Hud Watchdog Swept Up In Large-scale Firings Of Inspectors General

Rae Oliver Davis, the inspector general of the U.S. Department of Housing and Urban Development (HUD), was one of more than a dozen inspectors general fired by the Trump administration late in the day on Friday. The move has sparked controversy, with lawmakers accusing the president of breaking federal law, and others expressing concern that the independence of these agencies would be damaged.

A HUD spokesperson confirmed for news outlet The Hill that Davis “received notice Friday that her position was terminated,” alongside confirmation from a U.S. Department of Defense (DOD) spokesperson that Inspector General Robert Storch was also terminated. Davis was nominated for the HUD OIG position in June 2018 by Trump during his first term, and she assumed her duties in January 2019.

The move could set up a legal battle between the impacted IGs and the White House. Trump defended the move on Saturday night to a group of reporters aboard Air Force One, the presidential aircraft according to the Washington Post.

“I don’t know them,” Trump said. “But some people thought that some were unfair or some were not doing their job. It’s a very standard thing to do.”

HousingWire reached out to a spokesperson for the HUD OIG’s office, but did not receive an immediate reply.

Sergio Gor, the White House director of personnel, informed the IGs via email that their positions were terminated due to “changing priorities.” The only IGs who were spared from the firing spree are those overseeing the departments of Justice and Homeland Security, the Post noted.

But lawmakers are concerned that the firings may have violated federal law, since there is a requirement for a president to notify Congress 30 days in advance of an intent to remove an inspector general from their position. This has led some of the impacted IGs to tell reporters they still planned to show up for work on Monday morning, which could “create awkward encounters on Monday” due to the legal uncertainty, the Post said.

On Sunday, Sen. Adam Schiff (D-Calif.) said on NBC’s “Meet the Press” that Trump broke the law.

“To write off this clear violation of law by saying, ‘Well,’ that ‘technically, he broke law.’ Yeah, he broke the law,” Schiff told program moderator Kristen Welker. Schiff was responding to comments made earlier in the program by Sen. Lindsey Graham (R-S.C.), a Trump ally, who said that “technically,” Trump had broken the law.

In a later interview with CNN, Graham said he supported the move.

“He feels like the government hasn’t worked very well for the American people,” Graham said. “These watchdog folks did a pretty lousy job. He wants some new eyes on Washington. And that makes sense to me,” he said. He added, however, that Trump should have notified Congress before initiating the firings.

The mission of HUD’s OIG is to “safeguard HUD’s programs from fraud, waste, and abuse and identify opportunities for HUD programs to progress and succeed,” according to the office’s website.

The office typically conducts audits, evaluations, and investigations of HUD programs and operations. The most recent report from the office issued under Davis’ leadership came on Dec. 18, urging HUD’s Office of Multifamily to improve its oversight of project-based rental assistance (PBRA) and FHA-insured project-based voucher (PBV) properties converted under a rental assistance demonstration (RAD).

Davis has spoken with HousingWire on multiple topics including the HUD OIG’s role in an investigation into corruption at the New York City Housing Authority (NYCHA), as well as the decision to open an investigation into Ginnie Mae’s extinguishment of a company from its Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) program.