Feds fine city of Tulsa $700K over CDBG grants

TULSA - The federal government fined the city of Tulsa more than $700,000 for issues related to Community Development Block Grants.

HUD distributes the grants to cities, like Tulsa, which then gives the money to sub-recipients for economic development projects.

When accepting the money, both the city and its sub-recipients must meet certain conditions, including spending the money in a timely manner.

One sub-recipient accepted money which was to be used for the Shoppes on Peoria project. Another accepted money for the expansion of the Rosa Parks Early Childhood Education Center.

According to HUD, the sub-recipients of both projects failed to spend the money in a timely manner and as a result the city is on the hook for the same amount of money it gave the sub-recipients, which is around $700,000.

To recoup the money, HUD will reduce the amount of money it planned to give the city by $700,000.

It is not the first time the city has been penalized for issues similar to this. In the last four decades, the city has lost $7 million in funding because of failure to meet federal requirements.

Councilors expressed frustration at a committee meeting on Thursday and called on the department that oversees the money for the city to improve u\its oversight of projects.