Trump admin probes Colorado after HUD audit finds 221 deceased listed among housing aid recipients

DENVER, CO: Federal housing officials have launched an investigation into Colorado public housing providers after an internal audit found that federal housing assistance was improperly issued to hundreds of ineligible recipients, including more than 200 deceased individuals.

The probe, initiated by the Department of Housing and Urban Development (HUD), follows findings that nearly 3,000 beneficiaries may not have qualified for assistance.

Officials say the review could result in reimbursements, sanctions, and additional enforcement actions. The investigation is part of a broader effort by the Trump administration to scrutinize housing programs nationwide.

HUD audit finds improper payments in Colorado housing agencies

According to a report shared by The New York Post, an internal audit determined that housing benefits were paid to 221 individuals who were deceased at the time assistance was issued, citing the HUD officials.

The review also found that another 87 recipients were otherwise ineligible to receive federal housing aid. In addition, 2,519 beneficiaries will now be required to undergo further verification to confirm their eligibility. 

“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 outlet. 

Sources familiar with the matter said the apparent misuse of funds occurred across most of Colorado's 59 public housing agencies, with issues particularly concentrated within the Denver Housing Authority. 

HUD officials are expected to formally require housing agencies to conduct additional eligibility checks and remove deceased or ineligible individuals from their rolls. 

Housing providers found to have improperly distributed funds will be required to reimburse the federal government for assistance paid to ineligible recipients. 

Agencies that fail to comply with HUD directives may also face further penalties or sanctions. 

Public Housing agencies in Colorado oversee approximately 38,000 housing units, including public housing developments and units supported through housing choice vouchers.

HUD provides roughly $440 million in federal housing assistance to the state each year. Under the program, tenants typically contribute about 30% of their income toward rent, with federal funds covering the remainder. 

Colorado review part of broader federal scrutiny of housing programs 

The Colorado investigation comes as HUD expands oversight efforts in other states.

Earlier this week, the Washington Examiner reported that the department plans to send investigators to Minneapolis and St Paul, Minnesota, to evaluate housing assistance programs there. 

The Minneapolis Public Housing Authority spends approximately $108 million annually on housing assistance, while St Paul allocates about $46 million each year.

HUD's planned review in Minnesota follows heightened federal scrutiny after the state's $1 billion Feeding Our Future fraud scandal and coincides with recent Immigration and Customs Enforcement (ICE) operations in the Twin Cities.