HUD report reveals $5.8B in Biden-era rental payments to dead tenants and potential noncitizens

WASHINGTON, DC: A recent audit by the Department of Housing and Urban Development has identified billions of dollars in potentially improper rental assistance payments made during the Biden administration, including payments linked to deceased individuals and recipients with unresolved eligibility questions.

The findings were detailed in HUD’s Agency Financial Report for fiscal year 2025 and were first reported by the New York Post. The report estimates that $5.8 billion in payments issued during fiscal year 2024 may have been improperly distributed.

HUD officials said the review raised concerns about oversight and verification practices used during the rollout of emergency rental assistance programs.

'Massive abuse' of taxpayer money

HUD Secretary Scott Turner sharply criticized the handling of the funds under the previous administration.

"A massive abuse of taxpayer dollars not only occurred under President Biden’s watch, but was effectively incentivized by his administration’s failure to implement strong financial controls," Turner said in a statement.

He said an emphasis on rapidly distributing aid led to weak oversight mechanisms.

Turner argued that the approach resulted in large sums failing to reach eligible recipients who were intended to benefit from the assistance.

Over 30,000 deceased tenants across 50 states

According to HUD’s internal review, automated data matching between HUD records and US Treasury databases identified 30,054 individuals listed as deceased who were either enrolled in rental assistance programs or received payments after their deaths.

The department said the individuals were identified across all 50 states.

HUD officials said a higher concentration of questionable payments appeared in New York, California, and Washington, DC, though the report did not provide a state-by-state breakdown of dollar amounts.

Thousands of recipients classified as 'potential non-citizens'

The audit also flagged payments made to thousands of recipients classified as "potential non-citizens," citing incomplete or insufficient eligibility verification.

HUD said the Biden administration did not provide adequate tools or guidance to ensure compliance with eligibility requirements.

The report stated that enforcement of what it described as "intricate rules governing rental assistance" was largely delegated to nonfederal entities.

HUD officials said that reliance, combined with limited federal oversight, complicated efforts to verify proper use of the roughly $50 billion distributed in fiscal year 2024.

HUD is hunting down the 'bad actors'

HUD officials said the department has begun additional reviews to determine the full scope of improper payments.

The agency said it is evaluating whether criminal referrals are warranted in certain cases.

"HUD is implementing processes and procedures to revoke or pause funding as part of its efforts to hold bad actors accountable," a department official told the Post.

Turner said the investigation remains ongoing. "HUD will continue investigating the shocking results and will take appropriate action," he said.