SUPPORTS ITEM NO. 4 CS&B COMMITTEE AGENDA OCTOBER 24, 1996 ADMINISTRATIVE REPORT Date: October 10, 1996 TO: Standing Committee on City Services and Budgets FROM: Director of Community Services, Social Planning SUBJECT: Community Services Grant - Downtown Granville Tenants Association RECOMMENDATION A. THAT Council rescind approval of a 1996 Community Services Grant in the amount of $25,500 to the Downtown Granville Tenants Association; this funding to be transferred to the unallocated portion of the Community Services Grants budget, to be available for emerging issues or unforeseen circumstances. B. THAT Social Planning report back on organizational and funding options to meet the community develop-ment and advocacy needs of low income residents in Downtown South. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A and B. COUNCIL POLICY The Vancouver Charter stipulates that grants may only be given to registered non-profit societies. On September 30, 1993, Council adopted, as policy, the criteria and priorities which are used in assessing Community Services Grants applications. All grant applicants agree, in writing, to abide by any conditions placed on the grants by Council - failure to do so results in the grant not being paid. PURPOSE This report explains why the approved grant to the Downtown Granville Tenants Association should not be paid to them. BACKGROUND On April 2, 1996, City Council approved 87 Community Services Grants, including one to the Downtown Granville Tenants Association (DGTA). Council also placed a condition on the grant to DGTA, namely: " that the Board develop a plan by July 15, 1996 for strengthening itself and the organization as a whole. Payment of the 3rd and 4th instalments of the grant are subject to implementation of this plan, to the satisfaction of Social Planning. " Even though this organization was able to demonstrate early in 1996 that there was a functioning Board in place, and that an acceptable level of service was being provided, by May, it became increasingly difficult to determine who was on the Board, and what, if anything they were doing. Consequently, Social Planning placed a hold on payment of the first instalment of the grant (grants are usually paid out in four equal payments throughout the year). The work of the organization was being done by a volunteer Executive Director, with help from other community volunteers. They arranged a major fund-raising event with local bars in June which was to have netted $70,000, but seems to have raised only $20,000. However, on the strength of that effort, and (unrealistic) optimism about other funding coming available, the group moved to a new location, with much higher rent. One of the anticipated other sources of funding was the City's Housing Centre, which had jointly funded the position of a housing relocator with the Province, through BCHMC. The City had provided a 1994-95 grant of $18,505, but this was not renewed for 1995-96 because the minimum requirements of quarterly activity reports and financial statements had not been met. The organization had been advised on a number of occasions that funding would be provided as soon as these requirements were met, but the simple paperwork was never provided. So even though they were counting on the funding for the relocator, they did nothing to ensure that such funding would be approved. By mid-July, the conditions on the Community Services grant had still not been met, so payment of the second instalment was not approved by Social Planning. Staff were hopeful, though, that with the move and the money from the fund-raising event, the organization was making progress. At the end of July, the Director of DGTA approached the Community Development Unit (CDU) of the Provincial Secretariat Office for assistance. We understand that the CDU initially agreed to help out by covering the rent for up to three months and supplying a part time bookkeeper and a community developer worker. However, CDU staff say that this assistance was offered on the understanding that the organization was in reasonable financial health and that the Board would commit the assist with this rejuvenation process. DISCUSSION Within two weeks, the CDU discovered that all was not as it seemed. The CDU reported to DGTA's funders that the organization was more than $20,000 in debt, with absolutely no source of funds in sight. Three quarters of the debt was money payable to the Receiver-General as source deductions for employees. There was no sign of a functioning board, and no one, including those that were named as board members, could say who was or was not on the Board. Legally, the Board members registered in Victoria are responsible for the organization's debts, but the names on the list have not changed since the group was registered more than three years ago. The whereabouts of most of those potentially liable for the debt is not known. Finally, we have just learned that the Registrar of Societies has removed DGTA from the register of societies in good standing, as of September 13, because of a failure to report on its status for the past three years. Even if the debt was not an issue, and the Board had continued to function, the City could no longer provide grants to DGTA as the City Charter specifies that grants can only be given to registered non-profit societies. WHAT NEXT? The current lease for the DGTA office has a three-month cancellation clause. It is doubtful this month's rent can be paid. Social Planning is in discussions with other social service agencies in the community (several of whom are going to have to relocate in the near future) to try to arrange for them to move in and take over the lease. Once the dissolution of DGTA has been finalized, City staff will work with other, well-established community groups to try to develop a new organization which can carry out the community development and advocacy functions that are so badly needed in Downtown South. We are recommending a report back to Council once it is known what such an organization could look like and how it might function. CONCLUSION The Downtown Granville Tenants Association no longer exists as a registered non-profit society; therefore, previously approved City funding should not be paid out. * * * * *