A Newcap sign outside of its Green Bay office. PC: Fox 11 Online
(WTAQ-WLUK) — Federal officials have reportedly approved the transfer of Newcap housing grants to other Wisconsin nonprofits to keep the aid flowing for those in need.
Sen. Tammy Baldwin, D-Wisconsin, said in a statement Friday she spoke with Department of Housing and Urban Development (HUD) Secretary Scott Turner to confirm the grant transfers, which will ensure 134 Wisconsin families Newcap served can continue receiving housing support.
HUD said in a statement:
HUD is committed to supporting excellent providers and rooting out waste, fraud and abuse. The CoC program is a competitive program. CoCs, including those in Wisconsin, are expected to reallocate funding from poor performers to high performers during the competition so that individuals and families are not harmed by the failures of poor performers.
Baldwin added in a statement of her own, “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 for Wisconsin Balance of State Continuum of Care, said she is working to get confirmation the grants have been transferred.
Last month, the decades-old nonprofit Newcap announced it would cease operations amid allegations that taxpayer money was being misused. As a result, 134 families were at risk of homelessness if HUD did not transfer Newcap grants to other nonprofit agencies.
The Wisconsin Balance of State Continuum of Care submitted requests to HUD to transfer the housing grants to eligible and qualified nonprofits to ensure continuity of services.
Before its closure, Newcap filed for bankruptcy in federal court with documents showing the nonprofit owes money to 209 parties, totaling $4.03 million. Last week, a bankruptcy court approved Newcap’s plan to pay its employees.
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