Nonprofits that prevent evictions struggle as state contract payments are cut and delayed

“We’ve been treading water, but if the federal government doesn’t come to the rescue we’re going to be in trouble,” says Kirsten Keefe of the NYS Empire Justice Center, which provides legal and counseling services, including expertise on matters related to housing, such as foreclosure prevention and community investment.

Keefe says 75 percent of her organization’s funding comes from contracts with New York state, but since March the state has been delaying payments to nonprofits and localities statewide. Only recently, the state has begun keeping back 20 percent of those payments, with the caveat that those withholdings could become permanent if the federal government doesn’t deliver a significant bailout.

“Halfway through the year we’ve been able to maintain services. We’ve enacted a hiring freeze and lost staff through attrition, and we’re still standing,” says Keefe.

Other nonprofits have not been so lucky. Some have laid off staff members and others are struggling to keep the doors open.

Read the full story at Shelterforce. 

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