HUD Archives: News Releases
HUD No. 02-072
June 27, 2002
HUD, FDIC JOIN TO EXPAND HOMEOWNERSHIP OPPORTUNITIES FOR MORE
LOS ANGELES - The Department of Housing and Urban Development and the Federal
Deposit Insurance Corporation today agreed to help more low-income families
become homeowners by linking a HUD program that promotes self-sufficiency with
a FDIC program that teaches people how to better manage money.
"This partnership furthers the Bush Administration's goal to increase
minority homeownership by 5.5 million by the end of the decade," said HUD
Assistant Secretary Michael Liu. "This provides low-income families with
the financial management skills they'll need to achieve the American Dream."
The Memorandum of Understanding between the two federal entities, signed during
HUD's National Homeownership Month, is targeted at Housing Choice Voucher (Section
8) recipients and public housing residents who participate in either HUD's Family
Self-Sufficiency (FSS), Resident Opportunities and Self-Sufficiency (ROSS) or
Each program, administered by a local public housing authority, encourages
communities to work with welfare agencies, schools, businesses and other local
partners to develop strategies to help families get jobs that ultimately lead
to economic independence and self-sufficiency.
FDIC's Money Smart program was created in 2001 to help certain individuals
and families become more financially savvy.
The City of Los Angeles Housing Authority, which runs a FSS program, will be
the first in the country to implement the Money Smart program.
Through the MOU, the agencies will help low and moderate-income individuals
and families to:
- Enhance their money management skills
- Create positive banking relationships, and
- Achieve economic self-sufficiency
Under FSS, the housing authority will establish an interest-bearing escrow
account for participants during the period they are in the program. An escrow
credit, based on increases in the family's earned income, is credited to this
account during the term of the agreement. At the end of the period, the housing
authority will makes this escrow available to the family for such things as
downpayment on a home.
During National Homeownership Month the Bush Administration highlighted other
initiatives designed to increase the number of homeowners, especially among
minorities. These include: 1) the American Dream Downpayment Fund, aimed at
helping 40,000 families each year with down payment cost; 2) a single-family
tax credit; 3) a housing counseling program to help families through the home
buying process and to educate them against unscrupulous lenders.
HUD is the nation's housing agency committed to increasing homeownership, particularly
among minorities, creating affordable housing opportunities for low-income Americans,
supporting the homeless, elderly, people with disabilities and people living
with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD
and its programs is available on the Internet.
Content Archived: April 9, 2010