A family of four in New York City makes $497,911 a year but pays $1,574 a month to live in public housing in a three-bedroom apartment subsidized by taxpayers.
In Los Angeles, a family of five that’s lived in public housing since 1974 made $204,784 last year but paid $1,091 for a four-bedroom apartment. And a tenant with assets worth $1.6 million — including stocks, real estate and retirement accounts — last year paid $300 for a one-bedroom apartment in public housing in Oxford, Neb.
In a new report, the watchdog for the Department of Housing and Urban Development describes these and more than 25,000 other “over income” families earning more than the maximum income for government-subsidized housing as an “egregious” abuse of the system. While the family in New York with an annual income of almost $500,000 raked in $790,500 in rental income on its real estate holdings in recent years, more than 300,000 families that really qualify for public housing lingered on waiting lists, auditors found.
But HUD has no plans to kick these families out, because its policy doesn’t require over-income tenants to leave, the agency’s inspector general found. In fact, it encourages them to stay in public housing.
“Since regulations and policies did not require housing authorities to evict over income families or require them to find housing in the unassisted market, [they] continued to reside in public housing units,” investigators for Inspector General David Montoya wrote.
Click here to read more about regulations and policies did not require housing authorities to evict over income families or require them to find housing in the unassisted market.
