The U.S. Department of Housing and Urban Development (HUD) subsidized over 100,000 apartments for tenants who do not meet work or community service requirements, costing taxpayers at least $37 million.
According to an audit released by the Office of Inspector General (OIG) on Wednesday, the federal government is at risk of losing an additional $448 million worth of subsidies this year on “noncompliant tenants.”
HUD offers subsidies for public housing, where rent can be as cheap as $50, to low-income individuals. Tenants between the ages of 18 and 62 who are not disabled, must do at least eight hours of community service or job training per month in order for the government to subsidize their rent, known as the “community service and self-sufficiency requirement” (CSSR).
The OIG found that HUD does not properly monitor the program, leading to thousands of ineligible tenants receiving subsidized housing.
“HUD subsidized housing for 106,000 units occupied by noncompliant tenants, out of nearly 550,000 potentially CSSR-eligible units nationwide,” the audit said. “Out of the nearly 740,000 adult tenants living in these units, HUD’s system contained incorrect CSSR status codes for 201,000 tenants.”