House Financial Services Oversight and Investigations Subcommittee Holds Hearing on HUD Improper Payments
On Tuesday, April 8, 2025, the House Oversight and Investigations subcommittee held a hearing regarding improper payments by HUD. HUD’s acting inspector general, Stephen Begg testified. President Trump fired HUD’s Inspector General in January 2025.
An opening statement from Rep. Dan Meuser claimed that HUD made improper payments, failed to audit its expenses to measure the exact amount of such payments, and of failed to adequately supervise Public Housing Agencies (PHAs). Chairman Meuser cited $1.7 billion in improper payments made by HUD in 2017. The most commonly-used programs in the office of Public and Indian Housing and the Office of Community Planning and Development totaled over $45 billion in 2023.
However, most PHAs perform well. PHAs are local government entities and appoint boards in accordance with state and local laws which oversee their management. HUD assesses agencies operating the federal Public Housing program through the federal Public Housing Assessment Subsystem. As of 2023, only 4% of agencies received the Troubled designation. This assessment considers physical condition, management and financial indicators, and timeliness in fund obligation. Within the physical assessment, PHA scores have remained steady over time despite inadequate funding from congress and agencies assessed under the old protocol—the Uniform Physical Condition Standards—and the new protocol—the National Standards for the Physical Inspection of Real Estate—improved their scores by 13 points.
NAHRO will continue to highlight the important work of PHAs and their efforts to be responsible stewards of federal dollars. PHAs help families access safe and secure housing through a variety of federal programs, including the Housing Choice Voucher and Public Housing programs. Critically, housing agencies also help develop and preserve affordable housing units across the country. Our affordable housing crisis, caused by a lack of underfunding and overregulation, cannot be solved without them.