-related travel restrictions.
• Priority 3: Technical support and outreach on the Lead Safe Housing Rule, especially its
Elevated Blood Lead Level Amendment, and on enforcement of the Lead Disclosure Rule.
This function is performed by the Program and Regulatory Support Division. Approximately
10 percent of the NPS travel budget is for the Program and Regulatory Support Divisions on-
site monitoring visits, based on assumptions about decreasing pandemic-related travel
restrictions.
• Priority 4: National Lead Safe Housing Campaign. This function is used educate key
audiences (e.g., housing ownership, maintenance and renovation industries, state and local
governments, co=unity development corporations, philanthropies, and the public), about
methods and resources available to prevent childhood lead poisoning from housing.
Approximately 10 percent of the NPS travel budget is for the immediate Office of Lead
Hazard Control and Healthy Homes for these educational visits, based on assumptions about
decreasing pandemic-related travel restrictions.
Strategic Goals:
• Support Underserved Communities: The OLHCHH's Lead Hazard Reduction grants are
statutorily targeted to benefitting low-income families, and programmatically, targeted to
communities where such families are the most prevalent; the Office's Healthy Homes
Production grants are similarly programmatically targeted to such families and
communities.
49-3
RL(ja) 47-463 05/03/2022
357
OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES
• Advance Sustainable Communities: By controlling residential health and safety hazards in
the homes of low-income families in communities with a high prevalence of low income
families, the OLHCHH's grants improve the quality of such housing at no cost to the
families, thereby facilitating residents' ability to remain in their homes, thus advancing
community sustainability; in addition, this in-home work is largely performed by workers
from the communities, further supporting their sustainability.
• Strengthen HUD's Internal Capacity: The OLHCHH is increasing the program
implementation and support capacity of its staff by streamlining its grants application
review process, and enhancing its grant monitoring via enhancement of its online grant
monitoring tool.
49-4
RL(ja) 47-463 05/03/2022
358
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Chief Information Officer
Information Technology Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
2021 Appropriation 300,000 71,491 371,491 319,050 344,000
2022 Annualized CR 300,000 62,613 362,613 336,000 335,000
2023 President's Budget 382,000 37,000 419,000 409,000 369,000
Change from 2022 82,000 (25,613) 56,387 73,000 34,000
al Canyover includes recaptures from prior years, Actual recaptures in 2021 was $28 million, Planned recaptures in 2D22 and 2023 are $10 million each year.
b/ 2023 President's Budget row reflects the exclusion of planned transfeo; of $9 million from Public Housing Fund and $5 million from Green Resilient Retrofit
Program far Utility Benchmarking IT initiatives In both budget authority and outlays. These transfer proposals are discussed in the legislative Proposal section
of this document
PROGRAM PURPOSE
The Information Technology (IT) Fund provides for the infrastructure, systems, and services that
support all HUD programs, which include all of HUD's mortgage insurance liabilities, rental
subsidies, and formula and competitive grants. The fund also supports all administrative and
mission support programs.
BUDGET OVERVIEW
The 2023 President's Budget requests $382 million for the Information Technology Fund, which is
$82 million more than the 2022 annualized CR level. This supports the $339 million in Operations
and Maintenance (0&1\:1_) which is required to sustain the foundation of our IT portfolio. These funds
support all current IT systems and applications, all of which play a critical role in enabling HUD to
meet its mission and administrative functions. These O&M resources maintain and improve existing
IT infrastructure, such as computer hardware, network and communications, support services,
enterprise software licenses, and cybersecurity. The Budget excludes $1L8 million for computers,
mobile equipment, and related voice and data services for Departmental users that are part of HUD's
Working Capital Fund (WCF) budget. This WCF proposal will drive efficiencies and allow offices to
strategically address their needs for such equipment and services. The technology provided through
the IT Fund also supports grantees, and partners in their efforts to promote affordable rental
housing, provides access to homeownership opportunities, creates healthier home environments, and
reduces homelessness.
The IT Fund budget also provides $43 million for new initiatives, including $29 million in
Development, Modernization, and Enhancement (DME) and $14 million in O&M enhancements, to
support the Department's strategic priorities and customer needs. These new capabilities represent
the most critical IT investments identified across the Department's program and support offices.
These new capabilities are designed to improve delivery of HUD's programs and services, digitize
manual processes to improve operational capabilities, and strengthen the stewardship of taxpayer
dollars by promoting efficiencies, and consolidating obsolete technology and replacing it with newer
solutions that support greater integration between systems. Resources are also included to expand
and strengthen cybersecurity at HUD by continuing implementation of a comprehensive
cybersecurity program that addresses critical security deficiencies related to cyber risk management,
governance, and data protection.
50-1
RL(ja) 47-463 05/03/2022
359
!NFO!UVIAT!ON TECHNOLOGY FUND
JUSTIFICATION
Operations and Maintenance (O&M)
The Budget includes $339 million for existing O&M services and applications, including planned
transitional contract costs, that support HUD's pnigram and administrative offices, IT
infrastructure, and cybersecurity. This amount excludes $11.8 million for end-user IT devices and
support that is being requested by the HUD WCF. The three-year breakout of O&M obligations by
investment with brief explanations of each investment category are as follows:
{Dollars in Thousands)
2.247 I
~.072 2.407
1,153
-. _2~~:t.
7.320 I
24,782
........ :...:....:~~
23 355·
55
184
Note: Individual investment descriptions are shown in the Appendix A.
1A1nount excludes O&M new capabii!tles. Zero Trust imtiative ($13,854), SharePoint Support (S 150), and Grants Mgt maintenance ($300). which are included in
the summary table for new capabilities
1 The 2021 costs exclude $31 million obligated on the data center contract using 2019 obligated funds. They were made available because they were not able to
be utmzed as originally intended due to a contract proteat
3 Excludes $11 .8 m1Hion that is budgeted :n the Working Capital Fund
4
The increase frorn 2022 is necessary !o re"establish full fLmd1ng for this program that would absorb temporary reductions in 2022 under an annuiillzed CR
scenario. 2022 costs exclLide any amounts that may be funded by anticipated recaptures.
50-2
RL(ja) 47-463 05/03/2022
360
INFORMATION TECHNOLOGY FUND
The Budget requests $84 million to fund the business applications in Major and Non-Major
investments. This supports over 80 IT systems and services across 18 program areas. We continue to
pursue consolidated contract vehicles and leverage enterprise capabilities to provide modern
applications with greater functionality and to realize lower O&M costs over time.
The Budget requests $254 million for IT Infrastructure and enterprise capabilities in Standard
investments, which includes:
• Services include data center and end user hardware and support, annual technology refresh,
network and communications maintenance and upgrades, cloud operations services and
infrastructure operations.
• Capabilities includes enterprise software licenses and tools that range from office
applications and databases to robust cloud-based software platforms. These are critical to
support agile development, solution engineering, and continuous product delivery in a
modern and efficient way.
• The 2023 Budget supports operational readiness and program office transitions to
modernized technologies with minimal impact to mission operation. This also includes
remediating infrastructure-related gaps within HUD's cybersecurity framework (e.g., supply
chain risks), and overcoming operational risks associated with multiple legacy contract
vehicles. This includes operating the current Data Center and End User contracts while
transitioning to the new vehicles.
• $25 million to continue to bolster cybersecurity by implementing an Information Security
Continuous Monitoring and Ongoing Authorization program, assisting to establish Supply
Chain Risk Management governance and management strategy and processes, and
leveraging innovative security technologies and processes. It also provides cybersecurity
training and awareness and enhances Enterprise IT Risk Management processes.
Within the Operations and Maintenance allocation, the Budget assumes O&M funding to fully
operate and maintain new applications that will be placed in service in 2023 as individual FHA and
PIH modernization workstreams are completed. Such workstreams are completed incrementally and
the list below identifies the activities that are scheduled to be in service by 2023.
PIH Modernization
• Inventory Management System/PIH Information Center
• Native Advantage
• Electronic Voucher Management System
• Grants Enterprise Management System
• Operating Fund Portal
• PIH Data Warehouse
FHA Single Family Housing Modernization
• Loan Application, Underwriting, Appraisals, and Closing
• Loan Servicing
• Loan Claims & Disposition
• Loan Default Reporting
50-3
RL(ja) 47-463 05/03/2022
361
INFORMATION TJ,;CHNOLOGY FUND
New Capabilities
(Dollars in Thousands)
~r;:;cr1;.
..• , .,
= "'·.,,",.
•> ,,,
. ,,;}~>P: ii!:()'" < > .,s,t' ',\\\'\ "-·"-' ./·\,",\?\'.-;,\·"' .;,<<::·,: ,.~~.,~-·"
Multi-Family Housing
integrated Real Estate Management System and Healthcare $5,000
Multi-Family Housing
(iREMS)
Facilities
electronic Special Needs Assistance Programs Office of Community Planning Enterprise Grants
$3,000
(eSNAPS) and Development Management
Multi-Family Housing
Tenant Complaint Customer Relationship and Healthcare $1,500
Multi-Family Housing
Management (CRM) Facilities
Financial Mgt. Modernization- Line of Credit Office of the Chief Financial Financial Mgmt
$5,000
Control System (LOCCS) Officer Technology Support
Office of Policy Development
enterprise Geographic Information System (eGIS) Geospatial Services $2,000
and Research
Office of the Chief Facilities & Workplace
Acquisition Tool $1,750
Procurement Officer Services
Office of Field Policy and Regulatory
NextGen Labor Standards (NGLS) $1,000
Manaoement Enforcement
Office of Field Policy and Regulatory
Section 3 Reporting (S3R) $600
Manaoement Enforcement
Robotics Automation (RPA) Enterprise Digital Services $1,500
Enterprise Case Management and Workfiow
Enterprise End User $1,000
Platform (includes HireNOW initiative)
Microsoft Cloud Services End User Productivity
Enterprise End User $3,546
and Securitv Unorades
Affirmatively Furthering Fair Housing (AFFH) Office of Fair Housing and Regulatory
$1,000
Compliance Improvements Equal Opportunity Enforcement
Facilities & Workplace
Computer Aided Facilities Design Administration $800
Services
Office of Policy Development
Disaster Recovery Portal Geospatial Services $500
and Research
Office of Lead Hazard Control Regulatory
Grants Management System $300
and Healthy Homes Enforcement
Communications
www.HUD.gov Office of Public Affairs $200
Support
SharePoint Support Office of General Counsel legal Oversight $150
ZeroTrust & Trusted Internet Connection (TIC) 3.0 Enterprise Network $13,854
Security Operations Center (SOC) Apps, Tools,
Enterprise IT Security Services $300
Services
Tola! Portfolio $43,0()0
The Budget includes $43 million for critical new capabilities that support a broad variety of business
priorities and enterprise needs throughout the information technology portfolio. These new
capabilities were identified through surveying each office within the Department to identify the most
critical operational and programmatic needs. These projects directly support HUD's strategic goals,
objectives, and IT priorities and are designed to deliver cost effective services to citizens, improve
business operations, address emerging legal requirements, and achieve mission objectives at lower
cost and with enhanced cybersecurity. Without funding for new capabilities, HUD will continue to
rely on outdated, duplicative, less secure, and expensive-to-maintain systems and manual processes.
50-4
RL(ja) 47-463 05/03/2022
362
INFORMATION TECHNOLOGY FUND
Please see Appendix B for descriptions of each of the proposed new capabilities. The summaries
include mission benefits, target functionality, total costs, and savings potential.
The new capabilities described above range widely in cost and technical complexity. Therefore, HUD
will explore how to best streamline the congressional reporting requirement for DME performance
plans. Changes to this process would enable the Department to more quickly pursue minor DME
enhancements that are much lower in cost and risk compared to larger DME projects.
Examples of minor DME system enhancements that are potential candidates for exemption from the
currently required DME performance plan include updating system fields to align with legislative,
regulatory, or HUD policy changes, making small changes to the Customer Interface to make it
easier to use, minor configuration of Commercial Off the Shelf products, and automating import of
data into a system currently manually keyed in by field office staff.
The following table summarizes the 2023 President's Budget IT Fund Request by type of investment,
as classified on the Federal IT dashboard:
(Dollars in Thousands)
Ma·or $9,800 44,461 54,261
Non-Ma'or $13,900 $40,240 $54,140
Standard $4,846 $267,823 $272,669
eGovemment $930 $930
Total IT Fund $28,546 $353,454 $382,000
Investment Type Definition
Major IT investments are those that are critical to the missions of the agency, requiring
special management attention and with executive visibility, or that meet certain dollar
thresholds.
• Non- major investments do not meet the criteria of a Major or Standard investment and
typically provide support to the offices that in turn provide program or administrative
support to the mission of the agency.
• Standard IT investment classifications are used by all Federal agencies to account for their
IT infrastructure costs, cybersecurity, and management costs. They are OCIO managed
enterprise-wide investments that provide IT services to the agency's mission delivery
applications.
• eGovernment is a group of OMB-led initiatives to help transform Federal agencies through
eCommerce.
50-5
RL(ja) 47-463 05/03/2022
363
INFORMATION TECHNOLOGY FUND
SUMMARY OF RESOURCES BY PROGRAM
(Dollars in Thousands)
Operations and
Maintenance 260,000 51,491 311,491 287,645 260,000 26,743 286,743 353,454
Development,
lvlode-rnization
and
Enhancements 40,000 20,000 60,000 31,405 40,000 35,870 75,870 28,546
Total 300,000 71,491 371,491 319,050 300,000 62,613 362,613 382,000
LEGISLATNE PROPOSALS AND GENERAL PROVISIONS
The 2023 Budget proposes a General Provision, Se<:tion 231, which requests the authority to transfer
up to $10 million from HUD Salaries and Expenses accounts to amounts made available in the
Information Technology Fund account.
• 'fhe transfer authority would provide flexibility for offices to fund emerging and/or
unforeseen IT needs by prioritizing available funds within their S&E allocations. OCIO
works closely with HUD offices to identify new requirements and performance issues and
OCIO assesses them for possible IT solutions. This transfer authority would provide a direct
source of funding for OCIO to move quickly to address a program's immediate needs that
were not contemplated during budget formulation.
• This transfer authority is necessary to ensure that IT investments are managed by the CIO
within the IT Fund, which was established to pay for IT projects, operations, and services at
HUD. The OCIO will ensure the appropriate security, technology, and value of any agency
funds used for IT purposes. Implementing proper cybersecurity control outside of CIO control
is a significant risk within HUD.
The 2023 Budget also includes transfer authority from the Public Housing Fund and the Green
Resilient Retrofit Program accounts to support utility benchmarking IT solutions. The Budget
provides a total "up to" transfer amount of $14 million from these two program accounts.
For the Public Housing Fund, $9 million in funding may be used for IT systems upgrades to
support longer-term changes to HUD systems to implement benchmarking across the public
housing portfolio, to support integration with the Operating Fund process, and to make other
systems upgrades to support integration between HUD and EPA systems.
• For the Green Resilient Retrofit Program, $5 million in funding may be used for upgrades
and development of the Office of Housing and HUD-wide systems to collect and analyze data
coming from EPA's Portfolio Manager. Housing proposes to incorporate this data into their
existing property tracking database to effectively analyze, compare, and track energy
performance and costs across the Multifamily assisted portfolio.
50-6
RL(ja) 47-463 05/03/2022
364
INFORMATION TECHNOLOGY FUND
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For the development, modernization, and enhancement of, modifications to, and infrastructure for
Department-wide and program-specific information technology systems, for the continuing operation
and maintenance of both Department-wide and program-specific information systems, and for
program-related maintenance activities, $382,000,000, of which $339,000,000 shall remain available
until September 30, 2024, and of which $43,000,000 shall remain available until September 30,
2026: Provided, That any amounts transferred to this Fund under this Act shall remain available
until expended: Provided further, That any amounts transferred to this Fund from amounts
appropriated by previously enacted appropriations Acts may be used for the purposes specifkd under
this Fund, in addition any other information technology purposes for which such amounts were
appropriated.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
Appendix A
This investment provides Shared Services and
information systems to automate the grants
management lifecycle (pre-award, award, post-
Enterprise Grants award stages) for formula and competitive programs
Management Major across HUD.
HUD's Multifamily and Health Care programs
provide mortgage insurance to HUD-approved
Multifamily Housing lenders to facilitate the construction, substantial
and Healthcare rehabilitation, purchase and refinancing of
Facilities Maior multifamilv housing and health care facilitv oroiects.
This investment provides systems that ensure
public, and HUD assisted housing comply with
applicable laws and regulations. It provides
accurate, credible, and reliable information to assess
the condition and financial management of HUD
supported properties and ultimately improve the
nation's stock of affordable housing. HUD is
modernizing outdated systems and automating
Public and Assisted manual processes used in providing this essential
Housing Oversight Major mission function.
This investment captures all the systems that
support HUD's Single Family programs including
mortgage insurance on loans to purchase new or
existing homes, condominiums, manufactured
housing, houses needing rehabilitation, and for
reverse equity mortgages to elderly homeowners.
HUD is carrying out a multi-year investment called
FHA Catalyst that began in 2019 to modernize
FHA's infrastructure and to provide cloud-based
platforms to reduce costs, risks and fraud, and bring
Single Family FHA in line with current industry practices. The
Housine: Major modernization aooroach is flexible with an acile
50-7
RL(ja) 47-463 05/03/2022
365
INFORMATION TECHNOLOGY FUND
approach and includes a single portal for lenders to
interact with FHA for the full loan life cycle. Loan
components are already in production, providing
rapid turnaround and efficiencies to the agency and
to the lender communitv.
Unisys Migration will modernize the code base and
accelerate the migration of five of HUD s most
critical business systems from an on-premises
mainframe database to the cloud. Both the existing
mainframe and the five COBOL-based applications
are expensive to maintain and currently require
functional system enhancements to be built in the
antiquated mainframe environment, deepening the
technical debt associated with the eventual
deco=issioning of the platform. This investment
UNISYS Migration was partially funded by the government wide
Program Major Technology Management Fund.
This investment provides research, evaluation, and
reporting to all HUD program offices by providing
reliable data and analysis.
Analvtical Services Non-Maior
This investment is improving interactions between
HUD and its customers, starting with FHA
activities. It results from a partnership with GSA
Centers of Excellence to accelerate HUD's IT
Contact Center Non-Major modernization initiatives.
This primarily comprises HUD websites as well as
customer management tools. It enables HUD to
exchange information with other government
entities, citizens, stakeholders, and customers to
Communications deliver citizen services, implement public policy and
Suooort Non-Maior serve customers more effectivelv.
This includes data exchange, storage, extraction and
transformation, recovery, and classification of data.
HUD is developing an Enterprise Analytics Platform
to integrate sources of data to support business
Data Management decisions, reporting, data analytics and risk
Services Non-Major mitigation.
Provides end-to-end digital services to allow more
efficient conduct of day-to-day activities, improved
reporting, and dashboards for greater risk
management, modernized technology to align to
Di!tital Services Non-Maior standards and improved customer experience.
Enables HUD to support the generation, mgmt., and
distribution of intellectual capital and electronic
media across the business and extended enterprise.
Document This includes content, document, and records
Manae:ement Non-Major management.
Enables HUD to control and report on its facilities,
property, and assets. Enables HUD to perform the
Facilities and back-office activities that support the execution of its
Workplace Services Non-Maior mission-critical business ooerations.
Financial Provides support for HUD enterprise financial
Management management systems, including interface with
Technology Suoport Non-Maior shared service core financial svstem.
50-8
RL(ja) 47-463 05/03/2022
366
INFORMATION TECHNOLOGY FUND
The investment will allow HUD to enhance existing
enterprise geospatial business solutions while
leveraging expanded capabilities for data
visualization, information management, spatial
analysis, and business intelligence for analysts,
program staff, and decision makers at all levels of
the organization thereby satisfying the common
requirement for geospatial data and analytical
capabilities in support of the Department's mission
Geospatial Services Non-Major and strategic obiective.
Includes information systems that perform a variety
of HR business functions. The vision is to automate,
Human Resources integrate or replace legacy systems to move towards
Automated Services Non-Maior solutions of a one-stop shop for all HR Services.
Enables HUD to maintain guidance to implement
laws, developing and tracking, and amendments to
Legal Oversight Non-Maior public laws.
OIG Information The project is designed to support the operations,
Technolo!!V Sunnort Non-Maior management, and decision functions of the OIG.
Enables HUD to track, monitor, and report on
enforcement activities which Involves activities
Regulatory aimed at direct monitoring and oversight of HUD
Enforcement Non-Mafor sponsored programs.
IT investment for the provisioning of an enterprise-
Annlication Standard wide shared application capability.
Data Center and An IT investment for the provisioning of an
Cloud Standard enterprise-wide data center and/or cloud capabilitv.
IT investment for the provisioning of an enterprise-
wide shared delivery capability of strategy,
planning, development services, operations security,
Deliverv Standard and onerations.
An IT investment for the provisioning of an
End User Standard enternrise-wide end user capabilitv.
This investment covers the costs of HUD Office of
Chief Information Officer employees and supporting
contractors to ensure that all technology resources
are utilized properly and in a manner that provides
value for the Department and are managed
IT Mana1<ement Standard accordin!? to Denartmental nriorities and needs.
Enables HUD to properly orchestrate the IT
resources and systems it requires to effectively
provide its services and execute its mission. This
includes projects such as IT Security Policy
IT Securitv Services Standard Comnliance and Ops and ADP Securitv Staff.
An IT investment for the provisioning of an
enterprise-wide-area network (WAN), local-area
network (LAN), and metropolitan-area network
Network Standard (MAN) capabilities.
Disaster Assistance This is a government wide eGov initiative. The
Improvement Plan eGov manairin,r nartner is FEMA.
This is a government wide e-Gov initiative. The
managing partner for this initiative is the
eRulemakine: Docket eGov Environmental Protection A1<encv.
50-9
RL(ja) 47-463 05/03/2022
367
INFORMATION TECHNOLOGY FUND
This is a government wide e-Gov initiative. The
managing partner for this initiative is the
Gov Benefits.gov eGov Department of Labor.
This is a government-wide eGov initiative. The
managing partners for this initiative are the
Grants.Gov eGov Department of Health and Human Services.
Integ1·ated
Acquisition This is a government wide-eGov initiative. The
Environment eGov managing partner for this initiative is GSA.
APPENDIXB
Detailed Summary of New Capabilities
Multifamily Housing
integrated Real Estate Management System $5 million $1 million
(MFH
Program Pain Point
The integrated Real Estate Management System (iREMS) is the primary system for the oversight
and asset management of insured and assisted properties in the portfolio of HUD's Office of
Multifamily Housing Programs. GSA, GAO, and Multifamily leadership have found that iREMS is
vulnerable to unacceptably high risk of data errors from manual input processes, having to use ad
hoc tools such as MS Access for reporting, and not interfacing with other systems in real time.
Congressional mandates and Executive Orders that require Multifamily Housing action, such as
security, privacy, and records management regulation, energy efficiency programs, FHA pilot
programs, and the Rental Assistance Demonstration, are all hampered by an inability to integrate
them fully into the Multifamily Housing asset management process in iREMS. Reporting from Asset
Management field staff is often inaccurate because of inconsistencies between HEREMS, the
underlying source database, and iREMS. Poor quality Housing data continues to increase the risk of
HUD failing to meet its monitoring requirements of troubled properties within its portfolio.
!Ylission]lenc,fits
The success of MFH and HUD's mission is deeply tied to the decision-making done from HEREMS to
iREMS data processing. Therefore, ensuring the accuracy, completeness, reliability, and timeliness of
this data has broad cross-program implications. An improved HEREMS to iREMS database model
will serve as the central data repository for all Multifamily Housing, collecting data from more than
20 systems and integrating data across systems. Improved data and reporting in iREMS will provide
essential support to HUD's efforts to provide decent, safe, and sanitary housing for tenants and to
ensure program compliance.
Target Functionality
• Increase regulatory compliance on currently non-compliant mandates from privacy,
cybersecurity, and records management.
Increase flexibility in responding to the fast-evolving business requirements of MFH by
providing more tools to adapt to the forecasted increase in MFH loan applications.
JiJnhance decision-making, ensuring the accuracy, completeness, reliability, and timeliness of
iREMSIHEREMS data has broad cross-program benefits.
Projected Cost Savings
The existing HEREMS/iREMS data model is outdated, expensive, difficult to maintain, and it is
currently failing to meet system requirements. IREl'vIS has an estimated $2 million backlog in
50-10
RL(ja) 47-463 05/03/2022
368
INFORMATION TECHNOLOGY FUND
development priorities that continues to grow. Improvements in the system would result in a cost
benefit as it would support efficiencies in HUD's asset management and oversight functions.
Program Pain Point
HUD continues to use the e-snaps data system to automate the $2.5 billion Continuum of Care (CoC)
Program Competition. The e-snaps system provides an online data portal for all CoC applicants to
prepare and submit to HUD a detailed project application for funding. However, the system is brittle
and unstable, approaching 14 years old, which is far beyond the original technical limits of the
platform. Basic system changes and updates are costly, and each change risks the stability of the
system. HUD staff constantly employ manual interventions to overcome functional gaps in the
system. The CoC Program depends completely one-snaps performance. System failure, or a
significant drop in performance, will be catastrophic, public-facing, and detrimental to local
communities and homeless assistance providers.
Mission Benefits
A more modern and stable platform would speed up and streamline the CoC application and grant
processes for grantees and HUD staff. This reduces risk and uncertainty to grantees who provide
direct homeless assistance, which should improve staffing consistency and improve outcomes.
Replacing e-snaps would also make it easier for HUD to quickly implement special initiatives like
the Youth Homelessness Demonstration Program. A new solution may also provide better
integration with HUD financial systems, improved credentialling and authentication of users, and
better data integration and standardization with other HUD grant systems.
Target Functionality
• Improved system performance and stability; reduction in current risks related to long term
availability and support for acute technical problems.
• Improved efficiency for grants management activities, including reduced administrative
burden for HUD staff and grantees, reduced time to award, and improved business
automation such as data analytics and financial system interface.
Projected Cost Savings
A modernized e-snaps should reduce costs of:
• Annual Operations and Maintenance of the system by streamlining the annual
configurations required to meet the NOFO and other programmatic efforts, allowing further
investment into new capabilities and free staff time towards program oversight or analytics.
• Annual licensing for the CSDC/Grantium COTS platform.
• Manual interventions performed by HUD staff, Technical Assistance providers, HUD
infrastructure staff, and grantees required due to functional or process gaps in the system,
performance issues requiring troubleshooting, repetitive reporting in more than one system,
or the manipulations performed to aggregate data originating from multiple systems (SAGE,
HDX, e-snaps, LOCCS, etc.).
50-11
RL(ja) 47-463 05/03/2022
369
!NFOR~UTlON TECHNOLO(;y FUND
.r~
Multifamily (MFH) Asset Management staff, Performance-Based Contract Administrators (PBCAs),
the Multifamily Clearinghouse call center, and Field Program Management (FPM) staff are unable
to conduct unified intake, tracking and resolution of tenant feedback related to unsafe and
unsanitary property conditions or concerns about exigent health and safety conditions in
Multifamily-assisted properties, The various parties maintain multiple systems with disparate
rudimentary and uncoordinated logging and tracking of information, which is not conducive to
ensuring the issues identified by tenants are addressed swiftly and satisfactorily.
As a result, l\IFH is substantially limited in its ability to understand, track, and address such
complaints without a centralized tracking/response system, The current practice of various entities
within HUD and contractors logging and acting on feedback indep,mdently restricts HUD's ability to
manage its property portfolio in a coordinated manner,
Mission Benefits
An integrated tenant complaint logging and tracking system would allow HUD to effectively assess
and act upon a wide variety of complaints regarding properties in its portfolio and take a coordinated
approach regardless of the point of intake and allow all entities to track and update progress toward
resolution in real time. 'rhis would allow HUD to both be more responsive to tenants by ensuring the
appropriate party follows up and more efficient by avoiding duplicative work on the same issue,
This integrated tenant feedback tracking system will also enable HUD to better understand the
overall volume and nature of complaints both at individual properties and across different portions of
our portfolio, such as by city, program, or management agent, resulting in increased awareness of
conditions and potential issues within the MFH property portfolio,
Target Functionality
• Full integration as a single system for intake and tracking of tenant complaints by (MFH)
Asset Management staff, PBCAs, the Multifamily Clearinghouse call center, and FPM.
Ability of staff to have real time feedback and reporting on status of tenant complaints and
ongoing action tracking and reporting,
• Ability to aggregate instances of tenant feedback within a particular property and across
portfolio on an ongoing basis.
Projected Cost Sayings
PBCAs and other contractors would not need to invest in standalone system(s). An integrated
platform would also reduce duplication of effort across all responsible parties.
Financial Mgt. Modernization
Chief Financial Officer $5 million
(LOCCS)
Pl:9Ufil!!J' ain Poillt
The Line of Credit Control System (LOCCS) is the Department's primary disbursement and funds
control system for grants and Housing subsidy programs, LOCCS is not integrated with Oracle
Federal Financials, which is the Department's core accounting system, Instead, the antiquated
legacy HUD Central Accounting Program System (HUDCAPS) is used to exchange the allotment and
the grants and Housing subsidies financial activity between LOCCS and the core accounting system.
50-12
RL(ja) 47-463 05/03/2022
370
INFORMATION TECHNOLOGY FUND
The lack of integration between LOCCS and the core accounting system results in an extended
timeline for processing financial transactions that delays disbursements to grantees and Housing's
subsidies tenants, and related financial reporting. The Department is unable to decommission
HUDCAPS and its IBM mainframe., which are expensive to maintain and the subject of GAO and
OIG audit findings. A separate project to complete the PIH Enterprise Voucher Management System
(eVl\'1S) to improve PIH and Public Housing Authority (PHA) operations must also be completed to be
able to decommission HUDCAPS.
Mission Benefits
This initiative improves the reliability and quality of financial data, streamlines and strengthens
financial management and allows timely grants and Housing subsidies disbursements. By enabling
the use of shared services system-to-system integration, it improves productivity and security and
consolidates IT infrastructure. It will reduce operations and maintenance costs while removing
unsupported and antiquated technology. This project enables HUD to move closer to
decommissioning both HUDCAPS and the IBM mainframe which helps to fast-track our path to
complete digital transformation.
Target Functionality
The targeted functionality and changes will include:
• Enhance the existing financial interface system, New Core Interface Solution (NCIS), to
exchange the allotment, grants and Housing subsidies financial activity between LOCCS and
the core accounting system.
• Deactivation ofHUDCAPS financial interface capabilities.
Proiected Cost Savings
HUD estimates a possible reduction in the $2 million per year for contractor support operations and
maintenance costs for HUD CAPS due to the deactivation of the HUDCAPS financial interface
capabilities. PIH will still use the remaining HUDCAPS capabilities for all subsidies financial
operations and disbursements to PHAs. When the enterprise Voucher Management System (eVl.V[S)
is completed, with all HUDCAPS capabilities incorporated, HUD will propose to integrate eVMS
with the core accounting system. This is the last step necessary to decommission HUDCAPS and the
IBM mainframe.
Office of Policy Development and
Enterprise Geographic
Research I Office of Community $2 million None
nformation System
Plannin and Develo ment
Program Pain Point
Decision makers at all levels rely on the examination of accurate data for the effective development
and implementation of data-driven housing policies. To that end, the Office of Policy Development
and Research (PD&R) conducts mission-critical analyses of priority housing and community
development issues while developing and maintaining the data required for that work. HUD's
Enterprise Geographic Information System (eGIS) program was established in PD&R to manage day
to day operations of the Department's shared geospatial business solution which satisfies the
common requirement for geospatial data and analytical capabilities in support of the Department's
mission and strategic objectives. When brought to bear, these data and tools allow personnel to
develop and apply actionable intelligence used to craft effective housing policies that are data-driven
and equitable in scope. Unfortunately, HUD's existing enterprise geospatial solution now falls short
of what is required to support robust housing and community analysis moving forward, and the
inability of public to interface with HUD offices and data sources.
50-13
RL(ja) 47-463 05/03/2022
371
INFORMATION TECHNOLOGY FUND
The increasingly obsolete architecture of HUD's existing system limits the scale and scope of the
work that program analysts and policy developers engage in. In its current state, analysts cannot
effectively use the solution to collaborate with one another on mission-critical assignments that
require the examination of sensitive geospatial housing data. This limitation impedes the progress of
collaborative projects requiring robust geospatial study and remains a source of considerable
frustration for analysts and leadership alike.
Mission Benefits
Development, modernization, and enhancement (DME) ofHUD's geospatial business solution and
enterprise applications will significantly improve the Department's analytical capabilities allowing
for greater insights into national housing issues. Improved performance of the updated system will
provide expanded access to rich datasets which remain largely unavailable to Departmental staff due
to the shortcomings of the current platform. Modernization of HUD's geospatial resources will
likewise improve the security posture of the system enabling HUD's program analysts and policy
developers to collaborate on assignments requiring the analysis of sensitive (i.e., PII) geospatial data.
The proposed upgrade will also empower HUD's program analysts to create analytical reporting tools
and standalone applications required by stakeholders, but which cannot currently be developed due
to existing system constraints. In addition, HUD's Community Planning and Development (CPD)
will benefit from this upgrade to support its mission objectives by modernizing its customer self-
service portal as well as improve its data collection and process automation capabilities. The
impacted systems for CPD that require updates are: CART (Community Assessment Reporting
System), HRL (Housing Resource Locator), TDAT (Tribal Directory Assessment Tool), and CPD-
MAPS (Community Planning & Development Maps).
In addition, improvements of the existing system architecture will obviate the current requirement
to maintain project-related geospatial data in a cloud-based software as a service (SaaS) environment
thus resulting in substantial cost savings for the Department. For example, proposed improvements
to HUD's existing geospatial solution include the implementation of a business facing GIS user
portal deployed within HUD's network. User activity will take place within HUD's network thereby
eliminating the cost required to accommodate collaborative work and data storage in a SasS
environment. Furthermore, enhanced capabilities for application development enabled by system
modernization will allow for the in-house creation of new applications. This eliminates the current
need to earmark funds for new application development as well as protracted contract negotiations
required to secure a vendor for such work.
Target Functionality
Modernization of the Department's geospatial business solution and enterprise applications will
result in:
• Substantial improvements to system security, performance, user access, and resource
management.
• Significantly enhanced capacity for analysis, collaboration, application development, and the
crafting of actionable intelligence.
Considerable cost savings for the Department.
Projected Cost Savings
Improving HUD's existing geospatial business solution will allow the Department to realize
significant cost savings associated with the storage and maintenance of project-related geospatial
data. Moreover, improved capacity for in-house application development will eliminate the need to
engage in the prolonged contract negotiations and costs required to secure commercial vendors to
provide those services.
50-14
RL(ja) 47-463 05/03/2022
372
INFORMATION TECHNOLOGY FUND
Program Pain Point
The HUD Acquisition Community is not often able to share and archive information, including
requirements documents (e.g., Performance Work Statements, Independent Government Cost
Estimates) with stakeholders in the form of a "one-stop-shop." Instead, documents must be shared
through e-mail exchanges and stored on a share drive and other repositories that contains
information for upwards of one thousand contracts. For the most part, SharePoint is currently used
across the enterprise; however, it is not a viable alternative as its limitations do not provide the in-
depth requirements for a fully functional acquisition management system.
In addition, the community lacks a secure electronic solution to conduct source selection evaluations
and protect proprietary source selection sensitive information. Furthermore, an overarching
dashboard is required to track key performance indicators to determine the effectiveness/efficiency of
acquisition operations across the enterprise. Microsoft Excel is currently used for this function;
however, it is not a viable alternative as it is static and neither efficient nor effective.
Mission Benefits
The HUD Office of the Chief Procurement Officer (OCPO) anticipates that value to the HUD
Acquisition Community will be substantial and significant as it will include the relative ease
provided to the team of CO Rs performing contract oversight functions as well as the provision of a
central location for developing and maintaining a COR file for each contract managed by the
acquisition team. This ensures near full proof audit compliance with an accurate account of data
provided for each contract; effective and efficient management of the source selection evaluation
process; and an overarching dashboard that provides an accurate assessment of the health of the
acquisition system.
A fully operational Acquisition Management Support System (AMSS), Source Selection Evaluation
Management System, and Acquisition Dashboard will provide approximately 500 licenses. Therefore,
key members of the Integrated Project Team, Integrated Acquisition Team, including the team of
CORs, OCPO (Contracting Officer and Contract Specialist), Program Officials (FAC-P/PMs), Budget
Officials, and senior management within the organization will have access allowing for ease of
sharing information across different job functions in addition to the benefits previously discussed.
Finally, a successful rollout will bring agencywide advantages that will enable users to have real
time insights into how their program is performing across the enterprise and make course
corrections as necessary. This would significantly increase transparency of efforts and collaboration
across the enterprise while significantly reducing poor acquisition planning. One of the greatest
benefits will be the direct addressing of acquisition pain points thus resulting in the streamlining of
acquisitions across the enterprise.
Target Functionality
An Acquisition Management Support System for HUD will result in;
The Acquisition Community and its team of Contracting Officer Representatives (CORs) and
Program/Project Managers (P/PMs) being able to perform critical oversight function on key
requirements and contracts that support HUD operations and provide proper record storage
and retrieval of requirements and contract documents and deliverables.
Effectively managing requirements planning processes, pre-award processes, source selection
evaluation management suite, post award data management including period of performance
(POP) and funding based on fiscal year, user management; and
Provision of overarching dashboard to track key performance indicators determining the
effectiveness/efficiency or lack thereof of acquisition operations across the enterprise.
50-15
RL(ja) 47-463 05/03/2022
373
INFORMATION TECHNOLOGY FUND
Projected Cost Savings
Compared to current processes, implementing the AMSS will allow HUD to recapture approximately
130,000 hours of staff time each year spread out across HUD's acquisition community. Time can be
redirected to higher value acquisition related activities, such as providing efficient and effective
acquisition management and improved processes ultimately reducing time to procure.
Progr_!Lm Pain Point
HUD is a major driver of infrastructure and job creation and contributes to worker empowerment
and economic opportunities throughout the nation. The Department ensures that construction
workers are paid prevailing wages on HUD-funded development and administers programs that seek
to increase employment of low and very low-income community residents. The Department uses two
systems for Section 3 and enforcement of the Davis-Bacon Related Acts: Section 3 Performance
Evaluation and Reporting System (SPEARS), and Labor Relations 2000 (LR2000).
S.~ctiq.!!JL~.rting $600,000
The Section 3 program requires that recipients of certain HUD financial assistance, to the
greatest extent possible, provide training, employment, contracting and other economic
opportunities to low- and very low-income persons, especially recipients of government
assistance for housing, and to businesses that provide economic opportunities to low- and
very low-income persons. The Department recently finalized a new regulation for the Section
3 program, which requires a new system to capture statutory requirements from grantees
and contractors. Without having a working system for grantees, specifically Housing
Authorities, to report on Section 3, HUD cannot perform its statutory and regulatory
responsibilities to ensure compliance with the new rule.
!'i_()_;-;tl.1,ml,abor Standardtl!'i.l.l!o.§) $LO Million
The Office of Labor Standards Enforcement and Training (LSE'l') is responsible for HUD's
overall compliance with the Federal prevailing wage requirements applicable to HUD-
assisted and insured housing and community development programs covered under the
Davis-Bacon and Related Acts (DBRA). The current system, LR2000, is antiquated, non-
compliant, and must be replaced to close-out a longstanding audit finding by the Office of
Inspector General. LR2000 is non-compliant with cybersecurity standards because it is on an
outdated server and Operating System and is allowed to operate under a Risk-Based
Decision (RBD) Memorandum from the HUD's OCIO. The system will be replaced by the
Next Generation Labor Standards (NGLS) application. HUD is also unable to adequately
monitor grantees to ensure compliance with prevailing wage requirements. The current
statutory requirements ensure skilled workers are paid a fair wage to build the critical
infrastructure communities desperately need.
)\fission Benefits
This funding will enable the Department to provide a reporting platform for approximately 5,000
grantees to report on Section 3 compliance, as well as for 7,000 contractors to report on DBRA
requirements. Both systems would enable the Department to meet statutory requirements and assist
grantees to empower low and very low-income workers, in addition to ensuring workers are paid
prevailing wages.
Target Functionality
Reporting platform for approximately 5,000 grantees and 7,000 contracts to meet Section 3
Rule and DBRA reporting requirements.
50-16
RL(ja) 47-463 05/03/2022
374
INFORMATION TF:CHNOLOGY FUND
• Integration with other HUD programs for Department-wide Section 3 and DBRA data
collection and analysis.
Ability to generate and review reports for quality and accuracy, as well as enhanced
assessment of program effectiveness.
Projected Cost Savings
S3R and NGLS will significantly reduce staff hours required to complete manual processes and allow
for automated collection, analysis, reporting and enhanced assessments of program effectiveness.
Enterprise $1.5 million subject to Cost-
Benefit
Program Pain Points
Robotic Process Automation (RPA) has supported HUD offices to automate manual and repetitive
tasks. This investment builds on recent test cases in which 12 HUD bots have begun to support
various functions such as tracking de-obligations, mass emailing, consolidating data from multiple
sources, account management, approval workflows, and mathematic calculations.
Mission Benefit1,_
Robotic applications save significant amounts of staff hours needed to perform routine functions.
RP A will reduce human error in executing these functions and enable offices to shift scarce staff
hours to high-valued work such as planning, analysis, coordination, and/or training.
Target Functiona.liJ:.y
The RPA program has amassed a pipeline of 40 potential automations. This funding will be used to
continue improving HUD's operational efficiencies. Demand from program offices is expected to grow
in 2023 and beyond.
• There are 12 bots that are in various stages of the system development lifecycle, including
five bots to automate two critical financial statement processes. However, the work has
paused pending additional resources for this effort.
• With the requested funding, development will ramp up in 2023 to continue converting
manual and repetitive business processes such as data downloads, reporting, and
tracking/monitoring processes.
Projected Cost Savings
To date, the 12 automations have saved approximately 5,000 stafflabor hours annually.
Automations are used as a low cost, high impact solution to fill business process gaps, standardizing
procedures, and eliminate human error. Substantial additional savings will be realized with
additional investments to support future enhancement requests.
Program Pain Point
HUD defines Case Management as a broad set of use cases that involve the intake of requests from
users and the fulfillment of those requests through a digital workflow process. An enterprise case
management platform will enable HUD to solve a variety of pain points that cut across different
program areas. Across HUD, there is limited ability to quickly stand-up workflow and case
50-17
RL(ja) 47-463 05/03/2022
375
INFORMATION TECHNOLOGY FUND
management-based applications while simultaneously adhering to IT policies. This leads to: "shadow
IT'' solutions that are unsupported by OCIO or continued reliance on inadequate or non-existent
technology solutions. HUD plans to leverage the ServiceNow platform which will provide HUD a
co=on platform on which to create applications with robust security, privacy and policy controls
implemented centrally by OCIO. ServiceNow is a commercial cloud-based, low-code digital workflow
platform that provides the foundation on which to configure tailored applications to meet specific
business requirements, while other low-code technologies exist within HUD, ServiceNow is best-
suited to handle enterprise-wide internal case management and workflow applications such as HR
functions, IT Help Desk, and Facilities Management.
The initial use case for case management and workflow platform will be address the lack of
automation and centralization of data for OCH CO for resolving HR related cases including employee
and contractor onboarding. The currently lack of a holistic IT solution for HR related cases leads to
data integrity issues, lack of an authoritative centralized source of HR data, limited reporting
capabilities, delayed time to hiring and onboarding employees and contractors, and inability for
analytics based continuous improvement. The pain points related to HR cases affects all HUD
employees and contractors and depresses the velocity at which HUD can operate across the board.
Mission Benefits
This 2023 funding request will be a continuation of 2022 request ($2M) and will be used to deploy
and mature a ServiceNow-based enterprise case management platform. By adopting an enabling
enterprise platform, HUD OCIO anticipates that it will be able to more quickly design, build, and
deploy a wide variety of applications to meet their customers tailored business needs. A common
platform that can be securely controlled and governed at the enterprise-level, while giving program
offices more direct control of business functionality of their applications will drastically improve the
speed and consistency of software delivery. Currently, case management functionality is housed in
disparate systems which drive numerous inefficiencies; an enterprise case management platform will
broadly consolidate licenses, infrastructure, development, and O&M costs and allow HUD to build
momentum in a focused and unified enterprise direction.
Each use case that will leverage the enterprise case management platform has its own mission
benefits that it will produce. In the HR Transformation use case described previously, it is expected
that HUD will be able to hire and onboard employees more effectively and efficiently helping HUD
deliver on its overall mission. Secretary Fudge has committed to rebuilding HUD's depleted
workforce which has lost 20 percent of its staff since 2012 and ServiceNow will help achieve this
human capital goal.
Target Functionality
• HUD envisions ServiceNow will become the standard platform to use for critical internal-
facing applications such as HR Case Management, IT Help Desk ticketing, Facilities
Management (Workspace Hoteling), and more.
The HR Transformation use case will provide an end-to-end holistic electronic onboarding
experience for new employees and contractors which will lead to dramatically shorter
onboarding times.
Projected Cost Savings
The case management and workflow platform based on ServiceNow will be used for multiple new
business requirements needs as well as modernization of legacy systems. A single use case of
modernizing and retiring the Adaptive Case Management Suite (ACMS/eCase) is projected eliminate
$2.SM of O&M and license expense annually. This would not be considered a net reduction of costs as
the ServiceNow solution will incur similar (if not higher) annual O&M and licensing costs. HUD will
ultimately realize greater value through economies of scale - increased adoption of the platform and
more applications built upon it will consolidate HUD-wide licensing and O&M costs that are
currently distributed across several solutions.
50-18
RL(ja) 47-463 05/03/2022
376
INFORMATION TlsCHNOLOGY FUND
des (G3 EMS E3 to G5 EMS E5
de)
Program Pain Points
OCIO must modernize HUD's communication technology to meet today's challenges. The current
hardwired desk phones are outdated, limited by physical location, and are therefore ineffective.
Updating the agency's calling capability by integrating existing technologies will modernize the
telecommunication infrastructure; bridge the gap between the need of a static physical location and
an agile, flexible, remote user; and maximize dollars spent on annual O&M cost.
The coupling of tBchnologies will create a hinge point that will allow the agency to maximize the
unique capabilities of each component, while maintaining and managing it as a single system. The
telephony capability(ies) will derive from two existing technologies, softphone and handphone. A
softphone is a software program for making telephone calls over the internet using a computer rather
than dedicated hardware. This solution can be installed on a desktop, mobile device, or other solution
that make/accept calls. The hard phone solution is the traditional phone; however, it too
communicates over the internet.
The Telephone integrated solution will use a Voice over Internet Protocol (VOIP) and TEAMS calling
features. Although these technologies can complete a calling session as a standalone technology; they
lack the capability to bridge all the gaps that exists for the forming environment of the HUD
employee (office, mobile, telework). The hinge point between the two is the appropriate license
upgrade for each user of TEAMS and VOIP. In addition to merging these technologies to get the
desire telephonic solution, the licenses will allow HUD to take full advantage of the enhancements in
Microsoft Office 365, which provides each user additional capabilities, such as: (1) audio conferencing
and calling capabilities in the cloud, (2) enhances PowerBI to PowerBI Pro, and (3) enhanced identity
and threat protection with integrated and automated security.
Mission Be_ns;_fits
'fhe greatest benefit to this integrated solution is it seamlessly follows the employee when working in
the office, on the move(mobile) or in telework status. To obtain an integrated telephonic solution with
use of TEAMS, an upgrade from GS to G5+EMSE5 series license is required. By upgrading to the G5
licenses, employees will experience a more collaborative environment with an auto-generated
conference dial-in number in Microsoft TEAMS meetings with external participants.
In addition to enhancing the employees' work experience when in the office, mobile or teleworking;
the solution maximizes the use of Microsoft Suite licenses subscriptions. The upgraded license will
allow every employee to have access to the entire Office 365 suite, such as Microsoft Word, Excel,
PowerPoint, Outlook, PowerBI and other Office 365 products.
Target Functionality
• Extend identity and threat protection with integrated and automated security to help stop
damaging attacks. Bring together information protection and advanced capabilities
• Get audio conferencing and calling capabilities to allow external participants via generated
dial-in numbers
Benefit from Power BT capabilities that help realize significant business value from data
Proiected Cost Saving§
SharePoint has historically relied on Microsoft INFOPATH to display, collect, and store data forms;
INFOPATH is now being phased out and replaced with PowerBI. Data that is displayed, stored, and
managed on SharePoint now requires license for PowerBI Pro, which is included with the G5 + EMS
50-19
RL(ja) 47-463 05/03/2022
377
INFORMATION TECHNOLOGY FUND
E5 license upgrade. There are no direct cost savings; however, program offices and the agency will
experience cost savings through the application, sharing of dashboards, reports., and security.
There is a perpetual increase of $20 per user in upgrading from G3 EMS E3 to G5 EMS E5. There is
no increase in cost beyond standard margins for inflation except when the organization increases
number of contractor and Federal FTEs.
$1 million $1.5 million
Program Pain Point
The Fair Housing Act, requires HUD and recipients of Federal funds from HUD to affirmatively
further the policies and purposes of the Fair Housing Act, also known as "affirmatively further fair
housing" or "AFFH." The obligation to affirmatively further fair housing requires recipients of HUD
funds to take meaningful actions, in addition to combating discrimination, that overcome patterns of
segregation and foster inclusive communities free from barriers that restrict access to opportunity
based on protected characteristics. To facilitate the review of data from funding recipients, two
legacy systems were created for the implementation of the 2015 Affirmatively Furthering Fair
Housing Rule: the Data and Mapping Tool (AFFH-T) and the AFFH User Interface (AFFH- UI). The
AFFH-T is online and has been maintained but was never fully actualized. It provides information at
the local government level but does not have information at the PHA or State level. However, to
provide more updated maps, better useability, and more information FHEO is requesting additional
funding to make improvements to the tool.
The AFFH UI was taken offline January 2018 and a new system will be needed to comply with any
future Notice of Proposed Rulemaking on AFFH. The current AFFH Interim Final Rule (IFR) does
not require use of an UI, as it only requires voluntary submission, which can take any format. The
IFR also eliminates certain requirements involved in the 2015 rule. A Notice of Proposed
Rulemaking (NPRM) will likely contemplate a completely different process and structure from the
2015 rule and assessment tool. As such, only a new system will work.
Mission Benefits
The AFFH-T will provide grantees an opportunity to see maps and demographical information from
vetted and reliable sources that will assist in their understanding of the unique factors of their
jurisdiction. The tool already includes information on poverty rates, environmental factors, access to
food, availability of healthcare, access to schools etc. However, we would like to use the funding to
add additional data points and enhance customer useability. The changes to the tool will aid funding
recipients in the process of creating goals that target their unique challenges. Additionally, by
expanding the types of grantees and recipients (PHAs and State grantees) that can utilize the
information provided in the data and mapping tool we will increase the successful implementation
and execution of AFFH.
The AFFH-UI will provide grantees with a portal for digital filings of AFFH reports that will replace
a cumbersome paper-based process. Electronic filing of reports will make it easier to submit and
review the files required by the AFFH rule. Other benefits include:
• Integration with other business systems will reduce redundancy of data across multiple
systems.
Automated FHEO .Reviewer Instructions will enable completion of assessment reviews
within the required timeline.
• Increased system interoperability and information sharing within the Department and
among other Federal agencies and external organizations.
50-20
RL(ja) 47-463 05/03/2022
378
INFORMATION TECHNOLOGY FUND
Target Functionality
• An updated AFFH-T will provide funding recipients with updated demographic information
to better aid in goal setting to adhere with the mandate of AFFH.
• The AFFH-UI solution shall provide a basic reporting module to monitor the activities
associated with the submissions and review processes.
• The AFFH-UI solution will have routing, tracking, and other data functions to incorporate
reporting both for end users and management.
Proiected Cost Savings
This project provides electronic filing capability to grantees, which has been a cumbersome paper-
based process and will generate the Notice of Receipt, rather than it having to be manually typed
and issued. These will save labor costs for both HUD staff and grantees.
Program Pain Point
The Space and Asset Management Division (SAMD) experiences significant difficulty managing,
evaluating, and maintaining information on spatial data and space-related information on the HUD
Headquarters facilities in the National Capitol Region. Critical information such as occupancy,
vacancy, square footage, space-type space assignments, and utilization rates are not currently
tracked or updated in an accurate, efficient, or effective manner.
In addition, the two current systems: Federal Asset Management Enterprise System (FAMES),
HUD's inventory management system of record, is limited in its operations; as well as the existing
Administrative National Services Requests Supplies System (ANSRS), HUD's workplace ticket
request system of record, is antiquated.
Mission Benefits
SAMD will need to procure and implement a Computer Aided Facilities Management (CAFM)
system that would address and solve several problems and needs. The CAFM system would provide a
central repository for space information that can be easily accessed, queried, and analyzed with real
time, up-to-date data; and allow SAMD to manage HUD's portfolio of lease holdings and space data
effectively and efficiently. SMID could easily track and update HUD's footprint in satellite
buildings/headquarters, manage personnel move/add/change tasks by name, occupancy and vacancy
data, floor plan drawing record management, project management, space reservation functionality,
and personal property asset management. Through algorithms, a CAFM system would generate
space utilization rates of usable square footage and identify areas that are not in compliance with
GSA's space utilization guidelines. SAMD would meet the overarching goal of space consolidation in
headquarters, thus reducing lease holdings in the DC area and reallocating funds saved from leased
space.
Target Functionality
More efficient data retrieval and reporting, allowing SAMD to quickly analyze underutilized
spaces and target these areas for future reduce the footprint (RTF) projects
• Track and maintain property inventory within the CAFM's interactive and integrated floor
plan drawing environment. With simple pick-drag-and-drop functionality, property
assignments can easily be moved to new locations within the floor plan whenever an
employee move is conducted and updated, simultaneously and seamlessly updating the
inventory with new location information; and
With the data collected and analyzed within a CAFM system, the SAJ.\,fDSMB will be able to
improve its efforts in restacking the building and reorganizing space by Program Office with
50-21
RL(ja) 47-463 05/03/2022
379
lNFORMATJON TECHNOLOGY FUND
the goal of collocating entire program areas on the same floor (if possible) and ensuring
adjacency opportunities with other Program Offices.
Projected Cost Savings
Integrating multiple modules into one CAFM system streamlines data management. The antiquated
ANSRS system fails to meet current business requirements causing time management issues and
decreased productivity. Retiring the FAMES application could save $570,000. Furthermore, reducing
underutilized leased spaces in HUD's portfolio can save millions of dollars in rent annually.
Program Pain Point
HUD has identified the need for a new process and tools for data sharing with FEMA and CDBG-DR
grantees. This project will eliminate the need for Individual Assistance Information Sharing Access
Agreements (ISAAs) between FEMA and HUD also with FEMA and CDBG-DR grantees as it will
make that data readily available to grantees through the Disaster Recovery Data Portal (DRDP)
application. It will also eliminate the need for requesting data from FEMA to perform the CDBG-DR
allocations process when congressional funds are appropriated.
While data being shared is similar, or in fact the same data, it requires multiple resources from
multiple program areas within HUD and FEMA to request and process data sets. If the bidirectional
data exchange process was in a completed stage that data could be shared within HUD to multiple
resources/programs in a fashion designed to only make available, the necessary program data to only
those with a valid need to know and manage one data set for multiple users. This would also ensure
that all users are accessing the same data and would eliminate a misunderstanding of the data as
well and ensure all areas are utilizing the same data.
Mission Benefits
Real time data sharing enables decision making that is focused on elimination of duplication of
benefits, adequate assistance value to the customer, ability for multiple programs to utilize one
standard data set, correct and accurate FElvlA data for HUD and HUD CDBG-DR grantee use,
enhanced disaster survivor support functions and enhance data security across multiple Federal
agencies.
The Disaster Recovery Portal (DRDP) is within HUD's purview of the project and HUD will share the
'new processes' aspect with FEMA. FEMA will solely fund their efforts' development needs.
In addition, DRDP will provide the ability to avoid duplication of benefits between FEMA, HUD, and
SBA assistance; the ability to identify geographical areas that are the most at risk due to high level
of unmet needs; the ability to complete early determination of projects at the CDBG-DR grantee level
that will provide/return disaster survivors to long term sustainable housing; and reduction in
duplication of efforts by multiple Federal agencies in similar processes. This in turn will reduce the
need for multiple touch points with applicants that ai·e related to similar cross agency processes.
Hence, this project has the capability to enhance the disaster survivor experience as mandated in the
Disaster Recovery Reform Act of 2018. HUD'S cost to FEMA is approximately $415K over the next 7
years, but will increase once any further development begins.
Target Functionality
DRDP will result in:
Real time data sharing to enable informed and immediate decision making
• Ability for multiple programs to utilize one standard data set
• Provide correct, accurate, and the most up to data available data
50-22
RL(ja) 47-463 05/03/2022
380
lNFORMAT!ON TECHNOLOGY FUND
Projected Cost Savings
As this is a cross agency effort between .FEMA and HUD therefore the overall .Federal benefit is
shown below:
DRDPD and the new processes will result in significant cost savings to both agencies. We estimate
that HUD grantees pay approximately $13 million average annual housing repair or rehabilitation
assistance payments to homeowners who are also reimbursed for these costs by .FEMA. By
providing timely and automated matching and delivery of data, we estimate that at least one half of
these duplicate payments will be avoided and reduces the need for labor intensive and time-
consuming efforts to recover the excess payments. We also estimate that .FEMA will save
approximately $900,000 annually.
Program Pain Point
HHGMS requires perfective and adaptive maintenance to continue to conform to evolving
congressional and program office business requirements.
Mission Benefits
Healthy Hornes Grant Management System (HHGMS) is a grants management system using the
Salesforce platform that provides application processing, document management, grant tracking, and
quarterly progress reporting for the Office of Lead Hazard Control and Healthy Homes (OLHCHH)
and grantee users. The OLHCHH will need support to continue using this system but will require
enhancements and expanded functionality.
Target .Functionality
• Upgrade and maintain an existing Web.based system.
Perform system maintenance and operational support to enhance OLHCHH grant
application (pre-award cycles), and grants management and reporting systems (post-award
cycles).
Projected Cost Savings
• Implementation of required enhancements and expanded functionality will yield savings of
grantee labor time of 10 percent, and OLHCHH government technical representatives and
managers labor time, 15 percent.
This translates into reducing fully loaded labor costs annually by $202 thousand for grantees
and $112 thousand for HUD staff, totaling $314 thousand annually.
• For grantees, this operationalizes as increased number of homes made lead safe and healthy
(vs. administrative costs); for OLHCHH, as capacity to monitor increased number of grants
within and outside ofHHGMS usage.
Program Pain Point
Currently the Department has a significant amount of information, data, and resources that are
beneficial to the public but has no expedient way in which to consolidate and present the information
in a user-friendly way on its website. Development dollars are limited and trying to excavate the
50-23
RL(ja) 47-463 05/03/2022
381
lNFOHMATlON TECHNOLOGY FUND
information in its various current iterations is costly and time consuming. It also is not conducive to
transparency.
Mission Benefits
The development of APls will ensure the Department's content is ready for easy sharing and
redistribution to deliver our mission directly to more citizens, not only via HUD channels but
potentially expanding our Departmental information and services exponentially by allowing the
content to be more easily embedded or interwoven throughout external sites or other applications.
APis can be used to distribute services and information to new audiences and in specific contexts
that can be customized to provide tailored user experiences. Making data available via API will also
improve data quality review and cleanup.
Target Functionality
API creation for integration into websites such as:
• Affordable Apartments
• Housing Counselors
• Public Housing Authorities
Projected Cost Savings
Adoption of APis versus individual legacy access of data by various systems could provide
substantial savings in both development and maintenance for the Department. Once built for one
application that same AP[ can be used for others.
Program Pain Point
OGC uses Share Point for many purposes such as consolidating program performance information
that is c1.sed in Congressional and 0MB communications, the eDiscovery Program, and to manage
and track enforcement referral investigations and other compliance monitoring activities. OGC
SharePoint development projects require greater technical knowledge and a deeper understanding of
software design and development techniques.
Limited support services are currently provided under the legacy eDiscovery Program support
contract. The current limited SharePoint support is not sufficient to meet OGC's ever-growing
development requirements and increased project complexity. In addition, utilizing the new HUD
0365 development tools to improve project efficiencies, requires greater technical knowledge and a
deeper understanding of software design.
Mission Benefits
DOJ, litigation opposing counsel, Congress, OIG, and FOIA requesters all rely on the Department's
eDiscovery program to work smoothly and timely. The improvements to SharePoint applications will
ensure HUD's ability to manage all aspects of the program, including managing the queue of
requests. HUD relies on OGC's Clearance Calendar, Reports to Congress application, compliance
monitoring activities, and other products and will benefit from SharePoint improvements.
Target Functionality
Continued functionality for key Department-wide and OGC applications will provide transparency,
streamlined data collection, and business process administration for HUD mission support at a low
cost. This also allows OGC to maximize the benefits provided by OCIO's enterprise investment in
SharePoint and 0365 software development tools.
50-24
RL(ja) 47-463 05/03/2022
382
INFORMAT!ON TECHNOLOGY FUND
Projected Cost Savings
OGC could potentially save one full-time F'TE Tier 3 for SharePoint troubleshooting, administration,
and design advice.
Program Pain Points
Modern cyber security requirements and methodology needs are ever changing due to increasingly
complex operations in today's cyberspace. With an increased amount of HUD users working
remotely, the need to implement a more secure cybersecurity strategy is required.
The HUD enterprise requires a Zero Trust solution with an over-arching function of real-time
visibility and data protection when accessing cloud services, websites, and private apps. The agency's
zero trust solution must encompass a multitude of security features that dominates attack surfaces
and possess artificial intelligence that provides indicators of the next attack.
Our solution must be data driven. A data centric approach will enable enterprise users and
managers the ability to make security decisions based on real time activities. Moreover, the security
decisions must include application rule sets, data flow indicators, meta data analysis, and cloud
native security that integrates with a Secure Access Service Edge (SASE) solution.
The current inline security solution lacks the ability to scale with enterprise growth; it's a single
chokepoint and incapable of monitoring and alerting on internal security violations. The zero-trust
solution for the agency will be a solution in keeping with the concepts of trust no person, no
application, at no time. All activities and access will be monitored in real time, logged, and reported.
Mission Benefits
Zero-trust is quickly becoming industry standard and will improve the agency's safety and integrity
of financial data, personal identifiable information (PII) increases shared protection, end-point
connections, access points, and provides greater accountability in managing the overall safety and
security of sensitive data within HUD.
Target Functionality
• "Never trust, always verify" - Ensures that every device, user, and entity that accesses any
HUD asset is verified and validated as an authorized user through authentication
• Perimeter-less security - Ensures that network security no longer continues accepting access
by users based on properties such as physical boundaries of the network
• Mutual authentication All IoT and WiFi will require two-way authentication
Integration efforts:
Phase I (Year 1) $13.9M
• Conduct enterprise network and security assessment.
o Conduct pilot testing and engineering requirements.
• Develop & integrate zero trust solutions
Phase II (Year 2-5) $4-5M annually ($16-20M)
• O&M
• Purchase annual license subscription
!:'roiected Cost Savings
NIA
50-25
RL(ja) 47-463 05/03/2022
383
INl'ORMATION TECHNOLOGY FUND
Security Operations Center- Applications,
ools, Services
Program Pain Point
HUD requires a holistic enterprise view of cybersecurity to proactively detect and respond to events
that disrupt or threaten normal IT operations. HUD has actively promoted its HUD's Cyber Program
to accelerate cyber threat detection, notification, and responses across HUD by maturing its newly
launched Security Operations Center (SOC) and enabling capabilities to help minimize the impact of
cyber-attacks. The current HUD Cybersecurity applications and tools have been used and
maintained throughout the past few years to accommodate security risks and threats identified
many years ago (approximately 5-7 years). With the increased threat landscape and expanded
telework operations (which has extended the HUD network boundaries), additional security tools
and applications are required to provide proactive threat detection, analysis, and prediction.
Mission Benefits
The plan is to provide the HUD SOC with additional security tools and applications to proactively
monitor, detect, and respond to the increasing cybersecurity threats and attacks on the HUD
network and its data.
Enable ongoing awareness of information security, vulnerabilities, and threats.
• Collect and analyze cyber threat intelligence to inform cybersecurity operations.
• Centralized incident management capability to proactively track, manage and report
incidents.
• Enable a recovery capability with a strategy and technology that minimizes the impact of
attacks.
Target Functionality
The request is for known and proven security tools and applications to support but not limited to:
• Application security and scanning
• Port detection, review, and monitoring
• ' Artificial Intelligence (AI) SOC applications
Projected Cost Savings
Currently, HUD SOC/CIRT do not have OITS owned and operated SOCICIRT applications or
appliances. This will help avoid the cost associated with a security incident.
50-26
RL(ja) 47-463 05/03/2022
384
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Chief Financial Officer
Working Capital Fund
SUMMARY OF RESOURCES
(Dollars in Thousands)
2022 Annualized CR 62,675 16,750 79,425 62,675 62,675
2023 President's Budget 77,749 16,750 94,499 77,749 77,749
Change 1rom 2022 15,074 15,074 15,074 15,074
PROGRAM PURPOSE
HUD's Working Capital Fund (WCF) was established by H.R.2029 - Consolidated Appropriations
Act, 2016 (Public Law No: 114-113), as authorized by the Department of Housing and Urban
Development Act, 1965 [Public Law No: 89-174, 42 USC §3535(£)], The purpose of the WCF is to
promote economy, efficiency, and accountability. The WCF serves as a mechanism for HUD to
finance enterprise goods and services, such as Financial Management, Procurement, Travel services,
Payroll processing, Records management, Human Resources (HR) systems, and HR processing. The
Working Capital Fund Division (WCFD) formulates, executes, and manages the financial operations
of the WCF, Business line owners, such as the Office of the Chief Financial Officer (OCFO), the
Office of the Chief Human Capital Officer (OCH CO), and the Office of Administration (AD MIN) are
responsible for the management and delivery ofWCF goods and services.
BUDGET OVERVIEW
The 2023 President's Budget requests a total operations level of $78 million for the WCF, which is
$15 million more than the 2022 Annualized CR total operations level. The 2023 Budget provides for
each HUD office to pay for their use of WCF goods and services, through payments to the WCF for
their estimated usage, The Budget requests funding for these WCF payments within HUD's salaries
and expenses (S&E) accounts. The requested level will support the WCF services shown in Table 1
below. In addition to the funding levels listed below, the Budget requests an adjustment to the
WCF's appropriations language to be more closely in line with the WCF's authorizing statute. This
streamlined language will allow HUD to fully realize the benefits to efficiency and economy that can
be achieved through the WCF.
The WCF operates on a revolving cycle of business, where revenue derived from the provision of
services is used to finance future provisions of service. As a result, revenue generated in a given
fiscal year for the provision of services is derived from accounts across multiple fiscal years. While
the Summary of Resources Table above shows total revenue and carryover for each fiscal year, the
funds in each year will be used to finance both current services and services in the following fiscal
year. Table 1 below outlines the costs to provide services for each fiscal year in order to better
illustrate the total cost of operations within a given fiscal year.
51-1
RL(ja) 47-463 05/03/2022
385
WORKING CAPITAL FUND
Differences in Table 1 below and the Summary of Resources table above are attributable to the
timing of obligations, expenditures, and revenue across fiscal years as part of the revolving cycle of
business operations within the WCF.
TABLE 1
(Dollars in Thousands)
Human Resources Processin 11,500 20,538 21,565
1.735 1,834 1,777
1.152 1,221 1,391
5,896 6,783 6.412
1T End-User Devices and Wireless Su rt,. 11,800
Printin Service" 2,748
Human Resource Platform Ucensin "* 525
1,945 2.118 2,101
Total O eratln Bud et 47,228 57,610 77,749
'2023 includes Treasury Executive Institute funding in the HR Systems service line and Financial Services Acquisition and Development Division full cost
recovery in the Financial Management, Travel and Procurement service line_
"New Service Lines Proposed for 2023.
JUSTIFICATION
HUD's WCF provides a business-like buyer and seller approach to centralized services, aligns service
provider and customer incentives, and brings transparency to both program offices and HUD at the
enterprise level. Program offices bear the cost-of-service and are therefore empowered to manage
service usage to maximize limited resources by continually evaluating and refining core business
processes. Consequently, the WCF drives cost-conscious incentives for the customer. Additionally,
the WCF expands the base of stakeholders who are invested in the continuous improvement of the
delivery services provided through the WCF. Customers push for effective and efficient service
delivery, while business line owners have the data and feedback to negotiate for improvements in
service quality and/or lower costs.
The WCF Division (WCFD) oversees the financial management and governance of the Fund. While
each service financed through the WCF remains operationally accountable to the appropriate
Administrative Support Office, the WCFD manages the Fund's day-to-day financial operations,
including the establishment of transparent and reliable unit cost accounting for all services funded
through the WCF and customers who reimburse the Fund for their appropriate share of services.
Proposal to Streamline HUD's WCF Appropriations Language
The 2023 Budget streamlines the WCF appropriations language to align more closely with the
WCF"s authorizing language by removing specific services included and/or proposed for inclusion.
The current legislative text does not serve the Department well in the administration of HUD
programs by limiting WCF activities to a restrictive list of activities that does not consider changes
over time in business operations and current operational needs. The current approach of adding new
services into the list of allowable activities takes HUD further away from the authorized purpose of
the WCF, which is to provide for the operations and maintenance of HUD activities that the
Secretary finds in the interests of economy and efficiency. The proposed appropriations language
would allow HUD to fully realize the benefits of a dynamic WCF by providing greater continuity of
51-2
RL(ja) 47-463 05/03/2022
386
WORKING CAPITAL rUND
operations and risk mitigation. The Budget would mitigate risk by allowing the WCF to establish
and operate a proper operating reserve. Some immediate benefits would be the ability to continue to
deliver essential services in the event of a lapse in appropriations, improved management of fixed
versus variable expenses, and smoother operations during continuing resolution (CR) periods.
Modification of Current Activities in 2023
The 2023 Budget consolidates Treasury Executive Institute (TEI) shared services currently paid for
by OCHCO as part of the Treasury Shared Services Program (TSSP) interagency agreement.
Additionally, the 2023 Budget re-proposes full cost recovery for the Financial Services Acquisition
and Development Division (FSADD) to be more closely in alignment with GAO's key operating
principles for Working Capital Funds.
TEI InteragencyA_g;reement Consolidation
The 2023 Budget re-proposes funding TEI services through the WCF. Currently, TEI is provided
through the human resources platforms provided by TSSP and paid for by OCHCO. Paying for TEI
out of the WCF reduces the time and effort related to contract administration and eliminates an
arbitrarily split funded contract. Furthermore, moving TEI in the WCF furthers the goal of funding
Federal shared services out of the WCF.
For a detailed shift in the budget neutral realignment of budget authority, please see Table l below.
TABLE 1
\ ".'.
·••'
' , ,•:ti~'~' :: '10~,; \<J(; },>\{'..
,,
it\!Jflc'"$;t' '"'·'''"''ii
., " .·1•
' . ••,
ADMIN 1,185 1.185
CPD 5.136 5,136
EO 604 604
FHEO 2.859 2,859
GNMA 2,928 2,928
LHCHH 465 465
HSNG 14.037 14,037
OCFO 6.554 6,554
OCHCO 62,308 1.255 -61,053
OCIO 3,556 3,556
OCPO 1,092 1,092
ODEEO 70 70
FPM 3,068 3.068
OGG 8,808 8.808
PDR 1,557 1,557
PIH 9,134 9,134
Total 62,308 62,308
FSADD Full Cost Recovezy
F'SADD is an office within OCFO that manages the Financial Management line of business. Since all
activities performed by FSADD are dedicated to administering, overseeing, and managing the
Financial Management line of business, moving FSADD costs under the WCF model will allow HUD
51-3
RL(ja) 47-463 05/03/2022
387
WORKING CAPITAL FUND
to achieve full cost recovery by recovering the contract administration and management costs
incurred by the WCF's customers. Moving FSADD operational costs within the WCF achieves the
goal of aligning WCF operations with GAO's key operating principles for Working Capital Funds.
For a detailed shift in the budget neutral realignment of budget authority, please see Table 2 below.
ADMIN
CPO
EO
FHEO
TABLE 2
57,948
143,242
16,063
40,793
- 57,948
143,242
16,063
40,793
GNMA 25,778 25,778
LHCHH 22,724 22,724
HSNG 284,293 284,293
OCFO 1,434,036 175,726 -1,258,310
OCHCO 39,581 39,581
OCIO 58,299 58,299
OCPO 48,162 48,162
ODEEO 4,113 4,113
FPM 36,473 36,473
OGC 21,928 21,928
PDR 51,368 51,368
PIH 407,545 407,545
Total 1,434,036 1,434,036
New Business Lines Proposed in 2023
The 2023 Budget reproposes IT end-user devices and wireless support from the 2022 Budget and
expands business line offerings with the inclusion of printing services and HR platform licensing.
There are several benefits that accrue to any service that moves into the WCF. First, moving
enterprise services into the WCF drives the efficient and effective delivery of services. Second,
delivery of services through a WCF model incentivizes program offices to utilize WCF services
efficiently by aligning costs to usage. Third, HUD will reduce overlap and duplication of efforts by
providing a centralized funding source across HUD's enterprise. Finally, delivery of services under
the WCF model drive transparency into the operation and management of the services delivered
through the fund.
IT End-User Devices and Wireless Support
HUD firmly believes that beginning to fund IT Operations and Maintenance out of the WCF is in the
best interests of HUD's obligation to provide efficient and effective services in the administration of
HUD's programs. The WCF's customer base strongly supports the establishment of the IT end-user
devices business line within the Fund. They believe that funding these services will streamline
operations by managing budgeting, reducing the complexity of contracting in-between annual
appropriations, monitoring device usage to allow customers to scale up or down based on their needs,
51-4
RL(ja) 47-463 05/03/2022
388
WORKING CAPITAL FUND
and allow IT management to focus their attention on other important areas such as IT security and
operational improvements (DM&E).
IT end-user devices and wireless support are comprised of hardware purchases of standard and high-
end laptops, mobile phones, iPads, and MiFi's, and includes the associated voice and data plans. This
proposal represents a budget-neutral realignment for the Department of $11.8 million; the totals in
this budget submission include the funding shifted out of the Information Technology Fund and
realigned into program offices S&E accounts. Moving IT end-user devices and wireless support to a
WCF model provides several benefits: improved planning and funds management around long-term
IT investments, improved operational efficiency by allowing customers to make business decisions
surrounding the devices their offices need, and enhanced cybersecurity through regular device
refreshes. Ultimately, moving IT end-user devices and wireless support to the WCF advances HUD's
overall ability to thoughtfully plan for rr needs and ensures HUD Program Offices' ability to meet
mission requirements.
HUD's current model to fund IT end-user devices and wireless support through the IT Fund presents
significant funding limitations on HUD's ability to thoughtfully plan for and execute against IT
needs. For example, HUD lacks the ability to smooth acquisition costs over time because they must
all be obligated each year, making regular IT refreshes more difficult. This inflexibility impairs
HUD's ability to effectively establish and execute IT acquisition contracts. These funding limitations
present not only considerable constraints around decision making and decreased operational
efficiency, but also cybersecurity risks as hardware ages.
With IT end-user devices in the WCF model, HUD will be better positioned to improve and refresh
end-user devices on a pre-determined schedule. Moving to a WCF model will provide suitable, risk-
based, and economical capabilities that allow HUD to meet evolving mission needs. Through the
WCF model, HUD will deliver IT end-user devices and wireless support services in a more customer-
centric and economical manner.
For a detailed shift in the budget-neutral realignment of budget authority, please see Table 3 below.
ADMIN 502,148 502,148
CPD 1,106.915 1,106,915
EO 199,022 199,022
FHEO 1.080,506 1,080,506
GNMA 330,388 330,388
LHCHH 89.811 89.811
HSNG 3,285,641 3,285,641
OCFO 379,632 379,632
OCHCO 242,826 242,826
OCIO 752,369 752,369
OCPO 136,731 136,731
ODEEO 30,272 30,272
FPM 629,682 629,682
OGC 832,724 832.724
OBT
51-5
RL(ja) 47-463 05/03/2022
389
WORKING CAPITAL FUND
PDR 284,390 284,390
PIH 1,916,943 1,916,943
IT Fund 11 800,000 -11,800,000
Total 11,800 000 11800000
Printing Services
The Printing Service line of business provides access to hundreds of multi-function devices (MFDs),
printing project management oversight, contractor support and production printing equipment to
include a wide-format 44-inch production printer. Printing Services are currently centrally funded
out of the Office of Administration. This proposal represents a budget-neutral realignment for the
Department of $2. 7 million; the totals in this Budget include the funding shifted out of the Office of
Administration (ADMIN) and realigned into program offices S&E accounts, including three ADMIN
employees that will be funded via the WCF. This proposed service aligns with the Department's goal
to "Strengthen HUD's internal capacity and efficiency." Moving this service to the WCF will create
opportunities to realize long-term savings, increase customer visibility into costs, and provide for
expanded printing capabilities. The printing devices and contractor support will be acquired through
an Interagency Agreement (IAA) with Government Printing Office (GPO). The service is already
authorized under the WCFs original appropriations language and is a common service offered by
other WCF's across the federal government.
For a detailed shift in the budget neutral realignment of budget authority, please see Table 4 below.
HR Platform Licensing
HR Platform Licensing service will be provided via a contract for ServiceNow Human Resources
Service Delivery (HRSD) licenses. ServiceNow HRSD is a HR platform to manage service requests
across HR business lines for employees throughout their employment lifecycle. HUD will implement
ServiceNow HRSD during in 2022, with con.figuration anticipated to be completed in late 2022. The
WCF would then begin funding the Operations and Maintenance costs, comprised of the license
costs, in 2023. The ServiceNow HRSD platform will improve HR efficiency and productivity by
streamlining the employee HR service experience end-to-end with intelligent workflows and a shared
document portal. The system would provide a consistent level of service and experience to employees.
Specific services related to ServiceNow HRSD include, but are not limited to, hiring certificate
sharing, employee on-boarding support, and a HR knowledge portal. ServiceNow HRSD has been
implemented by other federal agencies with a demonstrated track record of streamlining HR service
delivery. This service will be acquired through a contract with a non-federal vendor, with start-up
and implementation costs paid for in 2022, out of the IT Fund. This service will only consist of
funding the licensing cost for the ServiceNow HRSD platform and does not include implementation
funding. The proposed HR Platform licenses will cost approximately $525 thousand in new funding,
which will be allocated among each WCF customer S&E account.
For details of the alignment of the new budget authority, please see Table 4 below.
51-6
RL(ja) 47-463 05/03/2022
390
WORKING CAPITAL FUND
TABLE 4
'''"ii,,·>i)••,,;;;'::,,,0.·,, . . i\ii, ',\' ,.... , ~~;,/,i;~\'1,: 'i,,½,'";i1ii >,,;J\',,:'iii',>\({:'•'' i\,i""
,\:C;;;. V
''"'''
,·,;; '.,,~,;-
ADMIN 2.748,349 99,933 ·2,648.416 15,946
CPD 274,448 274.448 56,898
EO 20,812 20,812 4,684
FHEO 159,548 159,548 36,561
GNMA 92,906 92,906 11,840
LHCHH 23,256 23,256 3,334
HSNG 769,226 769,226 176,292
OCFO 264,692 264,692 14,854
OCHCO 55,971 55,971 9,757
QCIQ 120,048 120,048 16,578
OCPQ 50,243 50,243 8,262
ODEEO 5,431 5,431 1,196
FPM 103,956 103,956 24,187
OGC 206,701 206,701 41,453
PDR 68,536 68,536 10,608
PIH 432,642 432,642 92,562
Total 2,748,349 2,748,349 525,012
Key Assumptions
• All current services cost for 2023 will be within five percent of their 2022 cost. For 2023, this
includes fully funding FSADD and the TEI program.
An increase in the number of PRISM licenses and Oracle licenses by 580 to accommodate
increasing onboard personnel and expanded procurement and financial management
oversight, PRISM licenses are needed to access HUD's procurement system, while Oracle
licenses are needed to access the financial system.
• Proposed new service lines have been budgeted based on anticipated contract and acquisition
costs from existing agreements or a combination of vendor and government estimates.
• Personnel costs have been adjusted at the same rate as the HUD Salaries and Expenses
accounts,
LEGISLATIVE PROPOSALS AND GENERAL PROVISIONS
Appropriations Language Changes
The 2023 President's Budget includes the following:
The Budget proposes changes to the appropriations language that provides the authority for the
WCF to fund goods and services that the Secretary determines to be in the interest of economy and
efficiency for HUD's operations by removing the restrictions limiting the WCF to specific activities,
51-7
RL(ja) 47-463 05/03/2022
391
WORKING CAPITAL FUND
APPROPRIATIONS LANGUAGE
The 2023 President's Budget includes the appropriation language listed below.
For the working capital fund (referred to in this paragraph as the "Fund'?, established pursuant to
section 7(/) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(/)), amounts
transferred, including reimbursements, to the Fund under this heading shall be available, without
fiscal year limitation, for any expenses necessary for the maintenance and operation of the
Department that the Secretary finds to be desirable in the interest of economy and efficiency: Provided,
That expenses of operation under such section 7(/) shall include operational reserves.
Note.-A full-year 2022 appropriation for this account was not enacted at the time the budget was
prepared; therefore, the budget assumes this account is operating under the Continuing
Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). The amounts included for 2022
reflect the annualized level provided by the continuing resolution.
51-8
RL(ja) 47-463 05/03/2022
392
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
(Dollars in Thousands)
,,.,-c~zcr=~~~======,.....,,=,.,.,,
Personnel SeNices: $100,711 $104,785 $104,785 $112,832 $112,832
Non-Personnel Sel'\lices:
Travel 268 178 178 1,462 1,462
Transportation of Things 5 5 5 5 5
Rent and Utilities 7,053 6,896 6,896 6,787 6,787
Printing 2 2 2 2 2
Other Services/Contracts 18,392 14,321 14,321 15,436 15,436
Training 664 333 333 576 576
Supplies 366 242 242 357 357
Furniture and Equipment 7,380 4,521 4,521 5,408 5,408
Claims and Indemnities 255 200 200 250 250
Total, Non-Personnel
$34,385 $26,698 $26,698 $30,283 $30,283
Services
Financial Audit $6,543 $5,717 $5,717 $5,885 $5,885
Carryover
Grand Total $141,639 $137,200 $137,200 $149,000 $149,000
fTEs 505 520 520 535 535
'Includes 2020 Carryover
PROGRAM PURPOSE
The Office of Inspector General (OIG) for HUD is an independent and objective organization,
conducting and supervising audits, evaluations, investigations, and reviews relating to the
Department's programs and operations. The OIG promotes economy, efficiency, and effectiveness in
these programs and operations while also preventing and detecting fraud, abuse, and
mismanagement. As an organization we are committed to keeping the HUD Secretary, Congress,
and our stakeholders fully and currently informed about problems and deficiencies and the necessity
for and progress of corrective action.
The work of the OIG is important to the Department's success in fulfilling its Strategic Plan to
address the Secretary's mission priorities and management challenges. The OIG works to ensure
that our resources and activities encompass the issues and concerns most critical to the Department.
Stewardship of taxpayer resources is one of the Inspector General's highest priorities by ensuring
funding is appropriately utilized, properly managed, and achieving the outcomes stakeholders
require.
52-1
RL(ja) 47-463 05/03/2022
393
OFFICE OF INSPECTOR GENERAL
BUDGET OVERVIEW
The 2023 President's Budget requests $149 million for the OIG, which is $11.8 million more than the
2022 annualized CR level.
The Budget seeks the resources necessary for the OIG to continue delivering the impactful
investigations, audits, evaluations, and reviews that executive branch and congressional
stak~holders require. The Budget would also provide necessary support for Congressionally
mandated activities, including the HUD consolidated financial statement audit, information security
audits, evaluations related to the Federal Information System Controls Audit Manual (FISCAM) and
Federal Information Security Management Act (FISMA), and Digital Accountability and
Transparency Act (DATA) compliance audits.
The Budget represents an 8.6 percent increase in total resources that will support mission critical
personnel, non-personnel mission requirements, and inflationary cost increases. The OIG is
continuing to prioritize resources to support the tools and personnel necessary to produce actionable
information that increases the effectiveness and success of HUD programs, while rooting out waste,
fraud, and abuse that undermine programmatic and stakeholder objectives.
Personnel Services (PS)
The OIG's 2023 personnel services requirements are $112.8 million, to support 535 full time
equivalents (FTEs), or $8.0 million more than 2022 annualized CR funding of $104.8 million. The
requested FTE level of 535 will support the critical oversight priorities of the OIG including ensuring
hazard free and habitable housing, access to affordable housing, homelessness, fair housing, risks to
the Mutual Mortgage Insurance (MMI) Fund, HUD grant management, HUD IT operations and
vulnerabilities, and protecting the integrity of HUD programs.
The increase of $8 million above the 2022 annualized CR level includes:
• $3.0 million to support 15 FTEs above the 2022 annualized CR funding level, which roughly
represents current OIG onboard staffing. These individuals would be allocated to an array of
oversight activities addressing multiple HUD programs.
• $3.8 million in inflationary increases for pay and benefits, including a 4.6 percent pay raise.
$1.2 million increase in other personnel expenditures including re-proposal of the 2021 cash
award funding level ($1.5 million), this amount is slightly offset by other reductions in PS
requirements.
The outlined personnel services resources and FTE will support the OIG's mission across the
spectrum of HUD activities and programs. This includes areas where the OIG is expanding and
prioritizing our oversight resources such as those programs identified in the OIG's top management
challenges. Specifically, the OIG sees the following as the areas of greatest concern and priority for
our mission personnel:
Eliminating Hazards in Housing: HUD continues to face several challenges in ensuring that
properties used for its programs are free from hazardous materials, lead-based paint, toxic
chemicals, and radioactive substances such as radon. The OIG sees this as a top priority that is
central to the oversight of the Department and ensuring that beneficiaries are safe when occupying
HUD-assisted housing. HUD programs cannot thrive if recipients of those programs do not feel safe
or cared for when occupying HUD properties. This oversight effort is multifaceted and requires a
professional workforce with the right skills and training to effectively oversee this vital area of
HUD's operations.
52-2
RL(ja) 47-463 05/03/2022
394
OFFICE OF INSPECTOR GENERAL
Mitigating Counter Part;y Risk in Mortgage Programs: HUD must continue to take steps to address
counterparty risks faced by FHA and Ginnie Mae to protect taxpayer funds. The OIG is positioned to
oversee and assist the Department in mitigating the risk to the MMI fund and achieving HUD's
mission of supporting sustainable homeownership and encouraging investment in affordable rental
housing.
Access to and Availability of Affordable Housing: One tenet of HUD's mission is to create affordable
housing for all. Very low-income renters continually face challenges in finding affordable housing
due to "severe rent burden'' (paying more than 50 percent of one's income) and increased competition
for affordable rental housing. Deploying Housing Vouchers effectively and ensuring they're managed
efficiently to reach the maximum number offamilies possible is within the OIG's oversight role and
an organizational priority.
Grants Management: In 2021 alone, HUD obligated more than $14.4 billion in grants, or
approximately 24 percent of HUD's overall funding. In many cases, HUD awards funding to
thousands of grantees, who in turn, distribute the funds to thousands more subgrantees,
subcontractors, and subrecipients. Like other grant-making agencies, HUD faces challenges in
developing and implementing adequate policies, procedures, and other controls to monitor grantees
compliance consistently and effectively with key program requirements. The OIG foresees an
expanding role in ensuring the proper use, oversight and tracking of HUD grant funding. This is a
top priority for every mission component in the OIG.
Fraud Risk Management: Managing fraud risk is a challenge throughout the Federal Government.
Beyond the monetary loss of taxpayer funds, fraud against HUD's programs negatively impacts the
most vulnerable populations with critical housing needs, including children, the economically
disadvantaged, and the elderly. Dollars lost to fraud are dollars that cannot assist those in need, and
ineligible participants take spots away from others who need access.
Sustaining Progress in Financial Management: HUD needs to be able to continue sustaining the
improvements it has made in Financial Management so that HUD and its components can operate at
a level that will consistently produce reliable and timely financial reports and ensure continuity
during challenging times. The gains shown by HUD over the last few years are impressive, but the
OIG has a continuing mission to ensure the Departments financial management is thorough and
sound for all external stakeholders who rely on HUD financial reporting for legislative and other
critical decision making.
Managing Human Capital: The effects ofHUD's difficulties in managing human capital affect many
ofHUD's mission-related challenges. According to HUD's 2022 Budget in Brief, HUD experienced a
decline in staff of approximately 30 percent during the period 2012 through 2019. Recruitment,
retention, and hiring qualified employees has been a growing concern for the Federal government.
The OIG believes that the Department will never be able to adequately manage the scale and scope
of the agency's programs without the right skillsets and people in place. Based on that belief, the
OIG plays an important role in evaluating HUD's human capital processes and offering
recommendations for improvement.
Management and Oversight of Information Technology: While HUD has made progress in managing
and overseeing its IT program through modernization efforts and addressing recommendations,
several longstanding issues that harm IT program effectiveness persist. Poor management of HUD's
IT resources and difficulty in completing its initiatives hinder HUD's IT development. The OIG has
greatly increased the personnel and resources available to oversee this area ofHUD's operations. As
an agency we are better positioned than ever before to help HUD identify and rectify the remaining
shortfalls in the Department's IT infrastructure.
52-3
RL(ja) 47-463 05/03/2022
395
OFFICE OF INSPECTOR GENERAL
Increasing Efficiency in Procurement: Meeting the procurement needs of its program offices in a
timely manner so that it can efficiently carry out its mission is critical for HUD. Considering HUD's
reliance on contractors, the ability for HUD's Office of the Chief Procurement Officer (OCPO) to
respond to changing departmental needs is imperative for HUD's success. The OIG is continuing to
provide an independent assessment of this effort in hopes of improving the process for all underlying
HUD offices and programs.
The personnel requirements laid out in the Budget support the OIG's ability to adequately respond
and address these top challenges within the Department. Maintaining the right personnel with the
right skillsets is essential to successfully carrying out the OIG's mission. The OIG has made
tremendous strides to decrease the time to hire and ensure that backfilling takes place proactively
and intentionally to fill the most important positions within the organization. The personnel funding
requirements explained in the Budget will allow the OIG to maintain staffing levels and continue to
respond timely to the needs and concerns of the Department, the Administration, and Congress.
Non-Personnel Services (NPS)
The OIG's 2023 non-personnel services (NPS) requirements, including the cost of the consolidated
financial statement audit, are $36.2 million or $3.8 million more than the 2022 annualized CR level
of $32.4 million. These requirements are a combination of spending deferred under a 2022 full year
CR, inflationary and programmatic adjustments to the base, and increased requirements
particularly related to travel as the OIG returns to a more traditional operational posture.
The NPS requirements called for in the 2023 Budget support the operational needs of the 535 FTEs,
necessary operations and maintenance of the OIG's IT infrastructure, including fully bringing the
OIG's networks into Trusted Internet Connection (TIC) compliance, support for the continued
outsourcing of the consolidated financial statement audit, and other necessary expenditures to
support the OIG's mission. The itemized adjustments to base are as follows:
• $500 thousand for TIC compliant internet service for the entire OIG serving both the
Headquarters-based Washington, DC data center and the Disaster Recovery Facility (DRF)
data center located in Denver, Colorado. Using the GSA Enterprise Infrastructure Solutions
contract vehicle, the OIG expects partial operationalization under a 2022 continuing
resolution with the remaining requirement continuing under the 2023 Budget. The TIC
services include constant network monitoring to thwart any potential cyber-attack and alert
the organization of possible vulnerabilities. Based on the recent security breaches
experienced by Federal agencies and the need to achieve organizational compliance this is a
top priority for the OIG to ensure both adequate information security protocols and bring the
organization into compliance with 0MB mandates.
• $500 thousand in reproposed funding to establish training support and legal services related
to mortgage-backed securities (MBS), multiclass transactions managed by Ginnie Mae, and
complex secondary market legal issues. The OIG believes that the significant role Ginnie
Mae plays in the housing finance market warrants both investment in OIG personnel as well
as outside resources with specialized expertise. The OIG will use the contracted experts to
educate and advise our staff on residential MBS market to enhance our oversight of HUD's
housing finance and mortgage insurance programs. This contract will be utilized as needed
to supplement the current legal and program oversight staff in a way that over time could be
more cost effective than hiring full-time government personnel with experience in housing
finance and secondary market transactions, as those individuals may be difficult to recruit
and retain given the opportunities available to them in the private sector.
• $848 thousand in reproposed base funding that support an array of operational contract
needs including investigative assistance and equipment, strategic planning consultation,
52-4
RL(ja) 47-463 05/03/2022
396
OFFICE OF INSPECTOR GENERAL
operational support contracts, media support, training design support and an array of
smaller requirements deferred to balance needs under a 2022 full year CR.
• $650 thousand for investment in investigative equipment related to a new eDiscovery and
digital forensics platform that can host all the OIG's investigative review software. The
current eDiscovery and digital forensics platform was purchased in 2017 and needs
refreshing. This product will give OIG investigative, legal, and other mission personnel
capabilities beyond the OIG's current technology. Additional benefits include much needed
additional storage and processing power to keep up with increasing agency demand for
processing of Electronically Stored information (ESI) and the ability to host Virtual Desktop
Infrastructure (VDI) for a customized virtual environment.
• $1.3 million to support increased travel requirements in 2023. Many activities that
previously would have required travel have been virtualized during the COVID-19 pandemic
and as an organization the OIG expects that to continue into 2023. However, other more
traditional travel will still be necessary primarily for investigations and some
audits/evaluations. For example, an evaluation that involve HUD's health and safety
inspection process would require an in-person OIG presence. The projected 2023 requirement
represents 56 percent of the OIG's pre-pandemic travel requirements.
• Reduction of $109 thousand for requirements associated with rent and utilities. The net
decrease in requirements is a product of the OIG decreasing our space footprint in some
areas of the country, balanced against some increased rent costs to consolidate all
Washington, DC OIG staff in permanent space on one floor of the Weaver building.
• $171 thousand increase related to inflation across contracts, equipment, shared service
agreement with Treasury, and other minimal expected pricing adjustments.
• $243 thousand to increase funding for training to a historically appropriate level. The OIG
reduced this requirement to balance operational needs at the 2022 full-year CR
appropriation level. For the OIG to be effective, we must train our staff members on the
intricacies of HUD's programs and on the most effective methods for performing oversight of
those programs.
• $115 thousand to increase funding for supplies to a more historically appropriate level. The
OIG would reduce this requirement to balance operational needs at the 2022 full year CR
appropriation.
• $50 thousand to increase funding for legal liabilities and settlements. Typically, the OIG sets
aside $250 thousand for this possibility. The OIG would reduce this amount to support the
2022 CR funding level.
• Reduction of $671 thousand for requirements related to the IT Business Operations Support
Services contract (BOSS) and Wide Area Network support contract (WAN). The BOSS
contract is being recompeted in late 2022. The OIG expects labor requirements to be lower
based on the OIG having increased Federal IT personnel onboard now versus the previous
bidding period. Additionally, with the OIG decommissioning some smaller field offices the
overall need for WAN circuit support will decrease in the next option year lowering the
requirement for that contract.
Overall, the 2023 non-personnel requirement represent the base operational needs for the OIG to
maintain current services and ensure OIG personnel have the tools, training, and operational
resources necessary to carry out our oversight mission. The OIG like all agencies continues to
scrutinize NPS needs to ensure that investment and spending aligns with organizational priorities
and increases our capability to provide better, timelier, and actionable oversight products to our
external stakeholders. The Budget request for NPS supports mission or operational needs that
achieve those objectives.
52-5
RL(ja) 47-463 05/03/2022
397
OFFICE OF INSPECTOR GENERAL
HUD Consolidated Financial Statement Audit
Beginning in 2020, Congress has required the OIG to outsource the annual financial statement
audit. The OIG utilizes two contracts to achieve this, one supporting the Ginnie Mae audit effort,
and the other providing for the FHA and the HUD consolidated portion of the financial statement
audit. At present, all contractors are performing adequately, and the expectation is that these
contracts will continue to remain active and in place for the remainder of their contractual lifespan.
The 2023 total cost to support the financial statement audit is $5.9 million. This represents a
$168 thousand inflationary increase from 2022.
Information Technology
The 2023 Budget provides necessary funding to support the OIG's IT infrastructure. This includes
the necessary costs to conduct cyclical replacement of IT assets, network infrastructure, ·and other
equipment as part of normal operations and maintenance activities.
The OIG hopes to begin the transition to a TIC compliant internet connection at both the
headquarters data center in Washington, DC and the disaster recovery data center located in
Denver, Colorado in 2022 once the GSA Enterprise Infrastructure Solution contract is available to
support this need. This effort will continue into 2023. By the end of 2023 the OIG expects to be in full
TIC compliance satisfying the 0MB mandate. Additionally, the OIG continues to prioritize spending
that supports cybersecurity including the use of DHS Continuous Diagnostic and Mitigation program
to procure information security related technologies. The 2023 Budget also provides for IT spending
that furthers mission capabilities particularly for the OIG's investigative function. Reproposed
investments shifted from 2022 would allow for investment in new eDiscovery and digital forensics
capabilities.
KEY OPERATIONAL INITIATIVES
The OIG's role is to deliver timely and quality oversight products that improve the execution of HUD
programs for all Americans. The organization's tireless focus has become doing "the right work at the
right time." This has led to significant changes within the OIG, many of which are still underway, to
include Data Literacy and Communities of Practice initiatives, to increase subject matter expertise
related to HUDs programs, keep OIG employees updated on available data sources and how to use
them for data-driven oversight, and enhance collaboration across OIG.
The OIG has made it a priority to ensure the organization has the talent and skill sets necessary to
enhance and broaden our strategic footprint, this includes hiring strategy and performance experts
to improve our strategic planning processes and development of effective organizational performance
measures that connect with SES and individual performance plans, an area in which the
organization had struggled in the past. This improves the OIG's ability to put the right measures in
place to make progress on agency-wide strategic goals each year to help the OIG achieve its mission.
To further its oversight, the OIG has recently realigned Office of Audit directors to each focus on
specific HUD program areas and are in the process of establishing Communities of Practice for 13 of
these areas. The Communities of Practice are OIG-wide groups of individuals with responsibilities
for overseeing each of these areas and will serve to be central knowledge repositories. Dynamic
virtual spaces, currently under development, where community members can post links, materials,
media articles, congressional testimonies, and reports; ask questions of other community members;
and collaborate on work will support these communities in practice. We foresee our communities will
fill potential knowledge gaps by allowing OIG staff within these communities to more efficiently get
up to speed on specific programs under review and draft more useful, practical, and quality
recommendations.
52-6
RL(ja) 47-463 05/03/2022
398
OFFICE OF INSPECTOR GENERAL
With all these progressive initiatives, the OIG is developing change management training to give
leaders at all levels the tools they need to help ensure that there is agency wide buy-in for the
strategic advances the OIG is making as an organization.
The OIG began an enterprise risk management program in 2017 and has continued to mature it. We
are using risk to inform organizational strategic goals and objectives that flow through to the
individual employee performance measures. As the risk management program matures, the OIG will
incorporate tracking of component and enterprise level risks to gain efficiencies, enhance monitoring
of internal performance deficits, provide transparency within the OIG, develop accountability, and
increase the organization's ability to make data-driven decisions.
The Inspector General, OIG leadership, and personnel carrying out the OIG's mission daily are
seeing the benefits and enterprise-wide improvement as a result of incorporating strategic planning,
strategic organizational design, and strategic based decision making into every facet of OIG
operations. As an agency we believe these changes will continue to improve our responsiveness to
stakeholders and the overall delivery of our mission.
Organizational Realignment
The OIG as part of continuing process to align personnel and duties in a way that optimizes
organizational outcomes has made three minor changes to the structure of the underlying offices:
• The OIG is proposing a realignment of the Planning, Performance, Risk Management and
Engagement (PPRiME) division within the Office of Evaluation to create the office of the
Chief Strategy Officer (CSO) within the Immediate Office of the Inspector General to assist
the IG with developing and executing strategic plans and initiatives, centralize oversight
strategy, manage OIG organizational risk, and increase OIG quality assurance. By
intimately connecting oversight planning and execution in a way that improves
recommendations and reporting provided to the Department and external stakeholders, the
OIG is elevating the strategic function within our organization. The proposed realignment
will not create any current or future budget requirements.
• The OIG is proposing realigning the Integrated Data Analytics Division (IDAD) from the
Office of Evaluation to the OIG's Office of Information Technology. The analytics conducted
by !DAD improve organizational strategy and the identification of emerging threats to the
Department. This data drives the OIG's oversight planning, strategy, and execution.
Effectively leveraging this information can save valuable time, resources, and help the
organization focus on the most important investigations, audits, evaluations, and reviews.
The proposed realignment will not create any current or future budget requirements.
• Lastly, the OIG is proposing to realign the functions of the Joint Civil Frauds Division which
was a group made up of both auditors and investigators tasked with oversight activities that
at times called for cross functional involvement. The respective audit and investigation
offices will absorb the staff that makes up this group. The OIG has institutionalized the
lessons learned and unique approaches to combating fraud that will allow for better
management of our audit and investigative function while still approaching each oversight
activity with the most appropriate strategy and skill set. The proposed realignment will not
create any current or future budget requirements.
52-7
RL(ja) 47-463 05/03/2022
399
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FISCAL YEAR 2023 GENERAL PROVISIONS
This document summarizes the General Provisions (GPs) in the 2023 President's
Budget.
Signifies inserted text
SEC. 201. SECTION 8 SAVINGS.-Fifty percent of the amounts of budget authority,
or in lieu thereof 50 percent of the cash amounts associated with such budget
authority, that are recaptured from projects described in section 1012(a) of the Stewart
B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S. C. 1437f note)
shall be cancelled or in the case of cash, shall be remitted to the Treasury, and such
amounts of budget authority or cash recaptured and not cancelled or remitted to the
Treasury shall be used by State housing finance agencies or local governments or local
housing agencies with projects approved by the Secretary of Housing and Urban
Development for which settlement occurred after January 1, 1992, in accordance with
such section. Notwithstanding the previous sentence, the Secretary may award up to
15 percent of the budget authority or cash recaptured and not cancelled or remitted to
the Treasury to provide project owners with incentives to refinance their project at a
lower interest rate.
Explanation of this Section: This section relates to the sharing of
savings from refunding bonds for certain Section 8 contracts.
SEC. 202. FAIR HOUSING ACT INVESTIGATIONS AND PROSECUTIONS.-
None of the funds made available by this Act may be used to investigate or prosecute
under the Fair Housing Act any otherwise lawful activity engaged in by one or more
persons, including the filing or maintaining of a nonfrivolous kgal action, that is
engaged in solely for the purpose of achieving or preventing action by a Government
official or entity, or a court of competent jurisdiction.
Explanation of this Section: This section makes clear that the
Department will not use its authority under the Fair Housing Act to
investigate or prosecute legal activity.
SEC. 203. COMPETITION IN ACCORDANCE WITH HUD REFORM ACT.-
Except as explicitly provided in law, any grant, cooperative agreement or other
assistance made pursuant to title II of this Act shall be made on a competitive basis
and in accordance with section 102 of the Department of Housing and Urban
Development Reform Act of 1989 (42 U.S.C. 3545).
Explanation of this Section: This provision requires that HUD funds be
subject to competition unless specified otherwise in statute.
SEC. 204. GNMA LEGAL SERVICES.-Funds of the Department of Housing and
Urban Development subject to the Government Corporation Control Act or section 402
53-1
RL(ja) 47-463 05/03/2022
400
GENERAL PROVISIONS
of the Housing Act of 1950 shall be available, without regard to the limitations on
administrative expenses, for legal services on a contract or fee basis, and for utilizing
and making payment for services and facilities of the Federal National Mortgage
Association, Government National Mortgage Association, Federal Home Loan
Mortgage Corporation, Federal Financing Bank, Federal Reserve banks or any
member thereof, Federal Home Loan banks, and any insured bank within the
meaning of the Federal Deposit Insurance Corporation Act, as amended (12
U.S.C.1811-1).
Explanation of this Section: This provision makes limitations on
administrative expenses inapplicable to certain expenditures of Ginnie Mae,
including legal services contracts and the expenses of carcying out its
programmatic duties. This provision ensures that administrative expenses
provided in annual appropriations bills does not preclude Ginnie Mae's
reliance upon its permanent, indefinite appropriation, in Section 1 of the
National Housing Act, for essential operating funds.
SEC. 205. HUD CORPORATION EXPENDITURES.-Corporations and
agencies of the Department of Housing and Urban Development which are
subject to the Government Corporation Control Act are hereby authorized to
make such expenditures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accordance with law, and to
make such contracts and commitments without regard to fiscal year limitations
as provided by section 104 of such Act as may be necessary in carrying out the
programs set forth in the budget for 2023 for such corporation or agency except
as hereinafter provided: Provided, That collections of these corporations and
agencies may be used for new loan or mortgage purchase commitments only to
the extent expressly provided for in this Act (unless such loans are in support of
other forms of assistance provided for in this or prior appropriations Acts),
except that this proviso shall not apply to the mortgage insurance or guaranty
operations of these corporations, or where loans or mortgage purchases are
necessary to protect the financial interest of the United States Government.
Explanation of this Section: This provision is an authorization by which
Congress implements its responsibilities under Section 104 of the
Government Corporations Control Act (31 U.S.C. 9104), which is necessary to
carry out the programs set forth in Ginnie Mae's budget for the coming year.
SEC. 206. TRANSFERS OF ASSISTANCE, DEBT, AND USE RESTRICTIONS.
(a) Notwithstanding any other provision of law, subject to the conditions listed
under this section, for fiscal years 2023 and 2024, the Secretary of Housing and
Urban Development may authorize the transfer of some or all project-based
assistance, debt held or insured by the Secretary and statutorily required low-income
and very low-income use restrictions if any, associated with one or more multifamily
housing project or projects to another multifamily housing project or projects.
(b) PHASED TRANSFERS.-Transfers of project-based assistance under this
section may be done in phases to accommodate the financing and other requirements
related to rehabilitating or constructing the project or projects to which the assistance
53-2
RL(ja) 47-463 05/03/2022
401
GENERAL PROVISIONS
is transferred, to ensure {hat such project or projects meet the standards under
subsection (c).
(c) The transfer authorized in subsection (a) is subject to the following
conditions:
(1) NUMBER AND BEDROOM SIZE OF UNITS.-
(A) For occupied units in the transferring project: The number of low-
income and very low-income units and the configuration (i.e., bedroom
size) provided by the transferring project shall be no less than when
transferred to the receiving project or projects and the net dollar
amount of Federal assistance provided to the transferring project shall
remain the same in the receiving project or projects.
(B) For unoccupied units in the transferring project: The Secretary
may authorize a reduction in the number of dwelling units in the
receiving project or projects to allow for a reconfiguration of bedroom
sizes to meet current market demands, as determined by the Secretary
and provided there is no increase in the project-based assistance
budget authority.
(2)The transferring project shall, as determined by the Secretary; be either
physically obsolete or economically nonviable, or be reasonably expected to become
economically nonviable when complying with state or Federal requirements for
community integration and reduced concentration of individuals with disabilities.
(3)The receiving project or projects shall meet or exceed applicable physical
standards established by the Secretary.
(4)The owner or mortgagor of the transferring project shall notify and
consult with the tenants residing in the transferring project and provide a
certification of approval by all appropriate weal governmental officials.
(5)The tenants of the transferring project who remain eligible for assistance
to be provided by the receiving project or projects shall not be required to vacate
their units in the transferring project or projects until new units in the receiving
project are available for occupancy.
(6)The Secretary determines that this transfer is in the best interest of the
tenants.
(7)If either the transferring project or the receiving project or projects meets
the condition specified in subsection (d)(2)(A), any lien on the receiving project
resulting from additional financing obtained by the owner shall be subordinate to
any FHA-insured mortgage lien transferred to, or placed on, such project by the
Secretary, except that the Secretary may waive this requirement upon determination
that such a waiver is necessary to facilitate the financing of acquisition, construction,
and/ or rehabilitation of the receiving project or projects.
(B)lf the transferring project meets the requirements of subsection (d)(2), the
owner or mortgagor of the receiving project or projects shall execute and record either
a continuation of the existing use agreement or a new use agreement for the project
where, in either case, any use restrictions in such agreement are of no lesser duration
than the existing use restrictions.
(9)The transfer does not increase the cost (as defined in section 502 of the
Congressional Budget Act of 1974(2 U.S.C. 661a)) of any FHA-insured mortgage,
except to the extent that appropriations are provided in advance for the amount of
any such increased cost.
(d) For purposes of this section-
53-3
RL(ja) 47-463 05/03/2022
402
GENERAL PROVISIONS
(l)the terms "low-income" and "very low-income" shall have the meanings
provided by the statute and/or regulations governing the program under which the
project is insured or assisted;
(2)the term "multifamily housing project" means housing that meets one of
the following conditions-
(A) housing that is subject to a mortgage insured under the National
Housing Act;
(B) housing that has project-based assistance attached to the structure
including projects undergoing mark to market debt restructuring under the
Multifamily Assisted Housing Reform and Affordability Housing Act;
(C) housing that is assisted under section 202 of the Housing Act of
1959 (12 u.s.c. 1701q);
(D) housing that is assisted under section 202 of the Housing Act of
1959 (12 U.S.C. 170lq), as such section existed before the enactment of the
Cranston-Gonzales National Affordable Housing Act;
(E) housing that is assisted under section 811 of the Cranston-
Gonzales National Affordable Housing Act (42 U.S.C. 8013); or
(F) housing or vacant land that is subject to a use agreement;
(3) the term "project-based assistance" means-
(A) assistance provided under section 8(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(b));
(B) assistance for housing constructed or substantially
rehabilitated pursuant to assistance provided under section 8(b)(2)
of such Act (as such section existed immediately before October 1,
1983);
(C) rent supplement payments under section 101 of the
Housing and Urban Development Act of 1965 (12 U.S.C. 1701s);
(D) interest reduction payments under section 236 and/ or
additional assistance payments under section 236(/)(2) of the
National Housing Act (12 U.S. C.17l 5z-1 );
(E) assistance payments made under section 202(c)(2) of the
HousingActof 1959(12 U.S.C.1701q(c)(2));and
(F) assistance payments made under section Bll(d)(2) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
8013(d)(2));
(4) the term "receiving project or projects" means the multifamily housing
project or projects to which some or all of the project-based assistance, debt, and
statutorily required low-income and very low-income use restrictions are to be
transferred;
(5) the term "transferring project" means the multifamily housing project
which is transferring some or all of the project-based assistance, debt, and the
statutorily required low-income and very low-income use restrictions to the receiving
project or projects; and
(6) the term "Secretary" means the Secretary of Housing and Urban
Development.
(e) RESEARCH REPORT.-The Secretary shall conduct an evaluation
of the transfer authority under this section, including the effect of such
transfers on the operational efficiency, contract rents, physical and financial
conditions, and long term preservation of the affected properties.
53-4
RL(ja) 47-463 05/03/2022
403
GENERAL PROVISIONS
Explanation of this Section: This provision allows the Secretary to
authorize the transfer of some or all project-based assistance, debt held or
insured by the Secretary, and statutorily required low-income and very low-
income use restrictions, if any, associated with one or more obsolete
multifamily housing project(s) to a viable multifamily housing project.
SEC. 207. VOUCHER ASSISTANCE FOR STUDENTS AT INSTITUTIONS
OF HIGHER EDUCATION.
(a) No a,ssistance shall be provided under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 14370 to any individual who---
(1) is enrolled as a student at an institution of higher education (a,s
defined under section 102 of the Higher Education Act of 1965 (20 U.S.C.
1002));
(2) is under 24 years of age;
(3) is not a veteran;
(4) is unmarried;
(5) does not have a dependent child;
(6) is not a person with disabilities, a,s such term is defined in
section 3(b)(3)(E) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(3)(E)) and wa,s not receiving a,ssistance under such section 8 a,s of
November 30, 2005;
(7) is not a youth who left foster care at age 14 or older and is at
risk of becoming homeless; and
(8) is not otherwise individually eligible, or has parents who,
individually or jointly, are not eligible, to receive assistance under section 8
of the United States Housing Act of 1937 (42 U.S.C. 14370.
(b) For purposes of determining the eligibility of a person to receive
assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C.
14370, any financial a,ssistance (in excess of amounts received for tuition and any
other required fees and charges) that an individual receives under the Higher
Education Act of 1965 (20 U.S. C. 1001 et seq.), from private sources, or from an
institution of higher education (a,s defined under section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that
individual, except for a person over the age of 23 with dependent children.
Explanation of this Section: This provision clarifies the eligibility for
assistance under section 8 of the United States Housing Act of 1937.
SEC. 208. DISTRIBUTION OF NAHASDA BLOCK GRANT FUNDS TO NATIVE
ALASKAN RECPIENTS.-The funds made available for Native Ala,skans under
paragraph (1) under the heading "Native American Programs" in title II of this Act
shall be allocated to the same Native Ala,skan housing block grant recipients that
received funds in fiscal year 2005, and only such recipients shall be eligible to apply
for funds made available under paragraph (2) of such heading.
Explanation of this Section: This section would direct block grant funds
awarded to each tribe to be allocated to those entities that received funding
in fiscal year 2005.
53-5
RL(ja) 47-463 05/03/2022
404
GENERAL PROVISIONS
SEC. 209. MANAGEMENT AND DISPOSITION OF CERTAIN MULTIFAMILY
PROJECTS.-Notwithstanding any other provision of law, in fiscal year 2023, in
managing and disposing of any multifamily property that is owned or has a mortgage
held by the Secretary of Housing and Urban Development, and during the process of
foreclosure on any property with a contract for rental assistance payments under
section 8 of the United States Housing Act of 1937 (42 U.S. C. 1437{) or any other
Federal programs, the Secretary shall maintain any rental assistance payments
under section 8 of the United States Housing Act of 1937 and other programs that
are attached to any dwelling units in the property. To the extent the Secretary
determines, in consultation with the tenants and the local government, that such a
multifamily property owned or having a mortgage held by the Secretary is not
feasible for continued rental assistance payments under such section 8 or other
programs, based on consideration of (1) the costs of rehabilitating and operating the
property and all available Federal, State, and local resources, including rent
adjustments under section 524 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (''MAHRAA'? (42 U.S.C. 1437fnote) and (2) environmental
conditions that cannot be remedied in a cost-effective fashion, the Secretary may, in
consultation with the tenants of that property, contract for project-based rental
assistance payments with an owner or owners of other existing housing properties, or
provide other rental assistance. The Secretary shall also take appropriate steps to
ensure that project-based contracts remain in effect prior to foreclosure, subject to the
exercise of contractual abatement remedies to assist relocation of tenants for
imminent major threats to health and safety after written notice to and informed
consent of the affected tenants and use of other available remedies, such as partial
abatements or receivership. After disposition of any multifamily property described
in this section, the contract and allowable rent levels on such properties shall be
subject to the requirements under section 524 of MAHRAA.
Explanation of this Section: This section governs the use of project-based
subsidy in connection with managing and disposing of multifamily properties.
SEC. 210. SMALL PHA ASSEST MANAGEMENT EXEMPTIONS.-Public
housing agencies that own and operate 400 or fewer public housing units may
elect to be exempt from any asset management requirement imposed by the
Secretary in connection with the operating fund rule: Provided, That an agency
seeking a discontinuance of a reduction of subsidy under the operating fund
formula shall not be exempt from asset management requirements.
Explanation of this Section: This section permits small PHAs with 400
or fewer units to elect not to operate under asset management.
SEC. 211. ASSET MANAGEMENT REQUIREMENTS FOR CAPTAIL FUNDS.-
With respect to the use of amounts provided in this Act and in future Acts for the
operation, capital improvement, and management of public housing as authorized by
sections 9(d) and 9(e) of the United States Housing Act of 1937 (42 U.S.C.
1437g(d),(e)), the Secretary shall not impose any requirement or guideline relating to
asset management that restricts or limits in any way the use of capital funds for
53-6
RL(ja) 47-463 05/03/2022
405
GENERAL PROVISIONS
central office costs pursuant to paragraph (1) or (2) of section 9(g) of the United States
Housing Act of 1937 (42 U.S.C. 1437g(g)(l), (2)): Provided, That a public housing
agency may not use capital funds authorized under section 9(d) for activities that are
eligible under section 9(e) for assistance with amounts from the operating fund in
excess of the amounts permitted under paragraph (1) or (2) of section 9(g).
Explanation of this Section: This section prohibits the Department from
imposing requirements or guidelines related to asset management that
restrict or limit the use of capital funds for PHAs' central office/overhead
costs.
SEC. 212. DESIGNATED ALLOTMENT HOLDERS.-No official or employee of the
Department of Housing and Urban Development shall be designated as an allotment
holder unless the Office of the Chief Financial Officer has determined that such
allotment holder has implemented an adequate system of funds control and has
received training in funds control procedures and directives. The Chief Financial
Officer shall ensure that there is a trained allotment holder for each HUD
appropriation under the accounts "Executive Offices", "Administrative Support
Offices'~ "Program Offices", "Government National Mortgage Association-
Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account", and
"Office of Inspector General" within the Department of Housing and Urban
Development.
Explanation of this Section: This provision requires the OCFO to make
sure that allotment holders have an adequate funds control system in place
and that training on funds control procedures and directives has occurred for
an official or employee before such official or employee is designated an
allotment holder. It also requires the CFO to ensure that each office in the
S&E accounts has a trained allotment holder.
SEC. 213. NOFO PUBLICATION.-The Secretary shall, for fiscal year 2023, notify
the public through the Federal Register and other means, as determined appropriate,
of the issuance of a notice of the availability of assistance or notice of funding
opportunity (NOFO) for any program or discretionary fund administered by the
Secretary that is to be competitively awarded. Notwithstanding any other provision of
law, for fiscal year 2023, the Secretary may make the NOFO available only on the
Internet at the appropriate Government web site or through other electronic media, as
determined by the Secretary.
Explanation of this Section: This provision requires the Department to
publish notices of availability of assistance or funding opportunity for any
program that is competitively awarded. The notices may be published on
the Internet.
SEC. 214. TRANSFER OF FUNDS.-The Secretary is authorized to transfer up to
10 percent or $5,000,000, whichever is less, of funds appropriated for any office
under the headings "Administrative Support Offices" or "Program Offices" to any
other such office : Provided, That the Secretary shall provide notification to the
53-7
RL(ja) 47-463 05/03/2022
406
GENERAL PROVISIONS
House and Senate Committees on Appropriations three business days in advance of
any such transfers: Provided further, That no appropriation for any such office shall
be increased or decreased by more than 10 percent or $5,000,000, whichever is less,
unless such Committees are notified in writing ten business days in advance of any
such transfers.
Explanation of this Section: This provision gives the Secretary the
authority to transfer a limited amount offunds, as needed, between
accounts that provide for personnel and non-personnel expenses.
SEC. 215. PHYSICAL CONDITIONS REQUIREMENTS.
(a) Any entity receiving housing assistance payments shall maintain decent,
safe, and sanitary conditions, as determined by the Secretary, and comply with any
standards under applicable State or local laws, rules, ordinances, or regulations
relating to the physical condition of any property covered under a housing assistance
payment contract.
(b) The Secretary shall take action under subsection (c) when a multifamily
housing project with a contract under Section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437/) or a contract for similar project-based assistance-
(l)receives a Uniform Physical Condition Standards (UPCS)
score of 59 or less; or
(2)fails to certify in writing to the Secretary within 3 days that
all Exigent Health and Safety deficiencies identified by the inspector at
the project have been corrected.
(3)Such requirements shall apply to insured and noninsured
projects with assistance attached to the units under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437/), but shall not apply
to such units assisted under section 8(0)(13) of such Act (42 U.S.C.
1437f(o)(13)) or to public housing units assisted with capital or
operating funds under section 9 of the United States Housing Act of 1937
(42 u.s.c. 1437g).
(c) (1) Within 15 days of the issuance of the Real Estate Assessment Center
("REAC'? inspection, the Secretary shall provide the owner with a Notice of Default
with a specified timetable, determined by the Secretary, for correcting all deficiencies.
The Secretary shall provide a copy of the Notice of Default to the tenants, the local
government, any mortgagees, and any contract administrator. If the owner's appeal
results in a UPCS score of 60 or above, the Secretary may withdraw the Notice of
Default.
(2) At the end of the time period for correcting all deficiencies specified
in the Notice of Default, if the owner fails to fully correct such deficiencies, the
Secretary may-
(A) require immediate replacement of project management
with a management agent approved by the Secretary;
(B) impose civil money penalUes, which shall be used solely
for the purpose of supporting safe and sanitary conditions at
applicable properties, as designated by the Secretary, with priority
given to the tenants of the property affected by the penalty;
53-8
RL(ja) 47-463 05/03/2022
407
GENERAL PROVISIONS
(C) abate the section 8 contract, including partial
abatement, as determined by the Secretary, until all deficiencies
have been corrected;
(D) pursue transfer of the project to an owner, approved by the
Secretary under established procedures, who will be obligated to
promptly make all required repairs and to accept renewal of the
assistance contract if such renewal is offered;
(E) transfer the existing section 8 contract to another
project or projects and owner or owners;
(F) pursue exclusionary sanctions, including
suspensions or debarments from Federal programs;
(G) seek judicial appointment of a receiver to manage the
property and cure all project deficiencies or seek a judicial order of
specific performance requiring the owner to cure all project
deficiencies;
(H) work with the owner, lender, or other related party to
stabilize the property in an attempt to preserve the property through
compliance, transfer of ownership, or an infusion of capital provided by
a third-party that requires time to effectuate; or
(I) take any other regulatory or contractual remedies
available as deemed necessary and appropriate by the Secretary.
(d) The Secretary shall take appropriate steps to ensure that project-based
contracts remain in effect, subject to the exercise of contractual abatement remedies
to assist relocation of tenants for major threats to health and safety after written
notice to the affected tenants. To the extent the Secretary determines, in consultation
with the tenants and the local government, that the property is not feasible for
continued rental assistance payments under such section 8 or other programs, based
on consideration of-
(1) the costs of rehabilitating and operating the property and all
available Federal, State, and local resources, including rent adjustments
under section 524 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 ("MAHRAA'?; and
(2) environmental conditions that cannot be remedied in a cost-
effective fashion, the Secretary may contract for project-based rental
assistance payments with an owner or owners of other existing housing
properties, or provide other rental assistance.
(e) The Secretary shall report quarterly on all properties covered by this
section that are assessed through the Real Estate Assessment Center and have UPCS
physical inspection scores of less than 60 or have received an unsatisfactory
management and occupancy review within the past 36 months. The report shall
include-
(l)identification of the enforcement actions being taken to address
such conditions, including imposition of civil money penalties and
termination of subsidies, and identification of properties that have such
conditions multiple times;
(2)identification of actions that the Department of Housing and
Urban Development is taking to protect tenants of such identified
properties; and
53.9
RL(ja) 47-463 05/03/2022
408
GENERAL PROVISIONS
(3)any administrative or legislative recommendatwns to further
improve the living conditions at properties covered under a housing
assistance payment contract. This report shall be submitted to the Senate and
House Committees on Appropriations not later than 30 days after the
enactment of this Act, and on the first business day of each Federal fiscal year
quarter thereafter while this section remains in effect.
Explanation of this Section: This general provision enhances HUD's
ability to exercise oversight within the PBRA program, allowing HUD to
mandate corrective action, contract transfers, or change in management
due to failure to meet physical condition standards.
SEC. 216. PHA EXECUTIVE COMPENSATION.-None of the funds made
available by this Act, or any other Act, for purposes authorized under section 8 (only
with respect to the tenant-based rental assistance program) and section 9 of the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), may be used by any
public housing agency for any amount of salary, including bonuses, for the chief
executive officer of which, or any other official or employee of which, that exceeds the
annual rate of basic pay payable for a position at level N of the Executive Schedule
at any time during any public housing agency fiscal year 2023.
Explanation of this Section: This provision establishes a cap on
PHA personnel compensation tied to the Federal Executive Schedule
pay scale.
SEC. 217. EMINENT DOMAIN RESTRICTIONS.-None of the funds made
available in this Act shall be used by the Federal Housing Administration, the
Government National Mortgage Administration, or the Department of Housing and
Urban Development to insure, securitize, or establish a Federal guarantee of any
mortgage or mortgage backed security that refinances or otherwise replaces a
mortgage that has been subject to eminent domain condemnation or seizure, by a
State, municipality, or any other political subdivision of a State.
Explanation of this Section: Prohibits HUD from guaranteeing
mortgages or mortgage-backed securities that refinance or otherwise replace
mortgages that have been subject to eminent domain.
SEC. 218. ENTITLEMENT STATUS.-None of the funds made available by this Act
may be.used to terminate the status of a unit of general local government as a
metropolitan city (as defined in section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C.5302)) with respect to grants under sectwn 106 of
such Act (42 U.S.C. 5306).
Explanation of this Section: Prohibits funds from being used to
terminate the status of a unit of local government as a metropolitan city, as
defined under Section 102 of the Housing and Community Development Act
of 1974, with respect to grants under Section 106 of such Act.
53-10
RL(ja) 47-463 05/03/2022
409
GENERAL PROVISIONS
SEC. 219. UNOBLIGATED RESEARCH FUNDS.-Amounts made available by
this Act that appropriated, allocated, advanced on a reimbursable basis, or
transferred to the Office of Policy Development and Research in the Department of
Housing and Urban Development and functions thereof, for research, evaluation, or
statistical purposes, and which are unexpended at the time of completion of a
contract, grant, or cooperative agreement, may be deobligated and shall
immediately become available and may be reobligated in that fiscal year or the
subsequent fiscal year for the research, evaluation, or statistical purposes for which
the amounts are made available to that Office subject to reprogramming
requirements in section 226 of this Act.
Explanation of this Section: Thia provision gives HUD the ability to re-
obligate research funds left unexpended at the conclusion of an agreement.
SEC. 220. PROHIBITION OF AWARDS.-None of the funds provided in this Act or
any other act may be used for awards, including performance, special act, or spot, for
any employee of the Department of Housing and Urban Development subject to
administrative di,scipline (including suspension from work), in this fiscal year, but
this prohibition shall not be effective prior to the effective date of any such
administrative di,scipline or after any final decision over-turning such di,scipline.
Explanation of this Section: This provision prohibits the Department
from issuing performance awards to employees subject to administrative
discipline.
SEC. 221. MATCHING REQUIREMENTS.-With respect to grant amounts awarded
under the heading "Homeless Assistance Grants" for fiscal years 2015 through 2023
for the continuum of care (CoC) program as authorized under subtitle C of title N of
the McKinney- Vento Homeless Assistance Act, costs paid by program income of grant
recipients may count toward meeting the recipient's matching requirements, provided
the costs are eligible CoC costs that supplement the recipient's CoC program.
Explanation of this Section: This provision allows Homeless Assistance
Grant recipients to count program income as an eligible match for CoC
program funds.
SEC. 222. CONTINUUM OF CARE TRANSITION GRANTS.
(a) From amounts made available under thi,s title under the heading
"Homeless Assistance Grants", the Secretary may award 1-year transition grants to
recipients of funds for activities under subtitle C of the McKinney- Vento Homeless
Assistance Act (42 U.S.C. 11381 et seq.) to transition from one Continuum of Care
program component to another.
(b) In order to be eligible to receive a transition grant, the funding
recipient must have the consent of the Continuum of Care and meet standards
determined by the Secretary.
53-11
RL(ja) 47-463 05/03/2022
410
GENERAL PROVISIONS
Explanation of this Section: This provision allows CoC grantees to receive
one-year transition grants to transition from one CoC program component to
another.
SEC. 223. PROMISE ZONE DESIGNATIONS AND AGREEMENTS.-The Promise
Zone designations and Promise Zone Designation Agreements entered into pursuant
to such designations, made by the Secretary of Housing and Urban Development in
prior fiscal years, shall remain in effect in accordance with the terms and conditions
of such agreements.
Explanation of this Section: This provis10n requires that
Promise Zone designations and agreements shall remain in effect.
SEC. 224. MOVING TO WORK FLEXIBILIES.-Any public housing agency
designated as a Moving to Work agency pursuant to section 239 of division L of
Public Law 114-113 (42 U.S.C. 1437f note; 129 Stat. 2897) may, upon such
designation and thereafter, use funds (except for special purpose funding, including
special purpose vouchers) previously allocated to any such public housing agency
under section 8 or 9 of the United States Housing Act of 1937, including any reserve
funds held by the public housing agency or funds held by the Department of Housing
and Urban Development, pursuant to the authority for use of section 8 or 9 funding
provided under such section and section 204 of title II of the Departments of Veterans
Affairs and Housing and Urban Development and Independent Agencies
Appropriations Act, 1996 (Public Law 104-134; 110 Stat. 1321-28), notwithstanding
the purposes for which such funds were appropriated.
Explanation of this Section: This provision allows public housing agencies
designated as Moving to Work agencies to use pre-designation housing choice
voucher and public housing funds, including reserves, consistent with the
Moving to Work authorities.
SEC. 225. PROHIBITION ON LIMITING LEAD BASED PAINT EVALUATIONS.-
None of the amounts made available by this Act may be used to prohibit any public
housing agency under receivership or the direction of a Federal monitor from
applying for, receiving, or using funds made available under the heading "Public
Housing Fund" for competitive grants to evaluate and reduce lead-based paint
hazards in this Act or that remain available and not awarded from prior Acts, or be
used to prohibit a public housing agency from using such funds to carry out any
required work pursuant to a settlement agreement, consent decree, voluntary
agreement, or similar document for a violation of the Lead Safe Housing or Lead
Disclosure Rules.
Explanation of this Section: This provision prohibits funds from being
used to make certain eligibility limitations as part of a notice of funding
opportunity for certain competitive grant awards under the Public
Housing Fund.
53-12
RL(ja) 47-463 05/03/2022
411
GENERAL PROVISIONS
SEC. 226. REPROGRAMMING LIMITATIONS.-Except as otherwise provided in
this Act, and unless the House and Senate Committees on Appropriations are
consulted 15 days in advance of any reprogramming and are notified in writing 10
days in advance of such reprogramming, none of the funds provided in this title,
provided by previous appropriations Acts to 'the Department of Housing and Urban
Development that remain available for obligation or expenditure in fiscal year 2023,
or provided from any accounts in the Treasury derived by the collection of fees and
available to the Department of Housing and Urban Development, shall be available
for obligation or expenditure through a reprogramming of funds that-
(a) for Program and Information Technology funds-
(1) initiates or creates a new program, project, or activity;
(2) eliminates a program, project, or activity;
(3) increases funds for any program, project, or activity for which
funds have been denied or restricted by the Congress;
(4) proposes to use funds directed for a specific activity by either the
House or Senate Committees on Appropriations for a different purpose;
(5) augments existing programs, projects, or activities in excess of
$5,000,000 or 10 percent, whichever is less; or
(6) reduces existing programs, projects, or activities by $5,000,000 or
10 percent whichever is less;
(b) for Salaries and Expenses funds-
(1) assigns personnel or hires to support the creation of a new
program, project, or activity not previously included in the
President's budget;
(2) increases the personnel or other resources for any program,
project, or activity for which funds have been denied or restricted
by the Congress;
(3) relocates or closes an office;
(4) reorganizes an office, which shall include the transfer of any
function from one office to another office.
Explanation of this Section: This provision establishes
reprogramming requirements for fiscal year 2023.
SEC. 227. OPERATING PLAN REQUIREMENTS.-Not later than 60 days after the
date of enactment of this Act, the Department of Housing and Urban Development
shall submit a report to the Committees on Appropriations of the Senate and of the
House of Representatives to establish the baseline for application of reprogramming
and transfer authorities for the current fiscal year: Provided, That such report shall
include--
(a) a table for each appropriation with a separate column to display the
prior year enacted level, the President's budget request, adjustments made
by Congress, adjustments due to enacted rescissions, if appropriate, and
the fiscal year enacted level;
(b) for program funds, a delineation in the table for each appropriation and
its respective prior year enacted level by program, project, and activity as
detailed in the budget appendix for the respective appropriation; and
53-13
RL(ja) 47-463 05/03/2022
412
GENERAL PROVISIONS
(c) for salaries and expenses, an organizational chart for each office that
includes detail to the branch level, and clearly identifies those "offices" to
which section 226(b) shall be applied.
Explanation of this Section: This provision establishes operating plan
requirements for fiscal year 2023. The operating plan establishes the
baseline for the application of reprogramming requirements and transfers
of funds.
SEC. 228. CHOICE NEIGHBORHOODS EXPENDITURES.- (a) Funds previously
made available in the Consolidated and Further Continuing Appropriations Act,
2015 (Public Law 113-235) for the "Choice Neighborhoods Initiative" that were
available for obligation through
fiscal year 2017 are to remain available through fiscal year 2023 for the liquidation of
valid obligations incurred in fiscal years 2015 through 2017.
()J)Funds previously made available in the Consolidated Appropriations Act,
2016 (Public Law 114--113) for the "Choice Neighborhoods Initiative" that
were available for obligation through fiscal year 2018 are to remain
available through fiscal year 2024 for the liquidation of valid obligations
incurred in fiscal years 2016 through 2018.
(c) Funds previously made available in the Consolidated Appropriations Act,
2017 (Public Law 115-31) for the "Choice Neighborhoods Initiative" that
were available for obligation through fiscal year 2019 are to remain
available through fiscal year 2025 for the liquidation of valid obligations
incurred in fiscal years 2017 through 2019.
(d)Funds previously made available in the Consolidated Appropriations Act,
2018 (Public Law 115-141) for the "Choice Neighborhoods Initiative" that
were available for obligation through fiscal year 2020 are to remain
available through fiscal year 2026 for the liquidation of valid obligations
incurred in fiscal years 2018 through 2020.
(e) Funds previously made available in the Consolidated Appropriations Act,
2019 (Public Law 116-6) for the "Choice Neighborhoods Initiative" that were
available for obligation through fiscal year 2021 are to remain available
through fiscal year 2027 for the liquidation of valid obligations incurred in
fiscal years 2019 through 2021.
(f) Funds previously made available in the Further Consolidated
Appropriations Act, 2020 (Public Law 116-94) for the "Choice Neighborhoods
Initiative" that were available for obligation through fiscal year 2022 are to
remain available through fiscal year 2028 for the liquidation of valid
obligations incurred in fiscal years 2020 through 2022.
(g)Funds previously made available in the Consolidated Appropriations Act,
2021 (Public Law 116-260) for the "Choice Neighborhoods Initiative" that
were available for obligation through fiscal year 2023 are to remain
available through fiscal year 2029 for the liquidation of valid obligations
incurred in fiscal years 2021 through 2023.
(h)
(1) This section shall become effective immediately upon enactment of
this Act.
53-14
RL(ja) 47-463 05/03/2022
413
GENERAL PROVISIONS
(2) If this Act is enacted after September 30, 2022, subsection (a) shall
be applied as if it were in effect on September 30, 2022.
Explanation of this Section: This provision extends the expenditure
period for previously appropriated Choice Neighborhoods funds.
SEC. 229. MOVING TO WORK DESIGNATION PERIOD.- Section 239 of the
Department of Housing and Urban Development Appropriations Act, 2016 (Public
Law 11~113; 129 Stat. 2897) is amended by striking "7-year period" and inserting
"10-year period" in the fifth sentence.
Explanation of this Section: This provision extends selection period from
7 to 10 years for the Moving to Work demonstration.
SEC. 230. GINNIE MAE SECUIRITZED MULTIFAMILY LOANS AND RISK
SHARING.-Paragraph (6) of section 542(c) of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-22(c)) is amended in its title by deleting
"Prohibition on" and by revising the text of paragraph (6) to read as follows: "The
Government National Mortgage Association may, at the discretion of the Secretary,
securitize any multifamily loan insured under this subsection, provided that,
notwithstanding any other provision, any successors and assigns of the risk share
partner (including the holders of credit instruments issued under a trust mortgage or
deed of trust pursuant to which such holders act by and through a trustee therein
named) shall not assume any obligation under the risk-sharing agreement and may
assign any defaulted loan to the Federal Housing Administration in exchange for
payment of the full mortgage insurance claim. The risk-sharing agreement must
provide for reimbursement to the Secretary by the risk share partner(s) for either all or
a portion of the losses incurred on the loans insured. The originating Housing Finance
Agency cannot assign or otherwise be relieved of its risk share obligations under the
risk-sharing agreement. 11
•
Explanation of this Section: This provision authorizes Ginnie Mae to
securitize affordable multifamily loans made by Housing Finance Agencies
(HFAs) and insured under the Federal Housing Administration's (FHA)
542(c) Risk-Sharing program.
SEC. 231. TRANSFERS TO INFORMATION TECHNOLOGY FUND.- Of the
amounts made available for salaries and expenses under all accounts under
this title (except for the Office of Inspector General account), a total of up to
$10,000,000 may be transferred to and merged with amounts made available in
the "Information Technology Fund" account under this title.
Explanation of this Section: This provision allows for the transfer of up
to $10 million in S&E funds to the Information Technology Fund.
SEC. 232. RENTAL ASSISTANCE DEMONSTRATION.-The language under the
heading "Rental Assistance Demonstration II in the Department of Housing and
53-15
RL(ja) 47-463 05/03/2022
414
GENERAL PROVISIONS
Urban Development Appropriations Act, 2012 (Public Law 112- 55), as most recently
amended by Public Law 115-141, is further amended-
(a)in the initial undesignated matter, by striking "and 'Public
Housing Operating Fund 111 and inserting 11, 'Public Housing Operating
Fund', and 'Public Housing Fund':·
(b) in the second proviso, by striking "until September 30, 2024" and
inserting ''for fiscal year 2012 and thereafter':·
(c) by striking the fourth proviso and inserting the following new
provisos: "Provided further, That at properties with assistance under section 9
of the Act requesting to partially convert such assistance, and where an event
under section 18 of the Act occurs that results in the eligibility for tenant
protection vouchers under section 8(0) of the Act, the Secretary may convert
the tenant protection voucher assistance to assistance under a project-based
subsidy contract under section 8 of the Act, which shall be eligible for renewal
under section 524 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997, or assistance under section 8(0)(13) of the Act, so
long as the property meets any additional requirements established by the
Secretary to facilitate conversion: Provided further, That to facilitate the
conversion of assistance under the previous proviso, the Secretary may
transfer an amount equal to the total amount that would have been allocated
for tenant protection voucher assistance for properties that have requested
such conversions from amounts made available for tenant protection voucher
assistance under the heading 'Tenant-Based Rental Assistance' to the
heading 'Project-Based Rental Assistance': Provided further, That at
properties with assistance previously converted hereunder to assistance
under the heading "Project-Based Rental Assistance," which are also
separately assisted under section 8(0)(13) of the Act, the Secretary may, with
the consent of the public housing agency and owner, terminate such project-
based subsidy contracts and immediately enter into one new project-based
subsidy contract under section 8 of the Act, which shall be eligible for
renewal under section 524 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997, subject to the requirement that any residents
assisted under section 8(0)(13) of the Act at the time of such termination of
such project-based subsidy contract shall retain all rights accrued under
section 8(o)(l 3)(E) of the Act under the new project-based subsidy contract
and section 8(o)(13)(F)(iv) of the Act shall not apply: Provided further, That
to carry out the previous proviso, the Secretary may transfer from the
heading "Tenant-Based Rental Assistance" to the heading "Project-Based
Rental Assistance" an amount equal to the amounts associated with such
terminating contract under section 8(0)(13) of the Act:";
(d)in the thirteenth proviso, as reordered above, by
(1) inserting '"Public Housing Fund', 'Self-Sufficiency
Programs', 'Family Self-Sufficiency 111 following '"Public Housing
Operating Fund',"; and
(2) inserting "or the ongoing availability of services for
residents" after "effective conversion of assistance under the
demonstration':·
(e) by striking the twenty-first proviso, as reordered above, and
inserting the following new provisos: "Provided further, That conversions
53-16
RL(ja) 47-463 05/03/2022
415
GENERAL PROVISIONS
of assistance under the following provisos herein shall be considered as
the 'Second Component' and shall be authorized for fiscal year 2012 and
thereafter: Provided further, That owners of properties assisted under
section 101 of the Housing and Urban Development Act of 1965, section
236(/)(2) of the National Housing Act, or section 8(e)(2) of the United
States Housing Act of 1937, for which an event after October 1, 2006 has
caused or results in the termination of rental assistance or affordability
restrictions and the issuance of tenant protection vouchers under section
8(0) of the Act shall be eligible, subject to requirements established by the
Secretary, for conversion of assistance available for such vouchers or
assistance contracts to assistance under a long term project-based
subsidy contract under section 8 of the Act: Provided further, That
owners of properties with a project rental assistance contract under
section 202(c)(2) of the Housing Act of 1959 shall be eligible, subject to
requirements established by the Secretary, including but not limited to
the subordination, restructuring, or both, of any capital advance
documentation, including any note, mortgage, use agreement or other
agreements, evidencing or securing a capital advance previously
provided by the Secretary under section 202(c)(l) of the Housing Act of
1959 as necessary to facilitate the conversion of assistance while
maintaining the affordability period and the designation of the property
as serving elderly persons, and tenant consultation procedures, for
conversion of assistance available for such assistance contracts to
assistance under a long term project-based subsidy contract under
section 8 of the Act: Provided further, That owners of properties with a
senior preservation rental assistance contract under section 811 of the
American Homeownership and Economic Opportunity Act of 2000 (12
U.S.C. 170lq note), shall be eligible, subject to requirements established
by the Secretary as necessary to facilitate the conversion of assistance
while maintaining the affordability period and the designation of the
property as serving elderly families, and tenant consultation procedures,
for conversion of assistance available for such assistance contracts to
assistance under a long term project-based subsidy contract under
section 8 of the Act: Provided further, That owners of properties with a
project rental assistance contract under section 811 (d)(2) of the
Cranston-Gonzalez National Affordable Housing Act, shall be eligible,
subject to requirements established by the Secretary, including but not
limited to the subordination, restructuring, or both, of any capital
advance documentation, including any note, mortgage, use agreement or
other agreements, evidencing or securing a capital advance previously
provided by the Secretary under section 811(d)(2) of the Cranston-
Gonzalez National Affordable Housing Act as necessary to facilitate the
conversion of assistance while maintaining the affordability period and
the designation of the property as serving persons with disabilities, and
tenant consultation procedures, for conversion of assistance contracts to
assistance under a long term project-based subsidy contract under
section 8 of the Act; Provided further, That long term project-based
subsidy contracts under section 8 of the Act which are established under
this Second Component shall have a term of no less than 20 years, with
53-17
RL(ja) 47-463 05/03/2022
416
GENERAL PROVISIONS
rent adjustments only by an operating cost factor established by the
Secretary, which shall be eligible for renewal under section 524 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 ( 42
U.S. C. 1437f note), or, subject to agreement of the administering public
housing agency, to assistance under section 8(0)(13) of the Act, to which
the limitation under subparagraph (B) of section 8(0)(13) of the Act shall
not apply and for which the Secretary may waive or alter the provisions
of subparagraphs (C) and (D) of section 8(0)(13) of the Act:':·
(f) after the twenty-seventh proviso, as reordered above, by
inserting the following new proviso: "Provided further, That the
Secretary may waive or alter the requirements of section 8(c)(l)(A) of the
Act for contracts provided to properties converting assistance from
section 202(c)(2) of the Housing Act of 1959 as necessary to ensure the
ongoing provision and coordination of services or to avoid a reduction in
project subsidy:':· and
(g) in the thirty-third proviso, as reordered above, by-
(1) striking "heading 'Housing for the Elderly"' and inserting
"headings 'Housing for the Elderly' and 'Housing for Persons
with Disabilities"'; and
(2) striking "any section 202 project rental assistance contract
conversions" and inserting "the conversion of assistance from
section 202(c)(2) of the Housing Act of 1959, section 811 of the
American Homeownership and Economic Opportunity Act of
2000, or section 811(d)(2) of the Cranston-Gonzalez National
Affordable Housing Act".
Explanation of this Section: This provision would eliminate the unit cap
on the number of public housing conversions that can be completed relying
solely on existing public housing funding levels. The proposal also eliminates
the statutory application deadline. Such changes will ensure that HUD can
maximize the number of public housing properties that can be preserved
without additional funding. For a comprehensive explanation of changes
please see the Project-Based Rental Assistance justification.
SEC. 233. LEAD HAZARD REDUCTION EXPENDITURE EXTENTION.-Funds
previously made available in the Consolidated Appropriations Act, 2019 (Public Law
116-6) for "Lead Hazard Reduction" that were available for obligation through fiscal
year 2020 are to remain available through fiscal year 2027 for the liquidation of valid
obligations incurred in fiscal years 2019 through 2020.
Explanation of this Section: This provision extends the expenditure period
for Lead Hazard Reduction funds previously appropriated in 2019.
SEC. 234. MARK-TO-MARKET AMENDMENTS. The Multifamily Assisted
Housing Reform and Affordability Act of 1997 ( 42 U.S.C. 1437f note) is amended-
(a) in section 515, by adding at the end the following new subsection:
"(d) RENT ADJUSTMENTS AND SUBSEQUENT RENEWALS. After the initial
renewal of a section 8 contract pursuant to this section and notwithstanding any
53-18
RL(ja) 47-463 05/03/2022
417
GENERAL PROVISIONS
other provision of law or contract regarding the adjustment of rents or subsequent
renewal of such contract for a project, including such a provision in section 514
or this section, in the case of a project subject to any restrictions imposed pursuant
to sections 514 or this section, the Secretary may, not more often than once every
10 years, adjust such rents or renew such contracts at rent levels that are equal
to the lesser of budget-based rents or comparable market rents for the market area
upon the request of an owner or purchaser who---
"(l)demonstrates that--
"(A) project income is insufficient to operate and maintain the project, as
determined by the Secretary; or
"(B) the rent adjustment or renewal contract is necessary to support
commercially reasonable financing (including any required debt service
coverage and replacement reserve) for rehabilitation necessary to ensure
the long-term sustainability of the project, as determined by the
Secretary; and
"(2)agrees to---
"(A) extend the affordability and use restrictions required under 514(e)(6)
for an additional twenty years; and
"(B) enter into a binding commitment to continue to renew such contract
for and during such extended term, provided that after the affordability
and use restrictions required under 514(e)(6) have been maintained for
a term of 30 years:
"(i) an owner with a contract for which rent levels were set at the
time of its initial renewal under section 514(g)(2) shall request
that the Secretary renew such contract under section 524 for and
during such extended term; and
"(ii) an owner with a contract for which rent levels were set at the
time of its initial renewal under section 514(g)(l) may request
that the Secretary renew such contract under section 524. ";
(b) in section 524, by adding at the end the following new subsection:
"(h) RENT ADJUSTMENTS TO ADDRESS DISTRESS. In the case of a
section 8 contract that will be eligible for renewal under this section when it
expires or terminates, notwithstanding any provision of contract or law
regarding the adjustment of rents, including such a provision in this section,
the Secretary may adjust such rents, subject to the availability of funds for
such rent adjustments, to rent levels that are equal to the lesser of budget-
based rents or comparable market rents for the market area at the request of
an owner or purchaser who demonstrates that such rent adjustment is needed
to address project health and safety deficiencies and that-
"(1) project income is insufficient to operate and maintain the project, as
determined by the Secretary; or
"(2) the rent adjustment is necessary to support commercially reasonable
financing (including any required debt service coverage and replacement
reserve) for rehabilitation necessary to ensure the long-term sustainability
of the project, as determined by the Secretary. 1:· and
(c) in section 579, by striking "October 1, 2022 11 each place it appears and inserting
in lieu thereof "October 1, 2027".
53-19
RL(ja) 47-463 05/03/2022
418
GENERAL PROVISIONS
Explanation of this Section: This provision would allow for budget-based
rent increases for certain at-risk multifamily properties in the Mark-to-
Market (M2M) Program and for other PBRA properties with health and
safety deficiencies. Also, this provision would extend authorization for M2M
through September 30, 2027.
SEC. 235. CORRECTION OF ALLOCATION ERRORS.-Notwithstanding any other
provision of law, if the Secretary determines, for any prior formula grant allocation
administered by the Secretary under a program under the headings "Public and
Indian Housing", "Community Planning and Development", or "Housing Programs"
in this title, that a recipient received
an allocation greater than the amount such recipient should have received for a
formula allocation cycle pursuant to applicable statutes and regulations, the
Secretary may adjust for any such funding error in the next applicable formula
allocation cycle by-
(a) offsetting each such recipient's formula allocation (if eligible for a formula
allocation in the next applicable formula allocation cycle) by the amount of
any such funding error; and
(b) reallocating any available balances that are attributable to the offset to the
recipient or recipients that would have been allocated additional funds in the
formula allocation cycle in which any such error occurred (if such recipient or
recipients are eligible for a formula allocation in the next applicable formula
allocation cycle) in an amount proportionate to such recipient's eligibility
under the next applicable formula allocation cycle formula:
Provided, That all offsets and reallocations from such available balances shall be
recorded against funds available for the next applicable formula allocation cycle:
Provided further, That the term "next applicable formula allocation cycle" means
the first formula allocation cycle for a program that is reasonably available for
correction following such a Secretarial determination: Provided further, That if,
upon request by a recipient and giving consideration to all Federal resources
available to the recipient for the same grant purposes, the Secretary determines that
the offset in a next applicable formula allocation cycle would critically impair the
recipient's ability to accomplish the purpose of the formula grant, the Secretary may
adjust for the funding error across two or more formula allocation cycles.
Explanation of this Section: This provision allows the Department to
correct any past formula allocation errors as part of the next applicable
formula allocation cycle.
SEC. 236. SUNSET OF PROGRAMS.-Public housing agencies may not renew
rental assistance contracts under the moderate rehabilitation program under section
8(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437f(e)(2)) or the
moderate rehabilitation single room occupancy program under section 441 of the
McKinney-Vento Homeless Assistance Act ( 42 U.S. C. 11401) after September 30,
2027.
Explanation of this Section: This provision proposes a sunset of the
Moderate Rehabilitation and Single Room Occupancy programs in five years
to give owners time to develop plans for transition to one of the two
53-20
RL(ja) 47-463 05/03/2022
419
GENERAL PROVISIONS
alternative Section 8 platforms (Project-Based Rental Assistance or Project
Based Vouchers).
SEC. 237. TRIBAL PARTICIPATION IN CONTIUUM OF CARE PROGRAM.-(a)
With respect to the funds made available for the Continuum of Care program
authorized under subtitle C of title N of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11381 et seq.) under the heading "Homeless Assistance Grants" in the
Department of Housing and Urban Development Appropriations Act, 2021 (Public
Law 116-260), under section 231 of the Department of Housing and Urban
Development Appropriations Act, 2020 (42 U.S.C. 11364a), or in this title, Title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and Title VIII of the Civil
Rights Act of 1968 (42 U.S.C. 3601 et seq.) shall not apply to applications by or
awards for projects to be carried out-
(1) on or off reservation or trust lands for awards made to Indian tribes or
tribally designated housing entities; or
(2) on reservation or trust lands for awards made to eligible entities as
defined in section 401 of the McKinney-Vento Homeless-Assistance Act
(42u.s.c. 11360).
(b) With respect to funds made available for the Continuum of Care program
authorized under subtitle C of title N of the McKinney- Vento Homeless
Assistance Act (42 U.S.C. 11381 et seq.) under the heading "Homeless
Assistance Grants II in this title or under section 2 31 of the Department of
Housing and Urban Development Appropriations Act, 2020 (42 U.S. C.
11364a)-
(1) applications for projects to be carried out on reservations or trust land
shall contain a certification of consistency with an approved Indian
housing plan developed under section 102 of the Native American
Housing Assistance and Self-Determination Act (NAHASDA) (25
U.S.C. 4112), notwithstanding section 106 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12706) and section 403 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361);
(2) Indian tribes and tribally designated housing entities that are
recipients of awards for projects on reservations or trust land shall
certify that they are following an approved housing plan developed
under section 102 of NAHASDA (25 U.S.C. 4112); and
(3) a collaborative applicant for a Continuum of Care whose geographic
area includes only reservation and trust land is not required to meet
the requirement in section 402(/)(2) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360a(f)(2)).
Explanation of this Section: This provision will eliminate barriers to
tribes participating in the CoC Program as recipients and CoCs.
SEC. 238. ADDRESSING AN mp DEFICIENCY.-Of the amounts made available
under the heading "Project-Based Rental Assistance" in prior Acts, up to $1,300,000
may be transferred to Treasury Account 86-X-0148 for the liquidation of obligations
incurred in fiscal year 2018 in connection with the continued provision of interest
reduction payments authorized under section 236 of the National Housing Act (12
U.S.C. 1715z-1).
53-21
RL(ja) 47-463 05/03/2022
420
GENERAL PROVISIONS
Explanation of this Section: This provision would transfer unobligated
balances in the PBRA account to the Rental Housing Assistance account for
liquidation of an Interest Reduction Payments (IRP) program obligation.
53-22
RL(ja) 47-463 05/03/2022
File and source
- File
- CHRG-117hhrg47463.pdf
- Size
- 13,341,150 bytes
- SHA-256
- 61ca663d9f02eafa2657fb44785f3763662d70eb1f736eefa8d23b36dd7624e4
- Our copy
- CHRG-117hhrg47463.pdf
- Original
- www.govinfo.gov