Lewisburg, PA — At its Mar. 25, 2026 meeting, SEDA-Council of Governments (SEDA-COG) Board of Directors voted to expend funds to HOME Investment Partnerships Program (HOME) grantees who are required to make repayments to the Pennsylvania Department of Economic Development (DCED) on contracts administered by SEDA-COG.
As of Mar. 25, 2026, SEDA-COG is aware of four grantees who have been asked to pay back all or a portion of their contract due to errors found during a programmatic monitoring.
Two of the grantees are currently in an appeals process with DCED. Until the appeals process is complete, it is not known if payback from these grantees will be required.
The remaining two grantees have agreed to the repayments requested by DCED. A motion was made and passed at today’s SEDA-COG Board of Directors meeting to offer contributions to the City of Lock Haven and the Borough of Berwick towards their respective repayments.
Due to the shared responsibility between SEDA-COG as the administrator of the HOME funds and the grantee as the recipient of the funds, SEDA-COG has offered to pay 75% of the requested payback, plus 100% of the administration fees paid to SEDA-COG.
As previously disclosed in a Jun.16, 2025 press release, SEDA-COG discovered and self-reported the potential mismanagement of two HOME projects they were administering under their Housing Rehabilitation program.
After DCED’s investigation into the incident, they requested files directly from SEDA-COG for ten additional HOME contracts administered by SEDA-COG for programmatic monitoring. Following the monitoring, DCED issued monitoring letters directly to grantees.
Most programs receiving federal or state funds are monitored on a regular basis. SEDA-COG supports this approach by funding sources in order to mitigate the risk of waste, mismanagement, or intentional misuse of funds.
SEDA-COG contacted all eleven grantees who received the monitoring letters and worked with those who responded by providing additional research and documentation. As a result, many of the grantees found resolution with DCED regarding some or all of the findings in their monitoring letter.
SEDA-COG emphasizes the errors in administration, involving the HOME funds administered through the Housing Rehabilitation program, were isolated to that program.
In order to focus on delivering the high-quality services and reestablishing the trust expected from the nearly 70 years of service to the region, the SEDA-COG Board voted Feb. 25, 2026, to close the agency’s Housing Rehabilitation program.
SEDA-COG views offering contributions towards repayment and closing the program as a show of commitment to finding a practical resolution while ensuring, through their various other programs, they remain focused on projects that provide meaningful benefit to all who are served.
About SEDA-COG
SEDA-COG is a community and economic development agency in Lewisburg and is one of seven Local Development Districts in Pennsylvania. SEDA-COG enhances the quality of life and economic advantage for residents and businesses in the 11 central Pennsylvania counties through its vital partnerships and initiatives.