COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

DATE:

March 26, 2002

BOARD MEETING DATE:

April 16, 2002

TO:

Honorable Board of Supervisors

FROM:

Maureen D. Borland, Director, Human Services Agency

Glen H. Brooks, Jr., Director, Central Region

SUBJECT:

Resolution authorizing the execution of an Agreement with Family Service Agency for the administration of the Family Loan Program

Recommendation

Adopt a resolution authorizing the execution of an Agreement with Family Service Agency for the administration of the Family Loan Program. Funding for this agreement includes $171,290.66 rolled over from a previous Agreement with Family Service Agency for the Family Loan Program that expired, and $40,000 from TANF incentive funds. The total Agreement obligation is for $211,290.66.

Background

Family Service Agency began operating a loan program in January 1998. Three foundation partners provided $450,000 toward the loan guarantee fund and operating costs. Family Service Agency recruited three community partner service banks in San Mateo to manage and service the loans. The Family Loan Program introduced a creative partnership opportunity between the private and non-profit sectors offering families a low interest loan alternative to pay unexpected expenses.

While the Original Family Loan program met the needs of low income families, it was identified that those families who were unemployed, disabled, senior citizens, or those who did not meet the traditional loan employment, vocational training or school criteria would be unable to benefit from the loan services and would run the risk of not obtaining self-sufficiency or reach a living wage due to challenges and costs of living in San Mateo County. A new program was developed that would operate independently of the Original Family Loan Program to target those community members that did not qualify for the Original Family Loan Program.

On June 19, 2001 the Board approved resolution 64575 authoring the Human Services Agency to enter into an agreement with the Family Service Agency for the provisions of the Family Loan Program, targeting those community members that did not qualify for the Original Family Loan Program. Because this Family Loan Program targeting the unemployed, Disabled and Senior community was under utilized the agreement ended September 30, 2001. This new agreement will support the Original Family Loan Program that has a proven record in both loan applications and re-payment by clients.

As of August 2001, Family Service Agency has received over 3060 inquiries from interested families. From these inquiries Family Service Agency determined that more than 1368 of the inquiries were potentially eligible. These inquiries resulted in over 489 applications with 218 approvals. These are combined figures from both Programs.

A recent analysis by Family Service Agency showed:

Reduction of work time missed

91.7%

Reduction of time in transit to work

88.3%

Increase in attendance in job related education

20.8%

Increase in monthly wages

23%

Discussion

The goals of the Original Family Loan Program include:

·

Providing a variety of affordable products to low-income community members who demonstrate the ability to achieve economic self-sufficiency.

·

Give clients/customers the opportunity to learn financial skills and assume responsibilities that will lead to self-sufficiency.

·

Give clients/customers the opportunity to rebuild and establish their credit history.

·

Provide banks with education and training to help low income community members.

·

Provide local capacity to resolve transportation, housing and other barriers to self-sufficiency in the environment of welfare reform.

·

Maintain a self-replenishing loan reserve fund.

The Family Loan Program has been successful in assisting our low-income participants to achieve self-sufficiency. The County's funding of the Family Service Agency will ensure adequate funds to sustain the Original Family Loan Program operated through the Family Service Agency. The County's funds will pay operational costs and provide grants to clients to obtain reliable transportation.

This agreement has been reviewed and been approved to as to form by County Counsel.

Vision Alignment

The contract with the Family Service Agency for the Family Loan Program keeps the commitment creating opportunities for every household to participate in our prosperity and goal number 17: All households experience real gains in income. The contract contributes to this commitment and goal by providing loans to low income families to become or maintain self-sufficiency.

Fiscal Impact

The cost of the program will be funded by TANF Incentive funds and re-directed funds from the previous Family Loan Program Agreement. This has been included in the Adopted Budget for fiscal year 2001/2002. There is no Net County Cost.