Hale House Made `Honest Mistake' In Renting To Middle-Class Tenants, Lawyer Says

Jet, April 23, 2001

The famed Hale House in New York City has been hit with allegations that it has been renting apartments meant for struggling mothers to middle-class tenants.

The Hale House, founded by the late Clara "Mother" Hale, provides shelter and other services to former drug-addicted mothers and their children.

The policy that allowed middle-income tenants into buildings meant for low-income residents was a mistake by the Hale House administration, according to an attorney for the charity organization.

"It was a mistake, but it was an honest mistake," said Douglas Kellner at a news conference in New York.

That policy has led to more than half the current residents of the two buildings being over the income limits. Hale House has rented apartments in its Homeward Bound and Hale Haven buildings to working and middle-class residents for up to $800 a month, according to an account given in the New York Daily News.

At a press conference, Lorraine Hale, president and CEO of Hale House and daughter of its founder, Clara Hale, spoke against the tone and timing of the report which came on what would have been Clara Hale's 96th birthday.

"Hale House will endure; our spirit may be wounded, but it is not broken ... Our foundation is solid and will stand the test of time," she said.

Kellner disputed the reported news account in the Daily News, noting that the agreement between the city and Hale House allowed for two buildings, Homeward Bound and Hale Haven, to be converted from temporary shelters to permanent housing.

The decision to do so was made by Hale House in 1992 and by 1996, the buildings were available for rent. That's when the mistakes were made, Kellner said.

He said Hale House did not have enough legal advice at the time, and that neither Hale nor the city's Department of Housing Preservation and Development looked at the original contracts and realized that Hale House was not allowed to rent apartments to middle-income residents.

"Hale House thought it was renting in accordance with the guidelines."

Hale House spokesman Jesse DeVore issued a press statement: "Unfortunately, these buildings lost money from the very inception because many of the people we sought to help could not or would not pay any rent whatsoever. Hence, we were forced to readjust our original mission. In order to help some women we had to reduce the financial hemorrhage by seeking tenants willing and able to pay rent."

Hale House founder Clara Hale died in 1992 at age 87. Her work with hundreds of drug-addicted infants drew accolades from the White House, and the charity became a favorite of corporations and celebrities.