42 USC 1437u - Family Self-Sufficiency program

U.S Code last checked for updates: Jul 25, 2026

§ 1437u.

Family Self-Sufficiency program

(a)

Purpose

(b)

Continuation of prior required programs

(1)

In general

(2)

Reduction

(3)

Exception

The Secretary shall not require a public housing agency to carry out a mandatory program for a period of time upon the request of the public housing agency and upon a determination by the Secretary that implementation is not feasible because of local circumstances, which may include—

(A)

lack of supportive services accessible to eligible families, which shall include insufficient availability of resources for programs under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.);

(B)

lack of funding for reasonable administrative costs;

(C)

lack of cooperation by other units of State or local government; or

(D)

any other circumstances that the Secretary may consider appropriate.

(c)

Eligibility

(1)

Eligible families

A family is eligible to participate in a local Family Self-Sufficiency program under this section if—

(A)

at least 1 household member seeks to become and remain employed in suitable employment or to increase earnings; and

(B)

the household member receives direct assistance under section 1437f of this title or resides in a unit assisted under section 1437f or 1437g of this title.

(2)

Eligible entities

The following entities are eligible to administer a local Family Self-Sufficiency program under this section:

(A)

A public housing agency administering housing assistance to or on behalf of an eligible family under section 1437f or 1437g of this title.

(B)

The owner or sponsor of a multifamily property receiving project-based rental assistance under section 1437f of this title, in accordance with the requirements under subsection (l).

(d)

Contract of participation

(1)

In general

(2)

Supportive services

An eligible entity shall coordinate appropriate supportive services under this paragraph for each participating family entering into a contract of participation under paragraph (1). The supportive services shall be coordinated for the period the family is receiving assistance pursuant to section 1437f or 1437g of this title and for the duration of the contract of participation, and may include, but are not limited to—

(A)

child care;

(B)

transportation necessary to receive services;

(C)

remedial education;

(D)

education for completion of high school or attainment of a high school equivalency certificate;

(E)

education in pursuit of a post-secondary degree or certification;

(F)

job training and preparation;

(G)

substance abuse treatment and counseling;

(H)

training in financial literacy, such as training in financial management, financial coaching, and asset building, and money management;

(I)

training in household management;

(J)

homeownership education and assistance; and

(K)

any other services and resources appropriate to assist eligible families to achieve economic independence and self-sufficiency.

(3)

Term and extension

(4)

Employment

(5)

Nonparticipation

(e)

Incentives for participation

(1)

Maximum rents

(2)

Escrow savings accounts

(3)

Forfeited escrow

(f)

Effect of increases in family income

(g)

Program coordinating committee

(1)

Functions

(2)

Membership

(h)

Action plan

(1)

Required submission

(2)

Development of plan

(3)

Contents of plan

The Secretary shall require that the action plan contain at a minimum—

(A)

a description of the size, characteristics, and needs of the population of the families expected to participate in the local self-sufficiency program;

(B)

a description of the number of eligible participating families who can reasonably be expected to receive supportive services under the program, based on available and anticipated Federal, State, local, and private resources;

(C)

a description of the services and activities under subsection (d)(2) to be coordinated on behalf of participating families receiving direct assistance under this section through sections 1437f and 1437g of this title, which shall be provided by both public and private resources;

(D)

a description of the incentives pursuant to subsection (e) offered by the eligible entity to families to encourage participation in the program;

(E)

a description of how the local program will coordinate services and activities according to the needs of the families participating in the program;

(F)

a description of both the public and private resources that are expected to be made available to provide the activities and services under the local program;

(G)

a timetable for implementation of the local program;

(H)

assurances satisfactory to the Secretary that development of the services and activities under the local program has been coordinated with programs under title I of the Workforce Innovation and Opportunity Act [29 U.S.C. 3111 et seq.] and any other relevant employment, child care, transportation, training, and education programs in the applicable area, and that implementation will continue to be coordinated, in order to avoid duplication of services and activities; and

(I)

assurances satisfactory to the Secretary that nonparticipating families will retain their rights to assistance under section 1437f or 1437g of this title notwithstanding the provisions of this section.

(i)

Family Self-Sufficiency awards

(1)

In general

(2)

Eligibility for awards

The award established under paragraph (1) shall provide funding for family self-sufficiency coordinators as follows:

(A)

Base award

(B)

Additional award

(C)

State and regional agencies

(D)

Determination of number of coordinators

(E)

Award allocation evaluation

(3)

Renewals and allocation

(A)

In general

Funds allocated by the Secretary under this subsection shall be allocated in the following order of priority:

(i)

First priority

(ii)

Second priority

(B)

Guidance

If the first priority, as described in subparagraph (A)(i), cannot be fully satisfied, the Secretary may prorate the funding for each eligible entity, as long as—

(i)

each eligible entity that has received funding for at least 1 part-time coordinator in the prior fiscal year is provided sufficient funding for at least 1 part-time coordinator as part of any such proration; and

(ii)

each eligible entity that has received funding for at least 1 full-time coordinator in the prior fiscal year is provided sufficient funding for at least 1 full-time coordinator as part of any such proration.

(4)

Recapture or offset

(5)

Performance reporting

(6)

Incentives for innovation and high performance

(j)

On-site facilities

(k)

Flexibility

(l)

Programs for tenants in privately owned properties with project-based assistance

(1)

Voluntary availability of FSS program

(2)

Cooperative agreement

(3)

Treatment of families assisted under this subsection

(4)

Escrow

(A)

Cooperative agreement

(B)

Calculation and tracking by owner

(5)

Exception

(6)

Suspension of enrollment

(m)

Reports

(1)

To Secretary

Each eligible entity that carries out a local self-sufficiency program approved by the Secretary under this section shall submit to the Secretary, not less than annually a report regarding the program. The contents of the report shall include—

(A)

a description of the activities carried out under the program;

(B)

a description of the effectiveness of the program in assisting families to achieve economic independence and self-sufficiency;

(C)

a description of the effectiveness of the program in coordinating resources of communities to assist families to achieve economic independence and self-sufficiency; and

(D)

any recommendations of the eligible entity or the appropriate program coordinating committee for legislative or administrative action that would improve the self-sufficiency program carried out by the Secretary and ensure the effectiveness of the program.

(2)

HUD annual report

(n)

GAO report

(o)

Definitions

In this section:

(1)

Eligible entity

(2)

Eligible family

(3)

Participating family

(p)

Escrow Expansion Pilot Program

(1)

Definitions

In this subsection:

(A)

Covered family

(B)

Eligible entity

(C)

Pilot Program

(D)

Welfare assistance

(2)

Establishment

(3)

Escrow accounts

(A)

In general

An eligible entity selected to participate in the Pilot Program—

(i)

shall establish an interest-bearing escrow account and place into the account an amount equal to any increase in the amount of rent paid by each covered family in accordance with the provisions of section 1437a, 1437f(o), or 1437f(y) of this title, as applicable, that is attributable to increases in earned income by the covered families during the participation of each covered family in the Pilot Program; and

(ii)

notwithstanding any other provision of law, may use funds it controls under section 1437f or 1437g of this title for purposes of making the escrow deposit for covered families assisted under, or residing in units assisted under, section 1437f or 1437g of this title, respectively, provided such funds are offset by the increase in the amount of rent paid by the covered family.

(B)

Income limitation

(C)

Withdrawals

A covered family may withdraw funds, including interest earned, from an escrow account established by an eligible entity under the Pilot Program—

(i)

after the covered family ceases to receive welfare assistance; and

(ii)

(I)

not earlier than the date that is 5 years after the date on which the eligible entity establishes the escrow account under this subsection;

(II)

not later than the date that is 7 years after the date on which the eligible entity establishes the escrow account under this subsection, if the covered family chooses to continue to participate in the Pilot Program after the date that is 5 years after the date on which the eligible entity establishes the escrow account;

(III)

on the date the covered family ceases to receive housing assistance under section 1437f or 1437g of this title, if such date is earlier than 5 years after the date on which the eligible entity establishes the escrow account;

(IV)

earlier than 5 years after the date on which the eligible entity establishes the escrow account, if the covered family is using the funds to advance a self-sufficiency goal as approved by the eligible entity;

(V)

for any reason listed under section 984.303(k) of title 24, Code of Federal Regulations; or

(VI)

under other circumstances in which the Secretary determines an exemption for good cause is warranted.

(D)

Interim recertification

(E)

Contract or plan

(4)

Effect of increases in family income

(5)

Application

(A)

In general

An eligible entity seeking to participate in the Pilot Program shall submit to the Secretary an application—

(i)

at such time, in such manner, and containing such information as the Secretary may require by notice; and

(ii)

that includes the number of proposed covered families to be served by the eligible entity under this subsection.

(B)

Geographic and entity variety

The Secretary shall ensure that eligible entities selected to participate in the Pilot Program—

(i)

are located across various States and in both urban and rural areas; and

(ii)

vary by size and type, including both public housing agencies and private owners of projects receiving project-based rental assistance under section 1437f of this title.

(6)

Notification and opt-out

An eligible entity participating in the Pilot Program shall—

(A)

notify covered families of their enrollment in the Pilot Program;

(B)

provide covered families with a detailed description of the Pilot Program, including how the Pilot Program will impact their rent and finances;

(C)

inform covered families that the families cannot simultaneously participate in the Pilot Program and the Family Self-Sufficiency program under this section; and

(D)

provide covered families with the ability to elect not to participate in the Pilot Program—

(i)

not less than 2 weeks before the date on which the escrow account is established under paragraph (3); and

(ii)

at any point during the duration of the Pilot Program.

(7)

Maximum rents

(8)

Pilot Program timeline

(A)

Awards

(B)

Establishment and term of accounts

An eligible entity selected to participate in the Pilot Program shall—

(i)

not later than 6 months after selection, establish escrow accounts under paragraph (3) for covered families; and

(ii)

maintain those escrow accounts for not less than 5 years, or until a determination is made for termination with FSS escrow disbursement under section 984.303(k) of title 24, Code of Federal Regulations, or until the date the family ceases to receive assistance under section 1437f or 1437g of this title, and, at the discretion of the covered family, not more than 7 years after the date on which the escrow account is established.

(9)

Nonparticipation and housing assistance

(A)

In general

(B)

No termination

(10)

Study

(11)

Waivers

(12)

Termination

(13)

Eligible uses of appropriations

Subject to the appropriation of funds, the Secretary may use funds—

(A)

for technical assistance related to implementation of the Pilot Program; and

(B)

to carry out an evaluation of the Pilot Program under paragraph (10).

(Sept. 1, 1937, ch. 896, title I, § 23, as added Pub. L. 101–625, title V, § 554(a), Nov. 28, 1990, 104 Stat. 4225; amended Pub. L. 102–550, title I, §§ 106, 185(b), Oct. 28, 1992, 106 Stat. 3684, 3747; Pub. L. 104–316, title I, § 122(l), Oct. 19, 1996, 110 Stat. 3837; Pub. L. 104–330, title V, § 501(b)(8), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 509(a), Oct. 21, 1998, 112 Stat. 2530; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(31), (f)(23)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–425, 2681–433; Pub. L. 113–128, title V, § 512(ii), July 22, 2014, 128 Stat. 1721; Pub. L. 115–174, title III, § 306(a), May 24, 2018, 132 Stat. 1339; Pub. L. 119–101, title IV, § 404, July 11, 2026, 140 Stat. 901.)

cite as: 42 USC 1437u

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