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HomeMy WebLinkAboutMINUTES - 03182008 - C.1 HOUSING AUTHORITY TY OF THE COUNTY OF CONTRA COSTA +1fP TO: BOARD OF COMMISSIONERS FROM: Joseph Villarreal, Executive Director DATE: March 18, 2008 SUBJECT: AWARD OF FAMILY SELF-SUFFICIENCY/HOMEOWNERSHIP COORDINATOR PROGRAM GRANT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: ACCEPT report on the award of Family Self-Sufficiency/Homeownership Coordinator grant funds to the Housing Authority of the County of Contra Costa (HACCC) from the U.S. Department of Housing and Urban Development (HUD). ll. FINANCIAL IMPACT: HUD has awarded HACCC $131,000 under the Department's FY2007 Family Self-Sufficiency (FSS) and Homeownership Coordinator Program. These funds will be used to pay for salaries and contracts associated with both of these programs in 2008. III. REASONS FOR RECOMMENDATION/BACKGROUND HUD's FSS program encourages housing authorities to develop local strategies aimed at helping voucher families obtain employment that will lead to economic independence. Housing authorities work with welfare agencies, schools, businesses, and other local partners to link program participants to the supportive services, schools, training and job opportunities they need to obtain employment that pays a living wage. The 5-year FSS contract specifies goals and services for each family. Family members must fulfill all requirements in order to graduate from the program. The FSS contract requires that the family comply with the lease, that all family members become independent of welfare, and that the head of the family seek and maintain suitable employment. An interest-bearing FSS escrow account is established by the Authority for each participating family. An escrow credit, based on increases in earned income of the family, is credited to this account by HACCC during the term of the FSS contract. A portion of this escrow account may be made available to the family during the term of the contract to enable the family to complete an interim goal such as education. 01.1 CONTINUED ON ATTACHMENT: _YES SIGNATURE �- osenh Villarreal,Executive Director RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON_�� l� b /`D APPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY TI IAT'T'HIS IS A �[UNANIMOUS (ABSENT ) TRUE AND CORRECTCOPY OF AN ( AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED } O P JOSEPH VILLARREAL, SECRE'T'ARY OF THE BOARD OF COMMISSIONERS AND EXECUTIVE DIRECTOR 13Y DEPUTY f. FSS Grant/Award Report March 18,2008 Page 2 If the family completes the contract and no member of the family is receiving cash welfare assistance, the amount of the FSS account is paid to the head of the family. If the PHA terminates the FSS contract, or if the family fails to complete the contract before its expiration, the family's FSS escrow funds are forfeited becoming part of the Authority's restricted Section 8 reserves. HACCC has graduated 141 families from its FSS program. Currently, approximately 147 families participate in the program. The Authority plans to more than double the number of active participants over the next two years. Under the Housing Choice Voucher Homeownership program, qualifying participants can use their rental assistance to purchase a home. Eligible participants must be a first-time homeowner or cooperative member, the family must meet minimum income requirements and, except in the case of an elderly or disabled family, welfare assistance is not counted in determining whether the family meets the minimum income requirement. Except for an elderly or disabled family, one or more adults in the family who will own the home must currently be employed on a full-time basis and must also have been continuously employed on a full-time basis for at least one year before commencement of homeownership assistance. Finally, all homeownership participants must attend and satisfactorily complete the Authority's pre- assistance homeownership and housing counseling program. Over fifty families have completed the Authority's pre-assistance homeownership and housing counseling program. While none have purchased a home under the Housing Choice Voucher Homeownership program, fifteen have left the program entirely and done so on their own. This is an even greater success for them and the program as they are now entirely self-sufficient. Approximately twenty-five families are currently participating in homeownership counseling. Two recent FSS graduates have also completed the required homeownership counseling and are preparing to search for loans (the family has to secure one on their own) and houses that would be eligible under the program. IV. CONSEQUENCES OF NEGATIVE ACTION None. Informational item only. —admin