MORGANTOWN — The financial situation facing Bartlett Housing Solutions is far more dire than anyone really knew — including, apparently, the nonprofit’s board of directors.
In an email sent to the Monongalia County Commission and the city of Morgantown, Board President Nick DeMedici explains that without $300,000 the organization will be forced “to close in its entirety in less than 60 days.”
That would include its West Run facilities and the triage shelter in Hazel’s House of Hope, which is already scheduled to shut down by the end of next month.
“While the board was aware we were in financial despair, we did not realize how serious until recently,” DeMedici wrote.
Included in the email is a list of past due payables to 23 creditors totaling more than $745,000. That number includes a matured line of credit for $250,000 and a $250,000 collateral loan, both with Clear Mountain Bank.
It also includes $88,000 in back rent to Morgantown Community Resources, the nonprofit board that acts as landlord for Hazel’s House of Hope.
“We don’t have the funds to cover payroll, let alone address the above,” he wrote, noting employees are currently without healthcare and are owed money into their retirement accounts.
On Friday, DeMedici told The Dominion Post the board was able to get enough money from the West Virginia Housing Development Fund to cover employee paychecks and healthcare benefits this week.
Further, Clear Mountain Bank has agreed to freeze the nonprofit’s account for 90 days, temporarily stopping the accrual of interest and the need to make payments.
In mid-March, the board of directors fired former executive director Keri DeMasi after more than 20 years with the organization.
DeMedici told The Dominion Post that up until about eight months ago, there wasn’t any consistent accounting and/or bookkeeping in place going back to “around the time of COVID.”
“Yes. I would agree with that statement,” he said when asked if the board of directors is not also responsible for this situation. “There were not financials being reported to the board. We were aware of that. We had a general understanding, but we didn’t have the nuts and bolts of it. We just knew it was bad. Without having a bookkeeper and an accountant on staff, it became exponentially worse.”
As far as getting out of this hole, he admits it’s going to take a lot of things breaking the right way, but there are significant irons in the fire.
Among those, DeMedici said, are recent conversations between BHS leadership and the Milan Puskar Foundation.
“At this point, that’s all I can say. They’ve been very good conversations. I’m not aware if there will be any type of aid coming from them, but they’ve been in our discussions very supportive of us and the situation we are in,” he said.
Two, BHS has a significant asset in the form of its former shelter facility at 1110 University Ave.
According to DeMedici, that building will soon be listed for sale with an initial asking price of $595,000.
Lastly, in the event Bartlett Housing Solutions ceases to exist, DeMedici said there is “a partner” in place that will step in to run the housing units on West Run Road. Those facilities are currently home to 70 people.
While he wouldn’t say who that partner is, he noted, “They did reassure me that those folks will not be unhoused, and West Run will continue to operate.”
As for the future, DeMedici said his long-term outlook is “very positive.”
It’s getting to long term that’s going to be the issue.
“I feel that if we survive in the short term, we will be great in the long term, but, again, there’s a whole bunch of things that need to happen,” he said
“I don’t think it’s a secret that we’re in bad shape and people are really stepping up to do whatever they can. I just want to say thank you to all of them. I look forward to the future once we navigate this.”
TWEET @DominionPostWV
