Bill To Tighten Public Housing Subsidy Rules Passes House

SARASOTA, FL — A measure that would make it tougher for people to cheat taxpayers out of federal government housing subsidies cleared the U.S. House of Representatives unanimously Tuesday night.

Sponsored by U.S. Rep. Vern Buchanan, R-Florida, the bill seeks to tighten income and asset verification requirements for those who receive public housing funding.

The Housing Opportunity Through Modernization Act was created in response to an audit last year by the Inspector General of the U.S. Department of Housing and Urban Development. That audit uncovered evidence of abuse in the system. One case revealed involved a public housing tenant in Nebraska who managed to live in subsidized housing for 10 years. During that period, the person paid $300 a month in rent while earning an annual income of $65,007. The person also happened to have $1.6 million in assets, federal officials found.

“Thousands of needy families remain on long waiting lists for housing assistance while the system is abused by people who shouldn’t be in the program because they have too much money,” Buchanan told Patch following Tuesday’s passage of the bill. “These taxpayer subsidies are intended to support those who need help the most.”

Buchanan’s amendment, which has been supported by the Sarasota Housing Authority and the Manatee County Housing Authority, will require HUD to devise a better system to vet those who receive subsidies. The current law forces public housing agencies and landlords to rely on self-reporting from tenants in regard to income and assets. Buchanan’s measure would allow existing databases to be used to verify income and assets of those receiving public housing benefits.

“This will also improve the accuracy and integrity of the programs and help ensure that the right amount of benefits are going to help the intended recipients,” said William Russell, president and chief executive officer of the Sarasota Housing Authority.

Rob Rogers, executive director of the Manatee County Housing Authority, agreed.

“Anything to reduce the burden on families, improve our administrative efficiency of the program and minimize the risk of waste, fraud, and abuse is welcomed.”

Following Tuesday’s 427-0 vote, the bill now heads to the Senate for consideration. It is unclear how soon it might be addressed.

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