[Congressional Record Volume 170, Number 43 (Monday, March 11, 2024)]
[Senate]
[Pages S2347-S2348]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. REED (for himself and Mrs. Britt):
  S. 3904. A bill to establish a pilot program to improve the family 
self-sufficiency program, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. REED. Madam President, today I am introducing the Helping More 
Families Save Act with Senator Britt. This bipartisan legislation would 
help more families in HUD-assisted housing build savings and improve 
their financial security by creating a pilot program for Family Self-
Sufficiency, FSS, universal escrow accounts.
  The FSS Program was established under the National Affordable Housing 
Act of 1990 to help low-income families boost savings and improve their 
professional, educational, and financial standing. In 2018, I worked 
with then-Senator Roy Blunt to expand the program to cover more 
households. Today, millions of public housing residents. Housing Choice 
Voucher Program participants, and residents of project-based rental 
assistance, PBRA, housing are eligible for FSS.
  FSS provides two key tools for its participants. First, households 
work with FSS coordinators to develop long-term financial, 
professional, or educational goals. FSS coordinators also help connect 
participants with resources, training, and employment opportunities. 
Second, the program encourages FSS families to save by providing them 
with an interest-bearing escrow account. Participants who increase 
their incomes deposit a portion of their addditional earnings into 
their escrow account instead of paying higher rent, as is typically 
required under federally subsidized housing programs. Upon graduation 
from the FSS Program, families can use their escrowed savings to pay 
for job-related expenses, move to private market housing, buy a home, 
or save for the future.
  After more than 30 years, FSS has become a proven financial 
independence program. Indeed, in 2021 27 percent of FSS graduates no 
longer needed Federal rental assistance within 1 year of leaving FSS, 
while 11 percent of graduates were ultimately able to purchase their 
own home, FSS graduates with

[[Page S2348]]

escrow savings, on average, had approximately $9,495 in their account 
upon leaving the program--a substantial sum for low-income families.
  Despite the program's success and broad eligibility, program 
participation was effectively capped at about 70,000 enrollees in 2023 
because there is simply not enough Federal funding for the required FSS 
corordinators.
  The Helping More Families Save Act would help more Americans access 
the program by creating a anew universal escrow pilot. Under the bill, 
public housing agencies, PHAs, and PBRA property owners could offer a 
limited number of additional households escrow accounts identical to 
those under the current FSS Program without having to wait for an FSS 
coordinator to be funded by the Federal Government. Although PHAs and 
PBRA property owners would not be required to offer Coordinator 
services to these participants, we expect many will work to offer 
appropriate counseling and support on their own or with outside 
partners. Moreover, we expect that this pilot will show that those 
enrolled in the program will be successful and make wise decisions.
  If successful, the pilot program could help more low-income families 
improve their financial security, achieve economic independence, and 
even purchase their own homes, all with minimal cost to the Federal 
Government.
  This is a commonsense, bipartisan proposal that has the potential to 
help lift more American families out of poverty. It is a win for 
families, the Federal budget, and our economy. I thank Senator Britt 
for coleading this legislation and Compass Working Capital and LISC for 
their support. I urge our colleagues to cosponsor the Helping More 
Families Save Act and support its passage.
                                 ______
                                 
      By Mr. REED (for himself and Ms. Lummis):
  S. 3905. A bill to amend title I of the National Housing Act to 
increase the loan limits and clarify that property improvement loans 
may be used for construction of accessory dwelling units; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. REED. Madam President, today I am introducing the Property 
Improvement and Manufactured Housing Loan Modernization Act with 
Senator Lummis. This legislation would strengthen the Federal Housing 
Administration, FHA, title I loan program to both help more families 
find and own an affordable home and better preserve our existing 
housing stock.
  Like its better known title II sister program, FHA title I expands 
access to housing and boosts affordability for families by insuring 
private market loans. However, title I is targeted towards two 
underserved portions of our housing market--manufactured homes and 
property improvement.
  For decades, title I has provided low-cost loans that help more 
families afford a manufactured home or make necessary improvements to 
their existing home, while expanding and preserving critical portions 
of housing supply. Indeed, manufactured homes are the largest source of 
unsubsidized affordable housing in the country, and property 
improvement loans help prevent more single-family homes and apartments 
from falling out of our housing stock.
  These loans should be a central tool helping to close our nationwide 
housing shortage, which Freddie Mac estimates at 3.8 million homes. 
However, outdated loan limits and statutory restrictions have weakened 
title I's effectiveness and turned the program from success to a missed 
opportunity.
  From the mid-1980s, through the early 1990s lenders offered 15,000 to 
25,000 title I manufactured home loans each year, but in 2021, only 3 
loans were issued. Similarly, lenders have gone from making more than 
70,000 title I property improvement loans annually in the 1990s to 
making fewer than 1,000 in 2022. That is a 99-percent drop in loan 
volume. In other words, as many as 99,000 fewer homes being bought, 
preserved, and included in our housing stock each year.
  The Property Improvement and Manufactured Housing Loan Modernization 
Act would refurbish title I and return it to our housing toolbox. It 
would expand loan limits and loan terms for all title I loans--making 
the program fit market demand and needs. Perhaps more importantly. the 
bill would finally allow FHA to index property improvement loans for 
inflation and expand the data it uses to set manufactured home loan 
limits, ensuring title I will remain a crucial tool as home costs rise 
in future years.
  Finally, our legislation makes accesible dwelling units, ADUs, which 
are small housing units added to a single-family property often for use 
by a family member, eligible for title I financing. In other words, our 
bill will make the revamped title I program an even more powerful home-
creation program than it was during its prior peak years and will 
particularly help families who want to provide a safe, comfortable 
place for aging parents or young adult children to live.
  Collectively, these improvements would help more families own a home, 
remain in homes they have spent decades in, and find an affordable 
place to live. I urge my colleagues to join Senator Lummis and myself, 
cosponsor this bill, and support its passage.

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