Cash Squeeze Felt by Group Behind Irvine Shelter Plan

An Irvine group that brought national attention to the city with a plan to convert a vacant dog kennel into a shelter for homeless families may be forced to sharply curtail its program because of money trouble.

Officials of nonprofit Irvine Temporary Housing say that unless the group can raise $8,000 by Dec. 15, they may even be forced to close. If the organization raises the money, it still faces an uncertain future because it will have the same “cash-flow squeeze” in January, said Roy Werner, one of the group’s directors.

Werner said the troubles stem largely from new restrictions on how federal money can be spent. About half of the group’s annual $140,000 budget comes from the U.S. Department of Housing and Urban Development. Private donations make up the balance, including $17,000 from the Irvine Co.

New HUD Rules

In the past, it was left to Irvine Temporary Housing to decide how to spend the federal money, and at times, funds were used to pay for the program’s overhead, such as office expenses or the salaries of the group’s three employees.

But HUD has ruled that the grant money can only be used to provide housing and capital improvements in the program. Because most of the $70,000 raised privately this year has been spent, Werner said, the group faces a difficult choice of “either cutting staff or services” if it fails to come up with $8,000 by mid-December.

A city official close to the organization said Sunday that questions have been raised about high administrative and salary costs, but only in terms of increasing the number of people helped by Irvine Temporary Housing to spread costs over a broader clientele.

Irvine Temporary Housing Executive Director Jim Palmer declined to disclose salaries, but he said that about 20% of the organization’s $140,000 annual budget pays for fund raising and the full-time salaries of a counselor, himself and a part-time assistant. About 50% is spent on rent for clients, with the remaining 30% going for programs that offer food for families aided by Irvine Temporary, he said.

The agency’s small office is donated, Palmer said.

At present, the group keeps homeless families in five furnished apartments around the city. Rents are subsidized, and the locations are kept secret to protect the families’ privacy and prevent other tenants, who might oppose the program, from moving.

But the organization, with the strong support of three of the city’s five council members, including Irvine Mayor Larry Agran, is seeking to expand its program by converting a vacant portion of the Irvine Animal Care Center into a 40- to 50-bed shelter for homeless or displaced families.

Last month, HUD awarded the city and Irvine Temporary a $496,000 grant to remodel the kennel and operate the homeless shelter for five years, once it opens sometime next year. Federal officials have ruled, however, that the grant cannot be used for anything but the kennel conversion.

Therefore, the city and Irvine Temporary have applied to HUD for an additional $650,000 to purchase modular units that could be placed at the 20-acre animal-care site in the 15000 block of Sand Canyon Avenue. A decision on that request is expected early next month.

John Dombrink, another board member of Irvine Temporary Housing, said the group has come up with a scheme that would divide the kennel into five three-bedroom apartments. Each unit would have its own kitchen and bathroom. Those plans, drawn by a private architect for the group, go to the city staff next week for review.

Critics say the council’s decision last month to push ahead with a centralized homeless shelter at the city-owned kennel for stray dogs has angered many potential donors who have stopped giving in protest.

‘Money Is Out There’

“The money is out there,” said Councilwoman Sally Anne Miller, who voted against the kennel conversion. “But until the mayor and ITH (Irvine Temporary Housing) wake up and realize that the vast majority of Irvine does not want a centralized homeless shelter, they are not going to get another cent.”

Miller and others maintain that numerous donors were poised to contribute to the expansion of Irvine Temporary Housing’s apartment program until the council’s 3-2 vote Oct. 28 to turn the kennel, located on the city’s eastside, into a homeless shelter. Along with Agran, Councilmen Ray Catalano and Ed Dornan backed the project, but Miller and Councilman C. David Baker opposed it.

Michael Lennon, founder of Compassion Plus, a coalition of residents and Irvine business people seeking private money to expand Irvine Temporary’s current program, said the city “has made a decision and will have to live with the consequences.”

Lennon would not disclose how many donors his group had lined up or who they were. He said those individuals and groups are afraid to come forward and “take a position against the mayor. . . . There is a fear factor.”

‘Play Games’

Agran said Lennon and his group continue to “play games.” He said Compassion Plus has been pulling a “fast one on the city, leading us to believe that this vast reservoir of funding is drying up when in fact it has never been there--ever.”

Agran, one of Irvine Temporary’s original directors, said the group has always had trouble raising money and has been in financial trouble in the past. “I’m confident they can weather the storm,” he said. “Every charitable group goes through some lean times.”

However, the city has no plans to bail the group out, Agran said. He said the city’s participation in the kennel-conversion project is evidence that Irvine is already doing its fair share to help the homeless.

Werner said 4,000 fliers were mailed to residents and business people last week soliciting donations. By week’s end, about $4,000 had been raised. The group also plans a telephone blitz, calling residents tonight and on Nov. 30.