HOUSTON – A federal audit by the U.S. Housing and Urban Development Department's Office of Inspector General says thousands of families in the country are living in public housing even though they make well over the minimum amount allowable at move in.
In Houston, more than 40 families currently make more income than they would be allowed to make if they were trying to apply for the program. More than 23,000 families are currently on a wait list to get into public housing.
The Houston Housing Authority does not ask tenants to move out as they begin to earn more income than maximum move-in guidelines.
Channel 2 investigative reporter Jace Larson aired an investigation last month showing how two families made $130,000 and $137,000, yet paid $554 and $786 for rent. After Channel 2 started investigating, the families moved out.
[SEE THE FULL INVESTIGATION HERE]
The Office of Inspector General's report, which examined public housing cases nationwide, several examples were highlighted. The following information is from the report:
Case 1
New York City Housing Authority, New York, New York – The Authority admitted the family to the program in November 1988, and it had been over-income since at least 2009. As of November 2013, the four-person household's annual income was $497,911, while the low-income threshold was $67,100. Three members of the household earned income. The member with the highest income earned $275,757.
In addition, the head of the household owned real estate that produced $790,534 in rental income between 2009 and 2013. As of July 2014, the family paid an income-based ceiling rent of $1,574 monthly for its public housing unit.
According to the Authority, it did not evict this family from its three-bedroom unit because its policy does not require it to terminate the tenancy or evict families solely because they are over-income. The Authority believes that allowing over-income families to reside in public housing is beneficial because it shows that participation in the public housing program can help families achieve a more stable life and the average rent paid by over-income families is greater than that paid by other low income families.
Case 2
Housing Authority of the City of Los Angeles, Los Angeles, California – The Authority admitted the family to the program in October 1974, and it had been over-income since at least May 2011. As of June 2014, the five-person household's annual income was $204,784, while the low-income threshold was $70,450. Five members of the household earned income. The member with the highest income earned $132,224. As of June 2014, the family paid a flat rent of $1,091 monthly for its public housing unit. According to the Authority, it did not evict this family from its four-bedroom unit because its policy does not require it to evict over-income families because HUD regulations don't require it.
The Authority claimed that evicting over-income families would work against HUD's efforts to deconcentrate poverty in public housing developments.
Case 3
New Bedford Housing Authority, New Bedford, Massachusetts – The Authority admitted the family to the program in January 2003, and it had been over-income since at least August 2010. As of November 2013, the three-person household's annual income was $212,845, while the low-income threshold was $42,950. The member with the highest income earned $129,789. As of July 2014, the family paid a flat rent of $525 monthly for its public housing unit. According to the Authority, it did not evict this family from its two-bedroom unit because its policy does not require it to evict families solely because they are over-income. HUD regulations require families to be income eligible only at admission to the program.
Case 4
Oxford Housing Authority, Oxford, NE – The Authority admitted the tenant to the program in October 2005, and it had been over-income since at least October 2010. As of April 2014, the single-member household's annual income was $65,007, while the low-income threshold was $33,500. Also, this tenant had total assets valued at nearly $1.6 million, which included stock valued at $623,685, real estate valued at $470,600, a checking account with a balance of $334,637, and an individual retirement account with a balance of $123,445. As of April 2014, the tenant paid a flat rent of $300 monthly for the public housing unit. According to the Authority, it did not evict this tenant from the one-bedroom unit because the tenant was income eligible at admission and has not violated the lease agreement, therefore, the Authority has no reason to evict the tenant or terminate the lease.
The Authority also claimed that it has had difficulty fully leasing units in all of its public housing projects. Leasing a unit to an over-income family is preferable to having a vacant unit in order to keep a project occupied and viable in the community.
Have a tip about this story or another story for Larson? Email or text him at jlarson@click2houston.com or 832-493-3951.