[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99,111],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6084349,"mediaKeyId","2916634-7660a65cab49197db7c8a8d78205fa7d","parentId",2916634,"title","HUD OIG flags CDBG-DR match tracking as a fraud risk; audit report due soon, acting IG says","audioSeconds",308,"startMs",5027000,"endMs",5335000,"viewUrl","/Search/View?dp=1&key=2916634-7660a65cab49197db7c8a8d78205fa7d&start=5027&end=5335","thumbnailUrl","https://assets.pipeline.soar.com/2916634-7660a65cab49197db7c8a8d78205fa7d/thumbnail_5027000.jpg","articleUrl","/articles/6084349/HUD-OIG-flags-CDBG-DR-match-tracking-as-a-fraud-risk-audit-report-due-soon-acting-IG-says","mediaUrl","https://secure.pipeline.soar.com/6084349-c0a61774f4069693f748a4af583800f6/orig.mp4?Expires=1773598498&Signature=Rk~NFR78h4KoSxiu4uIcoNd8V0~toytuNL1OPSPh2rpH0ymxqMMP7WP2H0gdWf4qYjX263CY-Drg-Cg4k9qFXPHCtZNjfyxlG0xI2Uw-H8mTC-Ov0XoCPdn9lfVoRbD-J-hSs5d9qA4H16gbZUyrGjVgVt~h7TMP-JAXxiIGNdkBkNs7MDcOP5S8prHAHXNrdb8pXwiroUqRmqjUG5ATR-h6frDCuyHhZv9FsBSrJgKDTXAT1FvHsoRVhrr28u2XI01wBhRJwIBaB~MJuK-yDPiD7326xPav5AKzpx8jXYIJzWCY97sZJmhFdRHtvbhP3nIjZBzitDKeDxT75MqxbA__&Key-Pair-Id=KUT5TJCACFTXG","author","U.S. House Committee on Financial Services","date","2025-04-08T00:00:00Z","article","Acting Inspector General Steven M. Begg told members that an OIG audit of Community Development Block Grant Disaster Recovery (CDBG-DR) grantees found that grantees are not consistently tracking or reporting the use of match funds, which can result in HUD funding exceeding authorized match caps.

Begg said grantees had budgeted more than \"$94,000,000\" and had spent nearly \"$356,000,000\" on completed and underway match activities in the cases the OIG reviewed. He said the match flexibility in some cases allowed grantees to treat funding sources inconsistently and HUD systems do not require grantees to report how they used match funds. The OIG issued an interim report to flag the issue and is preparing a final audit report expected \"in the coming months.\" Begg said the OIG considers amounts spent above the match cap to be technically improper payments.

Why it matters: CDBG-DR awards are large and growing with frequent disaster activity; lack of tracking for match funds can create duplication of federal funding and increase fraud and improper-payment risk. Begg told the committee that HUD has a fraud-risk specialist in its community planning and development office but that HUD had not yet assessed fraud risks specifically for the DR program.

Ending: Begg said the OIG will issue the audit report soon, has already issued an interim report to HUD to prompt corrective action, and recommended HUD require grantees to track and report match use consistently and to assess fraud risks for the program.","mediaType","Video","parentTitle","Decades of Dysfunction: Restoring Accountability at HUD (EventID=118102)","oneSentenceSummary","The HUD Office of Inspector General told lawmakers it has audited CDBG-DR grantees and found that match funds were not consistently tracked, which can result in HUD funding being used above authorized match caps; a final audit report is expected in the coming months.","taxTitle","Financial Services: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal","taxId",1981,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6084353,"Lawmakers press HUD OIG on recurring mismanagement at local housing authorities including NYCHA, Milwaukee and Little Rock",271,6636000,6365000,"/Search/View?dp=1&key=2916634-7660a65cab49197db7c8a8d78205fa7d&start=6636&end=6365","https://assets.pipeline.soar.com/2916634-7660a65cab49197db7c8a8d78205fa7d/thumbnail_6636000.jpg","/articles/6084353/Lawmakers-press-HUD-OIG-on-recurring-mismanagement-at-local-housing-authorities-including-NYCHA-Milwaukee-and-Little-Rock","https://secure.pipeline.soar.com/6084353-9363f07ae062b9ee57254e9e32a748f1/orig.mp4?Expires=1773598498&Signature=UMivsX-vY7nnB7AlrDRWLjLsaLs7QPZ-q~w2ZBuMU9Ac~to6P1Mm-7ayo~3VHaXyYamU4KyJlMXPnKgRfGNn6RqTkscZjTXQjT9HayhQdGYOsG9~fSkaLQNSCxwJF-4Jpbzh5XlZ35vL--1O24hGWwQ77ivXhkgR8raWDqdPeAAI9picS6pFmV0u6-9iHjeWrcEI3HzlJNM6Kk5zvdBM1emIb6uXDLdDqGLH6TFF7hkMC0b7gZMYp9z0H7Z9Rl64FOW~78vECcemFDoK0EENVvLfB9zd-2XBfYYnbXhCHhSQmge3gQHIh~ouDYA-38nMmn0daKhVUCzdW8Bd4EXzyg__&Key-Pair-Id=KUT5TJCACFTXG","Members of the House Financial Services subcommittee used examples from New York City, Milwaukee and Little Rock to illustrate what they described as widespread failures of local public housing authorities and the challenges HUD faces in supervising them.

Citing recent events, members noted that New York City Housing Authority prosecutions last year led to 70 bribery charges in one day. Representative Garbarino recounted OIG findings that NYCHA did not assess fraud risks across its organization and lacked a structured, proactive fraud-risk program. Begg said NYCHA is \"sophisticated\" and ahead of many housing authorities on anti-fraud activities but still lacks a coordinated, proactive, organization-wide program.

Representatives from Arkansas and Wisconsin described long-running maintenance failures, unauthorized transfers of funds, and alleged diversion of rental assistance dollars. Chairman Hill highlighted problems in his hometown Little Rock, including unsafe conditions at a complex, unauthorized transfers, deceased citizens receiving vouchers, and over $700,000 in unaccounted CARES Act funds. Representative Style said Milwaukee faced about $2,800,000 in rental-assistance funds spent on payroll and administrative expenses rather than tenant assistance.

Begg told lawmakers that HUD’s ability to oversee troubled housing authorities is limited by staffing capacity and by data and system limitations that rely on self-certification from housing authorities. He said HUD should engage with housing authorities before they become troubled and that real-time, better-structured data would allow HUD staff to identify and assist struggling authorities earlier. Begg recommended that HUD assess fraud risks differently by size and complexity — for example, high-volume micro-purchases in a large authority like NYCHA pose different risks than a small authority lacking segregation of duties.

Why it matters: Public housing authorities administer billions in federal funding. Members argued that delayed intervention or weak oversight allows fraud and poor maintenance to persist and increases costs for tenants and federal programs.

Ending: Begg said the OIG investigates and prosecutes criminal wrongdoing and can seek administrative remedies such as debarment, restitution, and corrective action orders, but emphasized the need for preventive systems, better data and federal support to strengthen local oversight.","Lawmakers highlighted recent bribery prosecutions at NYCHA and alleged misuse of rental-assistance funds in Milwaukee and Little Rock, and asked HUD’s acting inspector general how the department can better supervise troubled housing authorities.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6084363,"Members press HUD acting IG on DOGE access to HUD systems and data-security safeguards",130,3374000,3504000,"/Search/View?dp=1&key=2916634-7660a65cab49197db7c8a8d78205fa7d&start=3374&end=3504","https://assets.pipeline.soar.com/2916634-7660a65cab49197db7c8a8d78205fa7d/thumbnail_3374000.jpg","/articles/6084363/Members-press-HUD-acting-IG-on-DOGE-access-to-HUD-systems-and-data-security-safeguards","https://secure.pipeline.soar.com/6084363-d9992c3dc37545a228fb44b0eed463f2/orig.mp4?Expires=1773598498&Signature=SChn5oVu1xiZn2tFiKv5NI3YtFJcPBVSGuN3Mp89~lhqjxvzpgA-tUV1garL1oDxg6PTHcEP-osbe542x4-0Kovvry-jxfoLTk9yXwlzJ9EEUgdfHM4JZGd3QY7eNvT9V~hGHR-QDM4JJpkY5FLp5Gt8nqEkn1K~Rk4MI9mQsSdEURuizzfsiD8T5NH-j1aBnSqO5ke3FUUcbRn5iU~5GZFEvWbNXNm3IjsJG0YC5e0KFS-ohK8Th1KIPZH6kFQZ4o8Bzk3Ra-j2AbgGSHWBzBBbgHVUDrixApuzre87DQ3z~Acy91B~dgX6ljP74Byq5BtOzSxge4me3l4ynWJHcA__&Key-Pair-Id=KUT5TJCACFTXG","Republican and Democratic members of the House Financial Services Subcommittee questioned Acting HUD Inspector General Steven M. Begg about a departmental \"DOGE\" team that, witnesses and members said, has been assigned to HUD and has \"gained access\" to HUD systems and enforcement records.

Multiple members raised concerns that the DOGE team, identified in questioning as a temporary entity associated with Elon Musk, had access to HUD enforcement databases that contain personally identifiable information, including Social Security numbers, medical details and addresses of survivors of domestic violence. Begg said that such data are protected under the Privacy Act and that HUD has an information security program overseen by the chief information officer; his office conducts annual reviews of that program. \"That's the primary, legal control in place,\" Begg said of the Privacy Act.

Members pressed Begg about how DOGE staff obtained system access and who authorized it. Begg said he did not know the specific authorizations or dates and that access would require authorizations from HUD system owners and would likely be granted through normal assignment of personnel as HUD employees. He said OIG \"has not reviewed\" which authorizations each DOGE staffer has been granted and had not examined whether the grants of authority adhered to federal law.

Why it matters: Several members told the committee that they were alarmed by the possibility that a private-team and an unelected, unvetted temporary employee could exercise wide operational authority over HUD functions and data. Rep. Green argued that \"temporary employee\" Doge leadership should testify before the committee; Rep. Waters, Rep. Williams and others emphasized the need for oversight and urged the department to explain access and authority.

Begg said the OIG is \"monitoring the situation\" and is tracking litigation that relates to the DOGE team's actions. He said his office is communicating with HUD leadership \"regularly and consistently\" about planned reductions in departmental capacity and access issues and that it will monitor any impacts to program administration.

Ending: Begg told members the OIG will continue to monitor the litigation and the department’s administration of access controls and will report concerns to HUD leadership; he encouraged the committee to coordinate oversight questions with HUD and the department's CIO.","Members asked how a team referred to as \"DOGE\" gained access to HUD systems and who authorized that access; Acting Inspector General Steven M. Begg said he did not know the specific authorizations and pointed to the Privacy Act and HUD information-security controls.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6084367,"Acting HUD Inspector General urges IT modernization to identify improper payments, prevent fraud",207,2793000,3000000,"/Search/View?dp=1&key=2916634-7660a65cab49197db7c8a8d78205fa7d&start=2793&end=3000","https://assets.pipeline.soar.com/2916634-7660a65cab49197db7c8a8d78205fa7d/thumbnail_2793000.jpg","/articles/6084367/Acting-HUD-Inspector-General-urges-IT-modernization-to-identify-improper-payments-prevent-fraud","https://secure.pipeline.soar.com/6084367-897210eebc88e27f111fce20352288fd/orig.mp4?Expires=1773598498&Signature=IBteRkOZsfum1OiqE17iHgdbCWf-bnE785xy45aAyJVsRn37NTyU2Y-HPADv7sbO3KKAKi1fSyB-6LAFcA3m99~9DJMtqUtUW8GvyGYXzLgdfCBItOAZLdnN-VgKLIek1nJdA3p4QChbsmOng3b892fLT8FcvX6104IP4QAEsGYbcPAB0nqvnhKLJVwz9Kz62-gAFtJm1EVewOJ0pkp6SZYS1f3ReKwUj2ckRVcjRw18OMWqTtHZAPwZ8umWae09JxlE2Ra7-T06pdfBBcWCO1Q5DzWqVedP7NTDpoWeE5UkSJwvttmTkQbHApadMqhVjF2XmaYwoTi5bjmQGC4-JQ__&Key-Pair-Id=KUT5TJCACFTXG","Acting Inspector General Steven M. Begg told the House Financial Services Subcommittee on Oversight and Investigations on the panel’s hearing \"Decades of Distortion: Restoring Accountability at HUD\" that the Department of Housing and Urban Development cannot reliably estimate improper payments in its largest rental-assistance programs because its payment data are not captured in current systems.

Begg said HUD’s inability to produce reliable improper-payment estimates has persisted for eight consecutive years and affects programs that represented \"approximately $50,000,000,000 in 2024,\" roughly two-thirds of HUD’s annual expenditures. \"Because it cannot estimate and identify improper payments in these programs, HUD cannot develop specific action plans to reduce them,\" Begg told the subcommittee.

Why it matters: Without program-level payment data, Begg said HUD cannot design targeted remedies to recover or prevent billions of dollars in improper payments. He said modernized IT systems would let HUD monitor grantees, detect duplication of benefits in disaster recovery programs, and link payment data with other federal data sources such as Treasury’s Do Not Pay portal.

Begg described HUD’s portfolio as \"massive,\" encompassing grant programs and mortgage insurance that require \"a highly skilled workforce, efficient processes, and up to date technology.\" He testified that many HUD systems were built decades ago, lack the data fields needed for oversight and leave much monitoring to manual processes that are inefficient and hard for HUD staff to use.

On next steps, Begg recommended that HUD: assess fraud risks for each program; require program participants to establish fraud-prevention plans; improve data sharing with other federal systems; and make IT modernization a priority so improper payments can be identified and prevented rather than chased after the fact. He also told the committee the OIG stands ready to assist in those efforts.

Begg cited prior OIG and Government Accountability Office work that found data limitations and confusing reporting impede HUD staff’s ability to monitor grant execution and program performance. He also told the committee that HUD needs payment-level data at the local level to test for improper payments and to better target fraud schemes.

The hearing included questions from subcommittee members about past large fraud prosecutions — including New York City Housing Authority cases — and whether technology alone could prevent those crimes. Begg said technology would not eliminate every scheme but could \"go a long way in detecting and giving a chance to prevent\" fraud.

Ending: Begg closed by urging the committee to support statutory and administrative steps that would allow HUD to collect and use payment and subrecipient data more effectively. He said the OIG will continue to press HUD leadership on capacity and data improvements as the committee considers legislative and oversight options.","Acting HUD Inspector General Steven M. Begg told the House Financial Services subcommittee that outdated information systems prevent the department from estimating improper payments in major rental-assistance programs and hamper fraud prevention, and urged program-level fraud-risk assessments and stronger data sharing.",{"_33":112,"_35":36,"_37":38,"_39":113,"_41":114,"_43":115,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6084358,"Members alarmed after HUD notice terminated 78 fair-housing grants; acting IG says cancellations under litigation",54,4291000,4345000,"/Search/View?dp=1&key=2916634-7660a65cab49197db7c8a8d78205fa7d&start=4291&end=4345","https://assets.pipeline.soar.com/2916634-7660a65cab49197db7c8a8d78205fa7d/thumbnail_4291000.jpg","/articles/6084358/Members-alarmed-after-HUD-notice-terminated-78-fair-housing-grants-acting-IG-says-cancellations-under-litigation","https://secure.pipeline.soar.com/6084358-b9f3bb680025a539f19302df3d3b9f66/orig.mp4?Expires=1773598498&Signature=a-K0tPGXbuWVh-KQygmmEjoub5L8W0T8f9tOhOwtUaPPgR0fyzgQkJoQjCv-~ihMjkpSYBbx2U4FPrFzbsAXuQKQMwWkxIQm5NojbuVniS-UIQEXU4Our1V25wxP~4Cdwb5X8k6FlPQzfzBGNHgHybYfi3ZwNYfAmkiNAEpoKnKImiWMxuEo1htT0YgnqXi5l8kwruC9QZppAWkjUtwMCknMHGZOe-ROnRDI2XNypfoQEaSSKM1x8VfmOSv19jZF08oFOoqkevWQDun46oAg~YdNpBelAiBhfKojStlMqnELopDAbobGl6oRsXDx2MlkySP02xWAUVBh5TK8nWrWYg__&Key-Pair-Id=KUT5TJCACFTXG","Multiple members of the House Financial Services subcommittee raised alarm after testimony that HUD sent notices on Feb. 27, 2025 terminating 78 contracts under the Fair Housing Initiatives Program and that the Office of Fair Housing and Equal Opportunity (FHEO) faces proposed staffing cuts.

Rep. Maxine Waters, the ranking member of the full committee, said the terminations \"severely impacted communities in their long time work to enforce the Fair Housing Act,\" listing groups the grants helped, including seniors, veterans, survivors of domestic violence, families with children, and underserved rural communities. Waters said Democratic members had sent letters and requested briefings from HUD Secretary Scott Turner and had received no response.

Acting Inspector General Begg told the committee the cancellations \"are currently, subject of litigation\" and the OIG is monitoring the litigation and its effect on fair-housing enforcement. Begg said the OIG is \"communicating with HUD leadership about the status of the planned reductions and voicing our, advocating for those decisions to be carefully considered.\" He added that the OIG’s reviews of HUD capacity are ongoing.

Several members said they were concerned about proposed staffing reductions in FHEO — testimony cited a possible 77% cut to that office — and asked how HUD would meet statutory enforcement responsibilities if personnel levels fall sharply. Begg said the OIG had not been presented a plan and that a significant cut to enforcement staff would increase capacity strain. \"What we would want to see in a plan is how HUD plans to account for that reduced staff,\" he said.

Why it matters: Participants said the terminated grants and staffing reductions could weaken enforcement of the Fair Housing Act and reduce access to investigations and remedies for people alleging housing discrimination.

Ending: Begg told lawmakers the OIG has not launched an investigation into the mass firings and that it will continue to monitor HUD decisions, litigation and any impacts on program capacity. Members asked for written follow-up and for HUD leadership to explain contract cancellations and staffing plans to the committee.","Members told the committee that HUD terminated 78 Fair Housing Initiative Program grants and are planning cuts to the Office of Fair Housing and Equal Opportunity. Acting Inspector General Steven M. Begg said the cancellations are tied to litigation and his office is monitoring the situation and its impact on capacity.","actionData","errors"]

Article not found

HUD OIG flags CDBG-DR match tracking as a fraud risk; audit report due soon, acting IG says

Lawmakers press HUD OIG on recurring mismanagement at local housing authorities including NYCHA, Milwaukee and Little Rock

Members press HUD acting IG on DOGE access to HUD systems and data-security safeguards

Acting HUD Inspector General urges IT modernization to identify improper payments, prevent fraud

Members alarmed after HUD notice terminated 78 fair-housing grants; acting IG says cancellations under litigation