Commentary: Policy Changes to Better Enable Families to Realize Savings From the Family Self-Sufficiency Program

Barbara Sard
Housing Policy Consultant

The Family Self-Sufficiency (FSS) program provides a unique opportunity for families receiving HUD rental assistance to generate savings when increased earnings cause their rents to go up. Most families enrolling in the FSS program accumulate escrowed savings, but many never receive any benefit from these funds. This article focuses on policy changes by HUD, the U.S. Congress, and local program administrators that could enable more families to receive their savings. Together with previously adopted congressional and HUD policies and continued HUD training and oversight, the recommendations hold promise to improve family outcomes. However, the FSS program, as currently structured, is unlikely to expand sufficiently to enable a much larger proportion of HUD-assisted households to build assets. This article concludes with a possible alternative approach to incorporate an FSS-like savings mechanism into HUD’s rental assistance programs.