Public housing is one of the most centralized bureaucratic dysfunctional systems in american government.
The federal department of housing and urban development controls virtually everything a local housing authority does.
The hud of fice we have here is almost obsessed with this book of regulations they have got say andrea duncan, executive director of the housing authority of louisville if you deviate from that by the slightest bit they have got to write you up.
If a specification says the screw should be thee-quarters of an inch long and the contractor put in half-inch screws, they want them all taken out and changed.
Being entrepreneurial types, duncan and her colleagues figured out a way around hud is rules
They created a nonprofit subsidiary, louisville housing services, which can do things the housing authority can not dream of doing .
It can spend money on awards dinners for housing authority employees, run a scholarship program for kids in public housing even develop new housing
We established it just to get out of the hud regulations to be able to move a little faster say duncan
Louisville housing services first big project was the sale of a 100 unit complex to public housing residents
Its second project was construction of 36 new units which it sold to more public housing residents
It borrowed the money
Using the income from the first 100 mortgages as a partial loan guarantee built new condominium in just five months and sold them for 32000 to 36000
I am still working on a development program with hud we started two years ago duncan told us by way of contrast
We are got the buildings there all we have to do is rehab them
We have made no progress because the buildings have lead paint and hud can't decide what to do
How to do about the lead based paint removal because they didn't budget for it and there's not enough money
They won't let us go ahead until they get clearance and they can't get clearance until it goes through region and up to Washington and back down again
I mean it's crazy
These buildings are vacant meanwhile over here at our subsidiary
We not only put a deal together we have got people living in the units and it's time to go on to the next deal
There is no comparison
The punch line louisville housing services has no employees
It is run by a half time consultant who contracts with private firms or hires housing authority employees in their off hours when he need something done
We have seen the same pattern hundreds of times over the past decade public entrepreneurs who are frustrated by their hug
Rule driven bureaucracies simply go offshore creating smaller mission driven organizations
This is one reason why public authorities and special districts are the fastest growing forms of government organization today
Massachusetts has at least a dozen quasi public corporations to do economic development and job training
Tampa general hospital created a subsidiary to combat infant mortality st paul and minneapolis created a nonprofit corporation to finance low income housing
In its first ten years it helped than 1700 families buy homes helped finace more than 2000 rental or cooperative units and is had only one employee
That employee tom fulton first articulated for us the concept of mission driven government
It was late one Friday afternoon in his office in minneapolis
We had come to hear about his family housing fund and fulton had regaled us with tale of the inertia and waste he encountered when dealing with eral and state bureaucracies the 35 page manuals of regulations and 20 page legal opinions you know
He said we don't even have an application form
That doesn't mean we don't know what we want we have a two page list of criteria and when someone approaches us for a loan
I go through then we don't have a thousand rules
We fast forward to the distille essentials of the deal
Our organization is mission driven rather than rule driven
Fulton meant that the guiding force behind everything the family housing fund did was its mission its fundamental purpose
This may sound like common sense but in government it is rare most public organizations are driven not their missions but by their rules and their budgets
They have rule for everything that could conceivably go wrong and a line item for every subcategory of spending in every unit of every department
The glue that holds public bureaucracies together in other words is like epoxy it comes in two separate tubes one hotds rules the other line items
Mix them together an you get cement
Entrepreneurial governments dispense with both tubes
The get rid of the old rule books and dissolve the line items
The define their fundamental mission s then develop budget systeme and rules that free their employees to pursue those missions
Some rules are necessary to run any organization
But a james q wilson writes the united states relies on rules control the exercise of official judgment to a greater extent that any other industrialized democracy wilson ascribes this tendency to our system of checks and balances which makes each power center so weak that everyone fall back on rules to control what everyone else can do but the tendency escalated dramatically during the progressive era
When reformers we're struggling to control boss tweed and his cronies
To control the 5 percent who were dishonest the progressives created the red tape that so frustrates the other 95 percent
To this day whenever things go wrong politicians respond with a blizzard of new rules
A business would fire the individuals responsible but governments keep the offenders on and punish everyone else by wrapping them up in red tape
They close the barn door after the horse has escaped locking in all the cowhands
We embrace our rules and red tape to prevent bad things from happening of course but those same rules prevent good things from happening
They slow government to a snail is pace
They make it impossible to respond to rapidly changing environments
They build waste time and effort into the very fabric of the organization
When the federal aviation administration needed to recruit train and move airffic controllers quickly in the 1980 civil service procedures made it impossible
When air traffic controllers needed even the simplest pieces of equipment the procurement process took 9 to 12 months
When the massachusetts revenue department decided it could generate 100 million in new revenues if it had 40 more auditors it took a year just to create the positions
When massachusetts enacted a series of controls after construction scandals in the 1970 public contruction slowed to a crawl and its price skyrocketed
The reformers legislated an absence of even the appearance of wrongdoing at a price of no product said former boston redevelopment director frank logue
They have created a process which makes cowards out of everyone
The us postal service has a rule book the size of a collegiate dictionary
The new york city school system has a rule book the size of two collegiate dictionaries
Public housing is one of the most centralized bureaucratic dysfunctional systems in american government.
The federal department of housing and urban development controls virtually everything a local housing authority does.
The hud of fice we have here is almost obsessed with this book of regulations they have got say andrea duncan, executive director of the housing authority of louisville if you deviate from that by the slightest bit they have got to write you up.
If a specification says the screw should be thee-quarters of an inch long and the contractor put in half-inch screws, they want them all taken out and changed.
Being entrepreneurial types, duncan and her colleagues figured out a way around hud is rules
They created a nonprofit subsidiary, louisville housing services, which can do things the housing authority can not dream of doing .
It can spend money on awards dinners for housing authority employees, run a scholarship program for kids in public housing even develop new housing
We established it just to get out of the hud regulations to be able to move a little faster say duncan
Louisville housing services first big project was the sale of a 100 unit complex to public housing residents
Its second project was construction of 36 new units which it sold to more public housing residents
It borrowed the money
Using the income from the first 100 mortgages as a partial loan guarantee built new condominium in just five months and sold them for 32000 to 36000
I am still working on a development program with hud we started two years ago duncan told us by way of contrast
We are got the buildings there all we have to do is rehab them
We have made no progress because the buildings have lead paint and hud can't decide what to do
How to do about the lead based paint removal because they didn't budget for it and there's not enough money
They won't let us go ahead until they get clearance and they can't get clearance until it goes through region and up to Washington and back down again
I mean it's crazy
These buildings are vacant meanwhile over here at our subsidiary
We not only put a deal together we have got people living in the units and it's time to go on to the next deal
There is no comparison
The punch line louisville housing services has no employees
It is run by a half time consultant who contracts with private firms or hires housing authority employees in their off hours when he need something done
We have seen the same pattern hundreds of times over the past decade public entrepreneurs who are frustrated by their hug
Rule driven bureaucracies simply go offshore creating smaller mission driven organizations
This is one reason why public authorities and special districts are the fastest growing forms of government organization today
Massachusetts has at least a dozen quasi public corporations to do economic development and job training
Tampa general hospital created a subsidiary to combat infant mortality st paul and minneapolis created a nonprofit corporation to finance low income housing
In its first ten years it helped than 1700 families buy homes helped finace more than 2000 rental or cooperative units and is had only one employee
That employee tom fulton first articulated for us the concept of mission driven government
It was late one Friday afternoon in his office in minneapolis
We had come to hear about his family housing fund and fulton had regaled us with tale of the inertia and waste he encountered when dealing with eral and state bureaucracies the 35 page manuals of regulations and 20 page legal opinions you know
He said we don't even have an application form
That doesn't mean we don't know what we want we have a two page list of criteria and when someone approaches us for a loan
I go through then we don't have a thousand rules
We fast forward to the distille essentials of the deal
Our organization is mission driven rather than rule driven
Fulton meant that the guiding force behind everything the family housing fund did was its mission its fundamental purpose
This may sound like common sense but in government it is rare most public organizations are driven not their missions but by their rules and their budgets
They have rule for everything that could conceivably go wrong and a line item for every subcategory of spending in every unit of every department
The glue that holds public bureaucracies together in other words is like epoxy it comes in two separate tubes one hotds rules the other line items
Mix them together an you get cement
Entrepreneurial governments dispense with both tubes
The get rid of the old rule books and dissolve the line items
The define their fundamental mission s then develop budget systeme and rules that free their employees to pursue those missions
Some rules are necessary to run any organization
But a james q wilson writes the united states relies on rules control the exercise of official judgment to a greater extent that any other industrialized democracy wilson ascribes this tendency to our system of checks and balances which makes each power center so weak that everyone fall back on rules to control what everyone else can do but the tendency escalated dramatically during the progressive era
When reformers we're struggling to control boss tweed and his cronies
To control the 5 percent who were dishonest the progressives created the red tape that so frustrates the other 95 percent
To this day whenever things go wrong politicians respond with a blizzard of new rules
A business would fire the individuals responsible but governments keep the offenders on and punish everyone else by wrapping them up in red tape
They close the barn door after the horse has escaped locking in all the cowhands
We embrace our rules and red tape to prevent bad things from happening of course but those same rules prevent good things from happening
They slow government to a snail is pace
They make it impossible to respond to rapidly changing environments
They build waste time and effort into the very fabric of the organization
When the federal aviation administration needed to recruit train and move airffic controllers quickly in the 1980 civil service procedures made it impossible
When air traffic controllers needed even the simplest pieces of equipment the procurement process took 9 to 12 months
When the massachusetts revenue department decided it could generate 100 million in new revenues if it had 40 more auditors it took a year just to create the positions
When massachusetts enacted a series of controls after construction scandals in the 1970 public contruction slowed to a crawl and its price skyrocketed
The reformers legislated an absence of even the appearance of wrongdoing at a price of no product said former boston redevelopment director frank logue
They have created a process which makes cowards out of everyone
The us postal service has a rule book the size of a collegiate dictionary
The new york city school system has a rule book the size of two collegiate dictionaries
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