HUD PROVIDES $15 MILLION IN RENTAL ASSISTANCE TO HELP NEARLY 2,000 FAMILIES STAY TOGETHER

Grants will keep children out of foster care, young adults from homelessness

WASHINGTON, DC – June 2, 2011 – (RealEstateRama) — In 2009, an estimated 423,773 children lived in foster care in the U.S. as case workers helped to reunite them with their families or primary caregivers. Today, the U.S. Department of Housing and Urban Development (HUD) announced nearly $15 million to help public housing authorities reunite foster children with their parents or prevent them from ever entering the foster care system.  Read a detailed account of the local funding announced today.

HUD’s Family Unification Program (FUP) will make 1,931Housing Choice Vouchers available for families whose inadequate housing is the primary factor in the separation or near separation from their children.  In addition, FUP vouchers will provide stable housing for young adults (ages 18-21) who left or are aging out of the foster care system, preventing them from becoming homeless.

“It’s heartbreaking to realize that thousands of children live in foster care or forced to live with other families simply because their parents can’t afford a home,” said HUD Secretary Shaun Donovan. “The funding provided today will keep thousands of families together under one roof.”

This funding allows local public housing authorities to work closely with local child welfare agencies to identify families with children in foster care or who are at risk of being placed in foster care and youth at risk of homelessness. These vouchers, like HUD’s Housing Choice Vouchers, allow families and youths to rent housing from private landlords and generally pay 30 percent of their monthly income towards rent and utilities.

According to the National Center for Housing and Child Welfare, it costs the federal government approximately $56,892 annually per family to place children into foster care.  Yet the cost to provide housing and supportive services to one family averages less than $14,000 annually. Through this investment in FUP to reunify families who are separated due to housing problems, HUD will reunite nearly 3,500 children with their parents, thus saving $74 million in annual foster care expenditures.  Cost savings are also considerable for young people aging out of foster care.  The average annual cost of a FUP voucher for young adults is $5,600 – a tenth of the estimated costs associated with undesirable outcomes such as homelessness, incarceration, and residential treatment.

“With this investment of FUP vouchers, Secretary Donovan continues to demonstrate his understanding of the critical role stable housing plays in keeping families together and safe,” said Ruth White, Executive Director of the National Center for Housing and Child Welfare. “We applaud HUD for leading the way to kind of interagency resource sharing that will reunify thousands of children with their families, prevent homelessness among youth aging out of foster care, and ultimately reduce costs.”

FY2010 Family Unification Program funding will be distributed to the following states:

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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Contact:
Donna White
(202) 708-0685