IG Questions HUD Reforms

A Department of Housing and Urban Development management reform plan that calls for the elimination of 3,000 jobs has placed the department in "serious jeopardy," according to a report released by the department's inspector general.

"The HUD reform plan is built on an unsupported premise, namely, that the department can adequately function with a staff of 7,500," wrote HUD IG Susan Gaffney in the report.

HUD Secretary Andrew Cuomo, saying that he wanted to transform his department from the "poster child for inept government," announced a sweeping reform plan in late June. Cuomo set a goal of cutting HUD's staff from 10,500 to 7,500 by 2002 and consolidating its 300 programs into 71.

Although the staff reduction is not complete, the department "is rapidly approaching its staff target," according to the IG report.

Gaffney concluded that the level of job cuts was "arbitrarily derived," and will hinder HUD's ability to carry out it's "current mission and responsibilities."

"Once the downsizing target is reached, HUD will have no capacity to handle any additional workload that may come about as a result of the enactment of future HUD-related legislation," the report stated.

Gaffney conceded that Cuomo's plan addresses HUD's need to improve its performance and correct its operating weaknesses. But many aspects of the plan, she wrote, "warrant serious questioning."

Among Gaffney's criticisms:

• HUD did not fully consult with affected parties in developing the plan.
• The plan does not go far enough in improving HUD's information systems.
• Critical human resource issues remain to be resolved.
• Proposed plans for overseeing public housing may be difficult to implement.
• Some aspects of the plan are uncertain because they are tied to future legislation.

On Tuesday, Cuomo and three local chapters of the National Federation of Federal Employees finalized an agreement to work together to implement the reforms.

"This is one more stamp of approval from the people affected most directly by the plan that not only did the process work--but the plan works for both the department and its employees," Cuomo said.