HUD Subsidized 10,119 Units for Tenants Who Were Undercharged Flat Rents

HUD’s Office of Inspector General (OIG) audited public housing agency compliance with HUD’s flat-rent requirements. HUD requires that public housing authorities (PHAs) offer families the choice of paying income-based rent (generally up to 30 percent of adjusted income) or a flat-rate rent, which is based on the market rent charged for comparable units in the private unassisted rental market. Flat-rate rents won’t be affected by increases in income from employment or disability benefits, but may be higher than income-based rent.