[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8489 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8489
To require the Secretary of Housing and Urban Development to conduct an
improper payment assessment for project-based and tenant-based
assistance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 23, 2026
Mr. Meuser introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Secretary of Housing and Urban Development to conduct an
improper payment assessment for project-based and tenant-based
assistance, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``HUD Payment Integrity and
Accountability Act of 2026''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(2) Project-based assistance; tenant-based assistance.--The
terms ``project-based assistance'' and ``tenant-based
assistance'' have the meanings given those terms in section
8(f) of the United States Housing Act of 1937 (42 U.S.C.
1437f(f)).
(3) Public housing agency.--The term ``public housing
agency'' has the meaning given the term in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 3. MANDATORY COMPLIANCE DATE.
(a) In General.--Not later than December 1, 2027, the Secretary
shall include, as part of the agency financial report for fiscal year
2027 required under OMB Circular No. A-36, a compliant improper payment
assessment for project-based assistance and tenant-based assistance.
(b) Detailed Plan and Timeline.--The Secretary shall develop and
execute a detailed plan and timeline for testing and reporting improper
payment estimates in the Office of Public and Indian Housing's Tenant-
Based Rental Assistance program and the Office of Multifamily Housing's
Project-Based Rental Assistance program, in full compliance with
Federal law and applicable guidance issued by the Office of Management
and Budget.
SEC. 4. IDENTIFYING FRAUD IN HOUSING AND RENTAL ASSISTANCE.
(a) Public and Section 8 Housing.--
(1) In general.--Not later than 60 days after making a
determination described in paragraph (2), the Secretary shall
notify the Inspector General of the Department of the
determination.
(2) Determination.--A determination described in this
paragraph is a determination that--
(A) the aggregate amount of housing assistance
payments or grants paid under the United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) for a ZIP Code and
county or county equivalent increased by more than 100
percent in a single year; or
(B) the number of owners, landlords, or public
housing agencies receiving Federal rental assistance or
operating subsidies increased in a ZIP Code and county
or county equivalent by more than 100 percent in a
single year.
(b) Community Development and Disaster Recovery Grants.--
(1) In general.--Not later than 60 days after making a
determination described in paragraph (2), the Secretary shall
notify the Inspector General of the Department of the
determination.
(2) Determination.--A determination described in this
paragraph is a determination that--
(A) the aggregate amount paid under the Community
Development Block Grant program under title I of the
Housing and Community Development Act of 1974 (42
U.S.C. 3601 et seq.) or funds paid under the Community
Development Block Grant program for Disaster Recovery
for a specific project or within a ZIP Code and county
equivalent increased by more than 100 percent in a
single year; or
(B) the number of sub-recipients or contractors
receiving payments under the programs described in
subparagraph (A) in a specific jurisdiction increased
by more than 100 percent in a single year.
(c) Audit by the Inspector General of HUD.--Not later than 2 years
after the date of enactment of this Act, and annually thereafter, the
Inspector General of the Department shall--
(1) identify, based on the results of notifications
received under subsection (a)(1) or (b)(1), any program or
geographic area in which the aggregate amount paid or the
number of participating housing providers increased by not less
than 400 percent during the preceding 5-year period; and
(2) audit any such program, agency, or recipient to ensure
compliance with improper payment testing requirements and to
detect potential fraudulent activity.
SEC. 5. INSPECTOR GENERAL OVERSIGHT.
(a) Pre-Validation.--Not later than 180 days before the deadline
described in section 3(a), the Inspector General of the Department
shall certify whether or not--
(1) the methodology chosen by the Secretary for the
assessment described in that section is statistically sound and
addresses all material findings from financial statement audits
and program audits conducted by the Inspector General related
to improper payment testing, eligibility tier verification, and
validation of payments to property owners; and
(2) the Secretary made a serious effort to conduct a data
draw and receive supporting documents needed to conduct the
assessment described in section 3(a).
(b) Fraud Risk Assessment.--
(1) In general.--The Inspector General of the Department
shall conduct, and submit to the Committee on Banking, Housing,
and Urban Affairs and the Committee on Homeland Security and
Governmental Affairs of the Senate a report on, a separate
fraud risk assessment specifically for the approximately
$50,000,000,000 expended annually for rental assistance,
including tenant-based ad project-based assistance under
section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)), to identify high-risk nodes in the payment
chain.
(2) Data draw and analytics.--In conducting the assessment
under paragraph (1), the Inspector General shall of the
Department shall--
(A) execute a comprehensive data draw from all
relevant departmental and third-party contract
administrator systems to reconcile payments at the
eligibility tier;
(B) identify specific barriers preventing the
Department from reestablishing computer matching
agreements with the ``Do Not Pay'' database of the
Department of the Treasury; and
(C) include in the report an analysis on how system
enhancement funding provided in previous fiscal years
has been utilized to specifically address noncompliance
with subchapter IV of chapter 33 of title 31, United
States Code, and other provisions of law related to
improper payments.
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