Streamlined Inspection Processes, Comprehensive Integrated Assessments

REAC: Restoring the Public Trust in HUD

The Client

Created as part of President Lyndon B. Johnson’s War on Poverty, HUD was established as a Cabinet Department by the Department of Housing and Urban Development Act in 1965. HUD is the Federal agency responsible for national policy and programs that address America’s housing needs, improve and develop Nation’s communities, and enforce housing laws. HUD’s business is helping create a decent home and suitable environment for all Americans. HUD has a record of accomplishments. Thousands of communities and tens of millions of Americans have benefited from HUD’s multiple housing and development programs.

The Challenge

In 1997, the U.S. Department of Housing and Urban Development faced a mandate to downsize while, at the same time, improving services. A primary tenet of their improvement plan included consolidation of inspections and financial reporting. Former Secretary Cuomo looked to BearingPoint’s Public Sector practice for support in establishing the Real Estate Assessment Center (REAC).

The Solution

BearingPoint formulated and recommended a new approach to physical inspections of HUD properties. Teaming with the construction firm of Parsons Brinkerhoff, BearingPoint delivered its first prototype of inspection software within three months of the Version I Physical Assessment Sub-System (PASS). By March 1998, HUD inspectors were using PASS and hand-held, pen-based computers to inspect more than 500 condition points at properties in the Washington D.C. area.

The Benefits

BearingPoint professionals?skills and experience helped REAC to create a sound and progressive management plan as well as ensuring successful implementation.

The establishment of clear metrics enabled BearingPoint and the State to track and measure 3^rd party vendor deliverables. "We were almost two years behind on financial data because it was all paper oriented and had to be keyed in. And there was no process, even after the data was keyed in - it was neither effective or efficient," remarked Burkhalter.

BearingPoint continues to work closely with REAC to prepare for and ensure the ongoing improvement of HUD housing. Currently in the works, BearingPoint is assisting with the development of an inventory system in which buildings will be bar-coded to allow HUD to verify that reported inspection applies to the correct building. Additionally, BearingPoint has been instrumental in performing the statistical modeling that allows HUD to integrate financial and physical inspection data for risk assessments.

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