December 10, 2002

NOTE FOR: Pauline Figliozzi, ARHCP

FROM: Beverly Hardy, Special Assistant, Office of the Assistant Secretary for Public

And Indian Housing, P

SUBJECT: Revision to the Realignment of the Office of Troubled Agency Recovery
(OTAR) and the Field Operations Staff (FOS)

Per a meeting held today, December 10, 2002, with representatives from the Chief Financial Officer's Budget Office and the Office of General Counsel, this is in response to the non-concurrence comments regarding the realignment proposal of the consolidation of the Office of Troubled Agency Recovery and the Field Operations Staff into the Office of Field Operations as submitted on August 19, 2002. The proposal has been re-evaluated in consideration of the comments received as follows:

1. The Cleveland and Memphis Troubled Agency Recovery Centers will be dismantled and recovery functions reassigned to Hub and Program Center Offices or the Recovery and Prevention Corps (RPC) as identified in the original proposal. However, PIH will establish a Memphis Hub Office of Public Housing to be staffed by no more than 20 employees and initially locate the RPC in Cleveland.

a. The Memphis Hub Office will have jurisdiction over the entire State of Tennessee and the existing Knoxville and Nashville Program Centers will report to the Memphis Hub. This allows for sufficient coverage of the 89 PHAs within the State of Tennessee. Review of the Memphis TARC's retirement eligibility report identifies 11 employees, which are eligible for retirement as of 11/02/2002, and another seven which could retire in three years. Of the 31 existing staff within the Memphis TARC, 21 will be reassigned to the Memphis Hub with the remaining 12 outstationed to Headquarters or the Recovery and Prevention Corps now located in Cleveland.

b. The Recovery and Prevention Corps (RPC) will be initially located in Cleveland, Ohio, but eventually migrate to Washington, DC as attrition occurs and resources become available to systematically and efficiently effectuate the final location of the RPC in Washington, DC. The functions and work procedures outlined in the original proposal for the RPC do not change. All 25 current Cleveland TARC staff, will be reassigned into the RPC. Another 8 employees from the Memphis TARC will be oustationed to the RPC from Memphis and 4 vacancies for Financial Analysts (3) and a Program Assistant (1) will be advertised to complete the full complement of 37 RPC employees.

2. Estimates for relocation are revised to total no more than $250,000. The original proposal's estimated relocation costs were $3,000,000. The entire Departmental budget in FY03 for relocation totals $3,700,000 and was duly noted during the clearance process. With the establishment of the Memphis Hub and initial location of the RPC in Cleveland, however, PIH projects that no more than 5 staff will be relocated at cost to the Government for a total revised projection of $250,000 (5 staff @ $50,000 per reassignment = $250,000).

3. The "Employee Match" program as identified will be eliminated as it is no longer necessary to reassign former Cleveland and Memphis TARC staff to various Hub and Program Center Offices. Though staffing shortages do still exist in many Public Housing Field Offices, the need for the "match program" is eliminated with this revised proposal. All current Memphis and Cleveland TARC staff will be reassigned to positions within the new Office of Field Operations as identified in the attached revised current and proposed staffing plan.

4. New organization charts for the Headquarters Office of Field Operations, PIH Headquarters and the proposed Memphis Hub Office arc attached for your information to incorporate the most recent Headquarters staffing realignment.

I trust these modifications address the issues raised during the Departmental clearance process. If you have any questions, please do not hesitate to contact Beverly Hardy, Special Assistant, at extension 4254 or David R. Ziaya, Director, Field Operations Staff at extension 4212.