"... funds that were specifically designated for the Health & Safety Loan Program were diverted to EBNHS operational expenses and to fund the Community Core initiative. Further, we understand that some of the matching funds that the EBNHS was to contribute to the Health & Safety Loan Program were not deposited in the segregated Health & Safety Program account. In total, we believe that approximately $29,447 of funds have either been used for non-permitted purposes and/or not deposited into the Health & Safety Program in violation of Section 3 of the Agreement."This statement is from a May 2, 2016 Default Letter the City of Peoria sent to Kristina Gamez, Executive Director of EBNHS:
The EBNHS response - raise rents to pay the money back:
And then the City Council "forgave" the diverted funds and gave them more tax dollars from the East Bluff Special Taxing District:
According to Gamez: The money — about $25,000 — was spent on a new furnace for one property and garage repairs for another, among other things.
City resuming tax payments to east bluff organization...
Rest in peace Mr. Sandberg.