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HUD did not comply with PIIA because it did not report improper and unknown payment estimates for the Office of Public and Indian Housing’s Tenant-Based Rental Assistance (PIH-TBRA) program and the Office of Multifamily Housing Programs’ Project-Based Rental Assistance (PBRA) program, HUD’s largest rental assistance programs.  This noncompliance is significant because this is the seventh consecutive year in which HUD has been unable to produce PIH-TBRA and PBRA improper and unknown payment estimates, and that deficiency has contributed to HUD’s noncompliance with improper payment laws for 11 consecutive years.  

For several years, we have reported that HUD was unable to test for improper payments in these programs because the Office of the Chief Financial Officer (OCFO) was unsuccessful in working with the Offices of Public and Indian Housing, Multifamily Housing Programs, and the Chief Information Officer to securely collect program files needed to test payments.  This year, OCFO reported that HUD was again unable to complete improper payment testing because it was delayed in implementing a secure platform designed to collect supporting data and documentation and also because of limited staffing resources with technical knowledge of the payment cycles.  The lack of proper planning and coordination from leadership in HUD’s program and support offices has prevented HUD from addressing the root causes behind the failure to comply with improper payment laws. 

The audit follows HUD OIG’s “Management Alert: Action Is Needed From HUD Leadership To Resolve Systemic Challenges With Improper Payments,” issued January 23, 2024, urging HUD leadership to take immediate action to resolve systemic challenges with improper payments.