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.



                                *   *   *   *   *