We audited the Tacoma Consortium HOME Investment Partnerships Program as a result of a risk assessment performed by HUD-OIG Region IX. Our objective was to determine whether the Consortium complied with HOME requirements, laws, and regulations with respect to the homeowner rehabilitation program and HUD procurement regulations. The Consortium generally administered HOME in accordance with HUD requirements but violated HOME regulations when it drew down funds for a homeowner who was not low income, for a homeowner whose income was not adequately documented, for projects that were not completed to code, for luxury improvements, and for rehabilitation activities that were not compliant with HUD requirements or its own written rehabilitation standards. In addition, contrary to HUD procurement regulations, the Consortium did not perform an independent estimate or cost analysis to determine whether contract change orders were reasonable. We recommended that HUD require the Consortium to repay HOME from nonfederal funds $187,399 in ineligible costs, provide supporting documentation or repay from nonfederal funds the $248,214 in unsupported costs, and require the Consortium to implement policies and procedures so that its grant activities are carried out in accordance with applicable laws, regulations, and Consortium rehabilitation standards to put $263,458 in homeowner rehabilitation funds to better use over the next year.