Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Homelessness Grants topic
No spam. Unsubscribe anytime.
Council reallocates $1.77 million in youth-homelessness funds after a subrecipient withdraws; members press for reimbursement transparency
Summary
Council amended allocations for a $1.77 million Youth Homelessness Demonstration Program grant after My Daughter's Journey voluntarily ended its contract amid disputes over HUD-compliant documentation. Staff said HUD found documentation insufficient; council debated whether the city had sufficiently supported the small nonprofit and approved the reallocation.
Knoxville City Council voted to reallocate up to $1,768,642 in Youth Homelessness Demonstration Program (YHDP) funds after the subrecipient My Daughter's Journey ended its participation in the grant contract.
Kevin DuBose, director of Housing and Neighborhood Development, told the council that the subrecipient "pulled out of the contract" and staff and HUD reviewers found documentation and expenditure records insufficient for federal reimbursement. "These expenditures, we ran by HUD, and HUD told us no," DuBose said, explaining that the department could not approve reimbursement without further documentation.
Council Member Parker said she had received correspondence showing the nonprofit had submitted receipts and time sheets and she urged the city not to transfer funds before resolving outstanding reimbursements. "I don't see how we can approve transferring their funding to another organization until this matter is resolved," Parker said, raising concerns about perceived differential treatment of Black-led grassroots organizations.
Staff told council philanthropic dollars had been raised to bridge some of the nonprofit’s costs while paperwork was being resolved. Staff also said the nonprofit could still participate as a contractor to other subrecipients (for example, being reimbursed via the Community Action Committee) if documentation issues were addressed.
DuBose said the disputed amount was roughly $20,000 — less than 1% of the $1.7 million demonstration grant — and stressed the larger program had enrolled 64 youth with 28 exits to permanent housing so far.
After extended discussion, council approved the reallocation; the clerk announced the motion as carried with a tally the mayor summarized as 7 in favor, 1 opposed and 1 abstention. Council members asked staff to continue efforts to help the small nonprofit access other city funding routes and to document outstanding invoices and invoices processing steps.
The council emphasized HUD compliance requirements drive reimbursement decisions and that the city had attempted technical assistance and additional support before the subrecipient ended the contract. The resolution authorizes the mayor to execute documents needed to modify prior allocations in line with HUD rules and program goals.
