Downsizing plans targeted at the Department of Housing and Urban Development, including the Federal Housing Administration, could impact the processing of mortgage insurance for single-family homes, affordable apartment buildings, hospitals and nursing facilities.
HUD field offices in 34 states, plus the District of Columbia, are slated to close, according to a Bloomberg report. Department employees and their union say this may run afoul of a federal law that requires the agency to maintain at least one field office in every state where staffers process applications for mortgage insurance.
“They’re required to have a field office in every state,” said Antonio Gaines, president of the American Federation of Government Employees (AFGE) National Council 222, representing HUD employees. “If they decide not to do that, they’re supposed to ask for a waiver. They’re supposed to go to Congress.”
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