In August 2016, the New York Office for People With Developmental Disabilities (OPWDD) and the state Attorney General shut down Federation of Multicultural Programs (FMCP) due to poor service and financial problems. FMCP provided housing, rehabilitation and health care for people with developmental disabilities in Brooklyn. The individuals served by FMCP have been transferred to other provider organizations.
An OPWDD spokeswoman said that the Attorney General’s office filed for dissolution of FMCP in December 2015, and a court order to dissolve the center was issued in state Supreme Court in Albany County in January 2016. She said OPWDD took action to “protect the individuals served by FMCP when it became clear that the provider had numerous documented program and fiscal challenges.” FMCP initially filed for bankruptcy in the 1990s. In 2011, OPWDD placed FMCP on early warning status due to “serious concerns related to agency internal controls as well as significant compliance issues at one of the intermediate care facilities (ICF) operated by the agency.” OPWDD reiterated its concerns in a second warning letter in 2012.
According to local news reports, court papers indicate that FMCP has a $9.1 million budget deficit, and debts exceeding $1 million. The organization owes debts to the union pension fund for SEIU 1199, the Cerebral Palsy Association, and the state insurance fund, which covers workers’ compensation, as well as debts numerous health agencies and utilities.
FMCP’s director Danny King, was removed in mid-2016. OPWDD appointed Tom Lydon, chief operating officer of Lifespire (also an OPWDD provider organization) as independent receiver to direct operations. On June 25, 2016, the court ordered FMCP’s buildings and consumers to be distributed to the following four OPWDD provider organizations: Institute for Applied Human Dynamics; Services for the UnderServed; Birch Family Services; and Evelyn Doughlin Center for Serving People in Need, Inc., d/b/a The Thrive Network.
FMCP was founded in 1965. On its federal Form 990 for the fiscal year ended June 30, 2014, FMCP reported $23.6 million in revenue and $25.7 million in expenses, with program expenses of $23.2 million. In addition to a one-year operating loss of $2 million, it also reported assets of $5.5 million and liabilities of $14.6 million.
A link to the full text of “New York State OPWDD Second Early Alert Warning Notice To Federation Of Multicultural Programs,” which was issued in 2012, may be found in The OPEN MINDS Circle Library at www.openminds.com/market-intelligence/resources/042516nyopwdd2ndwarningfederation.htm.
For more information, contact: Jennifer O’Sullivan, Director of Communications, Communications, New York Office for Persons With Developmental Disabilities, 44 Holland Avenue, Albany, New York 12229; 518-474-6601; Email: email@example.com; Website: www.opwdd.ny.gov/opwdd_contacts/communications.