Main | Thursday, February 19, 2009

LA Gay Youth Shelter To Declare Bankruptcy

Calling it the "first domino to fall" as the economy wreaks havoc on gay social agencies, Karen Ocamb reports on Pam's House Blend that LA's gay youth shelter GLASS has voted to declare bankruptcy.
Wednesday night, eight days after its 25th anniversary, the board of directors of Gay and Lesbian Adolescent Social Services (GLASS) voted 7-0 (with one abstention) to file for Chapter 7 bankruptcy this afternoon. According to founder and executive director Terry DeCrescenzo, the staff is so "outraged" at the board's decision, they plan to ask a court to intervene and accept a reorganization plan instead. "This is a world-class disaster," DeCrescenzo told me by phone, noting that GLASS just became the first licensed LGBT adoption agency in the country. Their primary program is providing group homes for 40 LGBT 15-17 year olds, and transitional living for 25 teens between 17-19. DeCrescenzo says she believes the board filed for Chapter 7 out of fear of their own personal liability because the agency was behind in paying Worker's Comp and with the IRS. But she says an LA County contract check was expected to cover the gap and she could work out a payment plan with the IRS. Additionally, the reorganization plan would change the group home structure from a "family style" of six beds with two fulltime staff to 12-bed congregate living - hardly ideal but "better than going under."

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