HUD OIG conducted a survey of HUD’s Supportive Housing Program (SHP); specifically, the monitoring of nonprofit subgrantees (project sponsors) that deliver supportive housing and/or supportive services.  We wanted to assess whether SHP grantees followed Federal regulations and HUD guidance on monitoring project sponsor activities and program expenditures. We also wanted to look at HUD’s role in the grantees monitoring of project sponsors.  Questionnaires were sent to all 44 HUD Office of Community Planning and Development (CPD) regional and field offices and to a sample of 11 SHP grantees and 12 project sponsors.

Survey responses indicated that overall HUD is actively providing monitoring guidance to SHP grantees and that most grantees reported compliance with Federal regulations related to their monitoring of project sponsors. However, responses to the survey indicated that improvement is warranted in certain aspects of HUD’s guidance and grantee monitoring.

Effective oversight and monitoring are crucial to ensuring that SHP funds are properly spent to assist in transition people from homelessness.  Therefore, HUD should reinforce compliance with Federal regulations and monitoring guidance and ensure that its monitoring reviews include assessment of SHP grantee project sponsor management.