Charlotte Halts Funding to Heal Charlotte Over Accounting Concerns
The city of Charlotte has suspended funding to the nonprofit Heal Charlotte, citing unresolved accounting concerns related to a $2.25 million grant from the American Rescue Plan Act.
Public records reveal the city flagged issues with recordkeeping following the conclusion of Heal Charlotte’s temporary housing program at a former Sugar Creek area motel in April. A July contract monitoring report indicated the organization failed to submit a required financial audit, produce two client files, and provide other necessary documentation. The city issued a letter on October 1st stating Heal Charlotte would remain ineligible for city funding until the issues were resolved. “The documentation submitted does not adequately address monitoring findings and concerns,” the letter stated.
During a recent city council meeting, Councilmember Tiawana Brown criticized the organization’s non-compliance, stating, “There’s a lot of other organizations that could’ve received that funding…They’ve been eliminated for a reason.” Councilmember LaWana Mayfield noted the situation highlighted the need for improved contract language and oversight of organizations receiving significant public funds, adding, “These are tax dollars and more than tax dollars, these are lives.” The program at the former motel ended in April, and just two months later, a mother and baby were found dead inside the building, now under investigation for alleged healthcare fraud. You can learn more about Emergency Solutions Grants from the Department of Housing and Urban Development.
Heal Charlotte founder Greg Jackson disputes the city’s assessment, claiming he has been transparent throughout the process and has provided all requested documents except for the audit, which he says will be costly to obtain. He maintains the organization housed over 170 people. Ursula Baker, a former participant in the program, expressed frustration, stating, “It just didn’t make sense…Even when we tried, we couldn’t get out. It feels like the system failed you.” The city is currently working to verify contract compliance and has not released information about other organizations facing similar funding restrictions. The City of Charlotte is expected to provide further updates as the review progresses.
