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Community Development
in community and economic development

Federal Reserve Bank of Atlanta
Volume 7, Number 2
Summer 1997

In This Issue
A Closer Look At Mixed Income Housing
The Nation's first public housing community is
transformed into a striking mixed income
apartment community
HOPE for Public Housing
Housing and Urban Development's HOPE VI
program is effecting dramatic changes in
public housing

A Time of Transition
by Courtney Dufries
The truth is, Americans are very generous people. We contribute
collectively billions of dollars to charities every year, and untold amounts
to friends, families and acquaintances who have apparent needs. We
provide food, clothing, shelter, and health care when needed, and we do
so without much hesitation. We not only help our fellow Americans, but
we send money and other assistance around the world. We truly are a
kind, caring people. However, none of us, regardless of ideology or
political affiliation, want to see our donations wasted or our generosity
directed to individuals who lack the motivation to help themselves.

A New Era
Recent changes in our federal laws and regulations are directed at
From Welfare to Work can be a complex route
reducing the number of persons receiving government assistance. While
requiring collaboration on the part of many
previous programs did provide food, shelter, and other necessities, the
increase in the number of people requesting assistance in various
government programs is of concern to everybody, and attempts are now
underway to ensure that all recipients of federal assistance have
About this issue
legitimate short-term needs, and that our program policies encourage
people to help themselves as much as possible.
Partners looks at two federal programs that are undergoing radical changes in their approach to serving the poor. The most
controversial is the elimination of the old Aid to Families with Dependent Children program, or AFDC. Politicians of both
parties declared that by substituting AFDC with a new program, known as Temporary Assistance to Needy Families
(TANF), the number of people requiring long-term federal government assistance would decline radically. And they placed
significant program restrictions to ensure that this would occur.
While the fairness of both AFDC and TANF will likely be debated by social workers, academicians, and politicians for many
years, the fact remains that changes are occurring rapidly, and the number of AFDC cases has begun to decline
significantly. This article is intended to provide an overview of these important changes.
Equally important are changes in public housing programs. Anybody who has traveled through some of our District's
distressed public housing communities can attest to the need for significant changes in our approach to providing shelter.
Current programs renew the focus on reducing the density of public housing by encouraging mixed-income communities
that combine health care, child care, and educational programs as needed. We can think of no better example of this

transformation than two of the country's first public housing communities, Techwood Homes and Clark/Howell Homes, that
have now been replaced with a brand new development called Centennial Place.
Inside Partners is an article on this transformation that could serve as a model for many communities throughout the
country. A separate article on HOPE VI presents information on an effective federal program established to finance the
design, demolition, and construction of these new developments.
Nonprofit organizations are well positioned to help meet social service needs and support components of public housing
programs, and must be aware of the significant changes caused by the shift from AFDC to the new TANF. Although
established with the best of intentions, these programs may cause inadvertent hardships that must be quickly addressed.
And recipients of federal assistance may need the social support provided by nonprofit organizations to ensure a
successful transition to the workforce.
Financial institutions, like all businesses, also have a vested interest as we transition to new community development
programs. Besides the obvious quality of life improvements that will likely become apparent if the changes are successful,
business opportunities are available to encourage greater participation in these government-sponsored programs. It takes
leadership and commitment, but the rewards are certainly available through tax credits, loans, and investments.
We hope you enjoy this newsletter, and look forward to keeping you abreast of the programs and opportunities to serve our
low- and moderate-income communities and to finance our nation's small businesses.

Community Development

Mixed Income
by Marie Easley
The view from Centennial Place is a breathtaking juxtaposition of rolling hills and skyscrapers. The first of five
phases completed — and the second well underway — Centennial Place enjoys a dignified presence along
Techwood Drive in Atlanta.
Centennial Place is a mixed-income apartment complex that replaces Techwood Homes, America's oldest
public housing development. The new development is the only one of its kind in the country, according to the
Property Manager, Ross Lloyd, with each complex combining a mix of public housing-eligible residents (40%),
residents who would be eligible for low income housing tax credit subsidized housing (20%), and renters that
pay market rates (40%).
The apartments, which are located adjacent to the campus of the Georgia Institute of Technology (Georgia
Tech), feature 1 to 4-bedroom garden apartments and 2 to 4-bedroom townhouses. All units are equipped with
new appliances, including a washer and dryer, track lighting, intrusion alarms and carpet. The complex has a
pool, fitness center, and Tot Lot. It is located on two MARTA bus lines, and within five blocks of the North
Avenue MARTA rapid rail station. Off-duty city police officers provide security for the complex from 8 p.m. until
6 a.m.
Beyond Housing
The complex has received a "Campus of Learners" designation.
Apartments are wired for computer communications and
residents have access to on-site job training and computerbased learning. A new math and science magnet elementary
school will be constructed and will be linked on-line with
Georgia Tech. Financing for the $9 million school will come from
the Atlanta Public School System.
The existing library, built in 1909, will be restored and enhanced
by an addition for a media center. A community center will be
housed in another rehabilitated structure, circa 1941.
The Cupola Building, where President Roosevelt stood to
dedicate Techwood Homes in 1936, will be converted to

corporate suites. According to Egbert Perry, President of the
Integral Group, the suites will be occupied as additional space
by some of the development's corporate neighbors.
A New Approach
Two hundred twelve families that once occupied Techwood Homes have been given the choice of residing at
Centennial Place, or using Section 8 vouchers to subsidize alternative housing in the private market. Potential
Centennial Place residents are carefully screened and have to be either employed or in job training through
AHA's Workforce Enterprise, or some other job training program. In addition, every six months, the complex
management will train a resident in an area of his or her choice — leasing or property management, for
Market rents range from $679/mo. for a 1 bedroom, 1 bath garden style apartment, to $1,259/mo. for a 3
bedroom, 2.5 bath townhouse. For the same townhouse with a garage, the monthly rent is $1,359. Tenants
with incomes less than 60 percent of the Atlanta MSA median income are eligible for below-market rate rents,
subsidized by low income housing tax credits. A tenant's subsidy is strictly confidential, and market and
subsidized units are rotated to make them indistinguishable, thereby removing the stigma of a subsidy. See
the chart on page 5 for income-restricted requirements and comparison to market.
Mixed Income Housing
Ideally, residents of mixed income housing can avail
themselves of many advantages. Better schools, professional
role models, lower crime, retail services, and more competitive
pricing from area businesses are some of the goals. Ross
Lloyd observes that, "Already, former Techwood Homes
residents are taking pride in their surroundings, and getting
involved in the neighborhood. Having a place they look forward
to coming home to generates enthusiasm, as opposed to the
reaction to dilapidated surroundings which encourages an
attitude of 'Why should I care?' Now, they have the opportunity
to talk to people who have experienced different lifestyles, and
observe new approaches." Renee Glover, Executive Director of
the Atlanta Housing Authority, goes on to say, "How you mold
and shape a young person is all about the kind of environment
you raise them in."
The idea is that the social and economic opportunities provided
low-to-moderate income residents will ultimately lead to
subsidized residents becoming market rate tenants, or
homeowners. Recertification of subsidized benefits is
undertaken annually, and once a resident who was initially
eligible for income-restricted housing reaches 140% of the
maximum allowable income, he or she must either move or pay
market rate. Likewise, unemployment and violation of conduct
codes will result in residents being evicted.
Management Structure
The project is a joint venture among the Atlanta Housing Authority, the Integral Group, and SunAmerica
Insurance Company that Ms. Glover hopes will reduce the amount of taxpayer money used to fund public
housing. Centennial Place was developed by the Integral Partnership of Atlanta, a joint venture between
McCormack Baron and Associates, Inc. and the Integral Group, L.L.C. It is managed by The Village
Management Company of Atlanta, a partnership between McCormack Baron Management Services, Inc. and
Integral Management Services, Inc.
Financial Structure
The primary subsidy comes from HUD's $1.4 billion HOPE VI program, which grants up to $50 million to
remake an entire development, including complementary services. AHA's share of the total development was

financed by a $42.6 million grant from HUD. The cost of the entire project including non-residential structures
and programs is projected to be approximately $110 million. Housing will absorb approximately $75 million of
that total, to be completed in five phases. AHA has granted a 55-year ground lease on the land.
The first phase of the project consisted of 181 units, including 73 public housing residences, 36 units for lowincome housing tenants, and 72 market rate apartments. Both public and private funding sources were
combined to structure the deal.
American Capital Resources, a private investment company, supplied the first mortgage - insured by FHA - in
the amount of $3,972,600.
AHA, using HOPE VI funds, financed a second mortgage in the amount of $3,520,000. AHA also used the
HOPE VI funds to provide a grant of $2,409,300.
SunAmerica Insurance Company provided equity of $3,971,900 through the purchase of low income housing
tax credits.
An additional $159,379 was garnered from revenues earned from parking during the Olympics, bringing the
total financing of Phase I housing to $14,033,229. According to Carol Naughton of AHA, financing of the four
other phases will be similarly structured.
Funding for exterior renovations of auxiliary buildings will be provided by a $3 million grant from the HUD
HOPE VI program. A partnership between the Integral Group and AHA, using proceeds from the sale of
historic tax credits, will finance the additional $3 million it will take to renovate the interior. Revenues from a
coffee shop on the premises, along with the income stream from the corporate leases, are expected to repay
the partnership and enable the enterprise to be self-sustaining.
A state-of-the-art YMCA, independently financed with $4 million in grants from private foundations, will be built
on the land. In addition, retailers, including a national grocery store chain, and other service providers are
expected to occupy two blocks along Techwood Drive at Alexander.
Will It Work?
The ultimate question will be whether the mixed income housing will hold the necessary appeal to fill all 900
new units. "You've got location, location, location here," says the Integral Group's Egbert L.J. Perry. Not only
does the location offer panoramic skyline views, but the development's close proximity to such prominent
corporations as Coca-Cola, NationsBank, Georgia Tech, and CNN is a compelling reason to live there. Perry
says waiting lists already exist among the three groups of tenants who will share the Village.
A great many hopes are pinned to the success of Centennial Place and other mixed-income developments of
its kind. No one expects an overnight cure, but with its diversity, prime location, educational facilities,
transportation, and neighborhood support, Atlanta's Centennial Place shows a lot of promise.

Centennial Place Phase I Rental Program*
Apartment Size (Market
and subsidized apartments
are identical)





Maximum Income (cannot
exceed 60% of Atlanta MSA
Median income)

1 Bedroom
Garden Style



1 person
2 people



Garden Style



2 people
3 people
4 people






3 people
4 people
5 people






3 people
4 people
5 people
6 people



*40% of rents are market rate.
20% of rents are below market due to a subsidy provided by Low Income Housing Tax Credits.
40% of rents are subsidized by AHA through a contractual agreement to pay the difference between rents
collected and the cost of operating the unit. Section 8 vouchers are not used.

Community Development

by Hank Helton

Since 1937, the Federal government has invested an estimated $90 billion in the 13,741 public housing
developments throughout the country. Suffice it to say, the results of this investment have been mixed.
However in 1992, with the creation of HOPE VI, or the Urban Revitalization Demonstration Program, public
housing authorities (PHAs) have the opportunity to revitalize public housing communities, build partnerships
with other public and private sector entities, and blend public housing units into more diverse and mixedincome communities.
HOPE VI is a federal program administered through the Department of Housing and Urban Development
(HUD) to revitalize severely distressed or obsolete public housing developments. This initiative provides local
PHAs with the funds and flexibility to raze and rebuild public housing units and empower residents through
education and skills training, job placement, and other supportive social services.
The fiscal year 1997 allocation for HOPE VI is $550 million and is divided into four main areas - $447.5 million
for reconstruction grants; $30 million in demolition grants; $70 million in Section 8 voucher program
assistance; and $2.5 million for technical assistance for PHAs in their redevelopment efforts. Demolition, a
requirement under the previous HOPE VI funding cycles, is not mandatory to qualify for the 1997 program.
Between 1993 and 1996, HUD used HOPE VI to fund 118 grants totaling over $2 billion to 52 PHAs
throughout the country. As of September 30, 1996, HOPE VI funds had been allocated for the demolition of
44,384 public housing units, of which, 6,384 have already been razed. Approximately 24,000 units are
expected to be renovated or reconstructed with the funds that have been awarded.
Eligible Applicants and Activities
Any PHA that owns or operates public housing developments is eligible to apply for funding. Under the 1997
program, eligible PHAs may submit one or two applications, for up to $35 million in combined funding
requests, a reduction from previous funding cycles that awarded PHAs up to $50 million. Indian Housing
Authorities were not included as eligible entities under the 1997 Appropriations Act, and thus are not eligible to
apply. In addition, PHAs that administer Section 8 programs, but do not own or operate public housing
developments, are not eligible for funding. Although this year's program application deadline was July 18, a
second round of HOPE VI funds will be released in 1997 that can be used for demolition.
HOPE VI grants can be used to fund on-site or off-site replacement housing; the rehabilitation of existing
units; new construction, demolition and other physical improvements; planning and technical assistance; and

supportive services for residents. A community service component for PHA residents, a requirement of
pre-1995 grantees, is no longer required.
The 1997 HOPE VI application selection criteria were based on the urgency of need for revitalization; the
project's ability to lessen the isolation of low-income residents; creation of self-sufficiency among public
housing residents; accountable property management and internal controls procedures; the impact of the
development on the surrounding neighborhood; promotion of fair housing opportunities; community input into
the planning process; the PHA's capacity to undertake the project; the efficient use of federal funds; feasibility
and sustainability; and the overall quality of the proposal.
For an application to be considered for funding, four specific and one general program threshold criteria must
be met. The four specific criteria are obsolescence, need for funding, the lessening of concentration, and Fair
Housing. The general criterion is that an applicant must "score" at least some points on the selection
benchmarks and must receive at least 15 of 25 possible points on the feasibility and sustainability criteria. If
an application fails to meet any of these criteria, it will not be considered for funding.
HUD has also increased the emphasis on program management and accountability by requiring that selected
grantees assemble capable development teams and carry out the proposed revitalization in a timely manner.
Grantees must begin physical revitalization of the development within 18 months of the date of execution of
the grant agreement or funds may be reclaimed by HUD. In addition, the physical development activities must
be completed within four years. A PHA considering applying for HOPE VI funds should consider whether it
has the capacity to meet these requirements.
Approximately 3 million people live in public housing communities throughout the country. The HOPE VI
program, in conjunction with other HUD initiatives, offers PHAs an opportunity to better serve this population
by breaking the cycle of isolation and concentration sometimes associated with public housing communities
and building partnerships that provide educational and job training opportunities for residents. In addition,
instead of replacing the developments as they were, PHAs are rebuilding these communities into mixedincome neighborhoods that include public housing units. Traditional public housing developments are being
replaced by new developments with townhomes, garden apartments, and neo-traditional designs that
incorporate a sense of community with sidewalks, porches, green spaces, and other amenities.
For more information contact Mr. Milan Ozdinec, Director, Office of Urban Revitalization, US HUD,

Public Housing Authority HOPE VI Awards
in the Sixth Federal Reserve District



Date of Award

Type of Grant


Techwood/Clark Howell

$42.6 million




Perry Homes

$400 thousand




Perry Homes

$20 million


Demolition and Revitalization


Carver Homes

$9.7 million


Demolition Only



$400 thousand





$21.5 million


Demolition and Revitalization


Vine Hill Homes

$400 thousand



New Orleans


$44.3 million



New Orleans

Fischer Development

$400 thousand



New Orleans

St. Thomas

$25 million


Demolition and Revitalization


Forest View/N.H. Jones

$1.6 million


Demolition Only


Marcus Stubbs Tower

$2.3 million


Demolition Only


Riverview Terrace

$873 thousand


Demolition Only

Community Development

A New Era
by Keenan S. Conigland

Six decades of "welfare as we know it" ended when the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 was signed into law. Effective July 1, this ground breaking event replaced Aid to
Families With Dependent Children (AFDC) with Temporary Assistance to Needy Families (TANF). As a result
of this fundamental policy shift, approximately one million families throughout the Sixth District (Alabama,
Florida, Georgia, Louisiana, Mississippi, and Tennessee) must transition from public assistance to the
workplace—rather quickly.
According to the American Public Welfare Association (APWA), a Washington based public policy
organization, the new federal law provides a total of $16.38 billion in the form of block grants for states in fiscal
years 1997 to 2002. Cumulatively, federal expenditures for TANF block grants are projected to shrink by $55
billion over the same time period—a decline approaching 50 percent. Funding from Washington will be
provided on "the basis of previous federal expenditures for AFDC benefits and administration, Emergency
Assistance and the Jobs Opportunities and Basic Skills Training Program," notes APWA.
The chart below highlights some of the differences between the previous and newly established public
assistance programs.














Number of
years on







Average: 3)
TANF Grant
Size (97)







Lifetime Limit 60 months/ 24
under TANF
month limit

48 months/ 24
month limit

48 months/ 24
month limit

60 months

60 months/ 24
month limit/td>

60 months/ 18
month limit


Curtis Austin
Committee on
Commerce and
(850) 487-5815

Peter Lee
Department of
(404) 656-4937

Judy Wright
Department of

Larry Temple
Department of

Assistance and
Food Stamps
(615) 313-5652

Joel Sanders
Department of

Sixth District states, due to the lower cost of living in the southeast, have consistently provided substantially
lower monthly payments per case than the U.S. average according to figures released by the Administration
for Children and Families under the U.S. Department of Health and Human Services.
Further, with the exceptions of Louisiana and Mississippi, public assistance recipients residing in the Sixth
District tend to remain on AFDC for shorter time periods than the national average due to the large number of
jobs generated by the southeastern economy which has lead the nation in economic growth for most of the
Nationwide, AFDC/TANF family caseloads have decreased from 4,963,000 families in January 1993 to
4,628,000 in January 1997, a decline of 335,000 families. The forces behind the dramatic decline can be
linked to the longest economic expansion in postwar history and the urgency with which the states, since the
early 1990s, have fashioned welfare into a transition-to-work initiative. While the percentage of the U.S.
population on public assistance in 1960 stood at 1.8 percent and grew to as much as 5.5 percent in 1993, the
percentage is now down to 4.1 percent and is expected to decline further.
"It's simple: more jobs mean more people have more chances to work," offers Tom Cunningham, regional
research officer, Federal Reserve Bank of Atlanta.
In an effort to decrease this percentage even more, U.S. businesses are being challenged to broaden the
American mainstream by hiring welfare recipients. In response, a consortium of companies, led by United
Airlines CEO, Gerald Greenwald, joined together to form the Welfare to Work Partnership. In addition to the
private sector, the federal government has pledged to hire 10,000 welfare recipients by 2002.

Many Local Issues Remain
Collectively and individually, state TANF programs are "works in progress," patch quilts utilizing various
approaches to realize the common objective of transitioning recipients to work as quickly as possible. Adults
residing with families receiving benefits in the Sixth District must meet minimum work participation guidelines
following two years of assistance. Families with able-bodied adults not meeting stated requirements must be
engaged in an approved activity such as vocational training, community service, or secondary school
States throughout the District are pouring more money into child care, transportation, job training and
recruitment. While this strategy is widely applauded, it has some shortcomings. "We're definitely headed in the
right direction but there are going to be problems. Transportation networks don't really reach into the rural
areas. This is a problem for rural residents because most of the new jobs are springing up in metropolitan
areas," explains Larry Temple of the Mississippi Department of Human Resources.
Public assistance is not going away. Federal law allows states to exempt up to 20 percent of their caseloads
from the five year limit. "It is quite possible that there are certain segments of the population that states will
have to carry such as the {severely} mentally ill and female heads of households, some of whom often have
difficulty securing employment," discloses John Sciamanna, APWA senior policy associate.
Single mothers and children are heavily represented on public assistance rolls because they are less likely to
secure long-term employment; in most instances, children are too young to work; and women, even if
employed at the minimum wage, often have difficulty earning enough money to support their families in the
face of rising childcare and transportation costs.
The national and local implications of welfare reform have yet to be fully determined as the socioeconomic
overhaul is still at an early stage. What is certain, however, is that history will inevitably scrutinize the merits of
welfare reform based on whether it actually lifts millions of Americans into the economic mainstream—thus
benefitting the entire nation.



The program entitled all needy
families/individuals to federal and state
assistance. In some cases, there were work
requirements; however, there were no time limits
on benefits. The program expense was a shared
burden assumed by states and the federal
governments. Federal regulations governed the
fundamental tenets of the program.

The program has a lifetime eligibility limit of five years. Assistance
cannot be provided to families where an adult has received a total of
60 consecutive or non-consecutive months of TANF benefits.

Food Stamps

Food Stamps

Entitlement for eligible persons with no time limit
on benefits. No work requirements imposed for
recipients. Legal immigrants meeting all other
eligibility requirements may receive benefits. No
age-based requirements specifically imposed for
eligible adults. Military personnel distinctions not
applicable under the former food stamp program.

Entitlement for eligible persons. Total benefits are reduced by 3% for
all recipients. Work requirements are imposed for childless adults.
TANF families will remain eligible for Food Stamps even when their
TANF benefits end.

States are allowed to exempt up to 20% of their TANF caseload
from the lifetime limits for hardship reasons.
Funded through block grants to the states. Block grants total $16.4
billion annually for the country, with no funding for job training and
job placement efforts.

Most legal immigrants, and those who arrived in the U.S. after
8-22-96, are not eligible for Food Stamps until they become citizens.
Persons 18-50 years old without children at home who are able to
work are entitled to food stamps for only 3 months during every 36month period. The 3-month timetable starts the day official notice is
received from the local or state department of social services.

Military personnel or veterans who are honorably discharged (and
their spouses or unmarried dependent children) are permanently
exempt from the 3 month limitation.


Families who were eligible for AFDC were
automatically eligible for SSI and stateadministered medical programs.

States can opt to terminate benefits for adult TANF recipients who
fail to meet their TANF work requirements. Children are excluded.

Supplemental Security Income (SSI)

Supplemental Security Income (SSI)

Children living in families eligible for AFDC were
automatically qualified for Medicaid or stateadministered medical programs.

The children's SSI program will be cut by $8.2 billion. A narrowed
definition of disabled for SSI eligibility will end eligibility or deny
eligibility to 315,000 low-income children with disabilities. The
Congressional Budget Office estimates that 15% of these children
will also lose eligibility for Medicaid. Immigrants are ineligible until
citizenship. States must terminate SSI and Food Stamps at first
scheduled recertification dates, which are staggered over the next

Immigrants otherwise eligible for SSI were
ineligible based on immigrant status.

Reprinted with permission from the Federal Reserve Bank of San Francisco, Community Affairs Department.





Recognizing that training represents a huge portion
of the welfare reform equation, Alabama state
officials unveiled their Industrial Partnership
Program, a statewide initiative that provides job
training services at the employment site. "What we
offer are classroom services germane to the job,"
asserts Joel Sanders, Director, Welfare Reform
Division, Alabama Department of Human
Resources. Not only does this program work
towards proficiency in various employee functions, it
also offers time management and basic education
courses, the objective of which is to build confidence
and self-esteem. This approach has generated
favorable results in other areas as well, namely job
retention. "While we have experienced some
turnover, some employers credit this program for
employee retention rates equal to the traditional
workforce," submits Sanders.

In Louisiana, the Family Independence Temporary
Assistance Program (FITAP) has the overall goal
of decreasing long-term dependency on public
assistance by promoting job preparation,
employment, and the family structure.

• Teen parents must remain in school and live
with a parent
• Recipients can keep the first three months of
work salary if reported in a timely and
accurate manner
• Medicaid benefits are available for 12 months
after benefits terminate as a result of

When prospective recipients apply for public
assistance, case workers assess their education
and skills level and match them with potential
employment opportunities. "Our caseworkers
throughout Louisiana's nine regions maintain
contact with the local community and, therefore,
have a pretty good feel for employment
opportunities," offers Sam Guillory, Assistant
Director, Louisiana Family Independent Work
Program. Once an individual becomes employed,
he or she is no longer eligible to receive state
supported day-care and transportation.
• Earnings of students ages 17 and under
are excluded from consideration
• Voluntary resignation results in 1 to 2
month suspensions
• Homeless individuals no longer receive
services automatically

Florida's program, introduced under the state's Work
and Gain Economic Self-Sufficiency Act (WAGES)
relies heavily on local industry to implement reform.
"We feel that the direct, up-front participation of the
corporate sector is vital to reform here in Florida,"
says Curtis Austin, Staff Director, Florida Commerce
and Economic Opportunities Committee.
Under WAGES, Florida has established a series of
one-stop employment and career centers as the
primary entry points for public assistance recipients.
"I'd have to say Florida is really ahead of the curve
with their mixed services and employment
approach," offers Sciamanna of APWA. WAGES
also features a number of incentives for those
successfully engaged in the program, including
vocational and on-the-job training, subsidized child
care, transportation allowances and more.
• Children of noncompliant parents may
receive benefits through a third party payee
• Vocational training is provided through
Enterprise Florida, Inc.
• Operates a new automated fraud detection
and prevention program

Under Georgia's subsidized employee program,
participating companies pay employee trainees
(former public assistance recipients) a salary and
receive the employee's TANF check from the state
for nine months to offset training and other costs
associated with preparing the trainee to become a
productive employee.
Another subsidized incentive offered by the state is
the Work Opportunity Tax Credit Program. "This
incentive allows employers to earn tax credits up to
$2,100 for each worker hired within one of several
targeted groups, such as food stamp recipients,
felons, youths and veterans," says Peter Lee of the
Georgia Department of Human Resources.
• Imposes a family cap and pregnant teen
residency requirements
• Provides childcare assistance for participants
in employment training, job search, and for
the working poor.

=Mississippi was the first state in the nation to
fully implement its TANF program, which offers
recipients one of the most attractive incentives of
its kind. "Any client getting a job within the first 30
days of enrollment gets to keep both their welfare
and payroll checks for six months," says Larry
Temple of the Mississippi Department of Human
In an effort to address responsible behavior, the
Governor recently endorsed a challenge to
churches and synagogues to serve as social
workers for the state's public assistance
recipients. Dubbed the "Faith and Families
Project," it strives to inspire permanent behavioral
change by matching families (typically headed by
a single female) with religious institutions. In this
capacity, the religious community hopes to help
able-bodied adults secure employment, learn
budgeting, and obtain day-care assistance.
• Requires noncustodial parents to
participate in JOBS to meet child support
• Broadens eligibility for transitional child
care and transitional medical assistance

Tennessee is one of several states that actively
promotes "peer group" microlending in
association with TANF, making funds available to
"teams" of entrepreneurs, who in turn, make loans
to group members. These loans generally range
from $500 to $5,000. The state has also designed
day care and transportation systems to facilitate
the welfare-to-work process, according to Glenda
Shearon, Director of Cash Activities and Food
Stamps for Tennessee. Like others, Tennessee
emphasizes work activity up-front and hopes that
its Personal Development Responsibility Plan will
go a long way towards realizing that goal.
"Tennessee is using adult basic education and
making sure we provide opportunities for good
work activities. This is essential to the plan's
success," said Ms. Shearon.
• Recipients must sign a plan which lays out
employment goals
• No additional benefits for new children
while on the program
• Enforced child support

Community Development

Information provided on upcoming events of other organizations should be viewed as strictly informational and
not as an endorsement of their activities.

August 10-14 Seattle, Washington 1997 National Community Development Lending School Sponsor:
University of Washington (415) 974-2978
August 13-15 Jefferson City, Missouri Linking Community Strengths Sponsor: Pathways from Poverty.
Contact: Missouri Valley Human Resources CAA (816) 886-7476

September 3-5 Kansas City, Missouri: Brownfields "97 Conference Sponsor: U.S. Environmental Protection
Agency Contact: (888) 795-4684
September 4-5 Boston, Massachusetts: Marketing Needs Progress Achieving Goals: Affordable Housing and
Community Development Lending. Sponsors: National Association of Affordable Housing Lenders. Contact:
(202) 861-5770
September 11-12 Arlington, VA: Fair Lending Conference. Sponsor: Consumer Bankers Association. Contact:
(703) 276-1750
September 20-24 Washington, DC: Neighborhood Reinvestment Training Institute. Sponsor: Neighborhood
Reinvestment Corporation (202) 376-2400
September 21-24 Miami, FL: CUED Annual Conference. Sponsor: The National Council for Urban Economic
Development. Contact: (202) 223-4735
September 25-26 Miami, FL Entrepreneurial Development. Sponsor: The National Council for Urban
Economic Development. Contact: (202) 223-4735

October 2-4 Memphis, TN: The National Congress for Community Economic Development Annual
Conference. Sponsor: The National Congress for Community Economic Development. Contact: Claudette
Small (800) 333-4460 ext. 5276
October 27 Baltimore, Maryland: Faces of a Community: Collaborative Approaches to Neighborhood
Economic Revitalization Sheraton Inner Harbor Hotel Sponsor: Federal Reserve Bank of Richmond (804)

Community Development

Our masthead painting is of the Big Red Oak Creek Bridge
in Meriwether County, Georgia. In addition, we have
featured covered bridges from the Sixth District in the
headers on each page. Not only are the bridges a big part of
our heritage, but we believe they are symbolic of the
transitions spawned by welfare reform and changes in the
emphasis in public housing. Like the time-honored bridges
that reflect the labor of many, so these new programs will
require courage and collaboration.

Ron Zimmerman
Courtney Dufries
Marie Easley
Free subscription and additional copies are available upon request to Community Affairs, Federal Reserve
Bank of Atlanta, 1000 Peachtree Street N.E., Atlanta, Georgia 30309-4470, or call 404/498-7380; FAX
404/498-7342. The views expressed are not necessarily those of the Federal Reserve Bank of Atlanta or the
Federal Reserve System. Material may be reprinted or abstracted provided that Partners is credited and
provided with a copy of the publication.