Block grant program moving out of WEDC

Associated Press

Updated: Dec 18, 2012 2:27 PM

MADISON, Wis. (AP) — A block grant program will no longer be administered by Wisconsin's semi-private economic development agency after concerns were raised by the federal government.

Department of Administration Secretary Mike Huebsch (HIPSH) said Tuesday that DOA will assume administration of the program after the U.S. Department of Housing and Urban Development questioned whether it was legal for the quasi-private Wisconsin Economic Development Corp. to award the grants.

HUD said in the August letter that WEDC failed to follow federal law and its own policies in issuing Community Development Block Grants.

Huebsch told the WEDC board Tuesday that DOA will now administer the program in order to satisfy the federal government's concerns.

Democratic state Rep. Peter Barca says it's "very unfortunate" this problem was not identified before WEDC was created last year.

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