Springfield Approves More Funding To Homeless Shelter Amid Lawsuit
BY JEFF SKINNER
SPRINGFIELD - The Springfield City Commissioners approved an emergency funding package their their Tuesday, December 16 meeting, to Sheltered Inc, which has been wrapped up in a County lawsuit due to misappropriation of funds from the Temporary Assistance For Needy Families, or TANF, support program. Questions loom on if the city is planning to for an alternative strategy should the shelter shut down.
At the Tuesday evening meeting, Springfield Commissioners approved an emergency spending package, authorizing the City Manager to enter into a Subrecipient Agreement with Sheltered, Inc. to provide CDBG funding for emergency sheltered operations at the Hartley House, in an amount not to exceed $65,700.00.
Much of the controversy surrounding this expenditure comes down to the recipient of the funds. Sheltered Inc, which has been embroiled in a lawsuit with Clark County since August 2024, where the county alleged the organization misappropriated funds associated with the TANF support program. While many outlets have been quiet on the specific allegations, public court filings specify the allegations.
According to the filing, found below, Interfaith Hospitality Network entered into a subgrant agreement in the amount of $700, 016.00 effective July 1, 2021 to provide Federal Temporary Assistance for Needy Family (TANF) dollars to provide assistance to needy families in Clark County. With those dollars, there are specific restrictions on what those dollars can be used for. According to the filings, Sheltered Inc utilized these funds in excess of $500,000 to purchase unapproved or restricted items such as bus passes for individuals exceeding the amounts of eligible recipients provided for. In short, funding was provided in excess to individuals who had either had their support services capped or exceeded approved eligible cost amounts or were purchased through unapproved vendors.
Additionally, according to the filing, Sheltered Inc used TANF funds for unapproved expenses such as purchases to Le Torte Dolci bakery in Springfield and Lee Ann's Dairy Delight. While bus passes are typically capped for recipients through TANF funding programs, transportation assistance is typically covered under TANF programming. It is difficult to understand why tens of thousands of dollars in artisan bakery goods and ice cream would be approved through TANF programming funds. These expenditures continued through 2021 and 2022 according to the court filings. The county is demanding documentation somehow verifying the expenditures are approved through the program or a reimbursement of funding in excess of $500,000. The latter is suspected to lead to a shutdown of the organization.
Members of the public questioned the rationale of the Springfield Commissioners for providing another large funding package to an organization already embroiled in a lawsuit for funding misappropriation, which will likely shut down the organization. However, at this time, there does not appear to be any other operational shelters filling the niche that Sheltered Inc does. The move comes as the Springfield Commissioners approved an incredibly lean budget for 2026, which included staffing cuts across multiple sectors.
Ross McGregor, board chair of Sheltered, Inc. appeared at the meeting to speak on the importance of the resolution to attendees and the commission.
“Just wanted to come and say thank you for what I believe is your intended action in this meeting which is to provide desperately needed funding to Sheltered Inc, in order to maintain our services through our most needed months of the year,” McGregor said. “It’s getting very cold and there is plenty more of that to come. Your funds will go a long way to ensuring we can keep the men's shelter, the Heartly House, open through March and perhaps even longer. We are pursuing everything we can to maintain operations we can for when they are most needed.”
Mc Gregor also made mention of the ongoing legal battle, though not directly.
“Not only are we facing the unnecessary headwinds that are against us right now, but we are also exploring other opportunities and scenarios that could collaboratively help keep a shelter available in the long term.”
The funding from the commissioners is part of the Community Development Block Grant Public Service and does come with its own restrictions on how the funding is allocated. In terms of operations, CDBG funds can be used for shelter operations, though these items are capped at 15% of the total CDBG expenditures. These items would include Maintenance, rent, security, and insurance, Utilities, fuel, and equipment, Food, furnishings, and necessary supplies and Staff support. Funding could also be used for a wide range of services for homeless persons, such as healthcare, job training, transportation, and counseling though these require an eligibility verification process.
As the Springfield City Commission has issued the funds, it would fall under the responsibility of the City Commission to ensure the funds fed into Sheltered Inc are used appropriately and monitored by conducting monitoring reviews (both desk reviews and onsite visits), reviewing documentation to confirm compliance, and taking appropriate action when performance issues or noncompliance findings arise.
This will mean the city must maintain sufficient records to demonstrate how the funds were used and the level of public benefit achieved. If it is found the funds provided are at any point misappropriated, it will be the responsibility of the City Commission to reimburse The Department of Housing and Urban Development for said funds. The Community Development Department typically monitors CDBG expenditures.
