[Federal Register Volume 73, Number 178 (Friday, September 12, 2008)]
[Notices]
[Pages 53036-53038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21226]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5261-N-01]


Notice of Reclassification of Four Investigative Field Offices to 
Regional Offices: Cleveland, OH; Baltimore, MD; Tampa, FL; and Seattle, 
WA

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

ACTION:  Notice of reclassification of field offices of investigation 
as regional offices of investigation.

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SUMMARY: This notice advises the public that the HUD/OIG Office of 
Investigation plans to reclassify its Cleveland; Baltimore; Tampa; and 
Seattle field offices as regional offices. The planned reclassification 
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) redeploy resources to 
prevent and detect fraud in new program delivery of CPD and FHA; and 
(3) improve management control and effectiveness, and reduce travel 
costs of management by reducing region size.
    The HUD/OIG Office of Audit, to the extent that it maintains field 
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 field offices.

FOR FURTHER INFORMATION CONTACT: John McCarty, Assistant Inspector 
General for Investigations, Room 8274, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC, 20410-4500, 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 Information 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 the cost-benefit analysis of its plan.

Cost-Benefit Analysis

A. Background

    Since 2002, HUD/OIG staffing has declined from a high of 750 full 
time equivalents (FTEs) to a current level of 650 FTEs. Simultaneous 
with this constriction of staff resources, HUD/OIG has had to contend 
with additional, extraordinary responsibilities associated with the 
September 11, 2001, terrorist attacks and the 2005 natural disasters 
along the Gulf Coast. The staff reductions and unforeseen additional 
responsibilities have caused HUD/OIG Office of Investigation to 
struggle 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 four field offices to 
regional office status at the close of the 90-day period following the 
publication of this notice.

B. Description of Proposed Changes

    At the expiration of 90 days following the publication of this 
notice, the HUD/OIG Office of Investigation will reclassify its 
Cleveland, Ohio; Baltimore, Maryland; Tampa, Florida; and Seattle, 
Washington field offices as regional offices. The Cleveland Regional

[[Page 53037]]

Office will supervise the operations of the existing Cleveland, 
Columbus, and Detroit Field Offices. The Baltimore Regional Office will 
supervise the operations of the Washington, Baltimore, Richmond, 
Virginia, and Greensboro, North Carolina Field Offices. The Seattle 
Regional Office will supervise the operations of the Seattle, San 
Francisco, Billings, Montana, and Sacramento, California Field Offices. 
The Tampa Regional Office will supervise the operations of the Tampa, 
Miami, Jacksonville, Florida and San Juan, Puerto Rico Field Offices. 
Additionally, as part of this reclassification, the New York, New York 
Regional Office will no longer supervise the operations of the Newark, 
New Jersey Field Office; rather, henceforth the Philadelphia, 
Pennsylvania Regional Office will supervise the operations of the 
Newark Field Office. All other existing regional and field office 
jurisdictional boundaries will be unchanged, and the HUD/OIG Office of 
Audit will not participate in this reclassification. 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 four new regional offices will be managed by a GS-15 1811 Special 
Agent-in-Charge (SAC). HUD/OIG additionally plans to supplement the 
management of each of the new regional offices with a GS-14 1811 
Assistant Special Agent-in-Charge (ASAC); currently, at least one ASAC 
is stationed in the Baltimore, Tampa, and Cleveland Field Offices.

C. Costs versus Benefits

1. One-Time Costs
    (a) Personnel relocation costs ($500,000). It is prudent to plan 
for potential relocations that may become necessary to fill vacancies 
and/or back filling of positions. Accordingly, HUD/OIG's plan 
contemplates that up to four relocations may be necessary as a result 
of selections of SAC/ASACs to manage the new regions.
    (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, and 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
    Cost to realign current FTEs ($30,000): The reclassification of the 
four field offices to regional offices will require the creation of 
four SAC positions at the GS-15 level. It is reasonable to presume that 
existing ASACs will compete for these positions, and, thus, the 
likelihood is that the additional cost involved will be limited to the 
pay differential between GS-14 and GS-15 pay levels. Moreover, in light 
of Law Enforcement Availability Pay (LEAP) differentials payable to 
ASACs and SACs, combined with the curtailing effect that the overall 
GS-15 step 10 salary cap has on LEAP differentials payable to GS-15 
SACs, it is believed that costs associated with the creation of the SAC 
positions will be negligible, if anything. Likewise, it is reasonable 
to presume that existing GS-13s will compete for ASAC, and, thus, the 
additional cost involved will be limited to the pay differential 
between GS-13 and GS-14 pay levels. HUD/OIG estimates that this 
differential to be approximately $30,000 annually.
    No additional or supplemental funding is expected. All additional 
costs will be funded within the ordinary budgets.
3. Dollar Savings Resulting From Elevation of Offices
    Management travel costs: A necessary incident to the remote of 
field offices is travel costs for supervisors to travel to the office 
to supervise/review staff and to liaison with stakeholders. HUD/OIG 
believes that contracting the geographic footprint of his regions--as 
is contemplated by this plan--will correspondingly reduce management 
travel. However, in light of the current volatile nature of energy and 
transportation cost, HUD/OIG is unable accurately quantify such 
savings.
D. Impact on Local Economies
    The planned reclassification of four field offices is not expected 
to have any impact on the local economies of Cleveland, Baltimore, 
Tampa, or Seattle. 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. 
Thus, any impact on the local economies in terms of housing, schools, 
public services, taxes, employment, and traffic congestion will be 
insignificant.
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 new 
regions will receive greater management emphasis than prior to the 
reclassification. Management in the new regions--because it will be 
less dispersed and remote--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. Similarly, the footprints of HUD/OIG's existing regions will 
shrink, and the incumbent SACs will be empowered to redirect attention 
that they currently devote to Cleveland, Detroit, Washington, 
Baltimore, Tampa, Miami, Seattle, San Francisco, Columbus, Sacramento, 
San Juan, Richmond, Greensboro, and Jacksonville to the remaining field 
offices under their supervision. Again, under the circumstances 
discussed in this notice, more attention translates into more 
availability and accessibility of higher quality services.
    For the reasons presented this notice, HUD/OIG intends to proceed 
to reclassify four investigative field offices as regional offices--
Cleveland, Ohio; Baltimore, Maryland; Tampa, Florida; and Seattle, 
Washington--at the expiration of the 90-day period from the date of 
publication of this notice. The attachment to this notice presents the 
proposed staffing, and geographic coverage that will result from the 
reclassification of the four field offices of investigations.

    Dated: September 8, 2008.
Kenneth M. Donohue,
Inspector General.

[[Page 53038]]



              Attachment--Proposed Staffing and Coverage of Realignment of Office of Investigations
                                [BOLDED Cities are proposed new regional offices]
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     Projected FTEs by region               Offices                Current states            Proposed states
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Boston (12)......................  Boston, Manchester,        Massachusetts, Rhode      Massachusetts, Rhode
                                    Hartford.                  Island, Connecticut,      Island, Connecticut,
                                                               New Hampshire, Maine,     New Hampshire, Maine,
                                                               Vermont.                  Vermont.
New York City (19)...............  New York City, Buffalo...  New York, New Jersey....  New York only.
Philadelphia (19)................  Philadelphia, Newark,      ........................  Pennsylvania, New
                                    Pittsburgh.                                          Jersey, Delaware.
Baltimore (19)...................  Baltimore, Richmond,       Pennsylvania, Delaware,   Maryland, DC, Virginia,
                                    Greensboro.                Maryland, DC, Virginia,   West Virginia, North
                                                               West Virginia.            Carolina.
Atlanta (28).....................  Atlanta, Knoxville         Georgia, Alabama, South   Georgia, Alabama, South
                                    Birmingham,.               Carolina, North           Carolina, Tennessee,
                                                               Carolina, Tennessee,      Kentucky.
                                                               Kentucky, Florida,
                                                               Puerto Rico,
                                                               Mississippi.
Tampa (16).......................  Tampa, Miami,              ........................  Florida, Puerto Rico,
                                    Jacksonville, Puerto                                 Virgin Island.
                                    Rico.
Chicago (26).....................  Chicago, Minneapolis,      Illinois, Indiana,        Illinois, Indiana,
                                    Indianapolis.              Wisconsin, Minnesota,     Wisconsin, Minnesota.
                                                               Ohio, Michigan.
Cleveland (23)...................  Cleveland, Detroit,        ........................  Ohio, Michigan.
                                    Columbus.
Arlington (29)...................  Arlington, Houston, San    Texas, Oklahoma,          Texas, Oklahoma,
                                    Antonio, Oklahoma City.    Arkansas, New Mexico.     Arkansas, New Mexico.
Kansas City (19).................  Kansas City, Denver, St.   Kansas, Missouri,         Kansas, Missouri,
                                    Louis, Salt Lake City.     Colorado, Utah, Iowa,     Colorado, Utah, Iowa,
                                                               Nebraska, South Dakota,   Nebraska, South Dakota,
                                                               North Dakota, Wyoming.    North Dakota, Wyoming.
Los Angeles (13).................  Los Angeles, Phoenix, Las  California, Nevada,       Southern California,
                                    Vegas.                     Arizona, Washington,      Nevada, Arizona,
                                                               Oregon, Idaho, Montana,   Hawaii, Guam.
                                                               Alaska Hawaii, Guam.
San Francisco (14)...............  San Francisco,             ........................  Northern California,
                                    Sacramento, Seattle,                                 Washington, Oregon,
                                    Billings.                                            Idaho, Montana, Alaska.
New Orleans (15).................  New Orleans, Jackson,      Louisiana, Mississippi..  Louisiana, Mississippi.
                                    Arlington, Hattiesburg.
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* New Orleans will remain staffed at 15 rather then projected needed of 24. Other 9 FTE will be used to adjust
  levels of other regions.
** Projected FTE includes administrative staff.

[FR Doc. E8-21226 Filed 9-11-08; 8:45 am]
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