Work Requirement/Self-Sufficiency Contracts

Summary

S. 462
Work Requirement: Requires 8 hours of community service for able-bodied adults under 62 unless they are working 20 hours or more per week, are students, have a child under 6, or are engaged in community service under another public assistance requirement.

Self-Sufficiency: Repeals Family Self-Sufficiency.

H.R. 2
Work Requirement: Same as the Senate except does not exempt those with a child under 6, does not specify how many hours one must be working to be exempt from the requirement, and does exempt those certified by a doctor as unable to participate.

Self-Sufficiency: The Family Self-Sufficiency program is replaced by a Self-Sufficiency Contract. Requires all adult residents of either public housing or Section 8 (except those exempt from the work requirement) with responsibility for a minor to enter into a legally enforceable contract that is part of the lease and establishes: 1) a date when housing assistance will be terminated; 2) interim and final goals and targets, and; 3) resources and services to be made available to the family. A recent draft version of the resolution is closer to the Senate bill, eliminating the contract requirement. This draft adds a new PHMAP indicator to determine how well housing authorities are promoting self-sufficiency, as well as requiring authorities to make their best efforts to enter into agreements with state, local, and other entities to provide self-sufficiency programs.

PHADA position

• The work requirement provision is not needed because of welfare reform, now effective in all states. Many unemployed residents that would be affected by S. 462 and H.R. 2 are already required to perform community service.

• HAs have inadequate time and administrative capacity to administer this program without additional federal funds.

• PHADA suggests another exemption: Residents who are exempt from their state's workfare requirements should be exempted from the federal requirement.

• The Self-Sufficiency Contracts are a major unfunded mandate. PHADA estimates the cost as high as $9 per unit per month, or $129 million.

• The contract requirements are inconsistent with the intent of the House bill to deregulate.

• The need for contracts is moot with the passage and implementation of welfare reform.

• Supports leaving the Family Self-Sufficiency Program optional at the discretion of the HA.

Suggested action
Since both bills contain a version of the work requirement, PHADA seeks to remove this unnecessary provision in the Conference Committee. Failing this, PHADA recommends that the provision be modified to permit self-certification of compliance by residents. Also, delete the self-sufficiency contracts from the House bill in the Conference Committee and permit HAs to operate a Family Self-Sufficiency program at their option.