House Financial Services Committee Chairman Jeb Hensarling(R-Texas) grilled CFPB Director Richard Cordray Tuesday over the$114 million that the CFPB is spending on the renovation of theagency's leased building.

Referencing the CFPB's latest financial report, Hensarling askedCordray if updating the HVAC and electrical system in the buildingwould cost $145 million.

“No, and there have been different numbers here, and the mostrecent number that I've seen is $114 million. What I am told isthat about two-thirds of it is required in order to upgrade thebasic structure of the building,” Cordray said. “We bought a toughbuilding apparently, and when I say bought, we have leased a toughbuilding.”

Hensarling responded, saying, “You're renovating a building youdo not own, putting in almost as much as the entire value of thebuilding.”

He went on to list comparable real estate costs, quoting Cordray in a previous hearing, saying that the agency“not building some palace for the bureau over thelong-term.”

“Apparently your renovation cost is now $483 per square foot,which is triple the typical Washington, D.C., luxury commercialclass – a luxury renovation rate of $150 per square feet,”Hensarling said. “Three times as much as the DC metro area. You arespending more per square foot than the Trump World Tower, whichcame in a $334 per square feet.”

Hensarling also said the CFPB's building is more expensive than the Burj Khalifa,the tallest skyscraper in the world, located in Dubai, which costapproximately $450 per square feet.

“What on God's green earth is going on here? Explain to me, Mr.Director, why I shouldn't be outraged and why the American peopleshouldn't be outraged?” he asked.

“We do not own this building; it is an asset of the FederalGovernment; it is owned by the Comptroller of the Currency. We haveleased the building,” Cordray said.

“The renovations that are performed there will make the buildingserviceable for years to come, probably far outlasting the time ofour lease. The notion that we would try to build some palace thatwe don't even own or control doesn't make much sense to me,” headded.

Cordray also said CFPB's 1,000 employees have to vacate thebuilding during the renovation process.

“My guess is cheaper space could have been found in Reston andthe American taxpayers would have appreciated it,” Hensarlingsaid.

“We looked around at surrounding areas as well,” Cordrayresponded.

Rep. Patrick McHenry (R-N.C.) said the committee first found outthat the CFPB was spending $55 million on renovation, then $95million and now $150 million.

“It seems a little insane that you're spending $150 million oftaxpayer money, and spending $12 million in rent, and you're noteven going to be in it,” McHenry said.

“Look, there's much that I'm unhappy with about this situation.It's a building that's a deteriorated building,” Cordrayresponded.

“If I were a consumer, I would be complaining a lot about thatbuilding if I owned it,” he added.