housing and urban development (hud) leadership analysis research

7/30/2019 Housing and Urban Development (HUD) Leadership Analysis Research

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Leadership Analysis Paper 1

HUD (Housing &Urban Development) Leadership Anaylsis

HUD (Housing &Urban Development) Leadership AnalysisMerceda D. Gooding

Section 8 Voucher Participant &Advocate Former ACHA Commissioner

Chairman of Section 8 RAB Board Landlord Tenant Affair Board member (Former)

Created non-profit organization Greater AC HUD Tenant Coalition, Inc.


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ABSTRACT

This study examines the U.S. Housing &Urban Development leadership (HUD)and provides an analysis on how HUD could improve its strategic vision, administrativeframework, employees, civil society and the participant's relations and culture environment.HUD is a public sector organization created in 1965; the principle leadership is functioningautocratic leadership style, undiplomatic and undemocratic. Over the years there have beenmajor reforms to the US Department of Housing and Urban Development because of scandals,misappropriations of funds and distrust that have been costly and unsuccessful. The principleleadership focuses on goals of achievement and success with Congress, refusing to cooperate &collaborate with state and local offices, residents and private citizens. They continue withintangible ideals of self-preservation and self- glorification. That mentality is transcends to thestate and local HUD offices that reinforces their selfish ideals, disconnection to the privatecitizens and stakeholders with limited communication.

Even though, HUD is reinventing itself, there is major issue with effectiveleadership styles in the organization. From the prospective from the participants under theirprograms, there is a disconnection between HUD in Washington, the state and local HUDregional offices across the United States, private citizens and participants - that relates to "sacredtrust", protecting &enriching, enforcement of housing laws, segregation and refusing toadvocate for the quality oflives for those under their subsidy program.

This paper will indentify the inadequacies, distrust issues and challenges faced with theHUD's principle leadership officials and suggestions on how they can improve to transform theirleadership roles and styles in a bureaucratic environment.


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INTRODUCTIONHUD (United States Housing & Urban Development) was established as a Cabinet

Department by the Department of Housing and Urban Development Act in 1965. As theprincipal federal agency responsible for the improvement and development of America's housingand communities, HUD's programs include: providing mortgage insurance to help individualsand families become homeowners; development rehabilitation and modernization of the nation'spublic and Indian housing stock; development ofHUD-insured multifamily housing;development, improvement and revitalization of America's urban centers and neighborhoods;providing rental subsidies to lower-income families to help them obtain affordable housing, andthe enforcement of Federal Fair Housing laws (HUD, 2010).

The major players of the Housing and Urban Development (HUD):

Secretary- Shaun Donavan Deputy Secretary - Ron Simms

Assist. Secretary Community &Planning Development - Mercedes Marquez

Secretary for Policy, Development &Research - Raphael Bostic

Assistant Secretary for Congressional and Intergovernmental Relations - Deter Kovar

Assist. Secretary for Public and Indian Housing - Sandra B. Hernanquez

Assistant Secretary for Fair Housing &Equal Opportunity - John Trasvina

Acting Assistant Secretary Housing/Federal Housing Commissioner - Bob RyanGeneral Deputy Assistant Secretary for Public Affairs - Neill Me G. Coleman


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PROBLEM STATEMENT

United States Housing &Urban Development (RUD) main headquarters is located inWashington, D.C. Under the national HUD's umbrella is the regional state and local officeslocated in every state and municipality in the United States. The organization is governed byfederal legislation, federal housing laws and regulations to operate their programs, service andproducts for subsidized citizens, homeless, low and moderate income persons with affordablehousing. The organization has critical problems and complexity challenges withmismanagement, resistance to change, misuse of policies, lack of transparency andaccountability. The bureaucratic organizational structure fosters authoritarian and autocraticmanagement styles, control, hierarchical authority, and bureaucratic routines, internal andexternal conflicts that caused a lack of communication resulting in devastation relations betweenthe local, state, national RUD offices with citizens, advocacy groups and staff. "A bureaucraticorganization is an organization that can't correct its behavior by learning its erosion" (Crozier,p.187, 1964)

HUD's principle leadership lacks human skills, disconnected in communicating orinteracting with employees (local and state), private citizens and participants (meetings are heldin secrecy). This demonstrates a lack of a shared vision, emphasized on control and strictconstraints, limiting opportunities to empower individuals, discouraged risk taking &change thatcaused a low morale of uncertainty and vulnerability. This mentality of control filters down tothe residents that transcend an un-adaptive "intimidating environment". These behaviors causethe citizens, employees and participants to weaken trust in federal government institutionscausing an erosion of confidence while HUD face "good governance" challenges. "The leader'smotives affect the way he or she leads" (Spreirer et aI, 2006).


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BACKGROUND

HUD (U.S. Department Housing &Urban Development) is a public sector organizationthat is experiencing challenges of "a shared power" environment that demands effectiveleadership providing higher quality and more efficient goods and services. Over the years, HUDhas made several attempts to transform their organization; customer service, rules and policies,structure and programs with the absence of strong, developed efficient and effective leadership.This leadership analysis research paper will describe the HUD's current operations,administrative framework and indentifying their leadership performance:

Trust, values and morale Employee motivation Effective Communication (with stakeholders local &state HUD field offices) Vision and Strategies Culture environment (bureaucratic) Local and State politics (misuse of funds, self interest &abusing powers)In conclusion, this leadership analysis paper will suggest on how HUD can improve to

transform their organization with effective leadership; strategic vision, reshape values,participatory-decision making and a muscle to pursue excellent leadership that has the capacityto deliver.

HUD was created under the U.S. Housing Act in 1934 signed by President FranklinRoosevelt during the Great Depression. In 1965, under the Department of Housing &UrbanDevelopment Act, HUD has become a cabinet level agency over 8,000 employees at theirnational headquarters located in Washington, D.C. In addition, HUD has regional and localoffices located in each state and municipality all over the United States. HUD is a federal agency


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responsible for national policy and programs that address Americans housing needs, improve anddevelop communities and enforce fair housing laws. HUD business is to create a decent homeand suitable living environment for all Americans, (II) provide mortgage insurance to helpedindividuals and families to become homeowners, (Ill) develop, rehab and modernize the nation'spublic and Indian housing stock, (IV) development of HUD -insured multifamily housing (V)develop, improve and revitalize America's urban centers and neighborhoods (VI) provide rentalsubsidies to low-income families, to help them obtain affordable housing and the enforcement offederal housing laws (VII) and promote self-sufficiency programs (Section 3), training, andeducational opportunities to low-income individuals to become independent achieving theAmerican dream. HUD's current methods, plans and assessments to measure their performance:

PHAS (Public Housing Assessment System) - evaluates the PHA's (Public HousingAuthority) physical condition, financial condition, management operations, residentprogram and satisfaction. RASS (Resident Satisfaction Survey) - is a part ofPHASassessment. HUD Office of Public and Indian Housing, Real Estate Assessment Center(PIC-REAC) measures the housing agency's performance.

SEMAP (Section Eight Management Assessment Program) - measures the performanceof the PHA's administrating housing choice voucher program (Section 8 management) in14 key areas. Waiting list applicants, rent reasonable, income verification, housingquality standards, correcting housing deficiencies, housing choice voucher accessibilityother than minority or poverty concentration areas and payment standards, etc. TheSection 8 Administrative Plan -is the administration of the Section 8 Program and thefunctions and responsibilities of the Housing Authority (HA) staffmust be in compliancewith the HA's Personnel Policy and the Department of Housing and Urban


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Development's CHUD) Section 8 Regulations as well as all Federal, State and local FairHousing Laws and Regulations.

Annual and 5 year plan - The PHA Plan is a comprehensive guide to public housing

agency (pHA) policies, programs, operations, home ownership and strategies for meetinglocal housing needs and goals. (Public participation - open meetings to discuss plans).There are two parts to the PHA Plan: the 5-Year Plan, which each PHA submits to HUDonce every 5th PHA fiscal year, and the Annual Plan, which is submitted to HUD everyyear.

CDBG - Community Development Block Grant flexible community &economicdevelopment program. HUD partners with local agencies, state and local government tofund and innovate solutions to the communities with economic challenges. HUD providesgrants to cities and states to capitalize economic opportunity addressing neighborhoods ofconcentrated poverty.

HUD implemented IT reform initiatives to improve governance, increase transparencyand to create a leaner, more efficient Department.

Self -sufficiency and Section 3 programs is funded by HUD and supports residents ingaining independency.

Hope IV program- was developed as a result of recommendations by NationalCommission on Severely Distressed Public Housing, which was charged with proposinga National Action Plan to eradicate severely distressed public housing.(The Commission recommended revitalization in three general areas: physicalimprovements, management improvements, and social and community services toaddress resident needs.)


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Lastly, HUD 2020 Management Reform Plan- Is to increase accountability inHUD's programs and management reform efforts to 'restore public trust" of its staff andprograms. Scandals and mismanagement involved bad behavior where in HUD officials andlocal program participants abused public trust. HUD faces challenges consolidating andstreamlining its operations, improve accountability and control of its programs and refocus andretain staff. Congress recognized HUD failures, both internal and external, threaten HUD toreinvent or die. HUD had failed to fulfill their initial goals: (1) increasing affordable housing andhome ownership (2) reducing homelessness (3) promoting jobs and economic development (4)empowering people and communities (5) fighting for Fair Housing (6) restoring the public trust.HUD 2020 Management Reform Plan was implemented to address these challenges and makeprogress towards its goal of becoming high performing organization. Reform in areas of humancapital, the development of the a strategic planning process, enhancing its monitoring ability,improving information and financial management systems, improving contracting proceduresand creating centralized entities, specifically an enforcement authority. Over the years, the U.S.Government strives to transform HUD to be more efficient, effective and accountable. TheDepartment of Housing &Urban Development has failed to keep the pace with the changingenvironment therefore most of all HUD's programs are under reform because of scandal anddishonesty. Every new administration implements a new change to improve HUD's operations(HUD 2010).

DISCUSSIONIt is important to define leadership for the clarity and understanding for the benefit of this

leadership analysis paper. Leadership is the influence relationship among leaders and followers


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who intend real changes and outcomes that reflect their shared purposes, (Draft, 2011).Leadership is applicable to all aspects the development of teams, personal development, groups,organizations and the nation. The study of leadership involves leadership traits, behaviors, styles

and management. Leadership and management are different however they both providedirection. Management is defmed as the attainment of organizational goals in an effective andefficient manner through planning, organizing, staffmg, directing and controlling organizationalresources (Draft, 2011). Management has subordinates, authoritarian, transactional style andwork focus. A leader has followers, charisma, transformational style and people focus. Tobecome an effective leader they must possess some skills in communication, selfconfidence andvalues. In addition, these elements will help shape a leader to become effective on how toinfluence followers to achieve a vision different from the old paradigm that focus on control andstability. Burns wrote, "1 define leadership as leaders inducing followers to act for certain goalsthat represent the values and the motivations- the wants and needs, the aspirations andexpectations - of both leaders andfollowers." Burns believed that leaders must have the greatimpact on "led" they must motivate followers with such appeal of a shared vision, inspire andsatisfying high order needs.

HUD programs are federally regulated and their activities are heavily scrutinized bycongressional committees, participants, public and the President. HUD programs are underreform operations, structures, programs and systems. Transformational leadership styleinfluences the innovation and the effectiveness of the public organization supporting employeeinclusion and participation sharing the same values (Draft, 2010). HUD [however] focus moreon reforming programs (task orientated) which do not succeed without developing (people)employees; acknowledging that organizational leaders are key assets of public organization.


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"Attempts to achieve collaboration, empowerment and diversity in organizations may failbecause the beliefs and thought processes of leaders as well as employees stuck in an oldparadigm that values control, stability and homogeneity" (Draft, 2011). The key factor here is to

differentiate between leading and managing - leaders need to be constantly reminded to gobeyond management. In this context, leaders are significant power behind the progress andsuccessful development of employees and the organizational strategy. According to WarrenBens, "management is doing things right", "leadership is doing the right things".Another issue, HUD's bureaucratic organizational structures influenced authoritarianmanagement styles, hierarchical authority and rules and regulations not functioning diplomatic ordemocratic. Leaders have the most power and authority in the rules, laws and regulations toreinforce their own leadership control in society. As a public sector organization, inclusion andparticipation is important to gain trust and effective communication internal- organizational andan external ---environment perspective. This will increase efficiency and effectiveness anddecrease bureaucratic structure.

A culture of distrust promotes secrecy and increases, turnover rates and work conflictsamong employees in the organization (Reece &Brandt, 1999). Leadership plays a critical roleeffectively communicating structural and organizational reforms to employees. Jobs were lostand positions were demoted, the employees became unstable in the work environment thatcreated a culture of uncertainty and vulnerability affecting their quality of work, customerservice and trust in management. Trust in the public sector has long been recognized as aprincipal goal as well as a necessary means of effective and productive public sectormanagement" (Choudbury, 2008). It is believed that a climate of trust, empowerment andcommunication in an organization is often associated with better customer service, delivery, high


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quality performance, employee loyalty. Leaders are responsible for outcomes and they must actas coaches (Draft, 2011). When employees feel valued and respected the impact oftheir workwill bring positive outcomes in the success of the organization, stakeholders and customers.

Effective communication will foster creativity, trust, motivation and innovative employees thatwill develop a greater commitment to the organizations objectives.

Department of Housing and Urban Development is responsible for communicating withtheir employees, regional and local office across the United States, public, congress, board ofcommissioners and the President. However, the majority of communication was established byrules and distributed to senior management and then communicated to lower end employeeswithout any input or direction. HUD a public sector organization, the public and stakeholders arethe last to know or will not ever know. Effective communication will enable employees,participants and the public to participate by asking questions, listening to others, learning acrossfunctional and hierarchal boundaries. Communication is essential to building trust and gaining acommitment to the vision (Draft, 2011) Communication can be used to inspire, motivate andinfluence, defining a purpose, see a vision and direction. Leaders must understand that effectivecommunication is not about personal meetings, formal speeches or presentation; leaders mustcommunicate in words and actions, everyday. Leaders can learn to transform their followers byincreasing their awareness of (I) task importance and value (II) focus first on team ororganizational goals rather than their own interest (III) activating their high-order needs (Bass,1990).

HUD's mission and vision has changed since the process of the recent reform, HUDstates "they would like to change the way they do business" (RUD 2009). HUD's local andstate offices has yet to catch up with the changes or the development of the new vision for the


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future from HUD's national office on the behalf of program participants, organization andemployees. An effective leader will have the ability to develop and sell a vision in order to createfollowers. Everyone is perplex and confused of what HUD's mission and vision actually is plustoo many reforms, rules change rapidly, downsizing number of employees and the departmentdeclined which results to insufficient program and oversight (HUD 2009).

Integrating transformational leadership development into the organization environmentthe employees will bring a positive impact on the development of the vision, their performance,create an atmosphere of change and the improvement of the organization culture. According toBass," Transformational leadership start with the development of a vision, a view of the futurethat will excite and convert potential followers." "The vision may be developed by the leader, bythe senior team or may emerge from a broad series of discussions". This would give the majorplayers of the Housing and Urban Development the opportunity to change and develop their ownpersonal leadership skills and styles to build relationships, vision and to empower the employees."A transformational leader has to create trust and illustrate personal integrity that is a critical partof the package that they are selling; employees will buy into the vision". The significant changein the organizations culture, employee performance, and raise human conduct and aspiration willhave a transforming affect on both the leader and employees.

SOLUTIONS

HUD had been viewed by both its employees and external partners as lacking in itsability to provide or to fully support its' mission. "The bottom line is that we can't helptransform our communities if we don't transform HUD. (Shaun Donavan, HUD Secretary,2010). Over the years and presently HUD is in the process of reinventing itself to "the new waysof doing things" to increase transparency and improved service delivery. The principal staff must


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enhance their leadership capacity to lead in a public sector organization and retain a strategic roleto enable civil society and stakeholders. "Effective leadership seeks synergy of ideals to enhancedecision-making to create involvement and to ensure commitment" (Dr.Tag Mahgoub Ali,

2004). To allow civil society and stakeholders play their developmental roles in a constructivesynergetic and sustainable manner. The need to adopt the human approach in all actions; not tojust strengthen the minds of followers and appreciating their contributions; to pay attention topeople and treating them with dignity and respect. The principal staff must transform themselvesfirst improving their leadership style; display honesty, ensure participative governance andeffectively communicate with the public, stakeholders and employees. Have a high degree ofself-confidence, cope with stressful situations, improve people skills (have a love for the peoplethey serve) charismatic and focus on organization goals in fully supporting their goals (RUD'smission is to create strong, sustainable, inclusive communities and quality affordable homes forall. HOD is working to strengthen the housing market to bolster the economy and protectconsumers; meet the need for quality affordable rental homes: utilize housing as a platform forimproving quality of life; build inclusive and sustainable communities free from discrimination;and transform the way HUD does business).

HOD must ensure accountability with the HOD field state and local offices around theUnited States. HOD formulate values not just speak about them but enforce them; believe infairness and justice for everyone. " As a leader, you can act like a transformalleader by rallyingpeople around an inspiring vision, expressing optimism about the future helping followersdevelop their potential, and empowering people to make change happen"(Draft, 2011).


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RECOMMENDA nONS

As stated throughout this paper, HUD had made several attempts over the years to reformtheir programs and activities. However, after researching HUD, their transformation objectivesare repetitious in different wording. HUD recent transformation goal are just words on paper,worthless and meaningless, goals and mission statements. HUD had to endure deep cuts becauseof the economic crisis and do not have the financial resources to obtain the staffing to monitorHUD programs and activities nationally. Therefore it is impossible for HUD to follow throughwhat their FYI strategic plans (2010-2015) (as well the public housing authorities) to moveforward to reinvent themselves. "As a leader you can put ethical values in to action and set theexample you want to live by. You can resist the pressures to act unethically just to avoidcriticism or achieve short-term gains" (Draft, 2011). To be an effective leader you must have selfconfidence, integrity and values. HUD must change from the old paradigm of dishonesty,scandal, selfish and greed to the new paradigm of values, morals and integrity. This includesdecreasing the stigmatism and blame of failure of HUD programs on the low-income communityand program participants; (fabricating that residents refuse economic independence, training,jobs or the "American Dream") and hire individuals who has the compassion for the low-incomecommunity not to condemn them. In conclusion, this leadership analysis paper had viewedHUD's current leadership traits, behavior and styles that represents dishonesty and deception.HUD has not been a successful organization for several years because of scandals, hiring thewrong individuals, misappropriations and dishonesty. On paper HUD has good ideals in theirtransforming plans to improve the organizations culture, communication, employee &participants relations and performance, initiatives to regain public trust, IT and administrativeframework. However, Congress and civil society had lost trust due to the lack of sound honest


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leadership. The public do not believe they had improved their performance to service theAmerican people with affordable housing, homeownership, training and economic opportunities.


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References

Ali, Dr. T.E (2004). The Role of Public Sector Leadership Fostering Socio-Economic and

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Choudbury, E. (2008). Trust in administration: An integrative approach to optimal trust.

Administrative &Society, 40(6), 586-620.

Draft. R. (2011). The leadership experience: 2010 custom edition (5th ed.). Mason, OH.

Thomson- South - Western - Cengage Learning.

HUD Strategic Plan FY 2010-2015. Retrieved June 3, 2011 from

Bass, B. M (1985). Leadership and performance beyond expectation. New York: Free Press.

Reece, B. &Brandt, R. (1999). Effective human relations in organizations (7th Ed.). New York:

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housing and urban development (hud) leadership analysis research

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