Local & Regional
10:41 am
Thu June 25, 2009

Tulsa Could Be Forced to Payback Federal Funds

Tulsa, OK – The City of Tulsa is in danger of losing more federal grant money. The way the funds, from the Department of Housing and Urban Development, were spent are being questioned by HUD. The city could be forced to repay an estimated $1.5 million.

This is the second time HUD has questioned city dealings in the last nine months.

One issue is nearly $300,000 in Community Development Block Grant funds given to Harold Jones Ministries to purchase property at 4600 North Peoria. The property was to have been used to create a youth center. However, two mortgages and a lien have now been filed against the property. Federal regulations prohibit the mortgages on CDBG property for five years after the transfer. Also, city officials say the purchase transition file is missing from its records, possibly misplaced in the move from the old city hall to the One Technology Center.

There are other questions regarding the old Evans-Fintube site near Archer and Lansing, north of downtown.

HUD sent the City-of-Tulsa a 16-page letter demanding answers to eight questions. The city is expected to reply by July 21st.