Moving to Work

Moving to Work (MTW) is a demonstration program for public housing authorities (PHAs) that provides them the opportunity to design and test innovative, locally designed strategies that use Federal dollars more efficiently, help residents find employment and become self-sufficient, and increase housing choices for low-income families. MTW gives PHAs exemptions from many existing public housing and voucher rules and more flexibility with how they use their Federal funds.[1] PHAs can use special funding formulas for MTW agencies and permit agencies to shift funds between the programs or to other uses.[2]

The program is operated by 39 PHAs nationwide.[3]

History

The Moving to Work program was approved in 1996.

In 2015, PHAs were negotiating a 10-year extension to agreements that otherwise terminated the program in 2018.[2]

In a 2015 study the most common way to increase cost-effectiveness has been to extend the timing of income certifications for elderly or disabled households, with 32 of the 34 agencies making this change. Additionally, 14 agencies changed the timing of income recertification for all households from annually to every 2–3 years. Such cost-saving measures allowed them to repurpose staff time to provide additional services to residents, cover the front-end costs of initiating new programs, or improve monitoring.[4]

Delaware

This program features time limits for program participants. In 2016 the agency claimed to have transitioned more than 850 families out of the program, with fewer than 1% ending up homeless, while 30% became homeowners.[5]

Massachusetts

The Cambridge Housing Authority (CHA) and the Massachusetts Department of Housing (DHDC) allow residents to convert vouchers provided when private landowners increase rents into project-based vouchers, ensuring the affordability of specific units for up to 15 years. DHDC preserved 464 affordable rental units through this process while CHA preserved 603 units.[4]

Pennsylvania

The Housing Authority of the City of Pittsburgh reduced the number of traditional public housing units and the addition of new affordable units supported by tax credits and new market rate units.[4]

Washington

King County Housing Authority (WA) increased affordable units by 1,138 since 2003. Just under half of those new units (529) used combined federal funding streams for public housing and voucher programs into a flexible single fund. The new units came in the form of additional housing vouchers and sponsor-based assistance for people who are homeless or have severe disabilities.[4]

2018 renewal

HUD announced that it plans various changes to MTW beginning in 2019:[2]

  • End preferential funding formulas for some MTW agencies, replaced by equitable funding to all agencies that operate public housing.
  • Require agencies to use at least 90 percent of their voucher funds for vouchers, rather than repurposing them.
  • Possibly raise the total number of families that MTW agencies must assist.
  • Require added evaluation of new MTW policies that pose the greatest risks for low-income families, such as major rent changes, restrictions on where families can live, time limits and work requirements.

Office of Public Housing Investments

The Office of Public Housing Investments (OPHI), within the Office of Public and Indian Housing (PIH) at HUD headquarters, oversees the MTW Demonstration.[1]

Funding formulas

Block grants

MTW agencies can combine Operating and Capital funds and Housing Choice Voucher funds and use them interchangeably. For example, an MTW agency could use public housing capital funds to issue additional vouchers or use voucher funds to develop more public housing to better fit the needs of its community. Agencies can funds innovative policies. For instance, an MTW Agency can use funds from its block grant to replace decaying public housing with mixed-income communities, increase the percentage of project-based vouchers to bring more affordable housing to compact markets, and reach special needs populations through the use of provider-based vouchers paired with supportive services.[6]

However MTWs must "assist substantially the same total number of eligible low-income families as would have been served had the funding amounts not been combined."[6]

Eleven PHAs operate under modified funding formulas that allow them to receive (2013) $7,900 per unit, versus $4,100 for the other 28. Some MTW agencies use voucher funds for other purposes, including renovation, developing new housing, providing services to housing assistance recipients, supplementing agency budgets for administration and operations, or accumulating reserves. Government Accountability Office studies have found that developing new affordable housing is generally less efficient than providing vouchers for use in the private housing market.[2]

References
  1. "Moving to Work - Public and Indian Housing - HUD". portal.hud.gov. Retrieved 2016-04-30.
  2. Fischer, Will (January 21, 2015). "HUD Seeks Significant Improvements to "Moving to Work" Demonstration, But Additional Changes Needed". www.cbpp.org. Center on Budget and Policy Priorities. Retrieved 2016-04-30.
  3. "Moving to Work (MTW) - Participating Sites - HUD". portal.hud.gov. Retrieved 2016-04-30.
  4. "Another Report on the Moving To Work Demonstration Released  : National Low Income Housing Coalition". National Low Income Housing Coalition. February 23, 2015. Retrieved 2016-04-30.
  5. "Delaware State Housing Authority - Services for Renters". www.destatehousing.com. Retrieved 2016-04-30.
  6. "Moving to Work - Frequently Asked Questions - HUD". portal.hud.gov. Retrieved 2016-04-30.
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