HUD Seeks PHAs To Participate in MTW Demonstration Program Second Cohort

Operators of larger public housing authorities (PHAs), take note! The Department of Housing and Urban Development (HUD) is inviting PHAs to take part in a second round of awards under the agency’s Moving to Work (MTW) demonstration program, which allows PHAs to practice greater program flexibility and encourages housing choice and self-sufficiency among low-income families.

“A growing number of public housing authorities want to develop their own homegrown approaches toward supporting the self-sufficiency of their residents,” according to HUD Secretary Ben Carson. “The expanding Moving to Work demonstration program will allow a greater number of local agencies to create local solutions to their unique needs.”

Currently, there are 39 MTW PHAs throughout the nation. In 2015, Congress provided funding to enable HUD to expand the MTW demonstration program to 100 additional PHAs over a seven-year period. The program encourages PHAs to develop unique self-sufficiency strategies, tailored to the needs of their local communities. In contrast to traditional PHAs, MTW agencies have flexibility to design and implement Housing Choice Vouchers (HCVs) and public housing programs to better benefit the communities they serve.

HUD anticipates awarding the 100 MTW PHAs in four “cohorts.” Each cohort will experiment with a certain affordable housing policy, and HUD will study that policy change to learn what successful MTW innovations should be applied to all PHAs across the nation. The first cohort was announced last October. This new announcement seeks PHAs under a second cohort.

Meanwhile, HUD said earlier this month that it is extending the deadline for PHAs to submit letters of interest for the first cohort to May 13, 2019. The first cohort will consist of high-performing PHAs that administer 1,000 or fewer HCVs and public housing units combined. The newly announced second cohort will consist of PHAs with 1,001 or more public housing and HCV units. In addition, to ensure adequate sample size, the PHAs in the second cohort must have 1,000 or more existing non-elderly, non-disabled public housing and/or HCV households. This cohort also will study different rent reform models that may or may not be income-based, to include tiered rents, and/or stepped-up rents.

HUD stated that interested PHAs should consider the types of policies they would like to implement as part of the demonstration program, examples of which are available here. Hopefully, this program will uncover some worthwhile results to improve public housing.

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