Industry News

HUD cracks down on housing assistance fraud

Launches initiative to expose federal employee fraud

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Federal government employees who are defrauding federal housing assistance programs are coming under increased scrutiny because of a new initiative dubbed "Operation FedRent," announced today by Housing and Urban Development Secretary Alphonso Jackson and HUD's Inspector General Kenneth M. Donohue. The new anti-fraud effort is designed to expose and prosecute federal government employees who misrepresent their incomes to obtain rental subsidies, effectively denying housing assistance to eligible families. HUD and its Office of Inspector General will deploy computer-matching techniques to reveal whether federal employees receiving rental assistance are under-reporting their income, the agencies said. Once identified, these tenants will be required to repay any excess assistance and the appropriate administrative or legal action will be taken. "Operation FedRent is more than just protecting the integrity of our housing programs, it's about making sure every available dollar reaches thos...