Dead people received taxpayer-funded housing benefits in Colorado, HUD says

More than 300 residents in Colorado received federal housing benefits despite being ineligible, including over 200 deceased individuals, according to an audit.

The New York Post reported on Thursday that an audit by the Department of Housing and Urban Development found that 221 deceased individuals and another 87 ineligible residents received taxpayer-funded housing benefits.

'From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action.'

The department is requiring an additional 2,519 beneficiaries to undergo verification to confirm their eligibility.

A source told the Post that HUD found that the fraud involved most of Colorado’s 59 public housing agencies and was “particularly pronounced in the Denver Housing Authority,” the news outlet wrote.

HUD provides approximately $440 million in taxpayer funds to Colorado’s PHAs, which oversee 38,000 leased units. These units are either public housing or covered by housing choice vouchers. Beneficiaries are typically required to contribute roughly 30% of their income toward housing.

HUD is expected to require PHAs to ramp up their beneficiary vetting efforts and remove ineligible recipients. Additionally, PHAs that provide benefits to ineligible beneficiaries will be required to reimburse the misused taxpayer funds. Those who fail to comply will face additional sanctions, the Post reported.

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Photo by Kevin Carter/Getty Images

The department’s findings have reportedly prompted a federal investigation into Colorado’s housing providers.

“From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action,” a HUD spokesperson told the Post.

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President Donald Trump, HUD Secretary Scott Turner. Photographer: Shawn Thew/EPA/Bloomberg via Getty Images

Earlier this week, the Washington Examiner reported that HUD sent federal investigators to Minnesota to look into potential housing fraud amid reports that $1 billion in taxpayer funds was funneled primarily to those of Somali descent.

HUD launched an investigation last week into Boston’s alleged “race-based” housing program, claiming that the city’s diversity, equity, and inclusion practices may “violate civil rights protections under the Fair Housing Act and Title VI.”

President Donald Trump unveiled a budget plan in May that proposed drastically cutting HUD’s discretionary funding by over 40%.

Denver Housing Authority did not respond to a request for comment.

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