St. Louis’ Office of Community Development was criticized for awarding two contracts worth $1.4 million without accepting bids by the U.S. Department of Housing and Urban Development after an audit.
The HUD Office of Inspector General says the city needs to support that the contracts were awarded at a reasonable cost or repay the U.S. Treasury “any amount determined to be unreasonable” using non-federal funds.
St. Louis also was cited for providing incomplete job and sub-recipient information on its stimulus money quarterly reports. It was late on two of those reports.
The HUD OIG said it audited this city department because it received the most CDBG funds in Missouri, and was ranked highest on a risk assessment.