oversight

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)

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.




 (385684)


 12                                                                                GAO/WED-97-19lB HUD’s Self-Sufiiciency Programs
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