HUD’s settlement with the Puerto Rico Public Housing Administration (PRPHA) resolved PRPHA’s complaint of 25 years that HUD had unfairly discriminated against the agency in calculating its annual operating subsidy. The settlement, which addressed claims totaling over $500 million, was approved by the Department of Justice as being in the best interests of the United States.

As we have said consistently, HUD has zero tolerance for fraud, waste and abuse. HUD has responded aggressively to developments in Puerto Rico by sending two teams to inspect PRPHA properties, by conducting an assessment of the local authority’s procurement practices and financial operations, and by establishing an ongoing procurement monitoring mechanism.

HUD is committed to producing measurable progress in PRPHA’s financial controls. HUD does not anticipate any difficulty in satisfying Senator Bond’s concerns and, indeed, has already started on that process.