Federal Housing Office Closures

For people that are seeking in-person assistance from federal housing authorities, June was a discouraging month. The U.S. Department of Housing and Urban Development (HUD) is planning to close 16 field offices. These offices just happen to be located in areas that have among the highest foreclosure rates in the nation.

The federal housing authority focuses on handling placements for people that have been evicted through the foreclosure process. Within the next four months, the government’s plan to close offices will greatly impact these areas. In fact, four of the offices slated for closure serve eight U.S. cities that have the highest nationwide foreclosure rates.

With a total of 80 field offices located across the U.S., the housing memo indicates the closures were solely “based on the business needs of the Department,” not discriminating based on cities that were hit hard by the financial crisis. The government states that only 10-percent of cases are actually handled in-person, with more people applying online or making telephone inquiries.

Unions recognize that these closures come at a time when many communities are hard-hit and struggling to overcome complex foreclosure markets.

Additionally, this government organization also lays out a plan for consolidating HUD’s multi-family housing program that currently spans 50 states into 10 offices in large cities. While the White House claims this has been in the works for several years, many people are pointing fingers at the government sequester. HUD estimates it will save between $51 million and $65 million annually with the projected reorganizations.

HUD’s reorganization will require approximately 10-percent of their workforce – 900 employees – to relocate, retire or receive a federal $25,000 buyout. In fact, more than 40-percent of HUD’s current staff would be eligible for retirement within the next three years, which the government is hoping makes the buyout option more feasible for employees.

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