HUD's FY 99 Budget
Congressional Justifications
General Counsel

Salaries and Expenses

SALARIES AND EXPENSES, HOUSING AND URBAN DEVELOPMENT

BUDGET ACTIVITY 9: GENERAL COUNSEL

SCOPE OF ACTIVITY

The General Counsel, as the chief legal officer of the Department, is the legal adviser to the Secretary and other principal staff of the Department. It is the responsibility of the General Counsel to provide legal opinions, advice and services with respect to all programs and activities, and to provide counsel and assistance in the development of the Department's programs and policies.

WORKLOAD

The principal workload of the Office of General Counsel (OGC) consists of providing advice to program managers; preparing memoranda on legal problems arising under HUD programs; representing the Department in litigation and administrative hearings; drafting and reviewing regulations; and drafting, reviewing and clearing legislation and legislative materials.

OGC plans to support the Department�s efforts to significantly reform programs and delivery mechanisms to respond to locally driven priorities and support the Secretary�s initiative of a performance-based organization.

1.HEADQUARTERS

The work of the legal staff will address the requirements and initiatives of the Secretary with respect to the completion of the HUD 2020 Management Reform Plan by significantly increasing enforcement activities, enhancing procurement integrity, and supporting program administrators in their efforts to reform programs and delivery mechanisms to fundamentally empower communities to transform all Federal Affordable Housing, and to open homeownership accessibility to larger numbers of people, including public housing residents and Section 8 recipients.

The Office of General Counsel is responsible for providing all of the legal advice and service necessary at the Headquarters level for the formulation, implementation and operation of Departmental programs and administrative management. The General Counsel also provides professional supervision to the staff and functions of the legal offices of the Department in Headquarters and in the Field. The Immediate Office is professionally staffed by the General Counsel and several essential senior attorneys and administrative personnel.

b.OFFICE OF DEPUTY GENERAL COUNSEL (PROGRAMS AND REGULATIONS)

The primary function of the Deputy for Programs and Regulations relates to legal work in connection with Federal Housing Administration (FHA) and Government National Mortgage Association (Ginnie Mae) activities, Fannie Mae and Freddie Mac oversight, capital markets and tax matters, and with the drafting, development, clearance and publication of the Department's regulations and legislation. Consequently, the Deputy for Programs and Regulations focuses primarily on the legal issues raised by the Assistant Secretary for Housing; the President of Ginnie Mae, the Assistant Secretary for Congressional and Intergovernmental Relations, the Assistant Secretary for Policy Development and Research, as well as those generated by oversight of Ginnie Mae, Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) regulation. This Deputy also addresses programmatic issues of the Assistant Secretary for Public and Indian Housing and the Assistant Secretary for Community Planning and Development. The Deputy for Programs and Regulations works very closely with OGC's Office of Finance and Regulatory Enforcement, Office of Insured Housing, and Office of Legislation and Regulations.

FOIA Division

In order to effectively address the significant backlog of Freedom of Information Act (FOIA) requests existing within the Department, OGC will assume the responsibility for processing all FOIA requests. This will assure timely response to FOIA requests, assure the accuracy of the response in compliance with statutory requirements and will assure consistency of application of the standards. The Division will handle all internal FOIA requests. Appeals will be handled by the Training and FOIA Appeal Division under the Deputy General Counsel (Operations). This division will be headed by a managing attorney.

c.OFFICE OF DEPUTY GENERAL COUNSEL (HOUSING AND DEVELOPMENT)

The primary function of the Deputy General Counsel for Housing and Development relates to legal work in connection with Federal Housing Administration (FHA) activities, Community Development, Public Housing authorities, and with the development, clearance and publication of the Department�s regulations. Consequently, the Deputy focuses primarily on non-civil rights legal issues raised by the Assistant Secretaries for Housing, Public and Indian Housing, Community Planning and Development, and Policy Development and Research. One of the Deputy�s primary focuses is the enforcement of HUD�s programs. The Deputy coordinates OGC�s activities regarding civil and administrative actions that the Department pursues in all program enforcement areas, including but not limited to Multifamily Housing, Public and Indian Housing and Community Planning and Development. The Deputy also focuses on transitional real estate matters associated with the insured housing programs and legal issues resulting from contractual arrangements with outside counsel for legal services related to program development and enforcement. The Deputy also focuses on the establishment and implementation of the new Assessment Center.

d. OFFICE OF DEPUTY GENERAL COUNSEL (CIVIL RIGHTS AND FAIR HOUSING)

The primary function of the Deputy for Civil Rights and Fair Housing relates to legal work in connection with Title VIII of the Civil Rights Act of 1968, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Executive Order 11063 concerning Equal Opportunity in Housing, Executive Order 11625 concerning Minority Business Enterprises, and Section 3 of the Housing and Urban Development Act of 1968. Therefore, the Deputy for Civil Rights and Fair Housing focuses on issues raised by the Assistant Secretary for Fair Housing and Equal Opportunity and Civil Rights and Fair Housing litigation issues raised by the Assistant Secretary for Public and Indian Housing and the Assistant Secretary for Community Planning and Development. This Deputy works very closely with OGC's Office of Litigation and Fair Housing.

e. OFFICE OF DEPUTY GENERAL COUNSEL (OPERATIONS)

The Office of Deputy General Counsel for Operations provides day-to-day operational guidance to OGC and Field Operations with respect to all administrative, management and organizational issues, including all personnel, staffing, budget, training and travel activities, as well as the development of computerized systems and facilities. The Deputy is the rating official for all Field Assistant General Counsel with the General Counsel being the reviewing official. This Office is responsible for the oversight and effective management of the salaries and expenses budgets for both Headquarters and the Field Legal Services. The Deputy directly oversees all activities of the General Counsel's Office of Human Resources and all operational activities of all other aspects of the Headquarters and Field Legal Services. The Deputy for Operations also represents the General Counsel at all levels in and out of the Department and acts in the absence of the General Counsel or the Deputy General Counsel for Programs and Regulations, Deputy General Counsel for Housing and Development or Deputy General Counsel for Civil Rights and Fair Housing. The Office includes the Management and Administrative Services Staff; Field and Management Operations Staff; and Training/FOIA Appeals Staff.

Management and Administrative Services Staff

This office provides day-to-day operational guidance and support to the Office of General Counsel with respect to all administrative, budgetary, management and organizational functions. This includes providing management support for the use and control of staff and fund resources; preparing the budget and providing budget oversight; and providing and/or coordinating all OGC personnel and general administrative services.

Field and Management Operations Staff

This staff assists in providing oversight of and support to Field Assistant General Counsel, Chief Counsel, Chief Attorneys, and their staff. Its facilitates communications between Headquarters and Field Counsel, monitors the delivery of Field legal services, allocates Field legal staff, and organizes meetings for Field legal staff. It also assists in developing computer systems and support to the Office of General Counsel Headquarters and Field legal staff on the use of these systems.

Training/FOIA Appeals Unit

OGC training responsibilities increased with the HUD�s management reform initiatives, which relate to enhanced program enforcement as well as concern about HUD�s contracting integrity and reliance upon technology. In order for OGC to advance to meet the challenges of the new HUD, training OGC staff takes on greater significance and the placement of the training coordination function directly within the Office of the Deputy General Counsel (Operations) reflects the importance of training to the accomplishment of OGC�s goals and objectives.

In addition to enhanced training responsibilities, this unit will also be responsible for the processing and disposition of FOIA appeals. Since reassignment of the FOIA operations to OGC, there is a need for division of responsibility from FOIA intake and initial determination to FOIA appeals. The FOIA staff will report to the Deputy General Counsel (Programs and Regulations) while the FOIA appeals staff will report to the Deputy General Counsel (Operations).

f.OFFICE OF ASSISTED HOUSING AND COMMUNITY DEVELOPMENT

This office of program counsel provides legal advice bearing on all four points of the Department�s priorities spear: Averting the Section 8 Crisis; Expanding Affordable Housing; Making Welfare Reform Work; and Restoring the Public�s Trust. As the Department moves toward a sparer workforce, this office will be increasingly challenged with opportunities under those four priorities.

This Office has responsibility for seven formula grant programs--the existing CDBG, HOME and Native American Housing Assistance (NAHASDA) block grants, and new legislation for capital and operating funds for public housing, for the administration of Section 8 tenant-based assistance, and for homelessness. Historically, program and legal practice have demonstrated that while the establishment of formula grants and block grants tend to reduce workload demand at the Field Office level, it is imperative that clear, reliable policy for HUD administration and enforcement be maintained at the Headquarters� level. Program counsel perform a key role in this respect. At the same time, legislative initiatives revamping the public housing program beyond its funding mechanisms, establishing community development incentives for treating Brownfields, and establishing a new round of Empowerment Zone/Enterprise Community designations promise additional workload.

Apart from these new statutory challenges and for ongoing activities, program counsel perform work on the development and initial implementation of statutory, regulatory, and other administrative policy governed by Headquarters, including providing written opinions, oral advice, and some drafting of regulations. In addition, program counsel must construe authorization-type legislation enacted annually through the appropriations process. Beyond these statutory and regulatory responsibilities, many of the new initiatives identified through Departmental Field reorganization, program consolidation, and other priorities of the Administration, fall within the program area coverage of this Office.

For example, as counsel for the Section 8 program, these attorneys ensure that fair

but legally appropriate construction of terms for renewal of Section 8 housing is consistently applied. This function, along with legal advice to accommodate the fusion of Section 8 subsidies with restructuring of debt, are crucial to averting the Section 8 crisis. Expanding affordable housing is the keynote of program law counsel in connection with public housing, Section 8, and the other assisted housing programs. The entire panoply of community development programs for which this office provides continuing legal advice promote making welfare reform work. And the Office�s careful counsel on the content and terms of Headquarters-fashioned Notice of Funding Availability (NOFA) for competitively distributed program assistance is a linchpin in restoring the public�s trust. This last objective is also accomplished by ongoing responsibilities covering diverse areas that range from buttressing One Strike admission and eviction policies with firm legal foundations to ensuring opportunities of tenants in assisted housing projects to enjoy their Constitutionally endowed free exercise of religion.

The combination of dramatic downsizing and Field decentralization demands sureness and uniformity in questions arising from the Field. In this connection, program counsel in this Office assist in establishing clear and consistent precedent. HUD�s field counsel are experienced but that experience is broad-based and covers a variety of programs, and does not permit the specialization which Headquarters program counsel can provide. At the same time, the Assistant Secretaries and their staffs administering programs in Headquarters require prompt and dependable advice from the General Counsel�s Office to ensure legality in Headquarters program decisions, whether in developing a new policy or in handling a tricky case problem arising in the course of a national competition funding round.

The Office is made up of two divisions: the Assisted Housing Division and the Community Development Division.

Assisted Housing Division

The Assisted Housing Division provides legal advice in connection with the Department�s programs under the United States Housing Act of 1937, including conventional and turnkey public housing, public housing modernization, operating subsidies, the Section 8 housing assistance programs, the Housing Development Grant Program, Indian housing, and homeownership and resident management programs. It serves as program counsel for HOPE VI and other mixed-finance initiatives to leverage private and other non-Federal investment in developing low-income housing. This Division also has responsibility for the Housing for Special Populations: Elderly and Disabled programs; HOPE 1 homeownership; the child care demonstration program; administration of the Architectural Barriers Act; tax-exempt financing; the elimination of drugs in assisted housing; Youth Sports; and congregate housing.

The Assisted Housing Division has experienced increased demands for services from the Office of Public and Indian Housing, in particular with respect to transaction work in HOPE VI and the overhauling of public housing development. With the funding of these programs and legislative changes, the demand for legal advice has grown significantly. The Assisted Housing Division also monitors hundreds of litigation cases in which HUD or a Public Housing Authority (PHA) is a party.

New initiatives added to this office include: (1) legal implementation of the public housing reform legislation; (2) replicating HOPE VI and mixed-finance models; and

(3) stepping up One Strike and other "Get Tough" housing occupancy policies. In addition, the evolution of the public housing modernization and operating subsidy budgets into permanent Capital and Operating Funds commands new legal interpretational workload for this Division. Legal implementation issues also surround the new mechanisms for Section 8 tenant-based assistance.

Community Development Division

The Community Development Division provides legal counsel in connection with the Community Development Block Grant (CDBG) program authorized under Title I of the Housing and Community Development Act of 1974, the HOME program established under the National Affordable Housing Act, the Consolidated Homeless Housing Assistance Programs, Empowerment Zones and Enterprise Communities, Comprehensive Housing Affordability Strategies (CHAS), NAHASDA, Youthbuild, the Housing Opportunities for Persons with AIDS (HOPWA) program, the HOPE 3 program, phase-out of the Urban Development Action Grants (UDAG) program, and the revolving fund for liquidated programs. The Office also is responsible for the provision of legal services regarding the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as it affects all HUD programs.

The Community Development Division has maintained the substantial increase in its workload resulting from the additional programs for which it was given responsibility under the last major community development legislative initiatives (HOME, HOPE 3, McKinney Act Homeless Assistance, Empowerment Zones and Enterprise Communities, and Economic Development Initiative (EDI) grants in connection with the Section 108 loan guarantee program, the CHAS, and Housing Opportunities for Persons with AIDS).

This high level of workload can be expected to continue as the Division carries out the homeless consolidation and NAHASDA. The formula grant transition for homeless programs can be expected to reduce the heavy workload stemming from legal advice for Headquarters discretionary grant programs for the homeless. Nevertheless, the implementation of that fund will require speedy, reliable legal advice. For both of these formula grant programs, it is imperative that the lessons of early implementation be broadcast through performance measures against which homeless providers and Indian tribes can be fairly but faithfully held accountable.

Last, there will be a need for program counsel�s heavy involvement in areas of major initiatives such as new Empowerment Zones and Enterprise Communities, continuing simplification of the HOME program, Defense base closures, and simplified planning requirements through the Department�s incorporation of statutory CHAS and other planning requirements into the Consolidated Plan.

g.OFFICE OF FINANCE AND REGULATORY ENFORCEMENT

OGC�s Office of Finance and Regulatory Enforcement will provide legal services for a wide band of key enforcement, regulatory and program functions of the Department all of which are presently operated from HUD Headquarters. These functions are essential to carrying out the Secretary�s priorities of Expanding Affordable Housing; Making Welfare Reform Work; and Restoring the Public�s Trust. The Office will continue to service HUD�s GNMA and GSE regulatory activities which result in hundreds of billions of capital for mortgages to low- and moderate-income families and families underserved by mortgage credit. Also, expansion of the Office�s responsibilities include the assignment of new audit resolution functions that are essential to restoring public trust.

The Office of Finance and Regulatory Enforcement will be under the supervision of one Associate General Counsel who will report to the Deputy General Counsel for Programs and Regulations. This office will consist of three divisions: the Finance, Program Compliance, and GSE-RESPA. Each division will be supervised by an Assistant General Counsel.

OGC will assume responsibility for assuring that audits are resolved. The Audit Resolution Unit will consist of two attorneys. This staff will report directly to the Associate. Each of the Regional Counsel offices will appoint a counterpart to assure resolution of audits in the field.

Finance Division

The Finance Division provides tax and capital markets advice to the Department. The Finance Division also provides virtually all of the legal services for the Government National Mortgage Association (Ginnie Mae), a government corporation whose annual revenues have exceeded expenses by approximately $500 million in each of the last several years. The Division provides opinions concerning Ginnie Mae�s statute, regulations and handbooks, including recommendations and drafting support for the preparation or revision of proposed or amended legislation or regulations.

The Division provides legal services to Ginnie Mae in connection with all GNMA defensive, affirmative and enforcement litigation, including: preparation of the administrative record; researching relevant case law; drafting affidavits, briefs and other filings; attending depositions, hearings and trials; coordinating with Justice, contract counsel and opposing counsel; and initiating and responding to settlement offers. In connection with this litigation, the Division drafts the annual audit letter concerning pending and threatened litigation and claims, and a monthly litigation report. With respect to issuer defaults, the Division travels to execute the default, if appropriate, provides legal support in the recovery, possession and control of the Ginnie Mae mortgage portfolio, including all legal and servicing documents and accounts.

The Division reviews for legal sufficiency all Ginnie Mae Guides (and revisions), All Participants Memoranda, significant correspondence and agreements. The Division prepares all form contracts contained in the Guides or All Participants Memoranda, as well as the text relating to them. The Division provides research and advice on legal policy issues, such as the impact on Ginnie Mae programs proposed by other Departmental offices (e.g., FHA�s risk sharing initiatives), or by other agencies (e.g., the Department of Veterans Affairs), or the legal implications of new technologies such as electronic signatures and the mortgage electronic registration system.

The Division provides all necessary legal services to carry out at least six major regulatory functions of the Department and certain other services including providing legal advice to assist the Secretary's designee in deciding Secretarial reviews.

The Division is responsible for providing legal services for the Secretary's regulation of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), both are referred to as GSEs, under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 which revised the Secretary's regulatory responsibilities and the GSEs' Charter Acts. The Division is providing legal services for HUD's: (1) monitoring and enforcing low- and moderate-income housing, central cities, and special affordable housing goals which apply to the GSEs; (2) reviewing and soliciting requests for new programs from the GSEs; (3) implementing new Fair Housing requirements (including establishing and operating under arrangements with other Federal regulatory agencies); and (4) protecting and disclosing GSE data, including operating a new public use data base. During this fiscal year, the Division will also be providing legal services necessary to establish new housing goals and needed revisions to the GSE regulations based on experience under the GSE rules. The Division also will provide sustained services for the Department's Annual Report to the Congress, and HUD initiatives respecting automated underwriting and affordable housing.

The Division manages all the legal work for the nationwide enforcement of the Real Estate Settlement Procedures Act (RESPA). To keep the costs of settlements down, RESPA prohibits the giving or accepting of a referral fee or kickback for the referral of settlement service business involving a Federally related mortgage loan.

The GSE-RESPA Division provides legal services for the Real Estate Settlement Procedure Act (RESPA) and Regulation X, the RESPA regulation, including preparing numerous RESPA rules which cover settlement transactions for nearly every 1-4 family residential real estate loan in America. In fiscal year l996, the Division produced a major final rule and several other rules revising HUD's November 1992 RESPA rule in light of substantial controversy and litigation. Because of Congressional action, key elements of these rules have been delayed and will be finalized this fiscal year. In fiscal year 1998, the year the Division will also continue to provide extensive legal services for numerous other HUD RESPA initiatives including developing a new final rule concerning the disclosure of mortgage broker fees (resulting from a landmark HUD negotiated rulemaking), a new proposed and final rule conforming RESPA and Truth-in-Lending (TILA) disclosure requirements; developing legislation for simplification of RESPA and TILA disclosures and other RESPA legislative initiatives, a new final rule implementing modifications to the escrow rule, and interpretive rules in areas of public concern, such as the permissibility of payments to affinity groups by settlement service providers.

The Residential Lead-Based Paint Hazard Reduction Act of 1992 (the 1992 Act) substantially expands the Department's and the Division's regulatory and enforcement responsibilities respecting lead-based paint poisoning prevention and abatement. This fiscal year, the Division will provide all necessary legal services to implement and enforce new HUD regulations. In 1997 and 1998, the Department will issue and the Division will draft final rules revising all lead-based paint requirements for Federally assisted and owned residential housing. In addition to providing services for the establishment and implementation of the lead-based paint regulations, the Division will also provide all legal services to enforce and direct the enforcement of these rules in administrative proceedings. The Division will also provide all necessary legal services in support of the Office of Lead Hazard Control�s other activities including HUD's $100 million Lead-Based Paint Grant Program.

The Division provides advice and review for all Headquarters environmental and Davis-Bacon issues with a nationwide effect on the Department's programs. Division staff serve as OGC's Environmental Clearance Officers, providing environmental review of Departmental regulations, funding notices and directives and drafting of provisions respecting the environment. In fiscal year 1997, the Division participated in the preparation of a proposed major revision to the Department's regulation on Floodplain Management to include codification of the Department's review of actions in wetlands; the Division will participate in preparation of the final rule for publication in fiscal year 1998. The Division provides legal services for the Assistant to the Secretary for Labor Relations concerning HUD's nationwide implementation of Davis-Bacon prevailing wage rate requirements, HUD-determined public housing and Indian housing block grant maintenance wage rates and related labor standards. These services include advice on all labor related HUD program issues, legislative initiatives, providing liaison with the Office of the Solicitor of Labor and representing the Department as needed in cases before the Department of Labor's Administrative Review Board.

Program Compliance Division

The Program Compliance Division will consist of the current Program Compliance Division and part of the Administrative Proceedings Division. The Program Compliance Division involves legal counsel work in consumer protection, enhancement of public safety, disclosure of information to land purchasers and home buyers, enforcement of anti-fraud and anti-kickback statutes, and collection of debts owed to the Department.

The Division acts as the advisory and enforcement counsel for the National Manufactured Housing Construction and Safety Standards Act of 1974 which regulates 33 percent of all new housing starts in the country. This statute provides for Federal construction and safety standards in manufactured homes and notification to consumers and correction of homes which consumers have purchased with defects or safety hazards. The Division is now actively involved in several cases in Federal District Court. In one of the cases, the Division assisted in enforcing a lower court�s decision in the Court of Appeals. The Division supplied counsel to the program office on preemption issues, assisted in the reform of regulations for enforcement, and worked on the use of manufactured homes as part of the Secretary�s affordable housing initiatives. The Division has and is continuing to provide significant counsel to the program office in drafting legislation that could result in changes to the Act�s standard development process for manufactured homes. Division attorneys assisted in successful litigation and negotiation of settlements of litigation in Federal District Courts. The Division is now actively involved in several enforcement actions, including an action against a manufacturer for building as many as 1600 homes with defective roofs and an action against a private agency licensed to monitor the production of manufactured homes. Additional enforcement actions are planned in the upcoming year against manufactured home producers and dealers with defective or unsafe homes. The Division also assists the program office with drafting regulations and Interpretative Bulletins, and prepares memoranda on legal issues that arise in the program.

The Interstate Land Sales Full Disclosure Act requires developers to give full disclosure of material facts about the sales offering and to engage in honest sales practices. The Program Compliance Division�s enforcement of the Act plays a significant role in encouraging ethical practices in land sales. Recently, there was widespread publicity of a precedent-setting $8.6 million order of restitution from a Federal Court in a fraud and non-registration case, despite the defendant�s unsuccessful attempt to discharge the debt in bankruptcy. The Division played a major part in obtaining the affirmance from the Fourth Circuit Court of Appeals and Supreme Court in this case. The Division also obtained $1 million in debt cancellation and $184,000 in restitution for consumers in a case against a Virginia developer and bank for fraud violations of the Act.

The Division is responsible for the Department�s debt collection, including advising the Chief Financial Officer and other Headquarters HUD clients on collection policies and strategies and enforcing collection in administrative and Federal Court forums. In this regard, the Division currently is pursuing collection of over $10 million in cases before Federal Courts and administrative tribunals. The Division has delegated to Field Counsel Federal income tax refund offset cases before the Board of Contract Appeals, which docketed more than 450 cases. This work has allowed the Department to refer to the IRS for collection $240 million in past due debt. The volume of debt collection cases is expected to continue at the same level in 1997 and 1998. As a result of the Debt Collection Improvement Act of 1996, HUD is expected to be a Federal debt collection center for other agencies. The Division is also responsible for providing legal advice and assistance on Federal bankruptcy policy issues.

The Office of Human Resources provides legal services pertaining to the programs and functions of the Assistant Secretary for Administration, the Chief Financial Officer, the Inspector General, the Assistant Secretary for Public Affairs, and handles all program Assistant Secretary legal issues relating to ethics and compliance with the governmentwide Standards of Conduct; financial disclosures by appointees and senior Department officials; and political and official travel. The Office also represents the Department in Unfair Labor Practice claims; adverse and disciplinary employee actions; and discriminatory employment matters. The Office has legal responsibility regarding contract and procurement, bid protests and contract claim disputes filed before GAO, the HUD Board of Contract Appeals or the U.S. Court of Claims. The Office of Human Resources will be critical to the Department�s employment reduction and downsizing operations. This office has three divisions: the Ethics Law Division, the Personnel Division, and Procurement and Administrative Law Division.

Ethics Law Division

The Ethics Law Division recommends Departmental policy for compliance action regarding the Ethics in Government Act, the HUD Reform Act of 1989, the criminal conflict of interests statutes under 18 U.S.C., and the Standards of Conduct regulation for employees of the Executive Branch. The Division provides advice to high level agency officials regarding prohibited financial interests; financial disclosure reporting requirements; political and official travel; and outside and post-government activities. The Division also coordinates corrective and disciplinary action with HUD program offices regarding conflict of interest declinations issued by the Justice Department. The Division advises the Office of the Secretary and Principal Staff on matters of gift acceptance, the Hatch Act, and the reporting requirements governing official and political travel. The Ethics Law Division is charged with assisting the Department in meeting an array of mandatory requirements imposed by law and regulation. These include the responsibility for:

• Coordinating the Department�s ethics program and responding to inquiries, audits and reports from the Office of Government Ethics, GAO and other governmental entities;
• Providing annual ethics training to HUD employees throughout the nation, including training for newly hired employees;
• Ensuring that an effective system continues to be in place regarding the review and certification of public and confidential financial disclosure reports; and
• Providing Departmentwide advice and counsel to the Agency�s 11,000 employees regarding compliance with the Governmentwide Standards of Ethical Conduct regulation at 5 CFR Part 2635, the Federal criminal statutes under 18 U.S.C., HUD Reform Act of 1989, and the Hatch Act.

Personnel Law Division

The Personnel Law Division provides counsel to HUD management on the implementation of an array of Federal personnel laws and regulations governing whistleblower protection actions, equal employment opportunity, adverse and disciplinary employee actions, labor relations and the Department�s downsizing operations. Attorneys in this Division serve as Agency Representatives in administrative hearings before the Merit Systems Protection Board (MSPB), the Office of Special Counsel, the Equal Employment Opportunity Commission (EEOC) and the Federal Labor Relations Authority (FLRA). The Division assists Assistant U.S. Attorneys in personnel litigation actions filed in the Federal courts.

The functions of the Personnel Division are critical to the Department�s consolidation and downsizing activities. Given the Department�s budget and staffing constraints, aggressive action will be required in order to meet the stated goals. As a result, the workload in this Division will increase substantially throughout the next and outlying fiscal years. As the agency moves toward a smaller work force, the number of personnel challenges is likely to increase in every forum, including appeals filed in the Federal courts. The Division will also be required to provide more direct assistance to HUD Field Offices toward addressing actions filed by management officials as HUD consolidated functions and programs in Headquarters and the Field Offices. The Division will continue to play a major role toward avoiding litigation through innovative Alternative Dispute Resolution action. The Division will be a critical link to the Personnel Legal Services being provided at the location of the ASCs and will provide advice, guidance and oversight of those centers, with the Assistant General Counsel directly involved in the rating of field personnel attorneys.

Procurement and Administrative Law Division

Attorneys in the Procurement and Administrative Law Division advise HUD management, and matters relating to procurement and contracting, bid protests, delegations of authority, and matters filed with the General Accounting Office (GAO), the HUD Board of Contract Appeals and in litigation before the Court of Claims. The Division also issues Freedom of Information Act (FOIA) appeals and provides legal assistance regarding training and other administrative and litigation law activities.

The procurement and contracting legal functions performed by attorneys in this Division require expedited legal research and the provision of expert legal advice regarding contact award, procurement and grant formulation. These functions require that the Division maintain expertise regarding the Federal Acquisition Regulation, the Competition in Contracting Act, and the Brooks Act. Staff serve as legal counsel to numerous Source Evaluation Panels and Boards. Division attorneys provide critical procurement advice and guidance to management officials. The Division is central to the Department�s contracting streamlining actions and provides legal assistance in implementing several streamlining recommendations. The workload in this Division is expected to increase over the next several years, as the Department moves toward consolidation and outsourcing of functions and operations in order to meet its downsizing goals. The Division will continue to play a major role toward avoiding litigation through innovative Alternative Dispute Resolution action. The Division will be a critical link to the Procurement Legal Services being provided at the location of the ASCs and will provide advice, guidance and oversight to those centers with the Assistant General Counsel directly involved in the rating of field procurement attorneys.

The Office of Insured Housing serves as program counsel for FHA which is the single largest program area in the Department. The term "program counsel" is used to describe those attorneys who specialize in the interpretation of statutes, regulations, administrative guidance, and case law interpretation that govern the operation of Departmental programs. The work includes providing oral and written legal guidance, preparation of correspondence on program legal matters, and drafting contracts and other legal documentation. The Office has substantial contact with HUD Field Offices, HUD Housing program staff, and members of the public on matters affecting FHA programs.

The Office provides legal services with respect to all FHA mortgage insurance programs under the National Housing Act and works with the other six OGC Offices on a regular basis. It actively supports the Office of Legislation and Regulations by drafting legislation and regulations on FHA programs and by submitting comments on regulatory and statutory initiatives as well as on NOFAs. The Office provided significant legal support for the regulation reinvention initiative and the drafting of necessary legislation. The Office coordinates with the Office of Litigation and Fair Housing on Departmental representation for defensive litigation as well as compliance with the Fair Housing Act and civil rights laws. The Office works on matters concerning affirmative litigation and preparation of legal advice relating to actions before the Mortgagee Review Board. The Office coordinates with the Office of Assisted Housing and Community Development on matters (e.g., the Section 8 program) that affect the FHA programs.

The Office of Insured Housing provides legal advice and support for the FHA program activities described below. The need for uniform interpretation (precedential in scope) of statutory and regulatory authority as well as program administrative requirements, however, will require the services of experienced program counsel in Headquarters OGC. This specialized legal expertise usually is not available in Field Offices where the legal work calls for a broader range of skills and experience from each attorney. Extensive staff reductions will require a reprioritization of legal services as well as a determination of which functions can be provided through procurement of outside legal counsel so that support can be provided in a manner that will further the Secretary�s priorities.

Multifamily Mortgage Division

This Division provides legal advice and support for FHA�s multifamily programs which include multifamily rental housing, elderly housing, nursing homes, intermediate care facilities, hospitals, group practice facilities, cooperatives and condominium projects, multifamily mortgage loan sales, and property disposition initiatives. This legal advice includes: support for the Office of Housing in development of new FHA mortgage insurance programs under existing insurance authorities; streamlining various program regulations for multifamily rental housing and health care programs; developing a risk-sharing program for hospital mortgage insurance; drafting new legislation which would consolidate the various multifamily rental housing and health care mortgage insurance authorities; assisting the Office of Housing in its effort with the Department of Health and Human Services (HHS) to develop and implement several major health care initiatives designed to strengthen communities by offering better quality health care to citizens; management and disposition of the HUD-owned inventory; operation of the State and Local Housing Finance Agency (HFA) Risk-Sharing Program and the Reinsurance Pilot Program involving Fannie Mae, Freddie Mac, the National Cooperative Bank, and the Federal Home Loan Bank of Seattle; developing new and modifying existing policies and procedures for avoiding loan defaults and mortgage insurance claims; implementation of the Prepayment and Preservation Program which has statutory processing deadlines; sale of HUD-held multifamily mortgages; defensive litigation support to the Office of Litigation and Fair Housing Enforcement and to Field Offices on all cases of national import within the FHA program area; implementing the fiscal years 1997 and 1998 Portfolio Reengineering Demonstration programs; review of FHA documents in time-sensitive bond refunder transactions; processing FHA multifamily mortgage insurance claims; and advice regarding operation and improvement of existing programs of mortgage insurance, including the interpretation, application, and revision of existing documents, guidelines, and regulations.

Single Family Mortgage Division

This Division Provides legal advice and support for FHA�s single family programs which include Title I property improvement and manufactured home programs, Title II mortgage insurance programs, single family mortgage loan sales, property disposition and affordable housing initiatives, and housing counseling. This legal advice includes: support for implementation of the 1994 Single Family Foreclosure Act which provides for nonjudicial foreclosure of HUD-held single family mortgages; drafting changes to regulations and agreements for implementation of two single family risk sharing programs; assistance in management of the HUD-held mortgage portfolio; implementation of new strategies in the area of housing counseling; assistance in expanding housing programs and developing affordable housing by expanding use of the Section 203(k) housing rehabilitation program; improving management of FHA�s acquired housing inventory; innovations to existing programs meeting specific needs (e.g., Home Equity Conversion Mortgage program); reviewing or drafting regulations, handbooks, or other issuances to implement new housing initiatives; enforcement of requirements for lender participation in FHA mortgage insurance programs (e.g., approval and monitoring of Title II mortgagees and Title I lenders); advice to Title I Accounting and Servicing in effecting repurchase by Title I Lenders of improperly originated or serviced Title I loans and in debt collection activities; implementation of innovations to Title I home improvement and manufactured home programs; implementation of Section 235(r) mortgage assistance refinancing program; and implementation of FHA�s new loss mitigation statutory authority.

j.OFFICE OF LEGISLATION AND REGULATIONS

The Office of Legislation and Regulations performs a variety of legal functions in connection with the Department's legislative and regulatory programs. The Office has two Divisions--the Legislation Division and the Regulations Division each headed by an Assistant General Counsel. Major areas of legislative responsibility include: development, preparation and clearance of the annual and special programs of authorization legislation; provision of legal counsel during Congressional consideration of the legislation; preparation and clearance of reports on proposed or pending Federal legislation; provision of drafting and all other legal services with respect to appropriations law and the Department's annual and other appropriation Acts; response to Congressional budget and requests for assistance in drafting HUD-related legislation; and maintenance of a legislative reference service for the Department and members of the public. Major areas of responsibility for regulation include: drafting and clearing regulations and other policy documents (e.g., NOFAs) necessary to carry out the Department's programs and policies; managing HUD's implementation of rulemaking under 24CFR Part 10, Section 7(o) of the Department of Housing and Urban Development Act, the Regulatory Flexibility Act, the Paperwork Reduction Act, and Executive Order 12866; clearing within the Office of General Counsel non-regulatory Departmental issuances; preparing the Department's views on proposed Executive Orders; and advising program offices concerning newly enacted legislation which may give rise to a need for new or amended regulations.

The Office is responsible for ensuring that the policies of the Department are translated into action documents of the highest quality, frequently under exceedingly tight time schedules. Since the Divisions' work products become enacted as statutes or otherwise have the force of law, perfection is always the necessary goal. The work is exacting and relentless: new "priority" regulations and legislative assignments are frequently added. The reduction of FTEs will require the Office to set more stringent priorities for the work of its two Divisions. Since the implementation of the expected demands of the Secretary's initiatives are to a large extent within the responsibilities of the Office, this management task will be very challenging.

Legislation Division

The demand for the Legislation Division's services has grown dramatically over the last several years and is expected to continue at or above the current level for the foreseeable future as major legislation affecting the central mission of the Department is proposed by the Administration and considered by the Congress. Priority work performed by the Division includes: ensuring that HUD's annual legislative program is completed on time and at the level of quality that is required effectively to present the Department's legislative priorities; preparing reports (requests for comments on pending and proposed legislation from the Congress and the Office of Management and Budget) so that the Department can communicate its views within the Administration and with the Congress on a host of important proposed and pending bills in a timely manner; meeting Congressional requests for technical drafting and other services; and providing ongoing advice on Budget and Appropriation Law matters.

Regulations Division

The Department has historically carried a docket of over 300 rule assignments. The Regulation Division's workload for 1998 and thereafter is expected to increase, given the need to implement through regulation and related documents any major changes in HUD's authorizing legislation or policies, and continuing demands for streamlining existing regulations. With its current small staff, the Division is able to work primarily only on the Department's very highest priority rules--the so-called "Top 25" list of rules and other high priority documents, and funding documents (NOFAs), as well as high-priority, externally required documents, such as the Semi-Annual Agenda of HUD rules and the annual Regulatory Plan.

k. OFFICE OF LITIGATION AND FAIR HOUSING

The Office of Litigation and Fair Housing has two Divisions: the Litigation Division and the Fair Housing Division.

Litigation Division

The Litigation Division performs a central coordinating role with respect to all litigation brought against HUD. The Division, working in conjunction with the Department of Justice (DOJ), handles the defense of major, nonroutine lawsuits against the Department involving substantial programmatic issues of nationwide impact, or raising issues of particular importance or sensitivity. The Division maintains a unique function combining negotiations of settlements with its defensive role. Since the Department does not control the origination of the cases in defensive litigation, the Division is not able to decline to defend these cases, particularly in the implementation of court orders or settlement agreements. The Division's attorneys are responsible for handling, in conjunction with DOJ counterparts, lawsuits in Federal courts throughout the country. Each attorney is responsible for handling all aspects of litigation with respect to his or her individual caseload, which can vary in size, depending on the work demands of the assigned cases.

Cases that are sufficiently important, complex, and/or sensitive must be handled in Headquarters by the Litigation Division, and not in HUD Field Offices, because:

the Litigation Division's attorneys are experienced in handling cases requiring familiarity with complexities of constitutional law and the Administrative Procedure Act, including recent evolutions in those fields. Working with DOJ, this Division is able to present legal arguments that are on the very cutting edge of the law. Many cases handled by the Litigation Division have implications for HUD nationwide. For example, the Division is handling the defense of numerous cases filed by over 180 owners of low-income properties against the United States, under the Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA). It is also defending against litigation created by the Department�s sales of sizable pools of HUD-held mortgages. The Division acts as a convenient and logical conduit to coordinate events that are happening throughout the country. HUD Field counsel, by contrast, generally handle cases with implications within their designated geographic area.

In addition, the Division performs a central coordinating function with respect to Civil Rights litigation brought against the Department. The Division will also perform an oversight function for the implementation of settlements and consent decrees relating to civil rights litigation. The Division prepares work on defensive litigation civil rights issues of national significance and interest.

Since these cases almost always challenge decisions made in Headquarters, the decision makers must be consulted throughout the litigation, both for the preparation of HUD's defenses, as well as toward possible settlement. The Division's location in Headquarters affords ongoing access to decision makers in a much more efficient and cost effective way than if the various Field Assistant General Counsel had the lead. The Division spends considerable time and effort coordinating with HUD program officials so that the Department�s responses to discovery, and the positions taken in legal briefs, accurately reflect HUD practice and policy.

The cases the Litigation Division handles are normally also assigned by DOJ to Main Justice cases, rather than United States Attorneys' offices, and this Division works with Main Justice on an ongoing basis.

Fair Housing Division

The primary function of the Fair Housing Division relates to litigation legal work exclusively in conjunction with, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act, the Age Discrimination Act, the Fair Housing Act, Executive Order 11063 concerning Equal Opportunity in Housing, and Executive order 11625 concerning Minority Business Enterprises. The Fair Housing Division provides legal advice on the Fair Housing Initiatives Program (FHIP), the Fair Housing Assistance Program (FHAP), and the implementation of Fair Housing regulations. The Division conducts legal analyses involving the substantial equivalency of proposed and enacted State fair housing laws, and the review of legal analyses of local fair housing ordinances which have been drafted by HUD Field Assistant General Counsel. The Division also works with the Assistant Secretaries for Housing, Public and Indian Housing, and Community Planning and Development in developing procedures for assuring that housing and community development activities promote the achievement of the goal of fair housing.

The Fair Housing Division prepares legal opinions on fair housing issues of national significance and interest. These opinions require substantial research and expertise in fair housing and civil rights law and routinely include policy considerations involving the General Counsel and the Assistant Secretary for Fair Housing and Equal Opportunity. The Division will focus on National policy and affirmative litigation enforcement requirements, and will concentrate on providing direction to the field attorneys who will be responsible for affirmative litigation enforcement activities in all cases under the Fair Housing Act. The enforcement matters handled by the field, with guidance as necessary from this Division, will include the initiation and conduct of administrative proceedings involving complex factual issues and novel legal questions, the preparation of proceedings and the development of recommendations to the Attorney General for the appeal of and appearances as amicus curiae in Fair Housing cases decided in Federal District Courts.

2. FIELD

The primary mission of the Field legal staff is the provision of support, advice and counsel to program administrators in the Field. As Field restructuring is implemented, Field legal services are increasingly being called upon to be a source of stability and a source of authority to provide the necessary assurance program managers seek in their assumption of new responsibilities.

In the Field, the Assistant General Counsel, and Field Counsel are the chief legal officers of their respective Offices. They receive operational direction, administrative support, and professional advice and direction from the General Counsel and Deputy General Counsel (Operations).

a. Field/Legal Service Centers. Each of eight planned field Legal Service Centers will provide the full range of legal services and assistance to Secretary�s Representatives, State/Area Coordinators, and managers and staff in program and administrative offices located within the Center�s geographic jurisdiction. The Legal Service Centers are expected to be located in the following State offices:

• Massachusetts
• New York
• Pennsylvania
• Georgia
• Illinois
• Texas
• Colorado
• California

Each Center is headed by an Assistant General Counsel, who reports to the Deputy General Counsel for Operations in OGC-Headquarters. It is anticipated that as a result of consolidation, the jurisdiction of the Assistant General Counsel in Colorado will be expanded to also include legal work for the program offices in Missouri, Kansas, Iowa, and Nebraska, and the jurisdiction of the Assistant General Counsel in California will be expanded to also include responsibility for legal work in Washington, Oregon, Idaho, and Alaska. Legal staff outstationed in both Kansas City and Seattle report directly to the AGCs in Colorado and California, respectively.

Attorneys will be located in the multifamily, FHEO and/or public housing program Hub offices, located in the following:

• Hartford, CT
• Manchester, NH
• Buffalo, NY
• Newark, NJ
• Baltimore, MD
• Washington, DC
• Pittsburgh, PA
• Richmond, VA
• Birmingham, AL
• Caribbean
• Coral Gables, FL
• Columbia, SC
• Greensboro, NC
• Jackson, MS
• Jacksonville, FL
• Memphis, TN
• Louisville, KY
• Indianapolis, IN
• Cleveland, OH
• Columbus, OH
• Detroit, MI
• Milwaukee, WI
• Minneapolis, MN
• New Orleans, LA
• Oklahoma City, OK
• San Antonio, TX
• Houston, TX
• Little Rock, AK
• Kansas City, KS
• St. Louis, MO
• Omaha, NE
• Phoenix, AZ
• Los Angeles, CA
• Seattle, WA

b.Litigation. Litigation is a major responsibility of the Field Counsel. It involves working with the U.S. Attorneys in handling cases to which HUD is a party and participation with local government or private attorneys in handling cases involving HUD-assisted local governmental activities. The caseload covers the full range of the Department's program responsibilities, including subsidized and insured housing, property management and disposition, and community development programs, as well as cases involving claims collection, environmental issues, civil rights, landlord-tenant matters, architectural and construction contract disputes, and tort claims. Field Counsel also handle judicial foreclosures of multifamily projects, single family defensive foreclosure actions, and some of the affirmative litigation cases instituted by the Department.

c.Fair Housing and Equal Opportunity Enforcement. This function involves providing legal services with respect to the enforcement of civil rights laws and equal opportunity requirements applicable to HUD programs. Other services provided include nondiscrimination in HUD-assisted programs, fair housing, equal employment opportunity, and increased employment opportunities for lower-income persons in connection with HUD-assisted projects. Field Counsel also make the initial determination of the substantial equivalency status of State and local ordinances on fair housing. The effort to eliminate systemic discrimination in housing and the Department's strengthened procedures for Title VI compliance reviews have substantially increased the fair housing/equal opportunity workload of Field Counsel.

Field Counsel are now fully involved in Fair Housing enforcement: they must review the Final Investigative Report (FIR) where a determination of reasonable cause or no reasonable cause has been made by the Office of Fair Housing and Equal Opportunity; they represent complainants and the Secretary at hearings held before Federal Administrative Law Judges in certain types of cases; they assist the DOJ and the U.S. Attorneys in fair housing cases tried in Federal District Court; they process requests for prompt judicial relief where a unit will be sold or rented before a case can be investigated and litigated or where a complainant is about to be evicted; and they attend training on the processes involved in the handling of fair housing enforcement cases.

d. Procurement and Administrative Law. Legal advice will be provided on a variety of administrative law issues, including procurement, contract administration, Freedom of Information Act, Privacy Act, delegations of authority, and similar matters.

With regard to procurement and contracting issues, the Legal Service Center located where ASCs are located will dedicate attorneys to be responsible for providing legal advice and litigation services, including representing the Department before administrative forums to defend HUD�s position in bid protests and claim disputes.

As a result of increased emphasis on the importance of quality control in procurement and contracting matters, attorneys are located in the Legal Centers for each of the Administrative Service Centers to provide legal advice and guidance to the Contracting Division managers and staff members in those ASCs. Because these attorneys provide contracting legal support covering several programmatic and geographic jurisdiction, the Legal Center attorneys have a dual reporting responsibility to both the Deputy General Counsel (Operations) and the Assistant General Counsel for the Legal Centers servicing the ASCs. Such dual reporting responsibility ensures greater consistency and quality of service throughout the country.

e. Personnel Law. Legal advice and services to the Department are provided on personnel issues, including misconduct, unsatisfactory performance, labor relations, equal employment opportunity, and other employment-related matters. The legal support includes representing the Department of Justice in Federal court.

In addition to legal support within OGC-Headquarters, attorneys located in the Legal Centers in each of the Administrative Service Centers provide advice and guidance to the Human Resources Divisions in those ASCs. Because the Legal Center attorneys provide legal support to managers and staff covering several programmatic and geographic jurisdiction, the Legal Center attorneys have a dual reporting responsibility to both the Deputy General Counsel (Operations) and the Assistant General Counsel for the Legal Centers servicing the ASCs. Such dual reporting responsibility ensures greater consistency and quality of service throughout the country, as well as providing legal assistance to supplement that given by Headquarters OGC.

f. Federal Tort Claims Center. The Function of this office is to provide centralized handling of tort claims filed against HUD from the Field Legal Center in New England. All claims throughout the country will be forwarded to the Claims Center, where staff will review incoming tort claims, determine if additional documentation or investigation is necessary, and decide whether the claim should be denied or settled. If the claimant initiates litigation, the Claims Center is responsible for handling the litigation, including monitoring contract legal services that may be procured for this purpose. This approach ensures that tort claims are dealt with in a systematic, consistent manner.

g. Single Family. For those offices in which a Single Family Homeownership Center is located, the field Legal Center includes staff dedicated to providing legal support and assistance to the SFHC managers and staff. This support includes a wide range of legal issues affecting FHA single family mortgage insurance programs, from title concerns and land trust matters to administrative sanction review and case preparation.

h. Housing Programs. Field Counsel provide all legal services required in connection with HUD's insurance of mortgages on multifamily properties, including representing the Department at initial and final closings of projects, among which are those financed by tax-exempt bonds. The closing attorney is responsible for assuring the legal sufficiency of all closing documents for full insurance projects. Field Counsel provide legal reviews of applicable documents where there is a change in the mortgagor entity, and furnishes legal assistance in connection with the non-judicial foreclosure of multifamily projects, the management and disposition of acquired properties, debt collection, and bankruptcies. Field Counsel also review Section 202 Direct Loan applications and conduct initial and final closings of Section 202 projects. In the Housing Development Grants program, Field Counsel are required to review legally binding commitments and settlement agreements. In addition, Field Counsel provide legal advice and guidance on Single Family Mortgage Insurance programs. Field counsel will be assuming greater responsibility for Mortgage Sales and Portfolio Reengineering.

i. Community Planning and Development. This function includes the provision of legal services required in connection with the CDBG program. Field Counsel prepare contracts, amendments, special contract conditions, and sanctions imposed for noncompliance with program requirements. Field Counsel are also responsible for making legal determinations relative to environmental and labor requirements, for rendering decisions in connection with Field Office consideration of relocation appeals by displaced persons, and for providing legal advice concerning CDBG monitoring activities. In addition, Field Counsel provide legal support to the Section 312 Rehabilitation program.

j. Public and Indian Housing. In the conventional Public Housing program, Field Counsel are responsible for the review of organizational transcripts; review of applications; and preparation of annual contributions contracts and amendments, contracts of sale, and all supporting documentation for these instruments. Field Counsel also provide a wide range of legal services in connection with the low-rent public housing projects in occupancy, such as the preparation of contracts for modernization of projects, other contract amendments, and landlord-tenant matters. With respect to the Section 8 Lower-Income Housing Assistance program, Field Counsel are responsible for making determinations as to the legal capacity of participants in the program, and preparing all required contractual documents with respect to the provision of subsidy assistance. Field Counsel are assuming responsibility for public housing transformation efforts, including HOPE VI and mixed financed developments.

In order to more effectively and efficiently support the Department's community-first vision focusing on empowering communities, changing the dynamics of public and assisted housing, and ensuring the opportunity for homeownership for all Americans, the Office of General Counsel plans to reduce its Headquarters staff and Field staff in 1998 and 1999. OGC is currently participating in a number of Management Reform Teams to determine core Headquarters processes and identify what activities can be eliminated, transferred to the Field, contracted out or in-sourced, and restructured to reduce staff requirements. Undoubtedly, many changes will be required in the Headquarters and Field Offices to best support HUD�s Management Reform Plan to move from centralized operations to a performance-based systems for HUD programs, operations and employees.

TRAVEL

The table below identifies travel requirements unique to this activity.

The proposed travel budget of $308,000 for the Office of General Counsel for its Headquarters and Field staff would be used primarily for travel supporting the Secretary's priorities associated with creating a new HUD, Field legal counsel consolidation, litigation activities, fair housing enforcement, program enforcement, and to facilitate interaction between Headquarters and all Field legal offices and within the Field offices. Additionally, travel funds will be used to service the Office of Native American Programs that relocated to Denver, Colorado including development of negotiated rules to implement new legislation. The increase in travel proposed for the Field in 1998 and 1999 is necessary to cover increased travel expenses of the Assistant General Counsel and Field Counsel. Funding at the 1998 level is sufficient only to cover travel necessary for litigation. It is not adequate to cover travel associated with anticipated office consolidations, increases in enforcement activities, monitoring visits and field assessments by the Assistant General Counsel, travel for Field Counsel meetings, or training related travel. Headquarters and Field travel will increase as a result of office consolidations and the creation of the Enforcement Center.

CONTRACTS

Based on HUD�s Management Reform Plan, pending HUD 2020 legislation, reduction in legal staff, and the establishment of the Enforcement Center, OGC�s potential contracting out cost is anticipated to exceed $6.1 million. Contracting opportunities for OGC will include: (1) lawsuits, foreclosures, bankruptcy responses and sanctions ($2.5 million); (2) Headquarters-based mixed-finance public housing legal work and mixed-finance public housing legal work ($2.4 million); (3) preparation of defense of lawsuits and tort claims ($525 thousand); and (4) other contracting costs to include legislation/regulations, administrative law, and management operations ($631 thousand).