HomeMy WebLinkAboutIR 7606 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7606
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�a�EOar To the Mayor and Members of the City Council May 19, 1992
Subject: RENTAL ASSISTANCE/CASE MANAGEMENT PROGRAM
("Operation I Will") - Status Report: 2nd Year
This informal report is in response to a request by Mayor
Pro tem Webber during the City Council Retreat of May 2,
1992 to provide a status report on Regalridge Square' s
"Operation I Will . "
INTRODUCTION
The Rental Assistance/Case Management Program ( "Operation I
Will " ) , is a demonstration project funded with Community
Development Block Grant Funds . The Community Development
Block Grant is operated with an underlying philosophy
that the City is not obligated to provide ongoing support
to a program.- Generally, projects go through an estab-
lished funding cycle, are phased out and may be replaced
by new projects. Typically, this process precludes formal
reporting to the City Council . A mechanism for reporting
to the Council on projects outside the typical process,
that is for projects receiving funding for demonstration
programs, will be developed.
Currently, there are no other "demonstration" programs re-
ceiving funding, other than "Operation I Will . " However ,
staff will assure the City Council that in the future a
project funded for demonstration will be handled using an
established system of reporting.
BACKGROUND
On October 11 , 1988, the City Council passed CP133- An Af-
fordable Housing Policy. Staff was given a directive to de-
velop a new housing program which would provide assistance
as well as opportunities for qualified families to move to-
ward self-sufficiency. On December 12, 1988, the Community
Development Council set aside $622 ,000 in Community De-
velopment Block Grant (CDBG) Years XV, XII and XI Entitle-
ment funds , to be used for the program.
The City Council approved (M&C-G 7886 , January 3, 1989)
the design and implementation of a 2-year Rental Assistance
Demonstration Program and authorized its financing.
On October 10, 1989 (M&C-C-11925) , the City Council autho-
rized the City Manager to execute a twelve-month contract
with Liberation Communities, Inc. for the period November 1 ,
1.989 to October 31 , 1990 in the amount of $282 ,527 . Of this
contract amount , $35,000 was for administration costs and
$247 ,527 was earmarked for rental subsidy payments for up to
80 families (This number was later expanded to 99 families) .
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No.7606
,,0ris#,
f0kr To the Mayor and Members of the City Council May 19, 1992
Page 2 of 5
Subject: RENTAL ASSISTANCE/CASE MANAGEMENT PROGRAM
("Operation I Will") - Status Report: 2nd Year
Also included was financial support for an extensive case
management program. Hired were three social workers and a
clerk typist . In addition, money was set aside for
educational assistance for the clients.
PROGRAM DESCRIPTION
"Operation I Will " is a multi-faceted program. Rental subsi-
dy with social services support to families with an educa-
tional emphasis is the mainstay of the project . Through
Liberation Communities , Inc. , the City provided funds to
subsidize rental payments for approximately 99 apartment
units at the Regalridge Square Apartment Complex. This is a
project-based rental assistance program, which means the
subsidy remains with the apartment unit rather than with the
family.
Intensive case management (budgeting, referrals , self-help
seminars, social services assistance, etc. ) is provided for
the total family by an an-site Human Services staff .
Criteria for participation in the program includes:
• income below 80% of the median family income, based
on family size ($7 ,212-$19,400)
* Family members 18 years of age and older who must be
employed (unless full-time student )
• Demonstration of high motivation to become self-suf-
ficient (agree to certain personal goal attainment
within 24 months)
• Agreement to participate in an extensive case manage-
ment program (workshops, seminars , budget counseling,
educational opportunities)
PROGRAM GOALS
The overall goal is to assist the client in moving toward
self-sufficiency by developing a mutually agreed upon case
plan or contract which provides referrals and follow-ups for
support services . The contracts contain short and long-term
goals that are realistic and focused on addressing the spe-
cific needs of the clients in the following areas :
opl- 1) financial assessment , 2) employment maintenance, 3) edu-
cational needs , 4) job training and/or retraining, 5) child
care and 6) transportation. Particular emphasis was placed
on improvement of basic educational skills .
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COlINCIL MEMBERS No. 7606
To the Mayor and Members of the City Council May 19, 1992
Page 3 of 5
Subject: RENTAL ASSISTANCE/CASE MANAGEMENT PROGRAM
(uOperation I Will") - Status Report: 2nd Year
PROGRAM ACCOMPLISHMENTS
0 Educational Assistance Component
On December 18, 1990 (M&C G-8963) , $30,000 of the initial
$622,000 Community Development Block Grant funds was ear-
marked for educational assistance. The funds pay a maximum
of $200 per semester for tuition, books and supplies for
each participant enrolled in a college or skills training
program. The program was extended by City Council on Janu-
ary 17 , 1992 ( M&C- G-9450) , from January, 1992 to Octo-
ber 31 , 1992. To date, $9,355 has been expended with an
available balance of $20,645.
Currently,, 41% of the 61 participants in the rental assist-
ance program are attaining the following educational goals:
00.1 0 25 Enrolled at TCJC (CDBG funds)
- 18 Enrolled in Remedial Classes
- 5 Enrolled in Basic College Course Work
- 6 Working on Degree Plans (eligible to receive
Associate Degrees, spring semester, 1993 )
* 6 Enrolled at TCJC (Pell Grants)
* 2 Enrolled in Fort Worth Independent Schools ' GED
Classes
* I Enrolled in English as a Second Language (ESL)
Homeownership/Self-Sufficiency Component
In addition to the 41% active in the educational component ,
approximately 15% of the program participants are being
prepared for homeownership through the City ' s Urban Home-
steading Program.
The move toward self-sufficiency has been documented for 52%
of the clients. Although not all are ready for homeown-
ership, they have attained the following personal accom-
1) Checking and/or Savings Accounts
2) Automobile Purchases
00� 3) Job Promotions and/or Salary Increases
4) Improvements in Credit Ratings
5) Elimination or Significant Reduction in Indebtedness
6) Enrollment in College or Attainment of G.E.D.
7) Increase in income range -$7,212- $25, 817 from
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
'
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7606
f Rp To the Mayor and Members of the City Council May 19, 1992
Page 4 of 5
X
RENTAL ASSISTANCE/CASE MANAGEMENT PROGRAM
(. zx wr Subject:
("Operation I Willu) - Status Report: 2nd Year
• Program Benefits
The following "cost per participating family" figures re-
flects the average amount expended for a family over the
two-year life of the "Operation I Will " Project
Two-Year Average Per
Family
Rental Subsidy- $170/month $4 ,080
Human Services Staff Time
@2 hrs.- $18/month 432
Educational Assistance
3 Semesters per year
@ $98/semester 294
TOTAL $4, 806
FUTURE STATUS OF PROGRAM
In October , 1991 , the Round Table Committee (composed of
representatives from Liberation Community, Inc. , Regal-
ridge Square management and Housing and Human Set-vices
Department ) , in its monthly meeting, began discussing the
end of the two-year schedule. Although communication with
Regalridge Square management has been frequent , there has
been no indication that there was a desire to continue the
demonstration project beyond its two-year limitation.
In January, 1992 the Human Services staff began assisting
clients in transitioning out of the program. Those indivi-
duals who are enrolled in school at the end of the project
period will continue to receive financial and counseling
assistance until they complete their degree plan or skills '
training program.
Meanwhile, Bryan Stone, Executive Director of Liberation
Community, Inc. , was asked by the Housing and Human Ser-
vices Director , Sandra Gonzales , to address his Board of
Directors concerning possible extension of the program be-
yond its scheduled termination date. In March, 1992 , the
Board expressed its willingness to negotiate an extension
contingent on certain conditions which are:
( 1 ) "Any extension would need to take into serious account
0* the collection of all rents (both tenant ' s portion and sub-
sidy) by Liberation Community. "
(2) "Any extension would need to take into serious account
our provision of at least one component to the overall case
management needs of the program—namely, transitioning the
clients to unsubsidized homeownership, lease-purchases, or
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7606
7M,1.1_ To the Mayor and Members of the City Council
May 19, 1992
Page 5 of 5
U
X N Subject: RENTAL ASSISTANCE/CASE MANAGEMENT PROGRAM
("Operation I Will") - Status Report: 2nd Year
market rental situations. "
Although the contract period for the Rental Assistance/
Case Management ends in October , 1992 , serious discussions
have been ongoing concerning the continuation of the pro-
gram.
There have been some problems with the program on the
property management side. During the week of March 9-18,
1992, a review of the City' s CDBG program was conducted by
the U.S . Department of Housing and Urban Development (HUD) .
One of their concerns centered on the inefficient
maintenance of rental records by the Regalridge Apartments '
office staff . The HUD report stated that "Problems
encountered, as well as the potential for greater problems ,
make refunding questionable. "
Staff feels that the concerns of Liberation Community, Inc.
can be addressed and the contract can be extended provided
that the issues raised by HUD are adequately resolved.
CONCLUSION
For a two-year period, the families in the Rental Assist-
ance/Case Management Program ("Operation I Will" ) have been
provided the opportunity to learn money management skills ,
live in modern, well-secured affordable housing, receive
regular case management services from a trained on-site
Human Services. staff , be exposed to numerous self-help
seminars/workshops and receive financial assistance with
their education. During this time this program has provi-
ded the City of Fort Worth with a group of responsible,
employed tax paying citizens .
For an average cost of $4 ,800 per family over two years,
this program has not only been cost effective in terms of
its operation, but a beneficial and holistic approach for
moving families toward self-sufficiency. The $4, 800 bene-
fit package is a minimal investment for the achievements of
the families . Employment has remained stable, a large num-
ber of heads of households are advancing in their academ-
ic work, some are ready for homeownership, and all have im-
proved their money management and family management skills .
W.0 B rrell
Inter m m Cit�' Manager
BT:WL:do
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS