An email to me this afternoon served as a reminder that the print media in Hancock County is also covering the Camp Coastal story. I learned a few things from Meaghan Chapman’s story from the 20th in the Seacoast Echo including that a hearing was requested by Sweeney and Molenhouse:
Coastal Outpost Directors Mike Sweeney and Sandra Molenhouse are under investigation by the Secretary of State and Attorney General’s office for allegedly using donations earmarked for Katrina victims in Hancock County and South Louisiana to fatten their own pockets.
The organization, which has been operating out of Kiln since a few months post-Katrina, billed itself as a charity — vested in hosting and directing volunteers and “managing a rebuilding program” — however, Sec. of State Delbert Hosemann said this week, the group never registered through his office……
While tracking down the nearly $5 million the organization has accumulated through various donations from people around the world, the secretary of state says, a major portion apparently didn’t go where it was earmarked.
After investigating the charity’s books from the last two years, Sec. of State Delbert Hosemann recently told reporters nearly a million and a half dollars are unaccounted for.
Hosemann’s investigation did find more than $80,000 was spent on multiple vacations, including cruises and ski trips, for Sweeney and Molenhouse which were not for any charitable purpose; nearly $50,000 was spent on meals and other personal expenses, such as lawn care for Sweeney and nail care for Molenhouse; and Sweeney and Molenhouse both took home a monthly salary of more than $7,500, according to the report by WLOX.
Attempts by the Sea Coast Echo to get comment from Sweeney and Molenhouse on the allegations against them went unanswered Friday.
Three years to the day after Katrina, Hosemann’s office issued a cease and desist order to Camp Coastal shutting them down.
Camp Coastal’s website portrays the events leading to the closure quite differently. Camp Coastal Director Mike Sweeney offers the following explanation in an update on the website dated July 1, “It is with humility and gratitude we announce the closing of Camp Coastal Outpost in August 2008 …“Several factors contributed to the decision to close the camp. Some are obvious. Three years after Katrina the community is rejuvenating and becoming capable of rebuilding itself … The less obvious factors — exhaustion of the leadership, political and cultural dynamics, greed vs. need attitudes, facility maintenance, so many factors — combined to support the decision to … let the community heal itself.”
Sec. Hosemann’s Communications Director Pamela Weaver said Camp Coastal, or Sweeney and Molenhouse, had until Sept. 29 to request a hearing with the Secretary of State’s office to answer the allegations of misuse of the charity’s funds. Weaver said an “intent to impose administrative penalties without benefit of input from Camp Coastal” would be issued by Hosemann’s office if the two did not schedule a hearing before the deadline.
Weaver said attorneys for Sweeney and Molenhouse contacted Sec. Hosemann’s office Friday afternoon to request the hearing which will be open to the public. The hearing date has not yet been set.
Good post! I suggest people use St. Rose, Lagniappe or Habitat all in Hancock County.
http://www.lagniappechurch.com/
http://www.strosedelima-bsl.org/1.html
http://www.habitatbaywaveland.org/about_us/news.php?ID=25
These are three very good groups which are run by great honest people. Don’t lose the faith. I also suggest checking with the areas local chamber before you do any type of volunteer work or make donations ina area.
I don’t know about the Habitat there but the Habitat in New orleans should be investigated. They partnered up with Camp Coastal after Katrina and promised to build free houses for disabled and elderly and these people are now being charged anywhere from $34,000 to $60,000 and Habitat took their property the only thing they had left in the world. These people are still in fema trailers. For some reason No one will investigate. Habitat was given $18000 donation per house and demanded these people turn over their $24,000 road home money they were given to raise their house. Where is the money no one can answer that. Their building houses that cannot be lived in because the roof leaks, water pipes are not connected to the house and screws put through electrical wires so no electricity in the house. I have always been an advocate and supporter of habitat but I believe they are doing their own thing and it is not fair to the people who desperately need their home.
I wanted to address some statements about New Orleans Habitat’s involvement with Camp Coastal and New Orleans Habitat’s work in St. Bernard Parish. In April, 2007, Habitat was approached by David Dysart, (then) Director of Disaster Recovery for St. Bernard Parish who, in turn, had been approached by another non-profit on behalf of Camp Coastal. Habitat was asked ONLY to frame some houses (between 40-50) for elderly, physically-challenged or low-income single parents and to complete the exterior with all materials to be supplied by Camp Coastal. Incidentally, Camp Coastal was also to provide all required licensed subcontractors and their materials.The other non-profit was going to finish the interior of the houses. Dysart was going to coordinate with the Camp Coastal subcontractors for their permitting and work. The information supplied to Habitat was a simple floor plan. After committing to provide volunteer labor and supervision for the framing and exterior work, Habitat was able to view the proposed foundation plan and quickly determined that it was substandard and, probably, would not pass code in St. Bernard Parish. A local St. Bernard contractor then agreed to do the foundation work at a discounted price. Within a month, the foundation subcontractor withdrew and, shortly thereafter, the other non-profit, realizing they did not have adequate trained staff to complete the interior, also withdrew from the project. Habitat was approached by and strongly urged by Dysart and then-Parish President Junior Rodriguez to take on the project in its entirety. Habitat began working on the foundations and submitting invoices to Camp Coastal. In addition, in order to move forward quickly, Habitat began using some of its own framing material when promised framing shipments were inexplicably “delayed” by Camp Coastal. To shorten the story, the foundation invoices were not paid by Camp Coastal, no “truckloads” of material were delivered (as had been scheduled repeatedly); ultimately, Camp Coastal set up a cash line-of-credit at a local lumber company for framing material and delivered one truckload of cabinets (enough for a few houses). By the end of July, it was apparent that Camp Coastal was not going to honor their commitments. In addition, Habitat was only able to get a copy of the material specifications after a trip to the Kiln headquarters and discovered that much of the material was low-grade or, even, substandard (for example, the exterior sheathing and siding was specified to be T-111 panels – a material typically used on garden sheds, outbuildings and dog houses; Habitat refused to use those specifications and, instead, used its “standard” 1/2″ OSB sheathing clad with top quality HardiBoard siding). By July, with Camp Coastal still controlling all funding and continuing to fail to perform, Habitat work drug to a stop; it simply could not continue using its own resources on the project.
In August (or early September) of 2007, Habitat was approached by the funding source (Aramco – who some folks had been told early on was a “Sheik of Arabi”) who expressed concerns about Camp Coastal and offered to pay Habitat, directly, the remaining balance they had committed to the houses – using the amount originally suggested by Camp Coastal for its own specifications (not the improved specifications) – if Habitat would continue with the project. All parties, including the families, were aware and had been advised almost from the beginning that the houses would require some payment from Louisiana Road Home funds (not elevation funds as has been stated in another reply). The project has taken far longer (for a variety of reasons) than Habitat or anyone else would have wanted; but, to date, of the 40 houses that have begun, 29 have passed final inspection (and many are occupied), 6 more are scheduled for inspection this week and the balance should be finaled by next week – except for three that are on hold or out of the program through no fault of Habitat (such as the proposed homeowner moving away). One more that had previously been designated “out-of-the-program” will be built in an accelerated build; the homeowner has changed his mind and now is asking Habitat to move forward.
The St. Bernard houses are slightly larger than a “standard” Habitat house and are built to the same high standards. They are fully inspected and all must pass all inspections. The only “roof leak” that has been alleged was not a roof leak at all. One of the inspection requirements is for a “pressure test” of the plumbing system; the test did what it was supposed to do, it detected a poorly-sealed joint that was repaired and subsequently passed inspection. Unfortunately, the homeowner became convinced (with the support of a roofing contractor who has quoted to do a complete re-roof job) that the water on the downstairs wall (since repaired and replaced as needed) was from a roof leak; that is incorrect. To Habitat’s knowledge, while there may have been the occasional glitches that have to be repaired to pass inspection, all plumbing and electrical work has been up to standard. It is important to note that Habitat employs licensed subcontractors to do that work (it is not done by volunteers), just as any contractor does, and, further, that any problems with their work is under their warranty.
As to financing, the “hard cost” (i.e., nothing for overhead for Habitat) of these houses is coming in from $75,000 to $85,000 (and occasionally more). As the homeowners were advised almost from the beginning, there would be additional cost that would need to be paid out of LRA funds. True, the initial estimate was that that amount was probably going to be in the range of $25,000 to $28,000; but, that was before it became apparent that Camp Coastal was not going to supply any (significant amount of) material or, more importantly, the licensed subcontractors. Ultimately, the homeowners were to provide EITHER $24,000 or $34,000 (depending on the size and design of the house) OR to execute a 0% Habitat mortgage for $50,000 to $60,000 (this has a net present value – i.e., “cash value” – of approximately $24,000 to $34,000). No homeowner is asked to pay more than $34,000 cash; any statement that they are having to pay “up to $60,000” is passed on a complete misunderstanding of the financial situation. In any event, the Aramco funding and value of the Camp Coastal material and line-of-credit is a total of $19,800 per house. The cash payment (or value of the 0% mortgage note) from the homeowner is $28,000 to $34,000. This is a total of $47,800 to $53,800 total payment on the house cost. Habitat is STILL funding an additional $27,200 to $31,200 per house cost out of funds it has raised elsewhere for the “regular” Habitat program. This amounts to a significant grant of thousands of dollars to these families. In addition, it should be emphasized that LRA funds are specifically designated for rebuilding a home; some legal authorities have argued that they cannot be used for any other purpose (although it is doubtful that anyone would have the temerity to prosecute someone who spent it on other living expenses).
New Orleans Habitat, apparently along with many others, had the apparent misfortune to become briefly involved with Camp Coastal. It in no way “partnered” with them; it responded to the request of St. Bernard officials to help rebuild their Parish. Despite a longer and more difficult project than had been hoped for, Habitat has, nonetheless, built homes for almost forty St. Bernard residents and subsidized those homes with substantial funding. I trust that Mr. Morrison and any others with doubts, now that they have (as the late Paul Harvey put it) “the rest of the story”, will understand that New Orleans Habitat has been more than “fair” and will feel that they can once again support the organization.
Thanks for explanation. This is a topic we’ve long neglected though the threads receive consistent traffic I did google up and made the connection between the HOLA area Habitat and Camp Coastal.
I do not believe there had been much press coverage while the investgation into the criminal allegations involving Sweeney and Molenhouse has continued. Eventually we’ll have more on it here on slabbed.
Thanks again for stopping in and welcome.
sop