To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Date: September 12, 2023
Report Title: Presentation Concerning the Housing Authority’s Family Self-Sufficiency and Voucher Homeownership Programs
RECOMMENDATIONS:
RECEIVE presentation concerning the Housing Authority’s Family Self-Sufficiency and Voucher Homeownership Programs.
BACKGROUND:
A key component of the Las Deltas conversion project is the development of wealth-building opportunities for former residents of Las Deltas, current and past North Richmond residents and clients in the Housing Authority’s (HACCC) voucher programs. HACCC has two successful, existing wealth-building programs we hope to leverage in partnership with the developers being awarded units in a separate board order. These are the Family Self-sufficiency (FSS) and Voucher Homeownership programs.
The FSS program promotes increased earnings and savings among families receiving HUD-funded rental assistance via two main features: case management and financial coaching services along with a financial incentive. FSS participation is voluntary and typically lasts for up to five years, with a possible extension up to a total of seven years. FSS is unique from many other governmental programs designed to promote work among low-income people: participation is voluntary, goals are primarily client-driven, it encourages pursuit of long-term higher earnings through education and training, and families can build substantial savings at no additional cost to them (HUD funds the savings account for all clients who meet program requirements). These features, combined with the residential stability that receipt of federal rental assistance provides, offer participating families greater opportunities to improve their long-term economic well-being.
A recent study showed that during the ten-year period from 2007 to 2016, nearly 37,000 households graduated from a local PHA-administered FSS program. These graduates increased their income on average by 80 percent during their participation in FSS (from $14,706 at entry into FSS to $26,586 at graduation), according to HUD data. Graduates received an average of $6,270 in escrow savings to use as they wished. With higher incomes and some financial cushion, more than a third (37 percent) left housing assistance within a year of graduation, and some (15 percent) became homeowners.
While a small number of voucher clients are able to graduate the FSS program and purchase a home on their own, the Housing Choice Voucher (HCV) homeownership program allows families that remain assisted under the HCV program to use their voucher to buy a home and receive monthly assistance in meeting homeownership expenses.
Daja Terry, HACCC’s FSS Coordinator joined HACCC in August 2020. She has led a post-COVID resurgence of these two programs and will give a brief presentation about HACCC’s FSS and Homeownership activities.
FISCAL IMPACT:
None. Informational item.
CONSEQUENCE OF NEGATIVE ACTION:
None. Informational item.
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I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. |
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ATTESTED: |
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Joseph Villarreal, Executive Director |
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By: |