HUD updates on the Family Self-Sufficiency (FSS) Program

1. HUD updates on the Family Self-Sufficiency (FSS) Program Jogchum Poodt, PIH FSS Program Administrator, HUD Texas Housing Association Conference August 13, 2019

2. Agenda • Current Budget & Funding • Performance Measurement Methodology • Economic Growth, Regulatory Relief, and Consumer Protection Act • RAD – Implications for FSS/ROSS • FSS Information & Technical Assistance • Q&A

3. Current Budget Situation

4. Funding FY18 Renewal NOFA awards made Feb, 2019 Pre-award funds Period of performance NEW PHA APPLICANTS NOFA was due June 13, 2019 (using FY18 and FY19 funds) Expecting announcement of awardees by September 30, 2019 New regulations will not be in place in time for them to affect FY19 funding Look to FY20 for PBRA owners to apply for funding (if available) FY19 Renewal FY19 New applicants

5. Three Metrics • Household Earnings Growth • Comparison family for each participant family (age, baseline earnings, length of time in housing assistance) • Looking at cohort who entered FSS 3.5-7.5 years ago • Graduation Rate • % of FSS participants that enrolled 8-10 years ago that have graduated. • FSS Participation Rate • # of households at the PHA compared to minimum # required to be served by the grant • All based on PIC data • Will not apply to PBRA properties, MTW PHAs or un-funded PIH FSS programs in FY19 FSS Performance Measurement Methodology (Composite Score)

6. FY15 grants were last year for Logic Model • 50058 Section 17 reporting is CRITICAL • PIH 2016-8 Notice on FSS Reporting in PIC • Followed by a webinar • NOFA will not allow ad hoc reports to support eligibility • Performance Measurement Methodology (Composite score) FINAL published November 15, 2018. • 25th anniversary of FSS was 2017. https://www.hudexchange.info/programs/fss/25-years/ • FSS Webpage has all FSS reports/evaluations • Send any we missed! • FSS Longitudinal Evaluation - ongoing PIH FSSReporting/Evaluation

7. FSS Re-Authorization LegislationEconomic Growth, Regulatory Relief, and Consumer Protection Act05/24/2018 Became Public Law No: 115-174 (proposed as S. 2155)The Easy Stuff

8. Other statutory changes • Old statute required CoP be signed (and completed) by Head of Household • New Statute reads that the CoP may be signed by any member of the family. • Old statute had the CoP lasting 5 years from execution of CoP • New statute has CoP lasting 5 years from first re-certification after execution of CoP • Old statute had forfeited escrow go back to Op Fund or HAP • New statute says forfeited escrow “shall be used by the eligible entity for the benefit of participating families in good standing.” • HCV-Homeownership voucher residents are not eligible to participate in FSS

9. More proposed changes • Remove 30% rule • Expand reasons for extension (e.g. “good cause” means circumstances beyond the control of the FSS family, as determined by the PHA, such as a serious illness or involuntary loss of employment or active pursuit of an educational goal that will result in employment during the period of extension (e.g. completion of a college degree during which the participant is un- or under-employed)….A contract may not be extended for the sole purpose of increasing escrow amounts.) • Remove “12 months” from welfare-free requirement • Allow completion of CoP on basis of disability

10. More changes/clarifications • Changed effective date of CoP to date of execution. Currently, 1st of the month following date of execution • Remove 120 day rule • Programs may not impose mandatory goals across the board beyond HUD’s required final goal (employment). All goals must be individualized. • Streamlines escrow calculation and escrow calculation worksheet • Portability (conforms with PIH-2016-8) • Receiving PHA no longer has discretion to enroll porting FSS participant into receiving PHA’s FSS program – now MUST enroll or be party to an agreement that the porting participant will continue enrollment in originating PHA’s FSS program. • If receiving PHA does not have FSS program, originating FSS program is required to discuss options and impact with family.

11. HUD Office of General Counsel, Office of Legislation and Regulation will draft new regulations • Internal HUD Clearance • OMB Clearance • Congressional Clearance • Published in the Federal Register for Public Comment • PUBLIC COMMENT • Repeat steps 2-4 • Publish final regulation Next Steps

12. RAD – Implications for FSS/ROSS • Webinar for RAD SMEs on impact of RAD on “people” programs (FSS, ROSS, EDSC, Jobs Plus, EID) – Field Office Grant Managers and RAD SMEs have access to it on https://youtu.be/tl5m6XcAcZY • FSS • Convert from PH to PBV – no changes other than source of escrow because FSS programs have been merged since FY14. • Convert from PH to PBRA • May use existing FSS grant to continue to serve RAD-affected FSS participants • BUT if convert entire stock to PBRA (no more ACC or HCV/PBV) = no longer eligible to apply for FSS funding. • MUST continue to serve all FSS participants regardless of conversion until CoP ends. • ROSS - • Convert from PH to HCV or PBRA • Can use rest of ROSS grants already made, but units no longer qualify for future ROSS See PIH-2012-32 (HA), REV-3

13. FSS Information & Technical Assistance

14. Questions? Comments?