MTW Expansion Training

1. Tenant Rent Policies Waivers

The agency is authorized to adopt and implement the activities listed below for setting tenant rents in public housing, including but not limited to establishing definitions of income and adjusted income that differ from those in the current 1937 Act and its implementing regulations. The agency is authorized to adopt and implement the activities listed below to establish total tenant payments (TTP)1 in the HCV program, and/or tenant rents for tenant-based and project-based voucher (PBV) assistance that differ from the currently mandated program requirements in the 1937 Act and its implementing regulations. The agency is authorized to adopt and implement the activities listed below to calculate the tenant portion of the rent in a way that differs from the currently mandated program requirements in the 1937 Act and its implementing regulations. The agency must determine initial eligibility in accordance with 24 C.F.R. 5.609 and must comply with section 3(b)(2) of the United States Housing Act of 1937 Act (1937 Act) (42 U.S.C. §1437). For voucher activities, the Department has developed a standard rider to the HAP contract that reflects any MTW authorizations that amend the current requirements of the HAP contract.

Safe harbors marked with an asterisk (*) cannot be waived through either the Safe Harbor Waiver process or the Agency-Specific Waiver process.

Activity

1.a.  Tiered Rent (PH)

The agency may implement changes to the tenant rent calculation to create a system based upon income bands.

1.b. Tiered Rent (HCV)

The agency may implement changes to the TTP calculation to create a system based upon income bands.

Statutes and Regulations Waived

Tiered Rent (PH)

Certain provisions of sections 3(a)(1)-(2) of the 1937 Act and 24 C.F.R. 5.628, 5.634(b) and 960.253.

Tiered Rent (HCV)

Certain provisions of sections 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 5.628.

Safe Harbor(s) - 1.a. and 1.b.

  1. Rents and/or TTP (as applicable) established under this system must be set using the lowest income in each band. For example, if an income band is $2,500-$5,000 then the rent for that band must be set using $2,500.
  2. The agency must adopt a flat rent and/or TTP (as applicable) policy within each income band instead of calculating rent based on adjusted or gross income.

Activity

1.c. Stepped Rent (PH)

The agency may create a stepped rent model that increases the family’s rent payment on a fixed schedule in both frequency and amount. The fixed schedule/stepped rent model may be disaggregated from family income.

1.d. Stepped Rent (HCV)

The agency may create a stepped rent model that increases the family’s TTP on a fixed schedule in both frequency and amount. The fixed schedule/stepped rent model may be disaggregated from family income.

Statutes and Regulations Waived

Stepped Rent (PH)

Certain provisions of section 3(a)(1)-(2) of the 1937 Act and 24 C.F.R. 5.628, 5.634(b) and 960.253.

Stepped Rent (HCV)

Certain provisions of sections 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 5.628.

Safe Harbor(s) - 1.c.

  1. Rent increases may not occur more than once per year.
  2. Agency must conduct an annual impact analysis.*
  3. Agency must exclude elderly and disabled families from rent policy.*
  4. Agency must implement a hardship policy.*
  5. Services, or referrals to services, must be made available by the agency or a partner organization to support preparing families for the termination of assistance.
  6. At the Department’s request, the agency shall make available the method used to determine that rents charged to families are reasonable when compared to similar unassisted units in the market area.*
  7. Initial rents will be set at no more than 32% of a household’s gross income, or 35% of a household’s adjusted income.
  8. The PHA will establish a stepped rent increase by unit size. The increase may be no more than 4% of the Fair Market Rent for the applicable area.

Activity

1.e. Minimum Rent (PH)

The agency may set a minimum rent that is higher than allowed under current statute and regulation.

1.f. Minimum Rent (HCV)

The agency may set a minimum rent that is higher than allowed under current statute and regulation.

Statutes and Regulations Waived

Minimum Rent (PH)

Certain provisions of sections 3(a)(1)-(2) and 3(a)(3)(A) of the Act and 24 C.F.R. 5.628 and 5.630.

Minimum Rent (HCV)

Certain provisions of sections 3(a)(3)(A) and 8(o)(2)( A)-(C) of the Act and 24 C.F.R. 5.628 and 5.630.

Safe Harbor(s) - 1.e. and 1.f.

  1. Minimum rent must not exceed $130 per month.
  2. Agency must exclude elderly and disabled families from rent policy.
  3. Agency must conduct an impact analysis.*
  4. Agency must implement a hardship policy.*

Activity

1.g. Tenant Payment as a Modified Percentage of Income (PH)

The agency may modify the percentage of income used in the TTP calculation.

1.h. Tenant Payment as a Modified Percentage of Income (HCV)

The agency may modify the percentage of income used in the TTP calculation.

Statutes and Regulations Waived

Tenant Payment as a Modified Percentage of Income (PH)

Certain provisions of sections 3(a)(1)-(2) and 3(b)(4)-(5) of the 1937 of the Act and 24 C.F.R. 5.609, 5.611, 960.253 and 960.255.

Tenant Payment as a Modified Percentage of Income (HCV)

Certain provisions of sections 3(b)(4)-(5) and 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 5.609, 5.611, and 982.516.

Safe Harbor(s) - 1.g. and 1.h.

  1. The Tenant Payment in public housing and the Tenant Payment in HCV must not exceed 32% of income for non-elderly/non-disabled families if the agency is utilizing flexibility under activities 1.r., 1.t. and/or 1.v. (for 1.g.) or 1.s., 1.u. and/or 1.w. (for 1.h.).
  2. The Tenant Payment in public housing and the Tenant Payment in HCV must not exceed 35% of income for non-elderly/non-disabled families if the agency is not utilizing flexibility under activities 1.r., 1.t. and/or 1.v. (for 1.g.) or 1.s., 1.u. and/or 1.w. (for 1.h.).
  3. Agency must exempt elderly and disabled families from rent policy.
  4. Agency must conduct an impact analysis.*
  5. Agency must implement a hardship policy.*

Activity

1i. Alternative Utility Allowance (PH)

The agency may create a utility schedule(s) for all units.

1j. Alternative Utility Allowance (HCV)

The agency may create a utility schedule(s) for all HCV units based upon bedroom size, the unit location and/or the types of utilities paid by participant. The agency may establish a site-based utility allowance in PBV.

Statutes and Regulations Waived

Alternative Utility Allowance (PH)

Certain provisions of 24 C.F.R. 965.503-506.

Alternative Utility Allowance (HCV)

Certain provisions of section 8(o)(2)(D)(i) of the 1937 Act and 24 C.F.R. 982.517 and 983.301(f)(2)(ii).

Safe Harbor(s) - 1.i. and 1.j.

  1. The utility schedule must be based upon number of bedrooms, the property location, and/or the types of utilities paid by participant.
  2. The agency must review its schedule of utility allowances each year and revise its allowance for a utility category if there has been a change of 10 percent or more of the cost from the prior year. The agency must maintain information supporting its annual review of utility allowances and any revisions made in its utility allowance schedule.
  3. The agency must not include items in the utility schedule that are excluded under HUD regulations.*

Activity

1.k. Fixed Rents (PH)

The agency may establish fixed rents based on bedroom size.

1.l. Fixed Subsidy (HCV)

The agency may establish a fixed subsidy based on bedroom size. Under this model, the family pays the difference between the gross rent for the unit and the fixed subsidy as the family share/tenant rent.

Statutes and Regulations Waived

Fixed Rents (PH)

Certain provisions of sections 3(a)(1)- (2) and 3(a)(3)(A) of the 1937 Act and 24 C.F.R. 5.628, 5.634(b), and 960.253.

Fixed Subsidy (HCV)

Certain provisions of sections 8(o)(2)(A)-(C) and 8(o)(3) of the 1937 Act and 24 C.F.R. 5.628, 5.630, 982.505, 982.508, 983.351(c), 983.353(b)(1), and 983.353(d)(1).

Safe Harbor(s) - 1.k. and 1.l.

  1. Tenant rent under the public housing portion of this activity must not exceed 30% of income under the HUD rent calculation as defined by the 1937 Act.
  2. For the HCV portion of this activity, the fixed subsidy must not result in a family paying more than 30% of income under the HUD rent calculation as defined by the 1937 Act.

Activity

1.m. Utility Reimbursements (PH)

The agency may eliminate utility reimbursement payments in the public housing program when the utility allowance is greater than the total tenant payment.

1.n. Utility Reimbursements (HCV)

The agency may eliminate utility reimbursement payments in the HCV program when the utility allowance is greater than the total tenant payment.

Statutes and Regulations Waived

Utility Reimbursements (PH)

Certain provisions of section 3(a)(1) of the 1937 Act and 24 C.F.R. 5.632.

Utility Reimbursements (HCV)

Certain provisions of sections 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 982.514 and 983.353(d).

Activity

1o. Initial Rent Burden (HCV)

The agency may waive the maximum family share at initial occupancy of 40% of the family's monthly income.

Statutes and Regulations Waived

Initial Rent Burden (HCV)

Certain provisions of section 8(o)(3) of the 1937 Act and 24 C.F.R. 982.508.

Safe Harbor(s) - 1.o.

  1. Agency must implement an impact analysis.*
  2. Agency must not allow the family share at initial occupancy to exceed 60% of the family’s monthly income.

Activity

1.p. Imputed Income (PH)

Agency may base rent on an assumed number of hours worked per week.

1.q. Imputed Income (HCV)

Agency may base TTP on an assumed number of hours worked per week.

Statutes and Regulations Waived

Imputed Income (PH)

Certain provisions of sections 3(a)(1) and 3(b)(4)-(5) of the 1937 Act and 24 C.F.R. 5.609, 5.611, 5.628, 960.255, 960.253, and 960.257.

Imputed Income (HCV)

Certain provisions of sections 3(b)(4)-(5) and 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 5.609, 5.611, 5.628, and 982.516.

Safe Harbor(s) - 1.p. and 1.q.

  1. The rent calculation must be based on no more than 15 hours worked per person, per week at the Federal Minimum Wage.
  2. The rent calculation must be based on no more than 30 hours worked per week per household at the Federal Minimum Wage.
  3. Agency must conduct an impact analysis.*
  4. Agency must exempt elderly and disabled families from rent policy.*
  5. Agency must implement a hardship policy.*

Activity

1.r. Elimination of Deduction(s) (PH)

The agency may eliminate one, some, or all deductions.

1.s. Elimination of Deduction(s) (HCV)

The agency may eliminate one, some, or all deductions.

Statutes and Regulations Waived

Elimination of Deduction(s) (PH)

Certain provisions of sections 3(a)(1), 3(b)(4)-(5) of the 1937 Act and 24 C.F.R. 5.611, 960.253, 960.255, and 960.257.

Elimination of Deduction(s) (HCV)

Certain provisions of sections 3(a)(1), 3(b)(4)-(5) and 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 5.611, and 982.516.

Safe Harbor(s) - 1.r. and 1.s.

  1. Agency must conduct an impact analysis.*
  2. Agency must exempt elderly and disabled families from rent policy.*
  3. Agency must implement a hardship policy.*

Activity

1.t. Standard Deductions (PH)

The agency may replace existing deduction(s) with a single standard deduction(s).

1.u. Standard Deductions (HCV)

The agency may replace existing deduction(s) with a single standard deduction(s).

Statutes and Regulations Waived

Standard Deductions (PH)

Certain provisions of sections 3(a)(1) and 3(b)(4)-(5) of the 1937 Act and 24 C.F.R. 5.611, 960.253, 960.255, and 960.257.

Standard Deductions (HCV)

Certain provisions of sections 3(a)(1), 3(b)(4)-(5), and 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 5.611, and 982.516.

Safe Harbor(s) - 1.t. and 1.u.

  1. Agency must conduct an impact analysis.*
  2. Agency must implement a hardship policy.*

Activity

1.v. Alternative Income Inclusions/Exclusions (PH)

The agency may establish alternative policies to include or exclude certain forms of participant income during the income review and rent calculation process.

1.w. Alternative Income Inclusions/Exclusions (HCV)

The agency may establish alternative policies to include or exclude certain forms of participant income during the income review and rent calculation process.

Statutes and Regulations Waived

Alternative Income Inclusions/Exclusions (PH)

Certain provisions of sections 3(a)(1) and 3(b)(4)-(5) of the 1937 Act and 24 C.F.R. 5.609, 5.611, 960.253, 960.255, and 960.257.

Alternative Income Inclusions/Exclusions (HCV)

Certain provisions of sections 3(a)(1), 3(b)(4)-(5), and 8(o)(2)(A)-(C) of the 1937 Act and 24 C.F.R. 5.609, 5.611, and 982.516.

Safe Harbor(s) - 1.v. and 1.w.

  1. Agency must exempt elderly and disabled individuals from this rent determination policy.