HUD Downsizes Multifamily Housing Programs

The U.S. Department of Housing and Urban Development announced Wednesday that it will be restructuring its Multifamily Housing Programs and the Office of Field Policy and Management to meet the realities of dwindling funding.

Over the next two and a half years, HUD will consolidate its field employees, who currently work in 50 offices, down to 10 nationwide, with plans to offer the 900 affected employees opportunities to continue working for HUD.

“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're in a different budget environment and we're at a point where we must make some extremely tough choices.”

Douglas Rice wrote on Rooflines last week that President Obama's proposed 2014 budget does the job of “holding the ground” for HUD's housing assistance and safety net programs in light of the effects of the sequester, which cut aid to low-income families at a time when the need for assistance is rising.

HUD's Multifamily Office, a “core” program, provides mortgage insurance to HUD-approved lenders to facilitate the construction, substantial rehabilitation, purchase and refinancing of multifamily housing projects as well as administering a number of project-based rental assistance program. Multifamily estimates the restructuring plan will generate up to $40 million to $45 million in annual savings once the implementation is complete.

HUD also will be closing 16 of its 80 locations for its Office of Field Policy and Management, a move that is expected to save the agency between $110 million and $150 million over a 10-year period. That restructuring is expected to be completed by early next year and will affect 120 employees, all who will be offered other opportunities within HUD.

“We looked at where our staffs are and where they need to be in order to make certain we can achieve the greatest possible impact on the people and the places we serve, especially given today’s tough fiscal climate” said Pat Hoban-Moore, HUD’s Assistant Deputy Secretary for Field Policy and Management.

(Photo by Joseph CC BY-NC-SA)

2 COMMENTS

  1. Let me make myself clear.HUD has for years(1968) has fail to enforce the other side of fair housing and equal opportunity,placing more importance on fair housing and forgetting about equal opportunity(section 3).The President seen this and has move (sec3biz,Tiger ll planning grants and the sustainable communities initiativities)on it.Oh!!!! forgot about the NSP program and the LIHTC/HOME projects which triggers section 3 compliance.The agency is now demanding the 60002 reports be submitted before any farther funding or grants to programs.To all my Advocates and supporter of the poor…to make this a Living Dream and a true post fair housing month,stand-up for what The King lived and died for…Section 3 could be that civil-rights tool that could lead low and very-low income persons to independence…freedom????

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