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HUD Archives: News Releases

HUD No. 02-072
(202) 708-0685
For Release
June 27, 2002


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 Welfare-to-Work program.

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

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