[Federal Register Volume 69, Number 207 (Wednesday, October 27, 2004)]
[Notices]
[Pages 62717-62718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23999]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4743-N-06]


Notice of Planned Closing of Portland, OR; Omaha, NE; 
Albuquerque, NM; and Birmingham, AL; Post-of-Duty Stations

AGENCY: Office of Inspector General, (HUD).

ACTION: Notice of planned closing of the Portland, Oregon; Omaha, 
Nebraska; Albuquerque, New Mexico; and Birmingham, Alabama post-of-duty 
stations.

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SUMMARY: This notice advises the public that the HUD Office of 
Inspector General (OIG) plans to close its Portland, Oregon; Omaha, 
Nebraska; Albuquerque, New Mexico; and Birmingham, Alabama post-of-duty 
stations, and also provides a cost-benefit analyses of the impact of 
these closures.

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 20410-4500, 202-
708-1613. (This is not a toll free number.) A telecommunications device 
for hearing- and speech-impaired persons (TTY) is available at 800-877-
8339 (Federal Information Relay Services). (This is a toll-free 
number.)

SUPPLEMENTARY INFORMATION: Between 1997 and 2000 HUD/OIG established 
one and two person post-of-duty stations in Portland, Oregon; Omaha, 
Nebraska; and Albuquerque, New Mexico to give direct support to the 
Operation Safe Home (OSH) initiative to combat violent and drug related 
crime in the public and assisted housing in the city and nearby 
communities. Nationwide experience since the initiation of OSH in 1994 
had proven that the best results/impact could be obtained when an HUD/
OIG Special Agent was 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 terminated OSH and began re-deploying staff to focus on 
investigations involving single-family fraud and property flipping. 
This change eliminated the need to maintain separate post-of-duty 
stations in Portland, Oregon; Omaha, Nebraska; and Albuquerque, New 
Mexico, and gave HUD/OIG the opportunity to generate cost savings 
associated with discontinuing an additional office.
    Regarding the Birmingham, Alabama post-of-duty station, it has 
existed since the early 1970s. During the 1990s, the office was staffed 
with a senior auditor and two staff auditors. The senior auditor and 
one staff auditor have left HUD/OIG, and the office is currently left 
with one staff auditor. Closing this office gives HUD/OIG the 
opportunity to generate cost savings associated with discontinuing an 
office, since the audits currently performed by the office can be 
performed as efficiently and effectively by staff in HUD/OIG's Atlanta 
Regional 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 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 58.) The duty-stations in Portland, Oregon; 
Omaha, Nebraska; Albuquerque, New Mexico;

[[Page 62718]]

and Birmingham, Alabama are single purpose duty stations, and are being 
closed based on workload rather than under a reorganization of HUD/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, HUD/OIG nevertheless prepared a cost benefit analysis for its 
own use in determining whether to proceed with the closing. Through 
this notice, HUD/OIG advises the public of the closing of the Portland, 
Oregon; Omaha, Nebraska; Albuquerque, New Mexico; and Birmingham, 
Alabama duty stations and provides the cost benefit analysis of the 
impact of the closure.
    Impact of the Closure of the Portland, Oregon; Omaha, Nebraska; 
Albuquerque, New Mexico; and Birmingham, Alabama; Post-of-Duty 
Stations: HUD/OIG considered the costs and benefits of closing the 
Portland, Oregon; Omaha, Nebraska; Albuquerque, New Mexico; and 
Birmingham, Alabama post-of-duty stations, and is publishing its cost-
benefit analyses with this notice. In summary, HUD/OIG has determined 
that the closures 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.

Cost-Benefit Analysis

    A. Cost Savings: The Portland, Oregon post-of-duty station 
currently costs approximately $2866.82 per month for space rental. 
Additional associated overhead expenses (e.g., telephone service) are 
incurred to operate the post-of-duty station. Thus, closing the office 
will result in annual savings of at least $34,401.00. 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.
    The Omaha, Nebraska, post-of-duty station currently costs 
approximately $225 per month for space rental. Additional associated 
overhead expenses are incurred to operate the post-of-duty station. In 
addition, the agent is required to travel to the Regional Office in 
Kansas City, Missouri on a quarter-yearly basis for required agent 
qualification update training. Thus, closing the office will result in 
annual savings of at least $4,000. 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.
    The Albuquerque, New Mexico post-of-duty station currently costs 
approximately $1288.08 per month for space rental. Additional 
associated overhead expenses are incurred to operate the post-of-duty 
station. Thus, closing the office will result in annual savings of at 
least $15,457.00. 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.
    The Birmingham, Alabama, post-of-duty station currently costs 
approximately $4,034 per month for space rental. Additional associated 
overhead expenses are incurred to operate the post-of-duty station. 
Thus, closing the office will result in annual savings of at least 
$48,000.
    B. Additional Costs: With respect to the Portland, Oregon and 
Albuquerque, New Mexico post-of-duty stations there will be no 
offsetting costs. HUD/OIG currently has no staff in either office. 
Relocation costs associated with personnel in the Omaha, Nebraska and 
Birmingham, Alabama post-of-duty stations are estimated to total no 
more than $90,000.
    C. Impact on Local Economy: No appreciable impact on the local 
economy of Portland, Oregon; Omaha, Nebraska; Albuquerque, New Mexico; 
and Birmingham, Alabama is anticipated. The post-of-duty stations are 
co-located with office space leased by other federal agencies, and it 
is anticipated that the space can easily be re-leased to other tenants.
    D. Effect on Availability, Accessibility and Quality of Services 
Provided to Recipients of Those Services: The establishment of the 
Portland, Oregon; Omaha, Nebraska; and Albuquerque, New Mexico post-of-
duty stations were based entirely on the needs of the HUD/OIG to have 
Special Agents in closer proximity to OSH activities conducted in the 
Portland, Omaha and Albuquerque areas. These activities have been 
terminated. Further, as was the case prior to the establishment of 
these offices, special agents assigned to other HUD/OIG offices can 
cost-effectively address fraud investigations in the Portland, Omaha 
and Albuquerque areas.
    Similarly, the establishment of the Birmingham, Alabama post-of-
duty station was based on the needs of the HUD/OIG to have auditors in 
closer proximity to audit activities conducted in the Birmingham area. 
However, HUD/OIG currently believes that auditors assigned to the 
Atlanta Regional Office can cost-effectively address the limited number 
of audits in the Birmingham area.
    For the reasons stated in this notice, HUD/OIG intends to proceed 
to close its Portland, Oregon; Albuquerque, New Mexico; Omaha, 
Nebraska; and Birmingham, Alabama post-of-duty stations at the 
expiration of the 90-day period from the date of publication of this 
notice.

    Dated: October 20, 2004.
Kenneth M. Donohue, Sr.,
Inspector General.
[FR Doc. 04-23999 Filed 10-26-04; 8:45 am]
BILLING CODE 4210-78-P