Texas Gov Abbott offers to help identify fraud in federally subsidized housing programs

Texas Gov. Greg Abbott on Monday offered the Trump administration assistance with identifying fraud in taxpayer-funded federal housing programs. It’s the second initiative he’s taken in a week to expand investigative efforts to identify any fraud being committed in taxpayer-funded programs.

Last Monday, Abbott directed two state agencies to investigate the potential misuse of taxpayer money in one program, Texas’ Child Care Services Program (CCSP). He did so after billions of dollars worth of welfare fraud was committed against 14 Minnesota Medicaid-funded welfare programs, The Center Square reported.

So far, at least 98 people have been charged as of last month for their alleged role in a fraud scheme targeting 14 high-risk Medicaid-funded services through Minnesota Department of Human Services programs. Sixty have already been found guilty, with some pleading guilty last month, The Center Square reported. The charges stem from a multi-year investigation.

While several state-administered welfare programs in Texas do accept Medicaid funding, Texas does not have Medicaid-funded housing programs as Minnesota does, which are the target of fraud investigations.

On Monday, Abbott volunteered the Texas Department of Housing and Community Affairs (TDHCA) to participate in a U.S. Housing and Urban Affairs (HUD) pilot program launched by Secretary Scott Turner to identify and eliminate fraud. Turner’s administration has already identified more than $5 billion in rental assistance payments that were potentially made in error, or fraudulently, to rental programs nationwide, including payments to deceased individuals.

“We will gladly work with you to develop and implement fraud prevention measures that ensure federal taxpayer funds, like those in the rental assistance programs, are not taken advantage of by bad actors,” Abbott wrote Turner. Abbott previously worked with Turner when he served in the Texas House representing a north Texas district.

“TDHCA has robust policies to address waste, fraud, and abuse, including internal training for TDHCA staff on identifying potential cases of fraud and alerting fellow Texans to scams,” Abbott said in a statement. TDHCA uses a HUD Enterprise Income Verification System to crosscheck information to ensure the program’s enrollees’ information is current and updated.

The TDHCA’s process “has prevented any improper payments to deceased individuals for Housing Choice Voucher Section 8 Housing assistance,” Abbott said. TDHCA also has a Chief of Fraud Prevention and Investigation employee who review all programs to identify fraud, waste and abuse, he said.

Roughly 150,000 Texas households receive some form of rental assistance; many low-income individuals participate in HUD’s “Moving to Work” demonstration program, according to the National Association of Housing and Redevelopment Officials.

“Improper payments and fraud in these programs not only undermine confidence in government but also the goal of making housing more affordable,” Abbott said. “Every time a fraudulent or improper payment is made, Americans eligible for these programs miss out on assistance and the American Taxpayer is cheated.”

Abbott said the TDHCA “is well-positioned to work with HUD in identifying ways to better steward these programs” and that their combined efforts would help “Make Housing Affordable Again.”