Program Effects and Lessons from the Family Self-Sufficiency Program Evaluation

• In Event: Employment and Financial Outcomes of Participants in Rental Assistance Programs

Abstract

This paper presents results from a national randomized controlled trial of the Family Self-Sufficiency (FSS) program, the U.S. Department of Housing and Urban Development’s flagship initiative to support the economic mobility of households receiving federal housing assistance. This evaluation is the first national impact assessment of the FSS program, which has been funded by Congress since the early 1990s and operated by over 700 housing agencies. FSS offers case coordination, employment and financial education-related services, and an escrow savings account to help participants make progress toward their economic self-sufficiency goals and build long-term savings. Eighteen housing agencies, selected to reflect the contexts in which the program operates, agreed to participate in the national evaluation. Combined, these programs enrolled a total of 2,656 households. The mixed-methods evaluation followed study participants for up to 7 years, beyond the full 5-year term of the program for most. It combined administrative records, repeated surveys, and interviews with program staff. The evaluation found that, relative to the control group, FSS markedly increased participation in employment services and financial management services but did not produce notable effects on a wide range of hypothesized outcomes. Both program and control groups shared similar trajectories on most outcomes, including employment, earnings, household income, indicators of material well-being, and housing subsidy receipt. Further, only a small proportion of FSS participants in the study graduated and received an escrow disbursement. As a result, a significant majority of those who accrued escrow savings forfeited them. The results from this comprehensive study underscore the need to reimagine the program and strengthen its implementation so it can serve as a platform to build and boost participants’ economic mobility.

Author

• nandita verma, MDRC
  Presenting Author