HUD's Fiscal Year 2002 Annual Performance Plan

HUD's Fiscal Year 2002 Annual Performance Plan (APP) provides an overview of the Department's goals and programs, including the new initiatives of Secretary Mel Martinez. The APP, a requirement of the Government Performance Results Act, provides performance measurement goals for virtually every HUD program, including means and strategies for accomplishing these goals. Building on the FY 2001 APP in HUD's recent Strategic Plan, this year's plan includes new homeownership initiatives, a new strategic objective to promote independent living for the elderly and persons with disabilities, and more information on HUD's strategies to improve program management and delivery.

Expanding Homeownership

HUD's overall homeownership strategy for 2002 is to apply public-sector dollars, through mortgage insurance, grants, loans, or direct subsidies, to leverage private market assistance that enables low- and moderate-income Americans to buy and keep their own homes. To increase homeownership rates, especially among minority and low-income families and in central cities, HUD proposes several initiatives, including:

• The American Dream Downpayment Fund.
• Expanded use of Section 8 vouchers for homeownership.
• A $1.7 billion tax credit for developers of affordable single-family housing.
• Hybrid adjustable rate mortgage.

Maximum Independence for the Elderly and Persons With Disabilities

This new strategic objective reflects HUD's commitment to help the growing population of elderly Americans and persons with disabilities to live independently. HUD's comprehensive approach begins with simple physical modifications for independent living and adds support services as needed, including complete healthcare assistance. The following APP budget and policy recommendations support this objective:

• $20 million as a set-aside within the Community Development Block Grant account for the Improving Access Initiative.
• $277 million for the Housing Opportunities for Persons With AIDS program, an increase of $20 million over FY 2001 levels.
• Expand eligibility for the Assisted Living Conversion Program.
• Allow nonprofit sponsors of Section 202 and Section 811 developments to form limited partnerships with for-profit entities to compete for low-income housing tax credits.
• Implement the Pilot Program for Section 8 Homeownership Assistance for Disabled Families.

Enhancing HUD Program Management and Delivery

Although the Government Accounting Office no longer lists HUD as a "high-risk" agency, addressing the Department's longstanding management challenges is a top Secretarial priority for FY 2002. Among the initiatives to address these concerns are: FHA Fraud Reduction and Improved Program Controls; improve income and rent determinations to reduce subsidy overpayments; and improve expenditure rates for Section 8 vouchers, the Section 202 program, Community Development Block Grant, and the Public Housing Capital Fund.

The APP also describes the Department's goals of affordable housing in the areas of fair housing and community development.

The Fiscal Year 2002 Annual Performance Plan is available free from HUD USER. Use the order form.