Tuesday, November 23, 2010

New HUD Study: Quality Control for Rental Assistance Subsidies Determinations Final Report for FY 2009.

Extensive report with LOTS of detail is HERE.

Report includes breakout of subsidy errors by program administrator and type of error.  Executive summary [recommended read] says that NET overpayment of rent subsidy would total $173 million extrapolated to all rent assisted households; 19% rate of subsidy overpayment is only marginally higher than 18% rate of subsidy underpayment. (This means that 63% of households received the correct amount of subsidy/paid the correct amount of rent).

Table showing $$ of extrapolated rent subsidy overpayment and underpayment by Administrator is on PDF page 14, Exhibit ES-3 and is also pasted below:
 
Administration Type  Subsidy Overpayments  Subsidy Underpayments  Net Erroneous Payments  Gross ErroneousPayments 
Public Housing  $85,040 $45,227 $39,813 $130,268
PHA-Administered Section 8  $268,791 $171,497 $97,294 $440,288
Total PHA-Administered  $353,832 $216,725 $137,107 $570,556
Owner-Administered  $122,667 $86,788 $35,880 $209,455
Total  $476,499 $303,512 $172,987 $780,011
95% Confidence Interval  ±$113,911  ±$76,928  ±$107,263  ±$162,116 

Perspective:
IF Total Rent subsidy paid was $30 Billion annually, net rent subsidy OVERPAYMENT of $173 million would amount to .6% . (For a certain demographic, that is almost as pure as Ivory soap):


To further keep HUD rent subsidy errors in perspective, visit the government wide Payment Accuracy website HERE for details about payment errors in other programs. 

Originally created and posted on the Oregon Housing Blog.
 

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