The East Bluff Neighborhood Housing Service’s (EBNHS) status as an Illinois corporation is “not good standing,” according to the Illinois Secretary of State’s website. That means the not-for-profit corporation is past due in filing their annual report and paying the related filing fee. The report was due March 1.
EBNHS Board member Tom Stone said he believes there has been a delay in filing the necessary paperwork due to the organization’s annual audit being conducted, but referred me to the group’s Executive Director, Peggy Shadid, for an official comment. Shadid said the accountant has finished preparing the annual report and she (Shadid) will be sending it in to the state.
What’s interesting is that the state doesn’t appear to require an annual financial report, but rather this form, available from the Secretary of State’s website, which simply asks for the names and addresses of the corporation’s officers and directors, and can even be filed online. The filing fee is $10. The EBNHS has been incorporated since 1986 and, presumably, required to file these annual reports for up to 25 years.
City Attorney Randy Ray said that the EBNHS’s failure to file their annual report with the state in a timely manner was “not a big deal,” but did add that they should remedy the situation as soon as possible. Both he and the Secretary of State’s office said that, once the report is filed, the organization’s status will be restored to “good standing” once again.
Missing this deadline might be a small matter except for the fact that this organization has a history of poor record-keeping and lack of transparency, which resulted in quite a bit of controversy when its revenue source came up for renewal a year ago. Since then, the group has been trying to improve its image and regain the trust of its East Bluff neighbors.
The EBNHS gets its funding from an extra tax that is levied on properties within the EBNHS Special Service District area. The annual levy amounts to roughly $67,000. Starting in 2010, the City Council decided to vote on collection and distribution of that tax revenue on a year-by-year basis, “to assure all required reporting was complete,” Councilman Tim Riggenbach explained at a March 23, 2010 council meeting. Riggenbach did not immediately return a call for comment.
IT MAY NOT BE A BIG DEAL FOR THE ORGANIZATION, BUT IT IS A BIG DEAL-JUST A SMALL BUMP IN THE ROAD LEADING TO A BIGGER POTHOLE. THE SHADIDS’ WORK THEIR BUTTS OFF FOR THE EAST BLUFF AND THE ORGANIZATION GIVES THEM LITTLE IF ANY HELP.
The EBNHS, Inc. has gone so far afield from the original intent that it would take an entire blog to enumerate the various problems. Late filing of paperwork is only the tip of the iceberg. This organization, originally intended to help homeowners obtain low interest loans, promote neighborhood associations and civic events, and improve relations between neighbors (paraphrasing from the original charter), had become a rental property concern. While the stated intention of purchasing houses (they currently own four, including the house used as their headquarters) was to rehab and sell these homes, they are now in the business of being landlords. They, according to their 2010 financial report to the City, spend 48% of that $67,000 as a salary to an executive director who is allowed to use the headquarter building as a residence. They have not promoted events or helped with loans for more than two years, and they have managed to convince the city that they are not accountable to the citizens of the East Bluff for the funds that are assessed from that “Special Service District” because they are a private organization (thus the Inc. at the end of the name). They resist efforts for transparency, but want to continue to receive public funding.
Sound about right so far?
Have you reviewed their Form 990 on guidestar dot com? Latest one was dated 8/31/2010 (for 2009).
Doesn’t surprise me, and I will take a look at it this evening. Thanks for the input, Vinron.
Does Principle Properties still rent out the EBNHS house on Arcadia? Dale Hanson, I understand, no longer owns that company or lives in Peoria cqand is no longer president of EBNHS. I’m just curious if that controvery ever got settled.
The decline of this organization is a great example of what happens when people who are only out for themselves get involved with something designed to benefit many. Though I hope it can be mended, the current version of EBNHS needs to end.
CJ,
go to the secretary of state’s website and pull the document needed to file a non profit report on a corporation. You’ll be seeing what bunk this is. It takes a few minutes and $10 for my neighborhood association.
The taxes are another story as is the report to Attorney General Madigan’s reports, but those a a seperate process and unrelated.
also, Fred, you might want to give the information to Beth and to Chuck. No one on the council is concerned about the status of EBHS. they will get their funding. The residents will pay that extra property tax AND they will pay taxes to the TIF to get the services that the housing services should be providing…
Sent my latest blog concerning the EBNHS to Beth, Chuck, and all the others on the City Council and C.J. and John Sharp. Let’s see if anyone pays attention. Click on my name and you go to my blog, and any comments would be appreciated.
Fred — I can’t post a comment on your blog because it requires commenters to be signed up with some other service, such as LiveJournal or Blogger, and I’m not a member of any of the “Profiles” listed in the drop-down box. So, here’s the comment I tried to leave:
Also, you’ll want to read this notice about the revolving loan fund that they posted on their site: http://www.ebnhs.com/notices.html.
CJ: My browser makes jibberish out of the revolving loan fund notice … would you be willing to post the contents of it at Peoria Chronicle? Thanks!
Karrie — Here’s the text:
I keep asking why the council forces residents to pay a special assessment tax for this organization. I am certain the council will turn a blind eye and once again pass the requested extension.
“For instance, you say that the City’s designation of the East Village area as “blighted” has caused property values to fall. On what do you base that assertion? It doesn’t seem to me that enough time has elapsed to gauge the effect of the city’s designation — a designation which was just made this year.”
The assertion is based on trying to sell homes here in the East Bluff. My neighbor is attempting to get a decent price for his home, and the realtors are telling him he can expect less than he could have gotten before the declaration. I realize it is perception of value, but that perception is felt by the homeowner. Now a post on my blog pointed out that the assessed value actually went up this year, but again, this is a function of the TIF.
“The municipal cost of certain public improvements and programs can be repaid with the revenues generated by increased assessed values of private real estate within a designated project area.”
An “increased assessed value” means that the tax on said property will increase, since property taxes are based on market value. So, therefore, there is an increase in tax to the property owner.
As to the website being up to date, it must have been updated very recently. I will take another look.
Just took another look. We are half right here, C.J.. Yes, the minutes are up to date, which they were not the last time I looked, so my bad. However, the annual goals statement on the site is still the one for 2010, which ended 5 months ago.
Fred — It sounds like your underlying concern is that properties in your neighborhood are improperly assessed; i.e., that the assessments are going up (resulting in higher taxes) while the actual market value is going down (due to the “blighted” designation). Is that it?
Hit the nail on the head, C. J. No matter how you slice them, taxes are taxes.
Will see soon as to tax value / sale price. “blight” label will not help. Ahha the city knows best!
Will the COP need to comply with the loan regulations for funds proposed for the new 23 year TIF that hinder the EBNHS from loans?
CJ: Thanks.
How does what EBNHS is trying to accomplish compare with Moss Bradley’s revolving fund?
Is the Moss Bradley program still issuing loans?
Is that organization grandfathered from these rules?
How do other NHS organizations handle these loan issuing requirements?
Staffing requirements? What does that mean? Since approximately 2/3 of the tax is currently used for one employee, the director, how would EBNHS be able to afford more ‘staff’ unless they were ‘volunteer’ staff?
How much do surety bonds cost?
Is the goal of providing loans realistic?
Karrie, if you go back to the public meeting (annual) meeting two years ago.Stone said they were not going to give out loans. They have kept their word on that one item. Councilmembers were present, heard it, and ignored it. and here we still are. Riggs will give some cheerleading statement to avoid the issue, Spain will say either it’s “crucial or critical” that EBHS gets these funds. many of the others will fall in line due to needing votes and deals later for their own issues and still these residents are taxed for a service they are not getting.