From: Jennifer Burns <jennifer_d._burns@HUD.GOV>
To: IGREPORT-L@hudlist.hud.gov
Cc:
Subject: Housing Choice Voucher Subsidy Standards, Housing Authority of the City of Houston, Houston, TX, 2004-FW-1010
Date: Wed, 29 Sep 2004 11:39:05 -0400

The Housing Authority of the City of Houston (the Authority) paid Section 8 Housing Choice Voucher funds for tenants to live in larger units than the Authority's policy allowed. Testing showed the Authority overpaid at least $797,280 to improperly house at least 352 Section 8 tenants between January 2002 and May 2004. Statistical testing identified $172,193 in actual ineligible overpayments and a minimum of $625,087 in projected overpayments. In addition, the Authority could overpay more than $3.2 million over the next 3.7 years if it does not implement controls to stop the overpayments. The Authority made the overpayments because its Contractor chose not to follow the Authority's policies to avoid increasing its already backlogged workload. The Authority's monitoring, which should have detected and prevented the improper payments, was not sufficient to do so.

We recommend that HUD require the Authority to comply with the unit size limitations in its Administrative Plan. We also recommend that HUD require the Authority to:
· Repay $172,193 in identified Section 8 overpayments;
· Review other identified tenants potentially living in units larger than the Authority's policy allows and repay any ineligible Section 8 assistance, which we project to be at least $625,087; and
· Implement controls to avoid future estimated overpayments of $3.2 million over the next 3.7 years.

This electronic audit report has been posted to our website and may be viewed directly via this link. This PDF version will allow you to print the report to your local printer.

http://www.hud.gov/oig/ig461010.pdf

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Another example of the local Waste, Fraud and abuse of HUD money at the local level. A few months back, it was pointed out that 82% of the vouchers go to black families, and that the Latino families get almost no help. Some of the money the City Housing Authority wasted could have gone towards housing Latinos who have been patiently waiting for help.

Tom Bazan
P.O. Box 2786
Houston, TX 77252

832.673.0018

BAZAN, a long-time real estate broker, appraiser and environmental consultant, is the Independent Candidate for the 18th Congressional District of Texas, running to replace Sheila Jackson-Lee

www.BazanForCongress.com