Securing the Cities Improvement Act

— 513 — Department of Housing and Urban Development ENDNOTES 1. At a 1998 Senate hearing, then-HUD Secretary Andrew Cuomo acknowledged that the department “faced a competence gap” and had “the dubious distinction of being the only federal agency designated as ‘high risk’ by the General Accounting [now Government Accountability] Office (GAO),” even referencing the Section 8 rental subsidy as “on the brink of becoming the next savings and loan scandal,” and explained how the department was stepping up enforcement efforts “focused on closing the competence gap by eliminating waste, fraud, and abuse.” See “Testimony of Secretary Andrew Cuomo before the House Appropriations Subcommittee on VA, HUD, and Independent Agencies,” March 25, 1998, https://archives.hud.gov/ testimony/1998/tst32598.cfm (accessed March 4, 2023). 2. H.R. 7984, Housing and Urban Development Act of 1965, Public Law No. 89-117, 89th Congress, August 10, 1965, https://www.congress.gov/89/statute/STATUTE-79/STATUTE-79-Pg451.pdf (accessed March 4, 2023). 3. U.S. Department of Housing and Urban Development, 2023 Budget in Brief, pp. 2 and 7, https://www.hud.gov/ sites/dfiles/CFO/documents/2023_BudgetInBriefFINAL.pdf (accessed March 4, 2023). 4. For example, the Special Applications Center (SAC) located in Chicago, Illinois, was established in 1998 as a division of the Office of Public and Indian Housing to accept, review, and approve all nonfunded, noncompetitive applications and plans for demolition, disposition, and conversion of land subject to an annual contributions contract (ACC) in public housing. 5. The Secretary has delegated full authority for the Administration and enforcement of the Fair Housing Act to the Assistant Secretary of the Office of Fair Housing and Equal Opportunity but also has delegated limited assignment and decision-making authority to the General Counsel. 6. Effectively the HUD Chief Operating Officer and appointed by the President with Senate advice and consent. 7. The Office of Hearings and Appeals (OHA) is an independent adjudicatory office within the Office of the Secretary. Led by a Director who is appointed by the Secretary, it supervises the Administrative Judges of the Office of Appeals, the administrative law judges of the Office of Administrative Law Judges, and the OHA support staff. The HUD Secretary appoints administrative judges and administrative law judges in accordance with the Administrative Procedure Act, 5 U.S.C. Chapter 5, https://www.law.cornell.edu/uscode/text/5/part-I/ chapter-5 (accessed March 4, 2023). 8. HUD currently has a Departmental Equity Assessment Working Group, supported with five FTEs funded by the OSDBU, “as part of the President’s Executive Order 13985, Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.” See U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, p. 35-15, https://www.hud.gov/sites/ dfiles/CFO/documents/2023HUDCongressionalJustificationsFINALelectronicversion.pdf (accessed March 4, 2023), and President Joseph R. Biden Jr., Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,” January 20, 2021, in Federal Register, Vol. 86, No. 14 (January 25, 2021), pp. 7009–7013, https://www.govinfo.gov/content/pkg/FR-2021-01-25/pdf/2021- 01753.pdf (accessed March 4, 2023). 9. Interestingly, “[t]he 2023 President’s Budget requests $748 thousand for CFBNP, which is $436 thousand less than the 2022 Annualized CR level. The Budget reflects total funding (carryover and new authority) of $1.2 million, $448 thousand less than 2022 total funding.” U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, p. 35-16. 10. See H.R. 558, Stewart B. McKinney Homeless Assistance Act, Public Law No. 100-77, 100th Congress, July 22, 1987, https://www.govinfo.gov/content/pkg/STATUTE-101/pdf/STATUTE-101-Pg482.pdf (accessed March 5, 2023). Later renamed the McKinney–Vento Homeless Assistance Act. 11. Established under the Housing and Community Development Act of 1974, 42 U.S.C. §§ 5301 et seq., https:// www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). 12. S. 566, Cranston–Gonzalez National Affordable Housing Act, Public Law No. 101-625, 101st Congress, November 28, 1990, Title II, https://www.congress.gov/101/statute/STATUTE-104/STATUTE-104-Pg4079.pdf (accessed March 5, 2023). 13. S. 1, Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law No. 91-646, 91st Congress, January 2, 1971, https://www.congress.gov/91/statute/STATUTE-84/STATUTE-84-Pg1894.pdf (accessed March 4, 2023). “The URA establishes the minimum Federal requirements for the acquisition of real property for Federally-funded programs and projects, and for the relocation of persons who must move from — 514 — Mandate for Leadership: The Conservative Promise their homes, businesses, or farms as a direct result of acquisition, rehabilitation, or demolition for a Federally- funded program or project.” U.S. Department of Housing and Urban Development, HUD Exchange, “49 CFR Part 24–URA Regulations,” published February 2005, https://www.hudexchange.info/resource/804/ura-and- real-property-acquisition-policies-act-49-cfr-part-24/ (accessed March 4, 2023). HUD is one of the 18 federal departments and agencies that “are subject to the Uniform Act.” U.S. Department of Transportation, Federal Highway Administration, “Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs,” Federal Register, Vol. 84, No. 243 (December 18, 2019), pp. 69466–69521, esp. p. 69484, https://www.govinfo.gov/content/pkg/FR-2019-12-18/pdf/2019-25558.pdf (accessed March 4, 2023). 14. H.R. 3219, Native American Housing Assistance and Self-Determination Act of 1996, Public Law No. 104-330, 104th Congress, October 26, 1996, https://www.congress.gov/104/plaws/publ330/PLAW-104publ330.pdf (accessed March 4, 2023). 15. U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, p. 6-1. The U.S. Housing Act of 1937 (Wagner–Steagall Act) established the origins of locally chartered housing agencies that administer federal funding for various rental assistance programs—a quintessentially progressive New Deal–era policy that expanded the administrative state’s powers to the housing market—with the primary legislative intent of eradicating slum housing in urban areas, boosting jobs, and providing housing for the working poor. 42 U.S.C. §§ 1437 et seq., https://www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). A decade later, the Housing Act of 1949 codified federal standards for housing livability—a rationale that HUD and federal legislators have continued to use to justify federal intervention in housing—establishing as a national policy objective the provision of a minimum standard of housing quality for all Americans. This legislation also statutorily established many of the rural housing programs that are administered at USDA and expanded programs facilitating the removal of slum housing in urban areas. 42 U.S.C. §§ 1441 et seq., https:// www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). 16. U.S. Department of Housing and Urban Development, 2023 Congressional Justifications, pp. 1-2 and 2-2. 17. The National Housing Act of 1934 established the FHA and the statutory authority for the secondary market. The main stated premise was to stimulate jobs and facilitate the housing and construction sector during the Great Depression. 42 U.S.C. §§ 1701 et seq., https://www.law.cornell.edu/uscode/text/12 (accessed March 4, 2023). 18. 42 U.S.C. §§ 2000d et seq., https://www.law.cornell.edu/uscode/text/42 (accessed March 4, 2023). 19. 29 U.S.C. §§ 701 et seq., https://www.law.cornell.edu/uscode/text/29 (accessed March 4, 2023). 20. HUD’s Departmental Enforcement Center (DEC) is led by a Director. It was established in 1998 as part of a broader effort to streamline and consolidate functions at HUD and was later merged with the Office of General Counsel. The DEC “is comprised of the Office of the Director, the Compliance Division, the Operations Division and five Satellite Offices” and describes its mission as “assuring the highest standards of ethics, management and accountability in the resolution of HUD's troubled properties.” U.S. Department of Housing and Urban Development, Departmental Enforcement Center, “Program Offices: Departmental Enforcement Center,” https://www.hud.gov/program_offices/enforcement (accessed March 4, 2023). 21. H.R. 5334, Housing and Community Development Act of 1992, Public Law No. 102-1017, 102nd Congress, October 28, 1992, Title X, https://www.congress.gov/102/statute/STATUTE-106/STATUTE-106-Pg3672.pdf (accessed March 4, 2023). 22. H.R. 8588, Inspector General Act of 1978, Public Law No. 95-452, 95th Congress, October 12, 1978, https://www. congress.gov/95/statute/STATUTE-92/STATUTE-92-Pg1101.pdf (accessed March 4, 2023). 23. Guiding questions: What immediate administrative reforms of HUD and its programs can be made with high probability of success? What short-term legislative reforms can be proposed that, in tandem with administrative reforms, would achieve the HUD vision/mission objective? What HUD offices should be eliminated and/or realigned to reduce any redundancy that may persist in programmatic functions? 24. Wholly aside from reforms that would require legislation, the next Administration must ensure that key political appointees are able to acquit themselves as change agents to execute administrative reforms. Otherwise, whether because of a sheer lack of skill and expertise or simply a lack of will and philosophical alignment with reforms, staff may frustrate the efforts of committed political appointee staff and leadership to execute substantive administrative reforms. To achieve the policy and regulatory reforms outlined in this chapter, political appointees must be carefully placed in positions that reflect not only technical, market/ industry, and operational expertise, but also a shared will and commitment.

— 218 — Mandate for Leadership: The Conservative Promise NATIONAL COUNTERINTELLIGENCE AND SECURITY CENTER (NCSC) The Senate Select Committee on Intelligence (SSCI) has taken a keen inter- est in possibly updating the codified language underpinning much of the nation’s counterintelligence apparatus. “Spy vs. spy” threats continue to exist, but the rise of China and (to an extent) Russia’s machinations move beyond the governmental sphere to technological, economic, supply chain, cyber, academic, state, and local espionage threats at a level our country has never seen. The asymmetric threat includes cyber, nontraditional collection, and issues involving legitimate busi- nesses serving as collection platforms. Barring statutory changes that could occur before 2025, a future conserva- tive President should further empower and resource the IC by executive order or through suggested changes in the Counterintelligence Enhancement Act (CEA) of 2002.32 NCSC was given some authority for outreach efforts on behalf of the IC for counterintelligence education, insider threats, and broader U.S. government best practices, but there remain significant deltas between Title 50 and non–Title 50 entities’ protections. Primary operational elements should remain at the FBI and CIA, with the Bureau and NCSC collaborating on nongovernmental outreach. While there is no need to create a separate agency, a future President and DNI should amplify NCSC’s authorities and roles with respect to counterintelligence strategy, policy, outreach, and governance, including supporting necessary Joint Duty Assignments (JDA) for FBI and CIA personnel. At the same time, the FBI requires significant additional resources and legal authorities to fulfill its statu- tory role as the lead operational counterintelligence agency in dealing with the ever-growing threats posed by our adversaries. The CEA should be updated to include foreign espionage efforts aimed at universities. Corporate America, technology companies, research institutions, and academia must be willing, educated partners in this generational fight to protect our national security interests, economic interests, national sovereignty, and intellectual prop- erty as well as the broader rules-based order—all while avoiding the tendency to cave to the left-wing activists and investors who ignore the China threat and increasingly dominate the corporate world. Reinstitution of the National Security Higher Education Advisory Board and the National Security Business Alliance Council should be prioritized with leadership from the NCSC, the FBI, or a com- bination of both entities. When the CCP steals at least $400 billion–$600 billion in intellectual prop- erty each year, it is time to devote some strategic thinking to exactly how and to what degree counterintelligence efforts can help to protect America’s commercial endeavors. If Chinese strategic technology gains are happening almost entirely in transnational commercial space, for example, and the private sector is also gath- ering and analyzing some critical intelligence, these essential data points should assist in national-level counterintelligence efforts. — 219 — Intelligence Community The NCSC was created in the aftermath of 9/11 as the Terrorist Threat Integra- tion Center (TTIC), which later became the National Counterterrorism Center (NCTC) pursuant to President George W. Bush’s Executive Order 13354.33 The NCTC was an organization of approximately three dozen detainees from across the U.S. government with a mandate to integrate counterterrorism intelligence and missions, including terrorist screening. Eventually: In November 2014 the Director of National Intelligence (DNI) established NCSC by combining [the Office of the National Counterintelligence Executive] with the Center for Security Evaluation, the Special Security Center and the National Insider Threat Task Force, to effectively integrate and align counterintelligence and security mission areas under a single organizational construct. The Director of NCSC serves in support of the DNI’s role as Security Executive Agent (SecEA) to develop, implement, oversee and integrate personnel security initiatives throughout the U.S. Government.34 NCSC has added value in such areas as fusing cross-community intelligence for terrorism watchlisting purposes and improving information sharing while carrying roughly half of the overall cadre for the ODNI. An incoming Administration should focus NCTC on integrative tasks, many of which cannot be carried out elsewhere in the IC, but should not use personnel and resources for redundant analyses that duplicate the work of such other IC entities as the FBI and CIA. ADDITIONAL AREAS FOR REFORM Analytical Integrity. The “tradecraft” of intelligence analysis is mostly a col- lection of lessons learned over decades about what works and does not work in a profession whose high-stakes work is performed by thousands but that also bears little outside scrutiny and provides few metrics by which to gauge success or failure on a regular basis. These lessons have accumulated from: l The perceived misuse of intelligence by consumers as was the case with respect to war-related assessments in the Johnson and Bush Administrations; l Failures such as the failures to warn of the collapse of the Soviet Union and the specific threat of 9/11; l Successes in piecing together tactical and often technical puzzles such as estimates of Iranian nuclear program maturation; and l Strategic victories such as anticipating critical geopolitical developments that have been years in the making.

— 401 — Department of Energy and Related Commissions nation in the summer110 and winter.111 Cyber and physical attacks also threaten the grid. Specific areas for reform include the following: l Limit the impact of subsidized renewables on price formation. Subsidized renewable resources are undermining electric reliability in RTOs. The increase in subsidized, intermittent resources is undermining the ability of RTOs’ pricing models to support the reliable dispatchable generation that is needed to serve the grid at all times.112 l Reform the application of reserve margins. Reserve margins have become largely meaningless. Traditionally, the electric industry has used “reserve margins” to ensure that the grid has enough power plants to guarantee reliability. Generally, reserve margins represent the amount of generation available (power plants) to meet peak electric demand (the time of day and year when people are using the most electricity) plus a percentage of additional generation for backup.113 However, given the increasing number of intermittent resources (like solar, which may be available during the heat of the day but disappears as the sun sets), other dispatchable generation needs to be available to meet customers’ electricity requirements. Therefore, the definitions and calculations of reserve margins and peak load need to be updated to focus on the modern grid’s reliability challenges for all times of the day and year. l Recognize the interdependence of electric generation and natural gas. The interdependence of electric generation and natural gas pipelines continues to grow. Given natural gas’s important role in generating electricity, especially as backup when renewables are not available, lack of natural gas pipelines or attacks on existing pipelines could threaten our ability to generate electricity. l Expand resource diversity and reliability. Resource diversity is needed to support grid reliability. Pressure to use 100 percent renewables or non– carbon emitting resources threatens the electric grid’s reliability. A grid that has access to dispatchable resources such as coal, nuclear, and natural gas for generating power is inherently more reliable and resilient. l Protect against cyber and physical attacks. The threat of cyber and physical attacks on electric infrastructure by foreign actors like China, Russia, North Korea, and Iran, as well as terrorists, continues to grow. The attacks with guns on substations in North Carolina in December 2022 that left customers without power demonstrate the grid’s vulnerability.114 — 402 — Mandate for Leadership: The Conservative Promise New Policies l Reform RTOs to require reliability. FERC should direct RTOs to establish reliability pricing for eligible dispatchable generation resources or require intermittent resources to procure backup power for times when they are not available to operate. In addition, Congress should repeal subsidies for generation resources. l Update the definition and calculation of reserve margins to support reliability. FERC, NERC, and DOE should revise the definition of reserve margins to ensure the grid’s reliability throughout the day and the year. This will mean recognizing that reserve margins may need to consider “net peak” and exclude non-dispatchable resources from inclusion in reserve margin calculations. l Expand and protect natural gas infrastructure in support of electric generation. FERC needs to ensure that its consideration of natural gas pipeline applications recognizes the role that natural gas plays in electric reliability. FERC also needs to make sure that RTO pricing mechanisms support generators that need to contract for natural gas service on a firm basis. l Support resource diversity and reliability. FERC, NERC, and DOE play key roles in balancing consumer, industrial, and national defense interests to ensure an ongoing reliable, plentiful, and accessible national electricity supply. NERC reliability reviews and FERC’s reliability roles should be aware that overreliance on any one power generation fuel source entails concurrent cost and availability risk. FERC should reform market rules that unduly discriminate against dispatchable resources needed for reliability. l Strengthen security against cyber and physical threats. FERC and NERC need to enhance the security of the bulk power system by, for example, banning Chinese-made components, investing in transformers, and hardening substations and other critical infrastructure. DOE should play a leading role in identifying and addressing threats to the grid. FERC: RTOS/ISOS AND “ELECTRIC POWER MARKETS” Mission/Overview For more than 20 years, FERC has issued regulations and directed policies for the creation and operation of regional transmission organizations (RTOs) and independent system operators (ISOs) to manage the dispatch of generation and