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The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General audited the HOME Investment Partnerships (HOME) program of the City of Kansas City, Kansas (City). Our objective was to determine whether the City followed HUD requirements when establishing and managing HOME projects.

We concluded that the City did not obtain adequate environmental reviews, improperly awarded HOME construction projects, improperly charged employee costs to the HOME program, and allowed contracts that did not include required provisions. In addition, the City did not verify the eligibility of community housing development organizations (CHDO) before awarding them HOME funds, nor did it spend program income and recaptured funds before drawing down additional funds.

We recommended that HUD require the City to properly support or repay to its HOME program more than $400,000 in unsupported costs; repay more than $17,500 in ineligible costs; and obtain environmental review, procurement, contract content, and CHDO eligibility training.