Citing Financial Struggles, HUD Rolls Out Restructuring Plan

The Department of Housing and Urban Development today announced it will restructure its multifamily programs and will close 16 small regional offices under its Multifamily Housing Programs and Office of Field Policy and Management. The effort is being made with an eye toward cost savings and financial stability of the department. 

“The current organizational model for HUD is not sustainable from a financial and a service delivery point of view,” said Maurice Jones, HUD’s Deputy Secretary. “We are reviewing every aspect of our operation to determine if we have the right people in the right places and we’re determining where we can be even more efficient, to get the most value out of our limited resources. We’re in a different budget environment and we’re at a point where we must make some extremely tough choices. That being said, we certainly understand that this type of change can be challenging for the agency’s employees and we are committed to moving forward on the plan in a way that is sensitive to the needs and concerns of HUD’s staff.”

HUD has not indicated there will be any change to its single family program offices, although sequester cuts will lead to employee furloughs and expected delays over the course of 2013, HUD said in March. 

The restructuring plan announced Wednesday is expected to save upwards of $40 million and will take two and a half years to implement fully. HUD’s Office of Field Policy and Management will close 16 of its 80 field offices this year, which is estimated to save the agency between $110 and $150 million over a 10-year period.

“The most difficult part of implementing these changes is the appreciation of the very personal impact they have on employees who have dedicated years of their life to the mission of HUD,” Jones said. “Realistically, there is no way to make the kind of structural changes we are talking about without there being some impact on our staff, but, again, we are committed to taking all necessary steps to reduce the negative impact they will feel.”

Written by Elizabeth Ecker

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