HUD Investigates CO Housing Agencies After Dead Tenants, Ineligible Recipients Found on Rolls

The Department of Housing and Urban Development is investigating Colorado housing providers after an internal audit found that federal housing assistance was paid to hundreds of ineligible recipients, including 221 people who were already deceased.

According to information obtained by The New York Post, HUD is probing whether Colorado housing agencies helped nearly 3,000 individuals improperly receive taxpayer-funded housing assistance.

The investigation follows an audit that found benefits were granted to 221 dead individuals and another 87 people who did not meet eligibility requirements.

“The Department of Housing and Urban Development (HUD) is investigating whether Colorado providers helped nearly 3,000 people swindle taxpayer money from Uncle Sam…”https://t.co/NsoJSHTwaM

— Mike.Rlog (@MikeRlog) December 18, 2025

HUD officials also determined that 2,519 additional beneficiaries will need to undergo further verification to confirm their eligibility.

“From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action,” a HUD spokesperson told the Post.

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The apparent misuse of federal housing funds occurred across most of Colorado’s 59 public housing agencies, according to a source familiar with the findings.

The issue was described as particularly significant within the Denver Housing Authority, which oversees a large share of housing assistance in the state.

HUD officials are preparing to require public housing agencies to conduct additional verification of all beneficiaries. Agencies will be directed to remove deceased tenants and individuals found to be ineligible from their housing rolls.

In addition, housing providers will be required to reimburse federal funds that were paid out improperly. Agencies that fail to comply with HUD’s directives could face further sanctions.

Colorado’s public housing agencies collectively oversee approximately 38,000 housing units, including traditional public housing and properties covered by housing choice vouchers.

HUD provides roughly $440 million in federal housing assistance to the state each year. Under federal guidelines, tenants typically contribute about 30% of their income toward rent while the federal government subsidizes the remainder.

The Colorado investigation is part of a broader review of housing programs across the country. HUD has confirmed it is also examining housing assistance operations in other states.

Earlier this week, the Washington Examiner reported that HUD plans to send investigators to Minneapolis and St. Paul, Minnesota, to review housing programs administered in those cities.

According to the report, the Minneapolis Public Housing Authority spends approximately $108 million annually on housing assistance, while the St. Paul Public Housing Authority spends about $46 million per year.

HUD’s planned review in Minnesota comes amid heightened scrutiny of government-administered aid programs in the state.

Minnesota has been the focus of federal attention following the $1 billion Feeding Our Future fraud scandal, which involved the misuse of taxpayer funds intended for child nutrition programs.

The housing probe also follows Immigration and Customs Enforcement operations that have targeted the Twin Cities region.

HUD officials have not announced a timeline for the completion of the Colorado investigation, but have indicated that enforcement actions will follow once verification efforts are completed and improper payments are fully identified.

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