Three Cheers for the Department of Housing and Urban Mis-Development

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HUD loves moochers and encourages fraud. Isn’t Big Government great?

In New York City, there are more than 10,000 families living in taxpayer-subsidized housing who are over income, many are way over income. This is while more than 300,000 families sit on a waiting list. Throughout the country, there are 25,000. To make matters worse, HUD encourages it!

The Chicago Tribune reported that one family in public housing makes $498,000 per year.

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. This family raked in $790,500 in rental income on its real estate holdings in recent years.

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 New York City, more than 10,000 are over income and many are way over income. This is while more than 300,000 poor wait for public housing.

We know this thanks to an Inspector General’s (IG) report which calls it an “egregious” abuse of the system.

HUD claims the IG is exaggerating the problem since it represents only 2.6 percent of the total but the reason the IG says that’s not true is because HUD hasn’t done a thing about it. It will cost taxpayers more than $104 million in the next year, according to the IG.

The IG said it is serious because HUD has absolutely no procedure to require over income tenants to leave and, in fact, it encourages them to stay.

One has to wonder if some of these over income people don’t have connections.

HUD sets the low-income limits at 80 percent and very low-income limits at 50 percent of the median income for the local area. The agency sets “fair market rents” every year based on incomes, housing demand and supply. In Los Angeles, for example, the threshold was $70,450 for a family of five. In Oxford, Neb., it was $33,500 for an individual.

The 15 authorities the HUD investigators looked at told them they had no plans to evict these families, because if they did, poverty would continue to be concentrated in government-subsidized housing. The goal, they said, was to create diverse, mixed-income communities and allow tenants who are making good money to serve as role models for others.

HUD simply refuses to evict them saying the tenants might not be able to afford new apartments and could lose their jobs.

The Inspectors seemed to fall for that line and suggested they apply limits.

It’s hard to understand why these rich people don’t have their rents raised.

Hello? HUD? This is fraud! It’s also taxation without representation and it’s tyranny.

What kind of person earns half-million dollars a year and lives off the American public while there are poor people in need of housing? The words “sleazy leeches” comes to mind.

 

Source: Chicago Tribune

 

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