Habitat for Humanity Turmoil Results in Board Changes

By Elden Fowler

Upon discovery that the Internal Revenue Service (IRS) had revoked the organizations tax exempt status November 15th, 2012, a majority of the nine member Board of Directors of Habitat for Humanity demanded changes.

At a special meeting held April 2nd, Board President Bill Williamson and Treasurer Glenn Williamson accepted regular board positions, Jack Levine was appointed as the new President, and Secretary Theresa Baldwin resigned from the Board.

Among other changes, it was announced that Steve Lowery, a salaried employee and the chapter’s building leader, will be leaving employment on May 2nd.

Members of the press and other uninvolved individuals were asked to leave the proceedings after the Board voted to close the meeting to the public.

The IRS revoked the chapter’s tax exempt status after three years of failure to file a Form 990 which is used to report the annual revenue and expenses of nonprofit entities. Outgoing treasurer Glenn Williamson accepted full responsibility for the failure to file.

Board member and newly appointed Secretary Seth Fuhrer said “Until the tax exempt revocation is corrected, Habitat for Humanity will operate as a for profit company.” Fuhrer added, “We removed or reassigned Board members to take the organization in a new and positive direction. We need to start building homes. It has been a long time.”

Habitat for Humanity International has been contacted and will be sending a representative to assist in correcting deficiencies in the organizations programs.

In addition to the nonprofit status revocation, the organization has encountered a number of problems of late. The most recent, the January 9th opening of its ReStore facility in the old Mervyn’s building in Marysville, was done without a permit. A day after a ceremony celebrating the grand opening, the store was forced to close when the city questioned the intended operations.
An ongoing dispute with homeowner Paige Sharrer has also created problems for the local chapter.

When Sharrer signed a contract in December of 2011 for renovation of her home in Olivehurst, she paid $10,880 and was under the assumption the remodel would be completed in 90 days. Although construction was to begin in 90 days, in an interview with the Territorial Dispatch, Habitat President Bill Williamson said “weather was a factor and delayed the start of the project until February.”

Although both Sharrer and Habitat agreed the renovation could run as high as $20,000, Sharrer complained about the work performed and questioned the pricing of the products used. After several months, work was stopped and today the home is considered by most to be an unlivable shell. In the interview, Williamson insisted “Habitat will not resume work until she signs a new contract.”

A review of the Alteration/Addition Scope of Work Check List issued by Yuba County’s Building Department shows there was to be extensive structural, electrical, mechanical, and plumbing modifications and, or, repairs.

Sharrer claims that an independent review has proved her correct and cheaper materials could have been used in an attempt to save her money. In that regard, Williamson said “We have agreed with her on some reimbursement for material overcharges that were justified and have been trying to calm her down.”

Fuhrer says “we hope the new makeup of the board will help us put these problems in the past and let us get back to serving the community.”

Published April 10, 2013