Marshall Fire victims who weren't eligible for $10 million in donated rebuilding funds hoping to receive upcoming handouts
There is still $22 million in donations from generous people across Colorado waiting to be given to survivors of the Marshall Fire.
Some people who lost everything in the fire say they're hopeful the money won't have the same restrictions as the last $10 million chunk that was distributed for rebuilding efforts. So, CBS News Colorado asked the head of those funds who's going to benefit, and when.
It's been 20 months since the Marshall Fire ravaged Boulder County. More than a thousand buildings burned down, and two people were killed. The Community Foundation Boulder County immediately set up the Boulder County Wildfire Fund to collect donations for fire victims, and raised $43 million.
Within the first 72 hours, the organization's executive director, Tatiana Hernandez, says $7 million went out to 90% of the fire's victims in direct financial assistance payments.
"In the immediate aftermath of the fire, we took the philosophy that getting dollars in hand was of the utmost importance, and making sure that that amount was a meaningful amount that would allow people to put down a security deposit on a house, buy a new car, get a new computer, whatever they felt was most important to stabilize their family," Hernandez said.
Since then, more than $3 million was spent on additional assistance programs, like mental health supports and insurance navigation.
But it was a $10 million distribution that has some fire survivors frustrated. The community foundation stipulated that survivors who lost their homes could only receive $20,000 checks from that $10 million if they chose to rebuild on their original land. In total, $20 million has been allocated to go to those rebuilding efforts, but only $10 million has been distributed thus far, according to officials with the fund.
Even if a survivor chose to move somewhere else in Boulder County, they still wouldn't be eligible for the money.
CBS News Colorado found nearly half of the fire's victims may not be receiving those $20,000 checks, simply because of where they chose to rebuild.
Local government data shows that of the 1,084 structures that burned down in Superior, Louisville, and unincorporated Boulder County, so far only 588 new building permits have been issued 20 months later. While it's not an exact indication of how many people chose not to move back, the data provides a ballpark estimate.
Frank Valdez, who lived in Louisville for more than 20 years, is one of those people.
He loved his home there, and had planned to stay there for the rest of his life.
But he says the fire wiped out those plans, that it was too expensive for him to rebuild on his land, and now he's renting in Fort Collins.
"They have stacked the deck in favor of the rich, only the rich can rebuild here, you have to have $1.2 million in the bank, or you have to be able to get a loan at that amount… and a lot of people in this neighborhood don't have that kind of cash," Valdez said. "It's not fair, there's no way it's fair."
Valdez, a solutions architect in data governance, who used to work out of his Louisville home, says he only received $600 bucks and a toiletry kit, and he makes too much money to receive other funds.
However, the Boulder Community Fund provided proof to CBS News Colorado of a check that the organization gave to Valdez of a $2,500 check the organization gave him immediately after the fire. Something Valdez says he's not aware of receiving.
Regardless, Valdez says $2,500 is not $20,000, and the rebuilding assistance checks should be distributed equitably to all survivors of the fire.
"It's very frustrating, I mean you're trying to piece your life back together," he said. "They placed qualifications based upon your income, and it's not based upon your income at the time of the fire, it's based on your current income. So, if you've improved your economic standing through your career, and you're making a little more salary every year, you've just priced yourself out of being able to access some of these funds."
But Hernandez insists there are still a plethora of resources and financial assistance dollars available to people, even if they moved away.
"Well, there's absolutely funds available to people who are not rebuilding," Hernandez said. "Anyone who is in financial straits has access to support, and it's again the same place to apply for rebuild funds, you can apply for those unmet need funds... we've supported rental assistance, we've supported healthcare needs, we've supported childcare needs."
To apply for those additional funds, click here.
Hernandez says the community foundation is a nonprofit organization that has managed dozens of funds like the wildfire fund for the last three decades.
"One of the biggest reasons I think why our community foundation is looked to for leadership in the aftermath of events like this is because we have the trust of our community," she said. "People have seen time and time again that we will listen, that we will be curious, and we'll approach things with humility and deep sense of care."
She says the stipulations on the $10 million in rebuilding funds distributed were put in place to help bring the communities in Boulder county back to life.
"There are members of our community who were donors to our fund, because they are well resourced, and they felt even though they suffered losses in the fire, they wanted to give back to their community, so we understood that it's important for us to look at where's the need, where's the highest need and make sure that we're distributing funds as equitably as possible," Hernandez said.
The fund has $22 million remaining to be donated. Hernandez says the community foundation board has not yet determined exactly how or when most of that money will be spent, and it probably won't be decided until at least the end of the year.
"You know, $43 million sounds like a lot of money until you put it in the context of a $2 billion event and hundreds of millions of dollars in in under insurance gaps. Sometimes it feels like we've been given the unenviable task of trying to stop a geyser with a plunger," she said. "So, as we look to the future, we're looking at what happens at the end of this year when people's additional living supports end."
Valdez hopes it will go to people who previously missed out.
"Let's get into the heads of the people that were donating," he said. "They were thinking, 'oh my gosh, what a devastation to people in our community, and I want to donate to help them.'"
Hernandez said there's no timeline yet on when a decision will be made regarding whether or not the remaining funds will be donated to people who weren't eligible for the $10 million already distributed.
"I can't say at this time," she said. "We have a committee who has discussions and makes recommendations to our board and our board has the ultimate decision-making power. So those conversations are happening, have been happening, and are informed by the fire survivor community."
So far, there aren't any further public meetings scheduled to discuss those options.
CBS News Colorado is told part of the delay on releasing the funds sooner is purposeful, to help victims in the long-term recovery process, something some victims have told CBS News Colorado they agree with.
Hernandez says that's one of the benefits of giving to a community fund following a mass tragedy -- the money will be spent strategically.
With a barrage of natural disasters across the United States this summer, donations have poured in to help those who have lost everything, but where should Americans consider donating to make the biggest impact for victims in their time of need?
Experts say private online fundraisers can be useful, especially if the person managing the campaign is someone you know personally, because the donations will go directly to victims involved. However, the IRS says it's not responsible for regulating online crowdfunding accounts, and that money can be subject to income taxes. Additionally, fraud can sometimes be a problem.
Hernandez doesn't discourage people from giving to online campaigns, but says foundations like hers can help maximize the dollars donated.
"When you're looking at an event of the magnitude that we saw here, that we saw in Maui, making sure that there's an entity that can work with the systems that support people, and that can leverage those systems, partner with those systems, so the greatest number of people can be supported to the highest extent possible, I think that's a really powerful tool, as well," Hernandez said.
Valdez sees it differently.
"My message to them would be to release the funds to the people who need the funds," he said. "Get rid of the restrictions, there is no reason to have the restrictions."
CBS News Colorado is told the IRS is the only agency that has jurisdiction over how the foundation spends the funds, that offices like the state attorney general do not have jurisdiction.
The IRS says it cannot comment about a specific organization.
Governor Polis supported the fund, and encouraged people to donate to it following the fires. Conor Cahill, Polis' press secretary, provided the following statement for this story:
"Governor Polis understands that it has been a tough road for many people in the community following the Marshall Fire — whether you lost your home, know someone who did, or are still grappling with the devastation this fire caused in the community – the Governor wants to assure Coloradans that you're not alone. Although Governor Polis does not control this fund, he and his administration are committed to the community and won't rest until we've helped more homes rebuild, the State is here as a partner, and we will be until every last house is completed. Nonprofit organizations like this foundation are an essential part of recovery efforts following community disasters to supplement many other efforts as the community builds back."
If you are a victim of the Marshall Fire seeking information about how to apply for donated funds, click here.
