When 'Partners' Attack! City Sued Over Breach of Community House Contract

Summary

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When financial problems arose with the management of Community House, the board asserts it was not notified by the city to change directions. "Community House, Inc. did have issues," said Community House's attorney Howard Belodoff. "But they had reformed the staff and acquired a new director, grant writer and elected a new board president to reconstitute the board. They had done everything to make changes. But the city offered no help and in fact it did everything it could to be an obstacle."

"Once Community House hired the new director and new board, they were on their way to making things right," said Jill van Heel, the secretary of the board of directors of Community House and president of the Boise/Ada County Coalition for the Homeless. "But for whatever reason, the city decided they wanted out of the agreement. The city chose to take Community House over [in 2004]; this wasn't Community House saying, 'We need you to help.'"

When the city transferred assets of the shelter in 2004, it signed a new operation agreement that included a section dealing with a roughly $600,000 outstanding loan obtained for the shelter's first building costs. In this document, the city said it would assume this loan, which it hasn't yet. According to a September 2005 letter from the Federal Home Loan Bank of Seattle, Community House, Inc. is considered the loan holder. But according to the Memorandum of Understanding, "Community House shall have the exclusive right to continue to manage and operate the building" if the bank hasn't released the board from the loan.

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When 'Partners' Attack! City Sued Over Breach of Community House Contract

In a further development of the debacle surrounding the embattled homeless shelter Community House, BW has uncovered a lawsuit filed in federal court by the shelter's board of directors against the City of Boise. Among other violations, the lawsuit charges that the city breached its ...

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