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Guilty - Berkeley Housing Organization Ripps Off the Homeless

by DOJ Watch Dog
Jubilee Restoration, a Berkeley non profit housing organization (In partnership with Resources for Community Development) pleads guildy to swindling funds from HUD that were meant to assist the Homeless! The housing organization gets 5 years probation and has to return $177,381.28 in restitution!


Guilty - Berkeley Housing Organization Ripps Off the Homeless

Berkeley -- Gordon W. Choyce Sr., a local Berkeley pastor and founder of Missionary Church of God, founder of Jubilee Restoration in Berkeley, founder of Missionary Recovery Center in Oakland, holder of numerous real estate adventures happening through Missionary Church Community Development Corporation (CDC), has been in hot water due to the illegal operations of his organization Jubile Restoration.

Jubilee Restoration, Inc. is a faith-based non-profit organization that was incorporated in the State of California in 1996, is located in Berkeley, and pleaded guilty to ripping off federal funds meant to assist Berkeley's homeless after facing prosecution, which was the result of a lengthy investigation by the U.S. Department of Housing and Urban Development, Office of Inspector General.

Gordon W. Choyce's familiy members, including wife Sharon, son Gordon Choyce II, and daughter Kara have all been involved in running Jubilee Restoration, and have all come under scrutiny by HUD for their shady practices in Berkeley.

More details below...

See May 13, 2009, Press Release below from the Department of Justice:

%%%%%%%%%%%%
May 13, 2009

http://www.usdoj.gov/usao/can/press/2009/2009_05_13_jubilee.guiltyplea.sentenced.press.html

BERKELEY FAITH-BASED, NON-PROFIT ORGANIZATION PLEADS GUILTY

Jubilee Restoration Sentenced For Submitting False Claims To Hud

Jubilee Restoration, Inc
Guilty Plea & Sentenced
Submitting false claims to HUD and was sentenced to five years probation and $177,381.28 in restitution

^^^^^^^^^^^^^^
FOR IMMEDIATE RELEASE
May 13, 2008
http://WWW.USDOJ.GOV/USAO/CAN
CONTACT:  Jack Gillund
(415) 436-6599
Jack.Gillund [at] usdoj.gov


BERKELEY FAITH-BASED, NON-PROFIT ORGANIZATION PLEADS GUILTY


Jubilee Restoration Sentenced For Submitting False Claims To Hud

OAKLAND, Calif. – Jubilee Restoration, Inc. pleaded guilty today in federal court to submitting false claims to HUD and was sentenced to five years probation and $177,381.28 in restitution, United States Attorney Joseph P. Russoniello and Special Agent in Charge Wayne North, U.S. Department of Housing and Urban Development, announced.

In pleading guilty, Jubilee admitted that it had obtained two grants from HUD under the Supportive Housing Program (SHP) for the purported purpose of providing services to homeless youths in Berkeley, Calif., who, as characterized by HUD, are between the ages of 18 and 25. Through the acts of Jubilee’s former deputy executive director, Gordon W. Choyce II, Jubilee submitted claims for reimbursement to HUD based upon misrepresentations that certain employees, including Gordon W. Choyce II, had been paid with SHP funds for counseling homeless youths and for other supportive services in compliance with the terms and conditions of the SHP grant agreements, knowing that such claims were false, fictitious and fraudulent. Jubilee further admitted that it had double-billed and received payments from the City of Berkeley under Measure O, and from the City’s Community Development Block Grant Housing, based upon the same alleged work hours submitted to HUD for reimbursement under the SHP program.

“By making false, fictitious and fraudulent claims to wrongly obtain federal grants, the officials at Jubilee Restoration ultimately took money away from the very individuals they were supposed to be helping,” Russoniello said. “Any person or organization that seeks to and/or obtains federal funds by fraud and deceit, trickery or false pretenses, from programs designed to assist the needy or under privileged will be investigated and prosecuted to the fullest extent of the law. Especially now, in these uncertain economic times, when millions of taxpayer dollars are being made available to communities throughout the country, including in the Northern District of California, the federal departments and agencies who are charged with the responsibility for disbursing these funds to eligible recipients only are equally committed to reporting instances of fraud and abuse or attempts thereat to the appropriate law enforcement agencies. When those matters are referred to us they will, whenever possible, be prosecuted.”

Jubilee Restoration, Inc. is a faith-based non-profit organization that was incorporated in the State of California in 1996 and is located in Berkeley.

Deborah R. Douglas is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Laurie Best. The prosecution is the result of a lengthy investigation by the U.S. Department of Housing and Urban Development, Office of Inspector General.

Further Information:             

Case # CR 09-00440 CW

A copy of this press release may be found on the U.S. Attorney’s Office’s website at http://www.usdoj.gov/usao/can.

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.

Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at http://www.cand.uscourts.gov.

All press inquiries to the U.S. Attorney’s Office should be directed to Jack Gillund at (415) 436-6599 or by email at Jack.Gillund [at] usdoj.gov.

This site does not contain all press releases or court filings and is not an official record of proceedings. Please contact the Clerk of Courts for the United States District Court for official copies of documents and public information.

United States Department of Justice
United States Attorney Joseph P. Russoniello
Northern District of California
11th Floor, Federal Building
450 Golden Gate Avenue, Box 36055
San Francisco, California 94102
(415) 436-7200
FAX: (415) 436-7234

%%%%%%%%%%%%
(Home Address)
Gordon W Choyce SR. 

20 Stephens Way
Berkeley, CA 94705
(510) 644-2902

%%%%%%%%%%
Jubilee Restoration

2144 Byron St
Berkeley, CA 94702
(510) 540-8111

%%%%%%%%
STAFF

Phone: 510-540-8111
Fax: 510-849-9092

EXECUTIVE STAFF

• Gordon W. Choyce Sr.

Executive Director - rev [at] jubileerestore.org

• Gordon W. Choyce II

Deputy Director - gordon [at] jubileerestore.org

• Mia Medcalf

Development Director - mia [at] jubileerestore.org

HOUSING PROGRAM

• Todd Harvey

Project Manager - Housing - todd [at] jubileerestore.org

ADULT PROGRAM

• Charleton Lightfoot

Program Coordinator - MRC - charleton [at] jubileerestore.org

YOUTH PROGRAM

• Rebecca Prophet

Program Director - Youth Program - rebecca [at] jubileerestore.org

• Jason Redwine

Outreach Worker - Youth Program

PROPERTY MANAGEMENT

• Kara Choyce-Palmer

Property Management - kara [at] jubileerestore.org

ACCOUNTING

• Tiffany Wilson

Bookkeeper - tiffany [at] jubileerestore.org

BOARD OF DIRECTORS

Ronnie Turner, Vice-President

Mr. Turner brings over 25 years of experience in the area of Community and Housing Development. The son of a Tuskegee Institute graduate, he learned the operation of owning a construction and development business at an early age. This former City of Berkeley Housing Development Project Manager is currently the Vice President of J Branch Developments of Oakland, where they are involved in several new construction housing developments throughout the City of Oakland. Mr. Turner enjoys attending an array of sporting events especially football, basketball, Track and Field.

Michelle Tong, Board Member

Michelle brings over 11 years of extensive non-profit legal experience to JR’s board, specifically in area of tenant’s rights, housing discrimination, and legal services to indigent and elderly persons of color. As a community advocate, she enjoys informing and educating underrepresented communities of their legal rights. Michelle also devotes her time working with low- income Asian immigrants at the Asian Law Caucus.

Dionne Choyce, Chairman

With graduate degrees in both law and education, Dionne is an invaluable advisor on legal matters and program development. As an attorney for Alameda County, Dionne has experience working with a wide array of government agencies and community groups to create positive change in this County. Prior to his work in the legal field, Dionne developed a deep understanding of the operations of Jubilee Restoration by working as their Director of Development and Fundraising. He also is a former member of the Berkeley Youth Commission.

Delores Nunnally, Board Member

Previously as executive director of Summer Solstice Celebration, a community based non-profit organization in Santa Barbara. Delores was responsible for facilitating art programs in the schools and community centers as well as providing funding; through grants, fundraising, and corporate sponsorships. And currently as a small minority business owner and president of The DANI Group, a special event management firm in Oakland, Delores brings over 20 years experience in creating and marketing special events. Given her experience both as an executive director and a small business owner she is a valuable asset to the Jubilee Restoration Board of Directors.

Darryl Moore, Board Member

As a Senior Management Analyst for the City of Berkeley and Trustee for Peralta Community College Board of Trustees Area 4, Darryl brings a wealth of finance experience and community leadership to Jubilee’s Board of Directors. Along with helping to guide the mission and vision of Jubilee, Darryl volunteers on boards of Berkeley/Albany YMCA, Co-Chair of the Berkeley/Albany 100 Year Anniversary, Berkeley Public Library Foundation, West Berkeley Foundation, Berkeley Youth Alternatives and a member of the Berkeley Rotary.

Charles Lightfoot, Treasurer

Charles has worked with Albertson’s for 35years. Currently he serves as a District Manager for the Silicon Valley Area. For the last ten years, Charles has shared his business mind and talents as a member of the African American Leadership Committee (AALC) and developed the organizations mentorship program through Albertson’s. With his community experience, deep community roots due to growing up in Berkeley, his fiscal management experience as a District Manager, Charles will bring general administration, cost estimates, budgeting and financial oversight to Jubilee as the treasurer.

Reverend Dr. Gordon W. Choyce, Sr., President

Pastor Gordon W. Choyce, Senior, brings over 20 years of experience in Business Administration, Community Relations and spiritual leadership as President of Jubilee’s Board of Directors. Before founding Jubilee Restoration, Inc. as a non-profit organization in response to the community’s cry for a comprehensive community service organization, Gordon worked for The Quaker Oats Company as a corporate executive of Human Resources and Community Relations for 21 years. In 1990, Gordon became the Pastor of the Missionary Church of Berkeley and has work in various community organizations and with countless community leaders to effect change for residents of South and West Berkeley. Recently he graduated from San Francisco Theological Seminary, with a Doctorial Degree in Ministry (D.D.). This only adds to his culmination of degrees in Psychology and Sociology from College of Idaho, Master Degree in Business Administration from Boise State University, and Master Degree from Pacific School of Religion (PSR). With the combination of Pastor Choyce’s outstanding achievements in education and his 20 years of business experience he adds wisdom and distinction to the group.

Gordon W. Choyce, II, Board Member

With degrees in Business Administration, Finance and Marketing, Gordon brings invaluable assistance in fiscal management and business operations. Before joining Jubilee, Gordon worked in The Clorox Company’s Finance and Accounting Division as an auditor and Sr. Financial Analyst. With his experience as a financier and family construction background, Gordon has expanded his talents to real estate development and investment and leads several major new construction housing developments in Berkeley and Oakland. Gordon was born, raised and maintains his residence in Berkeley and has served on various commissions in the city like the Fair Campaign Practices and Youth Commission.

Thaddeus Culpepper, Board Member

An associate at McDonough, Holland & Allen, Thaddeus specializes in real estate and land use law. Thaddeus graduated with a J.D. degree from the University of California Davis School of Law in 2001 and is very eager to tackle the challenges of supporting Jubilee’s efforts in building affordable housing. Thaddeus will focus his efforts primarily on development, planning, permitting and redevelopment.

Description:
Jubilee manages a variety of properties, both apartments and houses, for rent in West Berkeley and West Oakland. We maintain wait lists for our properties so that as units become vacant we have a ready list of interested applicants. Please note that we cannot predict how long a potential tenant may be on a wait list before housing becomes available.

Call Jubilee Rental Hotline at 510-540-5460 to inquire about current unit availability, lease requirements or to place yourself on one of our waitlists.


%%%%%%%%%%%%%
ORGANIZATION NAME -- Yearly assets according to 990 tax forms.

Jubilee Restoration
State -- CA
Year -- 2007
Total Assets -- $756,946
Form -- 990
Pages -- 19
Employee Identification Number (EIN) -- 94-3236775

Jubilee Restoration
CA
2006
$574,776
990
20006
94-3236775

Jubilee Restoration
CA
2005
$727,367
990
21
94-3236775

Jubilee Restoration
CA
2004
$810,883
990
18
94-3236775

Jubilee Restoration
CA
2003
$818,939
990
18
94-3236775

Jubilee Restoration
CA
2002
$872,255
990
16
94-3236775

Jubilee Restoration
CA
2001
$870,438
990
15
94-3236775

%%%%%%%%%%
Missionary Church of God
1125 Allston Way
Berkeley, CA 94702
(510) 704-0150

Pastor W. Gordon Choyce 11

Executive Director
Jubilee Restoration Inc


Pastor
Missionary Church of God


Senior Pastor
Missionary Church of God


Corporate Executive of Human Resources and Community Relations
The Quaker Oats Company


President
African-American Student Body

Board Member
Jubilee Restoration Inc


Founder
Missionary Recovery Center

Education

Doctorial Degree, Ministry
San Francisco Theological Seminary


Master Degree
Pacific School of Religion


Master Degree, Business Administration
Boise State University


Berkeley High School

%%%%%%%%%%
>>>>>>>>>>>>
The Mision

Through the Missionary Church, Rev. Choyce Sr. established the Missionary Recovery Center (MRC) in 1992 to provide residential substance abuse services, support and transitional housing for men who wanted to transform their lives. When government cut-backs in public subsidies adversely affected low-income housing and assistance to single parent households back in the early nineties, residents in the West Berkeley area looked to the Missionary Church to fill this void. The Pastor recognized that his church couldn’t continue to address the ever-growing needs of the community on it’s own. He founded Jubilee Restoration (Jubilee) as a response to the West Berkeley community's cry for a comprehensive community service organization.

Missionary Recovery Center
871 873 And 875 27Th Street
Oakland, California 94607
United States 

Phone: 
(510) 849-9072

Revenues: 
Under $20 Million

Employees: 
Under 99

>>>>>>>>>>>>
Missionary Church -- Gordon Choyce SR.

Real Estate Revitalization Philosophy   Through real estate development, Missionary Church Community Development Corporation (CDC) strives to serve as a catalyst for the revitalization of South and West Berkeley' diverse neighborhoods.

Pastor Gordon W. Choyce is Godly Proud of his marriage to Sharon M. (Logan) Choyce, his partner for the past thirty-five years and mother to their three children. Their eldest son is Gordon W. Choyce II, second son, Dionne E. Choyce, third child; Kara Allyse Choyce. Pastor Choyce and wife are the grandparents to four grandchildren: Tyanna, James, Kalyn, and Brenea. Both Sharon and Gordon were members of the Missionary Church prior to meeting. Since they have married and served as Pastor& First Lady of the Missionary Church for the last eighteen years.

Church Address:
1125 Allston Way
Berkeley, CA 94702

Church Phone: 510-540-6713

Office Hours: Monday - Friday 9:00-5:00

>>>>>>>>>>>>
Jubilee Restoration currently operates three programs:


Jubilee Housing


Property Development

Jubilee Housing is currently developing a variety of mixed-use affordable
housing projects in South and West Berkeley.


Property Management

Jubilee Housing manages rental properties (both apartments and houses) in
Berkeley and West Oakland.



Jubilee Youth Services



The Jubispot

The Jubispot is a unique drop-in center for at-risk and homeless youth to
seek refuge from the street and be connected to a wide range of counseling
and human services.



Jubilee Employment Training (JET)

We designed this computer training center with young people in mind but
we encourage people of all ages to take advantage of our services ranging
from job search and placement to resume development.



Jubilee Adult Services



Missionary Recovery Center Transitional Housing (MRC)

A cornerstone of Jubilee’s services, MRC is a clean and sober transitional
house for men who are looking to turn their lives around. Our
compassionate, skilled staff assesses each person’s individual needs to
provide case management and work with the men to coordinate substance
abuse services and to develop their job and life skills through work therapy
and the pursuit of educational goals.

>>>>>>>>>>>>>
Housing Programs

Jubilee is no stranger to developing affordable housing. In 1994, Jubilee became active in the HUD 203k program. Through this program, we purchased HUD foreclosed properties, rehabilitated them, and sold them to first-time homebuyers. Jubilee Housing fostered community development by bringing neglected properties up to market value, then reselling them at affordable prices to low-income residents of that community, often with the assistance of "gift loans" for down payments. Between 1994 and 1997, we rehabilitated over 185 units of housing in the San Francisco Bay Area from San Jose to Santa Rosa. In 1997, HUD named Jubilee Restoration the “Outstanding Purchaser of HUD Properties” in recognition of our valuable work building and rehabilitating housing. We are very proud of our participation in the HUD 203k program because it allowed many low-income families otherwise priced out of the market the opportunity to participate in the American dream of home ownership.

In 1996, Jubilee chose to shift the affordable housing focus from restoring single-family homes throughout the Bay Area to developing larger, denser mixed-use housing developments within and around Berkeley and West Oakland. By focusing on developing significant projects within a narrower geographical area, we hope to have a more specific impact and build neighborhoods by transforming underdeveloped, blighted high-crime areas and reshaping the character in our community.

DEVELOPMENT PROJECTS

• Jubilee Senior Homes

2577 San Pablo Avenue, Berkeley

Partner: Resources for Community Development

Architect: Anne Phillips Architecture Jubilee Restoration is proud to be developing 27 units of affordable housing with supportive services for very low-income seniors in a joint venture with Resources for Community Development (RCD). In 1999, we took notice of a trash-filled lot known for drug activity and prostitution at 2577 San Pablo Avenue and asked ourselves how we could make this site an example of the kind of community we want to promote in our city. Our answer to this question is the Jubilee Senior Homes development. This project will ensure that low-income and minority senior citizens in the Berkeley community have the opportunity to live independently in an affordable and safe environment where they can receive the most efficient and effective health and social support services available.

• Jubilee Courtyard Apartments

2700 San Pablo, Berkeley

Partner: Panoramic Interests
Architect: JSW Architects

When we first encountered the site at 2700 San Pablo, it was a blighted, abandoned lot covered with graffiti and trash and known for attracting criminal activity. We had a vision to transform this property into a place where community could live and thrive. We chose to partner with Panoramic Interests to develop the Jubilee Courtyard Apartments. This project will be a mixed-use building consisting of a four-stories with ground floor commercial space, layouts conducive to neighborhood- oriented retail use and 35 apartments. We and our partners at Panoramic Interests are concerned about the lack of housing options for the disabled in our community, with that in mind, we have designed the building and apartment units to be 100% adaptable for handicap accessibility.

• Acton Courtyard Apartments

Acton/University, Berkeley

Partner: Panoramic Interests
Architect: HDL Architects

This site used to house a state hospital that closed in the 1970’s. Since the hospital closure, the property sat vacant and became an eyesore and a magnet for crime on University Avenue. In 1998, Jubilee partnered with Panoramic Interests to develop a plan for the site that would address the needs and concerns of the surrounding community. Thanks to extensive community support, the City of Berkeley awarded the land to us for development. The Acton Courtyard Apartments project will be a mixed- use building with ground floor commercial space, layouts conducive to neighborhood oriented retail space and 71 new mixed-income residential units. The building and apartment units will be adaptable for handicap accessibility. Expected completion date is August 2003.

• Jubilee Village

2612 San Pablo Ave, Berkeley

Partner: The Related Companies of California
Architect: Kava Massih Architects

Jubilee wants to thank Fantasy Records for sharing our vision of transforming their site from urban infill on San Pablo Avenue into an art village. Jubilee Village will serve low-income families, low-income artisans, and graduates from transitional housing programs with approximately 125 units of residential apartment and live/work loft space. It will provide a combination of retail, live/work, and community/recreational space that we are inviting local artists to take part in designing. The live-work spaces will be developed to support secure and efficient accommodations for artists, and craftsmen. Our goal is to foster the creation of an “arts belt” that will help to revitalize and give added value to the village and the city.

PROPERTY MANAGEMENT

Jubilee manages a variety of properties, both apartments and houses, for rent in West Berkeley and West Oakland. We maintain wait lists for our properties so that as units become vacant we have a ready list of interested applicants. Please note that we cannot predict how long a potential tenant may be on a wait list before housing becomes available.

Please contact our friendly and efficient property management team by calling the Jubilee Rental Hotline at 510-540-5460 to inquire about current unit availability, lease requirements or to place yourself on one of our waitlists.

Low Income Housing Eligibility

To determine eligibility for our low-income and Section 8 housing we utilize the standard income ranges defined by the U.S. Department of Housing and Urban Development (HUD.) Each year HUD examines each county’s "area median income" and determines income ranges for very low, low, moderate, and high-income brackets.

Locate your household size below. If your household’s annual gross income falls within the range indicated, you may apply for low-income units.

Minimum Income ranges for low-income households

(Jubilee Restoration demands that a tenant must earn a minimum of 11,000 annually to rent one of their apartments.)

We accept Section 8, Housing Choice, and Shelter Plus Care vouchers. If you are in one of these programs, a lower annual income is acceptable. To find out more information about these programs, contact your local Housing Authority.

Total annual income includes wages, government assistance and benefits, interest on assets and investments, and any other form of income you receive.

Total household income includes all types of income stated above for all members of your household.


Featured HUD 203K Properties

• Missionary Recovery Center
871-875 27th Street, Oakland

Completed: 1997

• Jubilee Homes
2418 8th Street, Berkeley

Completed: 2002

• Haskell Street
1238 Haskell Street, Berkeley

Completed: 2002

Our Partners

It is critical to collaborate and develop partnerships in order to implement affordable housing development and supportive services in the Bay Area. By partnering with prominent for-profit developers such as Patrick Kennedy’s Panoramic Interests and The Related Companies of California, Jubilee has been able to bring for-profit efficiency to play with our non- profit goals. We are proud to partner with non-profit developer Resources for Community Development on our Senior Homes development. Jubilee has been an active participant in the San Francisco Foundation’s Faith Initiative group focusing on housing. Jubilee has also provided technical assistance regarding housing issues for the Alameda County Homeless Youth Collaborative, Fred Finch, Chaplaincy to the Homeless, Ark of Refuge, Berkeley Ecumenical Strategies Team (a coalition of 18 minority churches in South and West Berkeley) and several other non-profit organizations.





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by Repost:
HUD Report Blasts Jubilee: By MATTHEW ARTZ
Friday October 22, 2004

http://www.berkeleydailyplanet.com/issue/2004-10-22/article/19918?headline=HUD-Report-Blasts-Jubilee-By-MATTHEW-ARTZ

One of Berkeley’s largest affordable housing developers has been stripped of its federal funding amid charges that it has engaged in nepotism and misallocated funds.

A monitoring report, released Tuesday, by the federal Department of Housing and Urban Development has cited Jubilee Restoration Inc. for spending federal funds earmarked to hire three full-time workers for its Supportive Housing Program on ineligible projects and random office expenses including a luncheon.

HUD also questioned if Jubilee’s family-run hierarchy constituted a conflict of interest. Until recently the organization was headed by Berkeley Pastor Gordon Choyce and his son, Gordon Choyce II, who served concurrently as executive director and deputy director and also maintained seats on the board of directors.

At HUD’s demand, they and another family member recently resigned from the nine-member board.

Jubilee, which did not return phone calls for this story, has until Nov. 19 to respond to the charges.

If HUD is unsatisfied with Jubilee’s response, the nonprofit could pay a heavy price. HUD can require Jubilee to return the estimated $200,000 in funding for the program it has received over the past two years and could disqualify Jubilee from receiving future funding for all of its activities.

Already the investigation has jeopardized Jubilee Village, a proposed 110-unit affordable housing development. City staff was set to recommend Tuesday that the City Council guarantee up to $3 million in HUD-sponsored loans for Jubilee to purchase the property at 2612 San Pablo Ave. for the project. However, according to a city manager’s report, HUD advised the city not to provide funds to Jubilee while the organization was under investigation.

The City Council heeded the advisory and chose not to guarantee the loan, putting the project on hold. Berkeley has thus far contributed $75,000 towards the development, of which $28,960 has been spent.

Jubilee, the city’s third largest affordable housing developer, got its start 12 years ago rehabilitating single family homes along San Pablo Avenue in West Berkeley, where its founder Gordon Choyce is pastor of the Missionary Church of God in Christ.

The organization now concentrates on social service work and new infill developments including the 71-unit Acton Courtyard Apartments, built in partnership with for-profit developer Panoramic Interests.

In an Oct. 5 letter to Jubilee, HUD wrote that it initiated a conflict of interest review based on its observation that, contrary to HUD rules, Jubilee’s executive director and deputy director are father and son and that they both serve on the board of directors.

HUD rules prohibit an employee from directly supervising a family member, and prohibit anyone from sitting on a board of directors of an organization where a family member is employed.

Jubilee is requesting a waiver from HUD to allow Gordon Choyce II to remain as deputy director under his father, who does not receive an income as executive director.

In addition to reshuffling its board of directors, Jubilee will have to answer to additional conflict of interest questions that emerged from the investigation. HUD found that the organization disbursed $1,400 from the Youth Checking Account to Kara Choyce-Palmer, another family member employed by the organization. HUD also questioned the relationship between Charles Lightfoot, the board’s treasurer, and Charlton Lightfoot, the adult program coordinator, who was paid $4,782 from May 2003 through January 2004.

In monitoring Jubilee’s expenditures, HUD also uncovered evidence that the organization misallocated funds for the HUD-subsidized Supportive Housing Program (SHP).

The HUD grant earmarked $100,000 annually—about one-third of Jubilee’s total budget—specifically to pay for three full-time homeless counselors beginning in 2002. However, HUD found no evidence that any of the positions were filled until October 2003.

At the same time, HUD found unspecified transfers were withdrawn from the SHP and Community Development Block Grant checking accounts without adequate explanation. Both accounts were found to have paid for ineligible costs including insufficient fee charges, overdraft charges and the luncheon.

HUD also found evidence that Jubilee made duplicate salary payments. The organization made regular withdrawals to the payroll account, HUD concluded, but at the same time individual checks were written to the same employees in the same month. HUD demanded that the duplicate payments be returned unless Jubilee could substantiate them.

Jubilee isn’t the first Berkeley non-profit to potentially suffer from a HUD monitoring. Last year, Building Opportunities for Self-Sufficiency was found to owe HUD over $600,000 in ineligible requests for payment and the Jobs Consortium for the Homeless is still fighting for survival after HUD ordered it to pay back over $1 million after determining that the organization was not eligible for a federal matching grant that it had previously received.

%%%%%%%%%
Jubilee Denies Financial Mismanagement
Contact Catherine Ho at cho [at] dailycal.org.

By Catherine Ho
Contributing Writer
Thursday, November 18, 2004

http://www.dailycal.org/article/16970/jubilee_denies_financial_mismanagement

Jubilee Restoration, Inc., Berkeley's third largest affordable-housing developer, denied reports Monday of financial mismanagement cited in an October U.S. Department of Housing and Urban Development report.

The allegations had delayed a $3 million federal loan to the company's Jubilee Village project and frozen $155,000 of federal and city funding for the organization.

In a written statement, Jubilee executive director Gordon Choyce Sr. refuted reports that the company had violated HUD regulations by transferring funds to pay for noneligible project costs-including more than $3,000 for an office luncheon-stating that no transfers had been made outside the scope of HUD's Supportive Housing Program grant agreements.

Choyce also responded to the report's claim that Jubilee had partaken in fraudulent accounting practices by allegedly issuing duplicate salary payments to the same individual, Jubilee treasurer Charles Lightfoot. HUD suspects that Lightfoot and another employee by the name of Charleton Lightfoot-who was paid a total of $4,782 between May 2003 and January 2004-are the same person.

Choyce clarified that Charleton Lightfoot is the son of Charles Lightfoot, and was paid to assist in providing counseling services at Jubilee's Employment Training computer lab, part of the organization's services for homeless youth.

Jubilee's response did not address the company's violation of HUD regulations in having one family member -Choyce Sr.-directly supervise his son, deputy director Gordon Choyce Jr. and in having both serve on the company's board of directors.

But Choyce Sr. said Jubilee has responded adequately to the concerns.

"From our perspective, we have responded to everything HUD requested, and it looks favorable to us," he said.

He added that Jubilee is not the only nonprofit housing developer to have to report its accounting processes to federal funding sources.

"If you look at all nonprofit organizations in Berkeley, if you call (Resources for Community Development) and Jobs Consortium, you'll find out that a number of nonprofits have to explain their accounting, and it has nothing to do with any wrongdoing at all," he said.

But City Council members voiced concerns about Jubilee's accounting practices in light of their decision Tuesday to approve the allocation of $13,000 in city funds to help Jubilee maintain staff so that it can continue to respond to the HUD findings.

"There's been a lot of talk for a long time about their operation not being very efficient," said Councilmember Betty Olds.

If HUD finds that Jubilee is guilty of the breaches, the company may have to repay its misspent federal money, which totals $200,000, said HUD spokesperson Larry Bush.

Barton said HUD's reaction to Jubilee's response will affect the council's decision to authorize the organization's participation in the $3 million federal loan.

The council will deliberate the item Jan. 11, when it will also consider granting Jubilee $1.9 million from the city's housing trust fund.

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