Notice2025-15376
Waivers and Alternative Requirements for the Jobs Plus Initiative Program
Primary source
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Published
August 13, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
Since Fiscal Year (FY) 2014, the Jobs Plus Pilot initiative program (commonly known as Jobs Plus or "JP") has provided competitive grants to partnerships between public housing authorities (PHAs), local workforce investment boards established under section 117 of the Workforce Investment Act of 1998, and other agencies and organizations that provide support to help public housing residents obtain employment and increase earnings. On March 29, 2018, HUD published a Federal Register notice announcing waivers and alternative requirements for Jobs Plus. This notice establishes a new rent incentive structure in accordance with the Housing Opportunity Through Modernization Act of 2016 (HOTMA) (approved July 29, 2016), for FY 2025 and future Jobs Plus grants. This notice also states that Jobs Plus grants awarded for FY2023-2024 and prior FYs are subject to 24 CFR 960.255(e)(2) and must continue to implement the Jobs Plus rent incentive in accordance with the Jobs Plus Earned Income Disregard (JPEID) structure.
Full Text
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<title>Federal Register, Volume 90 Issue 154 (Wednesday, August 13, 2025)</title>
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[Federal Register Volume 90, Number 154 (Wednesday, August 13, 2025)]
[Notices]
[Pages 38985-38987]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15376]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6515-N-01]
Waivers and Alternative Requirements for the Jobs Plus Initiative
Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
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SUMMARY: Since Fiscal Year (FY) 2014, the Jobs Plus Pilot initiative
program (commonly known as Jobs Plus or ``JP'') has provided
competitive grants to partnerships between public housing authorities
(PHAs), local workforce investment boards established under section 117
of the Workforce Investment Act of 1998, and other agencies and
organizations that provide support to help public housing residents
obtain employment and increase earnings. On March 29, 2018, HUD
published a Federal Register notice announcing waivers and alternative
requirements for Jobs Plus. This notice establishes a new rent
incentive structure in accordance with the Housing Opportunity Through
Modernization Act of 2016 (HOTMA) (approved July 29, 2016), for FY 2025
and future Jobs Plus grants. This notice also states that Jobs Plus
grants awarded for FY2023-2024 and prior FYs are subject to 24 CFR
960.255(e)(2) and must continue to implement the Jobs Plus rent
incentive in accordance with
[[Page 38986]]
the Jobs Plus Earned Income Disregard (JPEID) structure.
DATES: Applicability Date: August 13, 2025.
FOR FURTHER INFORMATION CONTACT: To assure a timely response, please
electronically direct requests for further information to this email
address: <a href="/cdn-cgi/l/email-protection#367c595445665a4345765e435218515940"><span class="__cf_email__" data-cfemail="baf0d5d8c9ead6cfc9fad2cfde94ddd5cc">[email protected]</span></a>. Requests may also be directed to the
following address: Ms. Jody Moses, Office of Public and Indian Housing,
U.S. Department of Housing and Urban Development, 451 7th Street SW,
Room 5151, Washington, DC 20410; telephone number (202) 402-5788 (this
is not a toll-free number). HUD welcomes and is prepared to receive
calls from individuals who are deaf or hard of hearing, as well as from
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
Jobs Plus promotes economic empowerment in low-income areas by
providing funding to PHAs to develop locally-based, job-driven
approaches to increase earnings and advance employment outcomes of
public housing residents through work readiness, employer linkages, job
placement, educational advancement, technology skills, and financial
literacy. The Jobs Plus model relies on three components: (1)
employment-related services; (2) community support for work; and (3) a
financial incentive (i.e., rent incentive), which currently excludes
from the family rent calculation 100 percent of a participating
resident's incremental earned income for a period of up to 48 months or
the end of the grant term (whichever is sooner). The rent incentive is
the focus of the notice and removes a major disincentive to employment
by neutralizing any rent increase due to increasing earned income.
Congress first appropriated funds for the program in the
Consolidated Appropriations Act of 2014, (Pub. L. 113-76, approved
January 17, 2014), and continued to appropriate funds for the program
in each subsequent fiscal year. The most recent appropriation is the
Full-Year Continuing Appropriations and Extensions Act, 2025 (Pub. L.
119-4, approved March 14, 2025). Each year, the appropriations act
provisions pertaining to Jobs Plus have remained substantially similar
and provide HUD the authority to waive rent and income limitation
requirements under sections 3 and 6 of the United States Housing Act of
1937, as amended, (the Housing Act), (42 U.S.C. 1437a, 1437d), and
provide alternative requirements implementing the Jobs Plus rent
incentive.
As part of the implementation of the Jobs Plus program, HUD has
published two prior Federal Register notices to announce waivers and
alternative requirements for Jobs Plus, specifically concerning the
rent incentive. The first notice, ``Jobs-Plus Pilot Initiative
program,'' was published on March 13, 2015 at 80 FR 13415 (the 2015
notice). The 2015 notice was replaced by a second notice, ``Waivers and
Alternative Requirements for the Jobs Plus Initiative Program,'' which
was published on March 29, 2018 at 83 FR 13506 (the 2018 notice). Under
the 2015 and 2018 notices, the Jobs Plus Earned Income Disregard
(JPEID) was largely established by HUD waiving section 3(d) of the
United States Housing Act of 1937 (42 U.S.C. 1437a) and its
implementing regulations at 24 CFR 960.255. The 2018 notice continues
to apply to FY2023-2024 and prior Jobs Plus grantees (as described
below) but not to FY2025 and subsequent FY Jobs Plus grantees.
This notice, referred to as the 2025 notice, is essential to comply
with the statutory requirements established by the Housing Opportunity
Through Modernization Act of 2016 (HOTMA) (Pub. L. 114-201, 13 Stat.
782) (approved July 29, 2016). HOTMA removed the standard public
housing Earned Income Disregard (EID), which was the foundation for
JPEID and the 2015 and 2018 notices. Specifically, section 102(a)(2) of
HOTMA eliminated section 3(d) of the Housing Act (42 U.S.C. 1437a(d)),
which allowed for the exclusion of earned income increases from annual
income calculations for a limited time period for determining rent. Due
to the removal of the EID provision, the Jobs Plus incentive will no
longer be applicable for grants in FY2025 and subsequent fiscal years.
As a result, HUD is using the authority granted in the most recent
authorization, the Full-Year Continuing Appropriations and Extensions
Act, 2025 (Pub. L. 119-4, approved March 14, 2025), to waive sections 3
and 6 of the Housing Act, as explained in Appendix 2, to establish a
new Jobs Plus rent incentive for FY2025 and subsequent FY grants.
Subsequently, HUD implemented HOTMA via the ``Housing Opportunity
Through Modernization Act of 2016: Implementation of Sections 102, 103,
and 104'', 88 FR 9600 (Feb. 14, 2023) (HOTMA final rule) revising 24
CFR 960.255(e)(2) (Self-sufficiency incentives), effective January 1,
2024. The final rule permits families ``eligible to receive the Jobs
Plus program rent incentive pursuant to the Jobs Plus FY2023 notice of
funding opportunity (NOFO) or earlier appropriations and distributed
through prior Jobs Plus NOFOs,'' to continue to receive the
disallowance of increase in annual income (i.e., they may continue to
use the rent incentive structure associated with those years, which is
the JPEID). The FY2023 Jobs Plus NOFO was reopened on December 12,
2023, to include FY 2024 funds, solicit additional applications under
the FY2023 NOFO, and to obligate the bulk of FY2023 and FY2024 Jobs
Plus funding within the fiscal year.
Accordingly, HUD's implementation of HOTMA as explained above
applies to grants (and the families they serve) awarded under the
reopened FY2023 NOFO and prior years' NOFOs, as described in Appendix 1
of this notice. However, families eligible to receive the Jobs Plus
rent incentive in connection with FY2025 and future appropriations/
NOFOs and grants awarded thereunder are subject to the new rent
incentive, the Jobs Plus Deduction (JPD), as described in Appendix 2 of
this notice.
HUD will announce any other revisions to waivers and alternative
requirements for Jobs Plus in future Federal Register notices.
II. Environmental Review
This Notice involves administrative and fiscal requirements related
to income limits and exclusions regarding the calculation of rental
assistance which do not constitute a development decision affecting the
physical condition of specific project areas or building sites.
Accordingly, under 24 CFR 50.19(c)(6), this Notice is categorically
excluded from environmental review under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321).
Heidi Frechette,
General Deputy Assistant Secretary for Public and Indian Housing.
Appendix 1--Jobs Plus Waivers and Alternative Requirements for FY2023-
2024 and Prior Fiscal Years' Jobs Plus Grants
Appendix 1 applies to Jobs Plus grants serving individuals
eligible to receive the Jobs Plus program rent incentive pursuant to
the Jobs Plus reopened FY2023 (2023-2024) and prior FYs' NOFOs.
The HOTMA final rule revised 24 CFR 960.255(e)(2) to state:
``This section [`Self-sufficiency incentives--Disallowance of
[[Page 38987]]
increase in annual income'] applies to a family that is: . . . .
Eligible to receive the Jobs Plus program rent incentive pursuant to
the Jobs Plus FY2023 NOFO or earlier appropriations and distributed
through prior Jobs Plus NOFOs.'' Accordingly, Jobs Plus grants
awarded for FY2023-2024 and prior FYs are subject to 24 CFR
960.255(e)(2) and must continue to implement the Jobs Plus rent
incentive in accordance with the JPEID structure of the disregard/
disallowance. Grantees administering FY2023-2024 or prior Jobs Plus
grants must not change to the newly established Jobs Plus Deduction
structure (described in Appendix 2). As such, FY2023-2024 and prior
FYs' grants must continue following the 2018 notice, their
respective NOFO, grant agreement(s), and using guidance and any
applicable tools provided by HUD for their specific grant(s).
Appendix 2--Jobs Plus Waivers and Alternative Requirements for FY2025
and Subsequent Fiscal Years' Jobs Plus Grants
Appendix 2 applies to Jobs Plus grants serving individuals
eligible to receive the Jobs Plus program rent incentive pursuant to
the Jobs Plus FY2025 and subsequent FYs' NOFOs. FY2025 and
subsequent FYs' grantees must not implement the JPEID structure used
by FY2023-2024 and prior grants (described in Appendix 1). FY2025
and subsequent FYs' grantees must, instead, follow the new Jobs Plus
rent incentive established in this Appendix 2. Effective January 1,
2024, section 102(a)(2) of HOTMA eliminated the Earned Income
Disregard (EID) in Section 3(d) of the U.S. Housing Act of 1937, as
explained above in the 2025 notice. The new Jobs Plus rent incentive
is called the Jobs Plus Deduction (JPD). Implementation of the Jobs
Plus program and the JPD should be considered in the context of
conforming to HOTMA requirements, while also considering policies
that support the Jobs Plus program intent to support resident
wellbeing, build communities with a culture of work, increase
earnings and advance employment outcomes of public housing
residents.
A PHA awarded a Jobs Plus grant for FY2025 or subsequent FYs
shall establish a written policy for the JPD that must be included
it in its agency policies and administer it accordingly. The records
associated with the calculated deducted amounts shall be provided to
HUD per the terms and conditions of the Grant Agreement, and any
applicable HUD requirements. Additional instructions for the JPD,
including submission of records, will be provided at a later date.
The Full-Year Continuing Appropriations and Extensions Act, 2025
(Public Law 119-4, approved March 14, 2025) authorizes HUD to waive
or alter the rent and income limitation requirements under Sections
3 and 6 of the United States Housing Act of 1937 as necessary to
implement the Jobs Plus grant program. The list of waivers and
alternative requirements for these grants is as follows:
I. Review of Family Income Waivers and Alternative Requirements
Provisions waived: Section 6(c)(2) of the United States Housing
Act of 1937 (42 U.S.C. 1437d), Sections 3(a)(6)(A)(ii), (iii), (iv)
of the United States Housing Act of 1937 (42 U.S.C. 1437a), Section
3(a)(7)(A-C) of the United States Housing Act of 1937 (42 U.S.C.
1437a), 24 CFR 5.609(c)(1), 24 CFR 960.257(a)(1)-(2), and 24 CFR
960.257(b)(1)-(3).
Alternative requirements: The PHA shall calculate the adjusted
income for Jobs Plus participants enrolled in the JPD separately
from other income deductions for the purposes of determining the
amount to be deducted in connection with the JPD. After the earned
income baseline has been set, the PHA must not conduct additional
income examinations, for purposes of rent calculation, when a JPD
participant's earned income increases until the end of a resident's
JPD participation. The PHA shall conduct income examinations at the
beginning of a resident's participation in the JPD (i.e., when the
resident enrolls in JPD) to set the participant's earned income
baseline, and at end of a resident's JPD participation period
identified in section II below. The PHA shall conduct income
examinations requested by JPD participants when their earned income
decreases regardless of the amount. Any income examination completed
after the earned income baseline is set must not reset the
participants' earned income baseline.
II. Adjusted Income/Additional Deduction Alternative Requirements
Provisions affected: Section 3(b)(5)(E) of the United States
Housing Act of 1937 (42 U.S.C. 1437a) and 24 CFR 5.611(b). While HUD
is not waiving section 3(b)(5)(E) of the United States Housing Act
of 1937 (42 U.S.C. 1437a) nor 24 CFR 5.611(b), it is creating
alternative requirements.
Alternative requirements: The PHA shall adopt a deduction
specifically for JPD, to be used only when calculating any Jobs Plus
participant's adjusted income under a grant made pursuant to the
FY2025 or subsequent FYs' NOFOs. Per 24 CFR 5.611, adjusted income
is calculated by subtracting mandatory and additional deductions
from the annual income (as determined under 24 CFR 5.609) of the
members of the family. The PHA must establish a written policy for
the deduction. The JPD must deduct from a JPD participant's annual
income during rent calculations at any income examination or
reexamination--all incremental increases in earned income due to
employment for a period of up to 48 months, beginning on the date on
which the public housing resident enrolls in the JPD, and ending
after 48 months, at the end of the grant period, or at the end of
the applicable grace period for participants determined to be over-
income for public housing, whichever is soonest. All residents in a
Jobs Plus project are eligible to receive the JPD benefit, even if
they do not actively participate in other Jobs Plus activities, but
they must choose to enroll (documentation determined by PHA) in the
JPD portion of the Jobs Plus program.
As JPD is an individual benefit, only individual members of a
family in a Jobs Plus public housing project that have enrolled in
JPD may receive the benefit of the JPD for their rent calculation.
Grantee PHAs shall document the JPD enrollment, including the
enrollment date. Each JPD participant's income must be verified by
the PHA to set the participant's baseline earned income for the
purpose of rent calculation during their JPD participation.
Residents transitioning from a prior earned income incentive to JPD
may choose to retain their earned income baseline set when they
began the prior financial incentive. Residents must be able to
choose whether they want to enroll in JPD or enroll/continue in
another financial incentive that is available to them (e.g., FSS
escrow). Residents may only benefit from one financial incentive at
a time (e.g., a resident cannot participate in both JPD and FSS
escrow at the same time). The PHA shall not automatically enroll
residents in the Jobs Plus program, the JPD, nor set up Individual
Savings Accounts in lieu of providing the JPD.
Grantee PHAs are not eligible for an increase in Capital Fund
and Operating Fund formula grants based on the application of the
JPD. Any compensation to the PHA for lost rent revenues will be
manually adjusted by HUD to prevent overpayment of Public Housing
Operating funds to grant recipients. PHAs shall use funds received
through their Jobs Plus grant funds to account for lost rental
revenue due to the application of the JPD. To facilitate such
reimbursements, grantees shall calculate and document each JPD
participant's Family Rent at the time of income examination, both
before and after the application of the JPD. The difference between
these two rents is the amount to be reimbursed to the PHA due to the
JPD.
There shall be no phase-in or phase-out period for families
participating in Jobs Plus. Upon the resident's completion of the
JPD period, the resident's adjusted income will be re-calculated at
the next annual or interim income examination accounting for all
earned income, in accordance with 24 CFR part 5, subpart F.
[FR Doc. 2025-15376 Filed 8-12-25; 8:45 am]
BILLING CODE 4210-67-P
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