HUD program helps Terrebonne residents

More than 400 people in Terrebonne Parish are relying on Section 8 housing. Without it, they probably couldn’t survive or would be searching the streets for shelter.

Another 523 are waiting for Section 8 assistance.

A brutal economy has deadened the rental and housing markets. Rent is sky high and buying a house for most people isn’t realistic. For those who struggle with employment, things are even worse.

Although the situation in south Louisiana is less grim than in some places, life is not perfect.

“Most people that are very low income are having a very hard time finding a rental unit that is affordable,” explained Terrebonne Parish House and Human Services assistant director Kelli Cunningham.

For some, the U.S. Department of Housing and Urban Development, known as HUD, is a shining light at the end of the tunnel.

A handful of public housing authorities throughout the state received a portion of more than $300,000 in funding that will be geared toward putting low-income families on the path of self-sufficiency.

Terrebonne Parish Consolidated Government was among the forerunners and was granted $43,048.

The initiative, Housing Choice Voucher Family Self-Sufficiency Program, engages public housing authorities (PHAs) and a variety of people aiming to develop essential life skills – whether it’s finishing school or advancing in the employment arena.

While the goals seem ordinary, they serve as cornerstones in many people’s lives.

“All Terrebonne Parish Section 8 Housing Choice Voucher participants are eligible for the Family Self Sufficiency Program once they have been a Section 8 participant for 12 months and are working or continuing their education,” said Cunningham.

The program is proving to be a vital organ in the scheme of financial stability, as it allows residents to save money that would ordinarily be spent on increasing bills.

“By law, Section 8 Housing Choice Voucher participants are required to pay 30 percent of their adjusted income toward rent and utilities. While this rule keeps rents relatively low, any increase in income requires an increased payment of rent, creating a disincentive for financial advancement,” explained Cunningham.

“The program allows public housing authorities to create escrow accounts where these savings are stored. As the earnings of FSS participants rise, their rents go up; and while they still have to pay a higher rent, an amount equal to the increase in rent is deposited into participants’ escrow accounts each month,” she noted.

For those willing to stick it out, the venture can be quite rewarding after five years, which is the mandatory amount of time a participant has to wait to withdraw the money. And while the cash can be used on nearly anything, officials urge responsible spending – things like down payments on a home or paying off debts.

“The whole point of it is to help families get off any type of housing assistance they’re receiving, to give them a hand up,” added Cunningham.

About $50 million in grants was funneled to PHAs nationwide at the end of March.