HUD generally tracked and monitored its grantees; however, it did not prioritize grantees that encountered challenges in spending their CoC grant funds before the grants expired. This condition occurred because HUD did not have written guidance that detailed how field offices should review grantees for spending issues. Between 2017 and 2020 HUD recaptured nearly $257 million from CoC grantees that had not fully spent their funds. While several factors outside of HUD’s control contributed to the spending challenges, improved tracking and monitoring could help ensure that the grantees timely address those factors and mitigate their impact. Without proactive measures, grantee spending challenges will likely continue, leading to unused funds that could otherwise have gone toward addressing homelessness. In addition, although the pandemic did impact how CoC grantees carried out their programs and some grants had to be temporarily put on hold, overall nationwide CoC grant fund spending was not significantly impacted in the long term by COVID-19.
We recommend that the Deputy Assistant Secretary for Operations for HUD’s Office of Community Planning and Development (CPD) implement written procedures to ensure consistency among field offices in reviewing spending, potentially preventing up to an estimated $47 million in annual CoC recaptures. In addition, we recommend that CPD’s Deputy Assistant Secretary of Special Needs Programs design and implement a strategy-intensive training program for grantees.
Recommendations
Community Planning and Development
- Status2023-LA-0002-001-AOpenClosed$47,000,000.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on Abril 25, 2024Implement written procedures to ensure consistency among field offices in reviewing spending issues, potentially preventing up to an estimated $47 million in annual CoC recaptures.
- Status2023-LA-0002-001-BOpenClosedClosed on Agosto 02, 2024
Design and implement a training program and other development tools to help grantees. The goal of such training would be to provide ideas and other development tools to help the CoCs better provide assistance with implementation of their grants and monitoring of their grantees, including assistance with developing outreach strategies, partnering with community providers, financial budgeting, and best practices. The training should focus on the needs of first-year grantees and CPD should take steps to encourage participation.