HUD is undergoing significant restructuring under the Trump administration, with plans to close dozens of field offices and drastically reduce its workforce. On Feb. 24, HUD leadership notified union management of the beginning of the agency’s Reduction in Force (RIF). According to the announcement sent by Secretary Scott Turner, the layoffs will affect Office of Field Policy and Management employees at level 13 or below in the General Schedule system.

The notification came about due to an executive order issued by President Trump on Feb. 11. It mandates a significant transformation of the federal workforce through the “Department of Government Efficiency” Workforce Optimization Initiative. This initiative requires federal agencies to develop comprehensive RIF and reorganization plans with the goal of enhancing efficiency and reducing costs across the federal government. While the RIF action announced on Feb. 24 will begin to impact field office work within HUD, the agency is likely to continue to drastically reduce the workforce among its program staff, including within Multifamily Housing program offices, to achieve the stated goal of a 50 percent staff cuts to HUD.

There are also reports that HUD has plans to close field offices in 34 states. These closures, along with the layoffs, have sparked alarm among housing activists, union officials, and community leaders worried the disruptions will have disastrous ramifications for housing programs nationwide. HUD’s plan for restructuring leaves only six field offices operating in Los Angeles; Jacksonville, Fla.; Greensboro, N.C.; Anchorage, Alaska; Honolulu; and San Juan, Puerto Rico. This shuts off HUD’s physical presence in many areas of the country, such as the Pacific Northwest region and the Midwest.

Housing advocates and union officials have pointed out that federal law requires each state to have at least one office for the servicing of mortgage insurance. In addition, legal and union concerns have brought up problems with HUD’s plan for reducing its size. Federal law mandates a full cost-benefit evaluation before any field office can be closed, with the outcome made publicly announced at least 90 days in advance. None of this has been done so far.

If the office closures go through, the impact will be felt in the housing programs. HUD field offices undertake a range of functions, including FHA mortgage underwriting, the administration of the distribution of the Community Development Block Grant (CDBG) funds, and the day-to-day administrative tasks such as the payment of subsidies to the housing providers. A much-reduced workforce is likely to slow or halt these operations, threatening affordable housing programs and disaster relief efforts.