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BANGOR HOUSING AUTHORITY

FAMILY SELF-SUFFICIENCY

PROGRAM DEVELOPMENT ASSESSMENT

JANUARY 2014

Prepared for

John T. Gorman Foundation Portland, Maine

Prepared by

Delia Kimbrel, Research Associate

Institute on Assets and Social Policy The Heller School for Social Policy and Management

Brandeis University, 415 South Street, Waltham, MA 02454

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BANGOR HOUSING AUTHORITY FAMILY SELF-SUFFICIENCY

PROGRAM DEVELOPMENT ASSESSMENT

JANUARY 2014

INTRODUCTION

Assessment Objectives

Housing-based, family self-sufficiency programs are innovative approaches that addresses

several enduring policy goals by providing a structure for savings and asset building for low-

income families. Among these programs, the Family Self-Sufficiency (FSS) program is designed

to help families living in public housing and those using Housing Choice Vouchers (HCV,

formerly Section 8) progress toward self-sufficiency by reducing disincentives to working and

assisting low-income families acquire valuable savings.

Seeking new ways to further its work with low income families, the Bangor Housing Authority

(BHA) in Maine is interested in expanding the existing FSS program serving those with Section

8 vouchers (HCV) to families living in BHA public housing. The intent is to develop a

potentially higher impact model for the FSS program with a focus on helping families overcome

barriers to work, improving their financial stability, and building assets.

To aid in this development, the John T. Gorman Foundation provided support for this research

assessment exploring the potential for expanding and enhancing the FSS program in Bangor.

The assessment was conducted by the Institute on Assets and Social Policy (IASP), a research

institute at the Heller School for Social Policy and Management, Brandeis University.

This assessment illuminates the successes and challenges of the existing FSS model at BHA, as

well as documents and assesses families’ pathways for success and barriers to achieving

economic security. These findings and data will be used to guide the design and

implementation of a new FSS program initiative to be administered by BHA that may serve as a

model for further FSS program development by other public housing authorities throughout

Maine. To achieve this objective, this assessment seeks to answer three main research

questions:

1. What are the aspirations, needs, as well as barriers to work and economic advancement

for BHA public housing residents?

2. What are FSS participants’ goals and motivations for enrolling in the existing program,

benefits of participation, and recommendations for improving the FSS program?

3. How can BHA enhance the FSS program in Bangor, ME to deliver consistently strong

outcomes and ensure families receiving housing assistance use the opportunity to

advance on a pathway toward economic security?

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Overview of HUD’s Family Self-Sufficiency Program

The HUD Family Self-Sufficiency (FSS) program is designed to help families living in public

housing and those using Housing Choice Vouchers progress toward self-sufficiency by

reducing disincentives to working and assisting low-income families acquire valuable savings

over a five year period. The FSS program was enacted by Congress in 1990 and is administered

by state and local public housing agencies (PHAs). FSS combines (a) stable affordable housing

with (b) case management services to help families access the services they need to pursue

employment and achieve other goals, and (c) an escrow account that grows as families’ earnings

grow.

The escrow account functions as both an asset-building vehicle and a tangible financial

incentive for families to increase their earnings. It creates a structure for residents to save the

money that would otherwise go toward increased rent triggered by increased earnings.

Participants can withdraw the money in the escrow account upon successful completion of the

program and achievement of their goals and are not restricted in its use. HUD reimburses

PHAs for FSS escrow costs and through an annual application process provides limited funding

for FSS coordinator positions based on local FSS enrollment patterns. Housing authorities are

expected to cover other costs associated with recruitment, ongoing communications with FSS

clients, and any additional programming.

Currently, HUD runs two separate FSS programs: one within the HCV program and the other

within the public housing programs. Together the FSS programs serve 57,087 families,

nationally.1 A new congressional legislation proposes to give HUD authority to merge the two

programs, streamlining application, tracking, budgetary, and reporting requirements. Merging

funding streams would also simplify service coordination at the PHA level.

Results of Previous FSS Program Research:

Although research on FSS is limited, preliminary evidence from the field indicates that FSS is a

promising employment enhancing and asset building tool. To date, FSS studies have been

observational, rather than experimental in nature, and based on an analysis of administrative

reports submitted to HUD. Program success has been documented in four main areas:

increased earnings, higher employment levels, asset growth, and homeownership. Below is a

summary of key outcome data from these preliminary studies:

Earnings increases for FSS graduates were robust with the average annual income for

FSS graduates increasing from $19,902 to $33,390 between 2005-2009.

Programs report employment gains among current FSS participants to be 40% or more.

On average, FSS participants graduate with $5,300 in savings from their escrow account.

A review of escrow data submitted to HUD in 2011 indicated that average escrow

accounts ranged from $230 to $27,000.

1 FY 14 FSS HUD Congressional Justification. Public and Indian Housing Family Self-Sufficiency Program 2014 Summary

Statement and Initiatives. http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv/fss.

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On average, 20% of HCV families that completed the FSS program no longer needed

rental assistance. Of those HCV families, 15.5% moved to homeownership. 2

FSS Program Scope Nationally and in Maine

Despite the well-documented advantages of the FSS program, preliminary data indicates that

the program is still vastly underutilized nationally and in Maine.

Although nationally there are about one million (1,081,540) non-elderly/non-disabled

families receiving Housing Choice Vouchers (HCV) which is the ideal target population

for FSS, only 48,000 voucher recipients participate in FSS programs. Thus, it is estimated

that less than 5 % of HCV residents are currently enrolled in the FSS program.

In addition, there are fewer than 1,100 FSS programs nationwide; therefore only 42% of

PHAs offer FSS programs. Most agencies that do offer FSS sharply limit program size.

Maine data mirrors national data, as only 32% (8 out of 25) of PHAs in Maine offer the

FSS program.

The FSS program data currently collected (and required) by HUD is minimal and does not

provide a clear picture of the program’s current operations or effectiveness in Maine and

elsewhere. While there is some indication that innovative features (i.e., financial education,

intensive case management, work enhancements) lead to greater economic outcomes, lack of

experimental design methods has made it difficult to assess the impact of particular

programmatic enhancements on individual-level economic outcomes. It is intended that BHA’s

variation on the FSS program will include a combination of innovative program features that

will be subject to evaluative research to determine the individual outcomes and overall program

benefits and the potential for replication.

FSS Program Structure at Bangor Housing Authority

The Bangor Housing Authority is a quasi-governmental agency that provides housing

opportunities for low to moderate income households. BHA administers a combination of 741

affordable and market rate apartments in seven developments throughout Bangor. BHA also

administers the Housing Choice Voucher program in the city and the surrounding communities

of Hermon, Glenburn, Hampden and Veazie. BHA began its FSS program for HCV users in the

1990’s and currently is serving 25 participants. The mission of the BHA FSS program is to

encourage HCV participants to become employed and progress to a point where housing

assistance is no longer needed. BHA has one Resident Service Coordinator that functions as the

FSS Program Coordinator. The FSS coordinator is in charge of program management including

recruiting, maintaining contact with FSS participants, creating FSS contracts and service plans,

advising participants regarding their goals, making service referrals, and case management.

2 United States. Dept. of Housing and Urban Development. Office of Policy Development and Research., Planmatics, and Abt

Associates, (2011). Evaluation of the Family Self-Sufficiency Program: Prospective Study. [Washington, D.C.]: U.S. Dept. of

Housing and Urban Development, Office of Policy Development and Research.

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IMPROVING ECONOMIC WELL-BEING OF PUBLIC HOUSING RESIDENTS

Survey of Public Housing Residents

The BHA hopes to be able to offer its FSS program to public housing residents which will give

additional opportunities for approximately 500 non-elderly, non-disabled low-income families

to participant in the FSS program. When assessing the potential for expanding the FSS

program, it is important to understand the economic service needs of the Bangor public housing

community. To provide information about the economic characteristics of Bangor housing

residents, all public housing families were asked to complete a Family Well-being Survey. This

survey captured demographic information and assessed financial skills, access to financial

services, and self-perceived financial well-being. Survey items are self-reported and are

primarily dichotomous yes/no questions measured at the ordinal level (i.e. 5-point scale from

strongly agree to strongly disagree). The survey was developed by IASP staff and adapted

from survey instruments previously used and tested with a similar population. The survey was

administered door to door to all public housing residents by the Bangor Housing Authority

during the period of June 2013-October 2013. Confidentiality was maintained by residents who

anonymously deposited completed surveys into a drop-box. Surveys were returned by 121

households. (See survey instrument in Appendix A and survey results in Appendix B.)

Demographic Characteristics of all BHA Public Housing Survey Respondents

Key characteristics of the 121 survey respondents are as follows: (See Table 1 in Appendix B.)

Respondents are primarily female (86%). They range in age from 18-65 years, with 60%

of respondents between the ages of 25-44.

93% of households have children in the home with vast majority being female-headed.

Nearly a third (32%) have a high school diploma or GED and only 5% have less than a

high-school education.

56% have some college and 8% have a bachelor’s degree or above, resulting in a

seemingly educated group, although these education levels are lower than the education

levels of the wider Bangor population. For example, the percentage of the Bangor

residents with a Bachelor’s degree or higher was 28% in 2010.3

Responses of Residents Most Likely to Fully Benefit from the FSS Program

In an effort to understand how the FSS program can provide the greatest impact on those who

can work and advance in work, it is important to observe the key characteristics of respondents

who are non-elderly and/or non-disabled. Eighty-seven of the survey respondents self-

identified as being neither elderly nor disabled. (See Tables 2 through 6 in Appendix B.)

Key Characteristics of the 87 (non-elderly/non-disabled) Survey Respondents

23% have lived in public housing for less than two years; 32% have lived there for two to

five years; 30% have received housing assistance for 5 to 10 years.

3 City of Bangor, Planning Division; 2012.

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While 60% of respondents work, only 37% of these report working 35 hours per week or

more. However, interviews illustrate that some residents work multiple jobs equivalent

to the hours of full-time employment, but without the benefits of a full-time job.

Of the 40% who are unemployed, nearly half are typically employed part of the year.

Income and Public Assistance

The vast majority (90%) of these 87 public housing households have annual incomes below

$30,000. A quarter struggle to live at extremely-low income levels of less than $10,000 annually.

These income levels place public housing residents solidly among the ranks of lower income

residents in the city of Bangor where median household income is $36,246 and 25.3% of

households fell under the poverty line in 2013. 4 (See Table 3 in Appendix B.)

However, some participants have additional income supports available to their families. These

include child support, TANF, and SSI/SSDI. Many households also receive other public benefits

in addition to their housing subsidy. For example, more than three-quarters (78%) of

households receive assistance from the Supplemental Nutrition Assistance Program (SNAP,

formerly known as food stamps). Nearly 40% receive assistance through WIC. More than half

(58%) receive Medicaid or Medicare. The 14 participant households receiving TANF assistance

is noteworthy since a family must stop receiving TANF assistance for a period of 12 months

prior to graduating from the FSS program. (See Table 4.)

In summary, the income and economic characteristics of BHA public housing households

illustrate that the Bangor housing program serves a very vulnerable segment of the Bangor

community. The employment and income findings observed among these household is

consistent with national trends which show that while a large percentage of the public housing

population work, many are under-employed and some experience immense barriers to work

and economic advancement. The economic vulnerability raises the challenge of how to help

these families escape poverty, overcome barriers to work, and achieve upward mobility.

Perceptions of Economic Well-being

Another important objective of the assessment is to understand resident perceptions of their

own economic well-being. This focus is supported by the existing research related to the effects

of asset accumulation documented by the American Dream Demonstration as well as in other

matched savings account and financial empowerment programs. These imitative have

examined the impact of saving and asset-building programs on social and economic well-being.

The evidence in the literature support that savings and assets appear to increase economic

stability in households, decrease economic strain, and promote educational attainment, self-

efficacy, and a positive future orientation.5 There is also some indication that these effects are

4 Source U.S. Census Bureau: State and County Quick Facts. Data derived from Population Estimates, American Community

Survey, Census of Population and Housing, County Business Patterns, Economic Census, Survey of Business Owners, Building

Permits, Census of Governments 5 Moore, Amanda et al. (2001). Saving, IDA Programs, and Effects of IDAs: Down payments on the American Dream Policy

Demonstration, Center for Social Development. Washington University, St. Louis.

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particularly strong for economically disadvantaged individuals. While research that

demonstrates similar economic effects for FSS program participation is limited, this assessment

provides an opportunity to explore this question in the context of a public housing program.

The Family Well-Being Survey administered to residents incorporated widely used measures of

well-being related to future orientation, perceived economic strain, and self-efficacy. Economic strain

is defined as the perceived inability of household members to afford food, medical/dental care,

suitable housing, utilities, transportation, and clothing. The response scores indicate the

greatest agreement with statements regarding the shortage of money for every day expenses

and getting ahead. It is important to note that nearly three-quarters (72%) of participants agree

or strongly agree with the statement that it is hard to live on their present income. In addition,

nearly half indicated worrying about losing housing assistance if they make too much money at

work. However, a high percentage feel encouraged that they will be able to support their

families without housing assistance in the future. (See Table 5 in Appendix B.)

Respondents also indicated a healthy orientation toward positive financial practices such as

goal-setting and saving. In fact, more than three-quarters have a checking account and two-

thirds have a savings account. (See Table 6 in Appendix B.) These positive indicators illustrate

apparent optimism and motivation. These findings are consistent with interview narratives

from FSS participants that illustrate the difficulty families’ face meeting household expenses

and other limitations with having low-income. However, participants remain optimistic and

are working to find ways to improve their family’s future. Figure 1 below illustrates the degree

to which participants agree with each statement. Individual participant experience with

economic strain were detailed in qualitative interviews and are reported in the next section.

Figure 1: Experience with Economic Strain (N = 87)

Shobe, Marcia and Kameri Christy-McMullin (2006). Joining an Asset Building Program: The Social and Economic Correlates.

Journal of Evidence-Based Social Work. 61-78.Vol. 3(1).

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Hard to Live onIncome

Cannot affordeducation or

training

Worry aboutlosing housing

Support familyw/o housing

I establishfinancial goals

I save regularly toachieve goals

Strongly Agree

Agree

Disagree

Strongly Disagree

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Barriers

Just as BHA residents indicated feeling significant economic strain in their lives, they too

recognize the barriers that make it difficult to achieve their goals. Overwhelmingly,

respondents indicated employment related barriers or problems with credit and debt as

challenges they are facing. Nearly 70% indicated low paying job as their greatest obstacle to

getting ahead. (See Figure 2 below.) Nearly two-thirds identified poor credit score and another

59% reported debt problems as barriers to getting ahead. The chart below, illustrates the seven

highest ranking barriers out of fifteen different choices. It is important to note that lack of skills,

education, and training ranked in the middle (7th out of 15), which is somewhat to be expected

given the relatively high education levels of this group noted in the earlier section. Therefore, it

can be ascertained that respondents do not believe their employment related barriers are a

result of limited skills and training as much as the current landscape of available jobs in the

community not being matched to their skills and limited opportunities to advance at work.

Figure 2: Barriers to Achieving Financial Goals (N=87)

Providing the FSS Opportunity to Public Housing Residents

Respondents overwhelmingly expressed a need and willingness to participate in a program

such as FSS, if it was offered. When asked, “Are you interested in participating in a program to

assist with employment, education, saving and other financial goals?” 55% of respondents

indicated yes. When asked why they wanted to enroll in FSS, their survey responses reflect a

strong desire to find resources that can help get ahead and move out of public housing. Figure

3 indicates that respondents are highly motivated to work toward moving out of public

housing. They also want to participate in the FSS program to access resources to help their

family get ahead and to receive support with credit/debt and learn strategies to save. These

responses are consistent with accessing supports and resources necessary to overcome the

barriers identified earlier.

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Figure 3: Reasons for Wanting to Participate in an FSS Program (N=87)

UNDERSTANDING THE FSS PROGRAM EXPERIENCE OF BHA HCV USERS

Interviews with existing FSS participants were conducted to learn more about participant

experiences in the current program. All 25 FSS participants were invited to participate and

could choose an in-person or phone interview, or focus group. Several attempts were made by

the housing authority, as well as IASP researchers, to encourage participation in the interview

study. The information presented in this section was reported by six FSS participants who

agreed to participate. Overall these participants spoke favorably about their experience in the

FSS program and provided positive assessment of the program as it related to equipping

participants with needed economic resources, information, and service referrals in their efforts

to achieve self-sufficiency. This section takes a closer look at participant perspectives of core

features of the BHA FSS program, providing a deeper examination of participant satisfaction

with program implementation, content, services and delivery. The information will guide an

understanding of what works well, as well as the improvements and enhancements that can be

adopted with future FSS expansion.

Reasons for Enrolling: Overcoming Economic Barriers and Setbacks

A core objective of the FSS program is to assist housing participants with services and resources

in their efforts to achieve employment and self-sufficiency. When recalling their motivation

and aspirations for enrolling in the FSS program, several participants noted the challenges and

setbacks they were continually experiencing, and also being frustrated with limited resources

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for low-income families which caused great discouragement in their lives prior to joining FSS.

Participants repeatedly used phrases like “feeling stuck”, “wanting to get out of the system”

and “wanting something better for my kids” as their primary motivations for enrolling.

Participants also mentioned wanting a program that could help set and achieve specific goals

such as finishing school, acquiring savings, a better job, or leaving the HCV program.

Participants express their hopes when joining the FSS program.

“I wanted to become self-sufficient and self-reliant—it is hard to get out of the system—I need

enough to make ends meet. I needed something to get out of the system. Part of it was the savings.

And needing to set goals. Also it is really difficult to get out of the system once you’ve been in it.

And the sad thing is right now it cost more for me to work than not because of high childcare.

But, I don’t want to be like some people who are just popping out babies. And getting more

money from the state. I would like to work to make ends meet and have a little left over to save

and get somewhere in life. I want that.”

“My goal was to become self-sufficient, I was on my own and I was trying to finish school. I am

receiving a medical certification. I wanted self-sufficiency which means for me being able to take

care of myself and my family. Not rely on public assistance and public housing. Have a stable

career and the means to “move up” and just having stability. But it is hard as a single-parent this

program has helped here and there. But I am motivated and already connected to the

community.”

“What caught my attention, is that savings thing that they do where they put your rent increases

in an account. It’s called escrow but it’s like a savings. Which I like and a key reason why I

joined. I used to have savings (chuckles) but I’m lucky to even have 20 bucks to my name when

the bills are done each month. So it’s just some extra help to get me out of the system like she

said, it’s easy to get in but not easy to get out.”

Setting and achieving goals are important, however participants face difficulty putting them in

place and need ongoing support from the FSS case manager to overcome setbacks in their

efforts to achieve their goals.

“I wanted to enroll in an online school in design –but it is even hard to get to the steps you need to

take in order to meet your goal. My case manager did make a referral to a program. But I couldn’t

take out a loan because I am on a debt management program. I can’t afford the application fee. But

the school doesn’t accept a state waiver. So it was just so many barriers.”

“I don’t want to let my case manager down. My goals are over there. And I’ve had a lot of difficulty

putting them in place. I just go, go, go. I’m like a hamster in a wheel. When I feel like I’m not going

anywhere. I try to keep at stuff. But it is so much sometimes. I’m just trying to get by. I’m

working. I’ll have my bachelors in mental health and human services. I just need to take 3 more

classes. But it’s been 2 years since I’ve been back to school. It’s so stupid! It’s so pathetic. Somebody

ought to kick me in the ass! But with people kicking you as you go. It’s hard. People not believing in

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you, not helping you, or just cutting you in half—like with my food stamps getting cut off. I don’t

hardly make anything so why would you cut what I need the most? What we go through as single-

parents is just ridiculous sometimes. And, I work. I have a full-time job!”

When participants discussed the highs and lows in their efforts to achieve their goals, many talk

about their aspirations to save and how the opportunity to accumulate money in the escrow

will play a significant role in their family futures.

“The escrow was a big reason why I joined. I want to be able to do something “BIG” with it to have

grounding - to buy a car, or put a down payment on a house. Obviously you’re going to need more

than $15-17,000 but it’s a start. And it would be a significant amount to put with other savings.

That is what can really change things for me and my family. That is what I’m looking for.”

“I think the escrow account really gives people a reason to be encouraged about something. I mean I

know a lot of people that don’t have any goals to begin with and it kind’ve gives them an extra boost

to get off their butt and do something with their lives. Maybe its hope - hope in terms of having a

lump sum or having a chunk of resources to do something with. A resource that go toward

improving their lives. I know I would like to take advantage of it and buy a house. So, it definitely

gives people a reason to make some important changes.”

Barriers to Greater Employment and Work Advancement

Many participants discussed how their work situation could be improved and their challenges

in overcoming unemployment and under-employment. A large part of this discussion focused

on challenges with finding jobs that pay enough to meet their expenses and a living wage. As

Emple (2013) found in her assessment of FSS programs, finding living wage employment, a

mismatch of skills to available jobs, and lack of career advancement are consistent barriers faced

by FSS participants across the country. 6 A few participants discussed using school or taking up

job training as a strategy to improve employment opportunities. Others discussed strategies to

stabilize work hours and increase their wages. Although employment status, work experience

and satisfaction varied, an overwhelming theme was that respondents wanted greater career

mobility and advancement and were frustrated with the current job market and growing job

insecurity.

Participants discuss their work improvement strategies.

“I am just doing this part-time job while I’m in school. But after graduation, I hope to have a job

and career in my field and what my degree is for. I’ll have substance abuse Rehab certification

and Child and Youth mental health certification. I’d like to work in adolescents’ prevention for

drug and alcohol. I just hope I can find something relatively quick after I finish. The reason why I

even went back to school is because there’s really not much out there for people who don’t have

some type of education. Like here at Bangor, I feel like it’s a bit of a push to go and just get any

6 Emple, Hannah. (2013). Asset-Oriented Rental Assistance. Next Generation Reforms for HUD’s Family Self-Sufficiency

Program. Asset Building Program. New America Foundation.

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job. Like McDonald’s or Walmart and they don’t pay nearly enough. I do feel it. Just the sense of

being on public assistance that people on public assistance should be working anywhere. I don’t

feel it from (FSS coordinator). She is supportive. I’m just trying to go to school. And trying to

better myself.”

Limited opportunities to earn a living wage and the difficult tradeoffs.

“I’ve been so stuck for the past six years in my life because I can’t make more money because I’ll

lose my Maine Care and food stamps. I would love to make more money, but it doesn’t pay off for

me. There’s nothing out there that will pay enough. That is what has me stuck for so long. And I

just can’t take a chance of losing these two things.”

“Can’t do much to go to school because, can’t afford it and you’re penalize for working and trying

to get ahead and trying to balance whether or not it’s worth it to lose your benefits for the sake of

working a job that doesn’t even pay more than your benefits or just barely. Basically you have to

balance being worse off sometimes. When you try to get help—you get shuffled along.”

Perspectives on BHA FSS Program

This section takes a closer look at participant perspectives of core features of the BHA FSS

program, providing a deeper examination of participant satisfaction with program

implementation, program content, services and delivery.

Promoting participation in the FSS program

Most participants recalled vaguely learning about the FSS program, but overwhelmingly

believe the program can be communicated better and that housing staff should be more familiar

and have correct information about the FSS program. While participants greatly appreciate and

feel supported by the FSS coordinator, they feel that BHA should provide greater program

support and engage in constant communication about the program.

“The program is not communicated well especially from the Section 8 reps. It is difficult to get

information from them. I asked about it several times and it was like they didn’t know how to get

me on the program or to set things up. But I kept asking. But just imagine about all those who

don’t.”

“The orientation is really the only time they mentioned FSS and they glazed over it so fast. I was

actually told that I had to be in housing for a year, found out that wasn’t even the case. But, I really

wanted to get in as soon as they mentioned it. I’ve been trying to get information since February.

The case worker or section 8 rep I had before I got into FSS was a new worker and she really didn’t

know about it herself and therefore she really couldn’t tell me what I needed to know. There was just

a lot of things she didn’t know.

One participant noted her frustration with what she perceives as poor organization and

management that could ultimately pose a great burden to participants.

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“The FSS coordinator was working full-time now she’s only working a few days of the week. So I

have issues when she is not there. Because it is so confusing who is supposed to handle what.

Information is not structured or managed. Nobody knows about stuff. Sometimes I feel they don’t

want people in the program. The program is really unorganized—I hate to say it. (Concerningly

says, “I know I’m being really negative”). I am a little confused on what the escrow can be

accessed for. I was told you have zero access unless they approve it, but no one tells you what you

can use it for. It is really frustrating because you submit all this paperwork and then they lose it

and act like you didn’t turn it in. Every time you need something you have to jump through

hoops to get them to help you.”

A few participants mentioned that the lack of communication about the escrow is discouraging.

“I really don’t know if they told me about the escrow. I just know there was funds accumulating

along the way. I had plans to use it for my future. But now I had an income decrease and my rent

actually went down. Which is disappointing because I want to accumulate money in escrow. But

I called to get more clarification about it because it isn’t clear what happened and what what’s

going on with the money. It also isn’t clear if I can use the money.”

“The escrow seems really confusing. As far as I’m told, I need to work full-time and I pay rent

and there’s escrow. I don’t know about any balance. I don’t feel this money is really mine.

Actually, the more I talk about it the more I really don’t get why I’m even in the program

sometimes. I don’t know exactly what the criteria is but it’s like you can’t question because you

need them to help you. They helped me before to put on a car loan with it.”

Perspectives on Case Management Sessions

As outlined in a previous section of this report, case management is a crucial function of the FSS

program. Participants are expected to meet with their case manager to discuss their goals and

progress made in regards to employment, education and training, income and savings, credit

and debt and other areas important to the participant’s pathway for economic advancement.

Interview respondents mentioned several times that they appreciated the opportunity to meet

with a case manager/coordinator. Several participants noted that the individual meetings

allowed them the opportunity to address specific challenges unique to their situation.

Participants were very detailed in describing the activities and tasks initiated by the case

manager/coordinator and their level of satisfaction with each session.

“(FSS coordinator) is so helpful she’s way nicer than everybody else. I see how they can be with

people in these programs. You get a lot of slack from everybody here. She is pretty much the only

person I liked to talk to here. I know it’s their job. I know they see a lot of people that don’t have

any goals and don’t want to get off of public assistance. But, you can really see how they are. But

she helps with budgeting and she provides worksheets. She goes beyond expectations.”

“Yes she makes contact with me by mail. I get something in the mail every couple of months.

Updates, notices about credit counseling etc. I think we meet once every 6 months. We discuss

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my goals and how things are going. We discussed credit. I knew I had some credit issues. They

had different workshops—someone from the bank did a credit counseling workshop. I had credit

report pulled. Which has helped me get my credit back on track. (FSS coordinator) gave me name

of a specific person to get help with debt. Which has really helped me.”

“I received assistance with my resume. I was doing it wrong. I got a lot from this. She really

helped me conceptualize my skills and work goals. She is a very patient person. People are out

here struggling and need advice and somebody to talk to on where they want to go in life. And she

listens and willing to help.”

Some participants want more routine contact with the FSS Coordinator.

“Yes I met with her. Seems like we play a lot of phone tag. We need to meet in person. So we can

be on the same page. I definitely would like more regular meetings with her. “We don’t meet with

her very often.”

“I don’t know how often I met with her. I’ll give her updates here and now. But know I haven’t

seen her this year. But, she’s made it clear she wants updates here and there but I guess today

when I brought in my income stubs and transcripts it was with someone else. I guess we should

probably meet more.”

Referral Assistance/Connecting to Other Agencies

In addition to being satisfied with the content and delivery of the case management sessions, a

few participants touched on how they appreciated the resources and referrals to other agencies

the FSS program had to offer. However, participants mentioned wanting community services

and agencies to be more connected and streamlined. Several participants discussed their

frustration with “shopping” around for services.

“She’s made referrals in the community. Like to PenQuist for a savings matching program the

IDA program, I guess. I’m pretty sure that’s what it is. But it was only for homeownership and

only for people who have earned income.”

“I like that Bangor is connected to the community. I would like to see better collaborations and

cooperation among agencies. I was already connected to services because my son is in the

disability health system.”

“The outlet to know what programs are out there to help people is really needed. Food, shelter,

heating. There should be a notebook or a file in the computer that (FSS coordinator) could give us.

So she can say if you’re having this problem you can look on this page and there’s the list of

agencies that can help and the contact person. Instead of ‘go over here’ or ‘over there’ and ‘that

agency may know, or that agency may can do this’. No! There should be something better out

there to identify what’s out there. It’s like we’re shopping around for somebody to help us—and

we run into a lot of dead-ins. And we don’t have the resources to run all over town to keep

running in to dead-ins.”

15

Optimism and Appreciation for the Program

“I think BHA has come a long way especially in terms of improving the Capehart area. I am

happy I am in the program. I do think it would benefit me more if I wasn’t currently in school.

But I am just focused on the long-term goals right now and that’s getting things paid off and

getting savings with the escrow once I graduate and start working in my career. So the program

has been good at just helping me make the steps I need to make to put things in place for me and

my daughter.”

OPPORTUNITIES FOR EXPANDING FSS: ELEMENTS AIDING SUCCESS

Historically, the objective and structure of the FSS program has focused on efforts to increase

employment and earnings for those receiving housing assistance as a means to self-sufficiency.

More recently, innovative financial education and asset-building programs are being

implemented with the goal of providing families with a comprehensive set of supports for

economic advancement beyond employment and income while they have the platform of stable

housing. These programs aim to support families in their efforts not only to grow their income,

but to also manage finances, address credit and debt concerns, and build savings and assets; all

essential for long term economic well-being.

More initiatives are seeking to leverage the asset-building potential already embedded in the

FSS program. As previously highlighted, the FSS escrow component represents a promising

strategy for helping low-income families build assets. Prior research has illustrated that FSS

graduates have succeeded in accumulating significant escrow savings, with the average escrow

balance at the time of graduation being about $5,300 according to the recent 2011 evaluation of

HUD’s FSS program.7 The emphasis on asset-building is consistent with the growing

recognition that assets play a critical role in breaking the cycle of poverty. Literature on the

importance of assets illustrate that families with assets have greater potential to progress to

financial security by establishing emergency savings for the family, investing in post-secondary

education, or securing reliable transportation to maintain steady employment.8

The findings from this assessment provide evidence that BHA public housing residents will

benefit from an expanded approach to the FSS program that places emphasis on the dual

objectives of greater employment opportunity and asset-building and financial empowerment.

Participants overwhelmingly identified a combination of employment related barriers as well as

credit/debt issues as factors prohibiting their advancement. Moreover, the primary reasons for

wanting to participate in an FSS program, if made available, noted by respondents were to (1)

7 United States. Dept. of Housing and Urban Development. Office of Policy Development and Research., Planmatics, and Abt

Associates. (2011). Evaluation of the Family Self-Sufficiency Program: Prospective Study. [Washington, D.C.]: U.S. Dept. of

Housing and Urban Development, Office of Policy Development and Research. 8 Moore, Amanda et al. (2001). Saving, IDA Programs, and Effects of IDAs: A Survey of Participants:

Downpayments on the American Dream Policy Demonstration: A National Demonstration of Individual

Development Accounts. Center for Social Development. Washington University in St. Louis.

16

work toward moving out of public housing, (2) find resources to get ahead, (3) learn about

increasing credit/reducing debt, and (4) strategies to save. These findings point toward a

comprehensive set of resources designed to foster work and career advancement while also

facilitating financial empowerment through credit growth and asset-building.

Existing efforts and innovative initiatives where the FSS program is used to advance both

objectives have had promising results with families making progress toward economic security

on multiple fronts. Both programs below can serve as successful models of how to incorporate

a comprehensive set of program features and components necessary to produce the greatest

participant outcomes.

One widely-admired approach has been seen in Montgomery Co. Maryland. The FSS

program at the Housing Opportunities Commission (HOC) incorporates an innovative

case management and community mentoring program that focuses on career

advancement. In addition, the program offers extensive credit counseling and debt

repair services, as well as escrow savings directed toward homeownership. The HOC

FSS program also reports significant escrow accumulation.9

Another innovative program can be found in both Lynn and Cambridge Massachusetts.

The Compass FSS program is distinguished by the provision of financial education,

financial coaching, and asset building strategies to deliver better long-term financial

outcomes and help families in subsidized housing achieve economic security. Compass

Working Capital, a small non-profit organization, has designed a potentially higher

impact model for the FSS program focusing on credit repair, savings, and asset-building.

The Compass FSS model has demonstrated encouraging outcomes in income, savings,

and credit, as well as improvements in financial confidence and economic well-being. 10

When considering the structure of a potential program, it is important to include other key

elements aiding the success of FSS programs. For example, the generally low take-up and

enrollment in FSS may suggest the need for a defined effort focusing on increasing outreach and

recruitment in standard FSS programs to ensure that FSS opportunity is made available to more

eligible families in subsidized housing. An expanded FSS effort may need to include targeted

and innovative outreach and recruitment strategies that encourage enrollment.

Several reports on FSS, have also suggested that participants as well as program staff struggle to

understand and communicate key aspects of the program. An expanded FSS effort must include

a communication and information campaign where program objectives, goals, and guidelines

are clearly communicated and articulated on an ongoing basis, especially information about the

escrow account. FSS participants should be routinely informed of the amount that is being set

9 Brennan, Maya and Lubell. Jeffrey. (2012). More than a Roof: Case Studies of Public Housing Agency Initiatives to Increase

Residents’ Economic Security. Center for Housing Policy. 10 Kimbrel, Delia. (2013). “Compass Financial Stability and Savings Program Pilot Evaluation: Second Year Report. “Prepared

for Compass Working Capital. Waltham, MA: Institute for Assets and Social Policy at Brandeis University.

17

aside in the account and should engage in planning for its use to reach their financial goals.

Another component aiding successful FSS program delivery is a consistent message that

housing should be regarded as a platform for economic mobility and the importance of

structuring resources to effectively achieve the goal of self-sufficiency. This point is consistent

with national discussions about how to move people through the housing system making more

housing assistance available to other needy families.

The Bangor Housing Authority has already taken some important steps toward the

development of an expanded FSS initiative. Recognizing that partnerships are central to

successful FSS program development and delivery, BHA has engaged the broader Bangor

community in building a strong network of support around the FSS program that aims to

strengthen the scope and impact of their service. BHA has engaged the city of Bangor and other

public agencies, non-profit organizations and service programs from the United Way,

AmeriCorps, Penquis Community Action Program, workforce development sectors, financial

empowerment centers, as well as community colleges. While Bangor Housing Authority has

the capacity to create the structure for an expanded FSS effort for the city of Bangor, their

partners can provide program and service support such as financial education, credit and debt

counseling, tax preparation assistance, and case management. The development of community

partnerships will be crucial for the expansion and will greatly enhance the effectiveness of the

FSS program in the city of Bangor and provide economic mobility opportunities to a larger

segment of the Bangor community.

18

Appendix A: Family Well-Being Survey Below are questions about you and your household. Please answer each question by completely filling in the circle that best describes your answer. 1. Please answer the following questions about yourself.

2. Which of the following best describes 3. How many children are living in your household? your current marital status?

4. What is your age? 5. What is the highest level of education you have

attained?

6. Please answer the following questions regarding your employment status.

b. If yes, how many hours per week do you typically work in paid employment?

Financial Situation

a. What is your gender? O Female O Male

b. Are you elderly or disabled? O Yes O No

c. Are you the head of household? O Yes O No

Single/never married O

Married O

Divorced O

Separated O

Widowed O

None

One

Two

Three

4 or more

O

O

O

O

O

18 - 24 years

25 - 34 years

35 - 44 years

45 - 54 years

55 - 64 years

65 years or older

O

O

O

O

O

O

Less than high school O

High School diploma/GED O

Vocational certificate program O

Some College O

Associates/2yr college degree O

Bachelor’s degree or higher O

a. Are you currently employed? O Yes O No

Less than 20 hours O

20-35 hours O

More than 35 hours O

c. If you are not currently employed, are you typically employed at least part of the year?

O Yes O No

19

Below are questions about your finances and your family’s financial well-being. Please answer each question by completely filling in the circle that best describes your answer. 1. What is your annual household income? 2. Do you receive assistance from any of the following sources? Check all that apply.

3. How many years have you received 4. Do you

currently have any of the following? public housing assistance? (Please answer each item.)

Family Financial Well-being

1. Please indicate how much you agree or disagree with each statement.

2. Do any of the following make it hard for you to achieve your financial goals? (Please answer each.)

$0 O

$1-9,999 O

$10,000-$19,999 O

$20,001-$29,999 O

$30,000 -49,999 O

$50,000 and above O

TANF O

SNAP (food stamps) O

WIC O

Medicaid/Medicare O

SSI O

Other ________________________ O

Less than 2 years

2-5 years

5-10 years

10-15 years

15-20 years

More than 20 years

O

O

O

O

O

O

Checking account O Yes O No

Saving account O Yes O No

Vehicle O Yes O No

Strongly Disagree

Disagree

Neither Agree Nor Disagree

Agree

Strongly Agree

It is hard for me and my family to live on our present income.

O

O

O

O

O

I establish financial goals. O O O O O

I save regularly to achieve my financial goals. O O O O O

I feel frustrated because I cannot afford the education or training I need to get ahead.

O

O

O

O

O

I worry about losing my housing assistance if I make more money at work.

O

O

O

O

O

In the future I will be able to support my family financially without housing assistance.

O

O

O

O

O

Low paying job Yes No

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3. a. Are you interested in participating in a program (the FSS program) for public housing residents if

it is offered by BHA to assist with employment, education, and saving and other financial goals?

Yes No Not now, but maybe at a later time.

b. If Yes, what are the main reasons you would want to participate in this program? (Please fill in the circles for all that apply.)

Work on my financial goals with support from a case manager.

Learn about strategies to save.

Learn how to improve my credit rating and reduce debt.

Find other resources that can help my family get ahead.

Receive help getting employment.

Receive assistance with accessing education or job training.

Connect with other families who are in a similar financial position.

Work toward moving out of public housing.

Other

c. If you are not interested in participating in a program that offers any of the above, please indicate

why.

Lack of steady employment Yes No

Too few hours at work Yes No

Poor credit score Yes No

Credit card debt Yes No

Other debt (student loans, personal loans, utilities, back rent) Yes No

Lack of skills/education/training Yes No

Limited English proficiency Yes No

Health or physical disability Yes No

Learning disability Yes No

Safety concerns and/or domestic violence Yes No

Bad landlord reference or housing history Yes No

Lack of reliable or affordable transportation Yes No

Lack of reliable or affordable childcare Yes No

Criminal Record Yes No

Other: _______________________________________________ Yes No

21

APPENDIX B: Results of Survey of BHA Public Housing Residents

Table 1: Demographics for All Survey Respondents (N=121)

N = 121 Frequency Percent

Gender

Male Female

17 104

14.0 86.0

Marital Status

Single, never married Married Divorced Separated Widowed

53 43.8

34 28.1

27 22.3

1 0.8

6 5.0

Age

18-24 17 14.0

25-34 47 38.8

35-44 26 21.5

45-54 17 14.0

55-64 7 5.8

65 or older 6 5.0

Unknown 1 0.8

Children in Home

0 1 2 3 4 or more Unknown

9 7.4

54 44.6

37 30.6

14 11.6

6 5.0

1 0.8

Education

Less than high school High School diploma/GED Vocational Some College Associates/2yr college Bachelor’s degree or higher

6 5.0

39 32.2

8 6.6

41 33.9

17 14.0

10 8.3

22

Table 2: Use of HCV and Employment Status of Non-Elderly/Non-Disabled

Table 3: Annual Household Income of Non-Elderly/Non-Disabled (N=87)

Table 4: Select Sources of Cash Public Benefits (N=87)

Years Using Housing Choice Voucher (HCV) N=87 Frequency Percent

Less than 2 2-5 5-10 10-20 20 years+

20 23.0

28 32.2

26 30.0

10 11.5

3 3.4

Employment N=87

Employed

Unemployed

52 59.8

35 40.2

Hours worked in a week N=52

Less than 20 hours 20-25 hours More than 35 hours

13 25.0

20 38.5

19 36.5

Annual Household Income Frequency Percent

0 1 1.1

$1-$9,999 21 24.1

$10,000-$19,999 31 35.6

$20,000-$29,999 22 25.3

$30,000-$39,999 9 10.3

$40,000 and above 0 0

Unknown 3 3.4

Select Sources of Cash Benefits Frequency Percent

SNAP (food stamps) 68 78.2

Medicare/Medicaid 50 57.5

WIC 34 39.1

TANF 14 16.1

SSI/SSDI 11 12.6

23

Table 5: Experience with Economic Strain (N=87)

Table 6: Select Sources of Financial Products (N=87)

Please indicate how much you agree or disagree with each statement 1=”Strongly Disagree” and 5 “Strongly Agree”

Frequency

1 2 3 4 5 No Reply

It’s hard for me and my family to live on our present income

2 3 19 38 25 0

I establish financial goals 0 6 18 43 19 1

I save regularly to achieve my goals. 7 19 26 29 5 1

I feel frustrated because I cannot afford the education or training I need to get ahead

6 22 23 21 15 0

I worry about losing my housing assistance if I make more money

6 18 21 26 16 0

In the future I will be able to support my family financially without housing assistance

3 8 21 21 34 0

Do you currently have any of the following?

Frequency Percent

Checking Account 68 78.2

Savings Account 59 67.8

Own Vehicle 73 83.9