Each participating family has the opportunity to develop FSS escrowed savings through an account established and controlled by the PHA. As a participant’s earned income increases, so does the percentage they must pay for rent. For FSS participants, however, an amount generally equal to their increased rent because of increased earnings is placed in the FSS escrow account. The more money an individual earns, the more money HUD deposits into the escrow account. The escrow is not counted as an individual asset until the contract is completed and only when the money is paid directly to the individual.
At the PHA’s discretion, the PHA may make a portion of this escrow account available to the family during the term of the contract to enable the family to complete an interim goal such as education or other employment related needs.