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The City of Fort Worth (City) is scheduled to receive $10.85 million in Recovery Act funding. The Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued a memorandum on the City’s capacity to administer these funds. We reported the City had a history of failing to meet regulatory requirements in an efficient or timely manner. The City needs to strengthen its capacity to adequately administer recovery funding to include improving its procurement activities and undertaking only prudent projects. We recommend HUD place special conditions on the City’s grants, requiring the correction of past deficiencies and including plans to monitor the additional funding, thereby ensuring better use of more than $4.5 million.