City fails to pay Norfolk nonprofits more than $400K over 18 months

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NORFOLK, Va. (WAVY) — Local nonprofit executives say the City of Norfolk owes six agencies more than $400,000 for services rendered in the past 18 months. 

The city is supposed to distribute the federal money to pay the programs, but it hasn’t been happening.

Some of the nonprofits involved are the LGBT Life Center, The YWCA and For Kids.

These organizations provide shelters for homeless children, victims of violence and people living with AIDS. 

“We’ve been working hard to render the services, we don’t want to turn anyone away, it definitely puts a strain on everything financially for us,” said YWCA Marketing and PR Specialist Qwayshawn Adams.

They’re all recipients of money that comes from the U.S. Department of Housing and Urban Development.

Stacie Wall-Beegle, the CEO for the LGBT Life Center, says they banned together at Tuesday’s city council meeting because nothing was resolved after multiple requests with the city manager’s office.

“From about March of 2018 to November of 2018 we haven’t been paid for the services rendered to domestic violence victims and sexual assault victims in the city, it totals about $23,000.” 

A statement from ForKids CEO Thaler McCormick says the City of Norfolk owes ForKids $100,000 from the last fiscal year and an additional $60,000 for the current fiscal year, which they cannot bill for because the city has not issued a contract.

McCormick added ForKids is continuously in overflow conditions at its shelter, as it works to serve hundreds of families every day in the community. She says that the city needs to be a committed and functional partner.

A statement from the city calls the situation inexcusable.

The city says it’s currently in the process of expediting the reimbursements due to the organizations. 

“Most of us receive funds from other jurisdictions as well, we don’t have this problem in other cities, so we’d really like Norfolk to up the ante when it comes to providing efficient systems for the nonprofit partners,” explained Walls-Beagle.

The city says immediate action was taken to move the HUD entitlement program to the Office of Budget and Strategic Planning.  

They say the program was understaffed and recruitment is now underway to fill positions as soon as possible. 

Walls-Beagle says one-on-one meetings have been arranged with city officials. 

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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