Pushing to close the funding lag that drains millions from homeless services

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Slow reimbursement of government contracts forces a South Los Angeles home for ex-prisoners to bleed interest to predatory lenders. A small nonprofit proposes to close the payment gap with no-interest loans.

It was June 7, payday at Reclaim-Possibility, a 22-bed home in South Los Angeles for men released from jail and prison who might otherwise fall into homelessness. Once again, owner Kalain Hadley had to tell his 10 employees they might not be paid. Reimbursement checks due on the first from his funding agency, Amity Foundation, had not arrived. 'It’s just really not a pleasant conversation,' he said.

would then reconcile invoices afterward. But that inflow of up-front cash won't reach Hadley, whose reimbursements come through the criminal justice system. Now, an alternative plan to extend a lifeline to Hadley and other hands-on providers like him is arising outside government.

 

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