HUD Watchdog Audits Chicago Housing Authority

The Chicago Housing Authority is under the microscope, as federal watchdogs dig into how the agency vets tenants for immigration status and criminal backgrounds, adding another layer of scrutiny to one of the city’s most powerful real estate institutions.

The U.S. Department of Housing and Urban Development’s Office of Inspector General has launched an audit of the CHA to examine whether it is properly verifying who qualifies for federally assisted housing, according to documents obtained and first reported by the Chicago Sun-Times. The review also aims to assess how the authority prevents and addresses criminal activity in its properties.

The audit notice states that its objective is to determine whether CHA complied with HUD’s requirements for verifying eligibility for assisted housing, based on disqualifying factors such as criminal activity, citizenship and immigration status, as well as to assess the agency’s practices in regards to addressing and preventing criminal activity.

The letter, dated Sept. 15, was sent to CHA Interim Operating Chairman Matthew Brewer by Kilah White, HUD’s assistant inspector general for audit. HUD said the work would begin immediately and will cover the period from Sept. 1, 2022 through Aug. 31, 2025.

HUD spokesperson Matthew Maley said the audit is part of a broader national push ordered by HUD Secretary Scott Turner. Earlier this year, Turner told public housing authorities the agency intended to “fully carry out the law” and ensure that no “illegals or ineligibles” are receiving HUD assistance. HUD is auditing housing authorities across the country, Maley said, including through on the ground investigations like the one in Chicago.

The CHA did not respond to requests for comment from the publication.

Chicago is not alone. A HUD official familiar with the process said the CHA is one of a handful of housing authorities currently being audited, alongside the District of Columbia Housing Authority. In August, Turner publicly said HUD had given the D.C. agency 30 days to turn over information about residents’ citizenship status, adding that similar demands were being made of more than 3,000 public housing authorities nationwide.

The CHA audit lands against a charged political backdrop. The Trump administration has intensified its focus on immigration enforcement and crime in Democratic-led cities, and HUD has increasingly framed housing oversight around “law and order.” The agency last week notified Boston Mayor Michelle Wu that it was opening an investigation into the city’s housing policies, accusing her administration of violating the Fair Housing Act through its equity initiatives.

Closer to home, the CHA has already been navigating federal pressure tied to Trump-era executive orders, including bans on diversity, equity and inclusion programs. The authority sued HUD over those requirements in October, before dropping the case after receiving a filing extension.

The CHA is the third-largest housing authority in the country, with a budget exceeding $1 billion. It serves more than 65,000 households and is the city’s largest single landlord. Any findings from the audit could ripple through how public housing is managed, funded and policed in Chicago’s neighborhoods.

— Eric Weilbacher