Helping More Families Save Act
The Helping More Families Save Act establishes a pilot program to expand the Family Self-Sufficiency (FSS) escrow program for low-income families receiving housing assistance. The bill allows up to 25 housing agencies to create interest-bearing escrow accounts for up to 5,000 families, where increased rent payments resulting from earned income gains are deposited rather than simply collected. Families can access these savings after 5-7 years or when they stop receiving welfare assistance, creating a financial cushion to help them achieve economic independence. This streamlined approach removes traditional FSS requirements like mandatory contracts and training plans, making it easier for families to participate and build savings while working toward self-sufficiency.
Key Points
- 1Creates escrow accounts that capture rent increases attributable to earned income growth, allowing families to save money that would otherwise go to increased rent payments
- 2Limits participation to 25 eligible housing entities serving up to 5,000 families total, with geographic and entity-type diversity required across urban/rural areas
- 3Allows families to withdraw funds after 5-7 years, when they stop receiving welfare, or earlier for approved self-sufficiency goals (like education or homeownership)
- 4Eliminates traditional FSS program requirements such as mandatory contracts and individual training plans, simplifying participation
- 5Requires a comprehensive study after 8 years to evaluate program effectiveness in promoting economic independence and the impact of supportive services