HUD Plans Five-Mile Office Move to Save Cash
Published Date: 6/24/2026
Notice
Summary
HUD plans to move the Kansas City, Missouri Field Office into the nearby Kansas City, Kansas Regional Office, just 5 miles away. This change aims to save money and improve service by combining teams in one spot. The move won’t happen right away—it’ll start after a 90-day review to make sure it’s a smart, cost-effective decision.
Analyzed Economic Effects
7 provisions identified: 4 benefits, 1 costs, 2 mixed.
HUD saves ~$298,827 per year
HUD expects to avoid $298,827 in annual lease and related costs by moving the Kansas City, Missouri Field Office into the Kansas City, Kansas Regional Office. One-time relocation costs are estimated at $11,639.28, producing net year-one savings of $287,187.72, a payback period of about 14 days, and 3-year savings of $896,481.
Missouri-resident HUD employees face state tax change
Missouri-resident HUD employees who will now be paid at the Kansas facility may be subject to Kansas nonresident withholding at Kansas' top marginal rate of 5.58% versus Missouri's 4.70%, producing an approximate increase of 0.88% of wages; they must file a Kansas nonresident return and a Missouri resident return and may claim a Missouri resident credit.
No planned HUD job cuts for 25 staff
HUD says all programs and staffing levels will be retained and no reductions in Full-Time Equivalents (FTEs) are planned when the 25-person Kansas City, Missouri Field Office is consolidated into the Kansas City, Kansas Regional Office.
Kansas-resident HUD employees get simpler taxes
Employees who already live in Kansas and currently commute to the Missouri office will no longer need to file a Missouri nonresident return or claim credit for taxes paid to another state once their workplace moves to Kansas, resulting in simplified tax filing and a net-neutral financial effect.
Kansas City earnings tax effects for some workers
Kansas City, Missouri (KCMO) residents will continue to pay the city's 1% earnings tax after the office moves; employees who live outside KCMO but currently work at the Missouri facility may no longer be subject to the 1% KCMO earnings tax as nonresidents after the move to Kansas.
Minor local business and office-space effects
Removing about 25 HUD employees from downtown Kansas City, Missouri may cause a small drop in patronage for nearby businesses and a minor reduction in local demand for commercial office space; the Kansas City, Kansas facility will gain those employees and see slightly higher patronage and better federal building utilization. Overall the metropolitan area impact is expected to be net-neutral.
HUD service availability preserved after move
HUD states that availability, accessibility, and quality of services (including FHA mortgage insurance, Public and Indian Housing, and Community Planning and Development programs) will be maintained or modestly improved after consolidation because staff and program levels will be retained and the offices are only about 5.2 miles apart.
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Key Dates
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