[House Report 115-464]
[From the U.S. Government Publishing Office]



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115th Congress    }                                  {         Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                  {         115-464
======================================================================



 
                      FAMILY SELF-SUFFICIENCY ACT

                                _______
                                

 December 13, 2017.--Committed to the Committee of the Whole House on 
                                  the
              State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4258]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 4258) to promote the development of local 
strategies to coordinate use of assistance under sections 8 and 
9 of the United States Housing Act of 1937 with public and 
private resources, to enable eligible families to achieve 
economic independence and self-sufficiency, and for other 
purposes, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                          Purpose and Summary

    On November 6, 2017, Representative Sean Duffy introduced 
H.R. 4258, the ``Family Self-Sufficiency Act''.
    The legislation would relieve the Department of Housing and 
Urban Development's (HUD) administrative and regulatory burdens 
to administer the Family Self-Sufficiency (FSS) program by 
combining the two separate FSS programs into one program. In 
addition, the bill seeks to broaden the supportive services 
that the FSS can provide to a participant and it would allow 
tenants who currently reside in privately-owned properties with 
HUD project-based assistance to participate in the FSS program. 
The FSS program, administered by HUD, helps families in public 
housing and the voucher program make progress toward economic 
self-sufficiency by combining stable affordable housing with 
work-promoting service coordination and a rent incentive in the 
form of an escrow account that grows as the families' earnings 
increase.

                  Background and Need for Legislation

    Enacted in 1990, the FSS program seeks to help families in 
Public Housing and the Housing Choice Voucher (HCV) program 
make progress toward economic security by combining stable 
affordable housing with work-promoting service coordination and 
a rent incentive in the form of an escrow account that grows as 
families' earnings increase.
    The program funds FSS Coordinators to help participants 
achieve employment goals and accumulate assets. The FSS 
Coordinators in each local program build partnerships with 
employers and service providers in the community to help 
participants obtain jobs and supportive services. These 
services may include child care, transportation, basic adult 
education, job training, employment counseling, substance/
alcohol abuse treatment, financial literacy, asset-building 
skills, and homeownership counseling among others.
    The FSS program helps families set goals to achieve 
economic security and economic independence. Generally, 
families have five (5) years in which to achieve their goals. 
Through FSS, participants become and stay employed, become 
independent of government assistance, and increase their income 
level. Graduating participants gain access to the escrow 
account established in their name, and, as a result, also 
decrease or eliminate the need for rental assistance. This 
program allows more resources for housing assistance to be made 
available to serve additional families.
    When implemented properly, FSS can serve as one of the 
largest asset-building programs for low-income families in the 
country. It uses stable housing as a means to promote economic 
freedom for Public Housing and HCV residents.
    HUD's FY 2018 Congressional Budget Justification provided 
an actual example of outcomes Family Self-Sufficiency Program 
for program graduates and their families:
          Q.P., [an FSS participant], is a single mother of 
        three and had been on the voucher program since 2005. 
        She enrolled in the FSS program in 2010 with an income 
        of $14,000 from temporary work. While on FSS, she 
        received her Associate's degree and became a licensed 
        radiographer. After four years, she graduated from FSS 
        and was no longer in need of voucher assistance, as her 
        income had increased to $72,000, which is 104 percent 
        of the local area median income (AMI).
    In a statement in support for H.R. 4258 dated November 13, 
2017, the Center on Budget and Policy Priorities and the 
National Low Income Housing Coalition wrote:
          The bill also will enhance the impact of the FSS 
        program, by making funding for program coordinators 
        more predictable yet also subject to ongoing compliance 
        with HUD-determined performance standards and periodic 
        evidence-based review and revision. In addition, the 
        bill will encourage innovation and facilitate 
        substantial increases in incomes that will make 
        homeownership or moves to private market rental housing 
        more feasible.
    In a statement of support for H.R. 4258 dated November 10, 
2017, the National Housing Trust wrote:
          NHT believes firmly that the Family Self Sufficiency 
        program is a very promising tool that owners can use to 
        help residents increase earning, grow savings, and 
        reduce dependency on public assistance. NHT supports 
        H.R. 4258 because it would strengthen the effective FSS 
        model.
    H.R. 4258 would enhance HUD's FSS Program and furthers the 
strategic goal to use housing as a platform to improve quality 
of life of and helping HUD-assisted renters increase their 
economic security and self-sufficiency. Enacting the reforms in 
H.R. 4258 will promote the development of local strategies to 
coordinate the use of housing assistance with public and 
private resources to enable participating families to increase 
earned income and financial literacy, reduce or eliminate the 
need for welfare assistance, and make progress toward economic 
independence.

                                Hearings

    The Committee on Financial Services' Subcommittee on 
Housing and Insurance held a hearing examining matters relating 
to H.R. 4258 on September 27, 2017.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
November 14, 2017, and ordered H.R. 4258 to be reported 
favorably to the House, without amendment, by a recorded vote 
of 58 yeas to 0 nays (Record vote no. FC-95), a quorum being 
present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
sole recorded vote was on a motion by Chairman Hensarling to 
report the bill favorably to the House without amendment. The 
motion was agreed to by a recorded vote of 58 yeas to 0 nays 
(Record vote no. FC-95), a quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, December 11, 2017.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4258, the Family 
Self-Sufficiency Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Elizabeth 
Cove Delisle.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 4258--Family Self-Sufficiency Act

    Summary: H.R. 4258 would allow owners of properties that 
participate in the Project-Based Rental Assistance (PBRA) 
program to make the Family Self-Sufficiency (FSS) program 
available to their tenants. The bill also would remove a limit 
on the amounts that can be deposited into escrow accounts for 
some FSS participants. CBO estimates that implementing H.R. 
4258 would cost $13 million over the 2018-2022 period, assuming 
appropriation of the necessary amounts.
    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 4258 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    H.R. 4258 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 4258 is shown in the following table. 
The costs of this legislation fall within budget function 600 
(income security).

 
------------------------------------------------------------------------
                                By fiscal year, in millions of dollars--
                              ------------------------------------------
                                2018   2019   2020   2021   2022   2022
------------------------------------------------------------------------
             INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Escrow Accounts for PBRA
 Households:
    Estimated Authorization        0      0      *      *      *       1
     Level...................
    Estimated Outlays........      0      0      *      *      *       1
Coordinator Awards:
    Estimated Authorization        0      0      *      1      1       3
     Level...................
    Estimated Outlays........      0      0      0      *      1       1
Eliminate Phase-Out of
 Escrow:
    Estimated Authorization        0      2      3      3      3      11
     Level...................
    Estimated Outlays........      0      2      3      3      3      11
    Total Changes:
        Estimated                  0      2      3      4      5      14
         Authorization Level.
        Estimated Outlays....      0      2      3      4      4      13
------------------------------------------------------------------------
Components may not sum to totals because of rounding; PBRA = Public
  Housing Authorities; * = between zero and $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted around the end of 2018 and will become 
effective about a year later.
    The FSS program provides federal support for participants 
who agree to work toward leaving assisted housing by increasing 
their earned income. Coordinators for the FSS program connect 
households receiving assistance with the providers of services 
such as education, child care, and job training. Households 
receiving assistance usually pay 30 percent of their adjusted 
income toward rent; in the FSS program, any changes in rent 
that result from participants' increased income are credited to 
an escrow account that tenants receive when they successfully 
complete the program. For households that do not participate in 
FSS, the cost to the Department of Housing and Urban 
Development of providing housing assistance decreases as a 
household's income increases; for graduates of FSS, that cost 
remains the same.
    The Continuing Appropriations Act, 2018, and Supplemental 
Appropriations for Disaster Relief Requirements Act, 2017 
(Public Law 115-56) authorizes property owners that participate 
in PBRA to make the FSS program available to their tenants 
through 2018. H.R. 4258 would permanently authorize property 
owners to offer the program by entering into agreements with 
public housing authorities (PHAs) that already operate such a 
program, or by creating their own FSS program. The bill also 
would make PHAs that enroll participants from project-based 
properties eligible to receive funds to pay program 
coordinators.
    Using information on the number of participants from PBRA 
properties and the graduation rates of participants, CBO 
expects that participation would increase from about 400 adults 
in 2020 to about 1,200 in 2022 and that about 6 percent of 
those participants would graduate each year. CBO estimates that 
the average escrow balance of graduates will be about $6,000; 
therefore, CBO estimates that the cost to disburse the escrow 
for FSS graduates would total $1 million over the 2018-2022 
period.
    Based on the historical rate of annual spending per 
participant for FSS coordinators, CBO estimates that the cost 
to pay coordinators for assisting the additional participants 
would total $1 million over the 2018-2022 period.
    The bill also would remove a limit on how much can be 
deposited into escrow for families with income between 50 
percent and 80 percent of the area median income (AMI), 
including households assisted by the public housing and tenant-
based assistance programs. Under current law, rent increases 
that are deposited to escrow are phased out as the household's 
income increases as a percent of AMI. Using data on the incomes 
of FSS participants and the escrow balances of graduates, CBO 
estimates that the provision would cost $11 million over the 
2018-2022 period.
    Pay-as-You-Go considerations: None.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting H.R. 4258 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    Mandates: H.R. 4258 contains no intergovernmental or 
private-sector mandates as defined in UMRA. The bill would 
place new requirements on state, local, and tribal entities 
that administer housing assistance programs, but those 
requirements would be conditions of participating in a 
voluntary federal program or other conditions of assistance.
    Estimate prepared by: Federal Costs: Elizabeth Cove 
Delisle; Mandates: Rachel Austin.
    Estimate approved by: H. Samuel Papenfuss; Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995.
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, (115th Congress), 
the following statement is made concerning directed 
rulemakings: The Committee estimates that the bill requires no 
directed rulemakings within the meaning of such section.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 4258 as the ``Family Self-
Sufficiency Act''.

Section 2. Family self-sufficiency program

    This section amends Section 23 of the U.S. Housing Act of 
1937 to include participants receiving housing assistance under 
section 8 and section 9 for the purposes of administering one 
Family Self-Sufficiency Program.
    Instructs each public housing agency that was required to 
administer a local FSS program, prior to this Act, to operate 
its program for at least the number of families the agency was 
required to serve on the date of enactment of this Act. The 
Secretary shall not require a public housing agency to carry 
out a mandatory program upon request of the public housing 
agency and upon a determination by the Secretary that 
implementation is not feasible because of local circumstances.
    A public housing agency administering housing assistance to 
or on behalf of an eligible family under section 8 or section 9 
and the owner or sponsor of a multi-family property receiving 
project-based rental assistance under section 8 are eligible to 
administer a local Family Self-Sufficiency program.
    Amends eligible supportive services for FSS participants to 
include attainment of a high school equivalency certificate, 
education in pursuit of a post-secondary degree or 
certification, training in financial literacy, and 
homeownership education and assistance. FSS contract 
participation shall require 1 household member of the 
participating family to seek and maintain suitable employment. 
Adds a new paragraph that states assistance under section 8 or 
section 9 for a family that elects not to participate in the 
Family Self-Sufficiency program shall not be delayed because 
the family elected not to participate.
    For each FSS participating family, an amount equal to any 
increase in the amount of rent paid by the family that is 
attributable to increases in their earned income shall be 
placed in an interest-bearing escrow account established by the 
eligible entity on behalf of the participating family. The 
eligible entity may use funds it controls under section 8 and 
section 9 for purposes of making the escrow deposit for 
participating family, provided such funds are offset by the 
increase in the amount of rent paid by the participating 
family. Stipulates that all Family Self-Sufficiency programs 
shall include an escrow account. Any amount placed in an escrow 
account established by an eligible entity for a participating 
family that exists after the end of a contract of participation 
that does not qualify to receive the escrow shall be used by 
the eligible entity for the benefit of participating families 
in good standing.
    Clarifies the membership of the FSS program's coordinating 
committee. Clarifies that each PHA, when developing their FSS 
action plan, must consult with certain local entities affected 
by the operation of their FSS program. Clarifies the contents 
of each PHA's individual FSS action plan.
    Requires the HUD Secretary to establish a formula by which 
annual FSS funds will be awarded for the costs incurred by an 
eligible entity administering the program. Gives the HUD 
Secretary the discretion to reserve up to 5 percent of FSS 
funds appropriated to award innovation and high performing FSS 
programs.
    Allows the owner of a privately-owned property to 
voluntarily make an FSS program available to tenants, in 
accordance with procedures established by the HUD Secretary. 
Such procedures shall permit the owner to enter into a 
cooperative agreement with a local public housing agency that 
administers an FSS program, or, at the owner's option, operate 
an FSS program on its own.
    Not later than 360 days after the date of enactment of this 
Act, the HUD Secretary shall issue notice or regulations to 
implement this Act.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                   UNITED STATES HOUSING ACT OF 1937


TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING

           *       *       *       *       *       *       *


SEC. 23. FAMILY SELF-SUFFICIENCY PROGRAM.

  (a) Purpose.--The purpose of the Family Self-Sufficiency 
program established under this section is to promote the 
development of local strategies to coordinate use of [public 
housing and] assistance under [the certificate and voucher 
programs under section 8] sections 8 and 9 with public and 
private resources, to enable eligible families to achieve 
economic independence and self-sufficiency.
  [(b) Establishment of Program.--
          [(1) Required programs.--Except as provided in 
        paragraph (2), the Secretary shall carry out a program 
        under which each public housing agency that administers 
        assistance under subsection (b) or (o) of section 8 or 
        makes available new public housing dwelling units--
                  [(A) may, during fiscal years 1991 and 1992, 
                carry out a local Family Self-Sufficiency 
                program under this section;
                  [(B) effective on October 1, 1992, the 
                Secretary shall require each such agency to 
                carry out a local Family Self-Sufficiency 
                program under this section, subject to the 
                limitations in paragraph (4); and
                  [(C) effective on the date of the enactment 
                of the Quality Housing and Work Responsibility 
                Act of 1998, to the extent an agency is not 
                required to carry out a program pursuant to 
                subparagraph (B) of this paragraph and 
                paragraph (4), may carry out a local Family 
                Self-Sufficiency program under this section.
        Subject to paragraph (4), each local program shall, 
        subject to availability of supportive services, include 
        an action plan under subsection (g) and shall provide 
        comprehensive supportive services for families electing 
        to participate in the program. In carrying out the 
        self-sufficiency program under this section, the 
        Secretary shall consult with the heads of other 
        appropriate Federal agencies and provide for 
        cooperative actions and funding agreements with such 
        agencies. Each public housing agency administering an 
        approved local program may employ a service coordinator 
        to administer the local program.
          [(2) Exception.--The Secretary shall not require a 
        public housing agency to carry out a local program 
        under subsection (a) if the public housing agency 
        provides certification (as such term is defined under 
        title I of the Cranston-Gonzalez National Affordable 
        Housing Act) to the Secretary, that the establishment 
        and operation of the program is not feasible because of 
        local circumstances, which may include--
                  [(A) lack of supportive services accessible 
                to eligible families, which shall include 
                insufficient availability of resources for 
                programs under title I of the Workforce 
                Innovation and Opportunity Act or the Job 
                Opportunities and Basic Skills Training Program 
                under part F of title IV of the Social Security 
                Act;
                  [(B) lack of funding for reasonable 
                administrative costs;
                  [(C) lack of cooperation by other units of 
                State or local government; or
                  [(D) any other circumstances that the 
                Secretary may consider appropriate.
        In allocating assistance available for reservation 
        under this Act, the Secretary may not refuse to provide 
        assistance or decrease the amount of assistance that 
        would otherwise be provided to any public housing 
        agency because the agency has provided a certification 
        under this paragraph or because, pursuant to a 
        certification, the agency has failed to carry out a 
        self-sufficiency program.
          [(3) Scope.--Subject to paragraph (4), each public 
        housing agency required to carry out a local program 
        under this section shall make the following housing 
        assistance available under the program in each fiscal 
        year:
                  [(A) Certificate and voucher assistance under 
                section 8(b) and (o), in an amount equivalent 
                to the increase for such year in the number of 
                families so assisted by the agency (as compared 
                to the preceding year).
                  [(B) Public housing dwelling units, in the 
                number equal to the increase for such year in 
                units made available by the agency (as compared 
                to the preceding year).Each such public housing 
                agency shall continue to operate a local 
                program for the number of families determined 
                under this paragraph subject only to the 
                availability under appropriations Acts of 
                sufficient amounts for assistance.
          [(4) Termination of requirement to expand program.--
                  [(A) In general.--Notwithstanding any other 
                provision of law, a public housing agency that 
                receives incremental assistance under 
                subsection (b) or (o) of section 8 or that 
                makes available new public housing dwelling 
                units shall not be required, after the 
                enactment of the Quality Housing and Work 
                Responsibility Act of 1998, to provide 
                assistance under a local Family Self-
                Sufficiency program under this section to any 
                families not required to be assisted under 
                subparagraph (B) of this paragraph.
                  [(B) Continuation of existing obligations.--
                          [(i) In general.--Each public housing 
                        agency that, before the enactment of 
                        the Quality Housing and Work 
                        Responsibility Act of 1998, was 
                        required under this section to carry 
                        out a local Family Self-Sufficiency 
                        program shall continue to operate such 
                        local program for the number of 
                        families determined under paragraph 
                        (3), subject only to the availability 
                        under appropriations Acts of sufficient 
                        amounts for housing assistance.
                          [(ii) Reduction.--The number of 
                        families for which an agency is 
                        required under clause (i) to operate 
                        such local program shall be decreased 
                        by one for each family that, after 
                        enactment of the Quality Housing and 
                        Work Responsibility Act of 1998, 
                        fulfills its obligations under the 
                        contract of participation.
          [(5) Nonparticipation.--Assistance under the 
        certificate or voucher programs under section 8 for a 
        family that elects not to participate in a local 
        program shall not be delayed by reason of such 
        election.]
  (b) Continuation of Prior Required Programs.--
          (1) In general.--Each public housing agency that was 
        required to administer a local Family Self-Sufficiency 
        program on the date of enactment of the Family Self-
        Sufficiency Act, shall operate such local program for, 
        at a minimum, the number of families the agency was 
        required to serve on the date of enactment of such Act, 
        subject only to the availability under appropriations 
        Acts of sufficient amounts for housing assistance and 
        the requirements of paragraph (2).
          (2) Reduction.--The number of families for which a 
        public housing agency is required to operate such local 
        program under paragraph (1) shall be decreased by one 
        for each family from any supported rental housing 
        program administered by such agency that, after October 
        21, 1998, fulfills its obligations under the contract 
        of participation.
          (3) Exception.--The Secretary shall not require a 
        public housing agency to carry out a mandatory program 
        for a period of time upon the request of the public 
        housing agency and upon a determination by the 
        Secretary that implementation is not feasible because 
        of local circumstances, which may include--
                  (A) lack of supportive services accessible to 
                eligible families, which shall include 
                insufficient availability of resources for 
                programs under title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801 et 
                seq.);
                  (B) lack of funding for reasonable 
                administrative costs;
                  (C) lack of cooperation by other units of 
                State or local government; or
                  (D) any other circumstances that the 
                Secretary may consider appropriate.
  (c) Eligibility.--
          (1) Eligible families.--A family is eligible to 
        participate in a local Family Self-Sufficiency program 
        under this section if--
                  (A) at least 1 household member seeks to 
                become and remain employed in suitable 
                employment or to increase earnings; and
                  (B) the household member receives direct 
                assistance under section 8 or resides in a unit 
                assisted under section 8 or 9.
          (2) Eligible entities.--The following entities are 
        eligible to administer a local Family Self-Sufficiency 
        program under this section:
                  (A) A public housing agency administering 
                housing assistance to or on behalf of an 
                eligible family under section 8 or 9.
                  (B) The owner or sponsor of a multifamily 
                property receiving project-based rental 
                assistance under section 8, in accordance with 
                the requirements under subsection (l).
  [(c)] (d) Contract of Participation.--
          (1) In general.--Each [public housing agency] 
        eligible entity carrying out a local program under this 
        section shall enter into a contract with [each 
        leaseholder receiving assistance under the certificate 
        and voucher programs of the public housing agency under 
        section 8 or residing in public housing administered by 
        the agency] a household member of an eligible family, 
        that elects to participate in the self-sufficiency 
        program under this section. The contract shall set 
        forth the provisions of the local program, shall 
        establish specific interim and final goals by which 
        compliance with and performance of the contract may be 
        measured, and shall specify the resources and 
        supportive services to be made available to the 
        participating family pursuant to paragraph (2) and the 
        responsibilities of the participating family. [The 
        contract shall provide that the public housing agency 
        may terminate or withhold assistance under section 8 
        and services under paragraph (2) of this subsection if 
        the public housing agency determines, through an 
        administrative grievance procedure in accordance with 
        the requirements of section 6(k), that the family has 
        failed to comply with the requirements of the contract 
        without good cause (which may include a loss or 
        reduction in access to supportive services, or a change 
        in circumstances that makes the family or individual 
        unsuitable for participation).] Housing assistance may 
        not be terminated as a consequence of either successful 
        completion of the contract of participation or failure 
        to complete such contract. A contract of participation 
        shall remain in effect until the participating family 
        exits the Family Self-Sufficiency program upon 
        successful graduation or expiration of the contract of 
        participation, or for other good cause.
          (2) Supportive services.--[A local program under this 
        section] An eligible entity shall [provide] coordinate 
        appropriate supportive services under this paragraph 
        [to] for each participating family entering into a 
        contract of participation under paragraph (1). The 
        supportive services shall be [provided during] 
        coordinated for the period the family is receiving 
        assistance [under section 8 or residing in public 
        housing] pursuant to section 8 or 9 and for the 
        duration of the contract of participation, and may 
        include, but are not limited to--
                  (A) child care;
                  (B) transportation necessary to receive 
                services;
                  (C) remedial education;
                  (D) education for completion of high school 
                or attainment of a high school equivalency 
                certificate;
                  (E) education in pursuit of a post-secondary 
                degree or certification;
                  [(E)] (F) job training and preparation;
                  [(F)] (G) substance abuse treatment and 
                counseling;
                  [(G) training in homemaking and parenting 
                skills;]
                  (H) training in financial literacy, such as 
                training in financial management, financial 
                coaching, and asset building, and money 
                management;
                  (I) training in household management; [and]
                  (J) homeownership education and assistance; 
                and
                  [(J)] (K) any other services and resources 
                appropriate to assist eligible families to 
                achieve economic independence and self-
                sufficiency.
          (3) Term and extension.--Each family participating in 
        a local program shall be required to fulfill its 
        obligations under the contract of participation not 
        later than 5 years after the first recertification of 
        income after entering into the contract. The [public 
        housing agency] eligible entity shall extend the term 
        of the contract for any family that requests an 
        extension, upon a finding [of the agency] of good 
        cause.
          [(4) Employment and counseling.--The contract of 
        participation shall require the head of the 
        participating family to seek suitable employment during 
        the term of the contract. The public housing agency 
        may, during such period, provide counseling for the 
        family with respect to affordable rental and 
        homeownership opportunities in the private housing 
        market and money management counseling.]
          (4) Employment.--The contract of participation shall 
        require 1 household member of the participating family 
        to seek and maintain suitable employment.
          (5) Nonparticipation.--Assistance under section 8 or 
        9 for a family that elects not to participate in a 
        Family Self-Sufficiency program shall not be delayed by 
        reason of such election.
  [(d)] (e) Incentives for Participation.--
          (1) Maximum rents.--During the term of the contract 
        of participation, the amount of rent paid by any 
        participating family [whose monthly adjusted income 
        does not exceed 50 percent of the area median income 
        for occupancy in the public housing unit or dwelling 
        unit assisted under section 8 may not be increased on 
        the basis of any increase in the earned income of the 
        family, unless the increase results in an income 
        exceeding 50 percent of the area median income. The 
        Secretary shall provide for increased rents for 
        participating families whose incomes are between 50 and 
        80 percent of the area median income, so that any 
        family whose income increases to 80 percent or more of 
        the area median income pays 30 percent of the family's 
        monthly adjusted income for rent. Upon completion of 
        the contract of participation, if the participating 
        family continues to qualify for and reside in a 
        dwelling unit in public housing or housing assisted 
        under section 8, the rent charged the participating 
        family shall be increased (if applicable) to 30 percent 
        of the monthly adjusted income of the family.] shall be 
        calculated under the rental provisions 2 of section 3 
        or section 8(o), as applicable.
          (2) Escrow savings accounts.--[For each participating 
        family whose monthly adjusted income is less than 50 
        percent of the area median income, the difference 
        between 30 percent of the adjusted income of the 
        participating family and the amount of rent paid by a 
        participating family shall be placed in an interest-
        bearing escrow account established by the public 
        housing agency on behalf of the participating family. 
        For families with incomes between 50 and 80 percent of 
        the area median income, the Secretary shall provide for 
        escrow of the difference between 30 percent of the 
        family income and the amount paid by the family for 
        rent as determined by the Secretary under paragraph 
        (1).] For each participating family, an amount equal to 
        any increase in the amount of rent paid by the family 
        in accordance with the provisions of section 3 or 8(o), 
        as applicable, that is attributable to increases in 
        earned income by the participating family, shall be 
        placed in an interest-bearing escrow account 
        established by the eligible entity on behalf of the 
        participating family. Notwithstanding any other 
        provision of law, an eligible entity may use funds it 
        controls under section 8 or 9 for purposes of making 
        the escrow deposit for participating families assisted 
        under, or residing in units assisted under, section 8 
        or 9, respectively, provided such funds are offset by 
        the increase in the amount of rent paid by the 
        participating family. All Family Self-Sufficiency 
        programs administered under this section shall include 
        an escrow account. The Secretary shall not escrow any 
        amounts for any family whose adjusted income exceeds 80 
        percent of the area median income. Amounts in the 
        escrow account may be withdrawn by the participating 
        family after the family ceases to receive income 
        assistance under Federal or State welfare programs, 
        upon successful performance of the obligations of the 
        family under the contract of participation entered into 
        by the family under [subsection (c)] subsection (d), as 
        determined according to the specific goals and terms 
        included in the contract, and under other circumstances 
        in which the Secretary determines an exception for good 
        cause is warranted. [A public housing agency] An 
        eligible entity establishing such escrow accounts may 
        make certain amounts in the accounts available to the 
        participating families before full performance of the 
        contract obligations based on compliance with, and 
        completion of, specific interim goals included in the 
        contract; except that any such amounts shall be used by 
        the participating families for purposes consistent with 
        the contracts of participation, as determined by [the 
        public housing agency] such eligible entity.
          [(3) Plan.--Each public housing agency carrying out a 
        local program under this section shall establish a plan 
        to offer incentives to families to encourage families 
        to participate in the program. The plan shall require 
        the establishment of escrow savings accounts under 
        paragraph (2) and may include any other incentives 
        designed by the public housing agency.]
          (3) Forfeited escrow.--Any amount placed in an escrow 
        account established by an eligible entity for a 
        participating family as required under paragraph (2), 
        that exists after the end of a contract of 
        participation by a household member of a participating 
        family that does not qualify to receive the escrow, 
        shall be used by the eligible entity for the benefit of 
        participating families in good standing.
  [(e)] (f) Effect of Increases in Family Income.--Any increase 
in the earned income of a family during the participation of 
the family in a local program established under this section 
may not be considered as income or a resource for purposes of 
eligibility of the family for other benefits, or amount of 
benefits payable to the family, under any program administered 
by the Secretary[, unless the income of the family equals or 
exceeds 80 percent of the median income of the area (as 
determined by the Secretary with adjustments for smaller and 
larger families)].
  [(f)] (g) Program Coordinating Committee.--
          (1) Functions.--Each [public housing agency] eligible 
        entity carrying out a local program under this section 
        shall, in consultation with the chief executive officer 
        of the unit of general local government, develop an 
        action plan under [subsection (g)] subsection (h), 
        carry out activities under the local program, and 
        secure commitments of public and private resources 
        through a program coordinating committee established by 
        [the public housing agency] such eligible entity under 
        this subsection.
          (2) Membership.--The program coordinating committee 
        may consist of representatives of the [public housing 
        agency] eligible entity, the unit of general local 
        government, the local agencies (if any) responsible for 
        carrying out programs under title I of the Workforce 
        Innovation and Opportunity Act [or the Job 
        Opportunities and Basic Skills Training Program under 
        part F of title IV of the Social Security Act], and 
        other organizations, such as other State and local 
        welfare and employment agencies, public and private 
        primary, secondary, and post-secondary education or 
        training institutions, nonprofit service providers, and 
        private businesses. The [public housing agency] 
        eligible entity may, in consultation with the chief 
        executive officer of the unit of general local 
        government and tenants served by the program, utilize 
        an existing entity as the program coordinating 
        committee if it meets the requirements of this 
        subsection.
  [(g)] (h) Action Plan.--
          (1) Required submission.--The Secretary shall require 
        each [public housing agency participating in the] 
        eligible entity carrying out a self-sufficiency program 
        under this section to submit [to the Secretary], for 
        approval by the Secretary, an action plan under this 
        subsection in such form and in accordance with such 
        procedures as the Secretary shall require.
          (2) Development of plan.--In developing the plan, the 
        [public housing agency] eligible entity shall consult 
        with the chief executive officer of the applicable unit 
        of general local government, the program coordinating 
        committee established under [subsection (f)] subsection 
        (g), representatives of [residents of the public 
        housing] the current and prospective participants of 
        the program, any local agencies responsible for 
        programs under title I of the Workforce Innovation and 
        Opportunity Act [or the Job Opportunities and Basic 
        Skills Training Program under part F of title IV of the 
        Social Security Act], other appropriate organizations 
        (such as other State and local welfare and employment 
        or training institutions, child care providers, 
        nonprofit service providers, and private businesses), 
        and any other public and private service providers 
        affected by the operation of the local program.
          (3) Contents of plan.--The Secretary shall require 
        that the action plan contain at a minimum--
                  (A) a description of the size, 
                characteristics, and needs of the population of 
                the families expected to participate in the 
                local self-sufficiency program;
                  (B) a description of the number of eligible 
                participating families who can reasonably be 
                expected to receive supportive services under 
                the program, based on available and anticipated 
                Federal, State, local, and private resources;
                  (C) a description of the services and 
                activities under [subsection (c)(2)] subsection 
                (d)(2) to be [provided to] coordinated on 
                behalf of participating families receiving 
                direct assistance under this section through 
                [the section 8 and public housing programs] 
                sections 8 and 9, which shall be provided by 
                both public and private resources;
                  (D) a description of the incentives pursuant 
                to [subsection (d)] subsection (e) offered by 
                the [public housing agency] eligible entity to 
                families to encourage participation in the 
                program;
                  (E) a description of how the local program 
                will [deliver] coordinate services and 
                activities according to the needs of the 
                families participating in the program;
                  (F) a description of both the public and 
                private resources that are expected to be made 
                available to provide the activities and 
                services under the local program;
                  (G) a timetable for implementation of the 
                local program;
                  (H) assurances satisfactory to the Secretary 
                that development of the services and activities 
                under the local program has been coordinated 
                with [the Job Opportunities and Basic Skills 
                Training Program under part F of title IV of 
                the Social Security Act and] programs under 
                title I of the Workforce Innovation and 
                Opportunity Act and any other relevant 
                employment, child care, transportation, 
                training, and education programs in the 
                applicable area, and that implementation will 
                continue to be coordinated, in order to avoid 
                duplication of services and activities; and
                  (I) assurances satisfactory to the Secretary 
                that nonparticipating families will retain 
                their rights to [public housing or section 8 
                assistance] assistance under section 8 or 9 
                notwithstanding the provisions of this section.
  [(h) Allowable Public Housing Agency Administrative Fees and 
Costs.--
          [(1) Section 8 fees.--The Secretary shall establish a 
        fee under section 8(q) for the costs incurred in 
        administering the provision of certificate and voucher 
        assistance under section 8 through the self-sufficiency 
        program under this section. The fee shall be the fee in 
        effect under such section on June 1, 1990, except that 
        for purposes of the fee under this paragraph the 
        applicable dollar amount for preliminary expenses under 
        section 8(q)(2)(A)(i) shall, subject to approval in 
        appropriations Acts, be $300. Upon the submission by 
        the Comptroller General of the United States of the 
        report required under section 554(b) of the Cranston-
        Gonzalez National Affordable Housing Act, the Secretary 
        shall revise the fee under this paragraph, taking into 
        consideration the report of the Comptroller General.
          [(2) Performance funding system.--Notwithstanding any 
        provision of section 9, the Secretary shall provide for 
        inclusion under the performance funding system under 
        section 9 of reasonable and eligible administrative 
        costs (including the costs of employing a full-time 
        service coordinator) incurred by public housing 
        agencies carrying out local programs under this 
        section. The Secretary shall include an estimate of the 
        administrative costs likely to be incurred by 
        participating public housing agencies in the annual 
        budget request for the Department of Housing and Urban 
        Development for public housing operating assistance 
        under section 9 and shall include a request for such 
        amounts in the budget request. Of any amounts 
        appropriated under section 9(c) for fiscal year 1993, 
        $25,000,000 is authorized to be used for costs under 
        this paragraph, and of any amounts appropriated under 
        such section for fiscal year 1994, $25,900,000 is 
        authorized to be used for costs under this paragraph.
  [(i) Public Housing Agency Incentive Award Allocation.--
          [(1) In general.--The Secretary shall carry out a 
        competition for budget authority for certificate and 
        voucher assistance under section 8 and public housing 
        development assistance under section 5(a)(2) reserved 
        under paragraph (4) and shall allocate such budget 
        authority to public housing agencies pursuant to the 
        competition.
          [(2) Criteria.--The competition shall be based on 
        successful and outstanding implementation by public 
        housing agencies of a local self-sufficiency program 
        under this section. The Secretary shall establish 
        perfomance criteria for public housing agencies 
        carrying out such local programs and the Secretary 
        shall cause such criteria to be published in the 
        Federal Register.
          [(3) Use.--Each public housing agency that receives 
        an allocation of budget authority under this subsection 
        shall use such authority to provide assistance under 
        the local self-sufficiency program established by the 
        public housing agency under this section.
          [(4) Reservation of budget authority.--
        Notwithstanding section 213(d) of the Housing and 
        Community Development Act of 1974, the Secretary shall 
        reserve for allocation under this subsection not less 
        than 10 percent of the portion of budget authority 
        appropriated in each of fiscal years 1991 and 1992 for 
        section 8 that is available for purposes of providing 
        assistance under the existing housing certificate and 
        housing voucher programs for families not currently 
        receiving assistance, and not less than 10 percent of 
        the public housing development assistance available in 
        such fiscal years for the purpose under section 5(a)(2) 
        (excluding amounts for major reconstruction of obsolete 
        projects).]
  (i) Family Self-Sufficiency Awards.--
          (1) In general.--Subject to appropriations, the 
        Secretary shall establish a formula by which annual 
        funds will be awarded or as otherwise determined by the 
        Secretary for the costs incurred by an eligible entity 
        in administering the self-sufficiency program under 
        this section.
          (2) Eligibility for awards.--The award established 
        under paragraph (1) shall provide funding for family 
        self-sufficiency coordinators as follows:
                  (A) Base award.--An eligible entity serving 
                25 or more participants in the Family Self-
                Sufficiency program under this section is 
                eligible to receive an award equal to the 
                costs, as determined by the Secretary, of 1 
                full-time family self-sufficiency coordinator 
                position. The Secretary may, by regulation or 
                notice, determine the policy concerning the 
                award for an eligible entity serving fewer than 
                25 such participants, including providing 
                prorated awards or allowing such entities to 
                combine their programs under this section for 
                purposes of employing a coordinator.
                  (B) Additional award.--An eligible entity 
                that meets performance standards set by the 
                Secretary is eligible to receive an additional 
                award sufficient to cover the costs of filling 
                an additional family self-sufficiency 
                coordinator position if such entity has 75 or 
                more participating families, and an additional 
                coordinator for each additional 50 
                participating families, or such other ratio as 
                may be established by the Secretary based on 
                the award allocation evaluation under 
                subparagraph (E).
                  (C) State and regional agencies.--For 
                purposes of calculating the award under this 
                paragraph, each administratively distinct part 
                of a State or regional eligible entity may be 
                treated as a separate agency.
                  (D) Determination of number of 
                coordinators.--In determining whether an 
                eligible entity meets a specific threshold for 
                funding pursuant to this paragraph, the 
                Secretary shall consider the number of 
                participants enrolled by the eligible entity in 
                its Family Self-Sufficiency program as well as 
                other criteria determined by the Secretary.
                  (E) Award allocation evaluation.--The 
                Secretary shall submit to Congress a report 
                evaluating the award allocation under this 
                subsection, and make recommendations based on 
                this evaluation and other related findings to 
                modify such allocation, within 4 years after 
                the date of enactment of the Family Self-
                Sufficiency Act, and not less frequently than 
                every 4 years thereafter. The report 
                requirement under this subparagraph shall 
                terminate after the Secretary has submitted two 
                such reports to Congress.
          (3) Renewals and allocation.--
                  (A) In general.--Funds allocated by the 
                Secretary under this subsection shall be 
                allocated in the following order of priority:
                          (i) First priority.--Renewal of the 
                        full cost of all coordinators in the 
                        previous year at each eligible entity 
                        with an existing Family Self-
                        Sufficiency program that meets 
                        applicable performance standards set by 
                        the Secretary.
                          (ii) Second priority.--New or 
                        incremental coordinator funding 
                        authorized under this section.
                  (B) Guidance.--If the first priority, as 
                described in subparagraph (A)(i), cannot be 
                fully satisfied, the Secretary may prorate the 
                funding for each eligible entity, as long as--
                          (i) each eligible entity 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 eligible entity 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.
          (4) Recapture or offset.--Any awards allocated under 
        this subsection by the Secretary in a fiscal year that 
        have not been spent by the end of the subsequent fiscal 
        year or such other time period as determined by the 
        Secretary may be recaptured by the Secretary and shall 
        be available for providing additional awards pursuant 
        to paragraph (2)(B), or may be offset as determined by 
        the Secretary. Funds appropriated pursuant to this 
        section shall remain available for 3 years in order to 
        facilitate the re-use of any recaptured funds for this 
        purpose.
          (5) Performance reporting.--Programs under this 
        section shall be required to report the number of 
        families enrolled and graduated, the number of 
        established escrow accounts and positive escrow 
        balances, and any other information that the Secretary 
        may require. Program performance shall be reviewed 
        periodically as determined by the Secretary.
          (6) Incentives for innovation and high performance.--
        The Secretary may reserve up to 5 percent of the 
        amounts made available under this subsection to provide 
        support to or reward Family Self-Sufficiency programs 
        based on the rate of successful completion, increased 
        earned income, or other factors as may be established 
        by the Secretary.
  (j) On-Site Facilities.--Each [public housing agency] 
eligible entity carrying out a local program may, subject to 
the approval of the Secretary, make available and utilize 
common areas or unoccupied [public housing] units [in public 
housing projects administered by the agency] for the provision 
or coordination of supportive services under the local program. 
[The use of the facilities of a public housing agency under 
this subsection shall not affect the amount of assistance 
provided to the agency under section 9.]
  (k) Flexibility.--In establishing and carrying out the self-
sufficiency program under this section, the Secretary shall 
allow [public housing agencies] eligible entities, units of 
general local government, and other organizations discretion 
and flexibility, to the extent practicable, in developing and 
carrying out local programs.
  (l) Programs for Tenants in Privately Owned Properties With 
Project-Based Assistance.--
          (1) Voluntary availability of fss program.--The owner 
        of a privately owned property may voluntarily make a 
        Family Self-Sufficiency program available to the 
        tenants of such property in accordance with procedures 
        established by the Secretary. Such procedures shall 
        permit the owner to enter into a cooperative agreement 
        with a local public housing agency that administers a 
        Family Self-Sufficiency program or, at the owner's 
        option, operate a Family Self-Sufficiency program on 
        its own or in partnership with another owner. An owner, 
        who voluntarily makes a Family Self-Sufficiency program 
        available pursuant to this subsection, may access 
        funding from any residual receipt accounts for the 
        property to hire a family self-sufficiency coordinator 
        or coordinators for their program.
          (2) Cooperative agreement.--Any cooperative agreement 
        entered into pursuant to paragraph (1) shall require 
        the public housing agency to open its Family Self-
        Sufficiency program waiting list to any eligible family 
        residing in the owner's property who resides in a unit 
        assisted under project-based rental assistance.
          (3) Treatment of families assisted under this 
        subsection.--A public housing agency that enters into a 
        cooperative agreement pursuant to paragraph (1) may 
        count any family participating in its Family Self-
        Sufficiency program as a result of such agreement as 
        part of the calculation of the award under subsection 
        (i).
          (4) Escrow.--
                  (A) Cooperative agreement.--A cooperative 
                agreement entered into pursuant to paragraph 
                (1) shall provide for the calculation and 
                tracking of the escrow for participating 
                residents and for the owner to make available, 
                upon request of the public housing agency, 
                escrow for participating residents, in 
                accordance with paragraphs (2) and (3) of 
                subsection (e), residing in units assisted 
                under section 8.
                  (B) Calculation and tracking by owner.--The 
                owner of a privately owned property who 
                voluntarily makes a Family Self-Sufficiency 
                program available pursuant to paragraph (1) 
                shall calculate and track the escrow for 
                participating residents and make escrow for 
                participating residents available in accordance 
                with paragraphs (2) and (3) of subsection (e).
          (5) Exception.--This subsection shall not apply to 
        properties assisted under section 8(o)(13).
          (6) Suspension of enrollment.--In any year, the 
        Secretary may suspend the enrollment of new families in 
        Family Self-Sufficiency programs under this subsection 
        based on a determination that insufficient funding is 
        available for this purpose.
  [(l)] (m) Reports.--
          (1) To secretary.--[Each public housing agency] Each 
        eligible entity that carries out a local self-
        sufficiency program approved by the Secretary under 
        this section shall submit to the Secretary, not less 
        than annually a report regarding the program. [The 
        report shall include] The contents of the report shall 
        include--
                  (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;
                  (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 of the [public 
                housing agency] eligible entity or the 
                appropriate [local] program coordinating 
                committee for legislative or administrative 
                action that would improve the self-sufficiency 
                program carried out by the Secretary and ensure 
                the effectiveness of the program.
          (2) HUD annual report.--The Secretary shall submit to 
        the Congress annually, as a part of the report of the 
        Secretary under section 8 of the Department of Housing 
        and Urban Development Act, a report summarizing the 
        information submitted by public housing agencies under 
        paragraph (1) and describing any additional research 
        needs of the Secretary to evaluate the effectiveness of 
        the program. The report under this paragraph shall also 
        include any recommendations of the Secretary for 
        improving the effectiveness of the self-sufficiency 
        program under this section.
  [(m)] (n) GAO Report.--The Comptroller General of the United 
States [may] shall submit to the Congress reports under this 
subsection evaluating and describing the Family Self-
Sufficiency program carried out by the Secretary under this 
section.
  [(n) Definitions.--As used in this section:
          [(1) The term ``contract of participation'' means a 
        contract under subsection (c) entered into by a public 
        housing agency carrying out a local program under this 
        section and a participating family.
          [(2) The term ``earned income'' means income from 
        wages, tips, salaries, and other employee compensation, 
        and any earnings from self-employment. The term does 
        not include any pension or annuity, transfer payments, 
        or any cash or in-kind benefits.
          [(3) The term ``eligible family'' means a family 
        whose head of household is not elderly, disabled, 
        pregnant, a primary caregiver for children under the 
        age of 3, or for whom the family self-sufficiency 
        program would otherwise be unsuitable. Notwithstanding 
        the preceding sentence, a public housing agency may 
        enroll such families if they choose to participate in 
        the program.
          [(4) The term ``local program'' means a program for 
        providing supportive services to participating families 
        carried out by a public housing agency within the 
        jurisdiction of the public housing agency.
          [(5) The term ``participating family'' means a family 
        that resides in public housing or housing assisted 
        under section 8 and elects to participate in a local 
        self-sufficiency program under this section.
          [(6) The term ``vacant unit'' means a dwelling unit 
        that has been vacant for not less than 9 consecutive 
        months.
  [(o) Effective Date and Regulations.--
          [(1) Regulations.--Not later than the expiration of 
        the 180-day period beginning on the date of the 
        enactment of the Cranston-Gonzalez National Affordable 
        Housing Act, the Secretary shall by notice establish 
        any requirements necessary to carry out this section. 
        Such requirements shall be subject to section 553 of 
        title 5, United States Code. The Secretary shall issue 
        final regulations based on the notice not later than 
        the expiration of the 8-month period beginning on the 
        date of the notice. Such regulations shall become 
        effective upon the expiration of the 1-year period 
        beginning on the date of the publication of the final 
        regulations.]
  (o) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' 
        means an entity that meets the requirements under 
        subsection (c)(2) to administer a Family Self-
        Sufficiency program under this section.
          (2) Eligible family.--The term ``eligible family'' 
        means a family that meets the requirements under 
        subsection (c)(1) to participate in the Family Self-
        Sufficiency program under this section.
          (3) Participating family.--The term ``participating 
        family'' means an eligible family that is participating 
        in the Family Self-Sufficiency program under this 
        section.

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