The Blue Hills Civic Association (BHCA), a Hartford-based nonprofit, has announced it is effectively ceasing operations due to severe financial distress. This sudden closure comes in the midst of a widening federal probe into the organization’s funding and operational practices, drawing state and public scrutiny.
Key Takeaways
- Hartford’s Blue Hills Civic Association halts operations amid a federal investigation and financial audit.
- Major staff layoffs followed state funding suspension after delayed reporting of a $300,000 grant theft.
- Focus on organization’s relationship with state Sen. Doug McCrory and businesswoman Sonserae Cicero-Hamlin.
Federal Probe and Nonprofit Shutdown
The BHCA recently informed Connecticut’s Freedom of Information Commission that it lacks the personnel or resources needed to respond to ongoing records requests. According to correspondence from their former legal counsel, the organization is in the midst of a comprehensive financial audit and, for practical purposes, is now fully inactive.
The nonprofit provided youth employment initiatives and similar community services. However, its operations have been under heightened scrutiny as part of a federal investigation reportedly involving Connecticut state Senator Doug McCrory. Subpoenas have focused on BHCA’s financial dealings and its connections with other nonprofits linked to Sonserae Cicero-Hamlin—a businesswoman whose organizations frequently received state funding directly or as a subgrantee from BHCA.
Funding Challenges and State Oversight
Problems escalated after the state suspended millions in public funding to BHCA, citing the organization’s delayed report of a $300,000 cyber theft from its grant money. Subsequently, most staff members were dismissed in April. This situation triggered an independent audit into BHCA’s finances by Clifton Larson Allen, a financial consulting firm, which has yet to be concluded.
In the meantime, public communications from BHCA have ceased, and their website has been taken offline. The nonprofit, previously known for its community presence, is now absent from its typical outreach channels.
Scrutiny Over State Funds and Grant Distribution
Investigators are also examining the process by which state lawmakers direct funds to preferred organizations. Evidence indicates that significant portions of state grants awarded to BHCA were later distributed to other nonprofits. This structure sidestepped typical state accountability checks such as auditing and open bidding, raising concerns over transparency and oversight.
Documents and communications show Senator McCrory and the BHCA executive director played active roles in selecting these subgrantees. Additionally, further probes are underway into McCrory’s efforts to steer funds to other nonprofits connected to Cicero-Hamlin, including the Legacy Foundation of Hartford and SHEBA Resource Center.
Legal Proceedings And Next Steps
The BHCA now faces additional legal challenges concerning its refusal to release requested records, with a pending hearing before the Freedom of Information Commission. Their former attorney cited financial constraints as the reason for discontinuing legal representation, and the organization may need new counsel if its legal proceedings continue.
The outcome of ongoing audits and federal investigations will likely shape the future accountability of nonprofits managing substantial public funds in Connecticut.