PART 984—SECTION 8 AND PUBLIC HOUSING FAMILY SELF-SUFFICIENCY PROGRAM Authority: 42 U.S.C. 1437f, 1437u, and 3535(d). Source: 87 FR 30047, May 17, 2022, unless otherwise noted. Editorial Note: Nomenclature changes to part 984 appear at 65 FR 16731, Mar. 29, 2000. Subpart A—General § 984.101 Purpose, applicability, and scope. (a) Purpose. (2) The purpose of this part is to implement the policies and procedures applicable to operation of an FSS program, as established under section 23 of the 1937 Act (42 U.S.C. 1437u). (b) Applicability. (c) Scope. (d) Non-participation. § 984.102 Program objectives. The objective of the FSS program is to reduce the dependency of low-income families on welfare assistance and housing subsidies. Under the FSS program, HUD assisted families are provided opportunities for education, job training, counseling, and other forms of social service assistance, while living in assisted housing, so that they may obtain the education, employment, and business and social skills necessary to achieve self-sufficiency, as defined in § 984.103. The Department will evaluate the performance of a PHA's or owner's FSS program using a scoring system that measures criteria, such as graduation from the program, increased earned income, and program participation, as provided by HUD through a Federal Register § 984.103 Definitions. (a) The terms 1937 Act, Fair Market Rent, Head of household, HUD, Low income family, Public housing, Public Housing Agency (PHA), Secretary, (b) As used in this part: Baseline annual earned income except for Baseline monthly rent (i) The FSS family's total tenant payment (TTP), as of the effective date of the FSS contract, for families paying an income-based rent as of the effective date of the FSS contract; or (ii) The amount of the flat or ceiling rent (which includes the applicable utility allowance), and including any hardship discounts, as of the effective date of the FSS contract, for families paying a flat or ceiling rent as of the effective date of the FSS contract. Certification (i) Shall be maintained by the PHA or owner in the case of the family's certification, or by HUD in the case of the PHA's or owner's certification; (ii) Shall be made available for inspection by HUD, the PHA or owner, and the public, as appropriate; and, (iii) Shall be deemed to be accurate for purposes of this part, unless the Secretary or the PHA or owner, as applicable, determines otherwise after inspecting the evidence and providing due notice and opportunity for comment. Chief executive officer (CEO) Contract of Participation (CoP) Current annual earned income Current monthly rent (i) The FSS family's TTP as of the most recent re-examination of income, which occurs after the effective date of the FSS contract, for families paying an income-based rent as of the most recent re-examination of income; or (ii) The amount of the flat rent (which includes the applicable utility allowance) or ceiling rent, including any hardship discounts, as of the most recent re-examination of income which occurs after the effective date of the FSS contract, for families paying a flat rent or ceiling rent as of the most recent re-examination of income. Earned income Effective date of Contract of Participation (CoP) Eligible families Enrollment Family Self-Sufficiency (FSS) Program FSS escrow account (or, escrow) FSS escrow credit FSS family FSS family in good standing FSS related service program FSS slots FSS Program Coordinator FY Head of FSS family Individual Training and Services Plan (ITSP) (i)(A) The final and interim goals for the participating FSS family member; (B) The supportive services to be provided to the participating FSS family member; (C) The activities to be completed by that family member; and, (D) The agreed upon completion dates for the goals, and activities. (ii) Each ITSP must be signed by the PHA or owner and the participating FSS family member and is attached to, and incorporated as part of the CoP. An ITSP must be prepared for each adult family member who elects to participate in the FSS program, including the head of FSS family who has signed the CoP. Multifamily assisted housing (also known as project-based rental assistance (PBRA)) Owner Program Coordinating Committee (PCC) Section 8 Self-sufficiency Supportive services (i) Child care. (ii) Transportation. (iii) Education. (iv) Employment supports. (v) Personal welfare. (vi) Household management. (vii) Homeownership and housing counseling. (viii) Financial empowerment. (ix) Other services. Unit size or size of unit Very low-income family Welfare assistance i.e., (i) Nonrecurrent, short-term benefits that: (A) Are designed to deal with a specific crisis or episode of need; (B) Are not intended to meet recurrent or ongoing needs; and, (C) Will not extend beyond four months; (ii) Work subsidies ( i.e., (iii) Supportive services such as child care and transportation provided to families who are employed; (iv) Refundable earned income tax credits; (v) Contributions to, and distributions from, Individual Development Accounts under TANF; (vi) Services such as counseling, case management, peer support, child care information and referral, financial empowerment, transitional services, job retention, job advancement, and other employment-related services that do not provide basic income support; (vii) Amounts solely directed to meeting housing expenses; (viii) Amounts for health care; (ix) Supplemental Nutrition Assistance Program and emergency rental and utilities assistance; (x) Supplemental Security Income, Social Security Disability Income, or Social Security; and (xi) Child-only or non-needy TANF grants made to or on behalf of a dependent child solely on the basis of the child's need and not on the need of the child's current non-parental caretaker. § 984.104 Basic requirements of the FSS program. (a) An FSS program established under this part shall be operated in conformity with the requirements of this part, including the Action Plan at § 984.201, and: (1) As applicable to voucher program participants: (i) HCV regulations at 24 CFR part 982, for HCV program participants; and (ii) Project-based voucher (PBV) regulations at 24 CFR part 983, for PBV program participants; and (iii) HCV Homeownership regulations at 24 CFR 982.625 through 982.643, for HCV homeownership participants; (2) As applicable to Mod Rehab and Mod Rehab SRO participants, 24 CFR part 882; (3) As applicable to public housing program participants, the applicable public housing regulations, including the regulations in 24 CFR parts 5, subpart F, 960, and 966; and, (4) The applicable nondiscrimination and equal opportunity requirements including, but not limited to, those set forth in 24 CFR part 5. (b) [Reserved] § 984.105 Minimum program size. (a) FSS program size Minimum program size requirement. (2) Exceptions to program operation requirement or to operate a smaller mandatory program. (3) Option to operate larger FSS program. (b) How to determine FSS minimum program size General requirement. (2) Reduction of minimum program size. (c) Exception to program operation. (i) Lack of supportive services accessible to eligible families, including insufficient availability of resources for programs under title I of the Workforce Innovation and Opportunity Act (29 U.S.C. 3111 et seq. (ii) Lack of funding for reasonable administrative costs; (iii) Lack of cooperation by other units of State or local government; or, (iv) Lack of interest in participating in the FSS program on the part of eligible families. (2) A program operation exception will not be granted if HUD determines that local circumstances do not preclude the PHA from effectively operating an FSS program that is smaller than the minimum program size. (d) Exception to operate a smaller mandatory program. (1) Decrease in or lack of supportive services available to eligible families, including insufficient availability of resources for programs under title I of the Workforce Innovation and Opportunity Act (29 U.S.C. 3111 et seq. (2) Decrease in or lack of funding for reasonable administrative costs; (3) Decrease in or lack of cooperation by other units of State or local government; or (4) Decrease in or lack of interest in participating in the FSS program on the part of eligible families. (e) Expiration of exception. (f) Review of certification records. § 984.106 Cooperative Agreements. (a) A PHA may enter into a Cooperative Agreement with one or more owners to voluntarily make an FSS program available to the owner's multifamily assisted housing tenants. (b) A PHA and owner that enter into a Cooperative Agreement to make an FSS program available pursuant to paragraph (a) of this section, are subject to this part and the following requirements: (1) The PHA must open its FSS waiting list to any eligible family residing in the multifamily assisted housing covered by the Cooperative Agreement. (2) The owner must provide, at the request of the PHA, information on escrow amounts for participating multifamily assisted housing tenants. The Cooperative Agreement must provide that the owner is responsible for managing the escrow account for participating multifamily assisted housing tenants, including calculating and tracking of escrow in accordance with § 984.305. The Cooperative Agreement must set forth the procedures that will be in place for the exchange of escrow information between the PHA and the owner. (3) The PHA may count multifamily assisted housing families served pursuant to a Cooperative Agreement under this subpart as part of the calculation of the FSS award under §§ 984.107 and 984.302. (4) The PHA may use FSS appropriated funds to serve multifamily assisted housing tenants subject to a Cooperative Agreement under this section. (5) The Cooperative Agreement must clearly specify the terms and conditions of such agreement, including the requirements of this section, and it must include a process for entities for PHAs and owners to communicate with each other about changes in their Action Plan. § 984.107 FSS award funds formula. The Secretary may establish a formula by which funds for administration of the FSS program are awarded consistent with 42 U.S.C. 1437u(i), which provides the following: (a) Base award. (b) Additional award. (c) State and regional entities. (d) Determination of number of coordinators. (e) Renewals and allocation. (1) First priority. (i) Each PHA or owner 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 PHA or owner 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. (2) Second priority. (f) Recapture or offset. (g) Incentives for innovation and high performance. Subpart B—Program Development and Approval Procedures § 984.201 Action Plan. (a) Requirement for Action Plan. (b) Development of Action Plan. et seq. (c) Plan submission Voluntary program. (2) Revision. (d) Contents of Plan. (1) Family demographics. (2) Estimate of participating families. (3) Eligible families from other self-sufficiency programs. (4) FSS family selection procedures. (5) Incentives to encourage participation. (6) Outreach efforts. (i) The efforts, including notification and outreach efforts, to recruit FSS participants from among eligible families; and, (ii) The actions to be taken to assure that both minority and non-minority groups are informed about the FSS program, and how this information will be made available; (7) FSS activities and supportive services. (8) Method for identification of family support needs. (9) Program termination; withholding of services; and available grievance procedures. (10) Assurances of non-interference with rights of non-participating families. (11) Timetable for program implementation. (12) Certification of coordination. et seq. (13) Optional additional information. (i) Policies related to the modification of goals in the ITSP; (ii) The circumstances in which an extension of the Contract of Participation may be granted; (iii) Policies on the interim disbursement of escrow, including limitations on the use of the funds (if any); (iv) Policies regarding eligible uses of forfeited escrow funds by families in good standing; (v) Policies regarding the re-enrollment of previous FSS participants, including graduates and those who exited the program without graduating; (vi) Policies on requirements for documentation for goal completion; (vii) Policies on documentation of the household's designation of the “head of FSS family;” and (viii) Policies for providing an FSS selection preference for porting families (if the PHA elects to offer such a preference). (e) Eligibility of a combined program. (f) Single Action Plan. § 984.202 Program Coordinating Committee (PCC). (a) General. (b) Membership Required membership. (i) An area-wide or city-wide resident council, if one exists; (ii) If the PHA operates in a specific public housing development, the resident council or resident management corporation, if one exists, of the public housing development where the public housing FSS program is to be carried out; or (iii) Any other resident group, which the PHA believes is interested in the FSS program and would contribute to the development and coordination of the FSS program (such as the Resident Advisory Board or tenant association, as applicable). (2) Recommended membership. et seq. (c) Alternative committee. § 984.203 FSS family selection procedures. (a) Preference in the FSS selection process. (1) The percentage of FSS slots, not to exceed fifty (50) percent of the total number of FSS slots, for which it will give a selection preference; (2) The FSS related service programs to which it will give a selection preference to the programs' participants and applicants; and (3) The method of outreach to, and selection of, families with one or more members participating in the identified programs. (b) Selection among families with preference. (1) Date and time of application to the FSS program; or, (2) A drawing or other random choice technique. (c) FSS selection without preference. (d) Motivation as a selection factor General. (2) Permissible motivational screening factors. e.g., (3) Prohibited motivational screening factors. § 984.204 On-site facilities. Each PHA or owner may, subject to the approval of HUD, make available and utilize common areas or unoccupied dwelling units in properties owned by the entity to provide or coordinate supportive services under any FSS program. Subpart C—Program Operations § 984.301 Program implementation. (a) Voluntary program implementation. (b) Program administration. § 984.302 FSS funds. (a) Public housing program. (b) Section 8 program. (c) FSS funds. § 984.303 Contract of Participation (CoP). (a) General. (b) Form and content of contract General. (2) FSS family goals. (3) Compliance with lease terms. (4) Employment obligation Minimum requirement. (ii) Seek employment. (iii) Determination of suitable employment. (5) Consequences of noncompliance with the contract. (c) Contract of Participation term. (d) Contract of Participation extension. good cause (1) Circumstances beyond the control of the FSS family that impede the family's ability to complete the CoP obligations, as determined by the PHA or owner, such as a serious illness or involuntary loss of employment; (2) Active pursuit of a current or additional goal that will result in furtherance of self-sufficiency during the period of the extension ( e.g., (3) Any other circumstance that the PHA or owner determines warrants an extension, as long as the PHA or owner is consistent in its determination as to which circumstances warrant an extension. (e) Unavailability of supportive services Good-faith effort to replace unavailable services. (2) Assessment of necessity of services. (i) Determined not to be integral to the FSS family's advancement toward self-sufficiency, the PHA or owner shall revise the ITSP to delete these services, and modify the CoP to remove any obligation on the part of the FSS family to accept the unavailable services, in accordance with paragraph (f) of this section; or, (ii) Determined to be integral to the FSS family's advancement toward self-sufficiency, the PHA or owner shall terminate the CoP and follow the requirements in paragraph (k) of this section regarding FSS escrow disbursement. (f) Modification. (g) Completion of the contract. (h) Termination of the contract. (1) Mutual consent of the parties; (2) The failure of the FSS family to meet its obligations under the CoP without good cause. This includes an FSS family who has moved out of multifamily assisted housing and families receiving tenant-based assistance under section 8(o) of the 1937 Act who fail to comply with the contract requirements because the family has moved outside the jurisdiction of the PHA, and the PHA has not determined that there is good cause terminate the CoP with FSS escrow disbursement in accordance with paragraph (k)(1)(iii) of this section; (3) The family's withdrawal from the FSS program; (4) Such other act as is deemed inconsistent with the purpose of the FSS program; or (5) Operation of law. (i) Option to terminate FSS participation or withhold the coordination of supportive service assistance. (j) Transitional supportive service assistance. (k) Termination with FSS escrow disbursement. (i) Services that the PHA or owner and the FSS family have agreed are integral to the FSS family's advancement towards self-sufficiency are unavailable, as described in paragraph (e) of this section; (ii) The head of the FSS family becomes permanently disabled and unable to work during the period of the contract, unless the PHA or owner and the FSS family determine that it is possible to modify the contract to designate a new head of the FSS family; or (iii) An FSS family in good standing moves outside the jurisdiction of the PHA (in accordance with portability requirements at § 982.353 of this chapter) for good cause, as determined by the PHA, and continuation of the CoP after the move, or completion of the CoP prior to the move, is not possible. PHAs must be consistent in their determinations of whether a family has good cause for a termination with FSS escrow disbursement under this paragraph (k). (2) Upon termination of a CoP pursuant to paragraph (k)(1) of this section, escrow funds must be handled consistent with § 984.305. § 984.304 Amount of rent paid by FSS family and increases in family income. (a) Amount of rent paid by FSS family. (1) Public housing program: Calculation of total tenant payment. (2) Section 8 programs: Calculation of rent. (ii) For the PBV program, rent is determined in accordance with 24 CFR part 983, subpart G. (b) Increases in FSS family income. § 984.305 FSS escrow account. (a) Establishment of FSS escrow account General. (2) Accounting for FSS escrow account funds Accounting records. (ii) Proration of investment income. (iii) Reduction of amounts due by FSS family. (3) Reporting on FSS escrow account. (i) The balance at the beginning of the reporting period; (ii) The amount of the family's rent payment that was credited to the FSS escrow account, during the reporting period; (iii) Any deductions made from the account at the time of final disbursement of FSS escrow funds (see paragraphs (a)(2)(iii) and (c) of this section) for amounts due the PHA or owner; (iv) The amount of interest earned on the account during the year; and (v) The total in the account at the end of the reporting period. (b) FSS credit Determining the family's baseline information. (2) Computation of amount. (i) Thirty (30) percent of one-twelfth ( 1/12 i.e., (ii) The increase in the family's monthly rent. The increase in the family's monthly rent shall be the lower of: (A) The amount by which the family's current monthly rent exceeds the family's baseline monthly rent; (B) For HCV families, the difference between the baseline monthly rent and the current gross rent ( i.e., (C) For PBV, Mod Rehab, including Mod Rehab SRO, and PBRA families, the difference between the baseline monthly rent and the current gross rent ( i.e., (3) Ineligibility for FSS credit. i.e., (4) Cessation of FSS credit. (i) When the FSS family has completed the CoP, as described in § 984.303(g); (ii) When the CoP is terminated; or (iii) During the time an HCV family is in the process of moving to a new unit, in accordance with HCV program requirements in part 982 of this title, and is not under a lease. (c) Disbursement of FSS escrow account funds General. (2) Disbursement before expiration of contract term. (ii) If the PHA or owner determines that the FSS family has fulfilled certain interim goals established in the CoP and needs a portion of the FSS escrow account funds for purposes consistent with or in support of the CoP, such as completion of higher education ( i.e., (3) Disbursement in cases of termination of the CoP with disbursement of escrow. (4) Verification of family certification. (d) Succession of FSS escrow account. (e) Use of FSS escrow account funds for homeownership. (f) Forfeiture of FSS escrow account funds Conditions for forfeiture. (i) The CoP is terminated, as provided in § 984.303(h); or, (ii) The CoP is completed by the family, as provided in § 984.303(g), but the FSS family is receiving welfare assistance at the time the CoP term expires, including any extension thereof. (2) Treatment of forfeited FSS escrow account funds. (i) Specifically, such funds may be used for the following eligible activities: (A) Support for FSS participants in good standing, including, but not limited to, transportation, child care, training, testing fees, employment preparation costs, and other costs related to achieving obligations outlined in the CoP; (B) Training for FSS Program Coordinator(s); or (C) Other eligible activities as determined by the Secretary. (ii) Such funds may not be used for salary and fringe benefits of FSS Program Coordinators; general administrative costs of the FSS program, for housing assistance payments (HAP) expenses or public housing operating funds; or any other activity determined ineligible by the Secretary. § 984.306 HCV portability requirements for FSS participants. (a) Initial period of CoP First 12 months. (2) After the first 12 months. (b) An FSS family moves to the jurisdiction of a receiving PHA that administers an FSS program. (i) The receiving PHA is already serving the number of FSS families identified in its FSS Action Plan and determines that it does not have the resources to manage the FSS contract; or (ii) The receiving PHA and the initial PHA agree to the FSS family's continued participation in the initial PHA's FSS program. Prior to the PHAs agreeing to the continued participation, the initial PHA must determine that the relocating FSS family has demonstrated that, notwithstanding the move, it will be able to fulfill its responsibilities under the initial or a modified CoP at its new place of residence. For example, the FSS family may be able to commute to the supportive services specified in the CoP, or the family may move to obtain employment as specified in the contract. (2) Where continued FSS participation is not possible in accordance with paragraph (b)(1) of this section, the initial PHA must clearly discuss the options that may be available to the family, depending on the family's specific circumstances, which may include, but are not limited to, modification of the FSS contract, termination of the FSS contract and forfeiture of escrow, termination with FSS escrow disbursement in accordance with § 984.303(k)(1)(iii), or locating a receiving PHA that has the capacity to enroll the family into its FSS program. (c) An FSS family moves to the jurisdiction of a receiving PHA that does not administer an FSS program. (d) Single FSS escrow account. (e) FSS program termination; loss of FSS escrow account. (2) In the event of forfeiture of the family's FSS escrow account funds, the FSS escrow account funds will revert to the PHA maintaining the FSS escrow account for the family. (f) Contract of Participation (CoP). (2) If the FSS family remains in the FSS program of the initial PHA, pursuant to this section, the CoP executed by the initial PHA will remain as the contract in place. (g) New FSS enrollment into the receiving PHA's FSS program Billing. (2) Absorption. Subpart D—Reporting § 984.401 Reporting. Each PHA or owner that carries out an FSS program shall submit to HUD, in the form prescribed by HUD, a report regarding its FSS program. The report shall include the following information: (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, including the number of families enrolled and graduated and the number of established escrow accounts and positive escrow balances; (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 by the PHA or owner or the appropriate local Program Coordinating Committee for legislative or administrative action that would improve the FSS program and ensure the effectiveness of the program.