S.Amdt. 4327

SA 4327. Ms. ERNST submitted an amendment intended to be proposed by
her to the bill H.R. 6644, a bill to increase the supply of housing in
America, and for other purposes; which was ordered to lie on the table;
as follows:

At the appropriate place, insert the following:

SEC. __ . IDENTIFYING FRAUD IN HOUSING AND RENTAL
ASSISTANCE.--

(a) Definitions.--In this section:
(1) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(2) Project-based assistance; tenant-based assistance.--The
terms ``project-based assistance'' and ``tenant-based
assistance'' have the meanings given those terms in section
8(f) of the United States Housing Act of 1937 (42 U.S.C.
1437f(f)).
(3) Public housing agency.--The term ``public housing
agency'' has the meaning given the term in section 3(b) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Mandatory Compliance Date.--
(1) In general.--Not later than December 1, 2027, the
Secretary shall include, as part of the agency financial
report for fiscal year 2027 required under OMB Circular No.
A-36, a compliant improper payment assessment for project-
based assistance and tenant-based assistance.
(2) Detailed plan and timeline.--The Secretary shall
develop and execute a detailed plan and timeline for testing
and reporting improper payment estimates in the Office of
Public and Indian Housing's Tenant-Based Rental Assistance
program and the Office of Multifamily Housing's Project-Based
Rental Assistance program , in full compliance with Federal
law and applicable guidance issued by the Office of
Management and Budget.
(c) Identifying Fraud in Housing and Rental Assistance.--
(1) Public and section 8 housing.--
(A) In general.--Not later than 60 days after making a
determination described in subparagraph (B), the Secretary
shall notify the Inspector General of the Department of the
determination.
(B) Determination.--A determination described in this
subparagraph is a determination that--
(i) 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
(ii) 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.
(2) Community development and disaster recovery grants.--
(A) In general.--Not later than 60 days after making a
determination described in subparagraph (B), the Secretary
shall notify the Inspector General of the Department of the
determination.
(B) Determination.--A determination described in this
subparagraph is a determination that--
(i) 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
(ii) the number of sub-recipients or contractors receiving
payments under the programs described in clause (i) in a
specific jurisdiction increased by more than 100 percent in a
single year.
(3) 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--
(A) identify, based on the results of notifications
received under paragraph (1)(A) or (2)(A), 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
(B) audit any such program, agency, or recipient to ensure
compliance with improper payment testing requirements and to
detect potential fraudulent activity.
(d) Inspector General Oversight.--
(1) Pre-validation.--Not later than 180 days before the
deadline described in subsection (b)(1), the Inspector
General of the Department shall certify whether or not--
(A) the methodology chosen by the Secretary for the
assessment described in that section is statistically sound
and addresses all material findings from financial statement
audits and program audits conducted by the Inspector General
related to improper payment testing, eligibility tier
verification, and validation of payments to property owners;
and
(B) the Secretary made a serious effort to conduct a data
draw and receive supporting documents needed to conduct the
assessment described in subsection (b)(1).
(2) Fraud risk assessment.--
(A) In general.--The Inspector General of the Department
shall conduct, and submit to the Committee on Banking,
Housing, and Urban Affairs and the Committee on Homeland
Security and Governmental Affairs of the Senate a report on,
a separate fraud risk assessment specifically for the
approximately $50,000,000,000 expended annually for rental
assistance, including tenant-based ad project-based
assistance under section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)), to identify high-risk nodes
in the payment chain.

[[Page S846]]

(B) Data draw and analytics.--In conducting the assessment
under subparagraph (A), the Inspector General shall of the
Department shall--
(i) execute a comprehensive data draw from all relevant
departmental and third-party contract administrator systems
to reconcile payments at the eligibility tier;
(ii) identify specific barriers preventing the Department
from reestablishing computer matching agreements with the
``Do Not Pay'' database of the Department of the Treasury;
and
(iii) include in the report an analysis on how system
enhancement funding provided in previous fiscal years has
been utilized to specifically address noncompliance with
subchapter IV of chapter 33 of title 31, United States Code,
and other provisions of law related to improper payments.
(e) No Additional Funds.--No additional funds are
authorized to be appropriated to carry out this section.
______