[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR984.303]



[Page 690-693]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 984_SECTION 8 AND PUBLIC HOUSING FAMILY SELF-SUFFICIENCY PROGRAM

--Table of Contents

 

                       Subpart C_Program Operation

 

Sec.  984.303  Contract of participation.



    (a) General. Each family that is selected to participate in an FSS 

program must enter into a contract of participation with the PHA that 

operates the FSS program in which the family will participate. The 

contract of participation shall be signed by the head of the FSS family.

    (b) Form and content of contract--(1) General. The contract of 

participation, which incorporates the individual training and services 

plan(s), shall be in the form prescribed by HUD, and shall set forth the 

principal terms and conditions governing participation in the FSS 

program, including the rights and responsibilities of the FSS family and 

of the PHA, the services to be provided to, and the activities to be 

completed by, the head of the FSS family and each adult member of the 

family who elects to participate in the program.



[[Page 691]]



    (2) Interim goals. The individual training and services plan, 

incorporated in the contract of participation, shall establish specific 

interim and final goals by which the PHA, and the family, may measure 

the family's progress toward fulfilling its obligations under the 

contract of participation, and becoming self-sufficient. For each 

participating FSS family that is a recipient of welfare assistance, the 

PHA must establish as an interim goal that the family become independent 

from welfare assistance and remain independent from welfare assistance 

at least one year before the expiration of the term of the contract of 

participation, including any extension thereof.

    (3) Compliance with lease terms. The contract of participation shall 

provide that one of the obligations of the FSS family is to comply with 

the terms and conditions of the respective public housing lease or 

Section 8-assisted lease.

    (4) Employment obligation--(i) Head of family's obligation. The head 

of the FSS family shall be required under the contract of participation 

to seek and maintain suitable employment during the term of the contract 

and any extension thereof. Although other members of the FSS family may 

seek and maintain employment during the term of the contract, only the 

head of the FSS family is required to seek and maintain suitable 

employment.

    (ii) Seek employment. The obligation to seek employment means that 

the head of the FSS family has applied for employment, attended job 

interviews, and has otherwise followed through on employment 

opportunities.

    (iii) Determination of suitable employment. A determination of 

suitable employment shall be made by the PHA based on the skills, 

education, and job training of the individual that has been designated 

the head of the FSS family, and based on the available job opportunities 

within the jurisdiction served by the PHA.

    (5) Consequences of noncompliance with the contract. The contract of 

participation shall specify that if the FSS family fails to comply, 

without good cause, with the terms and conditions of the contract of 

participation, which includes compliance with the public housing lease 

or the Section 8-assisted lease, the PHA may:

    (i) Withhold the supportive services;

    (ii) Terminate the family's participation in the FSS program; or

    (iii) For the Section 8 FSS program, terminate or withhold the 

family's Section 8 assistance, except in the case where the only basis 

for noncompliance with the contract of participation is noncompliance 

with the lease, or failure to become independent from welfare 

assistance. However, failure to become independent from welfare 

assistance because of failure of the head of household to meet the 

employment obligation described in paragraph (a)(4) of this section, or 

failure of the FSS family to meet any other obligation under the 

contract of participation, except the interim goal concerning welfare 

assistance, is grounds for the PHA to terminate or withhold Section 8 

assistance.

    (c) Contract term. The contract of participation shall provide that 

each FSS family will be required to fulfill those obligations to which 

the participating family has committed itself under the contract of 

participation no later than 5 years after the effective date of the 

contract.

    (d) Contract extension. The PHA shall, in writing, extend the term 

of the contract of participation for a period not to exceed two years 

for any FSS family that requests, in writing, an extension of the 

contract, provided that the PHA finds that good cause exists for 

granting the extension. The family's written request for an extension 

must include a description of the need for the extension. As used in 

this paragraph (d), ``good cause'' means circumstances beyond the 

control of the FSS family, as determined by the PHA, such as a serious 

illness or involuntary loss of employment. Extension of the contract of 

participation will entitle the FSS family to continue to have amounts 

credited to the family's FSS account in accordance with Sec.  984.304.

    (e) Unavailability of supportive services--(1) Good faith effort to 

replace unavailable services. If a social service agency fails to 

deliver the supportive services pledged under an FSS family member's 

individual training and services plan, the PHA shall make a good



[[Page 692]]



faith effort to obtain these services from another agency.

    (2) Assessment of necessity of services. If the PHA is unable to 

obtain the services from another agency, the PHA shall reassess the 

family member's needs, and determine whether other available services 

would achieve the same purpose. If other available services would not 

achieve the same purpose, the PHA shall determine whether the 

unavailable services are integral to the FSS family's advancement or 

progress toward self-sufficiency. If the unavailable services are:

    (i) Determined not to be integral to the FSS family's advancement 

toward self-sufficiency, the PHA shall revise the individual training 

and services plan to delete these services, and modify the contract of 

participation to remove any obligation on the part of the FSS family to 

accept the unavailable services, in accordance with paragraph (f) of 

this section; or

    (ii) Determined to be integral to the FSS family's advancement 

toward self-sufficiency (which may be the case if the affected family 

member is the head of the FSS family), the PHA shall declare the 

contract of participation null and void. Nullification of the contract 

of participation on the basis of unavailability of supportive services 

shall not be grounds for termination of Section 8 assistance.

    (f) Modification. The PHA and the FSS family may mutually agree to 

modify the contract of participation. The contract of participation may 

be modified in writing with respect to the individual training and 

services plans, the contract term in accordance with paragraph (d) of 

this section, and designation of the head of the family.

    (g) Completion of the contract. The contract of participation is 

considered to be completed, and a family's participation in the FSS 

program is considered to be concluded when one of the following occurs:

    (1) The FSS family has fulfilled all of its obligations under the 

contract of participation on or before the expiration of the contract 

term, including any extension thereof; or

    (2) 30 percent of the monthly adjusted income of the FSS family 

equals or exceeds the published existing housing fair market rent for 

the size of the unit for which the FSS family qualifies based on the 

PHA's occupancy standards. The contract of participation will be 

considered completed and the family's participation in the FSS program 

concluded on this basis even though the contract term, including any 

extension thereof, has not expired, and the family members who have 

individual training and services plans have not completed all the 

activities set forth in their plans.

    (h) Termination of the contract. The contract of participation is 

automatically terminated if the family's Section 8 assistance is 

terminated in accordance with HUD requirements. The contract of 

participation may be terminated before the expiration of the contract 

term, and any extension thereof, by:

    (1) Mutual consent of the parties;

    (2) The failure of the FSS family to meet its obligations under the 

contract of participation without good cause, including in the Section 8 

FSS program the failure to comply with the contract requirements because 

the family has moved outside the jurisdiction of the PHA;

    (3) The family's withdrawal from the FSS program;

    (4) Such other act as is deemed inconsistent with the purpose of the 

FSS program; or

    (5) Operation of law.

    (i) Option to terminate Section 8 housing and supportive service 

assistance. The PHA may terminate or withhold Section 8 housing 

assistance, the supportive services, and the FSS family's participation 

in the FSS program, if the PHA determines, in accordance with the 

hearing procedures provided in 24 CFR 982.555 that the FSS family has 

failed to comply without good cause with the requirements of the 

contract of participation as provided in paragraph (b)(5) of this 

section.

    (j) Transitional supportive service assistance. a PHA may continue 

to offer to a former FSS family who has completed its contract of 

participation and whose head of family is employed, appropriate FSS 

supportive services in becoming self-sufficient (if the family



[[Page 693]]



still resides in public housing, or Section 8-assisted housing), or in 

remaining self-sufficient (if the family no longer resides in public, 

Section 8-assisted housing, or other assisted housing).