Owners of Cooperative Housing Properties Generally Charged More for Their Section 8 Units Than for Their Non-Section 8 Units

Date Issued: 
Monday, June 12, 2017
Publication/Report Type: 
Audit Reports
Report Number: 
Program Area(s): 
Multifamily Housing
District of Columbia

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Office of Multifamily Housing Programs due to a previous audit of a cooperative housing property, which charged more for its Section 8 units than for its non-Section 8 units.  Our objective was to determine whether owners of cooperative housing properties charged more for their Section 8 units than for their non-Section 8 units.

We found that Owners of cooperative housing properties generally charged more for their Section 8 units than for their non-Section 8 units.  As a result, in 2016, 25 properties received a taxpayer-funded windfall of more than $3.1 million for their unsubsidized members.

We recommend that the Deputy Assistant Secretary for Multifamily Housing create and implement policies and procedures or change program regulations to prevent multifamily housing properties from charging more for Section 8 units than for comparable non-Section 8 units.

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