[Federal Register Volume 67, Number 52 (Monday, March 18, 2002)]
[Notices]
[Pages 12040-12041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6334]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4743-N-01]


Notice of Planned Closing of Oakland, CA Post-of-Duty Station

AGENCY: Office of Inspector General, HUD.

ACTION: Notice of Planned Closing of Oakland, California Post-of-Duty 
Station.

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SUMMARY: This notice advises the public that the HUD Office of 
Inspector General is closing its Oakland, California post-of-duty 
station, and also provides a cost-benefit analysis of the impact of the 
closure.

FOR FURTHER INFORMATION CONTACT: Bryan Saddler, Counsel to the 
Inspector General, Room 8260, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410, (202) 708-
1613. (This is not a toll free number.) A telecommunications device for 
hearing- and speech-impaired persons (TTY) is available at 1-800-877-
8339 (Federal Information Relay Services). (This is a toll-free 
number.)

SUPPLEMENTARY INFORMATION:

Background

    In 1996, HUD's Office of Inspector General (HUD/OIG) established a 
two person post-of-duty station in Oakland, California, to give direct 
support to the Oakland, California office's Operation Safe Home (OSH) 
initiative to combat violent and drug-related crime in public and 
assisted housing in the city and nearby communities. Although the 
Oakland post-of-duty station is only about 10 miles from HUD/OIG's San 
Francisco Regional Office, nationwide experience since the initiation 
of OSH in 1994 had proven that the best results/impact could be 
obtained when HUD/OIG Special Agents were physically located in the 
target city. However, in accordance with the requirements of the Fiscal 
Year 2002 HUD Appropriations Act (Pub.L. 107-73, approved November 26, 
2001), HUD/OIG is terminating OSH and re-deploying staff to focus on 
investigations involving single-family fraud and property flipping. 
This change eliminates the need to maintain a separate post-of-duty 
station in Oakland, California, and gives HUD/OIG the opportunity to 
generate cost savings associated with discontinuing an additional 
office.
    Section 7(p) of the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(p)) provides that a plan for field reorganization, 
which may involve the closing of any field or regional office, of the 
Department of Housing and Urban Development may not take effect until 
90 days after a cost-benefit analysis of the effect of the plan on the 
office in question is published in the Federal Register. The required 
cost-benefit analysis should include: (1) An estimate of cost savings 
anticipated; (2) an estimate of the additional cost which will result 
from the reorganization; (3) a discussion of the impact on the local 
economy; and (4) an estimate of the effect of the reorganization on the 
availability, accessibility, and quality of services provided for 
recipients of those services.
    Legislative history pertaining to section 7(p) indicates that not 
all reorganizations are subject to the requirements of section 7(p). 
Congress

[[Page 12041]]

stated that ``(t)his amendment is not intended to [apply] to or 
restrict the internal operations or organization of the Department 
(such as the establishment of new or combination of existing 
organization units within a field office, the duty stationing of 
employees in various locations to provide on-site service, or the 
establishment or closing, based on workload, of small, informal offices 
such as valuation stations).'' (See House Conference Report No. 95-
1792, October 14, 1978 at 105-106.)
    The two-person duty-station in Oakland, California, is a single 
purpose duty station, and the duty station is being closed based on 
workload rather than a reorganization of OIG field offices. Although 
notice of the closing of a duty station is not subject to the 
requirement of section 7(p), as supported by legislative history, OIG 
nevertheless prepared a cost-benefit analysis for its own use in 
determining whether to proceed with the closing. Through this notice, 
OIG advises the public of the closing of the Oakland, California duty 
station and provides the cost-benefit analysis of the impact of the 
closure.

Impact of the Closure of the Oakland, California Post-of-Duty 
Station

    HUD/OIG considered the costs and benefits of closing the Oakland, 
California post-of-duty, and is publishing its cost-benefit analysis 
with this notice. In summary, HUD/OIG has determined that the closure 
will result in a cost savings, and, as a result of the size and limited 
function of the office, will cause no appreciable impact on the 
provision of authorized investigative services/activities in the area 
(i.e., OSH activities, of course, will be impacted, but HUD/OIG has 
been directed to terminate these activities).

Cost-Benefit Analysis

A. Cost Savings
    The Oakland, California post-of-duty currently costs $35,617 per 
year in lease expenses. Thus, closing the post-of-duty will result in 
an annual savings of at least $35,617. In addition, by closing the 
office HUD/OIG will not be required to incur additional costs 
associated with current plans to install high-speed computer access 
lines to and on the premises, nor will HUD/OIG incur costs associated 
with the lease or purchase of duplicative office equipment.
B. Additional Costs
    There are no offsetting expenses anticipated. The Special Agents 
assigned to the Oakland, California post-of-duty will be reassigned to 
the San Francisco Regional Office, without need for relocation 
reimbursement. Further, there is adequate existing office space to 
accommodate the Special Agents within the San Francisco Regional 
Office.
C. Impact on Local Economy
    The Oakland, California post-of-duty office space is located in 
government office space: The Federal Court House. Further, the post-of-
duty comprises a mere 1290 square feet of space, which can easily be 
re-leased to other tenants. Moreover, the closure coincides with the 
normal expiration of HUD/OIG's lease. Thus, no appreciable impact on 
the local economy is anticipated.
D. Effect on Availability, Accessibility and Quality of Services 
Provided to Recipients of Those Services
    The establishment of the Oakland, California post-of-duty was based 
entirely on the needs of the HUD/OIG to have Special Agents in closer 
proximity to OSH activities conducted in the Oakland area. These 
activities are being terminated. Further, as was the case prior to 
1996, fraud investigations in the Oakland area can be cost-effectively 
addressed by agents assigned to the San Francisco Regional Office which 
is about 10 miles away.
    For the reasons stated in this notice, HUD/OIG intends to proceed 
to close its Oakland, California post-of-duty station at the expiration 
of the 90-day period from the date of publication of this notice.

    Dated: March 8, 2002.
David C. Williams,
Acting Inspector General.
[FR Doc. 02-6334 Filed 3-15-02; 8:45 am]
BILLING CODE 4210-78-P