We audited the City of Los Angeles’ Community Development Department (City) as a result of problems noted during a prior audit involving activities administered by the Community Redevelopment Agency of the City of Los Angeles (subrecipient). Our objective was to determine whether Community Development Block Grant (CDBG) funds were administered in accordance with HUD’s requirements for the CDBG program as they relate to a specific subrecipient. The City initially failed to demonstrate that any of the five CDBG-assisted projects reviewed, totaling more than $4.8 million, administered by its subrecipient, complied with the national objectives. Subsequent to our audit fieldwork, the City located and provided additional records to adequately support that the national objectives were met for four of these projects. Therefore, only one of the five projects totaling $935,000 remained inadequately supported. In addition, the City did not always effectively monitor CDBG-assisted projects administered by its subrecipient. We attribute these deficiencies to the City’s and subrecipient’s not implementing written policies and procedures to ensure that each project met a national objective and that the projects benefitted the intended low- and moderate-income persons. We recommend that HUD require the City to (1) provide supporting documentation showing that the Capitol Records Surface Parking CDBG project met a national objective or repay its program from nonfederal funds, (2) implement adequate monitoring controls over its subrecipient and CDBG-assisted projects, and (3) suspend all CDBG funding to the subrecipient until acceptable policies and procedures are in place to ensure compliance with CDBG program requirements.