Pilot program would let low-income renters build savings as income rises

What does this do?

HR 4385 establishes a ten-year pilot program in which up to 25 housing agencies or private landlords run savings accounts for participating families. When a family earns more money and their rent rises as a result, the added rent amount is deposited into a savings account in the family's name rather than collected as rent. Families can withdraw the funds after five years, or earlier if they leave the housing program or use the money for an approved purpose such as education or starting a business.

Who does it affect?

The program targets low-income renters who use Section 8 housing vouchers or live in public housing and whose household income is below 80 percent of the area median income. Participation is voluntary, capped at 5,000 families across all selected agencies and landlords.

Why does it matter?

Extra income earned during the program cannot be counted against families when determining eligibility for other government benefits, and families may update their income information more than once a year so rent adjusts more quickly. A government report on whether the program improved financial independence is required, and families already enrolled in the Family Self-Sufficiency program cannot participate at the same time.

What does it cost, and who pays?

• Up to $5M total program cost
• Ten-year program duration
• Covers startup and evaluation