Notice of Intent To Close 16 Field Offices, 24765-24766 [2013-09799]

Download as PDF Federal Register / Vol. 78, No. 81 / Friday, April 26, 2013 / Notices Office of Real Property Utilization and Disposal, 1800 F Street NW., Room 7040 Washington, DC 20405, (202) 501–0084; Interior: Mr. Michael Wright, Acquisition & Property Management, Department of the Interior, 1801 Pennsylvania Ave., NW., 4th Floor, Washington, DC 20006: (202) 254–5522; Navy: Mr. Steve Matteo, Department of the Navy, Asset Management Division, Naval Facilities Engineering Command, Washington Navy Yard, 1330 Patterson Ave., SW., Suite 1000, Washington, DC 20374; (202)685–9426; (This is not tollfree numbers). Dated: April 18, 2013. Mark Johnston, Deputy Assistant Secretary for Special Needs. TITLE V, FEDERAL SURPLUS PROPERTY PROGRAM FEDERAL REGISTER REPORT FOR 04/26/2013 Suitable/Available Properties California Tract 104–02 Joshua Tree Nat’l Park Twentynine CA 92277 Landholding Agency: Interior Property Number: 61201320001 Status: Unutilized Comments: off-site removal only; 160 sf.; storage; deteriorated; extensive repairs needed; rodent feces throughout; secured area; contact Interior for accessibility/ removal requirements Hawaii Building 1227 Marine Corps Base Kaneohe HI 96863 Landholding Agency: Navy Property Number: 77201320001 Status: Excess Comments: off-site removal only; 768 sf.; grease rack; 12+ months vacant; poor conditions; secured area; contact Navy for info. on accessibility/removal reqs. Texas Building 48 2881 F&B Rd. College Station TX Landholding Agency: Agriculture Property Number: 15201320001 Status: Excess Comments: 1,344 sf; double-wide trailer; 24 months vacant; floors and wall deteriorated Land New York erowe on DSK2VPTVN1PROD with NOTICES Building Arizona Building 1535—Credit Union W. N. 138th Ave. Glendale AZ 85309 Landholding Agency: Air Force Property Number: 18201320001 Status: Excess Comments: w/in secured area; public access denied & no alternative method to gain access w/out compromising nat’l security Reasons: Secured Area [FR Doc. 2013–09592 Filed 4–25–13; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5698–N–01] Notice of Intent To Close 16 Field Offices Office of Field Policy and Management, HUD. ACTION: Notice. AGENCY: Building AEI Radio Communication Link Repeater Site Houck Mountain Rd. Walton NY 11430 Landholding Agency: GSA Property Number: 54201320001 Status: Excess GSA Number: NY–0976–AA Comments: 9.5 acres; majority of property is undeveloped forest land VerDate Mar<15>2010 Unsuitable Properties 17:39 Apr 25, 2013 Jkt 229001 This notice advises the public that HUD intends to close the following 16 field offices: Camden, NJ; Syracuse, NY; Orlando, FL; Tampa, FL; Springfield, IL; Cincinnati, OH; Flint, MI; Grand Rapids, MI; Shreveport, LA; Dallas, TX; Lubbock, TX; Tucson, AZ; Fresno, CA; Sacramento, CA; San Diego, CA; and Spokane, WA. HUD is providing this notice in accordance with the 42 U.S.C. 3535. FOR FURTHER INFORMATION CONTACT: Honor Garcia-Tomchick, Department of Housing and Urban Development, 451 Seventh Street SW., Room 7108, Washington, DC 20410; mhonor.garciatomchick@hud.gov, telephone number, 202–708–2426; TTY number for the hearing- and speech-impaired 202–708– 2565 (these telephone numbers are not toll-free). SUPPLEMENTARY INFORMATION: In accordance with the Presidential Memorandum 2010–07—Disposing of Unneeded Federal Real Estate (75 FR 33987, June 16, 2010), HUD is publishing this notice to provide notice of its intent to close 16 small field offices. The memorandum directs executive departments and agencies to accelerate efforts in identifying and eliminating excess properties. Agency actions are to include making better use of real property assets as measured by utilization and occupancy rates; eliminating lease arrangements that are not cost effective; pursuing consolidation opportunities within and across agencies; and increasing occupancy rates in current facilities through innovative approaches to space SUMMARY: PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 24765 management and alternative workplace arrangements. Agencies are also directed to accelerate efforts to identify cost cutting measures to reduce operating costs. 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 80 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 to approximately 9,300. 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. Additionally, the standardization of processes in some of our largest programs (Multifamily Housing, along with troubled Public and Indian Housing workload, enforcement activity, and centralized administrative work) has also led to a diminished need for staffing in each current location. Closing these small field offices will allow HUD to realign staff resources to E:\FR\FM\26APN1.SGM 26APN1 24766 Federal Register / Vol. 78, No. 81 / Friday, April 26, 2013 / Notices administrative costs as well as salary and benefit costs from the 50–75 percent of affected employees who may take advantage of the buyout. B. Description of Proposed Changes Sixteen (16) small field offices will be closed, affecting approximately 120 of HUD’s 9,300 employees. This action will allow the Department to align staff resources to more effectively support program operations and reduce operational cost, while maintaining effective program delivery to the affected jurisdictions. The offices to be closed are: Camden, NJ; Syracuse, NY; Orlando, FL; Tampa, FL; Springfield, IL; Cincinnati, OH; Flint, MI; Grand Rapids, MI; Shreveport, LA; Dallas, TX; Lubbock, TX; Tucson, AZ; Fresno, CA; Sacramento, CA; San Diego, CA; and Spokane, WA. Employees who work in the aforementioned 16 field offices will have the option to either take a buyout or continue their HUD careers in other locations through directed reassignments with relocation entitlements. The proposed changes are expected to produce significant administrative savings and will result in increased occupancy rates in other existing facilities, thus making more efficient use of real property assets as measured by utilization and occupancy rates. erowe on DSK2VPTVN1PROD with NOTICES best support program delivery, and will achieve operational savings. The reduction in the number of field offices helps 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. a. One Time Costs i. Early lease termination cost ($108,000–$211,000). The early lease termination cost range is based on GSA’s ability to find a replacement lessee for the office space. ii. Buyout cost (approximately $2.3 million–$3.4 million). It is estimated that 50–75 percent of the employees in the 16 field offices will take the buyout. The anticipated total cost includes the buyout and estimated terminal leave costs. iii. Personnel relocation cost (approximately $2.2 million–$4.3 million). It is estimated between 25–50 percent in the 16 field offices will opt to continue their HUD careers in other locations via directed reassignments, with relocation entitlements. iv. Severance or unemployment compensation costs ($0). No severance costs are associated with this initiative since no termination of staff is expected. v. Office closure costs ($1.3 million). The estimated office closure costs include tenant improvement costs, project cancellation costs, physical property removal and restoration costs, shipment of files, disconnecting telecom, uninstalling security systems, and rent due at closure. vi. Space alteration costs ($61,000– $122,000). Space alteration cost is estimated at $2,000 per employee. Cost range is based upon estimated number of employees who will relocate. (1) Estimate of Cost Savings The closure of the 16 field offices will eliminate the cost office space leases and administrative costs, including transit, mail, copiers, telephones, security, all support services, including IT maintenance, totaling $3.5 million annually. The $2.7 million lease cost for all 16 offices is based upon HUD’s occupancy agreement with General Services Administration (GSA). The $800,000 administrative cost for all 16 offices is based upon the Fiscal Year 2012 expenses. It is difficult to project the number of employees who will take advantage of the buyout, choose to relocate, or resign because these are individual decisions. However, it is estimated that 50–75 percent of the affected employees will take the buyout while 25–50 percent may opt to relocate. The total savings will range from $11 million to $14.9 million annually, beginning 2014. The savings will include lease and VerDate Mar<15>2010 14:46 Apr 25, 2013 Jkt 229001 (2) Estimate of the Additional Cost Implementation costs are expected in closing the offices, thus the projected total annual savings, which ranges from $11 million to $14.9 million, will be gained beginning in 2014 and every year thereafter. b. Reoccurring Costs Program delivery to the affected jurisdiction is already managed by program staff in 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 local economies in terms of housing, schools, public services, taxes, employment and traffic congestion will be minimal. HUD staff within each state, and Puerto Rico and Washington, DC, will work with clients PO 00000 Frm 00054 Fmt 4703 Sfmt 9990 in the affected office closure areas to ensure uninterrupted, quality service is provided going forward. The realignment of personnel and office closures should not disrupt the service delivery currently provided to the communities. (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, and this will continue to be the case. Following the closure of these small offices, HUD will retain one or more field offices in each state: a. Camden, NJ field office—HUD will retain the field office in Newark, NJ. b. Syracuse, NY field office—HUD will retain the Buffalo and Albany field offices, as well as the regional office in New York City. c. Orlando, FL and Tampa, FL field offices—HUD will retain the field offices in Jacksonville and Miami, FL. d. Springfield, IL field office—HUD will retain the regional office in Chicago, IL. e. Cincinnati, OH field office—HUD will retain the field offices in Cleveland and Columbus, OH. f. Flint, MI and Grand Rapids, MI field offices—HUD will retain the field office in Detroit, MI. g. Shreveport, LA field office—HUD will retain the field office in New Orleans, LA. h. Dallas, TX and Lubbock, TX field offices—HUD will retain the field offices in Houston and San Antonio, as well as the regional office in Fort Worth, TX. i. Tucson, AZ field office—HUD will retain the field office in Phoenix, AZ. j. Sacramento, San Diego, and Fresno field offices—HUD will retain the field offices in Los Angeles and Santa Ana, as well as the regional office in San Francisco, CA. k. Spokane, WA field office—HUD will retain the regional office in Seattle, WA. Dated: April 17, 2013. Patricia A. Hoban-Moore, Assistant Deputy Secretary, [FR Doc. 2013–09799 Filed 4–25–13; 8:45 am] BILLING CODE 4210–67–P E:\FR\FM\26APN1.SGM 26APN1

Agencies

[Federal Register Volume 78, Number 81 (Friday, April 26, 2013)]
[Notices]
[Pages 24765-24766]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09799]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5698-N-01]


Notice of Intent To Close 16 Field Offices

AGENCY: Office of Field Policy and Management, HUD.

ACTION: Notice.

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

SUMMARY: This notice advises the public that HUD intends to close the 
following 16 field offices: Camden, NJ; Syracuse, NY; Orlando, FL; 
Tampa, FL; Springfield, IL; Cincinnati, OH; Flint, MI; Grand Rapids, 
MI; Shreveport, LA; Dallas, TX; Lubbock, TX; Tucson, AZ; Fresno, CA; 
Sacramento, CA; San Diego, CA; and Spokane, WA. HUD is providing this 
notice in accordance with the 42 U.S.C. 3535.

FOR FURTHER INFORMATION CONTACT: Honor Garcia-Tomchick, Department of 
Housing and Urban Development, 451 Seventh Street SW., Room 7108, 
Washington, DC 20410; mhonor.garcia-tomchick@hud.gov, telephone number, 
202-708-2426; TTY number for the hearing- and speech-impaired 202-708-
2565 (these telephone numbers are not toll-free).

SUPPLEMENTARY INFORMATION: In accordance with the Presidential 
Memorandum 2010-07--Disposing of Unneeded Federal Real Estate (75 FR 
33987, June 16, 2010), HUD is publishing this notice to provide notice 
of its intent to close 16 small field offices. The memorandum directs 
executive departments and agencies to accelerate efforts in identifying 
and eliminating excess properties. Agency actions are to include making 
better use of real property assets as measured by utilization and 
occupancy rates; eliminating lease arrangements that are not cost 
effective; pursuing consolidation opportunities within and across 
agencies; and increasing occupancy rates in current facilities through 
innovative approaches to space management and alternative workplace 
arrangements. Agencies are also directed to accelerate efforts to 
identify cost cutting measures to reduce operating costs.
    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 80 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 to approximately 9,300.
    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. Additionally, the 
standardization of processes in some of our largest programs 
(Multifamily Housing, along with troubled Public and Indian Housing 
workload, enforcement activity, and centralized administrative work) 
has also led to a diminished need for staffing in each current 
location. Closing these small field offices will allow HUD to realign 
staff resources to

[[Page 24766]]

best support program delivery, and will achieve operational savings.
    The reduction in the number of field offices helps 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

    Sixteen (16) small field offices will be closed, affecting 
approximately 120 of HUD's 9,300 employees. This action will allow the 
Department to align staff resources to more effectively support program 
operations and reduce operational cost, while maintaining effective 
program delivery to the affected jurisdictions. The offices to be 
closed are: Camden, NJ; Syracuse, NY; Orlando, FL; Tampa, FL; 
Springfield, IL; Cincinnati, OH; Flint, MI; Grand Rapids, MI; 
Shreveport, LA; Dallas, TX; Lubbock, TX; Tucson, AZ; Fresno, CA; 
Sacramento, CA; San Diego, CA; and Spokane, WA. Employees who work in 
the aforementioned 16 field offices will have the option to either take 
a buyout or continue their HUD careers in other locations through 
directed reassignments with relocation entitlements.
    The proposed changes are expected to produce significant 
administrative savings and will result in increased occupancy rates in 
other existing facilities, thus making more efficient use of real 
property assets as measured by utilization and occupancy rates.
(1) Estimate of Cost Savings
    The closure of the 16 field offices will eliminate the cost office 
space leases and administrative costs, including transit, mail, 
copiers, telephones, security, all support services, including IT 
maintenance, totaling $3.5 million annually. The $2.7 million lease 
cost for all 16 offices is based upon HUD's occupancy agreement with 
General Services Administration (GSA). The $800,000 administrative cost 
for all 16 offices is based upon the Fiscal Year 2012 expenses.
    It is difficult to project the number of employees who will take 
advantage of the buyout, choose to relocate, or resign because these 
are individual decisions. However, it is estimated that 50-75 percent 
of the affected employees will take the buyout while 25-50 percent may 
opt to relocate. The total savings will range from $11 million to $14.9 
million annually, beginning 2014. The savings will include lease and 
administrative costs as well as salary and benefit costs from the 50-75 
percent of affected employees who may take advantage of the buyout.
(2) Estimate of the Additional Cost
    Implementation costs are expected in closing the offices, thus the 
projected total annual savings, which ranges from $11 million to $14.9 
million, will be gained beginning in 2014 and every year thereafter.
a. One Time Costs
    i. Early lease termination cost ($108,000-$211,000). The early 
lease termination cost range is based on GSA's ability to find a 
replacement lessee for the office space.
    ii. Buyout cost (approximately $2.3 million-$3.4 million). It is 
estimated that 50-75 percent of the employees in the 16 field offices 
will take the buyout. The anticipated total cost includes the buyout 
and estimated terminal leave costs.
    iii. Personnel relocation cost (approximately $2.2 million-$4.3 
million). It is estimated between 25-50 percent in the 16 field offices 
will opt to continue their HUD careers in other locations via directed 
reassignments, with relocation entitlements.
    iv. Severance or unemployment compensation costs ($0). No severance 
costs are associated with this initiative since no termination of staff 
is expected.
    v. Office closure costs ($1.3 million). The estimated office 
closure costs include tenant improvement costs, project cancellation 
costs, physical property removal and restoration costs, shipment of 
files, disconnecting telecom, uninstalling security systems, and rent 
due at closure.
    vi. Space alteration costs ($61,000-$122,000). Space alteration 
cost is estimated at $2,000 per employee. Cost range is based upon 
estimated number of employees who will relocate.
b. Reoccurring Costs
    Program delivery to the affected jurisdiction is already managed by 
program staff in 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 local economies in terms of housing, schools, 
public services, taxes, employment and traffic congestion will be 
minimal. HUD staff within each state, and Puerto Rico and Washington, 
DC, will work with clients in the affected office closure areas to 
ensure uninterrupted, quality service is provided going forward. The 
realignment of personnel and office closures should not disrupt the 
service delivery currently provided to the communities.
(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, and this will continue to be the case.
    Following the closure of these small offices, HUD will retain one 
or more field offices in each state:
    a. Camden, NJ field office--HUD will retain the field office in 
Newark, NJ.
    b. Syracuse, NY field office--HUD will retain the Buffalo and 
Albany field offices, as well as the regional office in New York City.
    c. Orlando, FL and Tampa, FL field offices--HUD will retain the 
field offices in Jacksonville and Miami, FL.
    d. Springfield, IL field office--HUD will retain the regional 
office in Chicago, IL.
    e. Cincinnati, OH field office--HUD will retain the field offices 
in Cleveland and Columbus, OH.
    f. Flint, MI and Grand Rapids, MI field offices--HUD will retain 
the field office in Detroit, MI.
    g. Shreveport, LA field office--HUD will retain the field office in 
New Orleans, LA.
    h. Dallas, TX and Lubbock, TX field offices--HUD will retain the 
field offices in Houston and San Antonio, as well as the regional 
office in Fort Worth, TX.
    i. Tucson, AZ field office--HUD will retain the field office in 
Phoenix, AZ.
    j. Sacramento, San Diego, and Fresno field offices--HUD will retain 
the field offices in Los Angeles and Santa Ana, as well as the regional 
office in San Francisco, CA.
    k. Spokane, WA field office--HUD will retain the regional office in 
Seattle, WA.

    Dated: April 17, 2013.
Patricia A. Hoban-Moore,
Assistant Deputy Secretary,
[FR Doc. 2013-09799 Filed 4-25-13; 8:45 am]
BILLING CODE 4210-67-P