American Community Survey Presents Challenges and Creates Opportunities for HUD

Since 1940, the U.S. Bureau of the Census has used two questionnaires to collect data for the decennial census – the "short form" that counts the population and gathers basic information and the "long form" that obtains more detailed demographic, housing, social, and economic information from a sample of households. However, because the Census Bureau collects long form information only once every 10 years, long form data quickly become out-of-date. Federal program administrators, local planners, and other data users are often forced to use this outdated data for decisions that have expensive consequences and affect the lives of millions of people.

The American Community Survey (ACS) will collect data on a continuous basis from monthly samples of the population. The results from these monthly samples will be combined to generate estimates for all areas of the country, regardless of size. The first complete set of data for all areas of the country will be available five years after the first data are collected and will be based on moving five-year periods. Data for larger areas will be available for each one-year period. Data for intermediate-sized areas will be available for moving three-year periods. The start date for the ACS is contingent on Congressional funding. Such a change to Census data will have dramatic impacts on users, and HUD is a heavy user of Census data and will need to consider the benefits and challenges of such a major shift in data availability.

"The American Community Survey: Challenges and Opportunities for HUD," a new report from HUD’s Office of Policy Development and Research assesses the implications of using the ACS rather than long form data to determine program eligibility, allocate funds, target program activities, assess client needs, and evaluate client performance. The purpose of the report is to help HUD policymakers and analysts understand the issues and opportunities involved in moving to the ACS and guide them in adapting their activities to take full advantage of this new source of data.

Based on conversations with HUD data users, ACS officials, and examinations of HUD documents, the report analyzes how specific programs will be affected by the new survey and presents a series of recommendations. Taking into account the technical, policy, and resource issues raised by the ACS, the document contains three recommendations for how HUD can best integrate the ACS into its ongoing operations:

• Ensure that HUD managers are well informed about the nature and timing of the ACS so they can provide their technical staff with the resources and guidance they will need to move from the decennial long form to the ACS.
  
• Resolve certain key problems, such as deciding when to adopt the new ACS data that will become available for different-sized populations in different years, early on to eliminate confusion and smooth adaptation to ACS data.
  
• Investigate options to take fuller advantage of the opportunities offered by the ACS.

Overall, the report concludes that the ACS will significantly enhance HUD's ability to carry out many of its program and analytical functions. "The American Community Survey: Challenges and Opportunities for HUD" is available for download from the HUD USER Web site at www.huduser.gov.