SACRAMENTO — After watching scammers make off with more than $20 billion in fraudulent California unemployment benefits during the pandemic, state housing officials were wary of a repeat when the federal government poured money into the state and told them to use it to pay off people’s unpaid rent.
But in the eight months since California’s rental assistance program began, fraud has been virtually nonexistent. The Department of Housing and Community Development has identified 1,800 fraudulent rental assistance applications out of nearly 500,000 statewide — 0.0036% — and none was paid.
Geoff Ross, the agency’s deputy director, said it was “mindful” of California’s unemployment benefits debacle that has become the most expensive government fraud case in state history.
“All of those were detected pretty easily and early,” Ross said of the fraudulent rental assistance applications. “We learned a lot from previous programs.”
Congress approved trillions of dollars in aid during the pandemic — including more generous unemployment benefits and rental assistance — often leaving it up to state and local governments to get the money out the door.
For unemployment benefits, many states, last year, rushed to approve checks for millions of people who suddenly lost their jobs because of government shutdown orders. The frenzied approvals made it easy for criminals to file and collect on fraudulent claims in states large and small, even collecting benefits in the names of tens of thousands of state prison inmates.
Earlier this year, Congress approved $46.5 billion in rental assistance, and most states are distributing the first tranche of $25 billion. According to the US Treasury Department, more than $10 billion has gone out through Sept. 30, and officials credit that with helping avert a wave of evictions.
It’s been difficult to determine if scammers are targeting federal rental assistance money nationwide with the same gusto they had while going after expanded unemployment benefits. Many states, including Missouri, Texas, Louisiana and Rhode Island, won’t say if they have had any fraud, claiming doing so would compromise their security.
The Treasury Department, which oversees compliance with federal spending programs, says it is monitoring various state programs for fraud but has nothing to report yet.
But among states that have disclosed information, there has been little fraud.
In Arizona, where a staggering 30% of unemployment benefits paid during the pandemic went to scammers, state officials have received nearly 8,300 rental assistance applications so far. A computer program they use to verify people’s identities has stopped more than 9,900 people from filing potentially fraudulent applications. It’s the same program many states adopted to stop fraud in their unemployment claims.
In New York, state officials say potentially fraudulent applications account for “less than a fraction of 1% of the total number of applications submitted,” according to Anthony Farmer, director of public information for the New York Office of Temporary and Disability Assistance.
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November 19, 2021 at 07:00PM
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Rental assistance programs: Little fraud | News | avpress.com - Antelope Valley Press
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