Weekly Real Estate News
Federal auditors identified more than $4.3 million in improper housing-assistance payments and significant eligibility-screening failures at three of the nation’s largest public housing authorities, according to a new series of audits from the U.S. Department of Housing and Urban Development’s inspector general.
HUD’s Office of Inspector General said its reviews of housing authorities in Los Angeles, Chicago and Washington, D.C., found problems involving criminal-background checks, immigration-status verification, identity verification and program oversight.
At the District of Columbia Housing Authority, auditors identified 17 lifetime registered sex offenders participating in assisted-housing programs. The OIG said 13 had been improperly admitted despite a federal prohibition, resulting in more than $1.6 million in housing-assistance payments.
The D.C. audit also identified 13 participants with ineligible immigration status who benefited from more than $869,877 in HUD housing assistance. Another 178 participants could not have their immigration status verified because required information had not been entered into the federal SAVE verification system, auditors said.
Across all three authorities, HUD OIG said the audits found more than $4.3 million in improper payments. The watchdog attributed the failures to weaknesses including ineffective controls, inadequate oversight of third-party screening and inconsistent application of federal requirements.
The findings are audit determinations, not criminal convictions. Housing authorities are expected to respond to recommendations through HUD’s audit-resolution process.
