Building an Effective Infrastructure

Module 6.3: Fundraising for the FSS Program

Fundraising for the FSS Program

In addition to covering the costs of escrow deposits, HUD makes the following funding available for the FSS Program:

  • Public housing agencies can apply for FSS program coordinator grant funding to cover coordinator salary and benefits.
  • Multifamily owners may access residual receipts to pay for FSS program coordinator costs.

Program coordinator grants and residual receipts can only be used to pay for coordinator salaries and benefits and not direct services or programs.

Some FSS programs may wish to seek additional funds to support the FSS program to pay for:

  • Salaries and benefit costs of FSS program coordinators that are not covered by HUD grants or residual receipts
  • Programs or services that are not available through partners or require a fee
  • Guaranteed slots for in-demand programs or services
  • Additional benefits to FSS program participants such as small cash grants needed for them to achieve their FSS goals

Sources of funding for these activities beyond the FSS coordinator grant and residual receipts accounts include:

  • Internal PHA/owner resources
  • Private grants from philanthropic foundations
  • Federal, state, and local grants

Explore Agency Resources

Some PHAs and owners may be able to dedicate staff time or other resources to the FSS program using funding streams other than the FSS coordinator grant, such as the public housing operating fund or Housing Choice Voucher (HCV) administrative fees.

Public housing operating funds and HCV administrative fees cannot be used to pay for services of any kind. These resources can only be used to supplement the salaries and benefits of FSS staff.

PHAs and owners can also show their support for the FSS program by electing to fund additional benefits for residents that are only available to FSS participants, such as scholarships or small grant funds for tuition, books, transportation and child care.

Create a Non-Profit Affiliate

Some public housing agencies have created an affiliate 501(c) (3) nonprofit organization to pursue grant opportunities.

Information on establishing a 501(c) (3) nonprofit organization can be found on the IRS’s website.

PHAs and owners considering creating a non-profit affiliate should consult their attorney for guidance.

Seek Out Private Funding Sources

PHAs and owners (either directly or through nonprofit affiliates) can seek funding from foundations, corporations, and other private funding sources.

When seeking local funding sources, you should consider:

  • Your community’s unique local resources and labor markets
    Are there large employers in the area that would need a specific set of skills?

    Do local grant-making foundations have a specific focus for their funds?

  • The unique goals of their FSS programs and/or its participants. For example, if the majority of an FSS program’s participants are women, FSS programs could focus their fundraising in part on women-focused organizations.

    Other examples of this approach could be to focus on organizations that fund asset-building programs and services.

There are numerous resources available for grant and foundation funding opportunities, some for free and some that charge a fee.

A few examples of online directories for private funding sources are:

This video discusses one FSS practitioner’s experience in obtaining philanthropic funding to support the FSS program.

FSS © 2017 | U.S. Department of Housing and Urban Development

Federal, State, and Local Government Funding

State and Local Government Funding
Some FSS programs receive grant funding from their local or state governments. These allocations are often small (usually less than $50,000) but can provide funding for much needed programs and services or even additional case management.

Many times PHAs and owners use these funds for small grants to participants to help them achieve their FSS goals or to fund specific programs or services that may be unavailable in the community.

Federal Funding
PHAs and owners can explore other federal funding opportunities through HUD and other federal agencies, other federal agencies, including the  the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the U.S. Department of Labor, and the U.S. Department of Education. In addition to FSS coordinator funding, PHAs and owners that operate public housing supportive services programs may apply for service coordinator funding through the HUD Resident Opportunities and Self-Sufficiency program.

 View or Download Tips on How to Obtain Funding for FSS Programs

How Can You Access These Funding Opportunities?

  • PHAs and owners should contact their local governments for information on available funding opportunities.
  • Most state governments will announce grant funding opportunities on their agency websites.
  • Consult for a database of the federal government’s notices of funding available for all federal programs.
  • Consult the Federal Assistance Monitor for bi-monthly updates on federal grant opportunities, as well as available foundation assistance.

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