HUD Audit Finds That Under Biden, Billions in Rental Aid Went to Ineligible Recipients, Including Dead Tenants
A sweeping federal review has found that billions of dollars in housing assistance were improperly distributed during the final year of the Biden administration, with payments going to tens of thousands of ineligible recipients, including people who were already deceased, the NY Post reports.
According to a report released by the US Department of Housing and Urban Development, auditors flagged $5.8 billion in “questionable” payments out of nearly $50 billion distributed through federal rental assistance programs in fiscal year 2024. The funds were paid out to public housing authorities, contractors, landlords, and other non-federal entities, according to the 183-page document.
Federal officials said the suspect payments were spread nationwide, with deceased recipients identified in every state. The highest concentrations of questionable disbursements were found in New York, California, and Washington, DC, which together accounted for a large share of the irregularities.
“A massive abuse of taxpayer dollars not only occurred under President Biden’s watch, but was effectively incentivized by his administration’s failure to implement strong financial controls resulting in billions worth of potential improper payments,” HUD Secretary Scott Turner said in a statement.
The audit found that more than 200,000 tenants were potentially ineligible for assistance, accounting for roughly 11% of the reviewed funds. Among them were 29,715 deceased individuals, 9,472 non-citizens, and 165,393 tenants whose rental subsidies exceeded eligibility limits for their local housing markets, particularly in cities such as New Orleans and other major metropolitan areas.
HUD programs are intended to help low-income individuals and families afford housing. Officials warned that misuse of funds could have deprived eligible households of assistance they urgently needed.
Investigators pointed to policy failures under the Biden administration, citing directives that emphasized rapid distribution of funds with limited oversight. The report also noted that HUD programs placed “substantial trust and responsibility in these non-federal entities … to accurately assess tenant eligibility,” creating opportunities for abuse.
“HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable. Additionally, the Department is advancing efforts made under President Trump’s first administration to strengthen program integrity and ensure taxpayer-funded assistance serves the vulnerable communities it was intended for.”
HUD officials said the department will now contact housing authorities and other participating entities to verify the scope of the misconduct. Depending on the findings, HUD may pause or revoke funding and refer cases for criminal prosecution.
“HUD is implementing processes and procedures to revoke or pause funding as part of its efforts to hold bad actors accountable,” one official said. “Additionally, the Department could make criminal referrals and exercise other enforcement actions once it has confirmed fraud occurred.”
The audit reviewed spending between October 2023 and September 2024, during which HUD disbursed $33 billion through Tenant-Based Rental Assistance (TBRA) programs covering more than four million households, and $16 billion through Project-Based Rental Assistance (PBRA).
Of the TBRA funds, approximately $1.5 billion involved tenants flagged for eligibility concerns. PBRA programs showed even higher risk, with about $4.3 billion — or 26.4% of all PBRA payments — tied to recipients with unresolved eligibility issues.
HUD also reported that, working with the Department of Homeland Security, it identified “thousands” of non-citizens who were receiving Section 8 or Section 9 housing assistance despite not qualifying for those programs.
The financial review was described by HUD as part of an effort to fulfill President Trump’s pledges to improve “accountability and transparency” and to protect “taxpayer funds against waste, fraud and abuse.”
Concerns about HUD’s oversight are not new. An earlier audit by the department’s Office of Inspector General, conducted after large funding increases from Biden’s 2021 American Rescue Plan Act and President Trump’s 2020 CARES Act, found serious weaknesses in fraud prevention. That October 2022 review concluded that HUD “needed significant improvement” in its antifraud framework and that officials overseeing both PBRA and TBRA programs were not conducting meaningful risk assessments.
The audit also found that HUD “did not have a clear process in place for PHAs [Public Housing Authorities], PBCAs [Performance Based Contract Administrators], and grantees to report instances of known or suspected fraud to HUD and HUD’s Office of Inspector General (OIG).”
In one high-profile case highlighting those risks, federal prosecutors in the Southern District of New York charged 70 current and former employees of the New York City Housing Authority by February 2024. The charges stemmed from a decade-long bribery scheme involving cash kickbacks from contractors.
US Attorney Damian Williams described the crackdown as “the largest single-day bribery takedown in the history of the Justice Department,” saying the scheme involved up to $2 million in corrupt payments and $13 million in no-bid contracts.
NYCHA, the largest housing authority in the country, serves more than 500,000 residents and received $3.86 billion in HUD funding in 2023. A March 2025 HUD OIG audit warned that funds flowing to the agency were at “greater risk of fraud” due to insufficient safeguards and unclear guidance.
“NYCHA partners with law enforcement to root out the corruption that directly led to the 2024 arrests,” a spokesperson for the housing authority said in a statement.
“Each of the 70 cases brought by DOI has led to a conviction, and all of the defendants have separated from employment. NYCHA has implemented all recommendations, while rebuilding its operations and procurement processes.”
{Matzav.com}
