The dispute between Habitat for Humanity Canada and its former Prince George affiliate has landed in court.
The national organization has filed a notice of civil claim in B.C. Supreme Court in Vancouver in answer to a refusal by the local group, now known as Hearts and Hands for Homes Society, to hand over its assets after it was disaffiliated from Habitat for Humanity Canada.
The claim outlines a falling out that dates back to September 2012 when Habitat for Humanity uncovered a "multitude of problems and issues" while conducting a routine assessment of Hearts and Hands and operation of the ReStore, a store on Queensway that sells used furniture and salvaged building material.
They included a "number of conflicts of interest" related to the board of directors, "a serious human resources issue in the management of the Prince George ReStore" and a failure to meet 34 of the 56 standards affiliates are required to meet.
By January, the ReStore manager had been let go and the substance of the conflicts within the board had been addressed.
"However, Hearts and Hands had made little progress in addressing the deficiencies in the standards," according to the notice of claim.
In April, a mediation was held but, according to the claim, the board "did not demonstrate that it understood and accepted its responsibility" to meet its legal obligations to Habitat Canada and in May, Hearts and Hands was put on a three-month probation.
In July, an independent third party retained to assess Hearts and Hands reported back that little or no progress had been made. In September, Habitat Canada representatives flew to Prince George to reassess the issues and review the local society's books and records.
"The Prince George board was either not willing or able to muster a meeting during that period, and did not provide Habitat Canada access to Hearts and Hands books and records," the claim says.
In a teleconference later the same month, "no commitment was made by Hearts and Hands to attempt to address the issues," and three days later, Habitat Canada's national board passed a two-thirds vote to disaffiliate Hearts and Hands.
Since then, according to the claim, many of the Prince George board members have resigned and now has only four members, two fewer than the minimum permitted. And while Hearts and Hands, which changed its name from Habitat for Humanity Prince George Society on Oct. 24, confirmed termination of its affiliation agreement, it has "refused to acknowledge that it was bounded by the asset transfer clause."
Hearts and Hands also began removing inventory from the ReStore and threatened to reopen, which it has since made good on, under the name Helping Hearts and Hands For Homes Salvage Store at the same location.
Habitat Canada is seeking a court order to have the Prince George assets turned over to the national body. The claim lists six "partner family mortgages" for homes built in Prince George, the ReStore and lands and two other "future duplex" properties as assets, along with various bank accounts, equipment and inventory.
Hearts and Hands has not yet filed a response to the court.
