The Department of Housing and Urban Development says it identified about $5.8 billion in federal rental assistance payments in fiscal year 2024 that went to recipients flagged as potentially ineligible, including tens of thousands of tenants listed as deceased, according to a newly released internal financial review.
The 183-page review examined nearly $50 billion in rental assistance distributed through two of HUD's largest housing support streams: tenant-based rental assistance, which includes Housing Choice Vouchers that help eligible households rent in the private market, and project-based rental assistance, which is tied to specific subsidized developments.
HUD officials said the potentially improper payments were spread across all 50 states, with the largest concentrations in New York, California and Washington, D.C. The review flagged more than 200,000 tenants for possible eligibility issues.
Among those, about 29,700 tenants were listed as deceased, about 9,400 were identified as possible noncitizens and more than 165,000 appeared to have household incomes above eligibility thresholds for their areas, according to the report summary described by HUD. The figures reflect preliminary flags that require additional confirmation, HUD officials said.
HUD Secretary Scott Turner said the findings point to broad weaknesses in oversight and internal controls, and the department plans additional reviews and enforcement steps.
"HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable," Turner said in a statement.
HUD said the questionable payments stemmed in part from directives to move large sums quickly with limited oversight and from heavy reliance on local public housing authorities, landlords and contractors to verify tenant eligibility.
Under the voucher program, local housing agencies typically administer assistance and certify eligibility, while project-based subsidies are paid to property owners under contracts that require compliance with federal rules.
The review covered roughly $33 billion in tenant-based assistance for more than 4 million households and about $16 billion in project-based assistance.
HUD said about $1.5 billion in tenant-based payments and $4.3 billion in project-based payments showed potential eligibility problems.
The new review follows earlier audits and evaluations by HUD's Office of Inspector General that have criticized aspects of the department's fraud risk management and internal controls, particularly after large infusions of emergency housing funds during the COVID-19 pandemic.
Those watchdog reports have urged HUD to strengthen how it identifies fraud risks and documents controls across major programs.
HUD said it is coordinating with the Department of Homeland Security to further review cases involving possible noncitizen recipients.
HUD officials also said the department could revoke or pause certain funding streams and make criminal referrals when warranted, once questionable cases are confirmed.
Former HUD Secretary Marcia Fudge and former acting Secretary Adrianne Todman did not immediately respond to requests for comment described in media accounts.
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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