Sheltered Inc. announced on Monday that it will file for bankruptcy and stop operating its Clark County homeless shelters and services by the end of May.
The nonprofit said in a statement that it has exhausted all avenues to continue serving the community and without reliable funding, the shelters have become unsustainable.
Serving those in need since 1990
Sheltered Inc. has been providing housing assistance since 1990, operating as a nonprofit providing "rapid exit" from homelessness through programs, supportive services and housing-focused assistance.
Those services included two homeless shelters, Norm's Place and Hartley House, which will cease operation on May 22. The final day of operations for the organization is scheduled for May 30.
“On behalf of the Board of Directors, I cannot express enough gratitude to the staff of Sheltered, Inc who have and continue to help our fellow citizens even in the face of closure of the shelters,” Sheltered Inc. Board President Ross McGregor said in a written statement.
The organization has historically been funded through partners, donors and government agencies including Clark County commissioners.
But after county commissioners sued Sheltered Inc. in 2024, a major source of funding for operations was cut. Sheltered Inc. said this lawsuit was over "misappropriated funds."
That lawsuit is ongoing and the nonprofit denies any wrongdoing, but McGregor said this dispute with the county is a major factor in shutting down operations at Sheltered Inc.
“Had the county agreed to mediation we could have easily and quickly resolved this," he said. "Instead, they opted to pursue unnecessary litigation that has ruined us financially and cost the county taxpayers dollars that could have been put to better use."
'Did they provide services to the people who qualified for that money?'
For over a decade, Clark County Commissioner Charles Patterson Patterson said county had been providing $250,000 to $275,000 annually to Sheltered Inc. through Temporary Assistance for Needy Families (TANF) grant funding, which can only be given to families who qualify.
"There's lots of other ways to become qualified, but if someone was qualified for Medicaid because of their lower income plus the individuals in the household, including children, then they would have potentially been eligible for that funding help," he said.
That funding is provided through the federal government which then goes to the state who disseminates the money to the counties.
Through this contract, Sheltered Inc. was able to use the funds up to a set limit per year as long as they completed qualification paperwork on each case.
But Patterson said when the county was being audited for its use of TANF funds, Sheltered Inc. was not able to provide the necessary paperwork.
"It's sort of like if a nurse gives somebody a shot, but then doesn't chart it, well did it really happen," he said. "Well, sure, the people got the shot, but we have no paperwork to prove what they got, when they got it, who gave it, etc. And so I don't think anyone was ever questioning whether Sheltered Inc. provided services with those funds. The only question is, did they provide services to the people who qualified for that money?"
Patterson said while Sheltered Inc. has provided services to the community in a proper and compassionate manner over the years, it was the county’s fiduciary responsibility to hold the organization accountable for not following paperwork guidelines.
"If one of our other contractors didn't do something properly to the tune of over half a million dollars that was going to cost the county, then the public would expect us to go to that vendor and say, 'Hey the state's asking us for over a half a billion dollars back because we didn't have the paperwork that you were required to do,'" he said.
Springfield leaders want to find new provider
In an effort to save Sheltered Inc. last year, the city of Springfield provided money that would keep its shelters going through the winter.
The city declined further comment but said in a statement that it’s negotiating with a new provider to continue those services.
“We thank Sheltered Inc. for its longstanding partnership in helping meet a vital community need,” said Community Development Director Logan Cobbs in a written statement. “Their work has touched countless lives over the years. While this news is difficult, the City has been proactively working to ensure continuity of services, and we are currently in contract negotiations with a new provider to continue shelter and homelessness support services for our residents.”
The city plans to share more details when it has them.
“The City of Springfield remains firmly committed to homelessness prevention and assisting residents facing housing insecurity," said Mayor Rob Rue in a written statement. “I commend our City staff for their tireless efforts in working through this challenge, identifying solutions and maintaining focus on protecting those who need help most."
