WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued a report assessing HUD’s use of telework and remote work programs, the administration of locality pay, and the support provided to supervisors that oversee employee participation in those programs.  

The Telework Enhancement Act of 2010 required Federal agencies to establish telework programs.  U.S. Office of Personnel Management (OPM) designated two types of arrangements in which employees may work from an alternative worksite: (1) telework, in which employees work from both an agency worksite and a telework worksite, and (2) remote work, in which employees work from a remote worksite.  In 2022, HUD established an expanded telework program and new remote work program, collectively called the Flexiplace program.  HUD OIG initiated this evaluation in response to a request from U.S. Senator Joni Ernst. 

The evaluation found that HUD has an extensive telework program, with 85 percent of employees teleworking regularly and 9 percent of employees working remotely, many of whom work remotely as a reasonable accommodation. Ninety-nine percent of HUD employees’ Flexiplace agreements complied with HUD policy.  

Additionally, the Office of the Chief Human Capital Officer (OCHCO) implemented multiple controls over the accuracy of telework and remote work data, including review of locality payments to remote workers. OCHCO had not previously reviewed locality payments to teleworkers but initiated a review of payments made to 700 remote workers shortly before we began our evaluation. That review identified six employees who had received incorrect locality pay. The office committed to doing reviews of new-approved remote employees’ locality pay. 

HUD OIG recommended that OCHCO implement a process to identify teleworkers most at risk of receiving incorrect locality payments, verify that their official duty stations are correct and they are reporting to their official duty stations as required, and if necessary, correct their locality payments. 

Anyone with knowledge of potential fraud, waste, abuse, misconduct, or mismanagement related to HUD programs should contact the HUD OIG Hotline at 1-800-347-3735 or visit, https://www.hudoig.gov/hotline.  For media inquiries, contact us at [email protected]. 

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