“To establish a pilot program to improve the family self-sufficiency program, and for other purposes.”
No CRS summary available for this bill.
This section establishes a Family Self-Sufficiency escrow expansion pilot program under which the Secretary of Housing and Urban Development selects not more than 25 eligible entities (e.g., public housing agencies) to establish interest-bearing escrow accounts for rent increases attributable to earned income for up to 5,000 covered families receiving Section 8 Housing Choice Voucher or public housing assistance. (As background, the Family Self-Sufficiency program coordinates housing assistance under Sections 8 and 9 with services to promote economic independence, including escrowing such rent increases for families who complete a contract of participation; this pilot applies similar escrow without requiring such a contract or individual training plan.) Under the pilot, (1) escrow deposits may be funded using Section 8 or public housing funds offset by the family's increased rent payments, but only for families with adjusted income not exceeding 80% of area median income; (2) families may withdraw escrowed funds (plus interest) after ceasing welfare assistance and either five years after account establishment (or up to seven years if continuing participation), upon ending housing assistance if earlier, for approved self-sufficiency goals before five years, or under other Secretary-approved good cause exemptions; (3) families may recertify income multiple times per year (at least annually); and (4) earned income increases do not count toward eligibility or benefit amounts for other HUD programs. Eligible entities must apply to the Secretary, ensure geographic and entity diversity (urban/rural, varying sizes/types), notify families of enrollment (with opt-out rights at least two weeks before escrow establishment and anytime thereafter), and bar dual participation with the Family Self-Sufficiency program; the Secretary must select participants within 18 months of enactment.