The U.S.
Department of Housing and Urban Development (HUD) is releasing over $49 million
to public housing agencies in 49 states plus Guam and Puerto Rico to increase job training for low-income residents.
The
funding, announced Tuesday by HUD Secretary Shaun Donovan, is part of the
department's Housing Choice Voucher Family Self Sufficiency Program (HCV/FSS),
originally established in 1990. Families
participating in the Housing Choice Voucher portion of the program may voluntarily
participate in the Family Self Sufficiency Program.
According
to HUD, the grants
allow public housing agencies (PHAs) to work with welfare agencies, schools,
businesses, and other local partners to develop a comprehensive program designed
to help participating individuals develop the skills and experience necessary to
obtain jobs that pay a living wage.
The PHAs can use the funds for additional staff to link up adults enrolled
in the program with local organizations in order to receive appropriate job
training, childcare, counseling, transportation, and ultimately job
placement. The PHAs can also use the
funds to provide families with household skills training and homeownership
counseling.
Participants in the program sign a contract with the PSA pledging that
the head of the household will get a job and that no family member will be
receiving welfare assistance at the end of five years. Once the family member
is employed and the family income increases, the PSA establishes an
interest-bearing escrow account for the employee and credits money representing
a portion of that increase to the account.
Once the family completes its FSS contract, which also requires that the
family comply with the lease, and specifies all goals and services for the
family, the escrowed funds are released to the participant and can be used as a
down payment on a home, to start a business, or for debt repayment, educational
expenses, or other purposes. If the
family fails to fulfill its contractual obligations, the escrow account is
forfeited.
The $49 million awarded to states ranges in amounts from $34,000 to
Wyoming to $6.3 million granted to California.
Delaware and the District of Columbia do not appear on the list of grant
recipients.
Secretary Donovan said of the awards, "In today's economy, this
program is needed more than ever to help families obtain the skills that lead
to jobs. On the heels of President Obama signing the jobs bill that will boost
job creation, I'm pleased HUD is providing this funding to local housing
authorities that will keep caseworkers on the job to assist families in HUD's
voucher program find employment."