Pomona offering $500 a month to eligible families as part of guaranteed income program

POMONA, Calif. (KABC) -- The city of Pomona is seeing growth with new apartments and new businesses. There are some people, however, who can't afford basic needs.

"In a city like Pomona, where you have a poverty rate of about 16, 16.5% - people are struggling. People are having a very difficult time being able to just have housing," Mayor Tim Sandoval said.

The city wants to give some residents stimulus checks, a guaranteed income program to help with living expenses. It's called the Household Universal Grant (HUG) program.

"We want to help stabilize our families with children 4 and under," Sandoval said. "We all know that sometimes young families who have children struggle."

How does the HUG program work?

According to the city's website, a total of 600 eligible applicants will be randomly selected to participate and will be assigned to one of two groups.

Two hundred and fifty (250) will be selected to receive $500 a month for 18 months as part of the paid group. The other 350 applicants will be selected to participate in the control group and will get $20 stipend payments for 18 months.

"We're looking at other things like well-being, financial security and other factors that lead to a healthy and quality life," said Efren Aguilar with the UCLA-Pomona Urban Childhood Program. "The hope is that if you can work with families early on in their child's development, it'll have lifelong impacts over time."

UCLA will then study the results to see how the two groups change over time.

"Those receiving the larger sum, we're hoping to see whether or not they have better gains," Aguilar said.

A number of cities across the country have tried similar programs, including Stockton and Compton. Critics, however, say it disincentives work.

"I hear that, but all the preliminary research shows otherwise," the mayor said. "That it actually gives people hope, it gives people a sense of security. It helps to stabilize people."

Pomona residents can start applying Monday, June 17.

There will be a lottery to select people to receive the money. That will be on July 10. After that, the first payments are expected on Aug. 26.