The Moving to Work (MTW) Demonstration Program continues to expand. HUD recently issued technical revisions to the Operations Notice for the Expansion of the Moving to Work Demonstration Program.
What is the Moving to Work Program?
HUD established the MTW Demonstration Program in 1996. The goal was to grant public housing agencies (PHAs) greater flexibility in using federal funds to meet local housing needs. The program allows PHAs to:
- Develop innovative self-sufficiency programs for residents.
- Create cost-effective housing policies.
- Expand affordable housing choices through mixed-finance developments.
Since its 2016 expansion, the program has grown to include 100 additional PHAs.
Summary of Technical Revisions
HUD’s latest notice introduces clarifications and updates to several key sections of the MTW Operations Notice. Below are the most notable changes:
- MTW Funding Flexibility and Financial Reporting
HUD revised Section 5 to clarify funding expiration policies:- Administrative Fee Reserves Usage: MTW agencies can use reserves for Housing Assistance Payments (HAP) but must follow new reporting guidelines.
- Renewal Eligibility Cap Adjustments: Agencies that exceed the cap will have their higher expenses reflected in renewal funding calculations.
- Emergency Housing & Stability Vouchers: The MTW renewal funding formula does not include these voucher types.
- Applying MTW Flexibilities to Special Purpose Vouchers
Section 9 now explicitly states that you can apply MTW flexibilities to Special Purpose Vouchers (SPVs), including:- HUD-Veterans Affairs Supportive Housing (HUD-VASH)
- Family Unification Program (FUP)
- Mainstream & Emergency Housing Vouchers (EHVs)
- Administrative and Contact Information Updates
Section 13 of the notice now reflects new HUD leadership. It lists John Concannon as the primary MTW contact for program-related inquiries. - Clarifications in Appendix I – MTW Waivers
The document updates several waivers to ensure consistency, including:- Rent Reasonableness Reviews: Agencies may now negotiate rents with owners for all properties they own or manage, not just project-based voucher (PBV) units.
- Inspection Requirements: Agencies no longer need third-party inspections for all properties if certain waivers are applied.
- Choice Mobility vs. Portability: The term “Limit Portability for PBV Units” has been corrected to “Limit Choice Mobility for PBV Units”, ensuring clarity in tenant movement options.
What This Means for Public Housing Agencies
These updates do not introduce new program policies but provide clarifications and technical adjustments to ensure the effective implementation of MTW flexibilities. PHAs should:
- Review reporting requirements for administrative reserves and funding flexibilities.
- Assess applicable waivers to determine if updates impact their local policies.
- Consult HUD’s new guidance materials for best practices on applying MTW flexibilities to Special Purpose Vouchers.
For full details, agencies can review the Operations Notice for the Expansion of the Moving to Work Demonstration Program on HUD’s official website. Read the full notice here.
