On April 24, 2013 HUD announced a major restructuring of its multifamily field offices to streamline operations and achieve cost savings. The Department plans to consolidate its multifamily program from 50 offices nationwide to 10 sites-five hubs and five satellite offices-and close 16 smaller offices. The move will affect approximately 900 of its 9,000 employees.
The hubs will be: New York, Atlanta, Chicago, Fort Worth and San Francisco; satellite offices will be in Boston, Jacksonville, Detroit, Kansas City and Denver.
In a conference call with NMHC/NAA and others, HUD says it will begin implementing the cost saving plan this fall, but it will take approximately 2.5 years to complete.
The restructuring is the latest of an ongoing four-year effort to modernize HUD/FHA. NMHC/NAA believe the plan will benefit the industry in the long term by making FHA more closely resemble other national platform lenders and resulting in a more responsive and efficient processing system.
We will work closely with HUD as it implement the reorganization, however, to address any short term impacts it has on the existing pipeline of applications. We are also concerned about the loss of talented staff in some of the offices slated for elimination.
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