When approached by the Sunday Mercury, Mr Sealey confirmed that he had been receiving pounds 22,000 a year rent from SACDA since 1994, when he was appointed its chairman.
He said that he had absented himself from SACDA meetings when the lease was discussed.
'I declared my interest to the authority and SACDA's directors in 1994.
Both times I declared my interest to SACDA directors and the council would have been aware of it.'
Asked if SACDA - which has four directors, including Mr Sealey, and four employees - informed other funding bodies of his vested interest in the group, he said: 'It's not a requirement.'
Following our investigation, TomWatson,LabourMP for West Bromwich East, has urged the council to look into the Bull Street renting arrangement between Mr Sealey and SACDA.
But last night Sandwell Metropolitan Borough Council said it would not be looking into the SACDA rent agreement.
It funds SACDA in order to gain benefits for the community.'