42 U.S.C. § 1437u : US Code - Section 1437U: Family Self-Sufficiency program

Search 42 U.S.C. § 1437u : US Code - Section 1437U: Family Self-Sufficiency program

(a) Purpose
The purpose of the Family Self-Sufficiency program established
under this section is to promote the development of local
strategies to coordinate use of public housing and assistance under
the certificate and voucher programs under section 1437f of this
title with public and private resources, to enable eligible
families to achieve economic independence and self-sufficiency.
(b) Establishment of program
(1) Required programs
Except as provided in paragraph (2), the Secretary shall carry
out a program under which each public housing agency that
administers assistance under subsection (b) or (o) of section
1437f of this title or makes available new public housing
dwelling units -
(A) may, during fiscal years 1991 and 1992, carry out a local
Family Self-Sufficiency program under this section;
(B) effective on October 1, 1992, the Secretary shall require
each such agency to carry out a local Family Self-Sufficiency
program under this section, subject to the limitations in
paragraph (4); and
(C) effective on October 21, 1998, to the extent an agency is
not required to carry out a program pursuant to subparagraph
(B) of this paragraph and paragraph (4), may carry out a local
Family Self-Sufficiency program under this section.
Each local program shall, subject to availability of supportive
services, include an action plan under subsection (g) of this
section and shall provide comprehensive supportive services for
families electing to participate in the program. In carrying out
the self-sufficiency program under this section, the Secretary
shall consult with the heads of other appropriate Federal
agencies and provide for cooperative actions and funding
agreements with such agencies. Each public housing agency
administering an approved local program may employ a service
coordinator to administer the local program.
(2) Exception
The Secretary shall not require a public housing agency to
carry out a local program under subsection (a) of this section if
the public housing agency provides certification (as such term is
defined under title I of the Cranston-Gonzalez National
Affordable Housing Act [42 U.S.C. 12701 et seq.]) to the
Secretary, that the establishment and operation of the program 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.] or the Job
Opportunities and Basic Skills Training Program under part F
(!1) of title IV of the Social Security Act;
(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.
In allocating assistance available for reservation under this
chapter, the Secretary may not refuse to provide assistance or
decrease the amount of assistance that would otherwise be
provided to any public housing agency because the agency has
provided a certification under this paragraph or because,
pursuant to a certification, the agency has failed to carry out a
self-sufficiency program.
(3) Scope
Subject to paragraph (4), each public housing agency required
to carry out a local program under this section shall make the
following housing assistance available under the program in each
fiscal year:
(A) Certificate and voucher assistance under section 1437f(b)
and (o) of this title, in an amount equivalent to the increase
for such year in the number of families so assisted by the
agency (as compared to the preceding year).
(B) Public housing dwelling units, in the number equal to the
increase for such year in units made available by the agency
(as compared to the preceding year).
Each such public housing agency shall continue to operate a local
program for the number of families determined under this
paragraph subject only to the availability under appropriations
Acts of sufficient amounts for assistance.
(4) Termination of requirement to expand program
(A) In general
Notwithstanding any other provision of law, a public housing
agency that receives incremental assistance under subsection
(b) or (o) of section 1437f of this title or that makes
available new public housing dwelling units shall not be
required, after October 21, 1998, to provide assistance under a
local Family Self-Sufficiency program under this section to any
families not required to be assisted under subparagraph (B) of
this paragraph.
(B) Continuation of existing obligations
(i) In general
Each public housing agency that, before October 21, 1998,
was required under this section to carry out a local Family
Self-Sufficiency program shall continue to operate such local
program for the number of families determined under paragraph
(3), subject only to the availability under appropriations
Acts of sufficient amounts for housing assistance.
(ii) Reduction
The number of families for which an agency is required
under clause (i) to operate such local program shall be
decreased by one for each family that, after October 21,
1998, fulfills its obligations under the contract of
participation.
(5) Nonparticipation
Assistance under the certificate or voucher programs under
section 1437f of this title for a family that elects not to
participate in a local program shall not be delayed by reason of
such election.
(c) Contract of participation
(1) In general
Each public housing agency carrying out a local program under
this section shall enter into a contract with each leaseholder
receiving assistance under the certificate and voucher programs
of the public housing agency under section 1437f of this title or
residing in public housing administered by the agency, that
elects to participate in the self-sufficiency program under this
section. The contract shall set forth the provisions of the local
program, shall establish specific interim and final goals by
which compliance with and performance of the contract may be
measured, and shall specify the resources and supportive services
to be made available to the participating family pursuant to
paragraph (2) and the responsibilities of the participating
family. The contract shall provide that the public housing agency
may terminate or withhold assistance under section 1437f of this
title and services under paragraph (2) of this subsection if the
public housing agency determines, through an administrative
grievance procedure in accordance with the requirements of
section 1437d(k) of this title, that the family has failed to
comply with the requirements of the contract without good cause
(which may include a loss or reduction in access to supportive
services, or a change in circumstances that makes the family or
individual unsuitable for participation).
(2) Supportive services
A local program under this section shall provide appropriate
supportive services under this paragraph to each participating
family entering into a contract of participation under paragraph
(1). The supportive services shall be provided during the period
the family is receiving assistance under section 1437f of this
title or residing in public housing, and may include -
(A) child care;
(B) transportation necessary to receive services;
(C) remedial education;
(D) education for completion of high school;
(E) job training and preparation;
(F) substance abuse treatment and counseling;
(G) training in homemaking and parenting skills;
(H) training in money management;
(I) training in household management; and
(J) any other services and resources appropriate to assist
eligible families to achieve economic independence and self-
sufficiency.
(3) Term and extension
Each family participating in a local program shall be required
to fulfill its obligations under the contract of participation
not later than 5 years after entering into the contract. The
public housing agency shall extend the term of the contract for
any family that requests an extension, upon a finding of the
agency of good cause.
(4) Employment and counseling
The contract of participation shall require the head of the
participating family to seek suitable employment during the term
of the contract. The public housing agency may, during such
period, provide counseling for the family with respect to
affordable rental and homeownership opportunities in the private
housing market and money management counseling.
(d) Incentives for participation
(1) Maximum rents
During the term of the contract of participation, the amount of
rent paid by any participating family whose monthly adjusted
income does not exceed 50 percent of the area median income for
occupancy in the public housing unit or dwelling unit assisted
under section 1437f of this title may not be increased on the
basis of any increase in the earned income of the family, unless
the increase results in an income exceeding 50 percent of the
area median income. The Secretary shall provide for increased
rents for participating families whose incomes are between 50 and
80 percent of the area median income, so that any family whose
income increases to 80 percent or more of the area median income
pays 30 percent of the family's monthly adjusted income for rent.
Upon completion of the contract of participation, if the
participating family continues to qualify for and reside in a
dwelling unit in public housing or housing assisted under section
1437f of this title, the rent charged the participating family
shall be increased (if applicable) to 30 percent of the monthly
adjusted income of the family.
(2) Escrow savings accounts
For each participating family whose monthly adjusted income is
less than 50 percent of the area median income, the difference
between 30 percent of the adjusted income of the participating
family and the amount of rent paid by a participating family
shall be placed in an interest-bearing escrow account established
by the public housing agency on behalf of the participating
family. For families with incomes between 50 and 80 percent of
the area median income, the Secretary shall provide for escrow of
the difference between 30 percent of the family income and the
amount paid by the family for rent as determined by the Secretary
under paragraph (1). The Secretary shall not escrow any amounts
for any family whose adjusted income exceeds 80 percent of the
area median income. Amounts in the escrow account may be
withdrawn by the participating family after the family ceases to
receive income assistance under Federal or State welfare
programs, upon successful performance of the obligations of the
family under the contract of participation entered into by the
family under subsection (c) of this section, as determined
according to the specific goals and terms included in the
contract, and under other circumstances in which the Secretary
determines an exception for good cause is warranted. A public
housing agency establishing such escrow accounts may make certain
amounts in the accounts available to the participating families
before full performance of the contract obligations based on
compliance with, and completion of, specific interim goals
included in the contract; except that any such amounts shall be
used by the participating families for purposes consistent with
the contracts of participation, as determined by the public
housing agency.
(3) Plan
Each public housing agency carrying out a local program under
this section shall establish a plan to offer incentives to
families to encourage families to participate in the program. The
plan shall require the establishment of escrow savings accounts
under paragraph (2) and may include any other incentives designed
by the public housing agency.
(e) Effect of increases in family income
Any increase in the earned income of a family during the
participation of the family in a local program established under
this section may not be considered as income or a resource for
purposes of eligibility of the family for other benefits, or amount
of benefits payable to the family, under any program administered
by the Secretary, unless the income of the family equals or exceeds
80 percent of the median income of the area (as determined by the
Secretary with adjustments for smaller and larger families).
(f) Program coordinating committee
(1) Functions
Each public housing agency carrying out a local program under
this section shall, in consultation with the chief executive
officer of the unit of general local government, develop an
action plan under subsection (g) of this section, carry out
activities under the local program, and secure commitments of
public and private resources through a program coordinating
committee established by the public housing agency under this
subsection.
(2) Membership
The program coordinating committee may consist of
representatives of the public housing agency, the unit of general
local government, the local agencies (if any) responsible for
carrying out programs under title I of the Workforce Investment
Act of 1998 [29 U.S.C. 2801 et seq.] or the Job Opportunities and
Basic Skills Training Program under part F (!2) of title IV of
the Social Security Act, and other organizations, such as other
State and local welfare and employment agencies, public and
private education or training institutions, nonprofit service
providers, and private businesses. The public housing agency may,
in consultation with the chief executive officer of the unit of
general local government, utilize an existing entity as the
program coordinating committee if it meets the requirements of
this subsection.
(g) Action plan
(1) Required submission
The Secretary shall require each public housing agency
participating in the self-sufficiency program under this section
to submit to the Secretary, for approval by the Secretary, an
action plan under this subsection in such form and in accordance
with such procedures as the Secretary shall require.
(2) Development of plan
In developing the plan, the public housing agency shall consult
with the chief executive officer of the applicable unit of
general local government, the program coordinating committee
established under subsection (f) of this section, representatives
of residents of the public housing, any local agencies
responsible for programs under title I of the Workforce
Investment Act of 1998 [29 U.S.C. 2801 et seq.] or the Job
Opportunities and Basic Skills Training Program under part F (!2)
of title IV of the Social Security Act, other appropriate
organizations (such as other State and local welfare and
employment or training institutions, child care providers,
nonprofit service providers, and private businesses), and any
other public and private service providers affected by the
operation of the local program.
(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 (c)(2) of this section to be provided to families
receiving assistance under this section through the section 8
[42 U.S.C. 1437f] and public housing programs, which shall be
provided by both public and private resources;
(D) a description of the incentives pursuant to subsection
(d) of this section offered by the public housing agency to
families to encourage participation in the program;
(E) a description of how the local program will deliver
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 the Job Opportunities and Basic Skills
Training Program under part F (!2) of title IV of the Social
Security Act and programs under title I of the Workforce
Investment Act of 1998 [29 U.S.C. 2801 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 public
housing or section 8 [42 U.S.C. 1437f] assistance
notwithstanding the provisions of this section.
(h) Allowable public housing agency administrative fees and costs
(1) Fees under section 1437f
The Secretary shall establish a fee under section 1437f(q) of
this title for the costs incurred in administering the provision
of certificate and voucher assistance under section 1437f of this
title through the self-sufficiency program under this section.
The fee shall be the fee in effect under such section on June 1,
1990, except that for purposes of the fee under this paragraph
the applicable dollar amount for preliminary expenses under
section 1437f(q)(2)(A)(i) (!2) of this title shall, subject to
approval in appropriations Acts, be $300. Upon the submission by
the Comptroller General of the United States of the report
required under section 554(b) of the Cranston-Gonzalez National
Affordable Housing Act, the Secretary shall revise the fee under
this paragraph, taking into consideration the report of the
Comptroller General.
(2) Performance funding system
Notwithstanding any provision of section 1437g of this title,
the Secretary shall provide for inclusion under the performance
funding system under section 1437g of this title of reasonable
and eligible administrative costs (including the costs of
employing a full-time service coordinator) incurred by public
housing agencies carrying out local programs under this section.
The Secretary shall include an estimate of the administrative
costs likely to be incurred by participating public housing
agencies in the annual budget request for the Department of
Housing and Urban Development for public housing operating
assistance under section 1437g of this title and shall include a
request for such amounts in the budget request. Of any amounts
appropriated under section 1437g(c) of this title for fiscal year
1993, $25,000,000 is authorized to be used for costs under this
paragraph, and of any amounts appropriated under such section for
fiscal year 1994, $25,900,000 is authorized to be used for costs
under this paragraph.
(i) Public housing agency incentive award allocation
(1) In general
The Secretary shall carry out a competition for budget
authority for certificate and voucher assistance under section
1437f of this title and public housing development assistance
under section 1437c(a)(2) of this title reserved under paragraph
(4) and shall allocate such budget authority to public housing
agencies pursuant to the competition.
(2) Criteria
The competition shall be based on successful and outstanding
implementation by public housing agencies of a local self-
sufficiency program under this section. The Secretary shall
establish perfomance (!3) criteria for public housing agencies
carrying out such local programs and the Secretary shall cause
such criteria to be published in the Federal Register.
(3) Use
Each public housing agency that receives an allocation of
budget authority under this subsection shall use such authority
to provide assistance under the local self-sufficiency program
established by the public housing agency under this section.
(4) Reservation of budget authority
Notwithstanding section 1439(d) of this title, the Secretary
shall reserve for allocation under this subsection not less than
10 percent of the portion of budget authority appropriated in
each of fiscal years 1991 and 1992 for section 1437f of this
title that is available for purposes of providing assistance
under the existing housing certificate and housing voucher
programs for families not currently receiving assistance, and not
less than 10 percent of the public housing development assistance
available in such fiscal years for the purpose under section
1437c(a)(2) of this title (excluding amounts for major
reconstruction of obsolete projects).
(j) On-site facilities
Each public housing agency carrying out a local program may,
subject to the approval of the Secretary, make available and
utilize common areas or unoccupied public housing units in public
housing projects administered by the agency for the provision of
supportive services under the local program. The use of the
facilities of a public housing agency under this subsection shall
not affect the amount of assistance provided to the agency under
section 1437g of this title.
(k) Flexibility
In establishing and carrying out the self-sufficiency program
under this section, the Secretary shall allow public housing
agencies, units of general local government, and other
organizations discretion and flexibility, to the extent
practicable, in developing and carrying out local programs.
(l) Reports
(1) To Secretary
Each public housing agency 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 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 public housing agency or the
appropriate local 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
The Secretary shall submit to the Congress annually, as a part
of the report of the Secretary under section 3536 of this title,
a report summarizing the information submitted by public housing
agencies under paragraph (1). The report under this paragraph
shall also include any recommendations of the Secretary for
improving the effectiveness of the self-sufficiency program under
this section.
(m) GAO report
The Comptroller General of the United States may submit to the
Congress reports under this subsection evaluating and describing
the Family Self-Sufficiency program carried out by the Secretary
under this section.
(n) Definitions
As used in this section:
(1) The term "contract of participation" means a contract under
subsection (c) of this section entered into by a public housing
agency carrying out a local program under this section and a
participating family.
(2) The term "earned income" means income from wages, tips,
salaries, and other employee compensation, and any earnings from
self-employment. The term does not include any pension or
annuity, transfer payments, or any cash or in-kind benefits.
(3) The term "eligible family" means a family whose head of
household is not elderly, disabled, pregnant, a primary caregiver
for children under the age of 3, or for whom the family self-
sufficiency program would otherwise be unsuitable.
Notwithstanding the preceding sentence, a public housing agency
may enroll such families if they choose to participate in the
program.
(4) The term "local program" means a program for providing
supportive services to participating families carried out by a
public housing agency within the jurisdiction of the public
housing agency.
(5) The term "participating family" means a family that resides
in public housing or housing assisted under section 1437f of this
title and elects to participate in a local self-sufficiency
program under this section.
(6) The term "vacant unit" means a dwelling unit that has been
vacant for not less than 9 consecutive months.
(o) Effective date and regulations
(1) Regulations
Not later than the expiration of the 180-day period beginning
on November 28, 1990, the Secretary shall by notice establish any
requirements necessary to carry out this section. Such
requirements shall be subject to section 553 of title 5. The
Secretary shall issue final regulations based on the notice not
later than the expiration of the 8-month period beginning on the
date of the notice. Such regulations shall become effective upon
the expiration of the 1-year period beginning on the date of the
publication of the final regulations.
(2) Repealed. Pub. L. 104-330, title V, Sec. 501(b)(8), Oct. 26,
1996, 110 Stat. 4042