The Office of Inspector General recognizes that we are facing both uncertain and unprecedented times and is alerting the public about potential fraud schemes related to the CARES Act funding. Dishonest people may approach you with fraudulent offers of assistance during these economically difficult times. Be on the lookout for these common schemes. Note that scam attempts may be made by phone, mail, text, email, social media, or in person.

HUD OIG drafted a bulletin outlining guidance that the Federal Housing Administration (FHA) has provided for borrowers and servicers to implement the forbearance provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

HUD OIG drafted a fraud bulletin outlining potential loan modification and foreclosure rescue schemes that borrowers may face. 

Foreclosure fraud schemes can happen when a homeowner falls behind on their mortgage, usually, after a sudden life changing event challenges their financial stability, such as a death, a job loss, a medical issue, or other unforeseen event.

The devastating and tragic wildfires on Hawaii’s Maui, like many natural disasters, have caused hardship conditions that leave individual, businesses, and communities vulnerable to bad actors who take advantage of those impacted by these severe weather emergencies.

The U.S. Department of Housing and Urban Development (HUD) provides funding to victims recovering from natural disasters. It is critical that applicants fill out all paperwork and answer all questions truthfully when applying for disaster benefits.

Be on the lookout for fraudsters who may try to take advantage of quick timeframes and difficult circumstances that individuals and communities face following a disaster. View the video.

Natural disasters affect millions of Americans each year. Homeowners who experience a temporary or permanent loss of income due to a natural disaster or an increase in expenses post-disaster may be financially vulnerable, making it difficult for them to make mortgage payments. View the video.  

Be on the lookout for fraudsters impersonating HUD employees using social media schemes to offer you grants or housing assistance from HUD and asking for payment or personal information to receive grant funds. Fraudsters may use social media or other tactics to steal money from you by offering fake HUD benefits or fake HUD grants.  

HUD OIG is aware of schemes whereby fraudsters falsely announce on social media that waitlists for housing vouchers, including “Section 8” or other government-assisted housing are opening soon

Obtain additional supporting documentation or recover from city $795,178 paid for police protection, recreation and code enforcement activities.

Reimburse HUD for the $23,422 ineligible expenditures charged to the grant.

Establishes a formal repayment agreement with the Housing Authority that will allow the current debt owed to HUD of $533,432 to be repaid without disrupting the Section 8 Program. The following should be included in the agreement: prior HUD approval of the Housing Authority's proposed budgets; and a requirement that the Housing Authority revise its funding requisitions when leasing levels materially change so that future overpayments will be…

Reimburses its Section 8 Voucher Program $42,206 from non-Federal funds for the ineligible costs cited in this finding.

Provides documentation to support the $1,672 of unsupported payments cited in this finding. If documentation cannot be provided, then the Authority should reimburse its Section 8 Voucher Program from non-Federal funds for the amount that cannot be supported.

Recover from owner $2,687,822, the difference between $3,662,822 owed to HUD by owner and $975,000 proceeds of foreclosure sale.

Require the PRPHA to submit all supporting documentation and determine the accuracy of the $4,230,646 owed by PBA and its public housing management agents. Any amounts determined ineligible must be reimbursed to the ACC projects, from non-Federal funds.

We recommend that HUD’s Director of Public Housing Hub, Detroit Field Office, assure the Royal Oak Township Housing Commission: Reimburse its Public Housing Program $367,516 from non-Federal funds for the improper use of HUD operating subsidy funds cited in this finding.

We recommend that HUD’s Director of Public Housing Hub, Detroit Field Office, assure the Royal Oak Township Housing Commission: Reimburse its Public Housing Program $45,220 from non-Federal funds for the operating subsidy that was not used in accordance with HUD's One Strike Policy.

We recommend that HUD’s Director of Public Housing Hub, Detroit Field Office, assure the Royal Oak Township Housing Commission: Reimburse its Public Housing Program $3,340 from non-Federal funds for thee ineligible travel costs.