WASHINGTON (TNND) — A report from the U.S. Department of Housing and Urban Development (HUD) found that billions of dollars in federal rental assistance were improperly distributed during the final year of the Biden administration, including payments being made to tens of thousands of dead people.
According to the 183-page audit, obtained by the New York Post, HUD identified $5.8 billion in “questionable” payments out of nearly $50 billion disbursed through federal rental assistance programs in fiscal year 2024.
The review flagged more than 200,000 tenants who may not have qualified for aid. Among them were 29,715 deceased individuals, 9,472 non-citizens and more than 165,000 households receiving assistance above income limits set for their local areas.
Auditors said concentrations of the suspected payments were found in New York, California and Washington, DC. Meanwhile, payments to dead tenants occurred in all 50 states.
HUD Secretary Scott Turner criticized the Biden administration’s handling of the programs in a statement to the New York Post.
“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,” Turner said in a statement to the New York Post, adding that corrective action is now underway.
The audit focused on two major housing programs: Tenant-Based Rental Assistance (TBRA), which spent $33 billion to support more than 4 million households, and Project-Based Rental Assistance (PBRA), which accounted for $16 billion in spending between October 2023 and September 2024. Investigators found eligibility concerns tied to $1.5 billion in TBRA payments and roughly $4.3 billion — or 26.4% — of all PBRA payments reviewed.
The report accused the Biden administration of prioritizing rapid distribution of funds without adequate safeguards.
“The directive from the Biden Administration to push funding out the door with minimal oversight and the design of HUD’s rental assistance programs placed substantial trust and responsibility in these non-federal entities, such as housing authorities, contract administrators, and landlords, to accurately assess tenant eligibility for two of the most complex rental assistance programs,” the audit stated.
“Moreover, the Biden Administration did not provide HUD with effective tools, technology, or access to the evidence necessary to verify whether these entities were properly enforcing the intricate rules governing rental assistance.”
HUD officials now plan to contact housing authorities and other partners to determine the full scope of the improper payments. Depending on the findings, the department may pause or revoke funding as well as refer cases for criminal prosecution.
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