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City officials say Social Development Commission is reorganizing, vendors reimbursed; unpaid employee payrolls being addressed
Summary
City officials and SDC representatives told the Finance & Personnel Committee they paused most city payments to the Social Development Commission, reprogrammed several federal and local awards to other agencies, reimbursed most contractors, and are working with the state and attorneys to resolve unpaid employee payroll claims.
Officials from the city, the Social Development Commission (SDC) and SDC counsel updated the Finance & Personnel Committee Jan. 15 on the status of city funding, outstanding payments and the commission’s reorganization.
Sponsor Alderwoman Melele Cox said the communication was meant to check that previously allocated funds were spent as intended and to learn whether SDC remained able to provide contracted services. City CDGA director Mario Higgins said multiple funding streams to SDC — including CDBG, HOME and ARPA allocations — were reprogrammed when SDC became unable to carry out certain work. "Those funds were reallocated during the that cycle," Higgins said, listing allocations that were redirected to other agencies, including Housing Resources, United Community Center and Habitat for Humanity for homebuyer counseling and energy-efficiency work.
Higgins said SDC’s 2024 allocations…
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