(WASHINGTON) — A contract to inspect low-income and other assisted housing for gas leaks, faulty smoke detectors and other life-threatening deficiencies was terminated by the Trump administration in February as part of its cost-cutting efforts, according to a Department of Government Efficiency database, potentially leaving thousands of vulnerable Americans in harm’s way.
Tom Feehan, a veteran home inspector who lost work as part of the termination, told ABC News that these legally required inspections frequently uncover painted-over ceiling sprinklers, defective gas ranges and any number of home-related liabilities that can pose a danger to occupants.
“By not doing [the inspections], we’re not catching those,” Feehan said. “So those are not being repaired, and it’s putting people at risk.”
Last year, the contractor, Project Solutions Inc., in its third year of working with the U.S. Department of Housing and Urban Development, was assigned to inspect roughly 6,200 public housing and multifamily properties across the country over the course of 12 months. In addition to flagging dangerous conditions, the inspections ensure that tenants have hot and cold water, safe electrical outlets, and working heating and cooling systems, experts said.
A HUD official told ABC News that the contract was for “software modification,” despite Project Solutions identifying the contract as being for inspection services. The HUD official declined to elaborate on the reason behind the contract’s termination.
The sudden termination threatens thousands of inspections, according to Robin Miller, a contract manager at Project Solutions, including those at roughly 250 “priority” properties, where inspections were already delayed or significant deficiencies were found during previous inspections.
Project Solution’s contract termination was among more than 7,000 federal contracts canceled by DOGE and posted to the agency’s “Wall of Receipts” web page in recent weeks. The DOGE site claimed that terminating the inspection contract would return $285 million to taxpayers.
But Miller, the Project Solutions official, said that figure was inflated because it was based on a high estimated ceiling value that wasn’t reflective of what the contract would actually cost. According to federal spending records, HUD had only awarded Project Solutions roughly $29 million so far.
Experts said it was unclear how housing officials planned to carry out the outstanding inspections.
HUD spokesperson Kasey Lovett said in a statement that “HUD is reviewing all contracts for efficiency and effectiveness to accomplish good government goals,” and that “certain contracts were found not to accomplish HUD’s mission with economy, efficiency, and effectiveness.”
Industry experts said that the inspections, which are required by law, will likely fall to other contractors at a similar price. But arranging those inspections will take time, experts said, and delaying inspections compounds the risks for tenants.
“We’re helping low-income people and we’re helping senior citizens maintain a safe, livable environment,” Feehan said. “And with not getting these inspections done on time, it’s hurting them.”
Another HUD-certified inspector based in Illinois, who asked that their name not be used so they could speak freely about their field of work, told ABC News that one of the properties that was scheduled to be inspected until the Project Solutions contract was canceled was a 24-unit multifamily property that had received far below the “failing” score, meaning significant deficiencies were found during its previous inspection and the property needed more frequent inspections. The property was already past due its Dec. 13, 2024, inspection date, and its inspection has yet to be rescheduled, the inspector said.
Project Solutions was one of at least three contractors that were hired to inspect HUD-insured and assisted properties under the agency’s Real Estate Assessment Center program, which is aimed at “improving housing quality by performing accurate, credible, and reliable assessments” of its properties.
“I 100% agree that all governments, all organizations, businesses, even personal family units, should routinely review budget and spending habits and cut things out that are not necessary,” the Illinois inspector said. “Get rid of the fraud, waste abuse — but you have to be responsible about it.”
“If it wasn’t for DOGE, we’d still be doing the contract. That’s my opinion,” Feehan said. “DOGE is trying to get rid of waste, fraud and abuse. I didn’t see where there was waste fraud and abuse with PSI.”
Alia Trindle, co-director of political strategy at housing advocacy group Right to the City Alliance, stressed that many HUD-funded buildings have been in dire shape for decades due to past funding cuts. She said for some properties, tenants and advocates have had to organize to push for basic repairs after years of neglect.
“Working-class and poor communities have to contend with substandard and neglected housing that could have devastating long-term health consequences for those that live there, from mold to pest to a lack of access to basic utilities like water and heat,” Trindle said.
“So regular inspections, whether done by HUD or HUD-affiliated groups or by municipalities, are critical to ensuring that those who are responsible for this housing stock do the bare minimum to maintain them,” she said.
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