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Housing partnership suspended

An audit finds a nonprofit agency owes Tampa more than $750,000 from a home loan assistance program.

By JUSTIN GEORGE
Published January 19, 2006

TAMPA - A nonprofit agency that partnered with the city to help low-income residents buy homes failed to repay the city more than $750,000 it owed over the years, a new audit shows.

For several years, Tampa United Methodist Centers worked with the city, handing out mortgages, while the city used federal and state money to help people with down payments and mortgage payments.

When those people sold or refinanced their homes, the agency was supposed to return to the city the down payments the homeowners had received.

But as a Tampa business and housing development worker combed through records of these transactions last year, she found some indicating the agency hadn't returned the money. The city ordered an audit of all records.

That audit, released Wednesday, shows that Tampa United Methodist Centers owes Tampa $762,157.

"We do hope it could be resolved," said Cynthia Miller, director of the business and housing development department, "but we do expect to have it repaid."

Once paid, the money can be returned into down payment assistance programs and other affordable housing projects, but not with the Methodist Centers, whose partnership with the city has been suspended. If the city doesn't reuse the money, it will have to return it to the Housing and Urban Development Department.

Carol Porter, director of client relations for the Tampa law firm representing Tampa United Methodist Centers, said the agency was negotiating with the city over the bill until the audit suspended talks. Now, she said, negotiations can continue.

She said the agency contests the amount due.

That may be true, Miller said, but the contested amount adds up to less than $30,000, according to a meeting between both sides two weeks ago.

"Not to the penny, but they were in agreement with the number we came up with," Tampa acting internal audit director Wayne Boytim said.

According to a breakdown of the bill:

The agency didn't remit $643,720 to the city after 11 mortgages were paid off following sales or refinancing.

Mortgage payments totaling $98,939 haven't been remitted to the city.

The city needs to be reimbursed for property taxes or attorney fees on four properties totaling $8,771 once those properties are sold or refinanced.

The agency borrowed $10,727 in state affordable housing funds to buy some property. The organization should reimburse the city after sale or mortgage refinancing of the property.

Also, the audit says, the agency received title to a $45,576 home whose defaulted mortgage the city purchased. Tampa United Methodist Centers hasn't paid the city for the uninsured property, which burned down.

Tampa United Methodist Centers, which is affiliated with the General Board of Global Ministries of the United Methodist Church, dates back to the late 1800s. It runs seven major programs, including Housing Management Services, which builds affordable homes, helps people obtain loans and provides credit counseling, according to Guidestar.org, which tracks nonprofit organizations.

IRS financial forms show the agency took in $9.7-million and spent $9.6-million in 2003, which are the latest numbers publicly available.

[Last modified January 19, 2006, 01:48:21]