$2 Million Bill Delayed Payments Faces the City of New Orleans!

New Orleans Homeless Shelter Operator Unable to Continue

$2 Million Bill Delayed Payments Faces the City of New Orleans! (PHOTO: NOLA.com)

Cantrell Administration’s Delays Cause Strain on Shelter Services

The operation of New Orleans low barrier homeless shelter has been marred by financial woes as the Cantrell administration consistently delayed payments to the facility’s former operator Start Corporation. These $2 million bill delayed payments strained Start Corp’s resources leading them to let their contract expire in December. Despite efforts from contractors and City Council members to address the issue the administration failed to rectify the problem ultimately forcing Start Corp to cease operations.

Residents and advocates have highlighted the shelter’s deteriorating conditions including drug use, theft and inadequate security and services. Despite Start Corp’s efforts to manage the facility the $2 million bill delayed payments severely impacted day to day operations. Records revealed that over almost five years the city was consistently late in reimbursing Start Corp. with invoices often taking months to be paid in full contributing to the company’s decision not to renew its contract.

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