HVS 08 Supporting Statement Part A

7

SUPPORTING STATEMENT

U.S. Department of Commerce

U.S. Census Bureau

Housing Vacancy Survey

OMB Control No. 0607-0179

A. Justification

1. Necessity of Information Collection

The purpose of this request for review is to obtain clearance for the collection

of demographic information in the Housing Vacancy Survey (HVS) beginning in

October 2008. The current clearance expires September 30, 2008. Title 13, United States Code, Section 182, and Title 29, USC Section 1, authorize the collection of the HVS. The HVS has been conducted since 1956 and serves a broad array of data users as described in paragraph A.2 below.

2. Needs and Uses

The U.S. Census Bureau collects the HVS data for a sample of vacant housing units identified in the monthly Current Population Survey (CPS) sample and provide the only quarterly statistics on rental vacancy rates, and home ownership rates for the United States, the four census regions, inside vs. outside metropolitan areas (MSAs), the 50 States, the District of Columbia, and the 75 largest MSAs. We obtain the rental and homeowner vacancy rate calculations from the data we collect in question >TENUR-scrn< on the CPS instrument, and question >HVSSTA< on the HVS portion of the CPS instrument (see Attachments A and B). Private and public sector organizations use these rates extensively to gauge and analyze the housing market. In addition, the rental vacancy rate is a component of the index of leading economic indicators published by the Department of Commerce.

Policy analysts, program managers, budget analysts, and Congressional staff use data obtained from the remaining questions that do not deal specifically with the vacancy rate to advise the executive and legislative branches of government with respect to number and characteristics of units available for occupancy and the suitability of housing initiatives. These characteristics are as follows:

HVSYR - Year structure built

HVSNUM - Units in structure

HVSRM - Rooms in unit

HVSBD - Bedrooms in unit

HVSPLB - Complete plumbing facilities

HVSKIT - Complete kitchen facilities

HVSBTH - Bathrooms in unit

HVSAC - Air conditioning

Public and private sector organizations use data from questions >HVSOCC< through >HVSPRC< for evaluating the housing market with regard to supply, cost, and affordability at various points in time. The following questions contain this information:

HVSOCC - Occupancy status

HVSVAC - Duration of vacancy

HVSSTA - Vacancy status of unit

HVSRNT - Monthly rent asked

HVSUTL - Utilities included in rent

HVSCOM - Commercial establishment on property

HVSPRC - Sales price asked

The Census Bureau produces a press release, "Census Bureau Reports on Residential Vacancies and Home Ownership,” on a quarterly basis (Attachment C). In addition, we place the HVS data on the Internet for users to access. The Internet address for the HVS data is <www.census.gov/hhes/www/housing/hvs/hvs.html>. Several other government agencies use these data on a continuing basis. For example, the Bureau of Economic Analysis uses the HVS data in calculating consumer expenditures for housing as a component of the gross domestic product; the Department of Housing and Urban Development relies on the HVS data to measure the adequacy of the supply of rental and homeowner units and works with the White House in measuring homeownership for minorities. The National Association of Home Builders, the National Association of Realtors, the Federal National Mortgage Association, the Federal Reserve Board, the Home Loan Mortgage Corporation, and the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO) are among the many users in the private sector who routinely use the HVS data in making policy decisions relating to the housing market. In addition, investment firms use the HVS data to analyze market trends and for economic forecasting.

Information quality is an integral part of the pre-dissemination review of the information disseminated by the Census Bureau (fully described in the Census Bureau’s Information Quality Guidelines). Information quality is also integral to the information collections conducted by the Census Bureau and is incorporated into the clearance process required by the Paperwork Reduction Act.

3. Use of Information Technology

The Census Bureau is using the most improved method of data collection available to reduce burden. Beginning in January 1994, we began conducting the CPS/HVS using computer-assisted interviewing. One of the main objectives was to keep the respondent burden as low as possible while increasing the quality of the data collected. The HVS is a portion of the automated CPS instrument.

In order to keep the respondent burden as low as possible, while maximizing the relevancy and reliability of the data collected through the redesigned CPS, the Bureau of Labor Statistics, and the Census Bureau engaged in lengthy research and experimental activities. These activities involved cognitive research in laboratory settings, considerable field experimentation with different versions of the survey questionnaire, consultations with various experts, and debriefings of the actual interviews.

4. Efforts to Identify Duplication

There is no other comparable source of quarterly data on national, regional, state, and metropolitan area vacancy rates, home ownership rates, housing inventory estimates, and rent and sales prices of available units.

The Housing and Household Economic Statistics Division of the Census Bureau reviewed many studies and surveys conducted by both government agencies and the private sector that related to the data described in paragraph A.2. The American Housing Survey (AHS)-National sample collects national and regional data on characteristics of the vacant rental and homeowner inventories but only on a biannual basis. The HVS is the only statistical effort of its type that produces quarterly national estimates of these data on a continuing basis.

A number of questions in this supplement may appear in the American Community Survey (ACS) and in other demographic surveys. However, the comprehensive set of questions in the HVS does not duplicate any other single information collection, and ensures the historical continuity of a data series that began in 1956.

5. Minimizing Burden

The collection of the HVS data does not involve small businesses or other small entities.

6. Consequences of Less Frequent Collection

We conduct the HVS every month in order to produce high quality statistics on a quarterly basis. Less frequent collection would require a significant increase in the CPS sample size to ensure an adequate number of vacant units are identified, or would force us to publish these statistics on a less frequent basis. The demand for housing, as well as selling price and rent asked, changes dramatically with general economic fluctuations. Less frequent publication could hide many of the trends in the housing market that shift over a relatively short period of time. In today’s environment, with regard to the mortgage market and housing supply and demand, our current CPS/HVS measurements are as important as ever.

7. Special Circumstances

We collect these data in a manner consistent with Office of Management and Budget (OMB) guidelines with the exception that we conduct the survey more frequently than quarterly. We collect the data monthly because the housing market changes quite frequently; therefore, the most current data are needed to monitor these changes.

8. Consultations Outside the Agency

The following person from outside the Census Bureau is involved in continuing consultations:

Ron Sepanik

Housing and Demographic Analysis Division

Department of Housing and Urban Development

Room 8218

Washington, DC 20410

202-708-1060

The Housing Statistics Users Group advises the Census Bureau on housing issues on a regular basis. On occasion, this group has met to discuss the HVS. This group has supported the publication of vacancy rates for states and MAs and home ownership rates by age of householder and by family type.

In addition to the above, a statement soliciting comments for improving the CPS data

is prominently placed in all Census Bureau publications that cite the CPS data. We include a similar statement in the technical documentation that accompanies the microdata files. Additionally, we published a notice of our intent to request clearance for the HVS in the February 25, 2008 edition (Vol. 73, No. 37, page 9988) of the "Federal Register." We received two comments. One was deemed irrelevant, and the other expressed strong support for the continued collection.

The advance letter (Attachment D) provides respondents with an address at the Census Bureau so that they can submit general comments on the survey, specifically, those regarding respondent burden.

Finally, representatives from other government agencies and the private sector contact the Census Bureau regularly regarding the HVS. Since the HVS is a historical series, it is generally agreed that no major modifications that would weaken long-term comparability should be made to its content.

9. Paying Respondents

We do not pay respondents or provide them with gifts.

10. Assurance of Confidentiality

We conduct the HVS in compliance with the Privacy Act of 1974 and the OMB Circular A-130. New and returning households receive an advance letter approximately one week before the start of CPS interviewing. These letters contain the information required by the Privacy Act of 1974 (see Attachment D) and advise the respondent that this is a voluntary survey. The respondents for units eligible for the HVS additionally receive a fact sheet (see Attachment E) which explains that the HVS

is part of the monthly CPS, in addition to providing other information about the

survey. Interviewers provide the pamphlet, "How the Census Bureau Keeps

Your Information Strictly Confidential," to households whenever necessary (see Attachment F). All information given by respondents to Census Bureau employees is held in the strictest confidence as guaranteed by Title 13, United States Code, Section 9. Each interviewer has taken an oath to this effect and is subject to a jail penalty and/or a fine if he/she discloses any information.

11. Justification for Sensitive Questions

We do not ask sensitive questions in the HVS.

12. Estimate of Hour Burden

There are approximately 6,936 units identified in the monthly CPS as eligible for the HVS. This results in 83,232 responses annually. The respondent burden for the interview averages three minutes (.0514 hours) based on the previous HVS interviews. The total estimated respondent burden is 4,278 hours for fiscal year (FY) 2008.

13. Estimate of Cost Burden

There are no costs to the respondents other than that of their time to respond.

14. Cost to Federal Government

The total estimated cost to the federal government for the HVS in FY 2008 is $870,000. The cost is borne entirely by the Census Bureau.

15. Reasons for Change in Burden

There is an increase in the burden. The burden hours estimated in 2005 was 3,910 but is now estimated to be 4,278 hours in 2008. This is due to an increase in the number of vacant housing units in the sample since the last submission.

16. Project Schedule

HVS QUARTERLY DATA
Activity	Time Frame
Conduct Interviews	Monthly, Week of 19th
Produce Tabulations	Three Weeks After Interviewing for Quarter
Complete and Release an Advanced Press Release Containing: Quarterly Rental and Homeowner Vacancy Rates Housing Inventory Estimates Homeownership Rates	Within 19 Working Days of End of Quarter
Place HVS Data On Our Internet Web Site	Within 37 Working Days of End of Quarter

HVS YEARLY DATA
Activity	Time Frame
Publish Annual HVS on the Internet. We show:  Vacancy and Homeownership Rates for: 1. United States 2. Regions 3. The 50 States 4. District of Columbia 5. Selected MSAs  Homeownership Rates by: 1. Age of Householder 2. Family Status for the United States and Regions Detailed Characteristics with Historical Data of Vacant Units	Published in February every year.

17. Request to Not Display Expiration Date

Respondents= length of participation in the HVS is not likely to coincide with the expiration date of this clearance. To avoid confusion that may arise from this fact and given that the HVS has been in place for over 45 years and the basic HVS interview has remained relatively unchanged over the past 82 years, we request a waiver of the requirement to display the expiration date.

18. Exceptions to the Certification

There are no exceptions to the certification.