U.S. Senator Tammy Baldwin announced she successfully pushed the U.S. Department of Housing and Urban Development (HUD) to approve the transfer of Newcap grants to other capable and qualified organizations.
The transfer of funding will ensure that the 134 Wisconsin families Newcap served can continue receiving housing support, she said.
“We have capable, qualified and willing organizations that can help ensure these Wisconsinites will not lose their homes,” Baldwin said.
On March 31, Newcap — a nonprofit serving 10 Wisconsin counties since 1965 — announced it would cease operations, ending its role administering key housing and supportive service grants.
As a result, 134 families were at risk of homelessness if HUD did not transfer those grants to other nonprofit agencies.
Also, a federal bankruptcy court has approved Newcap’s plan to pay its employees.
Newcap filed for bankruptcy in federal court, and documents show Newcap owes money to 209 parties, totaling $4.03 million.
Newcap asked the court to allow them to use some of their assets to pay employees for work done until the bankruptcy filing April 15.
A meeting with the court and creditors is scheduled for May 18.
