As metro Detroiters struggle with the rest of the world in the pandemic, the U. S. Housing and Urban Development Secretary Ben Carson awarded approximately $78 million to hundreds of public housing authorities across the country including nearly $2.2 million to 10 housing authorities in Michigan.
The money is meant to help HUD assisted residents increase their earned income and reduce their dependency on public assistance and rental subsidies.
“Putting people on the path to self-sufficiency by helping them find jobs and increase their earned income is an essential part of HUD’s mission,” Carson said. “This funding is a good example of how federal and local partnerships work to help connect families to jobs and educational opportunities to help them become a success.”
“This funding will empower individuals and their families across Michigan to get them on a path towards self-sufficiency and prosperity to attain their God given potential,” said Joseph P. Galvan, HUD Midwest Regional Administrator.
HUD's Family Self -Sufficiency (FSS) Program funding helps local public housing authorities to hire Service Coordinators who work directly with residents to connect them with existing programs and services in the local community. These Service Coordinators build relationships with networks of local service providers, who provide direct assistance to FSS participants.
The goal is to help participating families find jobs, increase earned income, reduce or eliminate the need for rental and/or welfare assistance, and make progress toward achieving economic independence and self-sufficiency.
Participants in the program sign a five-year contract requiring the head of the household to set specific goals and achievements. To successfully graduate, the head of household must be employed and no member of the family may have received cash welfare assistance for twelve months prior to program graduation.
In exchange, families in the program have an interest-bearing escrow account established for them. The amount credited to the family's escrow account is based on increased rent due to improvement in the family's earned income during the term of the FSS contract.
Upon successful graduation, the head of household receives the escrow funds are able to apply those funds to advance their personal circumstances, including, for example, paying educational expenses or making a down-payment on a home.
Related
Many of the FY20 FSS awards are to public housing authorities with units in Opportunity Zones. Created under the 2017 Tax Cuts and Jobs Act, Opportunity Zones aim to stimulate long-term investments in low-income communities. LEARN MORE about the FSS program HERE.