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Department of Housing and Urban Development's Proposed Field Office Reorganization

Published: May 26, 1983. Publicly Released: May 26, 1983.
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Highlights

GAO presented its views on the Department of Housing and Urban Development's (HUD) proposed field reorganization. HUD announced its plans to reorganize its field structure in a Federal Register notice as required by law. The notice included a cost-benefit analysis showing an estimated $30.8 million net savings over 2 years and an explanation as to why HUD believes that the reorganization will have no measurable impact on any local economies and only a minimal impact on the quality of services to affected clients. GAO believes that HUD needs to reevaluate its proposed reorganization for several reasons: (1) the cost-benefit analysis is based on questionable assumptions which may overstate the true savings to the Government; (2) HUD has not determined the potential impact on the quality of service to clientele; (3) HUD is planning to reorganize in an atmosphere of major program changes and future housing policy uncertainties; and (4) proposed changes may not address management problems associated with the complex HUD organizational structure.

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