Moving to Work (MTW) Frequently Asked Questions

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1. When did MTW begin?
The MTW Demonstration was authorized by Section 204 of the 1996 Appropriations Act. Interested PHAs were selected for participation in response to a Federal Register Notice published December 18, 1996.

2. What is the purpose of the MTW Demonstration?
The purpose of the MTW Demonstration is to give public housing agencies and the Secretary of Housing and Urban Development the flexibility to design and test various approaches for providing and administering housing assistance that:

• reduce cost and achieve greater cost effectiveness in Federal expenditures;
• give incentives to families with children where the head of household is working, seeking work, or is preparing for work by participating in job training, educational programs, or programs that assist people to obtain employment and become economically self- sufficient; and
• increase housing choices for low-income families.

3. What PHAs are participating?
There currently are 30 PHAs that are participating as MTW Demonstration sites. Three PHAs completed their original participation as MTW Demonstration sites, however San Diego has returned to the MTW Demonstration.

4. Is the MTW Demonstration being evaluated?
Yes. HUD sponsored a Congressionally-mandated evaluation of the MTW Demonstration. The earliest MTW sites were included in the evaluation. A report on the evaluation was delivered to Congress in January 2004. See MTW National Evaluation for more information.

5. How can I become an MTW site?
All of the MTW Demonstration slots are currently filled and new sites are not being added.

6. What are MTW sites permitted to do under MTW?
Some PHAs in the MTW Demonstration have considerable flexibility in determining how to use Federal funds. For example, they can be permitted to combine funds from the public housing operating and modernization programs and Housing Choice Voucher tenant-based rental assistance program to meet the purposes of the demonstration. PHAs selected for the demonstration are also permitted to seek exemption from most existing public housing and HCV program rules, except for Section 18 (public housing demolition/disposition), Section 12 (labor standards), and fair housing requirements. For example, PHAs can develop alternate rent structures, impose time limits or implement self-sufficiency programs that meet the purposes of the demonstration program. PHAs are expected to take the lead in meeting the opportunities and responsibilities presented by MTW to plan and implement innovative programs that effectively address locally identified needs.

7. Do PHAs in the MTW Demonstration receive additional funding?
No. Under the MTW Demonstration, PHAs receive funding that is equivalent to what they would have received had they not participated in MTW.

8. What is the "block grant" approach under MTW?
In addition to the normal set of waivers provided for which all MTW agencies are eligible, several MTW agencies, called "block grant agencies", are permitted to combine their public housing and Housing Choice Voucher funds and use these funds interchangeably for any MTW-related purpose. The result of the "block" or consolidated, funding approach is that public housing and Housing Choice Voucher funds and can be spent on activities normally not funded by the "individual" programs contributing to the block grant. For example, an MTW agency could use capital funds for tenant-based assistance or Housing Choice Voucher funds for capital purposes. Block grant agencies may also use the new flexibility to support local housing initiatives of their own design, i.e., they need not spend the funds on the public housing or Housing Choice Voucher programs. The only exception to this flexibility is a "maintenance of effort" provision requiring agencies to serve substantially the same number and type of households as they would as a non-MTW agency.

Largely because of these special funding arrangements, the block grant sites have reporting requirements that are distinct from the other MTW demonstration participants. In lieu of the PHA Annual Plan Process, the block grant sites prepare an Annual MTW Plan and Annual MTW Report. The MTW Plan serves as the comprehensive framework for the PHA's activities, including resource allocation decisions and program initiatives. The MTW Report compares the PHA's performance with its Annual Plan.

The MTW Plan and MTW Report also replace major reporting requirements that apply separately to the public housing and Section 8 programs. Specifically, MTW block grant sites are not subject to HUD's Public Housing Assessment System (PHAS) or Section 8 Management Assessment Program (SEMAP). (However, MTW agencies are subject to the physical inspection component of PHAS under REAC and the resident survey, unless the agency obtains HUD approval for use of their own resident survey.) These streamlined reporting requirements are designed to help meet the demonstration's goals of reducing program costs and promoting administrative efficiency. Additionally, some of the block grant agencies do not have to report on obligations and expenditures for modernization funds.

9. Which MTW sites have block granting authority and which do not?

Here's a table that shows the block grant and non-block grant agencies.

10. For Block Grant MTW agencies, what does “serving substantially the same number of households” mean?

Under the Moving to Work (MTW) statute, MTW block grant agencies are obligated to serve substantially the same number of households for which the agency received funding prior to the beginning of the demonstration. HUD recognizes, however, that the number of households served may fluctuate during the course of the term of participation. For example, the agency may receive an incremental increase of vouchers, or the agency may attempt initiatives throughout the demonstration that impact the number of households served. Or, the agency may have been initially underserving voucher households at the beginning of the demonstration. In this case, the agency would, in accordance with obligations outlined in its MTW Agreement, be required to articulate specific interim goals in its Annual Plan. These interim goals should demonstrate how the agency will increase the number of households served during the course of the demonstration in order to reach the same number of households by the end of the MTW term for which the agency initially received funding.

For example, consider a block grant agency that entered the demonstration with 4,000 occupied public housing units (out of 4,200 total) and 3,000 housing choice vouchers (out of 3,500 possible). Generally, the agency should not serve less than 7,000 households each year (the baseline of households served prior to the demonstration). By the end of the demonstration, to the extent that they are funded for 7,700 units, they should be substantially serving that number.