HUD OIG: Public Housing Agencies’ Declarations of Trust

HUD did not always ensure that public housing agencies maintained valid and sufficient declarations of trust for HUD-assisted properties. Specifically of the 115 projects reviewed, 2 projects did not have declarations of trust and 20 projects had declarations of trust with deficiencies that impaired their validity. Further, OIG was unable to determine whether the declarations of trust for 47 projects were sufficient. OIG estimates that HUD will provide more than $509 million in operating subsidies over the next year for projects in which its interests are not protected.