The Department's management and the OIG have worked in a close, collaborative manner during the past year, recognizing the challenges facing the Department and the country. Management's comments and updates concerning the department's progress in addressing each challenge are detailed below.

Single Family Programs

Federal Housing Administration (FHA)

FHA has identified the major drivers that have kept us from attaining the 2 percent capital target.  We have developed a plan to address those factors and accelerate the return of the MMI fund to the 2 percent capital ratio level.  FHA remains vigilant in monitoring housing market conditions and FHA portfolio performance.  FHA has been extremely pro-active in addressing credit risk in all of its dimensions, including raising premium rates to handle mounting expected losses on legacy books of business.  Read more...

Oversight of American Recovery and Reinvestment Act Funds

Community Development Block Grants-Recovery Act Funds (CDBG-R)

Oversight of ARRA programs and how Program Offices will ensure that funds not obligated, will be returned to Treasury by December 31, 2012.

  • For CDBG-R ($1B)
    • Virtually all CDBG-R program funds were obligated in 2009.  Read more...

Human Capital Management

The Office of the Chief Human Capital Officer (OCHCO) has improved the salaries and expenses budget development with better estimations, more collaboration and communication, and fewer lapsed funds. 

Financial Management Systems

Although the FHA Information System Transformation project was not fully funded, the project was able to acquire and deploy the Federal Financial Services Infrastructure Platform; Risk & Fraud Assessment Tools; and the development of a modern Lender Approval and Recertification Process. The modernized infrastructure platform has been deployed and provides new IT products coupled with modernized business practices that have strengthened FHA's capacity to respond to changing market conditions and legislative mandates in a timely manner.  Program and system modernization efforts will continue dependent upon the availability of future IT funds.  Read More...

Public And Assisted Housing Program Administration

Housing Choice Voucher Program Monitoring (HCV)

With respect to the challenges HUD faces in monitoring the Housing Choice Voucher (HCV) Program, until the Next Generation Management System (NGMS) and Portfolio Management Tool are implemented, PIH plans to conduct remote verification of Section 8 Management Assessment Program (SEMAP) self certified indicators until such time that a comprehensive assessment system can be completed through the implementation of NGMS.  Read more...

Administering Programs Directed Toward Victims of Natural Disaster

To ensure adequate oversight and management of HUD's significant portfolio of Community Development Block Grant disaster recovery funds ($30B), the Department has undertaken the following steps in FY 2012:

  • Revised the risk CDBG-DR analysis to include the entire CDBG-DR portfolio.   Read more...