Ulster County’s Health, Human Services and Human Rights Committee on May 8 approved a temporary waiver to permit a nonprofit vendor that had failed to file a required Form 990 to continue providing services and receiving county payments while it corrects the delinquent filing.

Committee members said the waiver follows a policy the legislature adopted last year to encourage nonprofit compliance and gave the county a tool to require fixes; the committee approved the waiver after county officials said the vendor expects to file the missing Form 990 before the end of the next month.

Deputy executive James (presented as James) told the committee the resolution responds to “the first entity that fell out of compliance since” the prior resolution passed. He said turnover at the nonprofit left compliance unresolved and the county is discussing a “cure policy” with the comptroller and the resolution’s sponsor.

County staff said the nonprofit is expected to be back in compliance in about a month and that the services at issue included daily food deliveries to people in emergency housing. The committee discussed whether granting a waiver so soon after passing the prior resolution (resolution 78) would undercut the enforcement signal the earlier policy was intended to send; some members said the earlier policy has been effective in identifying problems and bringing nonprofits back into compliance.

Legislator comments clarified what “compliance” meant in this context: an agency had the obligation to file a Form 990 or a timely extension. A committee member described the Form 990 as “essentially [a nonprofit] tax return.”

The committee’s motion to adopt the waiver resolution was moved by Legislator Carmen and seconded by Legislator Collins; the committee recorded the motion and approved it during the May 8 meeting.

Actions recorded: the committee moved to adopt resolution 226 (waiver for nonprofit reporting noncompliance); mover: Legislator Carmen; second: Legislator Collins; outcome: approved by the committee during the May 8 meeting. The original resolution referenced a two‑thirds legislative vote for waivers as part of the prior policy adopted last year.

Authorities referenced in committee discussion included the prior local resolution (resolution 78) that established the compliance review process; committee members also referenced the federal/state Form 990 reporting requirement for nonprofits when explaining the compliance problem.

Committee context: staff said the waiver would allow the county to pay the vendor immediately and to sign new contracts while the vendor cures the filing; staff emphasized they are working on formalizing a cure process and the comptroller is involved in discussions.