Family self-sufficiency escrow expansion pilot program

Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following: 39. Escrow expansion pilot program (a) Definitions In this section: (1) Covered family The term covered family means a family that— (A) receives assistance under section 8 or 9 of this Act; (B) is enrolled in the pilot program; and (C) has an adjusted income that does not exceed 80-percent of the area-median income at the time of enrollment in the pilot program. (2) Eligible entity The term eligible entity means an entity described in subsection (c)(2) of section 23. (3) Pilot program The term pilot program means the pilot program established under this section. (4) Welfare assistance The term welfare assistance has the meaning given the term in section 984.103 of title 24, Code of Federal Regulations, or any successor regulation. (b) Program establishment The Secretary shall, not later than 1 year after the date of the enactment of this section, establish a pilot program under which the Secretary shall select not more than 25 eligible entities to establish and manage escrow accounts for not more than a total of 5,000 covered families, in accordance with this section. (c) Escrow accounts (1) In general An eligible entity selected to participate in the pilot program— (A) 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 3, 8(o), or 8(y), as applicable, that is attributable to increases in earned income by the covered family during the participation of such covered family in the pilot program; and (B) notwithstanding any other provision of law, may use existing funds made available to such entity at any time under section 8 or 9 for the purposes of making the escrow deposit for a covered family assisted under, or residing in a unit assisted under, section 8 or 9 provided that such amounts are offset by the increase in the amount of rent paid by the covered family. (2) Withdrawals A covered family may withdraw funds, including any interest earned, from an escrow account established by an eligible entity under the pilot program for such covered family— (A) after the covered family ceases to receive welfare assistance; and (B) (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 8 or 9, 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; or (v) under other circumstances for good cause as determined by the Secretary. (3) Interim recertification For the purposes of the pilot program established under this section, a covered family shall recertify the income of such family not less than once each year. (4) Contract or plan An eligible entity may not require a covered family to— (A) complete a contract that requires the participation of the covered family in the pilot program established under this section; or (B) participate in any individual training or services plan as a condition for participating in the pilot program. (d) Effect of increases in family income The amount equal to any increase in the earned income of a covered family from the date of enrollment of the covered family in the pilot program established under this section through the date all funds are withdrawn from the escrow account established for such family under this section may not be considered as income or a resource for purposes of eligibility of the covered family for other benefits, or amount of benefits payable to the family, under any program administered by the Secretary. (e) Application (1) In general An eligible entity seeking to participate in the pilot program shall submit to the Secretary an application— (A) at such time, in such manner, and containing such information as the Secretary may require by notice; and (B) that includes the number of covered families to which the eligible entity intends to provide escrow accounts under this section. (2) Geographic and entity variety The Secretary shall ensure that eligible entities selected to participate in the pilot program— (A) are located across various States and in both urban and rural areas; and (B) vary by size and type, including both public housing agencies and private owners of projects receiving project-based rental assistance under section 8. (f) Notification and opt-out An eligible entity participating in the pilot program shall— (1) notify each covered family of their enrollment in the pilot program; (2) provide each covered family with a detailed description of the pilot program, including how the pilot program will impact their rent and finances; (3) inform each covered family that the family may not simultaneously participate in the pilot program and the Family Self-Sufficiency program under this section; and (4) provide each covered family with the ability to elect not to participate in the pilot program— (A) not less than 2 weeks before the date on which the escrow account is established under subsection (c); and (B) at any point during the duration of the pilot program. (g) Maximum rents During the term of participation by a covered family in the pilot program, the amount of rent paid by the covered family shall be calculated under the section 3 or 8(o), as applicable. (h) Pilot program timeline (1) Awards Not later than 18 months after the date of enactment of this section, the Secretary shall select the eligible entities to participate in the pilot program. (2) Establishment and terms of accounts An eligible entity selected to participate in the pilot program shall— (A) not later than 6 months after selection, establish escrow accounts under subsection (c) for covered families; and (B) maintain those escrow accounts for not less than 5 years, or until the date the family ceases to receive assistance under section 8 or 9, and, at the discretion of the covered family, not more than 7 years after the date on which the escrow account is established. (i) Nonparticipation and housing assistance (1) In general A family that elects not to participate in the pilot program may not be delayed or denied assistance under section 8 or 9 for reason of such election. (2) No termination Housing assistance may not be terminated as a consequence of participating, or not participating, in the pilot program under this section for any period of time. (j) Study Not later than 8 years after the date the Secretary selects eligible entities to participate in the pilot program under this section, the Secretary shall conduct a study and submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on outcomes for covered families that participated in the pilot program, which shall evaluate the effectiveness of the pilot program in assisting families to achieve economic independence and self-sufficiency, and the impact coaching and supportive services, or the lack thereof, had on individual incomes. (k) Waivers The Secretary may, upon the written request of an eligible entity receiving amounts under this section, waive requirements under this section that relate to the administration of the pilot program for the eligible entity that submitted the request if such waiver would allow such eligible entity to effectively administer the pilot program and make the required escrow account deposits under this section. (l) Termination The pilot program established under this section shall terminate on the date that is 7 years after the date of enactment of this section..

Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following: 39. Escrow expansion pilot program (a) Definitions In this section: (1) Covered family The term covered family means a family that— (A) receives assistance under section 8 or 9 of this Act; (B) is enrolled in the pilot program; and (C) has an adjusted income that does not exceed 80-percent of the area-median income at the time of enrollment in the pilot program. (2) Eligible entity The term eligible entity means an entity described in subsection (c)(2) of section 23. (3) Pilot program The term pilot program means the pilot program established under this section. (4) Welfare assistance The term welfare assistance has the meaning given the term in section 984.103 of title 24, Code of Federal Regulations, or any successor regulation. (b) Program establishment The Secretary shall, not later than 1 year after the date of the enactment of this section, establish a pilot program under which the Secretary shall select not more than 25 eligible entities to establish and manage escrow accounts for not more than a total of 5,000 covered families, in accordance with this section. (c) Escrow accounts (1) In general An eligible entity selected to participate in the pilot program— (A) 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 3, 8(o), or 8(y), as applicable, that is attributable to increases in earned income by the covered family during the participation of such covered family in the pilot program; and (B) notwithstanding any other provision of law, may use existing funds made available to such entity at any time under section 8 or 9 for the purposes of making the escrow deposit for a covered family assisted under, or residing in a unit assisted under, section 8 or 9 provided that such amounts are offset by the increase in the amount of rent paid by the covered family. (2) Withdrawals A covered family may withdraw funds, including any interest earned, from an escrow account established by an eligible entity under the pilot program for such covered family— (A) after the covered family ceases to receive welfare assistance; and (B) (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 8 or 9, 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; or (v) under other circumstances for good cause as determined by the Secretary. (3) Interim recertification For the purposes of the pilot program established under this section, a covered family shall recertify the income of such family not less than once each year. (4) Contract or plan An eligible entity may not require a covered family to— (A) complete a contract that requires the participation of the covered family in the pilot program established under this section; or (B) participate in any individual training or services plan as a condition for participating in the pilot program. (d) Effect of increases in family income The amount equal to any increase in the earned income of a covered family from the date of enrollment of the covered family in the pilot program established under this section through the date all funds are withdrawn from the escrow account established for such family under this section may not be considered as income or a resource for purposes of eligibility of the covered family for other benefits, or amount of benefits payable to the family, under any program administered by the Secretary. (e) Application (1) In general An eligible entity seeking to participate in the pilot program shall submit to the Secretary an application— (A) at such time, in such manner, and containing such information as the Secretary may require by notice; and (B) that includes the number of covered families to which the eligible entity intends to provide escrow accounts under this section. (2) Geographic and entity variety The Secretary shall ensure that eligible entities selected to participate in the pilot program— (A) are located across various States and in both urban and rural areas; and (B) vary by size and type, including both public housing agencies and private owners of projects receiving project-based rental assistance under section 8. (f) Notification and opt-out An eligible entity participating in the pilot program shall— (1) notify each covered family of their enrollment in the pilot program; (2) provide each covered family with a detailed description of the pilot program, including how the pilot program will impact their rent and finances; (3) inform each covered family that the family may not simultaneously participate in the pilot program and the Family Self-Sufficiency program under this section; and (4) provide each covered family with the ability to elect not to participate in the pilot program— (A) not less than 2 weeks before the date on which the escrow account is established under subsection (c); and (B) at any point during the duration of the pilot program. (g) Maximum rents During the term of participation by a covered family in the pilot program, the amount of rent paid by the covered family shall be calculated under the section 3 or 8(o), as applicable. (h) Pilot program timeline (1) Awards Not later than 18 months after the date of enactment of this section, the Secretary shall select the eligible entities to participate in the pilot program. (2) Establishment and terms of accounts An eligible entity selected to participate in the pilot program shall— (A) not later than 6 months after selection, establish escrow accounts under subsection (c) for covered families; and (B) maintain those escrow accounts for not less than 5 years, or until the date the family ceases to receive assistance under section 8 or 9, and, at the discretion of the covered family, not more than 7 years after the date on which the escrow account is established. (i) Nonparticipation and housing assistance (1) In general A family that elects not to participate in the pilot program may not be delayed or denied assistance under section 8 or 9 for reason of such election. (2) No termination Housing assistance may not be terminated as a consequence of participating, or not participating, in the pilot program under this section for any period of time. (j) Study Not later than 8 years after the date the Secretary selects eligible entities to participate in the pilot program under this section, the Secretary shall conduct a study and submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on outcomes for covered families that participated in the pilot program, which shall evaluate the effectiveness of the pilot program in assisting families to achieve economic independence and self-sufficiency, and the impact coaching and supportive services, or the lack thereof, had on individual incomes. (k) Waivers The Secretary may, upon the written request of an eligible entity receiving amounts under this section, waive requirements under this section that relate to the administration of the pilot program for the eligible entity that submitted the request if such waiver would allow such eligible entity to effectively administer the pilot program and make the required escrow account deposits under this section. (l) Termination The pilot program established under this section shall terminate on the date that is 7 years after the date of enactment of this section..