First Homes Initiative Offers Housing Assistance Challenge Grant

Rochester Area Foundation's First Homes initiative has announced a challenge grant to raise funds to protect dozens of families in Olmsted County who are scheduled to lose federal rent subsidies in the coming months. The First Homes board of directors has pledged to provide a 1-to-2 match of up to $15,000 for this effort if the Olmsted County Housing and Redevelopment Authority and the Community Housing Partnership can raise additional funds up to $30,000.

The effort has come about because of subsidy cuts that affect persons receiving Section 8 Voucher Program rent assistance. Due to changes in practice by the federal Department of Housing and Urban Development, Olmsted County HRA was compelled to eliminate housing assistance payments to 48 households, which house a total of 170 persons.

Three contributions helped stay the cuts from August until October. The Olmsted County Board allocated $34,000 from its contingency fund, and the Olmsted County HRA reallocated $34,000 in mortgage assistance money. At its July 7 meeting, the Rochester City Council approved giving as much as $44,300 from its Community Development Block Grant fund, however, federal rules on the use of the block grant funds likely will restrict Section 8 aid to about $34,000.

The Section 8 Voucher Program provides rent subsidies to those who are very poor, with an average annual income of $10,820. Payments to families in the program averages about $465 per month.

First Homes board member Jeff Vert has experienced firsthand why any type of housing assistance is vital to those who are trying to advance themselves.

"Several years ago, I was an individual who lived in subsidized housing," Vert said. "I was unemployed and receiving Social Security benefits. My housing assistance provided me the opportunity to feel secure that my basic shelter needs were met. I then was allowed to focus on finding employment.

"After a year or so, I found a job and moved from my subsidized apartment to a trailer and just recently purchased a home through the First Homes program. My housing assistance was a crucial element in my ability to become independent in the community."

The HUD cuts, which were instituted in April and made retroactive to January 1, are being felt by housing authorities across the nation. HUD has said that the cuts are temporary and funding should be restored in early 2005. The contributions from local governments and the funds granted by First Homes and raised by HRA and CHP are expected to help bridge the gap until full funding is restored, so no families lose their subsidies.

"First Homes is proud to partner with Olmsted County HRA and CHP to help resolve an emergency funding shortfall that could affect 48 of the lowest-income families in Olmsted County," said Sean Allen, First Homes executive director.

"First Homes recognizes the impact of the loss of 48 rental vouchers on the community, including the possibility of an increase in evictions, the need for emergency shelter, and particularly the effect on the many children who could be displaced, " Allen said. "Children affected by displacement not only lose friends when they move, but they also typically are required to change schools, which can cause additional impact in their lives. First Homes is willing to step up to the plate to help resolve this community crisis related to housing."

For more information on First Homes, call (507) 287-7117 or visit www.FirstHomes.org.

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