Unfair GapsπŸ‡ΊπŸ‡Έ United States

Housing Programs Business Guide

5Documented Cases
Evidence-Backed

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All 5 Documented Cases

Unauthorized Cohabitants and Illegal Subletting

$Overpaid subsidies per unit monthly

Tenants allow unauthorized occupants or sublet units to evade eligibility rules in assisted housing. 67% of operators report this, leading to overpaid subsidies. Detection relies on complaints or file reviews, often after months of abuse.

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Audit Failures from Undetected Tenant Fraud and Errors

$Recouped overpayments and disallowed costs per audit

PHAs experience audit failures due to poor verification of income, eligibility, and occupancy, resulting in disallowed subsidy costs. Common processing errors compound fraud, leading to repayment demands. Proactive fraud units mitigate but recurring issues persist without systemic checks.

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False Certifications and Occupied Unit Billing Fraud

$Millions annually across HUD programs

Owners falsely certify to HUD that units are occupied or meet housing quality standards, leading to improper subsidy payments. This occurs during billing and inspections in housing assistance programs. Detection failures allow ongoing improper payments until audits or complaints reveal the scheme.

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Low Income Tax Credit Construction Cost Inflation

$Excess funds siphoned per project, recurring across developments

Developers inflate construction costs in affordable housing projects to secure larger loans and siphon excess funds. Funds are diverted before completion, undermining program integrity. Recovery is challenging due to falsified records discovered post-construction.

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