MTW Expansion Training

13. Public Housing as an Incentive for Economic Progress (PH)

The agency is authorized to extend the period for which a household can be over-income while remaining in public housing, with its subsidy, as an incentive for the economic progress and the eventual self-sufficiency of the household.

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

Activity

Public Housing as an Incentive for Economic Progress (PH)

The agency is authorized to extend the period for which a household can be over-income while remaining in a subsidized public housing unit with their subsidy as an incentive for the economic progress and the eventual self-sufficiency of the household.

Statutes and Regulations Waived

Public Housing as an Incentive for Economic Progress (PH)

Section 16(a)(5) of the 1937 Act and 24 C.F.R. 960.261.

Safe Harbor(s) - 13.

  1. The over-income limit is set at 120% of AMI.
  2. The agency must set the grace period for a household to remain in a unit while over-income at no less than 2 and no more than 3 years.
  3. The agency must inform of the household of its over-income status no less than one year prior to the end of the grace period.*
  4. The agency must terminate the household’s tenancy within one year of the end of the grace period or charge the household a monthly rent equal to the greater of: (1) the applicable Fair Market Rent (FMR); or (2) the amount of monthly subsidy for the unit, including amounts from the operating and capital fund, as determined by regulations.*