MTW Expansion Training

1: Ensure 75% of Newly-Assisted Households Have Very Low Incomes

Requirement

At least 75 percent of households admitted by the MTW agency during each fiscal year—in the public housing, Housing Choice Voucher (HCV), and local, non-traditional programs—must be very low-income.

Assessment

Very low-income families are those whose income does not exceed 50 percent of area median income.

Compliance with this requirement will be assessed based on the number of new very low-income families housed during the MTW agency’s most recently completed fiscal year. HUD’s calculation will consider a weighted average of the percentage of very low-income households in the MTW agency’s public housing, HCV, and any local, non-traditional programs.

  • Annually, determine the total number of new admissions in each housing program type (public housing; HCV; local, non-traditional) and the number in each program type that are very low-income.
    • For the public housing and HCV programs, use initial household certification data recorded in the PIH Information Center (PIC).
    • For local, non-traditional households, HUD will direct how the initial household certification data for families housed should be collected.

Any authorized use of MTW Funding outside of the allowable uses listed in the 1937 Act constitutes a local, non-traditional activity. Local, non-traditional activities provide housing assistance and services to low-income families outside of the HCV and public housing programs.

  • For all program types combined, calculate the ratio of very low-income new admissions versus the total number of new admissions. This will provide a weighted average of very low-income households for the MTW agency’s portfolio as a whole.

Example

In the example, the HCV program falls below the 75 percent threshold (only 60 percent of HCV families are very low-income). However, when considering the entire portfolio together (HCV + public housing + local, non-traditional) it results in a 78 percent rate of new admissions in the very low-income range. Therefore, this MTW agency would be in compliance with the requirement.

New Admissions Data


Income Level Public Housing Housing Choice Vouchers Local Non-Traditional Housing Total
  # % # % # % # %
80%-50% Area Median Income 75 15% 80 40% 10 20% 165 22%
49%-30% Area Median Income 25 5% 20 10% 15 30% 60 8%
Below 30% Area Median Income 400 80% 100 50% 25 50% 525 70%
Totals 500   200   50   750  

Weighted Very Low-Income Percentage Calculation (#VLI/#Total Units)


Income Level Public Housing Housing Choice Vouchers Local Non-Traditional Housing Total
  # % # % # % # %
Very Low-Income
(Below 50% Area Median Income)
425 85% 120 60% 40 80% 585 78%