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HUD Awards City Housing Authority $246864 In Grants

The U.S. Department of Housing and Urban Development has awarded the Chattanooga Housing Authority a total of $246,864 in grants to help residents in its Low Income Public Housing and Housing Choice Voucher (Section Programs achieve self-sufficiency over time.

The goal of HUD’s Family Self-Sufficiency Program is to create opportunities for residents to continue their education or receive job training, and eventually find gainful employment so they can reduce or eliminate the need for welfare assistance.

“These funds are allowing us to hire program coordinators to help connect our public housing residents and Section 8 clients with agencies, programs and services that can lead them on a path toward economic independence,” CHA Executive Director Betsy McCright said. “As a result of the FSS Program, we expect to see more families poised to move out of subsidized housing into homes that they own.”

Since 2009, CHA and its partner agencies have assisted 20 clients in purchasing homes within the city limits of Chattanooga. Most of them were enrolled in the agency’s FSS Program.

This year, CHA received two FSS grants – one totaling $178,864, which will fund three Section 8 program coordinators, and a second grant for $68,000 to fund one public housing position.

Mrs. McCright said FSS participants sign a contract to become active in the program, which they are expected to complete over a five-year period.  “They outline their responsibilities toward achieving certain goals like attending college or a job training program, finding employment and possibly even purchasing a home,” she said.  For those families receiving welfare assistance, the public housing agency establishes an interim goal that the family be “welfare free” before the contract expires.

As the head of household’s income rises over time, a special escrow account is established using funds from the family’s increasing income, Mrs. McCright said.  CHA manages these escrow accounts.  Upon successful completion of the contract, clients may use their escrow funds any way they choose.  Residents are also allowed to make interim disbursements for specific reasons such as continuing their education, starting a business or improving their credit score to purchase a home.

“FSS challenges our families to set short- and long-term goals, and to take the necessary steps to achieve those goals,” Mrs. McCright said.  “The program coordinators guide them every step of the way, making sure they’re aware of available resources in our community to help them on their journey toward upward mobility.  For instance, some residents may not know they can earn their GED for free, or even receive special grant assistance designated for first-time homebuyers.

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