This bill creates a pilot program called the Escrow Expansion Pilot Program. The Secretary of Housing and Urban Development will choose up to 25 eligible entities to run the pilot for up to 5,000 families who receive rental assistance under section 8 or 9. Each selected entity must open interest-bearing escrow accounts. The entity will deposit into the account an amount equal to any increase in rent that is caused by a covered family’s rise in earned income while the family is in the pilot. The bill limits escrowed amounts to families with adjusted income at or below 80 percent of area median income. Families may not be in this pilot and the Family Self-Sufficiency program at the same time.
The bill sets timing rules: the Secretary must select entities within 18 months of enactment; entities must set up accounts within 6 months of selection; accounts must be kept at least 5 years and can continue to 7 years at a family’s choice. The pilot ends 10 years after enactment. The Secretary must study and report on outcomes within 8 years of selecting participants. The Secretary may waive certain requirements to run the pilot.
If your household gets help under section 8 or 9 and you join this pilot, increases in the rent you pay because you earn more will be placed into an interest-bearing escrow account instead of immediately reducing a savings effect. You can withdraw the funds (including interest) after you stop receiving welfare assistance and under several timing rules: generally not earlier than 5 years after the account is set up, and not later than 7 years if you continue participation; sooner if you leave housing assistance earlier; sooner if you use funds for an approved self-sufficiency goal; or for other good-cause exemptions the Secretary allows. Your housing assistance should not be delayed or denied if you choose not to join. You must receive notice about enrollment and can opt out at least two weeks before the account is opened or at any time during the pilot. You may recertify income multiple times per year, but at least once per year.
The bill authorizes $5,000,000 for fiscal year 2026 to HUD for technical assistance to implement the pilot and to evaluate it. Those amounts remain available until expended. The bill also allows eligible entities to use funds they control under section 8 or 9 to make escrow deposits for covered families, provided the deposits are offset by the increase in rent paid by the family. No publicly available information on total program cost or budget offsets beyond the authorized $5,000,000.
No publicly available information.
No publicly available information.