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In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act), we reviewed the City of Houston’s (City) Homelessness Prevention and Rapid Re-Housing Program (Homeless Program). Our objective was to determine whether the City ensured that its Homeless Program complied with Recovery Act and U. S. Department of Housing and Urban Development (HUD) laws, regulations, and requirements.

The City did not ensure that its Homeless Program complied with Recovery Act requirements. Specifically, it did not ensure that subrecipients properly documented eligibility for 13 of the 16 client files reviewed. This condition occurred because the City did not provide appropriate guidance to the subrecipients or properly monitor their performance. As a result, it paid $59,274 in Homeless Program assistance for tenants whose eligibility was not adequately documented and inappropriately paid $300 directly to one tenant.

We recommend that the Director of Community Planning and Development, Houston, TX, require the City to (1) conduct quarterly onsite monitoring of its subrecipient agencies to ensure that they comply with Homeless Program rules and requirements and ensure that the agencies maintain adequate records of client eligibility, (2) provide supporting documentation for 13 participants lacking adequate documentation or reimburse its Homeless Program account $59,274 from non-Federal funds, and (3) reimburse its Homeless Program account $300 from non-federal funds for ineligible expenses.