United States General Accounting Office Washington, D.C. 20548 Resources, Commnni~, and Economic Development Division B-277351 July 28, 1997 The Honorable Connie Mack Chairman, Subcommittee on Housing, Opportunity and Community Development Committee on Banking, Housing, and Urban Affairs United States Senate Subject: HUD: hxventorv of SeKSmRciencv and Economic ~~ortunitv prOt2EU-M Dear Mr. Chairman As requested, we are providing you with (1) an inventory, as of June 10, 1997, of the Department of Housing and Urban Development’s @IUD) self&f&iency and economic opportunity programs and demonstrations that are designed to assist tenants of public and assisted housing or low- and moderate-income residents of certain geographic areas and (2) information on how two of HUD’s self-sufficiency programs-Housing Opportunity for People Everywhere (HOPE IQ1 and Economic Development and Supportive Services (ED%)-are linked to the other programs that we identified. You asked us to describe (a) programmatic linkages through which programs are coordinated and implemented toward accomplishing the objectives of HOPE VI and EDSS and (b) fundmg linkages in which dollars from one program are provided to support other programs or activities. ‘HOPE VI is primarily a housing revitalization program; however, public housing authorities may use a portion of the funding they receive for HOPE VI for supportive services. GAOIRCED-97-19lR HTJTYsSelf-Sufhiency Programs B-277351 INVENTORY OF PROGRAMS AND DEMONSTRATIONS HUD operates a total of 23 self-su.fZciency and economic opportunity programs and demonsuations that target tenants of public and assisted housing or low- and moderateincome residents of certain geographic areas. According to HUD officials, 17 of these programs are considered self-sufficiency programs or demonstrations and 6 are considered economic opportunity programs. Self- sufbciency programs are designed to help residents become economically independent. Economic opportunity programs are geared toward revitalizing low- and moderate-income neighborhoods and creating jobs. Of the 23 programs, 8 received funding from HUD’s %cal year 1997 funding, 10 remain active using funding from previous fiscal years, and 5 are eligible for funding from other HUD programs. In general, the self-sufkiency programs are administered by HUD’s Office of Public and Indian Housing, the economic development programs are administered by the OfFice of Community Planning and Development, and the demonstration programs are admin&ered by the Of6ce of Policy Development and Research. @ncs. I and II provide an inventory of and information on the self&ufkiency and economic opportunity programs, respectively.) PROGRAMMATIC LINKAGES BETWEEN HOPE VI AND EDSS AND OTHER SELF-SUFFICIENCY PROGRAMS HOPE VI and EDSS have some limited programma tic linkages with the other self-suffkiency and economic development programs that we idenaed. Both HOPE VI and EDSS are broad-based grant programs that, along other things, fund a variety of supportive services, such as child care, job training, and family counseling services and encourage coordinating and partnering with other self- sufficiency programs. For example, in the fiscal year 1996, competition for 2 GAO/WED-97-191R HUD’s Self-Snfiiciency Programs B-27735 1 HOPE VI grants, those applications that included plans for a Campus of Learners Initiativ~a site-based computer and telecommunications initiative for public housing residents-were given special consideration, such as bonus points on their grant application, by HUD.” Eight of the 39 HOPE Vi projects have Campus of Learners sites. Likewise, the EDSS program requires public housing agencies (3?HA) to partner with a number of entities, inclucng local welfare offices and residents’ organizations, such as tenant groups that receive funding for the Tenant Opportunity Program (TOP), a resident operated management and business development program. Furthermore, because EDSS and TOP generally target the same population and have mutual goals of providing opportunities and services that help move tenants of public and assisted housing toward self+uf&iency, HUD has requested the authority to consolidate the two programs in fiscal year 1998. FUNDING LINKAGES BETWEEN HOPE VI AND EDSS AND OTHER SELF-SUFFICIENCY PROGRAMS HOPE VI and EDSS have some funding linkages with HUD’s other self- suf6ciency and economic development programs. The funding linkages we found varied from year to year and typically occurred through the appropriations process when the Congress approved using a portion of the funding f?orn one program to fund another-commonly known as a set-aside-or when HUD used funds from one program to fund and support another allowable activity. For example, two work experience efforts-the Youth Apprenticeship Program, an employment program for young adults, and the Public Housing Apprenticeship Demonstration Program, a job training program in the construction trades-were funded through a Fiscal year 1994 set-aside from ?I’he HOPE VI fiscal year 1997 program does not provide special consideration for public housing agencies that establish Campus of Learners Initiatives. 3 GAO/RCED-97-191B HUD’s Self-Sufliciency Programs B-277351 HOPE VI. EDSS also has funding linkages with other self-sufficiency and economic development programs. For example, in &al year 1996, a total of $53 million was set aside for EDSS from HUD’s Community Development Block Grant (CDBG) appropriation. Of the $53 million, HUD used funds for the following three programs: the Bridges-to-Work Demonstration (links work- ready participants to suburban jobs), the Family SelfSticiency Program (promotes local strategies to enable families to achieve economic independence and self-sufficiency), and TOP. In fiscal year 1997, a total of $60 million was set-aside for EDSS from HUD’s CDBG appropriation. Of the $60 million, the Congress directed HUD to use $5 million for TOP and $5 million for Moving-to- Work (a program designed to increase housing choices for families who are seeking work or participating in job training or educational programs). AGENCY COMMENTS We provided a draft of this report to HUD for review and comment. We met with the Deputy Assistant Secretsry for Real Estate Performance, Funding and Customer Service in the Office of Public and Indian Housing the Acting Director of the Ofiice of Economic Development in the Office of Community Planning and Development; and a program analyst for the 03%e of the Deputy Assistant Secretary for Policy Development in the Of&e of Policy Development and Research to discuss HUD’s comments on our report. In general, HUD concurred with the information presented in the draft report and said that the report would serve as a useful summary of its self-sufEciency and economic opportunity programs tbat are designed to assist tenants of public and assisted housing or low- and moderate-income residents of certain geographic areas. However, HUD’s Office of Community Planning and Development suggested that we include several additional programs that provide assistance to the homeless as part of HUD’s continuum of care approach and its HOME Investment 4 GAO/TEED-97-1918 HUD’s Self-Safficiency Programs B-277351 Partnership Program that provides block grants to states and local governments for a variety of housing activities. While we agree that the homelessness assistance programs are self-sufficiency programs, as requested by the Committee staff, we agreed to discuss work that would address homelessness issues at a later date. We also concur with HUD’s comment that the provision of rental a&stance through its HOME program can be part of a self-sufficiency strategy. However, this report does not include programs that do not have a clear education, employment, or social service component. HUD also requested the we delete the welfare-to-work initiative from our list of programs because it is a HUD proposal that has not received funding. We agree with HUD’s comment and have removed the welfare-to-work initiative from our Jist of programs. HUD suggested minor revisions to clarify our characterization of the program purposes and funding sources for several self-sufficiency programs and provided updated funding information. We incorporated HUD’s suggested changes where appropriate. To develop an mventory of HUD’s sel&sticiency and economic opportunity programs and demonstrations, we conducted a literature and legislative search of HUD and federal documents on self-sufficiency programs. After developing a list of programs, we verified the results with HUD. To provide information on how these efforts are linked programmatically and financially to the HOPE VI and the EDSS programs, we (1) interviewed the officials responsible for the individual programs to solicit their views on programmatic links; (2) researched the legislative authority for each program to find its purpose; and (3) reviewed HUD’s budget justifications, notice of funding availability, and federal registers for fiscal information. We performed our work from April through Jvuly 1997 in accordance with generally accepted govenunent auditing standards. 5 GAO/RCED-97-19lFt HUD’s SeWhfEciency Programs EL277351 Please call me at (202) 512-7631 if you have any questions. Major contributors to this report include Susan Campbell, Merrie Dixon, John McGrail, and Angela Volcy. Sincerely yours, Director, Housing and Community Development Issues Enclosures - 2 6 GAO/RCED-97-191Em’s Self-Sufficiency Pro& ENCLOSURE I ENCLOSURE I HtJD SELF-STJF’FICIENCY PROGRAMS AVAILABLE TO TENANTS OF PUBLIC Am ASSISTED HOUSING - Fundingavailable Dclbrs in millions Le9islativs M 1996 FY 1997 Program Program purpose Tar@ group authority Programsadministsrsdby the Office of Public and lndian Housing Tenant Opportunity To provide resident organizations (e.g., Residents of public Housing and $15’ s5b Program resident corporations) funding for activities housing Community such as business development, education, Development and social services that are designed to move Act of 1987 tenants toward self-sufficiency and (sac. 122) independence. Since the program’s inception in fiscal year 1988,816 resident organizations have received funding. Economic To provide service coordinators, educational Residents of public Omnibus SW Sso” Development and training, and supportive services such as and Indian housing, Consolidated Supportive Services childcare, employment training, computer the elderly, and Rescissions (EDSS) skilts. and counseling education, youth persons wtth and mentoring, and transportation. Other disabilies Appropriations assistance provided include services for the Act of 1996; elderly end disabled. This program began in HUD 1997 fiscal year 1996. Since 1996,49 public housing agencies (PHA) have reoeived grants. 2zmpdations HOPE VI To revitalize severely distressed public Residents of public 1993 6480C $550d housing through both physical improvements housing Appropriations and actMties to promote resident self- Act (P.L. 102- sufficiency such as training, education, and 389) and other activities designed to encourage and subsequant support work by public housing residents. appropriations HOPE VI was first funded in fiscal year 1993 laws end has funded 69 sites. Campus of Learners To provide a campus-like setting where Residents of public Omnibus $0’ 86 Initiative participating residents enroll in an education housing Consolidated program involving computer technology, job Rescissions training, and comprehensive education and end support services. Appropriations Act of 1996 Family Self- To help residents of public housing and Residents of public National w’ $15’ Sufficiency (FSS) recipients of tenant-based section 8 housing and Affordable assistance to obtain education, training, recipients of tenant- Housing Act supportive services that reduce reliance on based section 8 of 1990 weifare and assist tenants in gaining housing employment. 7 GAO/WED-9’7-1918 HUD’s Self-Snfiiciency Programs ENCLOSURE -1 ENCLOSURE I Fundingavailable Dollars in millions Legislative FY 1998 FY 1997 rogam Progam purpose Target group authority iUD!l-lHS Early To establish centers and/or cluster family child Residents of public National No longer No :hildhood care homes that will provide educational housing Affordable fundedO longer )evelopment opportunities for youth and to facilitate the Housing Act fundedg Wnership employability of parents or guardians of of 1990 and children residing in these developments. other statutory Grants were awarded to 52 nonprofit child authorities care providers, head start grantees, resident councils, and resident management corporations. %mily Investment To provide access to educational and Residents of public National No longer No knters (FIC) employment opportunities in order to achieve housing Affordable funded9 longer self-sufficiency and independence by (a) Housing Act fundedg developing facilities in or near public housing of 1990 for training and support services; (b) mobilizing public and private resources to expand and improve the delivery of services; (c) providing funding for essential training and support services that cannot otherwise be funded; and (d) improving the capacity of management to assess the training and service needs of families and coordinate the provision of training and services that meet needs and ensure the long-term provision of such training and services. In 1994, a one- time grant of $58.3 million was made available to implement FlC programs, demonstrations, and initiatives at 83 locations. Family Investment Pad of the flC effort, this initiative provides Public housing National No longer No Centers After-School after-school programs. The program involves residents (ages 7-13) Affordable fundedO longer Demonstration joint investment by the public and private Housing Act fund& sectors to provide counseling, tutoring, of 1990 mentoring, and other supportive services designed to reduce gang-related activities and enhance lifestyles. A total of 33.5 million of FIC funding was used to start the demonstration at four PHAs in 1994. Youth Development To provide better access to comprehensive Public housing National No longer No Initiative education, employment opportunities, and residents Affordable funded longer suppcrtlve services. In 1994, a total of $5 (ages 1325) Housing Act funde@ million of FIC funding was made available to 1990 implement this initiative at five PHAs. Youth Entrepreneurial To provide life and job skills training that Public housing 1984 No longer No Demonstration serves as en alternative to drugs and other residents (ages 15- Appropriation fundedg longer kMitute gang-related activities. Youth Entrepreneurial 24) who are high Act: sec.164 fund& Institutes exist in public housing communities school dropouts (P.L. 102-550) to take participants through initial literacy, when necessary, and continue them through actual business planning, business start-up, and access to ongoing operational support In fiscal year 1994, a one-time grant of $1 million was used to establish sites at the Philadelphia and the city of Los Angeles PHAs. 8 GAOIlZCED-97191RHUD%Self-Suf5ciency Programs ENCLOSURE I Fundingavailable Dollarsin millions Legislative N 1996 FY 1997 Program Programpurpose Target group authority Public Housing To provide job training and to ensure Very low-income 1994 No longer No Apprenticeship apprenticeship and employment opportunities public housing Appropriations fundedg longer Demonstration in the in the construction trade and public housing residents (ages 16- Act; sec.1 64 fund& Construction Trades operation that will lead to self-sufficiency for 24) who are high (P-L. 102-550) and Public Housing public housing youth. In fiscal year 1994, a school dropouts Operations one-time grant of $9 million of HOPE VI funds was awarded to 34 PHAs for t&ring and construction apprenticeships. Youth Apprenticeship To provide youth carp and joint labor- Public housing 1994 No longer No Program management supported training, residents (ages 16- Appropriations fundedg longer apprenticeship, and employment to young 30) in HOPE VI Act; (PL funded9 residents of public and subsidized housing. In communities 103-124) fiscal yeei 1994, a one-time grant of $10 million of HOPE VI funds was made available to eight HOPE VI sites to implement a youth apprenticeship program. Moving-to-Work To increase household choice for low-income Low-income families Omnibus w $9 Demonstration families by giving incentives to families with Consolidated children to become economically self-sufficient Rescissions in which the head of the household is working, and is seeking work, or is preparing for work by Appropriations participating in job training, education, or Act of 1996, programs that assist people. sec. 204 Programsadministeredby tht?CM&eof Housing Neighbomood To establish Neighborhood Networks Low-income families No specific $0 $0' Networks computer leaming centers to give residents authorfzation. Program access to job skills training, formal education, Progm and community services leading to administered opportunities for employment, telecommuting, under various and microenterprise development. Housing Act activities Frqrams admlnii by the Dffice of Adminffn Step-Up To provide career-oriented on-the-job Residents of public No specific $0’ $cp mentoring, work experience, and classroom and Indian housing authorization. instruction through the use of registered and other low-income Program is apprenticeships and comprehensive support pe!SOIlS eligible for services for participants. Among other things, funding Step-Up focuses on encouraging the through other development of construction and maintenance HUD efforts careers. Twenty-one communities have Step- Up programs. Programsadmiabtered by the Dffica of Policy Developmentand Research Bridges-to-Work To link work-ready participants to suburban Central-city residents Omnibus w No Demonstration jobs through coordinated programs of job Consolidated longer search a.ssistance, work preparation and job Rescissions fund& retention counseling, transportation and child and care assistance, and other necessary Appropriations supportive services at six sites. Act of 1996 9 GAOIRCED-97-191BHUD’s Self-Sdiciency Programs ENCLOSURE I ENCLOSURE I Fundingavailable Dolhrs in millions LegiSbltiVtZ N 1996 M 1997 Program Programpurpose Target group authority h h Jobs Plus initiative To target, as the first phase of the Moving-to- Residents of public Omnibus Work Demonstration, one public housing site housing Consolidated in 6 to 10 communities to (1) saturate that site Rescissions with services, (2) dramatically increase the and share of residents who are employed, and (3) Appropriations retain those residents within the community. Act of 1996, sec. 204 *Of the 853 million Community Development Block Grant (CDBG) set-aside for the program in tiscal year 1996, S30.8 million was made available for EDSS; HUD designated the remaining $22.2 million for three other activities: the Family Self-Sufficiency Program, the Resident Initiatives programs, and Bridges-to-Work Demonstration. bOf the $60 million CDBG set-aside for the program in fiscal year 1997, the Congress directed HUD to use S5 million for the Moving-to-Work Demonstration and $5 million for TOP. HUD then allocated842 million for EDSS. $5 million for FSS and the remainder for other efforts related to self-sufficiency. The 85 million CDBG set-aside for TOP was combined with $15 million in fiscal year 1996 TOP carryover to make available a total of $20 million for fiscal year 1997. ‘Up to 20 percent of HOPE VI for 1996 may be used for self-sufficiency services. d~scal year 1997 grantees may spend for self-sufficiency programs, $5,000 per unit based on the higher of the number of replacement units or the number of originally occupied units in the project to be revitalized. *Funds have not been appropriated for this program. However, these efforts may use existing program funds, such as HOPE VI, comprehensive grant funds, and CDBG. ‘The dollars shown fund the FSS program coordinator; no funds are provided for Services. These programs received a one-time appropriation in either fiscal year 1994.1995, or 1996. Grants for these programshave been obligated, but all appropriations have not been expended. “Moving-to-Work fiscal year 1996 funds were used to provide technical assistance under Jobs Plus, the first phase of Moving-to-Work. 10 GAO/WED-97-191E HUD’s Self-Sufliciency Programs ENCLOSURE II ENCLOSURE II HUD ECONOMIC OPPORTUNITY PROGRAMS AVAILABLE FOR TENANTS OF PLTEUC AND ASSISTED HOUSING OR RESIDENTS OF CERTAIN GEOGRAPHIC AREAS Fundingavailable Doflarsin millions Legislative Program Programpurpose Target group/area authority Programs administered by the Office of Community Planning and Development Empowerment To target federal grants to distressed urban Low-income areas Omnibus d v Zones and rural communities for social setices Budget (EZ)/Enterpdse and community redevelopment programs and Reconciliation Communities (EC) provide tax and regulatory relief to attract or Act of 1993, retain businesses in distressed communities. (P.L 103-66) In 1994,104 communities received the EZEC designation. The Department of Health and Human Services funds the EZEC program. Grants that range from $100 million to under $3 million are to be used over the life of the program. Community To help died areas develop viable Economically Title I, Housing $4,650 S4,609 Development Block communities by providing decent housing, distressed areas Community Grant (CDBG) suitable living environment, and expanding Development economic opportunities. Specific activities Act of 1974 include acquisition of real prcperty, the rehabilitation of residential and nonresidential properties, and public services, such as employment, drug abuse treatment and aducatlon, and grants to nonprofits to undertake neighborhood revitakation and community economic development activities. Generally, up to 15 percent of an annual CDBG may be used for public services. Early Childhood To detennine the extent to which the Residents of public sec. 222 of No No Development availabiii of early childhood development housing authorities the Housing longer longer Program services in or near lower-income housing who reside in or near and Utban- funded. funded. projects facilitates the employabilii of the EZIECS. Rural parents or guardians of children who reside Recovery Act in pubtic housing, and to provide eariy 1983; as childhood development services to families amended. that are homeless or at risk of becoming homeless. YouthBuild To provide education and employment Disadvantaged Housing and $206 training skills as well as work experience in young adults agea Community low-income on-site construction. Since the 16-24 Development program’s inception in 1993,293 grants have Act of 1992, been awarded to public and private nonprofit section 164 agencies. GAOLRCED-9%19lRHUD’s Self-Sufficiency Programs ENCLOSUREII ENCLOSUREII Fundingavailable Dollars in millions Legislative Program Programpurpose Target group/ares authority M 1996 FY 1997 Section 108 Loan grantee program that provides tunding CDBG enthiement Housing and $32 $32 for economic development activities, housing communities and Community rehabilitation, public facilities. and largescale units of local Development physical development projects. Eligible government in Act of 1974, projects include construction of housing by nonentitiement areas sec. 108 nonprofit organizations and economic development activities eligible under CDBG. Economic To support job creation project through its CDBG entitlement Multi-family $50 Od Development financing of community and economic communities and Housing Initiative (EDI) development initiatives. EDI grants units of local Property supplement section 108 of the Loan government in Disposition Guarantee and CommunityDevelopment nonentitlement areas Reform Act of Block Grant program by putting additional 1994 (P. L equity into community and economic 108-288) development programs. Grants may be used to modify loans and leverage public and private dollars for job creation efforts. Since 1995,64 communities have received EDI gm- ‘EZIEC funds are used over the W-year fife of the program. EZs and ECs are also eligible for funding from other federal programs. %et-a-sides within the CDBG program for fiscal years 1996 and 1997. ?r:ese funds are made available to subsidize the total loan principal, any part of which is to be guaranteed, up to $1,500,000,000. dProgram remains active using fiscal year 1996 funds. HUD requested $50 million for fiscal year 1998. 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HUD: Inventory of Self-Sufficiency and Economic Opportunity Programs
Published by the Government Accountability Office on 1997-07-28.
Below is a raw (and likely hideous) rendition of the original report. (PDF)