[Federal Register Volume 62, Number 225 (Friday, November 21, 1997)]
[Notices]
[Pages 62478-62484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30763]
[[Page 62477]]
_______________________________________________________________________
Part VI
Department of Housing and Urban Development
_______________________________________________________________________
The HUD 2020 Management Reform Plan; Notice of New HUD Field Structure;
Notice
Federal Register / Vol. 62, No. 225 / Friday, November 21, 1997 /
Notice
[[Page 62478]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4266-N-02]
The HUD 2020 Management Reform Plan; Notice of New HUD Field
Structure
AGENCY: Office of the Secretary, HUD.
ACTION: Notice of the New Field Structure under the HUD 2020 Management
Reform Plan and Cost-Benefit Analysis.
-----------------------------------------------------------------------
SUMMARY: On August 12, 1997, HUD published in the Federal Register
notice of the ``HUD 2020 Management Reform Plan.'' The HUD 2020
Management Reform Plan is HUD's plan for significant management reforms
at the Department. The reforms contained in the plan are directed
toward (1) empowering people and communities to improve themselves and
(2) restoring HUD's reputation and credibility by improving the
efficiency and effectiveness of the Department's programs, operations
and provision of services.
This notice presents the new HUD Field structure under the HUD 2020
Management Reform Plan, including an analysis of the costs and benefits
of that plan. The new Field structure is designed to reallocate the
Department's resources to strengthen service delivery from HUD's
current 81 Field Offices. The HUD 2020 Management Reform Plan does not
result in the closing of any HUD offices and calls for no reduction or
transfer in the location or in the amount of services currently
provided by the Department to its constituents.
FOR FURTHER INFORMATION CONTACT: For further information, contact the
Office of Departmental Operations and Coordination, the Department of
Housing and Urban Development, 451 Seventh Street, SW, Washington DC
20410, (202) 708-0988. (This is not a toll free number.) Comments or
questions can be submitted through the Internet to
Candis__B.__Harrison@hud.gov. More information on HUD's Management
Reform Plan can be found on HUD's Home Page on the World Wide Web at
http://www.hud.gov, and the plan is available at http://www.hud.gov/
reform/mrindex.html.
SUPPLEMENTARY INFORMATION:
I. Introduction and Background
On August 12, 1997 (62 FR 43204), HUD published in the Federal
Register notice of the ``HUD 2020 Management Reform Plan.'' The HUD
2020 Management Reform Plan is HUD's plan for significant management
reforms at the Department. This plan is directed to restoring HUD's
reputation and credibility by improving the efficiency and
effectiveness of the Department's programs, operations and delivery of
services. The restructuring of HUD's internal operations (as distinct
from its services to its constituency) is needed to resolve a series of
management deficiencies identified by the Secretary, the General
Accounting Office, and the Office of the Inspector General. The
restructuring of HUD's internal operations includes restructuring of
the Department's Field Offices. Indeed, HUD's internal operations at
its Field Offices will undergo significant change under the HUD 2020
Management Reform Plan. The change is designed to strengthen HUD's
field operations.
For some time, the Department has needed to find new and more
efficient ways to carry out its mission because of budget constraints
and related downsizing pressures. One strategy that HUD will pursue in
this connection is the consolidation of certain internal operations and
moving the responsibility for these operations to field locations.
Consolidation of operations in field locations does not constitute a
novel way of doing business. Many private sector companies reorganized
and restructured under this type of model over a decade ago. Models of
this type in the financial services industry are particularly
compelling and relevant to HUD. Over the past decades, many banks, such
as Citibank and NationsBank, consolidated their routine functions into
centralized ``back office'' processing centers and established ``store-
front'' customer offices closer to their markets. HUD's consolidated
operation centers outlined in the HUD 2020 Management Reform Plan are
based in part on these private sector models.
Therefore, to address the Department's current outdated and
outmoded top-down Headquarters/Field structure, the HUD 2020 Management
Reform Plan reallocates the Department's resources in a way that is
designed to strengthen HUD's current 81 Field Offices, and improve
service delivery capacity. The plan does this by creating at every
Field Office a Community Builder Staff with the ability to provide the
full range of HUD programs, liaison, and customer services to
individuals, community organizations, and governments. This makes the
Field Offices more customer-friendly and community-oriented. In
creating these offices, there is no reduction or transfer in the
location or amount of services provided by the Department to the
recipients of its services. Additionally, no offices are being closed
as a result of this restructuring. The design of the plan is for HUD's
81 Field Offices to remain and to be better focused in serving their
constituents. Section III of this notice provides a cost-benefit
analysis of the new field structure.
II. Description of Changes
The HUD 2020 Management Reform Plan will fundamentally alter the
structure of HUD and the way it serves America's communities. The
current field structure has State offices with a staff of program-
specific employees. This structure will be replaced by Field Offices
staffed with Community Builders and Public Trust Officers. While none
of the Field Offices will close, their internal operations will change
dramatically, becoming processing centers and new Service Centers. In
this way, HUD will maintain an enhanced presence in the communities
while improving the allocation of its resources.
Consolidated Operations Centers
The HUD 2020 Management Reform Plan provides for the consolidation
of several major functions of the Department. The most important
consolidation efforts involve creating both department-wide and
program-specific centers. Overall, the HUD 2020 Management Reform Plan
calls for the establishment of 17 types of consolidated operation
centers in the field. The location of these centers reflects a
geographic balance throughout the United States. The major
consolidations include an Enforcement Center, a Real Estate Assessment
Center, Section 8 Financial Management Center, Single Family
Homeownership Centers and the Chief Financial Officer's (CFO)
Accounting Center. The specific operations of these centers were
discussed in more detail in the August 12, 1997 Federal Register
notice. (See 62 FR 43212-43213.)
The consolidation of operations and functions in certain centers is
exclusively a redesign of internal processing. While the consolidation
may include the transfer of certain internal functions from
Headquarters to the field or from one Field Office to another, there
will be no impact on the level of government services to the local area
since these functions by nature are not location specific. Since the
consolidation of processing functions is designed to speed processing
times and increase accuracy, the generalized impact is expected to be
beneficial to
[[Page 62479]]
program customers, regardless of geographic location. The establishment
of consolidated operations centers in the field will bring HUD services
closer to the customers who need these services, and closer to the
customers who can help ensure that HUD is making the best decisions
that it can with respect to its services and operations. A complete
list of HUD's Consolidated Operations follows:
HUD's Consolidated Operations Centers
------------------------------------------------------------------------
Consolidated operation Function
------------------------------------------------------------------------
Assessment Center............ Standardizes the financial and physical
evaluations of housing and public
housing portfolios.
Enforcement Center........... Takes aggressive action against troubled
housing and public housing portfolios
that fail physical and financial
inspections, along with enforcement
actions for FHEO and CPD grantees.
Section 8 Financial Integrates and restructures the financial
Management Center. management systems and payment processes
for all Section 8 programs.
Title I Asset Recovery Center Manages the collection of deficiency
balances owed to FHA as a result of
buyer defaults.
FHA/Single Family Manage insurance endorsements, technical
Homeownership Centers (4). reviews, underwriting, loss mitigation,
marketing and outreach, and lender
monitoring.
Property Disposition Centers Manage the foreclosure and disposition of
(2). HUD-owned and HUD-assigned properties.
FHA Multifamily Hubs (18).... Supervise multifamily centers and
administer all FHA multifamily mortgage
insurance, direct loan, and capital
grant programs with the exception of
Multifamily Property Disposition,
Processing of Rent Supplement and
Section 8 Voucher/Monthly billings and
coinsured loans.
FHA Multifamily Program Administer all FHA multifamily mortgage
Operations Centers (33). insurance, direct loan, and capital
grant programs with the exception of
Multifamily Property Disposition, the
processing of Rent Supplement and
Section 8 Voucher/Monthly Billings and
coinsured loans.
Field Legal Centers (8)...... Provide full range of legal services.
Field Legal Hubs (22)........ Provide program specific legal services
to Housing and PIH.
PIH Troubled Agency Recovery Develop and implement strategies to
Centers (2). improve the performance of troubled
PHAs.
PIH Special Applications Administers the processing of PIH
Center. demolition/disposition, mixed-income
allocation plans, and 5(h) Homeownership
applications.
PIH Grants Processing Center. Manages all aspects of competitive
grants, as well as the public housing
operating and capital funds.
PIH Hubs (27)................ Supervise and perform all PIH functions
within a defined geographic area,
including program performance,
administration, technical assistance and
compliance functions.
PIH Program Centers (16)..... Perform all PIH program performance,
administration, technical assistance and
compliance functions.
Fair Housing Hubs (10)....... Supervise all FHEO functions within a
defined geographic area. Perform all
FHEO compliance and enforcement or
complaint intake functions for the
defined area.
Fair Housing Program Centers Perform all FHEO compliance and
(18). enforcement functions.
Fair Housing Local Sites (24) Perform all FHEO compliance and
enforcement functions for a local
jurisdiction.
Economic Development and Coordinates all HUD economic development
Empowerment Service. and job skills programs to provide
improved focus on community empowerment.
Administrative Service Support Field Offices with such services
Centers (3). as information technology, human
resources, procurement and space
planning.
Employee Service Center...... Handles all payroll, benefits and
counseling services.
CFO Accounting Center........ Manages all field program and
administrative accounting operations.
HUD Area Office.............. In addition to being the location of one
or more consolidated program operations
hubs and centers, Area Office operations
will consist of community resource and
liaison services for public-private
partnerships, marketing and outreach for
homeownership, community and economic
development, technical assistance and
general trouble-shooting. They will also
continue to perform the full range of
field management functions.
Area Offices will continue to perform
major management responsibilities (e.g.
funding, policy interpretation,
monitoring and assistance) relating to
FHEO, CPD, Housing, Public and Indian
Housing Programs, as well as legal
counsel and administrative support.
Community Service Center..... Coordinators and Community Builders, with
direct linkages to consolidated program
operations, will provide the broad range
of HUD programs, liaison and customer
services to state, local and community
organizations, that is, for public and
assisted housing, homeownership,
community and economic development, fair
housing, technical assistance, public-
private partnerships and complaints
resolution.
------------------------------------------------------------------------
Field Office Operations by Location
The restructuring of program operations in the Field Offices is
designed substantially to increase the current level and quality of
service to local communities. The HUD Management Reform Plan states
that ``it is paramount that HUD retain its scope and presence in
communities across the country; HUD's 81 Field Offices will remain and
be better focused in serving their constituents.'' The plan calls for
every HUD Field Office to have a Community Service Center and the
establishment of community builders to augment the quality and quantity
of service delivery to local communities. With respect to the location
of the consolidated centers to be established throughout the U.S., the
general criteria for determining the locations of these centers are as
follows:
Economy of Scale/Scope. Greater workload productivity and customer
service by consolidating program operations at one or more sites as
compared with current operations.
Projected Population Bases. Anticipated location of future
customers, based on projected metropolitan area growth.
Workload and Portfolio. Current/anticipated concentration of
program workload portfolio.
[[Page 62480]]
Location of Industry Partners. Sites convenient to the Department's
primary program users/facilities.
Accessibility. Convenience of travel/transportation and other
business requirements.
Consolidation of functions is designed to achieve consistency and
uniformity in the performance of these functions, and to avoid
duplication of effort and streamline operations. Consistency and
uniformity make these functions easier for HUD employees to perform,
and make HUD programs simpler and more understandable for HUD's program
participants. Under this restructuring of internal, back office
operations, there is no reduction or transfer in the location or amount
of services provided by the Department to the recipients of its
services as a result of the HUD 2020 Management Reform Plan. A complete
description of how HUD's internal operations will be structured at each
field location follows:
New HUD Field Structure Locations And Program Operations
------------------------------------------------------------------------
Location Proposed HUD operations
------------------------------------------------------------------------
Albany....................... Community Service Center, Local
Administrative Support, Title I Asset
Recovery Center.
Albuquerque.................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Anchorage.................... Community Service Center, CPD Field
Office, FHA Multifamily Programs
Operation Center, Local Administrative
Support.
Atlanta...................... Administrative Service Center, Area
Office, Community Service Center, CPD
Field Office, Fair Housing Hub, Fair
Housing Program Center, FHA/Single
Family Homeownership Center, FHA
Multifamily Hub, Field Legal Center, PIH
Hub, Property Disposition Center.
Baltimore.................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Program
Center, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Hub.
Bangor....................... Community Service Center.
Birmingham................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Field Legal Hub, Local
Administrative Support, PIH Hub.
Boise........................ Community Service Center.
Boston....................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Hub, Fair
Housing Program Center, Federal Tort
Claims Center, FHA Multifamily Hub,
Field Legal Center, Local Administrative
Support, PIH Hub.
Buffalo...................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Hub.
Burlington................... Community Service Center.
Camden....................... Community Service Center.
Caribbean.................... Area Office, Community Service Center,
CPD Field Office, FHA Multifamily
Programs Operation Center, Fair Housing
Local Site, Field Legal Hub, Local
Administrative Support, PIH Hub.
Casper....................... Community Service Center.
Charleston................... Community Service Center, FHA Multifamily
Programs Operation Center, Local
Administrative Support.
Chicago...................... Area Office, Community Service Center,
CPD Field Office, Employee Service
Center, FHA Multifamily Hub, Field Legal
Center, Multifamily Quality Assurance
Unit, PIH Special Applications Center,
PIH Hub, Fair Housing Hub, Fair Housing
Program Center.
Cincinnati................... Community Service Center, Local
Administrative Support.
Cleveland.................... Community Service Center, FHA Multifamily
Programs Operation Center, Field Legal
Hub, PIH Troubled Agency Recovery
Center, Local Administrative Support,
PIH Hub.
Columbia..................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Columbus..................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Program
Center, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Program Center.
Coral Gables................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Program
Center, FHA Multifamily Programs
Operation Center, Field Legal Hub, Local
Administrative Support, PIH Hub.
Dallas....................... Community Service Center, Local
Administrative Support.
Denver....................... Administrative Service Center, Area
Office, Community Service Center, CPD
Field Office, Fair Housing Hub, Fair
Housing Program Center, FHA/Single
Family Homeownership Center, FHA
Multifamily Hub, Field Legal Center,
Local Administrative Support, PIH Hub.
Des Moines................... Community Service Center, FHA Multifamily
Programs Operation Center, Local
Administrative Support.
Detroit...................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Program
Center, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Hub.
Fargo........................ Community Service Center.
Flint........................ Community Service Center.
Fort Worth................... Area Office, CFO Accounting Center,
Community Service Center, CPD Field
Office, Fair Housing Hub, Fair Housing
Program Center, FHA Multifamily Hub,
Field Legal Center, Local Administrative
Support, PIH HUB, Property Disposition
Center.
Fresno....................... Community Service Center.
Grand Rapids................. Community Service Center, Local
Administrative Support.
Greensboro................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Hub.
Hartford..................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Headquarters................. Assessment Center, Enforcement Center,
PIH Grants Processing Center, Economic
Development and Empowerment, Service.
[[Page 62481]]
Helena....................... Community Service Center.
Honolulu..................... Community Service Center, CPD Field
Office, FHA Multifamily Programs
Operation Center, Fair Housing Local
Site, Local Administrative Support.
Houston...................... Community Service Center, Fair Housing
Local Site, FHA Multifamily Programs
Operation Center, Local Administrative
Support, PIH Program Center.
Indianapolis................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Jackson...................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Jacksonville................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Hub.
Kansas City, KS.............. Area Office, Community Service Center,
CPD Field Office, Fair Housing Hub, Fair
Housing Program Center, FHA Multifamily
Hub, Field Legal Hub, Local
Administrative Support, PIH Hub.
Kansas City, MO.............. Section 8 Financial Management Center.
Knoxville.................... Area Office, Community Service Center,
Fair Housing Local Site, FHA Multifamily
Programs Operation Center, Local
Administrative Support, PIH Program
Center.
Las Vegas.................... Community Service Center, FHA Multifamily
Programs Operation Center, Local
Administrative Support.
Little Rock.................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Hub.
Los Angeles.................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Program
Center, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Hub.
Louisville................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Program
Center, FHA Multifamily Programs
Operation Center, Local Administrative
Support, PIH Hub.
Lubbock...................... Community Service Center, Local
Administrative Support.
Manchester................... Community Service Center, FHA Multifamily
Programs Operation Center, Local
Administrative Support.
Memphis...................... Community Service Center, Field Legal
Hub, Local Administrative Support, PIH
Troubled Agency Recovery Center.
Milwaukee.................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Minneapolis/St. Paul......... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Hub, Field Legal
Hub, Local Administrative Support, PIH
Hub.
Nashville.................... Community Service Center, CPD Field
Office, FHA Multifamily Programs
Operation Center, Local Administrative
Support, PIH Program Center.
New Orleans.................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Program
Center, FHA Multifamily Programs
Operation Center, Local Administrative
Support, PIH Hub.
New York City................ Administrative Service Center, Area
Office, Community Service Center, CPD
Field Office, Fair Housing Hub, Fair
Housing Program Center, FHA Multifamily
Hub, Field Legal Center, PIH Hub.
Newark....................... Area Office, Community Service Center,
CPD Field Office, FHA Multifamily
Programs Operation Center, Local
Administrative Support, PIH Hub.
Oklahoma City................ Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Omaha........................ Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Field Legal Hub, Local
Administrative Support, PIH Program
Center.
Orlando...................... Community Service Center.
Philadelphia................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Hub, Fair
Housing Program Center, FHA/Single
Family Homeownership Center, FHA
Multifamily Hub, Field Legal Center,
Local Administrative Support, PIH Hub.
Phoenix...................... Community Service Center, FHA Multifamily
Programs Operation Center, Local
Administrative Support.
Pittsburgh................... Community Service Center, CPD Field
Office, Fair Housing Local Site, FHA
Multifamily Programs Operation Center,
Field Legal Hub, Local Administrative
Support, PIH Hub.
Portland..................... Community Service Center, CPD Field
Office, Fair Housing Local Site, FHA
Multifamily Programs Operation Center,
Local Administrative Support, PIH
Program Center.
Providence................... Community Service Center, FHA Multifamily
Programs Operation Center, Local
Administrative Support.
Reno......................... Community Service Center.
Richmond..................... Community Service Center, CPD Field
Office, Fair Housing Local Site, FHA
Multifamily Programs Operation Center,
Local Administrative Support, PIH
Program Center.
Sacramento................... Community Service Center, Local
Administrative Support.
Salt Lake City............... Community Service Center, Local
Administrative Support.
San Antonio.................. Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Hub.
San Diego.................... Community Service Center, Local
Administrative Support.
San Francisco................ Area Office, Community Service Center,
CPD Field Office, Fair Housing Hub, Fair
Housing Program Center, FHA Multifamily
Hub, Field Legal Center, Local
Administrative Support, PIH Hub.
[[Page 62482]]
Santa Ana.................... Community Service Center, FHA/Single
Family Homeownership Center, Local
Administrative Support.
Seattle...................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Hub, Fair
Housing Program Center, FHA Multifamily
Hub, Field Legal Hub, Local
Administrative Support, PIH Hub.
Shreveport................... Community Service Center, Local
Administrative Support.
Sioux Falls.................. Community Service Center.
Spokane...................... Community Service Center.
Springfield.................. Community Service Center.
St. Louis.................... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, FHA Multifamily Programs Operation
Center, Local Administrative Support,
PIH Program Center.
Tampa........................ Community Service Center.
Tucson....................... Community Service Center.
Tulsa........................ Community Service Center, Local
Administrative Support.
Washington, DC............... Area Office, Community Service Center,
CPD Field Office, Fair Housing Local
Site, Local Administrative Support, PIH
Program Center.
Wilmington................... Community Service Center.
------------------------------------------------------------------------
III. Impact of Restructuring of Internal Operations
HUD is publishing its cost-benefit analysis of the reorganization
with this notice. (The reorganization of HUD proposed by the HUD 2020
Management Reform Plan does not result in the closing of any HUD
offices or in the reduction of services. Therefore, publication of this
study is not required, but HUD is publishing it as a matter of policy
to provide background for its organizational decisions.) HUD considered
the costs and benefits that the reorganization would have particularly
on HUD's field operations since the restructuring of internal
operations in the field is more profound than in Headquarters. HUD's
analysis of costs and benefits includes:
(1) An estimate of cost savings supported by the 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.
A. Cost-Benefit Analysis
Former Secretary Henry Cisneros committed to the Congress to reduce
personnel by 3,000 employees by or near the year 2000. HUD intends to
honor that commitment, and the HUD 2020 Management Reform Plan targets
the year 2002 as the date by which the reduction will be achieved. By
the year 2002, HUD staff will be reduced from its October 1, 1996 level
of 10,500 employees to 7,500 employees. The HUD 2020 Management Reform
Plan presents a new HUD that is staffed by this workforce of 7,500
employees. This restructuring of internal operations presented in the
HUD 2020 Management Reform Plan is based on the principle that HUD's
workload can be handled by a reduced workforce. The consolidation of
functions is designed to make it possible for a HUD workforce of 7,500
employees to handle effectively and efficiently those functions that
HUD must carry out to serve its constituents successfully.
Costs associated with the HUD 2020 Management Reform Plan amount to
$289 million. These costs are related to employee buyouts and
relocations, facility modifications and information technology for the
new centers, and contract support. Reform costs appear only in fiscal
years 1998 and 1999 and would be entirely funded within budget requests
for those years.
Savings from the HUD 2020 Management Reform Plan begin to accrue in
fiscal year 1999 and are primarily realized through reduced personnel
costs and related reduced facilities needs. Figure 1 presents the
analysis of projected savings from implementation of the Plan. The net
present value of savings computed through fiscal year 2012 equates to
$1.4 billion. Stated simply, the Department's planned spending for
management is less under the Plan than it otherwise would have been.
The value of those savings through 2012 is $1.4 billion, in today's
dollars.
Because the entire cost of reform will be accommodated within the
resources already available or planned for the Department, there is no
additional cost of the HUD 2020 Management Reform Plan. The investments
necessary to achieve the reforms will be funded by reallocations within
the Department's existing budget or by savings generated by the Plan.
Hence, there is no recovery period (as that term is commonly used).
B. Impact on Local Economies
The HUD 2020 Management Reform Plan calls for significant
redeployment of HUD staff. Nonetheless, the proposed reorganization
will have only a minimal economic impact on any single locality.
Moreover, HUD expects that as the reforms contained in this Plan take
effect, positive economic effects will accrue in all of the communities
HUD serves, due to the Department's greater efficiency and
responsiveness to addressing their needs.
C. Impact on the Quality of Services
The Department's main goal in implementing the HUD 2020 Management
Reform Plan is to improve the quality of services it provides and to do
so in the most efficient, fiscally responsible manner possible. The
overall effect of the proposed reforms is to change fundamentally the
way HUD works. These reforms will make the agency more efficient,
competent and capable of carrying out HUD's dual mission--empowering
communities and restoring the public trust. HUD expects that its
ability to provide services that facilitate community empowerment will
be improved through:
--Proposed legislative reforms to create performance-based grants--many
communities' planning processes are hampered by the uncertainty
associated with the need to apply for competitive grants funds each
year. The creation of performance-based formula grant programs for
homeless assistance and Public and Indian Housing will enable
communities to plan for their futures with an
[[Page 62483]]
assurance of funding to make those plans a reality.
--The Community Builder position--in addition to other HUD staff, there
will be in every Field Office a cadre of highly trained individuals who
are specifically dedicated to working with HUD's partners and customers
in helping them to access the full range of HUD services. Since HUD
will have consolidated many program operations into ``back-office''
processing centers away from the Field Offices, these staff will be
focused only on helping communities to address their housing and
community development needs.
Although there will be a reduction in Field Office staff levels,
much of this reduction will be reflected in the segregation of
processing functions to centers and hubs. Community Builders--linked by
state-of-the-art technology to program centers, hubs, back office
processing centers, and policy makers--will be responsible for meeting
their communities' service needs. This specialization will thus enhance
the public's access to high-quality services.
Other reforms--from the consolidation of program operations to the
creation of the Enforcement Center and legislative reforms to
facilitate enforcement actions--will improve the quality of HUD
services by strengthening the integrity of the underlying programs.
Moreover, HUD's new Public Trust Officers will focus on oversight,
leaving other staff available to provide customer service and
processing as their primary functions. Thus, HUD expects to see
improvements in all aspects of departmental operations and service
delivery to the public.
IV. Conclusion
The HUD 2020 Management Reform Plan states that ``it is paramount
that HUD retain its scope and presence in communities across the
country; HUD's 81 Field Offices will remain and be better focused in
serving their constituents.'' HUD's plan calls for an increase in area
community service centers and the establishment of community builders
to augment the quality and quantity of service delivery to local
communities. Through implementation of the HUD 2020 Management Reform
Plan, HUD will maintain its presence in the communities while
allocating resources the way a customer-friendly Department should.
Dated: November 18, 1997.
Andrew Cuomo,
Secretary.
BILLING CODE 4210-32-P
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[GRAPHIC] [TIFF OMITTED] TN21NO97.014
[FR Doc. 97-30763 Filed 11-19-97; 10:24 am]
BILLING CODE 4210-32-C
