10.2: Subsidies
Reduce overpaid rent subsidies Other Information:
HUD will ensure fairness to all rent-subsidized households by reducing more than $1 billion in overpaid rent subsidy annually.
Regulatory changes and new administrative controls will correct long-standing problems, including errors in calculating rents
and inaccurate reporting of income. Based on computer matching with 1998 federal income tax data, HUD estimates that tenants
who under-reported their income received $617 million in unwarranted rent subsidies. In addition, over 60 percent of subsidized
rent calculations contain some type of error. The Expected Results — Working with its stakeholders, HUD will reduce the high
incidence of tenants’ under-reporting of income through a combination of expert systems, simplification where necessary, and
accountability. By 2005, HUD will cut the processing error rate by at least half, from 60 percent to 30 percent. As a result
of this and better income verification, the overpayment of rent subsidies will be cut by at least half.
Indicator(s):
|
