Report: Fed Gov’t Gave $37 Million in Housing Subsidies to Wrong People

A report found that the Department of Housing and Urban Development (HUD) gave away $37 million that was meant for housing subsidies for the poor to those who weren’t eligible for the program.

The subsidies were meant for “low-income people who meet the community service and self-sufficiency requirement” meant to help applicants ease back into the job market.

But a report from HUD’s Inspector General finds that the subsidies went to up to 106,000 people who didn’t meet the requirements of looking for work or entering a job training program. And many of them ended up getting ahead of those who did meet requirements.

The inspector general also claimed that the program lacked the controls necessary to certify if applicants met requirements.

“If HUD does not strengthen its controls, it will pay at least $448 million over the next year in subsidies for public-housing units occupied by noncompliant tenants that otherwise could house compliant households,” the IG report said.

After the IG report was released, HUD claimed it was already working on new controls for the program.

Follow Warner Todd Huston on Twitter @warnerthuston or email the author at igcolonel@hotmail.com.