HUD Ramps Up Public Housing Audits

As first reported by the Washington Examiner, the U.S. Department of Housing & Urban Development (HUD) is mandating that public housing authorities (PHAs) will have 30 days to share the citizenship status of its tenants or risk losing federal funding. 

HUD is reportedly planning to send letters to more than 3,000 PHAs, asking them to send detailed information on tenants whose immigration status is in question, data on tenant statuses across their programs, and documentation about how they abide by federal law. 

PHAs are state or local government agencies that operate under federal guidelines from HUD to provide safe, decent, and affordable rental housing to low-income families, the elderly, and people with disabilities. PHAs own and manage public housing units, which can include everything from single-family homes to high-rise apartments, and also administer other housing assistance programs like Section 8 vouchers

PHAs are required to share eligibility information, including citizenship status, with HUD. Section 214 of the Housing and Community Development Act specifically bars illegal immigrants from public housing programs. Families with a mix of eligible and ineligible members may receive prorated benefits, but all recipients must meet program requirements. 

The Washington Examiner reports that HUD officials stated that a “significant number” of PHAs either failed to collect citizenship information or did not share it with the federal government. The new letters from HUD demand that PHAs to fulfill six specific requests within 30 days, ranging from identifying mixed-status families and providing tenant data—including names, addresses, social security numbers, and proof of immigration status—to sharing detailed spreadsheets and compliance documentation. According to the new HUD mandate, PHAs must also supply records of tenants who may have misrepresented their legal status and complete tenant files for any individuals identified through these requests. 

President Trump issued Executive Order 14218 earlier this year, “Ending Taxpayer Subsidization of Open Borders,” directing agencies to “ensure no taxpayer-funded benefits go to unqualified aliens.” In enforcing this Executive Order, HUD has been tasked to: 

  • Identify all federally funded programs that currently permit illegal aliens to obtain any cash or non-cash public benefit, and take appropriate actions to align such programs with the purposes of the Executive Order and the requirements of applicable Federal law. 
  • Ensure that federal payments to states and localities do not facilitate the subsidization or promotion of illegal immigration to shield illegal aliens from deportation. 
  • Enhance eligibility verification systems, to the maximum extent possible, to ensure that taxpayer-funded benefits exclude any ineligible alien who entered the U.S. illegally or is otherwise unlawfully present in the U.S. 

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Picture of Eric C. Peck

Eric C. Peck

MortgagePoint Managing Digital Editor Eric C. Peck has 25-plus years’ experience covering the mortgage industry. He graduated from the New York Institute of Technology, where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career in New York City with Videography Magazine before landing in the mortgage finance space. Peck has edited three published books, and has served as Copy Editor for Entrepreneur.com.
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