In what authorities called the largest single sweep of housing-fraud suspects, dozens of tenants were charged with defrauding the Department of Housing and Urban Development.

With 35 suspects arrested and two more expected to surrender to face federal charges at the Southern District of New York, authorities accused tenants of concealing tens of thousands of dollars in annual income to qualify for enviably low rents, or of subletting the apartments to turn a profit while they lived elsewhere.

Some of the suspected HUD cheats allegedly paid $400 in monthly rent to live in spacious Manhattan apartments with river views. Others are accused of subletting HUD-funded apartments and using the profits to buy condos in trendy neighborhoods, such as TriBeCa. Suspect Angel Laverne of Morningside Heights is accused of stealing benefits from a tenant who had been dead for two years. Suspect Shamika Shears allegedly sublet a Section 8 apartment in the Bronx while living in West Palm Beach, Fla.

In all, $786,000 in housing benefits were stolen, according to city and federal officials, affecting 30 apartments throughout the city.

“It’s the quintessential New York dream: get a nice, spacious apartment, preferably with a view, and pay next to nothing on rent,” said the commissioner of the city Department of Investigation, Rose Gill Hearn. “Many of these tenants had these kinds of apartments, illegally, until today. Going forward, they will have to pay the same kind of rent that the rest of us have to pay.”

Actually, if convicted of making false statements and stealing government property, the tenants would continue to live at taxpayer expense: behind bars, for up to five years.

The U.S. attorney for the southern district, David Kelley, said the fraudulent actions of the suspects allowed them to “sit in comfortable homes at a profit” while “undermining the ability of the program to effectively service the truly unfortunate.”

“You have somebody living in the Murray Hill section of Manhattan, overlooking the water and, quite frankly, bringing in a pretty good income,” he said.

Mr. Kelley said that with the indictment, HUD housing is now available for the next 37 candidates on the 10-year waiting list.

HUD funds the Section 8 program that provides housing subsidies to low-income families and gives vouchers to tenants who then can choose their own private housing, so long as it fits the requirements of the Section 8 program. Subsidies are paid directly to the landlords, and the tenant pays whatever rent difference remains.

The indictment is the latest step in the government’s efforts to clean up its HUD program. Earlier this month, 105 convicts were ousted from the city’s HUD program, because felons are barred from receiving the housing benefits.

According to HUD officials, the program loses nearly $1 billion a year nationwide as a result of tenant fraud.