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Report Fraud, Waste and Abuse
June 12, 2017
  • Housing
2017-KC-0005
2017-KC-0005.pdf

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Office of Multifamily Housing Programs due to a previous audit of a cooperative housing property, which charged more for its Section 8 units than for its non-Section 8 units.  Our objective was to determine whether owners of cooperative housing properties charged more for their Section 8 units than for their non-Section 8 units.

We found that Owners of cooperative housing properties generally charged more for their Section 8 units than for their non-Section 8 units.  As a result, in 2016, 25 properties received a taxpayer-funded windfall of more than $3.1 million for their unsubsidized members.

We recommend that the Deputy Assistant Secretary for Multifamily Housing create and implement policies and procedures or change program regulations to prevent multifamily housing properties from charging more for Section 8 units than for comparable non-Section 8 units.

Recommendations

Housing

  •  
    Status
      Open
      Closed
    2017-KC-0005-001-A
    $3,144,894.00
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Closed on June 22, 2023

    Create and implement policies and procedures or change program regulations to prevent multifamily housing properties from charging more for Section 8 units than for comparable non-Section 8 units. For the 25 properties reviewed, this measure would prevent as much as $3,144,894 of Section 8 funds from subsidizing non-Section 8 units in the next year.