Opinion: More accountability needed – Defrauding state programs is stealing from taxpayers

Sen. John Braun argues that fraud and nepotism within Washington’s Community Reinvestment Plan undermine taxpayer trust and calls for stronger accountability through Senate Bill 6205.

Sen. John Braun shares his thoughts on stopping fraud in state housing grant program

Sen. John Braun
20th Legislative District

There’s been plenty of news lately about the defrauding of government programs, specifically by some daycare owners in Minnesota. While that issue has received a lot of attention, it is not unique. Across the country, people commit fraud against all kinds of publicly funded programs, accessing benefits intended for people who are truly in need.

Not only is this morally wrong, it’s criminal.

Every taxpayer should be concerned about fraud — that’s your money being stolen or misused — and I’m sponsoring Senate Bill 6205 to address a specific category of fraud here in Washington.

Fortunately, SB 6205 is scheduled for a hearing in the Senate Housing Committee at 10:30 a.m. on Wednesday, Jan. 28. Before the hearing, you can:

Sign in online to support the bill,
Testify on the bill from home OR in person; or,
Submit written testimony to the committee.

Learn how to testify in committee.

Read my news release.

Listen to my radio release.

WHAT DOES SB 6205 DO?

SB 6205 addresses the bad combination of nepotism, fraud and lack of accountability in a publicly funded housing program designed to help people of color become homeowners. It’s called the Community Reinvestment Plan (CRP).

The bill would make it illegal for the officers of any of the nonprofits in charge of distributing CRP money, and their family members, to receive any of the housing grants or benefitting from the grants indirectly.

The bill would also require the Department of Commerce to evaluate how the grants are distributed and make the results available to the Legislature.

WHY DO WE NEED THIS REFORM?

According to information recently provided by a whistleblower, one of the nonprofits in charge of distributing money for the CRP gave hundreds of thousands of dollars to people with close family connections to the organization while others in need went without.

In one instance, an individual received $350,000 toward the purchase of a $425,000 home. It turned out that her mother controls the purse strings for one of the nonprofits in charge of distributing the grants. Two other people with ties to the same organization received $50,000 and $100,000 respectively. Part of the $50,000 grant was reportedly used by the recipient to pay off her credit card debt.

Next week, I will share committee testimony on SB 6205. If you have questions or concerns, you can email me at john.braun@leg.wa.gov.