U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.


The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed the American Recovery and Reinvestment Act of 2009 Community Development Block Grant (CDBG-R) Program of the City of St. Louis, MO. Our audit objectives were to determine whether the City complied with applicable Recovery Act requirements for CDBG-R funds and properly reported its Recovery Act activities. We found that the City did not comply with applicable Recovery Act requirements for CDBG-R funds and did not properly report its Recovery Act activities. Specifically, it (1) approved contracts that did not comply with Federal procurement requirements, (2) did not adequately enforce Davis-Bacon Act or Section 3 requirements, and (3) reported incomplete and inaccurate information. As a result, the City used CDBG-R funds for unsupported expenses, failed to ensure that all contractors paid the appropriate wages and disadvantaged workers received economic opportunities, and did not have transparency in its reported use of Recovery Act funds. We recommend that HUD require the City to (1) support that more than $1.3 million in Recovery Act contracts awarded was granted at a reasonable cost and repay any amount determined to be unreasonable or ineligible, (2) review all payments to its contractors’ employees to determine whether wage restitution is owed, and (3) make any needed corrections in FederalReporting.gov. In addition, we recommend that HUD assist the City in receiving formal training on the issues identified in this report.