We audited the City of Los Angeles Housing Department (City) as the result of problems noted during a prior audit involving HOME Investment Partnerships Program (HOME)-funded activities administered by the Community Redevelopment Agency of the City of Los Angeles (subrecipient), which was not adequately monitored by the City, compounded by concerns stemming from various newspaper articles related to the Marlton Square project, which included the Buckingham Place Senior Affordable Housing (Buckingham Place) project. Our objective was to determine whether HUD funds awarded to Los Angeles and administered by the City were administered in accordance with HUD’s requirements for the HOME program as they relate to a specific subrecipient. We found the City improperly allocated HOME program funds for the Buckingham Place project to its subrecipient without adequate controls in place to ensure that HOME program requirements were met. This condition occurred because the City lacked written procedures and had insufficient monitoring controls in place for projects not processed and administered through its Affordable Housing Trust Fund Unit. We recommend that HUD require the City to provide documentation supporting the eligibility of the $8.5 million HOME funds investment for its proposal to complete the one partially-completed building and have it ready for occupancy within two years of the date of this report, or repay the funds from nonfederal sources. In addition, the City should establish and implement written procedures for projects administered by its subrecipients that are not processed through the Affordable Housing Trust Fund Unit.