The Department of Housing and Urban Development announced major changes of the Office of Multifamily Housing Program. The changes include reducing the number of Multifamily hubs to 5 nation wide and closing 16 field offices, three located in California. California will host the San Francisco Hub with a satellite office located in Denver; field offices in Fresno, Sacramento, and San Diego will be closed by early fiscal year 2014.
According to HUD, the streamlining process will reduce the footprint of HUD, as well as allow more consistent, effective processing of loans and servicing of existing assets. The restructure is expected to save the agency between $110 and $150 million over a 10-year period and will impact 900 employees. All affected employees will be offered jobs the opportunity to continue working for HUD and will be eligible for relocation assistance, or they can elect to take separation incentive pay or early retirement.
The office closures have drawn criticism from Congressional Representatives. In a letter to HUD Secretary Shaun Donovan, Representative Jim Costa (D-16th) said the office has been a lifeline for his Valley constituents, where the foreclosure rate is more than 40 percent higher than the state. Representative Doris Matusi (D- 6th) was quoted saying that the HUD office closures amounted to a symbolic abandonment of the Central Valley.
The HUD press release can be read by clicking here.
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