U.S. Department of Housing and Urban Development
Special Attention of:
NOTICE: CPD – 03-09
All CPD Office Directors
Issued September 3, 2003
All CPD Field Office Directors
All CPD Formula Grantees
Expires September 3, 2004
SUBJECT: Development of State and Local Performance Measurement Systems for
Community Planning and Development (CPD) Formula Grant Programs.
The purpose of this Notice is to strongly encourage each CPD formula grantee to develop
and use a state or local performance measurement system. Measuring performance at
the state or local level is critical to the flexibility-driven formula programs. Since
grantees are given the flexibility to make choices about how to use program funds, it is
only logical that grantees be accountable, at the local level, for those choices.
Performance measurement is simply an organized process for gathering information to
determine how well programs and projects are meeting needs, and then using that
information to improve performance and better target resources. There are two critical
components of performance measurement: (1) productivity and (2) program impact. In
housing and community development agencies, productivity reflects the level of
efficiency (quantity, quality, and pace) with which a grantee undertakes its activities.
Program impact, on the other hand, reflects the extent to which those activities yield the
desired outcomes in the community or in the lives of persons assisted.
As part of the President’s Management Agenda, HUD’s Office of Community Planning
and Development has undertaken an initiative to make the Consolidated Plan more
results-oriented and useful to communities in assessing their own progress toward
addressing the problems of low-income areas. The Consolidated Plan Improvement
Initiative (CPII) is currently testing some pilot consolidated plans t