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MEMORANDUM
June 2, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Applications for Family Self-Sufficiency and Homeownership Program
Coordinators
Housing and Community Development Department Director David Harris recommends
City Council approval to submit applications for renewal of the Family Self-Sufficiency
Coordinator grant, in the amount of $40,055, and for a grant in the amount of $25,452 to
contract for homeownership counseling services with the Iowa State University-County
Extension office.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
fYLJi C ~
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
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MEMORANDUM
Date: June 2, 2004
To: Mik~{1n Milligen, City Manager
From: David'i11rriS, Housing and Community Development Department
Re:
Applications for Family Self-Sufficiency and Homeownership Program
Coordinators
Introduction
The purpose of this memorandum is to request the City Council's authorization to
apply to the US Department of Housing and Urban Development (HUD) for funds
to renew our current Family Self-Sufficiency Program (FSS) Coordinator position;
and for funding to contract with Iowa State Extension for services to promote
homeownership opportunities for Section 8 Program families.
Background
The Family Self-Sufficiency Program is intended to provide a system of supports
and incentives to Section 8 families in an effort to move them through the social
welfare system into economic independence.
Since 1996, the Housing Department has received annual funds to support the
FSS Coordinator position. After contracting with area social service agencies for
these responsibilities for several years, in FY02 we obtained sufficient funds to
employ a full-time staffperson. A grant was received from HUD for $39,659 this
year, allowing us to maintain a caseload of 45 families in this program. Over the
years, we have seen many success stories as families complete programs of job
training and education, obtain employment and establish themselves independ-
ent of public assistance.
Discussion
We have prepared the annual renewal application for the Coordinator position,
this year in the amount of $40,055. It is expected that this funding will be auto-
matically renewed by HUD for another year.
For FY03, HUD offered an additional opportunity for housing agencies participating
in the Section 8 Program. In concert with its increased emphasis on assisting
Program families to become homeowners, the Department began offering funding
for counseling activities. Annual funding for an "FSS Homeownership Coordinator"
position is now available, on a competitive basis.
Last year we formed a partnership with the Iowa State University-County Extension
Office for this new initiative. ISU developed a program to provide services in
support of this activity, including the following:
1. individual assessments and financial management education plans for
each participating family
2. one-on-one financial counseling and small group workshops, including:
a. basic money management
b. homeownership education
c. credit education and credit repair
3. on-going support and mentoring
ISU's contract price to again provide these services is $25,452, to support the
current FSS caseload of 45 families.
No resolution or chief executive's signature is required for application for the
HUD funds for these activities
Action Step
The action requested of the Council is to authorize submission of applications for
renewal of the Family Self-Sufficiency Coordinator grant, in the amount of
$40,055; and for a grant in the amount of $25,452 to contract for homeownership
counseling services with the Iowa State University-County Extension Office.