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Sen. Baldwin: HUD to transfer Newcap housing grants to other nonprofits

Wisconsin U.S. Sen. Tammy Baldwin announced Friday that the federal government will transfer housing grants from a now-defunct northeast Wisconsin nonprofit to other organizations.

In a statement, Baldwin’s office said she spoke with HUD Secretary Scott Turner by phone Friday, and he confirmed that the funding would be transferred, preserving housing for more than 100 low-income households in the region.

Newcap, a nonprofit that provided services to low-income residents of 10 counties — including Florence, Marinette and Forest — for 60 years, abruptly closed on March 31. It came amid major financial challenges and calls from state and federal lawmakers to investigate its handling of taxpayer funds.

The agency’s closure left 134 households that relied on its federally-funded housing programs in limbo while they waited to see if the federal government would transfer the grants for those programs to other nonprofits.

Newcap filed for Chapter 11 bankruptcy this month, in part, to transfer its housing programs. In court filings, Newcap said the U.S. Department of Housing and Urban Development was “uncommunicative” regarding the transfers.

Ahead of the closure, the Wisconsin Balance of State Continuum of Care, a nonprofit coordinating homelessness services across 69 of Wisconsin’s 72 counties, submitted transfer requests to HUD for four federal housing grants that had been awarded to Newcap.

Several Wisconsin elected leaders, including Baldwin and Gov. Tony Evers, have urged HUD to quickly transfer the grants to other agencies.

Baldwin’s office said the senator followed up with Turner by phone on Friday and he confirmed the funding would be transferred.

“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,” Baldwin said in a statement. “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.”

Earlier this week, Carrie Poser, executive director for the Wisconsin Balance of State Continuum of Care, said transferring the grants was critical to keeping vulnerable residents housed.

“These programs need more than just rent payment,” she said. “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 said in an email she was still working to get clarification and confirmation on Baldwin’s announcement Friday afternoon.

In a statement, state Rep. Amaad Rivera-Wagner, D-Green Bay, said he was grateful to Baldwin and Turner for taking action to protect families from being harmed by “circumstances beyond their control.”

“We can hold systems accountable and still take care of people at the same time,” he said. “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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