IRVINE : Shelter Agency Overcoming Scandal

Six months after a check-forging scandal rocked Irvine Temporary Housing, agency officials and city leaders express confidence that the charitable organization is slowly rebounding.

Though an investigation into the scandal continues, ITH recently held a successful fund-raising event and last week received four condominiums and $82,000 from the city. ITH officials point to both events as signs that the organization is regaining the public’s trust.

But some Irvine council members have qualified their support for ITH, which provides shelter for the homeless. At the same time the council allocated the condos, it also decided against awarding the organization $406,000 in federal community development funds.

Councilwoman Christina L. Shea said she felt uncomfortable about making the allocation while the Department of Housing and Urban Development continues to investigate whether any federal funds were misused by fired executive director Clyde E. Weinman.

Weinman was charged in November with forging board members’ signatures on agency checks and skimming at least $81,000 for his personal use. Weinman has pleaded not guilty to the charges.

A newly released audit of ITH books found no evidence that federal funds were misused. But because the city might be held partly responsible if the HUD probe does turn up improprieties, Shea said it was wisest for the city to withhold the grant.

Despite that, Shea and others agreed that ITH has significantly improved its accounting practices, which were criticized in the wake of the scandal as being lax and inadequate.

“Irvine Temporary Housing (now) has the strictest financial controls you are likely to find,” said Mark Simmons, president of ITH’s board of directors. “You never say never. But it would be very difficult for someone with illicit purposes to get money from us.”

Simmons pointed out that ITH has continued to provide temporary shelter at its 10 facilities without interruption during the scandal.

Simmons said he was encouraged by a recent charity benefit held at an Irvine comedy club that raised $4,500 for the organization. “People have come to us and asked how they can help,” he said.

Simmons said he doesn’t consider the council’s refusal to award ITH the $406,000 grant a setback. The four condo units that the city gave ITH makes up for the grant money, which would have been used to buy condominiums, he said.

Nonetheless, Shea and others vowed to keep a close eye on the way ITH is run. City officials will continue to monitor the organization’s bookkeeping techniques, she said.

“I think they’ve made an effort and that we can give them a second chance,” Shea said. “I think they’ve had a solid program. A lot of other nonprofit (agencies) faced with this just die. They’ve weathered the storm. . . . They still have a base of credibility in the community.”