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.

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), and the Office of the Chief Procurement Officer have identified an ongoing fraud scheme intentionally targeting small businesses, large corporations, government vendors, and contractors for the purpose of obtaining electronic equipment such as laptops, mobile phones, hard drives, digital projectors, solar panels, and other high-value merchandise. The…

Protect yourself and avoid falling victim to Section 8 housing voucher fraud schemes.

Be aware! Mortgage loan modification scams are schemes to take your money, often by making a false promise of saving you from foreclosure.

Be aware! Phone and computer scammers may contact you and claim to be from the government. These scammers may threaten you with jail or fines if you do not send them cash or gift cards within a short period.

The OIG investigation focused on the Cairo, IL, based Alexander County Housing Authority's (ACHA) improper usage of HUD subsidized Asset Management Project (AMP) funds with prosecutorial consideration being given to 18 USC 666 (Theft, Intentional Misapplication of Funds), 18 USC 1001, (False Statements) and 18 USC 371 (Conspiracy). These funds (also referred to as operating funds and low rent housing project funds) and Capital funds are governed…

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.  

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.

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.

Require the Municipality to obtain and submit all supporting documentation and HUD determine the eligibility and propriety of $1,011,801 in administrative costs the Corporation charged to the Block Grant revolving fund. Any amounts determined ineligible must be reimbursed to the Block Grant program from nonfederal funds.

Require the Municipality to obtain and submit all supporting documentation and HUD determine the eligibility and compliance with national objectives of the $631,195 the Corporation disbursed for the four loans. Any amounts determined ineligible must be reimbursed to the Block Grant program from nonfederal funds.

We recommend that the director of HUD’s Public Housing Hub, Cleveland Field Office, require the Authority to provide support or reimburse its Section 8 program $812,967 ($738,708 in housing assistance payments plus $74,259 in related administrative fees) from nonfederal funds for unsupported housing assistance payments and unearned administrative fees related to the 65 tenants cited in this finding.

We recommend that the director of HUD’s Detroit Office of Public Housing require the Commission to Reimburse its program $535,903 from nonfederal funds ($507,860 for the property purchase plus $28,043 for legal costs) for the improper use of program funds to pay for the property’s acquisition costs.

We recommend that the director of HUD’s Cleveland Office of Public Housing require the Authority to provide documentation to support that the $913,365 in refunding savings cited in this finding was used to provide affordable, decent, safe, and sanitary housing to very low-income households or reimburse from nonfederal funds its refunding savings account(s), as appropriate, to be able to trace its use of the savings.

We recommend that the director of HUD’s Office of Public Housing instruct the Authority to reimburse HUD for the excessive administrative fee charge of $692,990 in capital funds in accordance with the procedures described in 24 CFR 905.120.

We recommend that the Director of HUD’s Cleveland Office of Public Housing require the Agency to determine the appropriate administrative fees for the applicable households for which it is unable to provide supporting documentation cited in recommendation 2D and reimburse its program the applicable amount from nonfederal funds.

Require the Authority to account for $134,889 in tenant rent receipts or repay any unsupported amounts to its public housing operating program from nonfederal funds.