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We audited the Allegheny County Housing Authority’s administration of its Public Housing Capital Fund grants that it received under the American Recovery and Reinvestment Act of 2009. We selected the Authority for audit because it received a $7.7 million formula grant and three competitive grants totaling $5.8 million, which was the third largest formula grant and the second largest amount of capital fund competitive grants awarded in Pennsylvania. Our objective was to determine whether the Authority properly procured goods and services and obligated its Recovery Act capital funds according to Recovery Act and applicable U.S. Department of Housing and Urban Development (HUD) requirements. We found the Authority did not always procure goods and services and obligate its Recovery Act capital funds properly. It did not have a written contract to support $1.3 million that it paid to a contractor. It did not always comply with the “buy American” requirement of the Recovery Act, improperly obligated grant funds, erroneously drew grant funds from HUD, did not amend its procurement policy for competitive grants as required, and allowed an apparent conflict of interest to occur. We recommended that HUD require the Authority to provide documentation to support expenditures totaling $1.8 million identified in this report or reimburse HUD from non-Federal funds for any amount that it cannot support. We also recommended that HUD require the Authority to (1) reimburse $102,000 from non-Federal funds for ineligible expenditures, (2) develop and implement controls to demonstrate that funds it obligated for inspection services were related to Recovery Act-funded work items, (3) stop erroneously drawing grant funds, and (4) ensure that it complies with applicable conflict-of-interest requirements and seek exceptions on a case-by-case basis if applicable.