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<\/p>\nThe\u00a0U.S. Department of Housing and Urban Development has placed the city of Tallahassee\u2019s multi-million dollar program to reduce lead paint in older housing on \u201chigh risk\u201d status and begun an audit over concerns including amounts paid to the contractor.<\/p>\n
HUD filed an amendment to its $4.4 million grant to the city of Tallahassee in a document the city provided May 8 to the Tallahassee Democrat.<\/p>\n
\u201cThe purpose of this amendment is to designate the city of Tallahassee Lead Hazard Based Paint\u00a0Control\u00a0grant as \u2018High Risk,\u2019 \u201d the notice says. \u201cTherefore, specific conditions are hereby imposed.\u201d<\/p>\n
Assistant City Manager Christian\u00a0Doolin\u00a0emailed city commissioners, the top four appointed city officials and the executive team about problems with the grant program in an email the same day labeled \u201cUrgent Update.\u201d<\/p>\n
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Exterior shot of Tallahassee City Hall.<\/p>\n
Doolin\u00a0wrote that he was notified a week earlier that HUD was in the process of putting the grant on high-risk status.<\/p>\n
\u201cI immediately began investigating the matter and based on my findings I have suspended all program activity,\u201d\u00a0Doolin\u00a0wrote.<\/p>\n
Doolin\u00a0wrote that HUD raised concerns about \u201ccontractor expense justification\u201d and \u201cunit eligibility for work performed.\u201d\u00a0<\/p>\n
\u201cI have provided HUD requested documentation including contractor certifications, assessments, outreach coordination, procurement and budget information and incoming eligibility verification required to complete HUD\u2019S review,\u201d he wrote.<\/p>\n
He wrote that to date, about $1.6 million had been spent on the program including payments made to Chief Cornerstone Construction Company, Inc. He said HUD had reimbursed the city $1.03 million of those costs.<\/p>\n
\u201cI anticipate receiving HUD\u2019s high-risk letter shortly, which could result in HUD requiring the city to return a portion or all funds received for this program,\u201d he wrote. \u201cI continue to work with HUD to achieve the best possible outcome under the given circumstances.\u201d<\/p>\n
The federal agency’s action comes months after the Tallahassee Democrat began asking city officials about rumors of a HUD investigation involving a city program. In early February, Inspector General Dennis Sutton and city spokeswoman Alison\u00a0Faris\u00a0both told the Democrat they were unaware of any such matter.<\/p>\n
HUD cites ‘questionable cost reasonableness’ for new doors at Holton Street complex<\/p>\n
In a memorandum to the city, HUD said it designated the grant program as high risk \u201cbased on multiple compliance, performance and monitoring concerns identified through ongoing grant oversight and the monitoring visit conducted on March 2-3, 2026.\u201d<\/p>\n
HUD said the city grant program had inadequate outreach and program implementation and that its outreach strategy failed to meet grant requirements.<\/p>\n
\u201cProgram implementation has been largely limited to a single multifamily property, with minimal evidence of broader outreach efforts,\u201d the HUD notice says.<\/p>\n
The agency said such efforts would include coordination with local health departments, identification of elevated blood lead level cases and engagement with community partners like schools and healthcare providers<\/p>\n
\u201cThis limited scope of activity does not align with program intent or HUD guidance prioritizing at-risk populations, particularly households with children,\u201d HUD wrote.<\/p>\n
HUD also cited \u201cquestionable cost reasonableness\u201d and procurement compliance.<\/p>\n
\u201cBased on documentation reviewed during the monitoring visit, rehabilitation work conducted on\u00a0Holton\u00a0Street involved limited interventions (front door replacements) at an approximate cost of $8,400 per door,\u201d the agency said.<\/p>\n
HUD said the door costs \u201craise concerns\u201d under federal regulations and that the city hadn\u2019t provided \u201csufficient documentation,\u201d including procurement justification and verification of contractor licensing.<\/p>\n
City failed to meet grant benchmarks for a whole year<\/p>\n
HUD wrote that over the past four consecutive quarters, the city received scores of 69 or below, \u201cresulting in a failure to meet project benchmarks for an entire year.\u201d<\/p>\n
As a result, the city will be required to participate in biweekly meetings with the federal agency and submit corresponding status reports as long as it’s under the high-risk designation.<\/p>\n
The agency said each report must include updates on\u00a0subrecipients, contractors and partnerships along with strategies to \u201crealign the program with benchmark goals.\u201d<\/p>\n
\u201cThe Office of Lead Hazard Control and Healthy Homes (OLHCHH) will continue to provide technical assistance to support the city of Tallahassee in achieving compliance and improving program performance,\u201d HUD said.<\/p>\n
HUD funds grants to identify and mitigate lead-based paint hazards in housing built before 1978, it says on its website. The grants also are designed to support local workforce development and leverage private dollars for community investment that benefits low-income families.<\/p>\n
Chief Cornerstone Construction Company, Inc., a Tallahassee-based residential and commercial builder, is a longstanding city vendor that has been paid millions of dollars over the years, according to the city\u2019s online checkbook. The projects related to state-funded affordable housing and federally funded lead paint hazard mitigation. The company did not immediately return a phone call May 9 from the Democrat.<\/p>\n
On Feb. 5, the Democrat emailed HUD’s office of public affairs to ask about reports that the city of Tallahassee was under investigation by the agency and whether it could provide any information about the nature of any allegations. HUD referred the Democrat to its Office of Inspector General, which did not respond to a subsequent email.<\/p>\n
Contact Jeff Burlew at jburlew@tallahassee.com or 850-599-2180.<\/p>\n