Federal Housing Grants Reassigned Following Nonprofit Closure in Wisconsin
The sudden shutdown of a long-serving nonprofit in northeast Wisconsin has prompted the federal government to reallocate crucial housing grants. This move aims to ensure that over 100 low-income families continue to have a place to live despite the organization’s unexpected closure.
Wisconsin U.S. Senator Tammy Baldwin announced on Friday that she had discussed the issue with HUD Secretary Scott Turner, who confirmed that the funds initially overseen by the nonprofit Newcap would indeed be transferred to other agencies.
The nonprofit Newcap, which had been a cornerstone for low-income assistance in 10 counties for six decades, closed abruptly on March 31. The closure was tied to significant financial difficulties and has sparked calls for a thorough investigation into its management of public funds.
Approximately 134 households faced uncertainty, depending on federally-funded housing programs that were in limbo following Newcap’s closure. Actions were swiftly taken to redirect these grants to other nonprofits to maintain housing stability for those affected.
Newcap has since filed for Chapter 11 bankruptcy, partly to facilitate the transfer of its housing programs. In the court filings, Newcap expressed frustration over what it described as a lack of communication from the U.S. Department of Housing and Urban Development (HUD) regarding the grant transfers.
The Wisconsin Balance of State Continuum of Care, an organization that coordinates homelessness services across a large portion of the state, had proactively submitted requests to HUD to transfer the four federal housing grants that were awarded to Newcap.
Both Senator Baldwin and Governor Tony Evers were among the elected officials who urged HUD to expedite the grant transfers to prevent any disruption in housing services.
Senator Baldwin reiterated her commitment to resolving the issue, saying, “134 Wisconsinites should never have had to worry about not having a roof over their head just because the Trump Administration wouldn’t complete some paperwork. We have capable, qualified, and willing organizations that can help ensure these Wisconsinites will not lose their homes, and it is welcome news that the Administration heeded my calls and is putting these families first.”
Carrie Poser, Executive Director of the Wisconsin Balance of State Continuum of Care, highlighted the importance of the grant transfers, stating, “These programs need more than just rent payment. The clients that are in these programs are in different stages of crisis, and the reason they needed the programs in the first place is because there’s substantial barriers to them maintaining housing on their own.”
Poser is actively seeking further clarification and confirmation on the grant transfers following Baldwin’s announcement.
State Representative Amaad Rivera-Wagner, D-Green Bay, expressed his gratitude for the actions taken by Baldwin and Turner, emphasizing, “We can hold systems accountable and still take care of people at the same time. In Green Bay, we take care of each other. And today, more than 100 families will continue to have a place to call home.”
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