My mom is on HUD housing and they told her that the money she has from the sale of the house can't be given to anyone. What can she spend the money on?

Her health care would seem to be the place they'd want to put it, but I'd advise you to ask directly who you should talk with so that you make the correct decisions. You can check with your state website to see what they have to offer for advice or start with the HUD website. You may even want to consult an elder law attorney for a one time fee, though I'd think HUD could offer you the right contacts. Good luck. It's always confusing and sometimes frightening to be faced with these decisions. Keep good records and continue to be cautious about how you can legally use her money.
Take care,
Carol

I don't have an answer for you but know there's got to be an Ombudsman or someone you can go to for help --- until someone else posts an answer, there is a website for fair housing with a message board --- seems like questions and answers are the same kind as you posted.

if you want to check it out. Looks like a couple of legal aid offices got together to create this site.