Nonprofit Organization Double-Crosses Berkeley's Homeless Youth

Nonprofit Organization Double-Crosses Berkeley's Homeless Youth

By Lynda Carson May 17, 2009

When Berkeley's youth cannot trust a non profit housing organization to serve their needs, then it's hard for them to trust anyone.

On May 13, 2009, Jubilee Restoration, Inc., a faith-based nonprofit housing organization in Berkeley, pleaded guilty in federal court to submitting false claims to Housing and Urban Development (HUD) and was sentenced to five years probation, and ordered to pay $177,388 in restitution, as was announced by United States Attorney Joseph P. Russoniello and Special Agent in Charge Wayne North, U.S. Department of Housing and Urban Development.

The HUD funding that was stolen by Jubilee Restoration was originally meant to be used for counseling, human services, and other services provided at the Jubispot (Berkeley drop-in center for homeless youth), but was actually misdirected to other Jubilee staff members and programs instead.

By pleading guilty, Jubilee Restoration admitted to obtaining two grants from HUD under the Supportive Housing Program (SHP) for the purpose of providing services to homeless youths in Berkeley, which were then illegally diverted for other purposes.

In addition, Jubilee Restoration also 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 falsely submitted to HUD for reimbursement under the SHP program, and unlawfully payed to Gordon Choyce II, and other employees of Jubilee Restoration.

In essence, Jubilee Restoration was double-billing HUD and the City of Berkeley for services it never provided, and they did not hire the extra people needed as agreed upon when seeking funding, to provide the promised services to the homeless youth that were allegedly served at Jubispot.

As a result, during 2004, the City questioned why Jubilee Restoration billed HUD for work done by Housing Manager Todd Harvey and Gordon Choyce II for providing homeless services at the Jubispot, when it's contract with the City clearly stated that both men were involved in housing development for Jubilee Restoration, not homeless services or youth counseling at the Jubispot.

Federal officials said that Gordon Choyce II, a former deputy director of Jubilee Restoration submitted the false claims to HUD, which led to the lengthy investigation by HUD and the Office of Inspector General.

“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 (the homeless) they were supposed to be helping,” United States Attorney Joseph P. Russoniello said in a statement.

Other allegations were that Jubilee Restoration was involved in fraudulent accounting practices, and that the organization violated HUD regulations and rules by transferring funds to pay for non-eligible project costs, including $3,000 or more for an office luncheon.

The executive director of Jubilee Restoration a nonprofit housing organization, is Pastor Gordon Choyce Sr., who is also the pastor of Missionary Church of God in Christ, located in Berkeley.

Records show that during 2007, a grant of $388,910 from the Missionary Church of God in Christ was made to Jubilee Restoration by Pastor Choyce, and that Jubilee Restoration payed out $62,000 in consulting fees, and payed $11,894 in tax penalties during 2007.

When considering the way that this organization has been operating, perhaps it's time for the feds to look into why Gordon Choyce Sr., diverted $388,910 in the form of a grant from his Missionary Church of God in Christ to Jubilee Restoration during 2007, to see where all the money went, and what it was was spent for.

Through the Missionary Church, in 1992 Pastor Gordon Choyce established the Missionary Recovery Center in Oakland, and later founded Jubilee Restoration which operated three programs, including property development, property management and the Jubispot, a drop-in center offering a range of counseling and human services to Berkeley's youthful homeless population and those at risk of homelessness.

Family members of Pastor Choyce Sr. who are involved in running Jubilee Restoration, have included his sons Dionne Choyce, Gordon Choyce II, and his daughter Kara Choyce-Palmer.

During 2004, Jubilee Restoration was also stripped of it's federal funding while facing charges that it wrongfully engaged in nepotism and the misallocation of funds to assist the homeless.

At that time, the City of Berkeley followed suit and froze funds to Jubilee Restoration, which at the time was Berkeley's third largest non profit housing developer.

As for Berkeley's homeless prevention programs, during FY 1997-1998, the City spent around $1.23 million of it's general fund through it's Measure O and Community Service Programs, for it's homeless population. During 2005, around $1,416,640 was spent to maintain homeless funding. The FY 2009 current budget update for community agencies serving the homeless population in Berkeley totals at around $3.4 million.

Naja Strandt has been homeless and is still close with many of the homeless people residing in Berkeley, and says, "As punishment I would really like to see those that were involved in ripping off funds meant to assist the homeless, to be forced to live as a homeless person for at least 3 years. Not as couch surfers or as those who sleep in cars, but as someone who actually sleeps on the dirt at night or in the bushes, like so many others are doing due to a lack of affordable housing. Most people are only two pay checks away from being homeless, and it's the worst sort of crime to steal from the homeless."

Jubilee Restoration is also in partnership in several housing developments, including partnerships with Resources for Community Development (RCD), the Related Companies of California, and Berkeley developer Patrick Kennedy.

Jubilee Restoration insists that a single renter must have a minimum income of $11,000 per year to move into one of their affordable housing units, according to their website.

In comparison, local non profit housing developer Affordable Housing Associates demands that a single occupant must have a minimum income of $8,400 annually to move into one of their rental units, and East Bay Asian Local Development Corporation (EBALDC) is demanding that a renter must earn at least double the amount of rent being charged for a rental unit at their affordable housing sites, and is demanding well beyond $800 to $870 per month for some of their one bedroom units at Effie's House, in East Oakland.

Many of the poor and homeless who cannot afford to move into so-called affordable housing sites, have bitterly complained that some local non profit housing organizations charge to much, and that some of the non profits' charge more for their rental units on a monthly basis than many for profit landlords are charging for rents, in the same areas.

As recent as March 31, 2009, a petition with over 500 signatures requesting more oversight into the way local non profit housing organizations spend money allocated to them for their housing projects was submitted to Oakland's City Council, and was quickly rejected by council members.

Lynda Carson may be reached at tenantsrule [at] yahoo.com