Notice2025-04704
Operations Notice for the Expansion of the Moving to Work Demonstration Program Technical Revisions
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 20, 2025
Effective
March 20, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
This notice provides technical revisions that make no material changes to the notice entitled "Operations Notice for the Expansion of the Moving to Work Demonstration Program" published in the Federal Register on August 28, 2020.
Full Text
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<title>Federal Register, Volume 90 Issue 53 (Thursday, March 20, 2025)</title>
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[Federal Register Volume 90, Number 53 (Thursday, March 20, 2025)]
[Notices]
[Pages 13189-13191]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-04704]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5994-N-06]
Operations Notice for the Expansion of the Moving to Work
Demonstration Program Technical Revisions
AGENCY: Office of Public and Indian Housing, HUD.
ACTION: Notice.
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SUMMARY: This notice provides technical revisions that make no
material changes to the notice entitled ``Operations Notice for the
Expansion of the Moving to Work Demonstration Program'' published in
the Federal Register on August 28, 2020.
DATES: The changes described in this notice are effective March 20,
2025.
FOR FURTHER INFORMATION CONTACT: John Concannon, Office of Public and
Indian Housing, Department of Housing and Urban Development, 451 7th
Street SW, Room 4130, Washington, DC 20410; email address: <a href="/cdn-cgi/l/email-protection#15786162387c7b737a557d60713b727a63"><span class="__cf_email__" data-cfemail="e5889192c88c8b838aa58d9081cb828a93">[email protected]</span></a>, telephone number 202-402-6231 (this is not a toll-free
number). HUD welcomes and is prepared to receive calls from individuals
who are deaf or hard of hearing, as well as individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit: <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
The Moving to Work (MTW) demonstration program was established
under Section 204 of Title II of section 101(e) of the Omnibus
Consolidated Rescissions and Appropriations Act of 1996, Public Law
104-134 (approved April 26, 1996). The MTW demonstration was
significantly expanded under the 2016 MTW expansion statute, Section
239 of Division L, Title II of the Consolidated Appropriations Act,
2016, Public Law 114-113 (approved December 18, 2015) (2016 MTW
expansion). The 2016 MTW expansion authorized HUD to expand the MTW
demonstration program from 39 PHAs by an additional 100 PHAs over a
period of seven years.
On January 23, 2017, HUD published a notice seeking public comment
in the Federal Register (82 FR 8056), entitled ``Operations Notice for
the Expansion of the Moving to Work Demonstration Program Solicitation
of Comment.'' On May 4, 2017, the notice was republished with three
technical revisions and an extension of the comment period (82 FR
20912). HUD considered all relevant comments received. On October 5,
2018, HUD republished the notice (83 FR 50387) with revisions based on
public comments and policy determinations and provided an additional
comment
[[Page 13190]]
period. On August 28, 2020, HUD published the last version of the
notice (85 FR 53444) after the addition of information in the
``Additional activities and waivers'' section and was effective
immediately.
This notice makes technical revisions that make no material changes
in Sections 5, 9 and 13 of the August 28, 2020, notice. It also makes
technical revisions to Appendix I of the notice. HUD intends to provide
guidance on these changes through supplemental PIH notice.
II. Technical Revisions to Operations Notice for the Expansion of the
Moving to Work Program
A. Changes to Section 5--MTW Funding Flexibility and Financial
Reporting
(1) Section 5.a., paragraph 4, sentence 3 reads:
This additional flexibility will expire at the end of Federal
fiscal year 2020 (on September 30, 2020) unless Congress includes it
again in subsequent appropriations acts.
The sentence is revised to read as follows to clarify the
incorporation of appropriations acts beyond 2020:
This additional flexibility will expire at the end of each Federal
fiscal year unless Congress includes it again in subsequent
appropriations acts.
(2) Footnote 22 is added to refer the reader to the Voucher
Management System (VMS) User Manual on the need to create a specific
field for the reporting of Admin Fee reserves for Housing Assistance
Payments (HAP) purposes. The footnote reads:
For more information about VMS Reporting, please see the VMS User
Manual at: <a href="https://www.hud.gov/sites//dfiles/PIH/documents/INSTRUCTIONS.pdf">https://www.hud.gov/sites//dfiles/PIH/documents/INSTRUCTIONS.pdf</a>.
(3) The second sentence of Section 5.b.III.c.v. reads:
If the MTW agency is using administrative fee reserves for HAP
expenses, the MTW agency must enter the amount of the administrative
fee reserves used for HAP expenses in the comments section in VMS.
The sentence is revised to read as follows to provide more specific
guidance on VMS reporting:
MTW PHAs must report the use of HCV Unrestricted Net Position (UNP)
for HAP and the use of HCV UNP for non-HAP expenses in the Expense 1-5
fields in VMS.
(4) Additional clarification is needed on the impact of outside
uses of funds. A sentence and a footnote are added to enhance this
clarification. The additional sentence added to the end of Section
5.b.III.c.v. reads:
Expansion MTW PHAs may not bring in outside sources of funds to
cover administrative costs in order to increase their HCV
Administrative Fee Reserves and then use those increased HCV
Administrative Fee Reserves to cover HAP costs.
Footnote 23 is added to reference the applicable PIH notice and
reads:
Please see PIH Notice 2013-28 for more guidance on the use of
outside funding sources for Expansion MTW PHAs.
(5) Additional clarification is needed on the HAP renewal
eligibility cap. In order to ensure that the amount of funding an MTW
agency is eligible for is not diminished by its participation in the
MTW demonstration program, actual HAP expenses higher than the HAP
renewal eligibility cap will be included in the renewal calculation and
reflected in the MTW agency's annual funding allocation. An additional
sentence has been added to enhance this clarification at the end of
Section 5.b.III.d.ii that reads:
If HAP expenses alone exceed the HAP Renewal Eligibility Cap, any
HAP expenses over the cap will also be included in the MTW agency's
renewal eligibility.
(6) Additional clarification is needed on the HAP renewal
eligibility cap example. The final sentence at the end of Section
5.b.III.d.iii reads:
If the total combined HAP and non-HAP MTW expenses exceed
$6,854,400, the MTW agency's CY 2021 renewal funding will be $6,854,400
adjusted by the RFIF and any national proration.
The sentence is revised to read as follows to provide clarification
in the example:
If the total combined HAP and non-HAP MTW expenses exceed
$6,854,400, the MTW agency's CY 2021 renewal funding will be $6,854,400
plus an adjustment for HAP expenses if HAP expenses alone exceeded
$6,854,400 adjusted by the RFIF and any national proration.
(7) The Emergency Housing Vouchers (EHV) and Stability Vouchers
(SV) categories, programs that originated after the current publication
of the notice in 2020, must be added to the list of voucher types that
are not included in the MTW program. The first sentence of Section
5.b.III.l reads:
Vouchers and funding provided for the following special purpose
vouchers, or any new special purpose vouchers provided in future
appropriations acts, whether for new allocations or renewal of existing
increments, shall not be included in the HCV MTW renewal calculation:
HUD-VASH, FUP, FYI, NED, and Mainstream.
This sentence is revised to read as follows to add the EHV and SV
categories:
Vouchers and funding provided for special purpose vouchers,
including any new special purpose vouchers provided in future
appropriations acts, whether for new allocations or renewal of existing
increments, shall not be included in the HCV MTW renewal calculation:
HUD-VASH, FUP, FYI, NED, Mainstream, Emergency Housing Vouchers (EHV),
and Stability Vouchers (SV).
B. Changes to Section 9--Applying MTW Flexibilities to Special Purpose
Vouchers
(1) Additional language is added to further clarify that MTW
flexibilities may be applied to Special Purpose Vouchers (SPVs). A
sentence and a footnote are added to enhance this clarification. The
additional sentence added to the end of the second paragraph in the
introduction to Section 9 reads:
Approved MTW flexibilities may be applied towards SPVs according to
HUD's current guidance.
Footnote 37 is added to reference the applicable PIH notice:
This process is explained further in the SPV FAQ available at:
<a href="https://www.hud.gov/program_offices/public_indian_housing/programs/ph/mtw/policyguidance">https://www.hud.gov/program_offices/public_indian_housing/programs/ph/mtw/policyguidance</a>.
C. Changes to Section 13--Administrative and Contact Information
(1) The contact information in Section 13.b is revised to reflect
John Concannon, the current MTW Director.
D. Changes to Appendix I--MTW Waivers
(1) Waiver and associated activity 1.g on Tenant Payment as a
Modified Percentage of Income should include a citation to 24 CFR
5.628. This citation is added to the ``Statutes and Regulations
Waived'' section.
(2) Waiver and associated activities 1.t and 1.u on Standard
Deductions erroneously includes language on a single deduction. The
word ``single'' is removed from the ``Activity'' section of both 1.t
and 1.u.
(3) Additional language and a citation are added to clarify waiver
and associated activity 2.d on Rent Reasonableness--Third Party
Requirement.
The ``Activity'' section of 2.d reads:
The agency is authorized to perform rent reasonable determinations
on PBV units that it owns, manages, and/or controls.
This ``Activity'' section of 2.d is revised to include the step of
[[Page 13191]]
negotiating rent to owners and to incorporate units beyond only PBVs.
It is revised to read as follows:
The agency is authorized to perform rent reasonable determinations
and to assist the family in negotiating the rent to owner on units that
it owns, manages, and/or controls.
Waiver and associated activity 2.d on Rent Reasonableness--Third
Party Requirement should include a citation to section 8(o)(11) of the
1937 Act and 24 CFR 982.506. These citations are added to the
``Statutes and Regulations Waived'' section.
(4) Language is deleted to clarify waiver and associated activity
5.c on Third Party Requirement. The ``Activity'' section of 5.c reads:
The agency is authorized to perform HQS inspections on PBV units
that it owns, manages, and/or controls.
This ``Activity'' section of 5.c is revised to incorporate units
beyond only PBVs. It is revised to read as follows:
The agency is authorized to perform HQS inspections on units that
it owns, manages, and/or controls.
(5) The implementation of waiver and associated activity 5.c on
Third Party Requirement inadvertently conflicts with safe harbors under
waiver and associated activity 9.c on Elimination of Project Based
Voucher (PBV) Selection Process for PHA-owned Projects without
Improvement, Development, or Replacement and under waiver and
associated activity 9.d on Alternative PBV Selection Process. Language
is added to both applicable safe harbors to resolve this conflict.
In waiver and associated activity 9.c on Elimination of PBV
Selection Process for PHA-owned Projects without Improvement,
Development, or Replacement, Safe Harbor 9.c.iii reads:
HQS inspections must be performed by an independent entity
according to 24 CFR 983.59(b) or 24 CFR 983.103(f).*
Safe Harbor 9.c.iii is revised to read as follows to resolve this
conflict:
HQS inspections must be performed by an independent entity
according to 24 CFR 983.59(b) or 24 CFR 983.103(f), unless MTW waiver
5.c or an Agency-Specific Waiver is implemented.*
In waiver and associated activity 9.d on Alternative PBV Selection
Process, Safe Harbor 9.d.i reads:
If the selected project is PHA-owned, HQS inspections must be
performed by an independent entity according to 24 CFR 983.59(b) or 24
CFR 983.103(f).*
Safe Harbor 9.d.i is revised to read as follows to resolve this
conflict:
If the selected project is PHA-owned, HQS inspections must be
performed by an independent entity according to 24 CFR 983.59(b) or 24
CFR 983.103(f), unless MTW waiver 5.c or an Agency- Specific Waiver is
implemented.*
(6) The term ``portability'' as used in waiver and associated
activity 9.h on Limit Portability for PBV Units does not accurately
title this waiver and associated activity, as it addresses mobility
from PBV and not necessarily portability to another jurisdiction. In
the Appendix I Table of Contents and throughout the discussion of the
waiver and associated activity, the title is amended from ``Limit
Portability for PBV Units'' to ``Limit Choice Mobility'' for PBV Units.
(7) The development of project-base voucher units was incorrectly
included as an example of how to use waiver and associated activity
17.c on Housing Development Program. The ``Activity'' section of 17.c
reads:
Programs that use MTW Funding to acquire, renovate and/or build
affordable units for low-income families that are not public housing
units. Eligible activities may include: gap financing for non-PHA
development of affordable housing, development of project-based voucher
units or tax credit partnerships.
The ``Activity'' section of 17.c is revised to address this and
will read as follows:
Programs that use MTW Funding to acquire, renovate and/or build
affordable units for low-income families that are not public housing
units. Eligible activities may include: gap financing for non-PHA
development of affordable housing or tax credit partnerships.
Benjamin Hobbs,
Principal Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2025-04704 Filed 3-19-25; 8:45 am]
BILLING CODE 4210-67-P
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