HUD Found Providing Public Housing for the Wealthy

In a scathing report compiled by the HUD inspector general (IG), auditors calculate the department will pay more than $104.4 million this year to keep 25,226 families in public housing – families with incomes exceeding the 2014 income eligibility limits, including one Nebraska millionaire who pays $300 a month in rent to live in subsidized housing. When HUD decided in 2009 to abandon most of its operational oversight responsibilities and shift its emphasis to a single-pay government-subsidized rental housing program, the move -- dubbed “transformation” -- opened the floodgates to game the system. The investigation shows that most of the families earned more than the qualifying amount for more than one year, and failed to participate in a program that would allow them to continue living in public housing.  The Quality Housing & Work Responsibility Act of 1998 (QHWRA) requires [...]

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