MEMPHIS, Tenn. — WREG has new details about people making too much money and living in public housing.
The U. S. Department of Housing and Urban Development is also finally answering questions and possibly making changes related to the problem.
A recent audit revealed taxpayers across the Mid-South are footing the bill for people who can afford to pay their own rent.
It mirrors a 3 On Your Side Investigation that uncovered incomes for families on the Section 8 program way over the $29,000 limit for Shelby County.
In our previous investigation, WREG found families in Public Housing and on Section 8 with high incomes.
Through opens records requests, we obtained incomes by zip codes for area families in both programs.
For example, a family living in the 38107 zip code in Public Housing showed an income of more than $60,000.
We found a South Memphis family making more than $70,000 and still getting a voucher.
3 On Your Side Investigation Finds Section 8 Tenants With High Incomes
It gets worse.
The HUD OIG audit, which focused on public housing, found more than 25,000 families across the country who have incomes over the limit for their area.
The majority of those families had been over the income limit for at least a year.
There were some egregious cases, including a family in New York with an income of roughly $497,000, not including the fact that someone in the house was pulling in rental income close to $800,000.
The OIG report showed 545 over the income families in Tennessee.
The Memphis Housing Authority confirmed with WREG there 79 local families on that list.
This all stems from an old rule that only requires housing authorities to verify incomes when families enter the program.
The bottom line according to the OIG, was that families cheating the system suck up spots for people on waiting lists.
HUD told WREG via email, it’s “taking additional steps to encourage housing authorities to establish policies that will reduce the number of over income families in public housing” and looking at a flat rent policy.
MHA Executive Director Robert Lipscomb says they’re still waiting on more directives and a clear policy from HUD.
However, he says the answer isn’t as simple as kicking people out of the program.
“The families on this list are still vulnerable to the job market and other challenges and any loss of income will be devastating to their families and therefore susceptible to loss of housing,” Lipscomb said. “With the shortfall in affordable housing, they would be concerned regarding access to affordable housing with any loss of income. ”
Memphis Public Housing Income By Zip Code
Section 8 Demographics by Zip Code
Why aren’t families kicked out?
While income limits only apply when tenants enter housing, both Section 8 and Public Housing tenants must re-certify each year.
During the re-certification process, the housing authority does verify incomes changes.
However, some income doesn’t count against families.
For example, things like the cost of child care and wage garnishments reduce a family’s income (as calculated by HUD).
If and when a family on Section 8 is truly over the limit and the housing authority hasn’t paid its portion for a total a six months, the family is removed from the program.
WREG discovered previously, this rarely happens.
The rules were essentially put in place to encourage families to work, and slowly increase the rent responsibility.
As far as public housing, HUD policy actually prevents housing authorities from kicking families out just because they make more money.
MHA sent WREG this information about that very issue back in April:
“A PHA may not evict or terminate the tenancy of a family solely because the family is over the income limit for public housing. The family can be placed in the income disallowance program and continue to maintain their status under the program.”
