July 03, 2014

Fed IG: CFPB reno estimated at $215.8M

July 7, 2014 – A Federal Reserve Inspector General report responding to a request from House Republicans says "all-in" costs for the renovation of CFPB's headquarters are estimated, currently, at about $215.8 million.

The report was requested by House Financial Services Oversight and Investigations Subcommittee Chairman Patrick McHenry, R-N.C. McHenry and other committee members issued a statement criticizing the cost figures, claiming the bureau is spending more than $590 per square foot. They compare that with the $334 per square foot paid to build Trump World Tower, for example.

The Los Angeles Times, in a story Wednesday, noted the IG report gives no per-square-foot cost.

What the report does provide includes the following:

  • Of the $215.8 million in total costs, $145.1 million is obligated for construction, construction management and General Services Administration fees. Another $70.7 million is for other items, including, among other things, rent for swing space, moving costs and other renovation-related expenses.
  • As to CFPB processes related to planning and budgeting, the IG found that approval of renovation funding was not in accordance with CFPB's current policies for major investments; it said CFPB officials noted the decision to renovate pre-dated these policies.

CFPB is leasing its space from the Office of the Comptroller of the Currency. The space is the former headquarters of the Office of Thrift Supervision.