What is Fraud

Fraud involves false statements, omissions or actions made with the intent to deceive or mislead, resulting in the misuse of funds or the violation or circumvention of HCV Program rules. Fraud may be committed by a Property Owner/Manager, Applicant, Voucher Holder, Participant, or HACB employee.

Examples of fraud committed by a Property Owner might include:

• Offering bribes to HACB
• Accepting Housing Assistance Payments (HAPs) for properties that he or she does not own or represent as the legal agent
• Accepting HAPs for vacant apartments/homes
• Requesting rent payments from tenants in excess of the amount stated in the lease
• Renting to relatives without prior approval from HACB

Examples of fraud committed by an Applicant, Voucher Holder or Participant might include:

• Not reporting income or total amount of income
• Subletting the subsidized apartment/home
• Having unauthorized persons living in the apartment/home
• Using a voucher from HACB while receiving rental assistance from another agency

Examples of fraud committed by a HACB employee might include:

• Omitting known income from a re-examination in order to provide a lower rent to a friend, relative or other individual participating in the HCV Program
• Turning in a completed inspection report without having actually inspected the apartment/home
• Receiving money from an Owner, Applicant, Voucher Holder or Participant for processing any task related to the HCV Program

Violent Crime is Not Considered Fraud

HACB does not consider violent criminal activity or drug trafficking to be fraud. The activity should be reported to the police, the Owner and HACB as it constitutes a violation of the Family Obligations.

Penalties for Property Owners/Managers who commit fraud include:

• Termination of HAP Contract
• Recapture of HAPs
• Prosecution under federal statutes
• Debarment from participating in the HCV Program

Penalties for Applicants, Voucher Holders or Participants who commit fraud include:

• Termination from the HCV Program
• Recapture of housing subsidy payments
• Criminal prosecution
• Debarment from participating in the HCV Program

Penalties for HACB employees who commit fraud include:

• Probation
• Leave without pay
• Termination of employment
• Prosecution under federal statutes

We encourage and appreciate your support in this matter. As taxpayers, we all have a stake in ensuring that federal housing assistance funds are distributed properly.