Rock County delays decision on $300,000 to replace rescinded HOME grant for Edgerton veterans housing

The Rock County Board of Supervisors on Tuesday postponed a decision on a $300,000 request from Edgerton Community Outreach to replace a federal HOME grant that a fiscal agent refused to pay.

The board voted 15-9 to delay action until its Sept. 11 meeting and directed supervisors to submit questions to the county administrator by the following Tuesday at 5 p.m. so staff could prepare answers. The request had been introduced by Supervisor Tom Bridal and seconded by Supervisor Towns.

The resolution under consideration would use prior-year sales-tax funds to make Edgerton Outreach whole after a $300,000 HOME grant was rescinded. Supporters told the board the money was counted in the project's capital stack and that the building now houses six units for veterans.

"I'm here this evening to ask your support of the resolution to fund the 210 West Fulton Street Veterans Housing Project," said Sarah Williams, executive director of Edgerton Community Outreach. She told the board the grant's rescission created a gap that threatens the project and the nonprofit.

Speakers representing the project described fundraising and local commitments made over several years. Fred Falk of the Edgerton Veterans of Foreign Wars told the board his post had donated $100,000 in March 2022 and helped raise more than $175,000 through a hike fundraiser. Ray Oswald, president of Edgerton Outreach's board, urged the board to "please keep Outreach whole by providing $300,000 to replace a contracted grant that was rescinded for reasons outside of Outreach's control or influence."

Supervisors raised multiple concerns. Supervisor Sutterlin said the board had incomplete financial information, including what he characterized as a larger $800,000 shortfall and questions about operating viability. Supervisor Gorman asked for a clear timeline of county actions and what contractual obligations, if any, Rock County had assumed. Supervisor Stevens and others noted the draft resolution did not spell out the county's alleged error or require accountability measures from the nonprofit.

Supervisor Woodman moved to postpone the measure to the board's next regular meeting; Supervisor Whitlitz seconded the postponement, which passed 15-9. The chair instructed supervisors to send specific questions to County Administrator John Light by the Tuesday following the meeting so staff could prepare responses and coordinate with a designated spokesperson from Edgerton Outreach to appear on Sept. 11.

According to testimony and staff remarks read into the record, Edgerton Outreach had been awarded $300,000 in HOME funds in 2022 through a consortium in which Janesville is the fiscal agent; the project was completed and six apartments occupied. Outreach attempted to claim the grant after project completion but was told the fiscal agent would not approve payment because the county had not signed a required contract in time. The record shows county staff located and returned a signed packet in early December 2024, but the fiscal agent still declined payment. The regional HUD office in Milwaukee told Outreach there was no appeal beyond the fiscal agent's decision, according to testimony.

The resolution proposed using $300,000 from the county's prior-year sales-tax account; the administration noted more than $1 million remains in that account. The board did not adopt the resolution and set a hearing and decision for Sept. 11 after staff and Outreach representatives prepare additional information.

Votes and formal actions taken on the Edgerton item were procedural: the original motion to approve the funding was on the floor (moved by Supervisor Bridal, seconded by Supervisor Towns), then a separate motion to postpone (moved by Supervisor Woodman, seconded by Supervisor Whitlitz) passed by roll call. No appropriation was made.

The board also asked staff to assemble a timeline and documentation showing when the county acted on the HOME packet, the nature of any county contractual obligations, and what steps, if any, were taken to pursue the federal funds through the fiscal agent.

If the board votes on the resolution at the Sept. 11 meeting it will be with the additional materials staff compiles in response to supervisors' written questions due the preceding Tuesday at 5 p.m.