HUD Management

The Department of Housing and Urban Development (HUD) announced in June 1997 its "HUD 2020 Management Reform Plan," a sweeping set of proposals intended to help overcome management weaknesses and to further downsize the agency from about 10,500 staff to 7,500 staff by the year 2000. The plan outlined several organizational changes, including the consolidation of similar functions within and across the agency's main program areas, as well as staff reductions and target staff levels for each of those areas. The plan also included a "buyout" and other procedures to achieve the target staff levels. This report reviews the management reform proposals outlined in the 2020 plan and addresses the following questions: What studies and analyses did HUD do to determine the efficiencies derived from the centralization and consolidation of the Federal Housing Administration and other major programs and activities? What studies and workload analyses were done to show that the agency will be able to carry out its responsibilities with a staffing level of 7,500? How does HUD plan to manage the personnel changes that will result from the reforms and downsizing?

GAO noted that: (1) reports covering each of HUD's major program areas and functions, prepared by teams of HUD employees in the spring of 1997, are the principal documents supporting the 2020 plan; (2) the reports identify a number of prospective efficiencies from consolidating and centralizing certain processes; (3) in addition to allowing the agency to operate with a reduced workforce, HUD intends the changes to reduce the time or paperwork required for various processes; (4) the efficiencies cited are generally not based upon detailed empirical analyses or studies, but rather on a variety of information, including some workload data, limited results from a pilot project, identified best practices in HUD field offices, benchmarks from other organizations, and managers' and staff's experiences and judgment; (5) the plan is directed in part towards correcting the management deficiencies that have been identified; (6) because the reforms are not yet complete and some of the plan's approaches are untested, the extent to which they will result in the intended benefits is unknown; (7) according to HUD's Deputy Secretary, the process changes proposed by the 2020 plan, along with states and local entities and the use of contractors, will allow the agency to operate with 7,500 staff--a staffing target level established prior to the plan; (8) however, proposed staffing levels for each program area are generally not based upon systematic workload analyses to determine needs; (9) while the reform teams were instructed by the Deputy Secretary to determine staffing requirements based upon workload, they were also instructed to work within targeted staffing levels and the Department's staffing constraints; (10) the reform teams relied on a variety of factors, including some workload data, to show whether responsibilities could be carried out within targeted staffing levels; (11) because the downsizing target of 7,500 staff is not based upon a systematic assessment of needs and because proposed legislation could affect those needs, it is uncertain that HUD will have the capacity to carry out its responsibilities once the reforms are in place; (12) an August 1997 agreement between HUD and the American Federation of Government Employees National Council of HUD Locals 222 established the framework for managing personnel changes to implement the 2020 plan; (13) this agreement includes buyouts, reassignments, and an outplacement program for HUD employees and provides that a reduction in force may be used if necessary, but not before 2002; and (14) this agreement also provides for hiring new employees for some positions.