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Executive Summary

This report is providing a detailed analysis for The Department of Housing and Urban Development. During the analysis there are many areas that will be reviewed such as mission, vision, and values, strategy clarification, and cultural assessment Another area that will be reviewed and evaluated will be the value chain analysis and a summary of the findings will be provided. Other methods of this analysis will include identifying the most important strategic issues that are facing The Department of Housing and Urban Development. A SWOT Analysis and Balanced Scorecard will also be completed throughout this report as results of the information that is going to be analyzed will show that HUD is not below the industry standard, but needs help to remain current. In comparison with many industry leaders HUD lack in the areas of property value, holding cost, agent incentives, property repairs, and non-performing contractors. This report will find that HUD in its current position are not all positive. The areas that ate mention are considered weak and causing the department to lose the maximum amount of profit that can be gained from the sale of each property. Recommendations would include adjusting the time in inventory for each property, increasing selling broker commission to industry levels of at least three percent, allowing a dollar amount to be given for repairs if the property sells overs hundred thousand dollars, and allow HUD employees to cancel contracts for contractors that are not performing according to HUD standards. The report will also investigate that there are some limitations that could potentially hinder the analysis such as detail of past performance for each HUD contractor might not be available, and accurate numbers might not be available for HUD staff to determine if additional funds and be given for repairs.

Table of Content

Executive Summary:

Introduction-

Mission, Vision, and Value Assessments

Strategy Clarification

Cultural Assessments

Value Chain Analysis

Summary of Key Findings

SWOT Analysis

Balanced Strategic Scorecard

References

Introduction

During week four student were required to completed an internal environmental scan along with an organizational assessment for the organization that has been used throughout the course. The agency that was used is The Department of Housing and Urban Development which is located in the Atlanta, Georgia. This agency deals with all facets of real estate such as single family, multi-family, and public housing. During this week’s assignment student were asked to completed three parts which included an internal environmental scan, part two was the company SWOT Analysis, and part three balanced strategic scorecard. The report will be wrapped up with a conclusion with all major points.

Internal Environmental Scan/Part One

Mission, Vision, and Value

HUD has a very simple mission which includes but not limited to creating strong, sustainable, inclusive communities. HUD also wants these communities to be have affordable homes for all. One of the main goals of HUD is to strengthen the housing market in all states and communities along with boosting the economy while protecting consumers from scammers. While the hard work is being done, HUD would like to created affordable rental properties for consumers are not ready to purchase a home. Another goal would be to utilize their housing platform to help improve quality of life and build inclusive communities free from discrimination. HUD makes sure that all the pricing of the homes is affordable to all people. HUD wants to make sure they create programs that will keep people in their homes and create a better way of life. The Department wants to make sure that is provides good quality housing for all people. This is definitely something that HUD provides with another of housing programs for people of economic backgrounds. Starting with financing options that allow customer to only put $100 down to purchase a single family dwelling, to providing housing choice vouchers homeless veterans who have mental and physical handicaps. The products of HUD solve the number one problem of every person in the world and that is housing. There are currently seventeen programs areas within the HUD and they rand from single/ multi-family housing, public housing which includes section and project housing, HUD provides funding to housing entities to reduce the rent for occupants in certain areas in each US city. Other great housing programs of HUD include Indian housing and elderly housing which HUD provides funding to elderly facilities to offer affordable housing for the elderly who may be on low fixed incomes.

Strategy Clarification

This interview was conducted with one of the Branch Chiefs employed with the Single Family Housing Division named Danielle Lewis. Based on the interview with the manager, she disclosed that the product portfolio were single family properties that have been through the foreclosure process after a borrower defaulted on an FHA loan. Lenders that well FHA loans have an insurance that comes with the mortgage. Once a borrower defaults on a loan, the lender has the option of filing a claim with HUD to re-coup what was loss. Sometimes the bank will keep the property and sell it themselves if it in good condition. Danielle stated the target market for these properties are owner occupants, even though investors can purchase the properties as well. The manager went on to state that because HUD properties are usually sold below the market rate it is usually appealing to the customer because they will have some equity that is present in the home after its purchase. The main needs of the customer that are not met is the amount of money HUD pays for closing cost. Most of the customers do not have a lot of money to pay the closing fees and HUD is only willing to pay three percent of the closing fees. Also, HUD doesn’t complete repairs on the properties, so some customers are lost because they are not able to obtain a loan on HUD properties that need extensive repairs. Based on the interview Danielle believes that HUD has competitive advantage because the agency offers programs that no other agency has such a Good Neighbor Next Door which provides housing at a fifty percent discount to members of the police force, teachers, and EMT. This is just one program that allows everyday working families to purchase an affordable home. HUD also has a larger inventory which allows for more choices for customer.