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The Office of Inspector General (OIG) has published its annual report outlining the most significant management and performance challenges facing the U.S. Department of Housing and Urban Development (HUD) as it enters Fiscal Year 2026. These challenges were identified through OIG’s oversight work and an assessment of anticipated changes to HUD’s programs and operations. The report is required by statute to be included in HUD’s Agency Financial Report.

Challenges Identified:

  • Improving Business Operations: Modernizing IT Systems and Streamlining Procurement
  • Protecting Taxpayer Funds from Fraud, Waste, and Abuse
  • Modernizing the Management of Grant Funds
  • Ensuring the Availability of Affordable and Quality Housing

While these challenges are longstanding, HUD has made progress in addressing some areas and continues to develop strategies for those that remain. The report aims to support HUD in improving program effectiveness, strengthening operations, and meeting its mission to provide affordable, quality housing.

OIG looks forward to collaborating with HUD in the coming year to address these critical issues.