The Director of the Mayor’s Office of Complete Communities (MOCC) and the Director of the Planning and Development Department request City Council approval of an ordinance authorizing a contract among the Cities from Financial Empowerment Fund (“CFE Fund”), Greater Houston Community Foundation (“GHCF”), and the City of Houston to establish the Financial Empowerment Centers (“FEC”) program in Houston. Implementation includes General Funds to fund one staff person in the Mayor’s Office of Complete Communities for two years. Additionally, Council will be asked to approve a professional services agreement for the administration of the FEC program.
The CFE Fund’s Financial Empowerment Centers program delivers professional, one-on-one financial counseling as a free city service and offers municipalities a tangible strategy to build community financial stability by helping help those most in need of critical one-on-one assistance. People in financial trouble need individualized help, not just financial literacy education, to address their most complex financial challenges. Through the FEC program, trained financial counselors work with clients on asset building, banking access, consumer protection, financial responsibility, debt management, home ownership, affordable housing qualification, and financial literacy. Counselors start with a financial triage assessment of the nature of and urgencies within clients’ financial situation. Then, counselors set goals and establish a specific plan of action with each client that focuses on one or more of four areas of improvement: banking, increasing savings, reducing debt, and building credit. Clients may also be referred to other supportive services that can enhance the quality of life of that individual. As a condition of the grant, a FEC Program Coordinator will be hired to supervise the implementation and administration of the City of Houston’s FEC program. Financial Empowerment Centers will be located in public facilities in communities in which 51% or more of the residents are low- and moderate-income persons.
The CFE Fund requires a matching contribution by the City. The CFE Fund pledges and agrees to provide the City, as grantee, a 1:1 match Grant in the form of cash in the amount of $150,000 for the first fifteen (15) months from the Countersignature Date; and a 1:2 match, of up to $100,000 in Year 2.
Two sources of match funding for years 1 and 2 to meet the matching contribution requirement are General Fund through the Planning and Development Department and private sector funding. The private-sector donation will be sent to and will be administered by the Greater Houston Community Foundation.
MOCC also requests City Council to authorize the MOCC Director or her designee to act as the City’s representative in the application process with authority to apply for, accept, and expend the grant funds, as awarded, and to extend the budget period, and to authorize the Mayor to execute all related contracts, agreements, and documents with the approval of the City Attorney in connection with the grant.
Fiscal Note:
Funding for this item is not included in the FY2020 Adopted Budget. Therefore, a Fiscal Note is required as stated in the Financial Policies.
________________________________ _________________________________
Shannon Buggs, Director Margaret Wallace Brown, Director
Mayor’s Office of Complete Communities Planning and Development Department
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Estimated Fiscal Operating Impact
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Recurring or One-Time
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One-Time
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Fund Name
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FY20
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FY21
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FY22
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FY23
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FY24
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Total
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General Fund (1000)
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$150,000.00
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$0
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$0
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$0
|
$0
|
$150,000.00
|
|
$0
|
$0
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$0
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$0
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$0
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$0
|
|
$0
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$0
|
$0
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$0
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$0
|
$0
|
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Total
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$150,000.00
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$0
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$0
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$0
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$0
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$150,000.00
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