[Federal Register Volume 71, Number 165 (Friday, August 25, 2006)]
[Notices]
[Page 50449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14088]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No FR-4743-N-08]


Notice of Planned Little Rock, AR Post-of-Duty Station

AGENCY: Office of the Inspector General, HUD.

ACTION: Notice of planned closing of the Little Rock, Arkansas post-of-
duty station.

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SUMMARY: This notice advises the public that HUD's Office of the 
Inspector General (HUD/OIG) plans to close its Little Rock, Arkansas 
post-of-duty station, and also provides a cost-benefit analysis of the 
impact of this closure.

FOR FURTHER INFORMATION CONTACT: Bryan Saddler, Counsel to the 
Inspector General, Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 8260, 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 1-800-877-
8339 (Federal Information Relay Services).

SUPPLEMENTARY INFORMATION: In 1997, HUD/OIG established a two-person 
post-of-duty station in Little Rock, Arkansas 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.
    Following the termination of OSH, HUD/OIG staff in Little Rock were 
deployed to other activities. In January 2006, one of the two Little 
Rock special agent retired. Later, in July 2006, the sole remaining 
special agent transferred to another agency, leaving the office with no 
staff. It has been determined, that backfilling the two special agent 
positions is not viable due to current hiring and financial 
constraints.
    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 HUD field or regional office 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 Little Rock, 
Arkansas is a single purpose duty station, and it is being closed based 
on workload rather than 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 Little Rock, Arkansas 
duty station and provides the cost benefit analysis of the impact of 
the closure.

Impact of the Closure of the Little Rock, Arkansas Post-of-Duty Station

    HUD/OIG considered the costs and benefits of closing the Little 
Rock, Arkansas post-of-duty station, and is publishing its cost-benefit 
analysis 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 post-of-duty station currently costs 
approximately $1,988.00 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 $25,356.00.
    B. Additional Costs: It is anticipated that cost savings partially 
will be offset by travel costs associated with HUD/OIG staff having to 
travel to Little Rock, Arkansas for investigative purposes. However, a 
net savings has been forecast. Moreover, these travel costs would be 
incurred by HUD/OIG anyway prior to the recruitment of replacement 
staff for the office to be closed.
    C. Impact on Local Economy: No appreciable impact on the local 
economy is anticipated. The post-of-duty station is 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 
office was based entirely on the needs of the HUD/OIG to have special 
agents in closer proximity to OSH activities conducted in the Little 
Rock, Arkansas area. These activities have been terminated. Further, as 
was the case prior to the establishment of this office, special agents 
assigned to other HUD/OIG offices can cost-effectively address fraud 
investigations in the area.
    For the reasons stated in this notice, HUD/OIG intends to proceed 
to close its Little Rock, Arkansas post-of-duty station at the 
expiration of the 90-day period from the date of publication of this 
notice.

    Dated: August 16, 2006.
Kenneth M. Donohue, Sr.,
Inspector General.
 [FR Doc. E6-14088 Filed 8-24-06; 8:45 am]
BILLING CODE 4210-67-P