Norm’s Place, the women and family shelter, is expected to close in March, Sheltered Inc. told the city, according to a city press release.
Sheltered Inc. administrators said the closure was due to the loss of financial support from Clark County and its lawsuit against the nonprofit.
Last year, Clark County filed a civil lawsuit against Sheltered Inc. for breach of contract and is seeking reimbursement of more than $500,000. This lawsuit stems from a county allegation that the nonprofit mismanaged funds for Temporary Assistance for Needy Families (TANF) or Prevention, Retention and Contingency (PRC) services, which provide work support and other services to low-income families.
The lawsuit alleges that Sheltered Inc. did not provide proper documentation for reimbursements and submitted invoices for expenses not allowed under the program, including staff salaries, utilities, rent, insurance, office supplies, gasoline, facility maintenance/repairs, contracted personnel, hotels, gas cards, bus passes, meals and birth records.
The issues were reportedly found through a state audit of the Department of Job and Family Services.
Sheltered Inc. has repeatedly denied any wrongdoing.
“We cannot continue to serve our mission to provide shelter and social service support to our most needy community members without the ability to pay staff and maintain the physical structures people rely on for shelter,” Sheltered Inc. Board Chair Ross McGregor said. “Our dedicated and selfless staff has maintained our mission for as long as possible with reduced resource. Sadly, many of them will now face unemployment and dire financial circumstances themselves.”
Clark County Commissioner Melanie Flax Wilt said it is “a sad day for Clark County that politics have gotten in the way of caring for the people in Clark County,” also pointing to the abrupt closure of the non-congregate shelter operated by Dayton nonprofit Homefull last summer, which she said came as a result of some city leaders, both in city government and not, insisting that Sheltered Inc. be the only homelessness provider in Springfield.
Flax Wilt said Sheltered Inc.’s claim that the county has “spurned” resolution efforts including court-supervised mediation is false. She said the county has requested records that the nonprofit has failed to produce through both “friendly conversation” and the court discovery process.
“It really is laughable that they want to say that we’re not the ones coming through on this,” Flax Wilt said.
Sheltered Inc. became the sole shelter provider again after the city and county terminated their contracts with Dayton-based homelessness nonprofit Homefull, which was operating the Executive Inn family shelter.
On Aug. 5, 2024, the city held a sometimes contentious emergency meeting to vote whether to fund Homefull’s continuing operation of the shelter at a cost of up to $1,047,436 of federal funds, with the option to renew for three more one-year periods. City commissioners voted down the proposal 3-2.
Families were made to abruptly leave the following day and OIC worked toward placing individuals in Sheltered Inc. shelters or temporarily in a hotel.
The Executive Inn is now up for sale by the city and has reportedly sustained significant damage while vacant.
Because the city now has only one provider, the community has limited access to TANF dollars, according to the city.
City leaders were not consulted before Sheltered Inc.’s decision and are working with the nonprofit, according to a release. Community Development Director Logan Cobbs said the city is exploring solutions.
“Our focus is on collaboration and ensuring that no one in Springfield is left without a safe place to stay,” Cobbs said.
Mayor Rob Rue said in the release he has directed City Manager Bryan Heck and Cobbs to work with partners “to ensure that the focus remains on families and individuals that are directly impacted by this devastating decision.”
“I am simply heartbroken,” Rue said.
According to the city, Sheltered Inc.’s men shelter could stay open through March if $125,000 is raised, but a “permanent closure remains likely.”
The county and Sheltered Inc. began discussions in 2023 about the alleged mismanagement of funds after it terminated a portion of a $700,000 contract with Sheltered Inc. — of which about $495,000 was reimbursed. Flax Wilt said the county waited more than a year to take the matter to court, wanting instead to work things out through conversation.
“There has been ample time to resolve this with transparency and providing the information that’s been requested,” Flax Wilt said.
Flax Wilt said she was encouraged by many in the community coming together to support those experiencing homelessness after the closure of Homefull created a “ripple effect.” She specifically pointed to the Nehemiah Foundation, St. Vincent de Paul and OIC of Clark County.
“We’ve seen the community come together and try to work on the issue; what we’re lacking is leadership in a nonprofit whose mission it is to help with homelessness and bring people together to rally around that topic,” Flax Wilt said.
She said she had hoped Sheltered Inc. would “get back on solid footing” and that this decision may help it “move in that direction.”
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