HUD OIG finds rental assistance rules on crime and immigration differ by program

The HUD Office of Inspector General analyzed HUD rental assistance requirements for individuals with a criminal history or who engage in criminal activity, and for individuals who are non-citizens. The report is numbered 2026-OE-0501 and was issued Sept. 24, 2026. It covers Community Planning and Development and Public and Indian Housing.

The OIG found that differences in program requirements on substance abuse and criminal activity are based on differences in the governing statutes and the purposes of the programs. Statutes and regulations permit, but do not require, PHAs and owners to evict residents for substance abuse or certain criminal activities.

One exception applies. Eviction is mandatory if a household member is convicted of the manufacture of methamphetamine in Federally assisted housing.

On immigration status, the OIG found that eligibility requirements vary across HUD programs. It acknowledged several proposed policy changes that may address the differences. It also cited the 2025 HUD Notice, HUD's agreement in litigation to stay enforcement of the notice in certain states, and the subsequent 2026 DOJ Opinion partially overruling that notice.

Given those developments and potential remaining variation, the OIG said clarification may be needed to support consistent application of eligibility requirements. It encouraged HUD to issue regulations on the applicability of PRWORA to HUD programs once ongoing litigation is concluded.

The OIG recommended that HUD assess differences on substance abuse and criminal activity across programs and take appropriate steps toward consistent application where that aligns with program goals. It also recommended that HUD assess immigrant eligibility requirements and act to support consistent implementation. Based on actions HUD has taken, both will be closed upon issuance of the memo.