DEPARTMENTAL PERFORMANCE REPORTING

About This Plan

The Fiscal Year (FY) 2026 Annual Performance Plan (APP) for the U.S. Department of Housing and Urban Development (HUD) provides detailed performance-related information to the President, the Congress, and the American people. This plan allows readers to identify HUD’s FY26 performance targets, relative to HUD’s priorities and stewardship of public resources. This plan consists of several important sections:

Priorities and Performance Indicators

The second section is the core of the APP and is organized by HUD’s priorities.[1] The Department’s priorities align to HUD’s FY26 Budget request and are intended to reflect the outcome or management impact the Department is trying to achieve. HUD will track each priority annually through a specific set of performance indicators. For each priority that HUD will monitor in FY26, HUD has included associated performance metrics to track our progress. 

Performance indicators have targets and are how HUD will track its progress. For some performance indicators, HUD is still gathering data to establish baselines and preparing to set targets in future years. These metrics are indicated with the phrase “TBD” in the tables. A third category of indicators, marked as “Tracking Only,” provide information about program operations or external conditions but will not have targets. For these indicators, targets would be difficult to establish, would not provide meaningful indications of agency performance expectations, or could create unintended incentives for program staff and our partners. 

Cross-Agency Priority (CAP) Goals,[2] Strategic Goals, Strategic Objectives, & Agency Priority Goals (APGs)

HUD is currently in the process of developing new strategic goals, strategic objectives, and APGs to align with the strategic priorities highlighted in the FY26 Budget. Alignment to Cross-Agency Priority Goals will be defined once the President’s Management Agenda is published.

Please refer to https://www.performance.gov/ for the Department’s contributions and progress towards the CAP Goals, where applicable.

Major Management Priorities and Challenges

Major management priorities and challenges are addressed by HUD’s Strategic Priorities. For information on the management priorities and challenges HUD will be pursuing, please reference HUD’s Strategic Priority summaries in Section Two of this document.

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DEPARTMENTAL PRIORITIES AND PERFORMANCE INDICATORS

PRIORITY 1: Reduce Barriers to Affordable Housing.

Overview

HUD is committed to working closely with Federal, state, Tribal, and local partners to identify and eliminate barriers to the creation and availability of affordable housing. HUD will deliver better outcomes for communities by collaborating with stakeholders across all levels of government. The Department will streamline programs, remove overly burdensome regulations, and encourage local control. HUD will also increase homeownership opportunities by reducing burdensome and unnecessary Federal Housing Administration (FHA) requirements that result in higher costs for borrowers. Increases in homeownership will be furthered by expanded access to affordable housing options such as manufactured homes and partnerships with local organizations to develop individuals’ capacities to make sound homeownership decisions. In sum, HUD will drive nationwide efforts to make homeownership more affordable, sustainable, and fair for all Americans.

Paired with reducing obstacles to homeownership is HUD’s commitment to enabling access to affordable rental housing. The Department will develop a comprehensive strategy to improve the efficiency of its rental assistance programs by addressing current and future needs. The modernization of housing information systems will ensure these needs are met by improving the timeliness and accuracy of HUD data. Additionally, the Department intends to shift toward state-based rental assistance grants and further encourage work and self-sufficiency among households receiving rental assistance. 

Key Performance Indicators

To help achieve this priority, HUD has established the following performance indicators:

• Deregulatory Actions Issued.

  This measure will track how many cost-saving deregulatory actions, as defined by EO 14192 and M-25-20, HUD issues each fiscal year.

• Income From Wages in Work-able Households.

  This metric measures the percentage of work-able households that reported any wage income.

Evidence

In many communities across the country, housing is not affordable for low- and middle-income families, either to rent or own. As of 2023, 22.6 million renting households spent more than 30 percent of their income on housing costs, including 12.1 million whose housing costs exceed 50 percent of their income.[3] HUD assisted tenants have their rent set largely based on their income. According to HUD data, the average household receiving HUD rental assistance has received assistance for about 10 years.[4] This includes households headed by an elderly person or person with disabilities, who comprise about two-thirds of all HUD-assisted renter households, as well as work-able households. HUD policies regarding self-sufficiency, employment, and rent calculations have the potential to increase employment and reduce lengths of stay among assisted work-able households. HUD’s Office of Policy Development and Research has supported a wide variety of research exploring these topics.[5] HUD is currently conducting a study of a cohort of Moving to Work (MTW) PHAs implementing stepped and tiered rent structures meant to both encourage work and to simplify operations for agency staff. The interim findings from this study are expected in fiscal year 2026.[6] Also in fiscal year 2026, HUD plans to undertake research on the marriage penalty – circumstances in which members of a household would end up becoming ineligible for assistance or paying more in rent as a married couple than they would individually – in means tested rental assistance. 

Homeownership has also become more costly and buying a home is now out of reach for many families. Homeowners are increasingly spending more than 30 percent of their incomes on housing costs,[7] reflecting a shortage of affordable supply in many markets and increased demand. Overly burdensome federal, state, and local regulations, particularly in markets where demand and cost burdens are highest, significantly contribute to supply shortages.[8] Beyond trends in supply at a market level, household formation trends are key indicators of whether a given household will be housing cost burdened. For example, people living alone have the highest rate of burden among homeowners, followed by single-parent homeowners with children under 18.[9] In addition to high purchase prices and interest rates, non-mortgage costs such as insurance, property taxes, and maintenance costs have contributed to the recent growth in homeowner cost burdens. FHA-insured mortgages play a key role in increasing affordability for homebuyers, particularly those buyers who do not have enough savings to make a large down payment. 
 

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PRIORITY 2: Reduce Homelessness.

Overview

The homelessness crisis continues to impact millions across the United States, with families with children, veterans, Tribal Nations, and youth facing some of the greatest challenges. Several longstanding factors have contributed to this crisis, including an affordable housing shortage, high inflation, and stagnant wages for middle- and lower-income households. In addition, natural disasters have displaced millions of individuals, further stretching an already overwhelmed system. Compounding these issues are the prevalence of substance use disorders, untreated mental health conditions, and crime—each of which can create instability and increase the risk of homelessness, particularly in communities with limited access to support services.

Despite these challenges, we can help every American find and maintain stable housing. To make significant progress toward ending homelessness, HUD and its partners must be committed to not only addressing the immediate needs of families and individuals but also creating sustainable solutions tailored to the unique needs of communities. This requires identifying local best practices and determining how the Federal government can most effectively target its homelessness assistance resources to provide targeted support and prevent homelessness through proactive measures. To effectively address homelessness, the strategy must go beyond housing alone and promote comprehensive reforms, including expanded access to wraparound services such as substance use treatment and mental health care, including support for individuals impacted by crime. 

HUD will focus on transitional and emergency housing supply strategies—emphasizing the removal of burdensome regulations that restrict affordable housing development. The updated Emergency Solutions Grant (ESG) program will provide emergency, short- and medium-term assistance in the communities with the highest need, helping individuals get off the streets and back on their feet. Emphasis will be on supporting states and local governments in partnering with the private sector to expand housing availability. Fostering strong partnerships between Federal agencies, local governments, Tribes, and community organizations are essential to establishing a coordinated and effective response. This approach will bring us closer to the goal of ending homelessness for all.

Key Performance Indicators

To help achieve this priority, HUD has established the following performance indicators:

• Number of people experiencing unsheltered homelessness.

  This measure will annually track the number of people experiencing unsheltered homelessness in the PIT count, a count taken on a single night in January each year.

   

• Percent of Emergency Solutions Grant (ESG) dollars dedicated to homeless prevention activities. 

  This measure will track the percentage of ESG funds that are committed to homeless prevention activities. 

• Percent of Emergency Solutions Grant (ESG) dollars dedicated to street outreach.[14] 

  This measure will track the percentage of ESG funds that are committed to street outreach. 

Evidence

HUD’s research helps form the backbone of the evidence supporting efforts to prevent and end homelessness. For the past 15 years the Annual Homelessness Assessment (AHAR) Report to Congress has provided nationwide estimates of homelessness, including information about the demographic characteristics of persons experiencing homelessness, service use patterns, and the capacity to house persons experiencing homelessness. The report is based on HMIS data, point-in-time counts, and data about the inventory of shelter and housing available in a community. HUD’s 2024 Annual Homelessness Assessment Report found the number of people experiencing homelessness on a single night in 2024 was the highest ever recorded. A total of 771,480 people experienced homelessness in 2024, an 18 percent increase from 2023. Homelessness increased among all population groups except for veterans and grew in urban, suburban, and rural communities. Veterans were the only population to experience declines in homelessness, continuing a downward trend that began in 2009.

PD&R is currently conducting a study of the long-term outcomes of participants in the Family Options Study, a groundbreaking research effort looking at families experiencing homelessness who were randomly assigned to receive one of four interventions: rapid re-housing, project-based transitional housing, subsidy only, or usual care in 2010. The follow-up study, expected in 2025, will provide valuable additional information on outcomes for the study families, such as homelessness and doubling up, housing quality, family separations and reunifications, child and adult well-being, employment and income, and food security. Additionally, HUD is undertaking research on housing insecurity, or the lack of stable occupancy of a decent, safe, and affordable housing unit. Historically, there has been no agreed upon definition of housing insecurity or how to measure it, unlike other constructs such as food insecurity. HUD developed a Housing Insecurity Research Module for the 2019 American Housing Survey and is using that data to further develop a standardized set of questions to measure the continuum of housing insecurity. In 2023, PD&R published its first report towards that goal and research is ongoing. In FY2026, HUD intends to undertake a study of community responses to unsheltered and rural homelessness, focusing on implementation of emergency, short-term, and medium-term assistance models, such as homelessness prevention, rapid re-housing, and outreach that connects people to supportive services, and on effective partnerships between state and local governments, and community organizations. 
 

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PRIORITY 3: Protect Taxpayer Funds.

Overview

HUD will achieve Departmental efficiencies to increase productivity and protect taxpayer funds against waste, fraud, and abuse. The Department will increase accountability and transparency by refining and enhancing its current financial management procedures to streamline the execution of HUD grant and financial assistance programs. This will improve Departmental stewardship of taxpayer dollars by analyzing the complete flow of Federal funds, including those executed by HUD partners. Efforts will be driven by commitments from senior Departmental leadership; clear, concise operational planning; and a focus on the needs of end-customers. In addition, HUD will focus on effective internal controls to meet reporting requirements and align with Administration priorities.

Central to these Departmental efforts will be the CFO-chaired HUD Efficiency Taskforce.18 Project management offices beneath the steering committee will execute Department-wide efforts to achieve the Administration’s priorities. The Taskforce will establish a governance environment to promote accountability, performance reporting, and stakeholder engagement across HUD. The Taskforce will reinforce a culture of accountability in the delivery of sustainable, efficient processes that increase productivity while protecting taxpayer funds against waste, fraud, and abuse. 

Key Performance Indicators

To help achieve this priority, HUD has established the following performance indicators:

• Number of Programs Transitioned to a Modern Grants Management System.

  Modernize the management of HUD grant programs by migrating all grant programs to a Department-wide system that supports grants through the entire grants lifecycle. 

• Decommission Legacy Financial and Grants Management Systems.

  Modernize the management of HUD grant programs by migrating all grant programs to a Department-wide system that supports grants through the entire grants lifecycle.

Evidence

HUD relies on many sources of evidence to develop its plans and programs focused on protecting taxpayer funds. One key source is the “Top Management Challenges Facing the U.S. Department of Housing and Urban Development in 2025” report, an annual publication by HUD’s Office of Inspector General (OIG).  Two of the eight FY 2025 top management challenges were identified as Grants Management and Managing Fraud Risk and Improper Payments.

The “Top Management Challenges” Report identifies strengths and weaknesses in HUD’s grants management. The Report has found HUD’s support for its grantees, and subgrantees, has improved through provision of additional training tools, guidance, transparency, and flexibility. Challenges, however, do remain. The Report recommends HUD improve in the areas of (1) developing reliable and complete financial and performance information systems, (2) strengthening subrecipient monitoring, and (3) improving the timeliness in spending grant funds and executing grant programs. 

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PRIORITY 4: Streamline Business Processes.

Overview

HUD is undergoing a strategic restructuring of its information technology (IT) and business processes to optimize the efficiency and effectiveness of the Department’s execution of its mission. The Department provides many crucial services to our nation and employs highly motivated people who want their work to have the greatest impact possible. Yet, employees are currently limited in their capacity to carry out HUD’s mission in an efficient way due to outdated technology, burdensome regulations, and manual processes. This restructuring initiative will streamline HUD’s business processes by eliminating repetitive workstreams, upgrading technology, and strengthening internal operations. 

To meet the needs of customers, HUD will make it simpler and easier to access and use its services by modernizing its technology and business processes. This includes the cost-saving streamlining of HUD websites, web pages, web applications, digital documents, and service delivery processes to measurably improve customers’ experiences. To accompany these efforts, HUD will measure the value and cost of any newly proposed process to ensure the best use of staff time, effort, and resources. In sum, Departmental efforts to streamline HUD business processes will greatly improve overall workforce efficiency, transparency, and accountability.

Key Performance Indicators

To help achieve this priority, HUD has established the following performance indicators:

• HUD Processes Streamlined by IT Modernization.

  This measure will track the number of HUD processes that have been automated, improved, or replaced through the implementation of IT modernization techniques. 

• HUD Website Consolidation and Digital Experience Modernization.

  These metrics will track digital experience efficiency and effectiveness as the Department consolidates and modernizes websites and web applications for customers. 

Evidence

HUD is focused on delivering trusted programs and services more effectively. Evidence from America’s Customer Satisfaction Index suggests there is substantial need for improvement. The American Customer Satisfaction Index (ACSI) estimates of customer satisfaction are generated by econometric modeling of survey data. Customer expectations and perceptions of the quality of government services are used as inputs (with expectations mediated by perceived quality). Outputs are generated from complaints and citizen trust in government. The most recent data from the ACSI found the mean government score had improved by 4.8 points from the record low level of citizen satisfaction captured during the pandemic to reach 68.2. Drivers of customer satisfaction with the government included efficiency of processes, clarity and accessibility of information, website quality, and customer service. HUD continues to achieve and develop new milestones in each of these areas to meet the needs of all its customers.