We reviewed the City of Montebello’s (City) HOME Investment Partnerships Program (HOME) at the request of the U.S. Department of Housing and Urban Development’s (HUD) Los Angeles Office of Community Planning and Development (CPD). The request was based on findings contained in a 2008 single audit report and 2009 HUD CPD technical assistance report, which stated that the City did not fully comply with HOME program requirements in the ongoing development of its 2006 Whittier and 6th Street project. Our objective was to determine whether the City’s project was timely, supported with valid agreements, and accurately reported in HUD’s Integrated Disbursement and Information System (IDIS). We found that the City’s Whittier and 6th Street project was not timely, and the City committed and disbursed $1.3 million in HOME funds without the required written agreement. It also recorded the project as completed in IDIS although no project construction had begun. We recommend that the Director of HUD CPD require the City to repay the $1.3 million in HOME project funds, plus any interest due, and place the funds into the HOME U.S. Treasury account. In addition, require the City to implement written procedures and controls over the HOME program and obtain HUD information system training.