HUD Takes Action on Housing Authority Salary Caps Under Grassley Scrutiny

WASHINGTON, D.C. – (RealEstateRama) — Under pressure from Sen. Chuck Grassley, the Department of Housing and Urban Development (HUD) released updated salary data for the top executives at public housing authorities nationwide. The state and local housing authority executives are prohibited from exceeding a congressionally imposed cap on the amount of federal money that can be used for salaries. HUD announced it is seeking reimbursement from six housing authorities that exceeded the 2014 federal salary cap of $157,100. The cap for 2016 has been increased to $160,300. Grassley made the following comment on HUD’s action.

“Congress imposed the salary cap for good reason. Housing authorities receive billions of dollars from the federal taxpayers to provide safe, affordable housing for people in need. The federal funds aren’t meant to feather the nests of housing authority executives with big salaries and perks like housing and car allowances. But HUD didn’t pay attention and let too many housing authorities get away with wasteful spending. I welcome what HUD is doing on the salary caps, but much more needs to be done. HUD needs to stop letting housing authorities convert federal money to non-federal money to exceed the caps. And maybe Congress needs to take another look at a legislative proposal to tie salaries to housing units. Some housing authority executives receive six-figure salaries to manage only a couple hundred units. Many housing authorities have long waiting lists, and HUD needs to get the most bang for the taxpayer’s buck.”