What is Section 8 fraud?


Quick Answer

Section 8 fraud is defined as a single act or several acts that are intended to deceive or mislead in order to acquire housing program funds, explains Legal Information Institute. Tenants or owners who conceal or omit facts, or make false statements to obtain rental assistance, are guilty of fraud.

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Full Answer

Examples of Section 8 fraud include people who allow others to live with them without reporting it, people who rent an assisted unit to others and people who claim dependents living with them when they are not, says LexisNexis Risk Solutions. People who don't report income, or who falsify signatures or documentation also commit fraud.

Information supplied by applicants to the Department of Housing and Urban Development is verified, and any applicant who knowingly signs a form that gives misleading or false information is committing fraud, according to the Office of Inspector General at HUD. All income, assets, and government assistance payments received by an applicant or a member of an applicant's household must be accurately reported to avoid committing fraud. The income and asset information applicants supply is checked against information from private agencies and other government agencies, and if it is not accurate, it is considered fraud. All adults and children, related or not, that live with an applicant must be reported to HUD.

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