The Department of Housing and Urban Development has declared victory in a battle it is waging with the Justice Department against waste, fraud, and abuse in federal housing programs.
A HUD report released last week on the department's "Get Tough Initiative" details achievements of the partnership that HUD Secretary Andrew Cuomo and Attorney General Janet Reno launched last March to act against landlords accused of bilking federal housing programs.
At a press conference to release the report, Cuomo said the number of landlords barred from doing business with the federal government has quadrupled, from 30 in 1996 to 122 in 1997. As a result, about $25 million was recovered last year, up from $18 million in 1996.
"Our message today is simple: We have kept our promise by backing up our words with action," Cuomo said. "We have saved American taxpayers millions of dollars, and we are continuing to carry out our zero-tolerance policy against landlords who try to rip off Uncle Sam."
Reno said there is a strong law-enforcement motivation to strengthen landlord enforcement efforts. "Broken windows and graffiti-stained walls are a welcome mat for criminals," she said. "By cracking down on landlords who pocket federal funds intended for repairs, we can save taxpayer dollars and also help cut crime in the process."
Cuomo acknowledged that most landlords of HUD-assisted housing are responsible and law-abiding, but added, "our job is to identify and stop the minority who are abusing our programs."
The report also touted HUD progress in other areas in 1997, including:
- Ending a reverse mortgage scam that swindled senior citizens around the country out of thousands of dollars.
- Protecting homeowners from contractors who overcharge for shoddy home repairs.
- Preventing homebuyers from being overcharged by mortgage bankers.
- Notifying consumers of millions of dollars in uncollected refund payments on mortgages insured by the Federal Housing Administration.
- Cracking down on housing discrimination. HUD has requested a 73 percent budget increase in fiscal 1999 for anti-discrimination programs.
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