HUD Launches Department-Wide Reorganization and New HQ/Field Operating Model

On November 10, 2026, the U.S. Department of Housing and Urban Development (HUD) published a Notice of Intent to undertake a large-scale reorganization of its headquarters and field operating structure. The initiative is aimed at consolidating operations with current, significantly reduced staffing levels.

What Is HUD Doing - And Why Now?

According to HUD, the reorganization responds to substantial staffing reductions since 2025, driven largely by the Department of Government Efficiency (DOGE) cuts as well as voluntary departures. Staffing levels will remain consistent with current levels, which are approximately 35% below historic staffing levels. Many program offices experienced acute staffing losses, straining their ability to meet mission needs. HUD asserts that the reorganization moves away from highly siloed, geography-based structures toward program- and function-based models.

Implementation is planned to begin approximately 90 days after the November 10, 2026, notice, with most changes occurring in fiscal year (FY) 2027 and full implementation targeted for FY 2028. HUD emphasizes there will be no office closures, staff relocations, or planned reductions in staffing levels. This wide-ranging reorganization of HUD is being announced through a Notice of Intent, with only 90 days’ notice and no opportunity to provide comment.

Key Structural Changes by Major Office

The reorganization touches nearly every major component of HUD. Here are some of the most relevant changes for public housing agencies (PHAs), developers, and other affordable housing stakeholders:

Public and Indian Housing (PIH)

PIH will be fundamentally restructured along program lines, with one office for public housing responsibilities and another office for all Section 8 voucher program responsibilities.

The notice does not describe where the Special Applications Center, Moving to Work, Choice Neighborhoods, the Real Estate Assessment Center (REAC), or the National Standards for the Physical Inspection of Real Estate (NSPIRE) will live, or whether there will be a single point of contact for PHAs with split portfolios.

Office of Fair Housing and Equal Opportunity (FHEO)

FHEO will adopt a more centralized, functional model by consolidating operations under a centralized management structure, eliminating redundant management.

According to HUD, stakeholders can expect more uniform fair housing enforcement and compliance practices across regions.

Office of the Chief Information Officer (OCIO)

According to HUD, OCIO will undergo one of the most significant modernizations through the establishment of a data and “super intelligence” division under the Chief Technology Officer to elevate data and advanced analytics.

Office of Community Planning and Development (CPD)

CPD’s reorganization will include consolidation of non-disaster grant programs within the Office of Grant Programs into a single office, enabling better integration of policy resources and reducing barriers to affordable housing creation. Some offices will be renamed to align with broader HUD naming conventions.

According to HUD, grantees may see more integrated policy guidance and potentially more streamlined non-disaster grant administration. Grantees should be prepared for some bumps during the transition, as programs with different statutory authority are integrated into one office and staff unfamiliar with a particular program may be assigned responsibility for Notice of Funding Opportunities (NOFOs) and other programmatic requirements.

Ginnie Mae (GNMA)

The reorganization of Ginnie Mae includes creation of a new division for data and market analysis to enhance data-driven decision-making, as well as new branches dedicated to 1. budget and economic analysis, 2. issuer engagement tailored to underlying asset types, 3. customer-facing information, training, and support, 4. counterparty risk management, and 5. capital markets activities. GNMA will also rename and realign its data and technology management functions for operational efficiency.

According to HUD, issuers and investors should expect a more specialized, risk-aware, and data-centric Ginnie Mae.

Federal Housing Administration (FHA)

HUD announced three changes to the Office of Housing – Federal Housing Administration.

The Homeownership Centers (HOCs) in the Office of Single-Family Housing will change from geography-based to function-based. The reorganization will reduce the total number of HOCs to three, each with a specialization: Philadelphia (origination), Denver (servicing), and Atlanta (quality assurance).

Multifamily Housing will eliminate its Investments Division, as it no longer serves its original function, which was centralizing the Green and Resilient Retrofit Program (GRRP) grants and loans.

The Office of Operations will be reduced to a small footprint that supports the Office of Housing’s management team and will be renamed the Office of Management Operations.

Office of General Counsel (OGC)

One of the most significant changes in the reorganization will be within OGC. OGC will move from geographically siloed structures to a program-based legal model.

The historical distinction between Headquarters and Regional/Field counsel will be eliminated. All counsel, regardless of location, will report to one of three Deputy General Counsels responsible generally for (1) general, cross-cutting and administrative law; (ii) grants and assistance program legal support; and (iii) housing finance legal services.

Benefits expected from this shift include greater flexibility in assigning work across the country, centralization of administrative and cross-cutting legal services, and improved workload management across offices.

According to the notice, HUD does not plan to relocate OGC staff or reduce their pay grades as part of this change. OGC lost more staff to voluntary departures than most HUD divisions, and HUD has been working to hire new staff to manage the workload. Open questions remain, however, about whether the reorganization will further strain OGC’s already limited institutional and program knowledge, and whether attorneys will still be able to handle regional legal issues. PHAs that rely on regional OGC counsel should plan for possible delays or changes in points of contact.

Office of Field Policy and Management (FPM)

Implementation duties related to the Build America, Buy America Act will move into the office that already oversees cross-programmatic compliance.

Practical Implications for Stakeholders

According to HUD, businesses, lenders, housing authorities, grantees, and advocacy organizations should anticipate:

• more centralized and functional points of contact in areas such as fair housing, grants management, procurement, and legal support; and
• greater standardization and consistency across HUD programs and regions. HUD anticipates no disruptions tied to office closures or relocations.

We encourage anyone working with HUD to continue to engage with their HUD contacts to remain connected and be prepared for these structural changes and changes in staffing. There may also be challenges, as HUD staff are reassigned to new program areas and learn new programs and processes.

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