Family Self-Sufficiency (FSS)-Participant Guide

Participant Guide - Family Self-Sufficiency

Pdf Summary

This document is a training guide outlining the HUD Family Self-Sufficiency (FSS) program and the major requirements for Public Housing Agencies (PHAs) and PBRA owners under updated regulations (24 CFR part 984 and new part 887). It summarizes FSS purpose (coordinating HUD assistance with community resources to help families increase earned income, achieve stability, and reduce reliance on welfare/housing subsidies), key program history, and major 2022 Final Rule changes (updated escrow calculation, new/updated definitions, revised Contract of Participation/ITSP forms, required Action Plan updates, and new limits/uses for forfeited escrow benefiting participants in good standing). It also references a HUD OIG audit identifying common compliance failures (noncompliant action plans, incorrect escrow, inaccurate PIC reporting, insufficient monitoring, and missing documentation).<br /><br />Core implementation components include: maintaining a HUD-approved FSS Action Plan (publicly available and developed with the PCC and community partners); required Action Plan contents (family demographics, program size, selection procedures and preferences, incentives, outreach, supportive services coordination, needs assessment, termination/grievance policies, implementation timetable, and coordination certification); and establishing a Program Coordinating Committee (required for PH and HCV).<br /><br />Operational modules cover marketing and recruitment strategies; case management and client assessment (strengths/barriers, motivational interviewing, defining “head of FSS family”); ITSP development with interim/final goals (mandatory “free of welfare” goal by contract end and employment obligations for the head of FSS family); and rent calculation basics relevant to escrow.<br /><br />The guide explains executing contracts (effective date rules, expiration tied to first recertification, converting existing participants to new contracts), escrow account administration and reporting, and the new escrow credit formula and AMI-based crediting. It also includes the HCV Homeownership option overview, required program reporting through PIC/IMS and the HUD-50058 FSS Addendum, portability rules, graduation/extension/termination standards, and monitoring metrics including the FSS Composite Score and SEMAP Indicator 14. Practical case studies and sample forms/worksheets are provided for exercises.

Keywords

HUD Family Self-Sufficiency (FSS) program

24 CFR part 984

24 CFR part 887

Public Housing Agencies (PHAs) compliance

PBRA owner requirements

2022 FSS Final Rule changes

FSS Action Plan requirements

Program Coordinating Committee (PCC)

escrow calculation and administration

PIC/IMS reporting and HUD-50058 FSS Addendum