Notice of Intent To Reorganize HUD and Revise Headquarters and Field Operating Model

Issuing agencies

Abstract

This notice advises the public that HUD intends to make changes to its Headquarters and Field operational structure. These changes are designed to better enable HUD to address crucial workplace and mission needs by eliminating redundancies, streamlining and increasing flexibility in work processes, and consolidating administrative functions, thus allowing the Department to more efficiently deliver on its mission utilizing current resources. It does not propose any office closures or relocation of staff.

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<title>Federal Register, Volume 91 Issue 216 (Tuesday, November 10, 2026)</title>
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[Federal Register Volume 91, Number 216 (Tuesday, November 10, 2026)]
[Notices]
[Pages 72551-72555]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22838]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6623-N-01]


Notice of Intent To Reorganize HUD and Revise Headquarters and 
Field Operating Model

AGENCY: Office of the Secretary, HUD.

ACTION: Notice.

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SUMMARY: This notice advises the public that HUD intends to make 
changes to its Headquarters and Field operational structure. These 
changes are designed to better enable HUD to address crucial workplace 
and mission needs by eliminating redundancies, streamlining and 
increasing flexibility in work processes, and consolidating 
administrative functions, thus allowing the Department to more 
efficiently deliver on its mission utilizing current resources. It does 
not propose any office closures or relocation of staff.

FOR FURTHER INFORMATION CONTACT: Lori Michalski, General Deputy 
Assistant Secretary, Office of Administration, Department of Housing 
and Urban Development, 451 Seventh Street SW, Washington, DC 20410; 
telephone 202-402-3921. (This is not a toll-free number.) HUD welcomes 
and is prepared to receive calls from individuals who are deaf or hard 
of hearing, as well as individuals with speech and communication 
disabilities. To learn more about how to make an accessible telephone 
call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.

SUPPLEMENTARY INFORMATION:

I. Legal Requirements for This Notice

    In accordance with section 7(p) of the Department of Housing and 
Urban Development Act (42 U.S.C. 3535(p)), a plan for the 
reorganization of any HUD regional, area, insuring, or other field 
office may take effect only upon the expiration of 90 days after 
publication in the Federal Register of a cost-benefit analysis of the 
effect of the plan on each HUD office involved. Such cost-benefit 
analysis shall include, but not be limited to (1) an estimate of cost 
savings supported by background information detailing the source and 
substantiating the amount of the savings; (2) an

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estimate of the additional cost which will result from the 
reorganization; (3) a study of the impact on the local economy; and (4) 
an estimate of the effect of the reorganization on the availability, 
accessibility, and quality of services provided for recipients of those 
services. Where any of the factors cannot be quantified, the Secretary 
shall provide a statement on the nature and extent of those factors in 
the cost-benefit analysis. This notice is to satisfy the requirement of 
section 7(p). Not all changes described in this notice rise to the 
level legally requiring a 90-day notice period and may be implemented 
by the Department at its convenience. These changes are being described 
here to provide a full picture of the future organizational structure 
of the Department.

II. Required Statutory Cost-Benefit Analysis

A. Background

    Since 2025, due in large part to the success of the Deferred 
Resignation Program, the Department experienced a significant number of 
voluntary departures from Federal service and a corresponding reduction 
in staff across all program offices. Certain offices were particularly 
impacted by these departures, leaving them constrained in the ability 
to accomplish Departmental goals and objectives. As a result, each 
program office undertook a thorough analysis of all operations and 
functional alignment in order to develop a plan to more efficiently and 
effectively manage the Department's programs and activities. The result 
of these efforts is a proposed large-scale reorganization of the 
Department. The proposed reorganization was communicated to Members of 
Congress on April 3, 2026. This notice reflects the next step in moving 
forward with these plans.
    The proposed reorganization of the Department is expected to 
produce net operational efficiencies by allowing for better management 
of the Department's activities given its current level of staffing. On 
balance, the proposed reorganization of the Department from its FY 2024 
organizational structure would merge smaller units with similar 
specializations into larger ones, reducing some of the disadvantages of 
a more complex hierarchy associated with the Department's previous 
staffing levels. In some cases, a division would be realigned under a 
different chain of command if doing so improves coordination with other 
divisions.
    The goal is to begin implementing these changes by the end of 
fiscal year (FY) 2026, with full implementation completed during FY 
2027. The reorganization is expected to significantly enhance 
operational efficiency, as well as improve HUD's program delivery and 
the service provided to HUD's customers.

B. Description of Proposed Changes

1. Departmental Management
a. Executive Secretariat
    Staff levels in the Executive Secretariat (ExecSec) were 
drastically reduced through the voluntary departures of staff via the 
Deferred Resignation Program. As a result, ExecSec has already 
implemented cross-training and work-sharing across the office to 
continue to perform the duties of the office. ExecSec will consolidate 
these teams to more efficiently manage the work of the staff under one 
supervisor.
b. Office of Public Affairs
    OPA will be consolidated into a single, streamlined Office of 
Public Affairs.
2. Office of Public and Indian Housing
    The Office of Public and Indian Housing (PIH) is consolidating and 
realigning operations to create greater operational efficiencies and 
consistency in program administration and oversight. Specifically, PIH 
will merge all responsibilities for public housing under one Office and 
all voucher programs in another. This will streamline both processes 
and program administration. By aligning the offices along program 
lines, PIH expects improvements in communication and collaboration 
between the more interrelated units of the Office of Public and Indian 
Housing.
3. Office of Lead Hazard Control and Healthy Homes
    The Office of Lead Hazard Control and Healthy Homes (OLHCHH) will 
reduce redundant functions performed within OLHCHH and streamline 
operations into three divisions, down from the current five divisions. 
This will create additional efficiencies of operation and better 
utilize OLHCHH's current staff and resources.
4. Office of Fair Housing and Equal Opportunity
    FHEO will reorganize and consolidate its office structure to adopt 
a more functional model designed to better fulfill FHEO's core 
statutory obligations under the Fair Housing Act and related 
authorities. FHEO will consolidate its operations under a centralized 
management structure designed to promote efficiencies of operation and 
consistency in the enforcement, compliance, and educational activities 
of the office. This reorganization will eliminate redundant management 
layers and reduce the duplication of work across FHEO. Additionally, 
the reorganization will reduce the variability of handling of 
complaints and conciliations across FHEO, bringing greater consistency 
to FHEO's work. The reorganization will improve workload balancing 
while also allowing for increased productivity through specialization, 
where appropriate. Finally, the centralization made possible through 
the reorganization will create administrative efficiencies and improve 
accountability and performance monitoring.
5. Office of the Chief Financial Officer
    The Office of the Chief Financial Officer (CFO) will be 
reorganizing three divisions to ensure better administration of the 
Department's budget and financial management activities. CFO will 
establish a new division to consolidate budget assistance for program 
offices, reducing redundancies across the Department and assisting 
those program offices who experienced significant voluntary staff 
separations in the last year. CFO will also create new branches to 
focus on financial management and accountability in order to better 
assist the Department in managing its funds. Finally, a new division 
will consolidate travel management oversight and coordination in 
support of the Department in a more cost-effective and efficient 
manner.
6. Office of the Chief Information Officer
    The Office of the Chief Information Officer (OCIO) will reorganize 
to drive efficiency and align our work and services around a portfolio 
and product-based construct. This shift will optimize office 
organization around technical solutions management and emphasize OMB's 
designation of HUD as a High Impact Service Provider (HISP) and our 
systems and solutions that support the Government Services Delivery 
Improvement Act through establishment of a design and experience 
division. This reorganization will enable HUD to evolve into a 21st-
century delivery organization that leverages best-in-class industry 
practices around product management and development, security, and 
operations (DevSecOps). It will establish a portfolio management 
organization construct that will enable HUD OCIO to surge and align 
resources around key delivery initiatives and increase standardization 
around delivery practices. It will establish a

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division for data and super intelligence (SI) under the Chief 
Technology Officer to ensure HUD is staffing and prioritizing data and 
SI appropriately. Finally, core business office functions (budget, 
acquisition, and resourcing) will be consolidated into one office 
division for better synergy and standardization of processes. 
Additionally, OCIO will establish a customer experience division to 
better align responsibilities and deliver services to HUD and its 
customers. Additionally, contract and financial management will be 
realigned and consolidated to eliminate redundancies across OCIO. 
Overall executive operations of OCIO will also be consolidated and 
realigned to streamline and standardize administrative functions. OCIO 
will realign the management of HUD's most critical assets to improve 
management and the response to security threats. Finally, Divisions and 
branches will be renamed to better reflect the current workload and 
functions of each OCIO component.
7. Office of Community Planning and Development
    The Office of Community Planning and Development (CPD) is 
modernizing operations and realigning CPD's structure to strengthen the 
ability of the office to meet its mission and achieve its goals. These 
changes will allow CPD to better deliver on its mission critical 
functions while maintaining strong accountability for program 
performance and the responsible stewardship of taxpayer dollars. CPD 
will consolidate its Office of Grant Programs non-disaster grant 
programs into a single office to better integrate and synthesize 
existing program policy resources and reduce unnecessary barriers to 
affordable housing creation. CPD will also rename other offices to 
create better alignment with the Departmental naming conventions for 
consistency and clarity.
8. Government National Mortgage Association
    The Government National Mortgage Association (GNMA or Ginnie Mae) 
is creating a new division to coordinate and address the need for 
greater data and market analysis to aid in data-driven decision-making. 
GNMA will also realign branches to bolster the work of the Office of 
Enterprise Risk, which will better manage Ginnie Mae's financial 
reporting, compliance, audit resolution, and enforcement efforts. As 
part of this realignment, branches will be created to allow focus on 
GNMA budget and economic analysis by specialized staff with unique 
skills in these areas. Ginnie Mae is also creating new branches to 
focus efforts on issuer engagement in a manner that is more tailored to 
the underlying assets to create efficiencies in account management and 
compliance. New branches will also be established to better support 
customer-focused information, training and support. Additional branches 
will be established to better focus counter party risk management and 
to direct and manage capital market activities. Finally, the renaming 
and realignment of functions relating to data and technology management 
will create operational efficiencies and better reflect the work of 
each branch.
9. Office of Policy Development and Research
    The Office of Policy Development and Research will increase 
operational efficiencies by realigning the Chief Data Officer to the 
CIO as described above. Three divisions will be merged and consolidated 
into a single division responsible for resource management to further 
operational efficiencies. Finally, one division is being renamed to 
better reflect the functions performed in that division.
10. Office of General Counsel
    The Office of General Counsel (OGC) is reorganizing its office 
structure to primarily breakdown artificial silos, eliminate 
redundancies, and streamline management responsibilities to effectively 
address the significant reduction in staff resulting from the voluntary 
separation of staff through the Deferred Resignation Program and other 
planned retirements. Specifically, the reorganization of OGC will 
eliminate the distinction between Headquarters and Regional/Field 
offices. Instead, OGC will have a unified structure organized based on 
programmatic operations. All counsel, regardless of geographic 
location, will report to one of three Deputy General Counsels, who will 
divide responsibilities loosely along the following lines: (1) general, 
cross-cutting legal services and administrative law, (2) grant and 
assistance program related legal support, and (3) housing finance legal 
services.
    OGC's programmatic approach to legal representation will allow 
greater flexibility in management of the work flowing from HUD's 
various program offices while allowing for the development of greater 
expertise across the Department's grant and assistance programs as well 
as the Department's housing finance programs. This structure will also 
allow for the centralization of all administrative and general cross-
cutting legal services and facilitate greater workload management 
across the country. With the voluntary departure of significant numbers 
of staff, OGC's siloed and restrictive structure made swift adaptation 
to the new staffing realities and shifting priorities in terms of 
workload extremely difficult to manage. With an emphasis on flexibility 
and seamless worksharing in this reorganization, OGC will be better 
situated to react to changing priorities and program activity levels 
allowing for the appropriate management of workflows without delay. 
Additionally, the inherent flexibilities in this reorganization mean 
that no staff will be relocated as a result of this reorganization and 
no employees will be negatively impacted in terms of grade/rates of 
pay.
11. Office of Field Policy and Management
    The Office of Field Policy and Management (FPM) will realign the 
additional cross-cutting program implementation functions associated 
with the Build America, Buy America Act, into the office that currently 
oversees various cross-programmatic compliance initiatives for the 
Department. This shift will allow for increased efficiency in 
implementation as it better aligns with the existing cross-cutting 
implementation work and functions of FPM and is expected to enhance the 
stakeholder experience.
12. Office of Housing--Federal Housing Administration
a. Office of Single Family Housing
    The Office of Single Family Housing is transitioning the work of 
its Homeownership Centers (HOCs) from a geographic-based business model 
to a function-based business model. Single Family will maintain three 
official HOC-designated offices, each with its own specialization: 
Philadelphia (Origination), Denver (Servicing), and Atlanta (Quality 
Assurance). Santa Ana will no longer be identified as a HOC, however 
all Single Family office locations, including Santa Ana, will continue 
to remain in operation, with no geographic reassignments, and minimal 
changes to employee position descriptions.
    These changes will ensure consistency in program delivery, improved 
workload management across functions, centralized expertise, and 
streamlined collaboration between field offices and headquarters 
policymakers.
    Additionally, the Investments Division in the Office of Multifamily 
Housing's Recapitalization Office was

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originally established in 2023 to centralize the administration of the 
Green and Resilient Retrofit Program (GRRP) grant and loan activities, 
including application review, award processing, transaction closing, 
and ongoing portfolio monitoring. As there are no GRRP new grants/loans 
being funded, the GRRP functions for the existing grants/loans have 
been integrated into the Office of Recapitalization's existing 
organizational structure, with transaction-related activities assigned 
to the Transaction Division and closing functions assigned to the 
Closing Division. As a result of this functional integration, the 
division is no longer necessary as a separate organizational unit and 
is being removed from the organizational chart. All staff in the 
Investments Division have left the Department or taken other positions 
at HUD.
b. Office of Operations
    To increase operational efficiency and eliminate redundancies, as 
other support offices across HUD provide the same services, the Office 
of Operations will be streamlined to support the Office of Housing's 
Management team with a smaller and more efficient footprint. The Office 
will be renamed the Office of Management Operations.
13. Office of Administration
    The Office of Administration is comprised of subcomponents under 
the leadership of the executive front office of Administration.
a. Executive Office
    The Office of the Administration executive front office (Admin) 
will assume the supervision of all of HUD's national security, 
continuity, continuity of operations, and emergency planning functions 
under a new Office of National Security and Continuity Programs. This 
realignment will elevate these functions from their current location 
under the CAO to report directly to the General Deputy Assistant 
Secretary for Admin, in recognition of the importance of these 
functions and the need to reduce duplicative and unnecessary layers of 
management in this area.
b. Office of the Chief Human Capital Officer
    The Office of the Chief Human Capital Officer (OCHCO) will 
streamline its executive management layer by reducing its authorized 
Senior Executive Service (SES) allocation from six to four. Executive 
oversight will be consolidated under the SES positions of Chief Human 
Capital Officer (CHCO) and Deputy CHCO, who will oversee two balanced 
operational pillars led by the remaining two authorized SES directors:
    1. Workforce Accountability, Policy & Compliance: This will unify 
regulatory functions, establish an independent Misconduct Inquiries & 
Investigations Division alongside Policy, Accountability; Personnel 
Security and Suitability; Reasonable Accommodation; and Performance 
Management and Recognition.
    2. Talent Strategy, Systems & Enterprise Intelligence: This will 
consolidate Data and Human Resources (HR) Systems; house the functions 
of Recruitment and Staffing; Pay, Benefits and Retirement; Enterprise 
Training and Executive Development; Administrative Operations, 
Workforce Health, Wellness and EAP.
    Under this realigned architecture, Employee and Labor Relations, 
Anti-Harassment, Executive Resources and Emergency surge hiring support 
will be integrated directly into the CHCO Front Office.
c. Office of the Chief Administrative Officer
    The Office of the Chief Administrative Officer (OCAO) will realign 
staff and functions within OCAO to more efficiently use staff resources 
to manage the work of the office. With the realignment of the national 
security, continuity programs (COOP), and emergency planning functions 
to the executive front office of Admin, the remaining physical security 
functions will be managed out of the new Office of Physical Security. 
Additionally, the Protective Services Division, which provides 
protection services to the Secretary and Deputy Secretary, will be 
managed by a separate division reporting to OCAO. All space and project 
management functions will be consolidated into the Resource Management 
division and a division to oversee printing functions will be 
established within the Office of Digital Enterprise within OCAO. 
Finally, all FOIA, Privacy, and Electronic Records Management Functions 
will be aligned under OCAO into one division for efficient management.
d. Office of the Chief Procurement Officer
    The Office of the Chief Procurement Officer (OCPO) will restructure 
its operations to establish a centralized hub for early acquisition 
life-cycle activities, consolidating the presently dispersed functions 
and allowing increased efficiency and skill development. Additional 
efforts to modernize the operations of OCPO will require establishment 
of various branches across OCPO designed to further the efficient 
management of procurement activities and establish greater 
communication and ties with the program offices across HUD.

C. Estimate of Cost Savings

    Approximately 90 days following the date of publication of this 
notice, HUD will begin the reorganization of the Department as 
identified above. Each program office will separately undertake the 
necessary reorganization, consolidation, and realignment of functions 
and staff as described. Given the varying level of complexities in the 
reorganization plan, the full implementation of these plans is expected 
to occur within Fiscal Year 2026 for some offices while others will 
continue working towards full implementation in Fiscal Year 2027.
    Because these efforts are about streamlining and consolidating 
organizational structures and reducing redundancies in terms of 
functions performed rather than any change in terms of footprint or 
staffing levels, nothing in these plans includes steps to relocate or 
reduce any staff.\1\ As a result, immediate, quantifiable cost savings 
are not expected to be realized from anything in this reorganization 
plan. Instead, HUD anticipates greater efficiencies in qualitative 
operations and the achievement of the Department's mission and goals, 
including enhanced customer and stakeholder service. These efficiencies 
will enable the Department to continue efficient and effective 
management of its programs generally within the existing approved 
staffing levels of the Department. Current staffing levels are almost 
35 percent below historic staffing levels and this reorganization will 
provide HUD with the ability to operate even more effectively at 
current staffing levels, ultimately carrying forward savings from the 
reduced salaries and expenses of the Department.
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    \1\ Please note that the Department separately published a 
notice of intent to relocate the staff from Kansas City, Missouri 
field office to the Kansas City, Kansas Regional Office. This move 
was detailed in a separate notice published in satisfaction of the 
obligations under section 3535(p) and is separate and distinct from 
the reorganization plans discussed in this notice.
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D. Estimate of the Additional Costs

    The Department expects that there may be some minor short-term 
adjustment costs associated with this reorganization plan. Some 
managers and staff may require time and additional

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training in order to adapt to new roles and adjust to managing a 
slightly different mix of workflows. These upfront costs are expected 
to be less than the longer-term gains from operational efficiencies 
generated by the reorganization. The overall goal of the reorganization 
of the Department's structure is to preserve the availability, access, 
and quality of the Department's services.

E. Study of the Impact on the Local Economy

    Because there are no staff relocations or office closures required 
by this reorganization, there is no anticipated impact on any local 
economies.

F. Estimate of the Effect of the Reorganization

    This reorganization is designed to better enable HUD to address 
crucial workplace and mission needs by eliminating redundancies, 
streamlining and increasing flexibility in work processes, and 
consolidating administrative functions, thus allowing the Department to 
more efficiently deliver on its mission utilizing current resources and 
mitigate the impact of previously realized staff reductions across the 
Department, primarily due to voluntary resignations through the 
Deferred Resignation Program (which was particularly acute for certain 
program offices).
    The proposed reorganization advances a new alignment that will 
maximize the use of staffing resources to ensure flexibility and 
maintain quality work across all aspects of its portfolio. The intended 
future state of the Department will demonstrate a program-focused 
approach to best leverage current staff, maximize operational 
efficiencies, and permit better allocation of resources during periods 
of increased workload, all within the current footprint and geographic 
dispersion of HUD staff. This reorganization will also better align 
skillsets across the Department, modernize how offices conduct their 
work and address the staffing losses mentioned above. The specific 
shifts away from extremely siloed organizational structures with 
regional/field office restrictions are designed to change reporting 
structures, not eliminate offices or force relocation of any staff. 
While functions and duties of staff may change, HUD will endeavor to 
minimize impacts on staff and avoid to the greatest extent possible the 
imposition of any reduction in grade or pay because of this 
reorganization.
    In sum, no immediately quantifiable benefits, and no significant 
costs or local economic impacts would arise from the reorganization, 
which maintains the Department's number of staff and field offices, but 
simply streamlines and realigns functions for optimal efficiency.
    HUD will take steps to ensure that the reorganization therein 
complies with Title 5, applicable civil rights statutes, OPM workforce 
reshaping guidance, and merit systems principles. HUD's implementation 
of the reorganization will be phased to ensure continuity of operation. 
To the extent that future personnel actions may be required, HUD will 
ensure that they are conducted in accordance with law and regulation.

III. Environmental Impact

    This notice does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing (other than tenant-based rental 
assistance), rehabilitation, alteration, demolition, or new 
construction, or establish, revise or provide for standards for 
construction or construction materials, manufactured housing, or 
occupancy. Accordingly, under 24 CFR 50.19(c)(1), the notice is 
categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42. U.S.C. 4321 et seq.).

Andrew Hughes,
Deputy Secretary.
[FR Doc. 2026-22838 Filed 11-9-26; 8:45 am]
BILLING CODE 4210-67-P


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