HUD Payment Integrity and Accountability Act of 2026

(a) Public and section 8 housing

(1) In general. Not later than 60 days after making a determination described in paragraph (2), the Secretary shall notify the Inspector General of the Department of the determination.

(2) Determination. A determination described in this paragraph is a determination that—

(A) the aggregate amount of housing assistance payments or grants paid under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) for a ZIP Code and county or county equivalent increased by more than 100 percent in a single year; or

(B) the number of owners, landlords, or public housing agencies receiving Federal rental assistance or operating subsidies increased in a ZIP Code and county or county equivalent by more than 100 percent in a single year.

(b) Community development and disaster recovery grants

(1) In general. Not later than 60 days after making a determination described in paragraph (2), the Secretary shall notify the Inspector General of the Department of the determination.

(2) Determination. A determination described in this paragraph is a determination that—

(A) the aggregate amount paid under the Community Development Block Grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 3601 et seq.) or funds paid under the Community Development Block Grant program for Disaster Recovery for a specific project or within a ZIP Code and county equivalent increased by more than 100 percent in a single year; or

(B) the number of sub-recipients or contractors receiving payments under the programs described in subparagraph (A) in a specific jurisdiction increased by more than 100 percent in a single year.

(c) Audit by the Inspector General of HUD. Not later than 2 years after the date of enactment of this Act, and annually thereafter, the Inspector General of the Department shall—

(1) identify, based on the results of notifications received under subsection (a)(1) or (b)(1), any program or geographic area in which the aggregate amount paid or the number of participating housing providers increased by not less than 400 percent during the preceding 5-year period; and

(2) audit any such program, agency, or recipient to ensure compliance with improper payment testing requirements and to detect potential fraudulent activity.