MTW Expansion Training

17. Local, Non-Traditional Activities

MTW Funding can be utilized per statute and regulation on the eligible activities listed at sections 9(d)(1), 9(e)(1), and 8(o) of the 1937 Act. Any authorized use of these funds outside of the allowable uses listed in the 1937 Act constitutes a local, non-traditional activity. The agency is authorized to implement the local, non-traditional activities listed below to provide a rental subsidy to a third-party entity to provide housing and supportive services to eligible low-income participants, and to contribute MTW Funding to the development of affordable housing. Families served through the activities described below must be at or below 80% of Area Median Income. Implemented activities must meet one of the three MTW statutory objectives of increasing the efficiency of federal expenditures, incentivizing self-sufficiency of participating families, and increasing housing choice for low-income families. The use of MTW Funding must be consistent with the requirements of 2 C.F.R. 200 and other basic requirements for the use of federal assistance. The agency must determine the eligibility of families in accordance with 24 C.F.R. 5.609 and with section 3(b)(2) of the Act. Local, non-traditional activities must fall within one of the three categories below and comply with PIH Notice 2011-45 or any successor notice/and or guidance.

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

Activity

17.a. Rental Subsidy Programs

Programs that use MTW Funding to provide a rental subsidy to a third-party entity (other than a landlord or tenant) who manages intake and administration of the subsidy program to implement activities, which may include: supportive housing programs and services to help homeless individuals and families reach independence; supportive living; shallow subsidies; homeless/transitional housing programs; or programs that address special needs populations.

Statutes and Regulations Waived

Local, Non-Traditional Activities

MTW Funding can be utilized per statute and regulation on the eligible activities listed at sections 9(d)(1), 9(e)(1), and 8(o) of the 1937 Act. Any authorized use of these funds outside of the allowable uses listed in the 1937 Act constitutes a local, non-traditional activity.

Safe Harbor(s) - 17.a.

  1. The agency must not spend more than 10% of its HAP budget on local, non-traditional activities.
  2. Families receiving housing or services through local, non-traditional activities must meet the HUD definition of low-income.*
  3. The agency is subject to Notice PIH 2011-45 or any successor notice and/or guidance.*
  4. Any MTW Funding awarded to a third-party provider must be competitively bid.*

Activity

17.b. Service Provision

The provision of HUD-approved self-sufficiency or supportive services using MTW Funding that are not otherwise permitted under the public housing and HCV programs, or that are provided to eligible low-income individuals who do not receive either public housing or HCV assistance from the PHA. Eligible activities may include: services for participants of other PHA- owned or managed affordable housing that is not public housing or HCV assistance; services for low-income non-participants; services and/or incentives to attract applicants to developments, or portions thereof, which can be difficult to market; or supportive services.

Statutes and Regulations Waived

Local, Non-Traditional Activities

MTW Funding can be utilized per statute and regulation on the eligible activities listed at sections 9(d)(1), 9(e)(1), and 8(o) of the 1937 Act. Any authorized use of these funds outside of the allowable uses listed in the 1937 Act constitutes a local, non-traditional activity.

Safe Harbor(s) - 17.b.

  1. The incentive must not be in the form of a deduction to the household’s rent contribution.*
  2. The amount of the incentive must not equal more than one month of the applicable unit’s rent.*
  3. The agency must not spend more than 10% of its HAP budget on local, non-traditional activities.
  4. Families receiving housing or services through local, non-traditional activities must meet the HUD definition of low-income.*
  5. The agency is subject to Notice PIH 2011-45 or any successor notice and/or guidance.*
  6. Any MTW Funding awarded to a third-party provider must be competitively bid.*

Activity

17.c. Housing Development Programs

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.

Statutes and Regulations Waived

Local, Non-Traditional Activities

MTW Funding can be utilized per statute and regulation for the eligible activities listed at sections 8(o), 9(d)(1), and 9(e)(1) of the 1937 Act. Any authorized use of these funds outside of the allowable uses listed in the 1937 Act constitutes a local, non-traditional activity.

Safe Harbor(s) - 17.c.

  1. The agency must not spend more than 10% of its HAP budget on local, non-traditional activities.
  2. Families receiving housing or services through local, non-traditional activities must meet the HUD definition of low-income.*
  3. The agency is subject to Notice PIH 2011-45 or any successor notice and/or guidance.*
  4. Agency must comply with section 30 of the 1937 Housing Act.*
  5. Any MTW Funding awarded to a third-party provider must be competitively bid.*