Office of Citizen
Rest in Peace,
E.D.E.N.'s PRIVATE HOSPITAL property tax exemption scam
Submitted by mabeldog on Fri, 03/10/2017 - 15:59.
Flush with a "loan" of $889,000 she scored in January from the Community Development Department of the city of Cleveland (whose funding is soon to be eliminated by President Trump's proposed HUD budget cuts), the Emerald Development "Economic" Network's director Elaine Collins (earning over $200,000 per year in salary and benefits) was sitting in the catbird seat. In March she snapped up an office building at 2070 W. 117th Street in Lakewood from the Latter Day Saints for $350,000 which WAS paying $15,000 per year in property taxes, but will soon be added to the over 100 properties EDEN owns classified fraudulently as Private Hospitals. And the $15,000 Cuyahoga County WAS collecting on the building will be eliminated. Enquiring minds want to know. HOW is EDEN getting away with cheating the impoverished school children of Cleveland out of millions and millions of dollars in property taxes? EDEN does NOT operate hospitals. Or group homes. Or nursing homes. Or drug rehabs. They do not pay any medical staff, drug counselors or social workers. They do not have community meals or job training. They funnel federal HUD funds into their bank accounts TOTALLY free of ANY taxes. AND free of ANY responsibilities. NONE of the "private hospitals" EDEN owns provide ANY kind of services for their tenants. 99% of their budget of $27 million comes directly from HUD in the former of a variety of very lucrative Section 8 vouchers. In SHARP CONTRAST our WORLD RENOWNED Cleveland Orchestra has a budget of $50 million dollars and with that they have a staff of 200 people including some of the best musicians in the world. EDEN also gets "loans" from the city of Cleveland and the state of Ohio Department Mental Health and Addiction Services, which do not have any repayment schedule attached to the loans.They employ 55 people at their main office at 7812 Madison who all process paperwork to keep those federal funds flowing. They were clearly very confident that their fraud would NOT be exposed. And why not? They had been getting away with it for MORE THAN TWENTY YEARS. After all on their Schedule A from the IRS 990 from 2014, where they checked off the reasons for PUBLIC CHARITY STATUS, the ONLY box checked off is Box 7 "an organization that normally receives a substantial part of its support from a GOVERNMENTAL UNIT" They do NOT check off box 3 "a hospital or co-operative hospital service" ONLY BOX 7. Also their recently amended articles of incorporation filed with the Secretary of State in April 2014 describe their services as providing "housing and housing related services and opportunities to low-income, mentally ill and disabled persons...and the administration of financial and other types of housing services."In other words EDEN "assists" their tenants to troll for as much free goobermint money as they can get. Nothing whatsoever about providing any on site mental health services.
And what about the chain of 10 Heroin Hotels run jointly by EDEN and Cleveland Housing Network which are filled with active drug users getting high and living large at the taxpayers expense? How exactly do those obscenely expensive homeless shelters where EDEN collects $600 per unit from SSI and HUD, qualify as property tax EXEMPT private hospitals. The tenants are not even required to be sober.
Let's compare those drug infested crime dens called "private hospitals" to the apartment complex run by Mt. Sinai Baptist church at 7600 Woodland. Their articles of incorporation through the Secretary of State are "to provide elderly or disabled persons housing facilities and SERVICES DESIGNED TO MEET THEIR PHYSICAL, SOCIAL AND PSYCHOLOGICAL NEEDS". That sounds MUCH MORE like a private hospital. But Mt. Sinai pays $74,984.40 in property taxes. And they are paid up for the whole year.
So where DID it all start? Through a partnership of two enterprising gals who were experts on gaming the system. On March 2, 1992 the Executive Director of Aftercare Residential Services, Wendy DiGregorio transferred a portfolio of 11 properties to the newly established Emerald Development Economic Network's founding director Kathryn Kazol. EDEN got the buildings for FREE but even BETTER, the "private hospital" designation which was attached to the 11 properties was carried right over to EDEN too. F.Y.I. Aftercare Residential was one of many non profits set up in the late 1970's and early 1980's to provide group homes for the mentally challenged adults released when the state mental hospitals closed. Their articles of incorporation filed with the Secretary of State on January 3, 1978 stated exactly that. "To provide a mental health service and ....to provide suitable housing for persons discharged from psychiatric hospitals." With a wink and a nod, and of course no follow up from the Cuyahoga County Fiscal Office, Kathryn Kazol started accumulating "private hospitals" at break neck speed. With free money from every possible government entity from local to HUD. The "EDEN-owned Scattered Site Housing" is where ALL the private hospitals, with the exception of the Heroin Hotels, are hidden. And the waiting list is permanently closed. PERMANENTLY. No one ever moves out?? OR DIES?? Really?? OR is it something else? Are they FINALLY getting nervous perhaps? Would Director Collins rather leave those vacant units in the "hospitals" vacant. Rather than be exposed.
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