Housing authorities across the country are interested in joining the Moving to Work (MTW) demonstration, but many are unclear on how to become an MTW agency, or how to implement flexibilities once they achieve MTW status.
In this series of posts, we'll discuss how the existing Moving to Work agencies became MTW, the pending legislation that could expand the MTW demonstration to a record number of PHAs, and which flexibilities MTW agencies choose to adopt most frequently.
The History of MTW
The Moving to Work (MTW) demonstration was created by Congress to allow public housing agencies (PHAs) regulatory flexibility "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." PHAs have subsequently entered the MTW demonstration in a variety of ways, but always by specific authorization through Congress.
The Moving to Work demonstration was authorized by the 1996 Omnibus Consolidated Rescissions and Appropriations Act. In response to this authorization, the Department of Housing and Urban Development (HUD) issued a PIH notice allowing PHAs to apply for MTW status. Twenty-four agencies were selected for the initial demonstration, and 19 agencies ultimately executed an MTW agreement with HUD.
In the early days of MTW, each PHA negotiated an individual MTW agreement with HUD, which could take months and even years to finalize. The MTW agreements outlined what activities the agency was authorized to undertake, the length of participation in the demonstration, and how the PHA would report to HUD on the overall progress of its activities.
Later, more agencies were brought into the demonstration in a few different ways. Some were specifically named in an appropriations bill, like the Housing Authority of the County of San Bernardino (HACSB), Alaska Housing Finance Corporation (AHFC), and Santa Clara/San Jose Housing Authorities, while others have been added through bills that allowed HUD to select additional agencies. A number of PHAs were added by replacing initial MTW agencies that had ended their participation in the demonstration. Starting in 2008, all MTW agencies have been required to execute a standard MTW agreement with HUD that provides a common set of authorizations and allowable activities, as well as the length of participation.
Next week, we'll discuss how MTW PHAs are using their regulatory flexibility to streamline operations and implement innovative ways of meeting local communities’ low-income housing needs.
NMA consultant Alison Bell played a leading role as part of a management transition team in the successful start-up of the outsourced administration of a large MTW HCV program. She continues to assist PHAs with their IT procurement projects and provides ongoing technical support to MTW agencies.
Nan McKay and Associates has worked with a number of MTW agencies across the country and can leverage that experience to provide assistance in crafting applications for PHAs that meet the above criteria. For more information, contact sales@nanmckay.com.
