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CAPITAL REGION
HUD program gives helping hand to families
BY J. JUDE HAZARD Gazette Reporter

    Four years ago, Beth Baldwin and her two children were living on public assistance and a meager $97 weekly child support check. Today, she owns her own home and makes $40,000 a year.
    That turnaround is due in part to the U.S. Department of Housing and Urban Development’s Family Self Sufficiency (FSS) program, which aims to help families like Baldwin’s escape from the grasp of poverty.
    This week, HUD announced more than $700,000 in grants to local public housing authorities to fund the program.
    Baldwin lives in Corinth with her two children, ages 12 and 15. In 2003, she was unable to continue working at her job because of an allergy, but she couldn’t receive unemployment because she was on medical leave with the company.
    She originally sought out the FSS program because of its services and referral network. The program helped her find companies that worked with her to get the college credits she needed for her bachelor’s degree. The program also matches part of the family’s rent payments as income rises, which she can set aside in a bank account. Those matching funds totaled almost $7,000.
    When Baldwin got a promotion, her income was so large that she no longer qualified for Section 8 money and she graduated from the FSS program.
    “It probably was one of the key components to where me and my children are today,” Baldwin said. “The money is a great motivator, but a big part of this is the goals you establish.”
    The program works with families who receive federal HUD Section 8 money to establish a list of financial, professional, and education goals, and then rewards them for accomplishing those goals.
    Under Section 8, those families pay 30 percent of their monthly income toward their rent and HUD covers the rest.
    If a family’s income rises, then their contribution to the rent rises and the HUD contribution falls, but under the optional FSS program, that extra money the family is paying toward their rent is matched by HUD and put in an escrow account.
    If the family meets all of the goals within fi ve years, or its income increases so much that it no longer qualifies for Section 8, HUD writes them a check for the money that accrued in the interest-bearing account.
    Families also have to stay off of welfare to be eligible for the money. If a family fails to meet the goals within five years, the money that was in the escrow account goes back to HUD.
    The $710,000 worth of grants will pay for the salaries of local FSS coordinators.
    Joseph E. Mastrianni Inc, a consulting firm in Schenectady, administers numerous area FSS programs, including those in Rotterdam, Scotia, Ballston Spa, Colonie, and Johnstown. Amy Daniels is the company’s FSS director.
    “If people have money in their escrow account, they can use it to pay off debt that they would not be able to get out from under normally,” she said. “It’s a tangible thing that people can walk away with, and that is an asset.”
    The program starts out by creating a budget and giving families tips for eliminating debt. It also provides referrals to local companies based on the family’s needs, such as education, medical, or debt relief services.
    Families then establish at least two long-term goals, usually home ownership or full-time employment.
    According to figures provided by Jim Mastrianni, the president of Joseph E. Mastrianni Inc., typically about one-fourth of Section 8 families in local municipalities that have an FSS program participate.
    For example, in Ballston Spa, there are 123 families receiving Section 8 money. 32 of them are in the FSS program, and the average escrow account has $3,000 in it.
    “The goal of this is to move folks off of public assistance into jobs,” Jim Mastrianni said. “There are a lot of working poor out there who are working and still can’t afford their rent.”
    Companies like Mastrianni’s or local public housing authorities decide who best qualifies for the available FSS slots based on need and then asks those families if they want to participate.
    “This escrow was very beneficial because it made you want to use your goals to better yourself to make more money,” Baldwin said. “I’m achieving things that I’m able to achieve because I’m motivated to.”
    Capital Region municipalities receiving HUD money for the FSS program are: Albany, $145,000; Schenectady, $93,000; Troy, $55,000; Mechanicville, $32,000; Cohoes, $47,000; Amsterdam, $49,000; Colonie, $51,000; Guilderland, $51,000; Johnstown, $32,000; Scotia, $28,000; Rotterdam, $53,000; Corinth, $32,000; and Ballston Spa, $32,000.
    HUD provided nearly $60 million nationwide for the program.

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Four years ago, Beth Baldwin and her two children were living on public assistance and a meager $97 weekly child support check. Today, she owns her own home and makes $40,000 a year.

I think if we put any legislators/justices name here and multiply the numbers 100fold we would have our government systems and those elected.......

This is an excellent program.  We have the same program in D'burg (although they didn't mention it)  Mastrianni's office comes out once a year to provide us with an overview and explain details.  I am generally against the freebie rent deal but the self sufficiency program has been a huge success.  It gives people a goal and a sense of self esteem.  The participants should be proud to finish such a program, it is a huge accomplishment and gets them off of public assistance.  

I'm all for programs that help people get on their feet and become self supporting in a set time limit. I'm totally against career welfare recipients who think welfare is a job.

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I'm all for programs that help people get on their feet and become self supporting in a set time limit. I'm totally against career welfare recipients who think welfare is a job.

I couldn't agree with you more.  Unfortunately there aren't enough programs like this and too many career welfare recipients.

I know of someone who was on this program and now owns her own home and is off public assistance. It is a great program. But she had the potential and desire to do better to begin with. Good program!

Potential and Desire....

You can lead a horse sheep to water but, you cant make him/her drink......

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You can lead a horse sheep to water but, you cant make him/her drink......

True. And that's why sometimes the government is just throwing good money after bad!

But sometimes they throw good money and it works out, as with this program.

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But sometimes they throw good money and it works out, as with this program.

True and refreshing!

....And admittedly RARE

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But sometimes they throw good money and it works out, as with this program.

It's still why should we who make the right choices and to the right thing, and sacrifice, do without so we can save for a house, but we have to pay such high taxes so that people who chose to bed hop and perhaps wind up pregnant, choose to drop out of school, etc, many who made the right choices have to go without a house just so those who made the lazy choices can get a house.  Rental assistance for a period of time I can understand, but these people should not be getting handouts from us hardworking people just for a down payment for a house.  We worked hard, we did without things we wanted, just so we could put money away.  The only "good credit" many of them have is from rent-a-center

The person I knew, is a single woman who is the legal guardian of a 'crack baby'. She has raised this child since birth and this child is now 10-years old. She does and excellent job of raising her in a good school system with a christian upbringing. She works 4 days a week as a nurse. Now, because she has this child, she is eligible for HUD assistance. So she now owns a very very modest home and it is now her entire responsibility. NO MORE HAND OUTS!

So I consider her a success story.

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It's still why should we who make the right choices and to the right thing, and sacrifice, do without so we can save for a house, but we have to pay such high taxes so that people who chose to bed hop and perhaps wind up pregnant, choose to drop out of school, etc, many who made the right choices have to go without a house just so those who made the lazy choices can get a house.  Rental assistance for a period of time I can understand, but these people should not be getting handouts from us hardworking people just for a down payment for a house.  We worked hard, we did without things we wanted, just so we could put money away.  The only "good credit" many of them have is from rent-a-center

I agree with you mc1, this is the core of the problem.  But as a reaction to solving a problem that exists it is much better then paying their rent, food, and utilities for a lifetime as does our welfare system.  It is atleast getting a few people OUT of the system and on their way to being a productive citizen.  I would rather see a program like this then just throwing up our hands and paying them to live.  You agree with rental assistance for a period of time, well this is rental assistance with a kick.  Instead of just taking from us hardworking people, the person has to prove worthiness and put a substantial amount of effort into becoming self sufficient.