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Albuquerque Cuts Ties With Local Non-Profit Over Fund Misuse

The City of Albuquerque has severed its relationship with the Supportive Housing Coalition of New Mexico (SHCNM) after discovering that the organization misappropriated over $200,000 in city funds intended for housing assistance. This decision comes after a routine monitoring revealed that the funds, earmarked for helping clients pay their rent, were instead used for unauthorized administrative costs, putting many at risk of eviction.

Key Takeaways

Albuquerque cuts ties with SHCNM due to fund misuse.
Over $200,000 intended for rent assistance was misappropriated.
The city intervened to prevent evictions for over 100 clients.
SHCNM is drafting a repayment plan for the misused funds.

Misuse of Funds

The funds in question were part of the Housing Voucher program, which is designed to assist low-income residents in paying their rent. The city contracts with local non-profits like SHCNM to manage these funds and ensure they reach landlords promptly. However, SHCNM reportedly diverted these funds for other purposes, leading to significant delays in rent payments for clients.

According to Gilbert Ramirez, Director of Albuquerque’s Health, Housing & Homelessness Department, the organization was operating outside the scope of its contract. This mismanagement not only jeopardized the financial stability of numerous families but also strained the city’s resources as they scrambled to address the fallout.

City’s Response

Upon discovering the irregularities, the city took immediate action to mitigate the impact on affected clients. The following steps were taken:

Direct Payments to Landlords: The city began paying landlords directly to ensure that tenants could remain in their homes.
Identification of Affected Clients: City officials worked closely with SHCNM to identify all leases and tenant payments that were delayed.
Collaboration with Landlords: Over 60 landlords were contacted to resolve the payment issues and prevent evictions.

Ramirez emphasized the importance of these actions, stating, "We worked really closely with the organization to identify all the leases, all the tenant payments."

Future Steps

As the city moves forward, it is currently in discussions with other organizations to take over the contract previously held by SHCNM. This transition aims to restore trust and ensure that funds are used appropriately to support the community.

In addition, SHCNM is now responsible for repaying the misappropriated funds. They are in the process of drafting a repayment plan, which city officials report is progressing smoothly.

Conclusion

The decision to cut ties with SHCNM highlights the city’s commitment to accountability and the welfare of its residents. By taking decisive action, Albuquerque aims to safeguard its housing assistance programs and ensure that funds are utilized effectively to support those in need. As the situation develops, the city remains focused on finding a reliable partner to continue its mission of providing housing stability for its most vulnerable citizens.