The US Department of Housing and Urban Development (HUD) is investigating a massive fraud within Colorado’s 59 public housing agencies (PHA) after it was discovered benefits were granted to 221 dead people.
The New York Post, citing input from unnamed sources, is reporting another 87 Colorado residents received HUD benefits despite being ineligible for assistance, while 2,519 beneficiaries need to undergo new verification to determine if they properly received government aid. Much of the alleged fraud is centered within the Denver Housing Authority.
“From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action,” a HUD spokesperson told The Post.
HUD is demanding the state’s housing providers reimburse federal funds that went to ineligible individuals or face penalties if they refuse to comply. HUD provides approximately $440 million in federal money to the state.














Aid needs to be administered locally, there needs to be oversight that there is no abuse. Years ago they had people from the welfare office who came to the house unannounced to see if the people receiving the benefits were the right ones. If it was a single mother with children and they found men’s shoes in the closet, they knew that some man was living there who should not have been.
We the people should be up in arms with all of this fraud. These self-serving politicians bamboozle the public with our tax dollars and work out deals that benefit them which provides job security for them. Why wouldn’t these recipients continue to keep them in office?
It is discriminatory to demand. the workers to report how much they worked for. Yet the NON worker do not have to report why they do not work especially the able bodies.
But that violated their privacy, and it was stopped. People on welfare feel they shouldn’t have to answer to those who are supporting and housing their deadbeat asses, as well as their deadbeat baby-daddies.
Very interesting that when you drive through a welfare housing project at night you see driveways full of paint trucks, work truck semis and other various work vehicles. But nobody in the neighborhood works or has a baby-daddy, that they know of.
Yearly CPA AUDIT EVERY taxpayer funded agency. Double penalties to fiduciary. Triple penalties to ELECTED officials who commit fraud. abuse. corruption, bribery. . ALL POLITICIANS convicted not to be allowed to be charged for misdemeanors.
Although I agree with Heidi, I know that staffing shortages would make what once happened impossible. With so many things being electronic now, including electronic signatures, this makes fraud easier and many are willing to take the risk. This type of fraud only makes the system look bad that is supposed to help those in need. I am glad they caught these fraudsters and I know there are more nationwide!
One of the rules is; If the tenant does not pay the portion of rent or.. they are taken out from the program. This rule is seldom applied. The less recipient the less job security for the office workers.
The federal government does way too much. It can’t watch every thing all the time.
we need someone watching the government !
But this article never tells us how many total HUD houses there are in the state. This number could amount to 1% which is nothing when considering the good of the system or how telling the fraud was pervasive. Plus is there an investigation to make sure that what was alleged as fraud is really fraud versus wrong bookkeeping or old data.???? We jump to conclusions in this country without knowing the important actual facts. And to the last comment, if you feel that way, then expect more additional homelessness, starving children and families, more crime due to abject poverty, etc. Or change the system to be more like Europe to eliminate the imbalance of the economy. We have an abundance in this country and then we squander it.
As a HUD housing provider there is NO excuse for this type of mistake if you’re doing the job you are paid to do. As a provider, it is our job to ensure fraud is not happening but we see it all the time. HUD sometimes doesn’t enforce the rules and applicants are allowed to “self certify” wherein they forget that it’s illegal to lie. It’s not easy but we have to try to catch them at their game.
So how much fraud is acceptable? 1%? 10%? I work in the housing business and I can tell you ANY government program gets abused far more than 1%. The Covid area stuff was especially bad because people just stopped paying and knew you couldn’t do anything about it – even though they had stable incomes. The fact of the matter is we have plenty of able bodied people who choose not to work and provide for themselves because they can scam the system. As a taxpayer, I have no issue with helping the helpless – but I have a problem with being robbed in the name of “compassion”
We have an abundance in this country and then we squander it.”
Yes we do because we have corrupt and/or inept administration of social welfare programs. Unless you’re willing to admit reform, audits, and better accountability are necessary – just saying “we have plenty so let’s make sure it gets spread around” will continue to result in the sort of dishonesty and waste we have now.
I agree with the last comment… Not sure that this is really good journalism without answering those difficult questions… As far as it’s pervasiveness as fraud or just simple, bad bookkeeping or poor enforcement and leaving accounts on the books that should’ve been taken off…
Journalism should be held to a higher standard… And, in these times, journalists should seriously be doing a much better job… Especially with this administration
Dead people definitely don’t qualify so regardless of if the data doesn’t included all of the HUD recipients state wide. The fraud in the HUD program is nation wide.
The landlords and tenants are quality of fraud in most cases. Influx in rent and multiple people living in one house receiving benefits. Not to mention the people who work for States approving their friends and family to receive the benefits. Furthermore the more kids you have the more benefits you get & the more bedrooms the house has the landlord gets higher rents. Majority of the tenants never ever work. My words are based on what I’ve seen as a past landlord & a Realtor.