What Are HUD Violations?


HUD stands for Housing and Urban Development. HUD is the government agency in charge of the Section 8 program, which provides low-income families with housing assistance through contracts with private owners or managers of rental housing properties. They also investigate fraud.

It’s important to be aware of HUD violations because HUD sets the standards for acceptable housing conditions. If your rental unit doesn’t meet HUD’s standards, you may be able to file a complaint.

What Happens if You Don’t Report Income to HUD?

If you’re a participant in the HUD Section 8 rental assistance program and you don’t report your income, you may be subject to penalties.

The first time you are caught not reporting your income, HUD will send you a warning letter. They may terminate your lease or reduce your rent subsidy if it happens again.

Moreover, HUD will report the income you didn’t report to your state, who may use it against you for child support payments.

In addition, if a third party reports an individual’s non-compliance with Section 42 requirements of the Housing Act, that person is subject to a civil monetary penalty (CMP) in accordance with 24 CFR Part 9858 by HUD.

When Is Reporting Income Required?

You must report your annual income to the local Program Participant Intermediary (PPI) each year of which you receive assistance. A PPI is a HUD-approved nonprofit agency that helps families apply for and maintain their housing vouchers and other rental assistance programs.

You must also report any changes in your income, family size, or address within ten days of the change. This is to ensure that you continue to receive the correct level of assistance.

Forgot To Report Income Section 8?

So, you forgot to report your income on your HUD application? This is a common mistake, but it’s important to remember that you need to report all of your income.

If you don’t, not only will you be penalized by HUD, but you may also have to pay back any benefits you’ve received illegally.

It may seem like a good idea to hold off on reporting your income, but you should know that any money not reported will be counted as unreported income by HUD.

If they find out later that you didn’t report it, they can go back and charge additional rent or reduce the amount of assistance based on what you’ve received in illegal benefits.

What Happens if You Lie To Housing?

If you are caught lying on your HUD application, you may face criminal charges. Lying on a HUD application is a federal crime and can result in fines or even jail time.

This is also a common problem because many landlords fail to properly inform tenants of their rights. Therefore, it is extremely important that you know your HUD housing and Fair Housing rights. It will help you avoid problems with HUD in the future.

Other Possible HUD Violations

You should know that landlords are required to give advance notice to you about any repairs or alterations they are planning to do in your home, whether this be painting a room or adding new carpeting.

They must give you notice before entering your home for these repairs. If they don’t, they may be subject to fines from HUD.

Landlords are not allowed to discriminate against tenants based on gender, race, or religion. They can’t deny you housing based on credit history, including bankruptcy or previous eviction records, either.

If you’re a victim of domestic violence, you have the right to terminate your lease without penalty. You also have the right to reasonable accommodations, such as changing locks or adding security features to your home.

Additionally, landlords must accommodate tenants with disabilities who request reasonable accommodations to help them live comfortably in their homes.

What Is Section 8 Fraud?

HUD investigates cases where owners and managers of rental housing properties are accused of fraud with Section 8 programs. Section 8, or public housing, is a program that provides subsidies to low-income families who need help finding affordable, safe places to live.

Tenants or applicants for Public Housing or Section 8 who make false assertions about their income or family size or falsify paperwork are committing fraud.

This may include, but is not limited to, the following:

  • Falsifying documents to qualify for a program they would not otherwise be qualified for.
  • Providing false information on an application, such as falsely reporting that you are a U.S. citizen when you are not.
  • Making statements or providing documentation that you know to be false when you know that the information is needed to qualify or continue in a program.
  • Knowingly hiding assets, income, and/or other things which would prevent your application from being approved.

Penalties for committing HUD housing fraud can be severe. Individuals can be fined, imprisoned, or both. In addition, anyone who commits fraud will likely have their benefits terminated and may be blacklisted from ever receiving housing assistance again.

It’s important to remember that HUD takes fraud seriously and will prosecute anyone who commits these crimes. So, if you’re thinking about lying on your application or falsifying documents, think again. It’s not worth the risk.

Can You Go to Jail for Section 8 Fraud?

The United States Department of Housing and Urban Development (HUD) takes Section 8 violations and program fraud very seriously if you’re ever caught doing it or know someone who is. HUD fraud investigations can have severe consequences.

In fact, even a first offense for lying about your income on an application can result in jail time under federal law. Although this is rare, it is possible. Any offense that results in the theft of HUD funds will automatically result in prosecution and jail time.

If you’re thinking of committing fraud in order to get your hands on some free housing, stop right there. The risks are just too high. Remember, HUD is always watching.

What Is the Enterprise Income Verification (EIV) System?

The Enterprise Income Verification (EIV) System is a computerized database system used by HUD in an effort to combat fraud and abuse of the Section 8 program. This system aims to provide more efficient, accurate, and speedy verification checks on applicants’ statements regarding their income.

HUD’s EIV system is mandatory for all Public Housing Agencies (PHAs) in the U.S.

That means that if you apply for Section 8 housing, your application will be automatically entered into HUD’s computerized database and run against a number of databases to check the accuracy of all information submitted on your application, including employment records, asset holdings, and income sources; with particular emphasis placed upon independent verification procedures in order to verify or disprove the information you’ve provided.

The EIV system is also used to identify and track potential fraudulent behavior and landlords and tenants accused of participating in or perpetrating fraud with the Section 8 program.

If you’re applying for Section 8 housing, you must understand how HUD’s EIV system works and what you can do to help ensure the accuracy and validity of your application.

Is There an Asset Limit for HUD?

The Section 8 program is a great way for low-income families to get into the housing market.

Assets that these tenants own may not be restricted in any given year, but they will still have their annual incomes factored into calculations which could change eligibility and total payments if it reaches high enough levels.

However, HUD has no asset limit, as long as the assets in question are not being used to illegally profit from the program.HUD does, however, have a set of guidelines that outline what is considered an allowable asset and what is not.

Income and asset levels are re-evaluated every year, so there is always the potential for an increase or decrease in what someone can receive as HUD assistance.

Do Assets Count as Income?

HUD does not count assets as income, but they do have a set of guidelines that determine what is allowed. However, there are some rumors that your assets may be counted as income if you live in public housing.

The truth is while HUD has set a guideline for how much an asset can earn and still count towards Section 8 eligibility, the decision of whether or not to include it rests with individual landlords.

Some choose to allow public housing owners to keep a little more money in their pockets by not counting assets as income, whereas others may require that all assets be declared.

It’s important to remember that each landlord is different, and you should always consult with them directly if there is any confusion about what is or is not considered an allowable asset.

Allowable Assets

The following are considered allowable assets:

  1. House or other structure in which you live: Provided the property is your primary residence.
  2. Money in an account with a financial institution: Savings, checking, and money market accounts.
  3. Stocks and Bonds: Stocks and bonds held in a brokerage account.
  4. Life insurance policies: Cash surrender value of a life insurance policy.
  5. Safety deposit boxes: Contents of a safety deposit box.
  6. Cash on hand: Cash on hand, or money in your wallet.
  7. Items of value for personal use: Such as boats, jewelry, furniture, personal items, and other collectibles.
  8. Burial plot: Provided it is not used for any illegal activity. Purchased with cash or paid in full from life insurance policies.

Disallowable Assets

The following are not considered allowable assets:

  1. IRA accounts: You cannot use the value of your IRA account as an asset.
  2. 401k or other retirement accounts: The same rule applies to 401k and other retirement accounts.
  3. Vehicles: Cars, trucks, vans, motorcycles, and other vehicles are not considered allowable assets.
  4. Real estate investments: Rental properties, land parcels, and any other type of real estate investment are not considered allowable assets.
  5. Tax-exempt bonds: Municipal, state, and federal tax-exempt bonds are not allowed as an asset.
  6. Businesses or other investments: Money made from any type of business or investment is not allowed as an asset.

If you’re considering applying for Section 8 housing, it’s important to understand what is and is not considered an allowable asset. Knowing this information will help you complete the application process accurately and without delay.

How To Report Section 8 Fraud Anonymously

When you report fraud, you will be asked to provide your name and contact information, but you can choose to remain anonymous if you prefer.

It’s crucial to know that while you can report fraud anonymously, you may not receive any subsequent updates or information about the case if you do. Being anonymous is good if you don’t want to be contacted by the HUD investigator, but it also means that they may not use your information in any future criminal proceedings.

If you want to remain anonymous when reporting fraud, filling an online form on a website or reporting over the phone will provide you with greater protection rather than simply sending an email from an account.

When making a report, be sure to include as much information as possible, including names, dates, and contact information. Documentation such as emails, letters, or photos can be especially helpful. Additionally, be sure to keep any documentation or records related to the fraud you’re reporting in a safe place.

It’s important to report any suspected HUD violations as soon as possible, whether you’re a tenant or landlord. You can report fraud anonymously by calling the HUD hotline at (800) 955-2232, and you can also make a report online through the HUD website.


HUD violations are not something that you should take lightly. Failure to report income or assets could lead to jail time, fines, and more if you don’t know what the law requires. In order to protect yourself from violating housing laws, it’s important to know when you need to report your income and assets so you can avoid penalties for non-compliance with Section 8 requirements.

Even if you think it’s not a big deal, it is important to report your income to HUD. Not only will they be able to provide better housing for you and your family, but they will also make sure that Section 8 fraud doesn’t happen in the future. Reporting any income changes should be done as soon as possible, even merely forgetting can get you into trouble. We hope this article was helpful and that it answered any questions you may have had about HUD violations.


  1. As a homeless individual from the streets of Los Angeles to the streets of Texas I have suffered I’ve heard I’ve been injured I’ve been assaulted I’ve been robbed I’ve been jumped I’ve starved I’ve been in the cold and I’ve been in the heat just want to say from the bottom my heart I thank God in the state of Texas for housing HUD homes and other programs they have for those individuals who are serious about ending homelessness drug addictions and whatnot thank you Kim.

  2. So am I understanding this correctly? If I own a car and I want to apply for section 8, I will not be given section 8 because it is not an allowable asset? Please respond… I will check my email.https

    Thank You,
    Ereina R.

    1. Hi Ereina, the Section 8 housing assistance program is focused on assisting low-income families and individuals with get affordable housing. If you check with your local housing authority or the PHA office, you would be asked to fill in your total income and this must be in line with the accepted low-income earners. You can read the previous article on the requirements for low-income housing here to get further understanding.

Leave a comment

Your email address will not be published. Required fields are marked *