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County Taps into Reserve Fund Due to Sequester Cuts

MoneyThe county will tap into the $3 million Economic Stability Fund it established to lessen the sequestration’s impact on the community. The County Board voted on Saturday to send $39,000 from the fund to the Department of Human Services for its Homelessness Prevention and Rapid Re-Housing Program (HPRP) program.

The Board voted to tap into the fund for the first time after learning of cuts to federal Housing and Urban Development (HUD) funding, which would trickle down to the local level. The Virginia Department of Social Services informed the county its contribution would be reduced by $39,000 in FY 2014 due to cuts in the state HPRP funding, which originates at HUD.

“This is the first time the County has had to tap into its sequestration fund, but unfortunately, we are quite certain it will not be the last,” said Arlington County Board Chairman J. Walter Tejada. “Across the nation, communities are feeling the impact of sequestration. These indiscriminate cuts are affecting the lives of real people, in large and small ways, and that impact is only going to grow as time goes on. In this instance, we are able to use the special funds to continue important safety net services for some of our most vulnerable individuals and families.”

HPRP has been in existence since 2009 and receives funding through a combination of $249,000 of state money to support case management, and $200,000 of local money to support housing-related financial assistance. Four non-profits provide case management services: Arlington Street People’s Assistance Network, Doorways for Women and Families, the Arlington Alexandria Coalition for the Homeless and Volunteers of America-Chesapeake.

Individuals and families who are homeless or at risk of becoming homeless can qualify for short term financial assistance from HPRP. Participating families are limited to $1,200 for homelessness prevention and $3,000 for rapid re-housing. Participants also receive case management services such as guidance for developing household budgets and maintaining their housing.

So far, county staff has not identified any other sequester cuts that would require a dip into the reserve fund. Although the state has experienced some cuts it hasn’t yet passed those on to localities.

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