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HUD Flags $5.8 Billion in Questionable 2024 Rental Aid, Including Payments to Deceased Tenants

HUD will verify eligibility using Treasury and DHS data before imposing funding holds or referrals.

Overview

  • An internal HUD financial review identified about $5.8 billion of nearly $50 billion in FY2024 rental assistance as potentially improper.
  • More than 200,000 tenant records were flagged, including roughly 30,000 listed as deceased, about 9,500 potential non-citizens, and over 165,000 receiving aid above local thresholds.
  • HUD reported approximately $1.5 billion in questionable Tenant-Based Rental Assistance and about $4.3 billion in Project-Based Rental Assistance, equal to roughly 26% of PBRA payments.
  • Officials said suspect payments were concentrated in New York, California and Washington, D.C., with payments to deceased recipients appearing in all 50 states.
  • HUD plans outreach to public housing authorities and contractors, with potential pauses or revocations of funding and criminal referrals after confirming fraud; a 2022 HUD OIG audit had warned of weak antifraud controls.