We audited the Homelessness Prevention and Rapid Re-Housing Program (HPRP) of Special Services for Groups (Special Services) based on the results of a separate audit of the City of Los Angeles Housing Department (Department). Special Services is a subrecipient of the Department’s HPRP. HPRP is part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), and auditing Recovery Act programs is one of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) audit priorities. Our overall audit objective was to determine whether Special Services administered its HPRP in accordance with the Recovery Act and other requirements. Special Services did not always administer its HPRP in accordance with the Recovery Act and other requirements. We reviewed 30 participant files and determined that Special Services approved HPRP assistance for an ineligible participant and 25 participants whose eligibility was not supported. As a result, we questioned the use of $53,931 in HPRP assistance provided to these participants.

We recommend that the Director of the Los Angeles Office of Community Planning and Development require Special Services to (1) reimburse its HPRP $2,300 from non-Federal funds for an ineligible participant whose income exceeded HUD requirements; (2) provide supporting documentation for 25 participants lacking adequate documentation or reimburse its HPRP $51,631 from non-Federal funds; and (3) establish and implement sufficient HPRP eligibility and documentation policies and procedures for income determinations, homelessness, financial resources, support networks, participant recertification, and subsequent housing options.