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.
