HUD Offers Additional $113M to Build Renter Resiliency
HUD recently released an agenda for economic justice that describes actions the department will take to help low-income renters build assets, along with a Notice of Funding Opportunity for $113 million for the Family Self-Sufficiency (FSS) program to help HUD-assisted families increase earned income and improve financial stability.
HUD’s agenda, Bridging the Wealth Gap: An Agenda for Economic Justice and Asset Building for Renters, focuses on asset building through increased savings, access to mainstream banking, and credit score improvement. Bridging the Wealth Gap focuses on helping low-income families safely access financial institutions and tools, which federal programs haven’t typically focused on.
The FSS Program
FSS is the nation’s largest asset-building program for low-income families. FSS currently serves around 65,000 participants at over 700 public housing authorities (PHAs), working alongside community partners to coordinate services and establish escrow accounts for participants. FSS is a voluntary program that uses a combination of coordination of services and supports from community partners and an escrow savings account to help participants grow their earned income and savings and increase their financial well-being overall. Upon graduation from the program, the average family participating in FSS in 2021 had about $9,500 in savings. The $113 million funding represents a historic expansion of the program and is central to HUD’s agenda for economic justice.
New FSS Rule
In May 2022, HUD published a new FSS rule that makes the program available to even more families. Among its changes, the rule permits any adult household member, not only the official head of household, to enroll in the program, and eliminates regulations that were potential barriers to program graduation. The rule also eliminates a cap on savings that had been in place for higher-income families.
Expansion to Section 8
HUD anticipates being able to fund new FSS programs, in addition to renewals, with the $113 million. And for the first time, owners of Multifamily properties participating in the Section 8 assisted housing program are eligible to apply for funding under this grant opportunity.