Remarks by:Jan Shadburn
Acting Administrator
Rural Housing Service, USDA
Washington, D.C.
Today’s session is for us to listen to you. We’re expecting to come away with some guidance and suggestions on how we can look at the preservation and asset management issues.
I’d like to reiterate how much I appreciate the great work that has come out of these Stakeholder Meetings since October 30 of last year. The information you’ve provided has been a great asset to the Agency. As we move down with the 515 program and the other programs in Rural Rental Housing, it is a partnership. There are a lot of people, inside and outside of this room, interested in the program. What we have to do is make those adjustments to make the program strong and ensure that the projects we have on the books are viable projects; that we make sure the cost of the program is adjusted in any way we can to make sure we provide affordable housing in rural America.
As far as the Reforms are concerned, I can’t say enough about Chuck Wehrwein and his staff and the great work that they have done. We are in the final leg of the clearance process and, hopefully, in the next week to ten days, we should have the Reforms through the clearance process. We have had tremendous cooperation and support from everyone; it has certainly been a team approach.
We were up on the Hill at Senate appropriations hearings on Tuesday; the focuses are on the cost, the Rental Assistance, and trying to make sure everyone understands the HUD Section 8/515 issue. There is competition for dollars on the Hill; there is also competition for dollars within USDA -- Rural Development is not the only Agency in USDA.
Reinvention of Government
I think the Rural Housing Service has done all of the things we’re talking about — the Reinvention of Government, the downsizing, and restructuring. We are going through in every program, some sort of major Reinvention. The downsizing and restructuring at the Rural Housing Service is now, and will be in the future, impacting us in such a way that we have lost trained and experienced staff; at the same time, we are moving around how we deliver our programs in the field. Our focus has to be to tweak the program and make some adjustments. In the delivery and implementation of the program, and looking at the portfolio management side, we have to have trained and experienced staff in the field — those staff you deal with — so that we get consistency and, at the same time, that we have the resources to implement what I consider to be the most difficult and complex program that the Agency has. We want to give consistency and good customer service. We are committed to that.
In the Section 538 program, there are issues with the passage in the Senate that we are talking to the Hill about. The main thing we are trying to make sure is that it does not substitute for the 515 program — 538 is another tool to provide affordable housing in rural America. At the same time, we need reauthorization of the 515 program; we are focused on that.
As we have scarce dollars — there are two things we have to do: to make sure that we preserve the projects that are in the program now (we’ve got to find ways to keep Stakeholders involved in our program); and, at the same time, how do we take care of the assets we have? My thrust is on the portfolio management side: how do we minimize our problems in the future? It has worked in the private sector; we brought over the Project Classification system that will let us identify problems while they are small. It will take less money and fewer resources to resolve problems if we are looking down the road. That’s the focus.
Automation
At the same time, we are putting ourselves in the position to automate. The information that is already being developed in the field won’t have to be done by paper, which slows us down and takes more resources. We’ll be able to transmit this information by automation.
I think that with your support and input, that the main thing is to make the 515 Rural Rental Housing program strong, and that the Hill will see we are taking the steps to do the things that improve the program. The main thing is to restore funding.
Our staff is committed. The Under Secretary’s office is committed to working with you as a partner. Hopefully, as we move down the road, the 515 program will remain strong and we’ll be able to serve rural America with the affordable housing that is needed in rural communities.