[Federal Register Volume 77, Number 56 (Thursday, March 22, 2012)]
[Notices]
[Pages 16852-16853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6970]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5627-N-01]


Notice of Reclassification of Five Regional Offices to 
Investigative Field Offices: Seattle, WA; New Orleans, LA; Baltimore, 
MD; Tampa, FL; and Detroit, MI; Closure of Two Investigative Field 
Offices: Louisville, KY and Jacksonville, FL; and Closure of Two Sub-
Field Offices: Long Island, NY; and Central Islip, NY

AGENCY: Office of Inspector General, United States Department of 
Housing and Urban Development (HUD/OIG).

ACTION: Notice of reorganization: the reclassification of the Seattle, 
Washington; New Orleans, Louisiana; Baltimore, Maryland; Tampa, 
Florida; and Detroit, Michigan regional offices as field offices of 
investigation and the closing of the Louisville, Kentucky and 
Jacksonville, Florida, offices of investigations, the Long Island, New 
York, sub-field office of investigations and the Central Islip, New 
York, sub-field office of investigations.

-----------------------------------------------------------------------

SUMMARY: This notice advises the public that the HUD/OIG Office of 
Investigation plans to reclassify its Seattle, Washington; New Orleans, 
Louisiana; Baltimore, Maryland; Tampa, Florida; and Detroit, Michigan 
regional offices as field offices of investigation. Additionally, the 
following field offices will be closed: Louisville, Kentucky and 
Jacksonville, Florida; Long Island, New York (sub-field office); and 
Central Islip, New York (sub-field office). The planned reorganization 
is intended to:
    1. Improve the alignment of limited investigative resources, to 
promote more efficient responses to HUD or Congressional requests 
involving critical program issues;
    2. Improve management control and effectiveness while improving the 
overall management structure;
    3. Redeploy resources to prevent and detect fraud in new program 
delivery of CPD, FHA and other HUD programs;
    4. Return to a more traditional regional alignment of HUD OIG 
regional offices and HUD regional offices.

The HUD/OIG Office of Audit, to the extent that it maintains offices in 
these locations, has determined that, based upon the different nature 
of its responsibilities, it does not need to reorganize. This notice 
also includes a cost-benefit analysis supporting the reclassification 
of the four regional offices.

FOR FURTHER INFORMATION CONTACT: John McCarty, Assistant Inspector 
General for Investigations, Department of Housing and Urban 
Development, 451 Seventh Street SW., Room 8274, Washington, DC 20410-
4500, telephone 202-708-0390 (this is not a toll free number). A 
telecommunication device for hearing and speech-impaired persons (TTY) 
is available at 800-877-8339 (Federal Relay Services). (This is a toll 
free number).

SUPPLEMENTARY INFORMATION: Section 7(p) of the Department of Housing 
and Urban Development Act (42 U.S.C. 3535(p)) provides that:

    A plan for reorganization, of any regional, area, insuring, or 
other field office of the Department of Housing and Urban 
Development may take effect only upon the expiration of 90 days 
after the publication in the Federal Register of a cost-benefit 
analysis of the effect of the plan on the office involved.

The required cost-benefit analysis must 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.) Although HUD/OIG believes that the 
legislative history of section 7(p) strongly suggests that the 
legislation is inapplicable to a reclassification of four field offices 
that will in no way reduce the level of services provided to areas 
served by such offices, HUD/OIG nonetheless voluntarily publishes the 
following cost-benefit analysis of its plan.

Cost-Benefit Analysis

A. Background

    Since 2002, HUD/OIG staffing has declined from an average high of 
730 full time equivalents (FTEs) to a current level of 650 FTEs. HUD/
OIG has a target FTE level of 620 for the beginning of FY 2013. 
Simultaneous with this constriction of staff resources, HUD/OIG is 
contending with the onslaught of mortgage fraud issues and foreclosure 
issues associated with the collapse of the mortgage industry and the 
sub-prime market, the crippled economy and the impact that the economy 
has had on the foreclosure of HUD FHA insured loans. The staff 
reductions and unforeseen additional responsibilities have conspired to 
cause HUD/OIG Office of Investigation to struggle to continue to 
address baseline fraud, waste and abuse in HUD programs. To more 
efficiently and effectively address HUD/OIG's core mission and at the 
same time become better prepared to respond to inevitable but 
unpredictable events, HUD/OIG plans to reclassify five regional offices 
to field offices and close three field offices, 90 days following the 
publication of this notice.

B. Description of Proposed Changes

    90 days following the publication of this notice, the HUD/OIG 
Office of

[[Page 16853]]

Investigation will reclassify its Seattle, Washington; New Orleans, 
Louisiana; Baltimore, Maryland; Tampa, Florida; and Detroit, Michigan 
regional offices as field offices. The Seattle, Washington, field 
office will be aligned under the newly reformed Denver, Colorado, 
regional office (Region 8). The New Orleans, Louisiana, field office 
and its former field offices will be aligned under the Fort Worth, 
Texas, regional office (Region 6) or the Atlanta, Georgia regional 
office (Region 4). The Baltimore, Maryland, field office and its former 
field offices will be aligned under the Philadelphia, Pennsylvania 
regional office (Region 3). The Tampa, Florida, field office and its 
former field offices will be aligned under the Atlanta, Georgia, 
regional office (Region 4). Additionally, as part of this 
reorganization the New York, New York, Regional Office (Region 2) will 
redistribute workload and personnel to address concerns in Long Island, 
New York and Central Islip, New York and will close two sub-field 
offices in New York. Region 4 will redistribute workload to address 
concerns in Jacksonville, Florida and Louisville, Kentucky where the 
offices are being closed. All other existing regional and field office 
jurisdictional boundaries will be unchanged, and the HUD/OIG Office of 
Audit will not participate in this reorganization. Additionally, the 
Office of Investigation's headquarters organization will not be 
affected by this realignment.
    Like all HUD/OIG Office of Investigation regional offices, each of 
the five identified regional offices is currently managed by a GS-15 
1811 Special Agent-in-Charge (SAC). These SACs will be assigned as 
Deputy SACs (with no reduction in grade) to the appropriate regional 
office. Of note, there will be some attrition in this realignment and 
some positions will therefore be eliminated. The realignment ultimately 
will result in a net reduction of 6 FTEs.

C. Costs Versus Benefits

1. One-Time Costs
    (a) Personnel relocation cost ($0). It is not anticipated that 
there will be any personnel relocation costs associated with this 
reorganization.
    (b) Severance or unemployment compensation costs ($0). No severance 
costs are associated with this initiative as it does not contemplate 
the termination of any staff.
    (c) Purchase/movement of furniture and equipment ($0). Each of the 
field offices that are being evaluated for reclassification to regional 
office status already exist and are fully equipped. Additionally, the 
proposal does not contemplate the creation of new field offices or an 
increase in overall FTEs. Thus, no purchase or movement of furniture or 
equipment is involved.
    (d) Space alteration costs (de minimus). Some offices may require 
space alterations and telephone changes to accommodate any future 
changes of assigned staff. However, HUD/OIG estimates that any space 
alteration costs that result will be minimal because HUD/OIG has 
implemented and encourages teleworking. Further, hoteling is an option 
available to HUD/OIG.
    No additional or supplemental funding is expected to the current 
appropriated budget. All costs will be maintained within the current 
budget.
2. Permanent Increases in Operating Costs
    The realignment will not result in any increase in operating costs.
    No additional or supplemental funding is expected.
3. Dollar Savings Resulting From Realignment of Offices
    Personnel Cost Savings. The realignment will ultimately result in a 
net reduction of 6 FTEs resulting in significant savings of well over 
$600,000.00 for personnel costs.
    Operating Costs Savings. The closure of the Louisville, Kentucky 
office will obviate the need to build out space for two agents. The 
agents are presently in loaned space from another agency. The planned 
lease of office space and tenant finish and equipping that space is 
being avoided by closing the office in Louisville. Approximate savings 
will be $125,000.00-150,000.00 the first year and $12,000.00 per year 
thereafter.

D. Impact on Local Economies

    The planned reclassification of five regional offices is not 
expected to have any impact on the local economies of Seattle, 
Washington; New Orleans, Louisiana; Baltimore, Maryland; Tampa, 
Florida; or Detroit, Michigan, nor will there be any significant impact 
on Long Island, New York, Central Islip, New York or Jacksonville, 
Florida. For the realignment from regional to field offices, the plan 
does not involve terminating existing real estate leases prior to their 
expiration date, nor does it involve leasing addition real estate. 
Moreover, the plan does not contemplate appreciable relocation of staff 
to these large metropolitan areas. With regard to the offices that will 
be closed, these offices have been downsizing to allow management 
greater flexibility in positioning resources. The plan does involve 
terminating some existing real estate leases prior to their expiration 
date, with minimal costs associated with exercising early termination 
clauses which will be more than offset by future savings. Thus, any 
impact on the local economies in terms of housing, schools, public 
services, taxes, employment, and traffic congestion will be non-
existent or insignificant at most.

E. Effect of the Reclassifications on the Availability, Accessibility, 
and Quality of Services Provided for Recipients of Those Services

    The plan was designed to improve the quality and level of service 
provided to stakeholders and affected clients nationwide. The regions 
will receive greater management emphasis than prior to the 
reclassification. Management will be enabled to interact with HUD 
management and clients and law enforcement partners more frequently and 
in greater scope than is now possible. More interaction and attention 
translates into more availability and accessibility of higher quality 
services.

    Dated: March 13, 2012.
David A. Montoya,
Inspector General.
[FR Doc. 2012-6970 Filed 3-21-12; 8:45 am]
BILLING CODE 4210-67-P