HUD updates Family Self Sufficiency program

HUD has announced a rule [87 FR 30020 in today's Federal Register] to implement changes to the Family Self-Sufficiency (FSS) Program. The changes include permanently expanding the definition of an eligible family to include tenants of privately owned multifamily properties subsidized with Project-Based Rental Assistance (PBRA).

In addition to permanently expanding the Program to multifamily owners and allowing them to compete directly for services funding, the rule also expands eligibility for Program enrollment to include any adult member of the household—rather than only the Head of Household—to be more inclusive of households where the Head of Household is unable to work or increase work activity due to issues such as health conditions, disabilities, or family care taking responsibilities. The rule also expands the definition of “good cause” for a FSS client contract extension to include participants who are in active pursuit of a long-term goal that will help them get ahead, such as a college degree, as opposed to only reasons outside of the family’s control. Additionally, among other positive statutory and regulatory changes, the rule removes administratively burdensome requirements for enrollment and revises graduation requirements.

The goal of the FSS Program continues to be to enable participating low-income families to increase their earned income and meet their financial goals. Local FSS program coordinators create plans with participating families to achieve goals and connect them with services that will assist in making progress toward economic security. Families that meet program requirements and successfully complete the FSS program receive their accrued FSS escrow funds, plus interest. While no formal restrictions exist on the use of the escrowed funds, many families use the funds to help with the purchase of a home, debt reduction, post-secondary education, or to start a new business.

The rule becomes effective on June 16, 2022.