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We audited the Housing Authority of the City of Los Angeles’ Rental Assistance Demonstration (RAD) conversion to the Section 8 Project-Based Voucher Program.  We selected the Authority because review of RAD conversions was aligned with the goals of our annual audit plan and the Authority’s conversion included previously environmentally toxic land that was recently remediated.  The objective of our review was to determine whether the Authority administered its RAD conversion projects in accordance with applicable HUD requirements.  Specifically, we wanted to determine whether the Authority (1) executed appropriate written agreements, (2) ensured that project financing sources were secured, (3) ensured that the required environmental reviews were accomplished, (4) maintained separate books and records for the RAD conversion, (5) spent HUD funds for eligible and reasonable purposes, (6) followed occupancy requirements, and (7) obtained a capital needs assessment.

The Authority generally complied with RAD program requirements in the areas that we were able to fully review.  However, since the Authority’s conversions were in progress, we could not make a full assessment for all RAD program requirements. 

This report contains no recommendations.