The $11m in federal grants will support the Family Hope Project, which provides emergency shelter and long-term housing assistance for families. (Photo from newcastlede.gov)
NEW CASTLE- In a meeting on Tuesday, New Castle City Council discussed a federal grant following its approval in December. The funding, provided by the U.S. Treasury, will support the Family Hope Project, which aims to provide emergency shelter and long-term housing assistance for families.
The project utilizes the Hope Center’s existing county programs and infrastructure, offering families an extended stay of up to 90 days, case management, financial counseling, and additional support services for two years. Direct rental assistance will also be available for two years after families leave the Hope Center to aid in their transition to stable housing.
New Castle County grant director Michael Bowser explained how the funding process would work for such grants.
The project employs a “Pay for Success” funding model, combining public and private investment with measurable outcomes. Initial funding is provided by philanthropic and private investors, with reimbursement from the U.S. Treasury contingent on achieving specific goals.
Since December, the project team has been involved in fundraising efforts, submitting multiple grant applications, and engaging with national investors.
“The team is submitting multiple brand applications to multiple philanthropic private partners, and we’re also engaging with a national funder that’s familiar with Pay for Success projects, for potential investing,” Bowser said.
Bowser also mentioned coordinating with the Department of Health and Social Services to ensure that rental assistance does not impact families’ eligibility for aid programs such as TANF, WIC, and SNAP.
“We want to ensure that the rental assistance, which is unique about this program that these families receive, doesn’t then impact their income eligibility for other aid programs that are crucial,” he said.
An independent evaluator, Tech Impact, will assess key performance indicators such as shelter avoidance and housing retention over seven years.
“As I mentioned, there’s two payment linked outcomes, “he said. “Basically, if we can meet these, that’s when we receive the money back from the US Treasury. That’s permanent housing retention, families remaining in stable housing and avoidance of shelter stays by families not returning to emergency shelters.”
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The county is also working to finalize a $1.4 million evaluator agreement with Tech Impact. This agreement is fully funded by the federal grant and does not require county funds, bringing the total funding for the project from the U.S. Treasury to $11 million. Legal agreements are being developed to establish a fiscal agent responsible for managing and distributing the funds.
“It also adds up to that $11 million that has also been put out there for this project,” he said. “When you combine the 9.6 and the 1.4 so that’s the total maximum value that we’d be receiving from the US Treasury.”
Joseph Walls, CEO of Veteran Services expressed his support for the project during the meetings public commentary portion.
“I was privileged to be invited to tour the health center on the 12th and I want you to know I’m very impressed with the centralization of services at the Hope Center,” Walls said. “Mental health and medical and financial counseling all under one roof.”
The first group of 60 families is expected to enter the program later this summer. County officials continue to engage with the U.S. Treasury to facilitate the project’s implementation.
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“This is very unique project, and identifying a fiscal agent to administer and distribute all these fundraising dollars. I’m excited to say that– we’re full steam on this project,” Bowser said.
Updates on the program’s progress will be provided as it moves forward.
Concerns over federal funding
Councilman John Cartier expressed concerns about the stability of federal funding streams and the U.S. Treasury’s ability to fulfill its financial commitments. Cartier acknowledged the importance of the funding but questioned the long-term reliability of the federal government’s support.
“Everyone knowledgeable has to consider the turmoil surrounding federal funding streams and ask, how confident are we that the Treasury will be able to fulfill its end of the funding for this program,” Cartier said.
Addressing these concerns, Bowser reassured the council that the grant’s structure is designed to minimize risk for the federal government. He explained that private entities and nonprofit foundations are involved in providing upfront funding, to raise approximately $8.8 million to execute the program. The grant is built on government cost savings, meaning its approval was based on demonstrating financial efficiency.
“Everything we’ve heard from the U.S. Treasury has been positive,” Bowser said. “The initial funding from private entities reduces the risk for the federal government, which strengthens the foundation of the program.”
Source: delawarelive.com…