Hundreds Of MN Families In Public Housing Making Too Much, Audit Finds

MINNEAPOLIS (WCCO) -- Millions of tax dollars are being spent on families living in subsidized housing -- some who earn six-figure salaries.

A 2015 audit of HUD housing found thousands of families in public housing who make too much money. Hundreds of them are right here in Minnesota. And it happened while needy families remain on long waiting lists.

"I am homeless and I am looking for somewhere to stay," Sandra Marshall said.

Marshall turned to Minneapolis Public Housing for assistance. She wants to have a permanent place to raise her grandson, but said it's tough to find affordable housing in the Twin Cities.

"It's overwhelming and it's way too much for the budget I receive every month," Marshall said.

To qualify for Public Housing, you can only make a certain amount of money. Housing rules require people meet the requirements only once, upon admission. And that rule, according to a scathing report by the Office of the Inspector General, will cost HUD approximately $104 million nationwide over the next year for units occupied by 25,226 over income families nationwide. More than half of those, 17,761, were over income for more than a year.

In Minnesota, some barely topped the qualifying amount, making only hundreds more. But the most egregious were in the tens of thousands of dollars. In Mankato, a family earned $144,365 too much. A Minneapolis family made $75,447 too much, and over in St. Paul public housing, $73, 213.

Republican Representative Phil Roe of Tennessee requested the audit. And last month he introduced a bill to bring what he calls "fairness to public housing."

"It seems wrong to me to have people who are 125% above the income level to stay in that home while someone who is very needy doesn't have a home," Roe said.

Here's how it happened:

The guidelines don't require housing authorities to evict families who become over income. In fact, they like families to stay, to encourage employment and self-sufficiency and to promote income mixing.

Rep. Keith Ellison doesn't think someone should be kicked out as soon as they become over income.

"We should not disparage these families who are working to get back on their feet or the programs assisting them. It makes sense to have income thresholds for these programs, but we have to remember that their incomes are often inconsistent and unpredictable," Ellison said.

Marshall learned there's a 5-year waiting list in Minneapolis. St. Paul was so overwhelmed they've shut down their list.

"I think it's bad that people that making more money and living off of, its putting people like me in a bad place where we're either going to a shelter or we just don't have nowhere to go," Marshall said.

Officials said the most egregious offenders in Minnesota have either moved out, or are now under the income level. HUD is considering ways to limit the number of over income families living in public housing, and to provide guidelines for when families must move on.

The public can weigh in on this issue here.