[Federal Register Volume 84, Number 228 (Tuesday, November 26, 2019)]
[Notices]
[Pages 65170-65171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25571]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6190-N-01]
Notice of Intent To Close Reno Field Office
AGENCY: Office of Field Policy and Management, HUD.
[[Page 65171]]
ACTION: Notice.
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SUMMARY: This notice advises the public that HUD intends to close the
Reno, NV field office. HUD is providing this notice.
FOR FURTHER INFORMATION CONTACT: Michael Lawyer, Deputy Director of
Operations, Office of Field Policy and Management, Department of
Housing and Urban Development, 451 Seventh Street SW, Room 7108,
Washington, DC 20410; telephone number 317-957-7318 (This is not a
toll-free number). Persons with hearing or speech impairment may
contact this number via TTY by calling the toll-free Federal Relay
Service at 800-877-8339.
SUPPLEMENTARY INFORMATION: In accordance with the Federal Property
Management Reform Act of 2016 (40 U.S.C. 524), HUD is publishing this
notice to provide notice of its intent to close its unoccupied Reno, NV
field office. The Act requires executive departments and agencies to
assess leased space to identify space that is not fully used or
occupied, establish goals and policies that will lead the agency to
reduce excess property and underutilized property, and to transfer and
dispose of excess property as promptly as possible in accordance with
the agency's delegated authority and applicable regulations.
Based upon Section 7(p) of the Housing and Urban Development Act
(42 U.S.C. 3535p), a plan for the 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
publication in the Federal Register with a cost-benefit analysis of the
plan for each affected office. Such cost-benefit analysis shall
include, but not be limited to--(1) An estimate of cost savings
supported by background information detailing the source and
substantiating the amount of the savings; (2) an estimate of the
additional cost which will result from the reorganization; (3) a study
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. Where any of the
above factors cannot be quantified, the Secretary shall provide a
statement on the nature and extent of those factors in the cost-benefit
analysis.
Cost Benefit Analysis
A. Background
HUD's current field structure, consisting of 65 regional and field
offices covering 50 states, the District of Columbia, Guam, and Puerto
Rico, is built on the structure of the former Federal Housing
Administration (FHA), which had insuring offices throughout the
country. As the agency evolved into a cabinet department (1968) its
program portfolio grew and staffing levels rose to more than 18,000 in
1973. As a result of legislative action HUD's program portfolio has
continued to increase in size, complexity and scope, while its staffing
has gradually been reduced by almost two-thirds, to under 7,000.
HUD's existing field office structure is decades old. Advances in
technology have made it possible and more cost effective to manage our
workload in a more centralized fashion. A set of 16 small offices were
successfully closed in Fiscal Year 2014, demonstrating that HUD could
continue to deliver services nationwide from a smaller footprint.
Closing the Reno, NV Field Office, which has no staff, will achieve
operational savings.
The closure of this field office will save money while still
ensuring that HUD can effectively respond rapidly to the ever-evolving
mission and the budget challenges of today and tomorrow. Leveraging
technology has allowed HUD to substantially reduce its footprint and
costs while not significantly affecting the delivery of its services.
B. Description of Proposed Changes
One (1) field office in Reno, NV will be closed. There are no staff
remaining in that office to be impacted. This action will allow the
Department to align resources to more effectively support program
operations and reduce operational cost, while maintaining effective
program delivery in the state of Nevada from the Las Vegas Field
Office.
The proposed changes are expected to produce ongoing cost savings
and make more efficient use of real property assets.
(1) Estimate of Cost Savings
The closure of the Reno, NV field office will eliminate the cost of
office space leases and administrative costs, including transit, mail,
copiers, and telephones, totaling $101,000 annually. The lease cost is
based upon HUD's occupancy agreement with General Services
Administration (GSA).
(2) Estimate of the Additional Cost
Implementation costs of approximately $15,000 are expected in
closing the office; thus, the projected total annual savings will be
gained beginning in Fiscal Year 2021 and every year thereafter.
a. One-Time Costs
One-time costs for space alterations, security and move out
expenses are projected to cost $15,000. There are no early lease
termination fees for this office. There are no remaining employees in
this office, and therefore there are no additional buyout, personal
relocation, severance, or unemployment costs.
b. Reoccurring Costs
Program delivery to the affected jurisdiction is already managed by
program staff in the Las Vegas Field Office, the San Francisco Regional
Office, and other HUD field offices. Minimal additional travel costs
will be incurred by limited staff travel to the affected jurisdictions
to ensure ongoing coordination of program delivery and customer
service.
(3) Study of the Impact on the Local Economy
Any impact on the Reno economy in terms of housing, schools, public
services, taxes, employment and traffic congestion will be negligible.
The office closure should not disrupt the service delivery currently
provided to the community.
(4) Estimate of the Effect of the Reorganization
HUD products and services provided to the communities in the
affected jurisdictions are currently managed remotely from larger HUD
offices, primarily the Las Vegas Field Office, the San Francisco
Regional Office, and other HUD field offices, and this will continue to
be the case.
Based on the time necessary for office closure, and moveout costs,
the closure of the Reno Office will result in minor savings of
approximately $10,000 in Fiscal Year 2020. The closure will not
introduce new recurring costs, and therefore the full savings of
$101,000 per annum is expected in Fiscal Year 2021 and each year
thereafter.
Dated: November 19, 2019.
Benjamin DeMarzo,
Assistant Deputy Secretary for Field Policy and Management.
[FR Doc. 2019-25571 Filed 11-25-19; 8:45 am]
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