National Housing Law Project Housing Law Bulletin

Early and aggressive participation in the 50-plus state planning processes that will shape welfare reform is the predominant message in recent advice offered by HUD to the 3,400 public housing authorities (PHAs) nationwide. In an October 22, 1996, letter,¹ HUD offers guidance on welfare reform following enactment of the Personal Responsibility and Work Opportunity Reconciliation Act.² The letter sets out the principal known ramifications of welfare reform and includes a primer on immediate steps PHAs can take to smooth the transition to the revised welfare system for residents and attempt to somewhat mitigate its adverse impacts on PHA operations. The letter contains several helpful attachments: (1) a HUD-prepared impact analysis; (2) a Department of Health and Human Services description of the principal provisions of the new welfare law; (3) a description of the law’s impact on legal immigrants; (4) a state-by-state breakdown comparing the new Temporary Assistance of Needy Families (TANF) block grant with AFDC; (5) a description of the President’s proposed jobs program;³ and (6) a summary of HUD’s existing employment and training programs.⁴

In advancing the idea of early response by PHAs to
welfare reform, the Secretary identifies three likely pri-
mary impacts:

PHAs are urged (1) to learn about the new law and its specific effect on the individual PHA and its residents, including the content and focus of the PHA’s state plan; (2) actively and aggressively inform state policymakers of the impact of their actions on residents, including the tie between benefits and rents and service and training opportunities needed by residents (PHAs are urged to participate in the local planning process for the Welfare-to-Work jobs program); (3) change PHA policy, including admission preferences, to reward work and examine how, in concert with nonprofits and resident groups, to use PHA facilities for delivery of needed self-sufficiency services and access HUD-sponsored employment programs; (4) build on partnerships with the host of public and private organizations, businesses and schools whose resources will be needed to assist residents moving from dependence to self-sufficiency; (5) involve residents and resident organizations in planning for changes, particularly the new benefit time limits, and taking actions that will address their needs for supportive services, including training and job placement; (6) become more aggressive about creating employment opportunities for residents, including through CDBG and Section 3 obligations; (7) provide information to a HUD-sponsored clearinghouse that will document experiences and which approaches are working and why.

In addition to reminding housing authorities of the potential for resident loss of income, HUD highlights changes made by the Personal Responsibility Act designed to assist persons making the transition from welfare to work. These include increased subsidies for childcare, stepped-up child support enforcement, and the ability of states to influence delivery of improved employment training services.

Finally, HUD reaffirms its commitment to work with PHAs in information-sharing and in retooling HUD programs to function in the new environment.

1. Letter to PHA Executive Directors from HUD Secretary Henry G. Cisneros (Oct. 22, 1996).
2. Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193, 110 Stat. 2105 (Aug. 22, 1996) (hereafter Personal Responsibility Act).
3. he President is proposing a Welfare-to-Work Jobs Challenge that will provide $3.4 billion to stimulate employment opportunities in the private and nonprofit sectors for one million "hardest-to-employ welfare recipients." The proposal includes a welfare-to-work tax credit for employers on 50 percent of the first $10,000 in wages for long-term welfare recipients.
4. The current programs are Family Self Sufficiency, the Economic Development and Supportive Services Grant Program, Campus of Learners, Neighborhood Networks, Youthbuild, the Tenant Opportunity Program, Section 3, Step-Up, Empowerment Zones/Enterprise Communities, Economic Development Initiative, Community Develop-ment Block Grant, the Moving-to-Work Demonstration, Jobs Plus and Bridges to Work. A thumbnail description of these programs is included in an attachment to the October 22, 1996, HUD letter, entitled "HUD’s Employment and Training Programs.