FSS Final Rule Published

HUD has announced the Final Rule implementing the re-authorization of the FSS program was published in the Federal Register on May 17, 2022. FSS is a voluntary program for multifamily owners and residents that provides incentives and support to help families living in HUD-assisted housing to increase their earnings and build financial assets.  

HUD anticipates that these changes will simplify the operation of the Multifamily FSS programs.  The new final rule updates regulations under 24 CFR 984 and 24 CFR 877 and creates important changes for FSS programs in Multifamily properties, highlights of which are described below. 
There have been some major changes that HUD is highlighting for Operating Programs.  Those include, but are not limited to: 
•    New Reporting Forms and escrow calculation worksheets (listed below under New Forms)  
•    Reduced burden of reporting – from quarterly reports to annual reports  
•    New requirements for action plans; most owners will need to submit new action plans to match the new reporting requirements, but we expect most required changes to be small. 
•    More ability to pool resources with other FSS programs, including those operated by PHAs  
In addition, there are three new reporting forms for Multifamily FSS programs, all of which can be found on the HUD Multifamily website under “Asset Management Quick Links”: 
•    HUD 52650 Contract of Participation – incorporating all of the regulatory changes through the new final rule;  
•    Multifamily FSS Reporting Tool Instructions 2022; and  
•    Monthly FSS Escrow Credit Worksheet 2022  

Owners are reminded that you must submit your action plan with the action plan checklist. This can be found on the FSS Program Website 

Important Dates to keep in mind; the final rule goes into effect on June 17th, and all required changes to programs (e.g., new action plans) must occur before November 14th
This means that starting on June 17th Multifamily FSS program operators should discontinue submitting quarterly reports and that all changes to action plans must be submitted before November 14th. Note that edited action plan must be approved by HUD before owners can begin using the new forms and that all participants (including existing participants) must sign the new contract of participation. You cannot enroll new participants in your FSS program until your revised action plans are approved.

An updated version of Housing Notice H-2016-08 to incorporate changes to the Multifamily FSS program is currently being drafted, as are updates to the FSS guidebook, including a chapter dedicated to running FSS at PBRA properties. 
Reach out to with any urgent questions on reporting

Multifamily FSS program operators are encouraged to join the Family Self-Sufficiency (FSS) Program HUD Mailing List at to receive periodic emails with FSS program updates and resources