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RCED-83-100 1 (1983-02-25)

handle is hein.gao/gaobabmvv0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 February 25, 1983 RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION 1 1-209537 The Honorable Jim Sasser 120718 United States Senate Dear Senator Sasser: Subject% Impact of the Department of Housing and Urban Development's Proposed Consolidation Plan on Tennessee. (GAO/RCED-83-100) Your September 14, 1982, letter requested that we evaluate the Department of Housing and Urban Development's (HUD's) proposal to move its Nashville multifamily housing function to Knoxville, Tennessee. That proposal is part of a major reorganization of field activities now under consideration by HUD. Justification for the proposed relocation, furnished to you by HUD, cited inefficient and ineffectiye program delivery and. client service as the primary reason for consolidating multifamily 'housing. HUD contends that the only viable option to coriect program delivery and client service problems is to reorganize. In support of its reorganization proposal, HUD provided you a cost analysis showing a net savings of $276,030 at the end of 2 years and $1,282,575 at the. end of 5 years if multifamily functions were consolidated in Knoxville, HUD's preferred option. If the Knox- ville office functions were moved to Nashville, MUD estimates that there'would be no net savings at the end of 2 years, but instead, net costs of $582,524. HUD did not complete the cost analysis for moving to Nashville and did not estimate net results at the end of 5 years for that option. To evaluate HUD's proposal, we examined pertinent documents and interviewed officials of HUD, other federal agencies, and state agencies. In addition, we administered a questionnaire to obtain an indication of Nashville and Knoxville HUD staff's willingness to relocate and related costs. As agreed with your office, we concentrated our efforts on assessing costs and benefits of HUD's Option I. Based on our evaluation, we do not see support that past program delivery and client service problems were the result of the organizational structure in Tennessee. Further, we found no evidence that serious program delivery or client service problems currently exist. cf Q417

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