Sheltered Inc. says agencies unjustly pulled funds

United Way says funds reduced in response to other needs; Job and Family Services says funds pulled after violations found in spending.

Credit: Bill Lackey

Credit: Bill Lackey

The leader of a Springfield nonprofit that oversees an emergency shelter for people experiencing homelessness — which has reduced services following the loss of funding from the county and other sources — said the organization has retained legal counsel to help prove the pulling of funds was not justified.

Elaina Bradley, executive director of Sheltered Inc., said in an email when United Way of Clark, Champaign and Madison Counties denied grant funds for the shelter in 2022, its operations were “negatively impacted.” She also said a recent report issued by the Department of Job and Family Services that preceded the cancellation of funds from the county contained inaccuracies.

“There is no lawsuit presently at issue, but Sheltered is prepared to fully defend against any claims brought, and to fully exonerate itself in court if need be,” Bradley said. “In the meantime, Sheltered remains devoted to its mission and will continue to serve the underprivileged and those facing homelessness in Clark County to the best of its ability.”

Clark County officials said in March the termination of a portion of a $700,000 contract — of which about $495,000 was reimbursed — through the Ohio DJFS’ TANF fund with the organization happened after “multiple violations” in regards to the reimbursement of funds were found following a review.

Prevention, Retention and Contingency, or PRC, is a program through Ohio DJFS that provides work support and other services to low-income families. This program is funded through the Temporary Assistance for Needy Families (TANF), a federally funded program.

“The most glaring [issue] was the lack of proper [Prevention, Retention and Contingency] applications for recipients of services,” wrote Clark County DJFS director Ginny Martycz in a memo asking the county to terminate its contract. “Additionally, it appears there were requests for reimbursement for items paid for by other funding sources.”

Bradley said Sheltered Inc. “unequivocally denies the allegations made in the report and looks forward to proving its case in the near future.” She said the nonprofit has retained Taft Stettinius & Hollister LLP to help it do so.

Sheltered Inc. gave DJFS all documentation asked of it and was “fully transparent,” Bradley said, but the report is “full of inaccurate and/or false statements and draws conclusions that lack any form of a factual basis.”

“Sheltered attempted to open up a dialogue with the Department (of Job and Family Services) to discuss these issues but the Department failed to engage, instead using the unsubstantiated and inaccurate report as an opportunity to terminate Sheltered’s contract with the County,” Bradley said in the email. “Sheltered is disappointed in the Department’s actions and decisions and will vigorously defend itself.”

50 reimbursements questioned

Martycz told the Springfield News-Sun the DJFS never received a request to meet from Sheltered Inc. and she believes Bradley has met with the county commission president and county administrator. She said legal representatives for the county and Sheltered Inc. have met as well.

“While the issue is still in a legal review process, the department has no comment on the particulars,” Martycz said in an email.

Martycz provided a report detailing 50 reimbursements from DJFS to Sheltered Inc. from July 2021 to September 2022 that it said did not qualify for PRC funding or asked for more money than the nonprofit appeared to need. In one case, the report states that, in September 2022, 63 Speedway gas cards totaling about $900 were purchased with 41 recipients listed, and two being eligible for PRC.

Since the nonprofit’s contract was ended in February, one of its two emergency shelters was closed, staffing was reduced, services at low-income Woodford Apartments were ended and the remaining emergency shelter is closed from 8 a.m. to 8 p.m. daily instead of being open for 24 hours.

Bradley said Sheltered Inc. is working with the Springfield Metropolitan Housing Authority, which owns the Woodford Apartments and had subleased them to the nonprofit on a month-to-month basis, and the Nehemiah Foundation to help the 27 residents move to permanent housing.

She said the organizations have assisted with moving, finding places to go and given supportive services “to ensure no one is misplaced and cycles back into the community’s homeless system.” Bradley said they hope everyone who lived at Woodford gets into permanent housing by the end of June.

Local organizations, like the Salvation Army and OIC, are working to fill the gap in services caused by less shelter space and daily closures at Sheltered Inc.

Requests to United Way

Bradley said United Way denying emergency grant applications for 2022 created an “operating deficit” of more than $121,000. She said funds for 2023-2024 from United Way were also denied.

Sheltered Inc. appealed the loss of funds in 2022, which United Way told them was due to a 59% shortfall of requests received and those they could fund, Bradley said.

United Way executive director Kerry Pedraza said the organization awarded about $20,000 to Sheltered Inc. for permanent housing in 2022. It had requested $167,000 in total for permanent and emergency housing.

Pedraza said United Way gave $22,000 to Sheltered Inc. for the 2023-2024 cycle, which, while not being as much funding as requested due to a less successful campaign last year, the funding will still address homelessness and help with supportive housing. She said all funding decisions are made after thorough reviews of proposals.

Pedraza said that Sheltered Inc. has received $104,063 of funds over the past several years, facilitated by United Way which is received from the Federal Emergency Management Agency for the Emergency Food and Shelter Program. She said the organization received funds from this source in the most recent cycle that must be expended by October 31.

The Springfield City Commission in April approved an up to $1.34 million agreement with Dayton-based nonprofit Homefull to provide housing, health, access to food, employment resources and more, a deal initially intended to go to Sheltered Inc.

The city plans to use the Executive Inn site as a non-congregate shelter while it brings the Villager Inn space back online. The temporary shelter will then be phased out, according to the city.

Bradley said that with the loss of funding and support, Sheltered Inc. requires community aid to continue serving people experiencing homelessness. Donations can be made to www.thesheltered.org or by calling the nonprofit at 937-521-1071.

“Sheltered, Inc. does not have the necessary resources to help all of those that need our help. We must get help from the community to address the increasing need and reopen the 24-hour emergency homeless shelters that have provided our community a vital service for over 30 years,” Bradley said.

About the Author