There are multiple housing and community development programs involved in scandal at the U.S. Department of Housing and Urban Development. The New York Times reports that “H.U.D. officials have said that at least 28 of the department's 48 programs and activities have ‘significant problems’ attributable to fraud, mismanagement, and favoritism” (August 13, 1989).
Among the most significant (in both dollar volume and public visibility) are: Section 8 Moderate Rehabilitation, Urban Development Action Grants, Title X Land Development Mortgage Insurance, Mortgage Coinsurance, sales of HUD-foreclosed properties, Retirement Service Centers, and the Secretary's Discretionary Fund. Dozens of former government officials, many from HUD, some presidential appointees and cabinet members, and Republican Party officials have profited through both consulting fees and by securing subsidies for their housing or development projects through these programs. There are now multiple congressional investigations, led by the House of Representatives Government Operations Sub-Committee on Employment and Housing (Rep. Tom Lantos, Chair) and the Committee on Banking, Finance, and Urban Affairs (Rep. Henry Gonzales, Chair). The Times reports that the Department of Justice is pursuing 600 HUD-related cases (August 13, 1989).
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