Opinion ID: 176682
Heading Depth: 3
Heading Rank: 2

Heading: The City Assumes Management of Community House

Text: In mid-2003, while the City and CHI were still trying to work out their problems, the BRM approached the City about purchasing Community House, and the City requested that the BRM submit a proposal. On August 1, 2003, the BRM tentatively proposed to operate the building as an emergency homeless shelter; it would also contain single residency occupancy and transitional apartments that would be occupied by those in a year-long substance abuse recovery program or employment program. The BRM stated it would run Community House as a men's shelter, pursuant to its policy of housing men and women separately. On February 2, 2004, Watson wrote to the City on behalf of CHI, requesting $50,000 in short-term financial help to make it through the month. On February 6, Jan Blickenstaff, the Manager for the City Department of Housing and Community Development, responded to Watson's and CHI's request. Blickenstaff informed CHI that the City had concerns about CHI's solvency, reporting, fiscal controls and compliance, and delinquent audits and reimbursement requests, and he asked CHI to share with the City its plan for solvency. In order for the City to consider the request for funding, Blickenstaff stated, the City would need: 1. A business plan that includes cash flow projections and a sources and uses statement for at least the next sixty days.... 2. A disclosure of current payables and delinquency status including insurance, utilities, payroll, taxes, workman's comp insurance, etc.... 3. The staffing plan with position descriptions for the new employees and their résumés. [Please note that fundraising is not an eligible federal grant activity.] The City and CHI eventually agreed that replacing CHI with a short-term, third-party manager of the building would help keep Community House open. That interim manager would be the Salvation Army. On February 19, 2004, the CHI Board voted to support the interim plan and to turn over to the City overall operational responsibility for Community House. The City agreed to bear all costs and liabilities not covered by the interim management associated with the operation and upkeep of the facility during the interim period. By signing a March 18, 2004 letter from the mayor's office recounting these agreements, Watson agreed that any rents received during this interim period would be paid to the City as reimbursement for the approximately $55,000 that the City had paid to cover CHI's expenses. The CHI Board also agreed with the City that a committee should be formed to provid[e] input and expertise in developing a permanent plan for management of the facility. This interim solution, however, was short-lived. The Salvation Army did take over control of Community House but, for reasons unclear from the record, left after only two weeks. For the next year and a half, the City itself operated the facility, spending around $80,000 per month to keep Community House up and running.