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Home > Affordable Housing, Analysis and Commentary, Announcements, Legal, Manufactured Housing Industry, News, News Item, Trends > HUD Office of Inspector General Breaks Up Section 8 Scam

HUD Office of Inspector General Breaks Up Section 8 Scam

April 8th, 2019



The media release from HUD reported below is one of dozens of such incidents that are discovered every year, year after year.




Manufactured home community owner Marge Clark recently told MHProNews that in her view, perhaps the largest competitor to affordable manufactured homes is arguably subsidized housing.


Subsidized Housing vs Manufactured Homes, Community Owner Marge Clark Sounds Off


Actively retired Rev. Donald Tye, Jr. told MHProNews that he believes that however well intentioned it may be, numerous social ills result from “warehousing people like cattle.”



Tye explained that public housing – an entitlement – often yields addiction. Ownership vs. renting or living in “projects” leads to integrity, a view he likens to those of Dr. Martin Luther King, Jr.


So while HUD has their reason for reporting this incident, manufactured home professionals could look at this same story through a different lens.  After years of abuse under administrations that are both Democratic or Republican, is there any reason yet to believe that such abuses won’t continue?

Has federal involvement in housing helped or harmed the communities and individuals they are supposed to represent?  That’s not to say that they can’t be better run, and of course the effort can and should be made.  But with decades of track record, a fresh look at this pattern is long overdue.  More on that point after HUD’s release, which follows.






            WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced that a Cook County, Illinois couple committed fraud by accepting housing assistance they were not qualified to receive in order to rent a property they jointly owned.


According to HUD’s complaint, Korey Sloan and Christie Caldwell are married and own a single-family property in Matteson, Illinois.  In 2006, Caldwell and the couple’s four children sought rental assistance from the Housing Authority of Cook County (HACC) to lease the home from Sloan, who posed as an unrelated landlord.


In her initial application for rental assistance, and in subsequent tenant recertifications, Caldwell denied any relationship with Sloan and any ownership interest in the property while the family continued to reside in the home.  As a result, Sloan and Caldwell fraudulently obtained rent subsidies they were not qualified to receive for more than seven years.


Following its investigation, HUD’s Office of Inspector General referred the matter to the Illinois Attorney General’s Office for criminal prosecution and to HUD for an action under the Program Fraud Civil Remedies Act (PFCRA).  An Administrative Law Judge for the Department ruled that, by failing to respond to the complaint, the couple admitted to defrauding the Housing Choice Voucher Program and is therefore liable for penalties totaling $25,830.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.


During the Obama Administration, our sister site made the following policy proposal.  ICYMI, see that still relevant report, linked via the text-image box below.


Reinventing HUD’s role in Quality Affordable Housing, Reducing Poverty and Dependency


HUD is not alone for waste, fraud, and abuse.  It happens locally, at the state and more broadly at the federal level.  Recall this factoid.



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