Covid Monopoly Money
Let’s play a game, shall we? It’s called the Harris County COVID Monopoly Game—our take on a classic, because only the government seems to do things this stupid.
We’ve been playing the great American game Monopoly for ninety years! You know how much money you get when you are about to begin your big financial quest in this game? Just 1,500 bucks. And you’re supposed to buy hotels with that? Yes, and avoid jail too.
There’s another definition about the use of monopoly money.
Dozens of TikTok videos celebrate reckless spending. Especially on foreign trips…
Millions have watched this kind of wastefulness on social media display.
“But let’s hope taxpayers across the country are ready to watch another example of reckless spending,” Wayne Dolcefino said.
Are you watching Elon? This one is brought to you by Harris County Commissioners court.
I bet you Rodney Ellis and the gang won’t like us for telling you… but I kind of suspect they already don’t.
So, let’s blow the lid off this latest deal… with another Dolcefino exclusive.
“And this program is a really win-win for all of us,” says Adrian Garcia.
Aren’t you scared when a politician says that? But Harris County Commissioner, Adrian Garcia, was all excited last May to vote on a new loan program using some of the 131 million dollars in left over covid money.
“This is a fantastic ARPA funded program that would provide small businesses with much-needed capital for loans with low interest rates and flexible terms,” said Adrian Garcia.
“The pandemic was over 3 years ago. But the covid money is supposed to be spent by the end of 2026 but, boy is Harris County clever,” Wayne Dolcefino said.
They figured out a way to move the money into a new special flexible account so they can spend it years later. Until October 2029.
Unlike the game of monopoly where you often have to pay back the bank, democratic politicians like Rodney Ellis never seem to believe in returning tax money. They are raising our property taxes despite a growing nearly three hundred-million-dollar toll road slush fund.
Enter the latest taxpayer funded brainchild from your Harris County government. The opportunity fund, a loan fund, most of the money set aside for minority and women owned businesses.
Maybe this was an early warning sign.
It took five months to actually give folks a chance to submit applications for the money.But commissioner Ellis did roll it out with a cool promo video.
“This is the largest investment by a local unit of government city or county or the state for that matter in a fund of this type, and we’re just so proud to have been trendsetters,” Rodney Ellis said.
Hey Rodney! As you can see, I like to be a trendsetter too, but what’s the price tag for all this.
“But using Biden Harris ARPA dollars, The Harris County Commissioners court approved eight million dollars, which our partnered PeopleFund matched with nine million dollars to create a 17-million-dollar revolving loan fund,” Rodney Ellis said.
PeopleFund is a non-profit lending agency up in Austin.
“We are building stronger communities,” Gustavo Lasala Said.
Commissioner, you left out the fine print, so we took a look at the actual contract.
We’re actually spending up to 10.5 million dollars on the ARPA monopoly money. And this charity PeopleFund will get paid up to 1.6 million to administer the loans. They get to keep the interest on the loans too.
And who’s in charge of making sure this program works? The Harris County DEI department, which is already under fire for mismanagement for not doing what they are supposed to do, for an almost totally remote work force.
“These funds will be loaned to business still recovering from the impacts of covid or those unable to secure adequate capital in the private market,” Estella Gonzalez said.
The opportunity fund is only supposed to be for folks who run their business in Harris County and were negatively affected by covid. But look at the application, it doesn’t even mention covid.
But let’s check six months after that big news conference to see how Harris County is becoming more equitable.
We begin with a company called Global Investment. They submitted an application. Maybe we’re helping the entire world.
“We’re looking for global investment and they got a $15,000 loan. So, we’re going to see how much it helped,” Andrea Palacio said.
Global Investments turned out to be a car repair shop in a strip center full of them.
“The door’s locked,” says Andrea Palacio. “But we’re here during business hours, so. All right. So, I guess they’re closed.”
The applicant doesn’t fill in some interesting questions on the application. “How much time business is open”, whatever that’s supposed to mean.
And it was optional to answer questions about the number of people in the household.
Including marital status. Yes, the application does say martial status instead. Our DEI folks do not pass go.
“Anybody home? Anyone here? Hello?” Andrea Palacio said.
Next, we went to J.A.’s auto sales. This sounds like a car shop, and it is.
“Is this J.A.’s auto sales?” says Andrea Palacio.
“I don’t speak English”
The business owner Maria Ferrufino wasn’t there, but she called us later, a translation provided by her daughter.
“She said Harris County did loan her $15,000 and it did help them a lot,” says daughter of Maria Ferrufino.
Actually, the 15 thousand dollars Maria got from Harris County was a covid grant she doesn’t have to pay back…But her family business got a 25-thousand-dollar loan too from the opportunity fund.
“She is still paying her loan. It’s on autopay and she’s paying it,” says daughter of Maria Ferrufino.
“How was your business affected by COVID-19?”
“She said it was in multiple ways. There were no sales, inventory. They were about to close the business,” the daughter of Maria Ferrufino said.
“Hello! Is anybody there?” Andrea Palacio said.
Our last stop was an apartment complex in northwest Harris County. Walters Rd, Apartment 14E.
“This is supposed to be Fantasy Kids,” Andrea said.
This apartment is supposed to be full-time day care, but where are the kids? No one is here in the middle of the day. The business owner got fifteen thousand dollars. We looked at state records, daycares are supposed to be licensed. Fantasy Kids doesn’t have one.
We investigated two other loans, a total of five.
Just five. It turns out in the eleven months since commissioners voted for this opportunity fund, only five loans have been given out. $85,000.
If that’s not bad enough, last August we started sending people fund money. A lot of it. You know how much we have paid the PeopleFund in advance of handing out a single dime?
5.7 million dollars!
Are you kidding me? They could have already made 100 grand just in interest with all that Harris County covid tax money just sitting in their bank account.
“I’m the senior loan officer for the Houston area in charge of that program,” Cindy Urrutia said.
Cindy may be a senior loan officer, but she told us her bosses at people fund would have to call us back, they didn’t. In fact, their contract says they aren’t allowed to talk to people like us. Or you.
But we did learn that one of the five loans possibly shouldn’t even be counted. The unlicensed day dare that has invisible children.
“I’m wondering if that number shouldn’t have been applied to y’all, because we do help others,” Cindy Urrutia said.
So maybe there are just four loans for 70 thousand dollars. It sounds like the folks at PeopleFund are comingling loan programs under the crack supervision of our DEI department.
And that made us want to take a closer look at the PeopleFund itself.
“So, imagine how this fund supercharges the impact that we will have here in this area,” Gustavo Lasala said.
Gustavo Lasala stood with commissioner Ellis last October to promise more equity.
“We plan to support at least 400 businesses,” Gustavo Lasala said.
But now Gustavo doesn’t want to talk anymore.
The 2023 tax return for PeopleFund shows Gustavo is paid $281,000 to run this lending charity. The charity lost money in 2023, even though they brought in 11 million dollars. So, the millions from your Harris County tax money last year, it was a big infusion of cash for them
But Gustavo is clearly compensated other ways. The Texas secretary of state says in the very same building as the PeopleFund charity, Gustavo runs a for-profit lending service.
PeopleFund owns 50 percent of PeopleFund advisors LLC. A for-profit company. And it looks like their for-profit employees do work for the charity.
In 2023, there was a transfer between the companies of 1.5 million dollars.
Sounds like they’re real busy at PeopleFund.
“Me, by myself, in Houston, I did like, around 4 million last year,” Cindy Urrutia said.
That’s another reason we have a growing list of questions for Estella Gonzalez. The 259,000 dollars a year head of the county DEI program. Who’s been avoiding our questions for weeks.
“The department of economic equity and opportunity is excited and honored to launch this new program,” Estella Gonzalez.
Here is the good news. PeopleFund has to eventually pay back money they don’t use, but that doesn’t even start until october 2029, after they’ve had the money for 5 years!
Isn’t it time we ask why we gave them millions in advance? Isn’t it time for Harris County commissioners to hold another press conference to explain to the folks out there, what the hell they’re doing?
Hundreds of Harris County employees have been working from home three years after the pandemic. Another DEI program spent millions to give advice for small business owners.
A lot of it used to watch videos that are absolutely free to watch.
Since COVID-19, the budget for our DEI department has exploded from 1.5 million to 8.7 million dollars in just 4 short years!
You get what you for vote for.
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