Masada House owes $18,000 to the IRS
Because it owes money to the IRS, the Farmington transitional living facility can no longer receive federal grants
- Masada House owes the IRS about $18,000 and is no longer eligible to receive federal funding.
- The nonprofit is working on a repayment plan and is completing an audit in an effort to regain eligibility.
- Masada House can no longer use $7,000 of CDBG funds allocated by city of Farmington.
- Farmington will likely reallocate those funds to Americans with Disability Act compliance projects.
FARMINGTON — Masada House officials say the Farmington transitional living facility can no longer receive federal funding because it owes about $18,000 to the Internal Revenue Service.
Jeff Boddy, vice president of the board, said Masada House, which helps women recovering from substance abuse problems get back into the community, has been struggling financially and has had to choose whether to pay taxes or pay bills.
"It's just been real tough to raise money," he said.
He said the nonprofit owes about $18,000 to the IRS and has sent the federal agency a repayment plan that still needs to be approved.
The System for Award Management website flagged the nonprofit for not being in good standing with the federal government. SAM is a federal website that tracks individuals and entities that conduct business with the federal government or receive federal grants. The website currently shows Masada House's entity registration status expired on Oct. 7.
Executive Director Jessica Stopani said Masada House cannot receive federal grants because of the money owed to the IRS. Stopani said the nonprofit is going through an audit that is expected be completed in May. She said Masada House hopes those steps will allow it to apply for and receive federal funding later this year.
Masada House will host its largest fundraiser, Music for Masada, in May, and officials hope that will help them pay off some of their debt.
Boddy said the most the nonprofit has raised from the concert was about $15,000. He hopes to raise $25,000 this year to "pay off taxes and put some money in the bank."
"We can always use help from the community," he said.
Because Masada House cannot receive federal funds, the city of Farmington will likely reallocate $7,000 in Community Development Block Grant funds that were set aside for Masada House to two ongoing Americans with Disabilities Act compliance projects, according to Assistant City Manager Julie Baird.
In 2015, the city allocated $7,000 in CDBG funds to Masada House.
CDBG funds that are reallocated must go toward projects approved at the time the original allocation was approved, Baird said.
Baird said the two ongoing projects involve bringing sidewalks, ramps and parking areas into compliance with new ADA requirements.
"We have a large number of ramps and sidewalks that need to be addressed," she said.
Hannah Grover covers government for The Daily Times. She can be reached at 505-564-4652.
Editors note: This story was edited on Feb. 15 to remove a photo of Masada House with a United Way lawn sign in the foreground. Masada House is not a United Way affiliated agency.