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We conducted a review of the City of Dallas' (City) Housing Opportunities for Persons with AIDS (HOPWA) grant. Our objectives were to determine whether the City and its program sponsors provided rent, mortgage, and utility assistance to persons who met program criteria and whether the 2005 and 2006 competitive grants provided transitional and replacement housing.

Generally, the City complied with program requirements to ensure that it and its program sponsors provided assistance to eligible persons. However, in violation of the HOPWA grant agreement, two program sponsors charged $24,521 in ineligible expenses, and one program sponsor did not support $138,979 in expenses. Further, the City provided $1,738 in excess short-term rental, mortgage, and utility assistance, and several client files lacked adequate supporting documentation.

We recommended that the Director of HUD's Fort Worth Office of Community Planning and Development require the City to (1) repay $26,259 to its HOPWA formula grant; (2) provide supporting documentation or reimburse its formula grant $138,979; (3) discontinue cable television payments, which will result in $16,235 in formula grant funds put to better use; and (3) strengthen controls to better comply with requirements.