The Social Development Commission spent 2025 trying to restore services and funding in the face of legal challenges, board friction and government audits and reviews.
Commonly known as the SDC, the organization has a long history of providing services for low-income residents in Milwaukee County, including tax help, job training and rental assistance.
Since it stopped running its programs in April 2024, SDC has been trying to create a path to resume its anti-poverty work.
Here are some of this year’s major stories on the SDC.
March/April
State holds public hearing
In March, the Wisconsin Department of Children and Families scheduled a public hearing on SDC’s status as a community action agency.
The community action agency designation allows SDC to receive a federal block grant to support its anti-poverty work.
Jorge Franco, interim CEO and chair of the SDC board, said at the board’s next meeting he felt the department had not been transparent with SDC about its concerns on SDC’s ability to restart services and meet other requirements while they had been meeting and providing documents over past months.
In early April, the Department of Children and Families held a hearing in Milwaukee on SDC’s community action status to get public comments from members of the community, who spoke in favor of SDC.
May/June
State files wage claims lawsuit
The Wisconsin Department of Justice, on behalf of the Department of Workforce Development, filed a lawsuit in May that alleges the SDC failed to pay $360,000 in wages and benefits owed to former employees, according to court records.
William Sulton, SDC’s attorney at the time, acknowledged SDC owes workers wages, but said the lawsuit would not be the most effective way to get them paid.
Franco has said SDC is committed to repaying employees for wages and benefits.
State’s community action decision held for review
After reviewing materials from the public hearing, Secretary Jeff Pertl of the Department of Children and Families decided in May that it would remove SDC’s community action status in July.
However, SDC leaders said they had concerns that the state did not follow the proper decision process, so they requested a review from the U.S. Department of Health and Human Services in June.
The department agreed to take up the review, which suspended the state’s decision.
September
Weatherization vendors win lawsuit
Three vendors filed a money judgment lawsuit against SDC in an effort to collect reimbursements for weatherization work completed for the agency. In September, a judge granted a total judgment of $186,500 plus statutory costs and accrued interest.
October
Credit facility proposed
The SDC board received a letter of intent from Wings Credit Union indicating it is interested in providing the SDC with a credit facility, or a type of loan, of up to $15 million. In SDC’s case, the credit facility would be used to cover upfront expenses for government-funded programs that are paid through reimbursements.
Foreclosure decision
In March, Forward Community Investments Inc. filed a foreclosure lawsuit against SD Properties Inc., which owns SDC’s buildings, alleging it defaulted on mortgage payments for the main office and warehouse buildings on North Avenue.
At an October hearing, a judge ordered a judgment of foreclosure against the North Avenue buildings and ruled that Forward Community Investments was entitled to a money judgment of approximately $3.1 million.
SDC moved out of the buildings and started a three-month redemption period.
Sulton resigns
Sulton, SDC’s attorney and legal counsel since late 2022, resigned from his volunteer position in mid-October.
Sulton represented SDC in lawsuits, served as a spokesperson and advised the board.
November
Board members make failed attempt to remove Franco
Some members of the board attempted to call an emergency meeting to vote on removing Franco as the board chair and interim CEO, but they ultimately did not vote on anything because of a disagreement on meeting procedure. Franco opposed the meeting and called it “out of order.”
State releases community action decision
The Department of Children and Families notified SDC on Nov. 21 that it believes the federal review period ended as of Nov. 18 and would be moving forward with removing SDC’s community action status. It selected UMOS to be an interim provider of block grant-funded services.
SDC commissioners raised questions about the timeline of the federal review at a board planning session in November.
December
Federal office releases letter
The director of a division in the federal Office of Community Services found that the Wisconsin Department of Children and Families’ process of removing SDC’s community action status was compliant with federal law, according to a letter it sent to the department on Dec. 5.
SDC is seeking further clarity from senior leadership at the Department of Health and Human Services, Franco said in a statement.
What happens next
Building sale or foreclosure auction
The three-month redemption period for the North Avenue buildings expires on Jan. 6, according to SDC, although they technically can be redeemed up until there is a hearing to confirm the sale of the properties at auction.
Ongoing legal cases
Lawsuits filed against SDC from TriShulla, an information technology company, and the Department of Workforce Development are still ongoing.
Meredith Melland is the neighborhoods reporter for the Milwaukee Neighborhood News Service and a corps member of Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues and communities. Report for America plays no role in editorial decisions in the NNS newsroom.
Jonathan Aguilar is a visual journalist at Milwaukee Neighborhood News Service who is supported through a partnership between CatchLight Local and Report for America.
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