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Report Fraud, Waste and Abuse
September 01, 2009
IED-09-004
IED-09-004.pdf

We completed an inspection to determine whether recipients of rental assistance payments under HUD’s Community Planning and Development (CPD) Programs also received rental subsidies under HUD’s Section 8 Housing Programs.  CPD funding for rental assistance to eligible individuals is provided through five separate grant programs—Shelter Plus Care, Supportive Housing Program, Housing Opportunities for Persons with Aids, Section 8 Moderate Rehabilitation for Single Room Occupancy, and HOME Investment Partnerships Program.  These programs are in addition to HUD’s Section 8 programs that also pay for rental assistance.  HUD’s CPD Director for the New York office expressed concern that the duplication of subsidy payments may be occurring between the programs.

Based on the sample of 123 CPD grant recipients in the New York office, our inspection disclosed no instances of duplication of rental assistance payments made using both CPD funds and Section 8 funds.  However, we did find that CPD grantees administering the programs were not consistent in their approach to enforcing the prohibition against such duplications.  Also, we identified one instance where rental assistance payments continued for an individual after the person moved out.

We recommend that the Deputy Assistant Secretary for Special Needs Programs advise  the (1) Regional CPD Directors to provide clear guidance and technical support to its grantees to ensure that they clearly understand their responsibilities in enforcing federal regulations pertaining to the proper payment of rental assistance subsidies under the Shelter Plus Care and Supportive Housing Programs; and (2) New York CPD Director to follow-up with the New York State Office of Mental Health (OMH) to determine whether an overpayment of rental assistance was made, and if so, the OMH should be directed to take appropriate measures to recapture the funds.