The Affordable Housing Scam

The federal government has several programs aimed at making affordable housing available to low-income families, and people have found numerous ways to scam those programs.

Click image to download a five-page PDF of this policy brief.

  • Local politicians may steer federal housing funds to developers who made large campaign contributions to those politicians.
  • Contractors build low-income housing and then bill the federal government for inflated or unrelated costs;
  • Staff at local housing agencies can accept bribes to bump people to the top of waiting lists to move into low-income housing;
  • People can move into low-income housing when their incomes are low (such as right after they graduated from college) and then stay in the housing after their incomes rise to well above the average.

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