October 28,2010

Grassley Presses the Administration to Fix Lax Oversight of Tax Dollars for Housing

WASHINGTON – Sen. Chuck Grassley of Iowa is pressing the federal government to fix its lax oversight over the billions of taxpayer dollars given to public housing agencies.  Grassley’s review and media reports have exposed millions of dollars being paid to local agencies that the Department of Housing and Urban Development (HUD) has classified as “high risk,” salaries for some housing agency directors that exceed the governor’s salary in their state, and sexual predators residing in public housing.

“This tax money is supposed to provide housing that’s safe, decent and sanitary,” Grassley said.  “So far, the federal government has failed to protect its tenants and the American taxpayer.  The Department of Housing and Urban Development appears to have lost sight of its mission and ultimately the tenants and the communities suffer the consequences.  It’s an understatement that too many public housing authorities operate poorly.  It’s up to the Administration to require improvements and hold the authorities accountable to taxpayers and residents.”

Over the past year, Grassley has conducted oversight of federal stimulus spending, including that given to public housing authorities.  HUD has received approximately $14 billion in total stimulus funding, including approximately $4 billion to the public housing authorities.  HUD has obligated more than $94 million in stimulus funding to housing authorities that HUD classified as “high risk.”  

This week, Grassley wrote to HUD, expressing concern about high salaries and allowances being paid to some executive directors of public housing authorities and sexual predators residing in public housing.