Notice Section 1.5.F Moving to Work (MTW) Agencies
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Single Fund Flexibility for MTW Agencies
The RAD Notice states that PHAs may not use Public Housing funds (i.e., Operating and Capital) after a RAD conversion has closed to support a post-conversion RAD PBV project, unless these planned expenditures were identified in their Financing Plans. Is there an exception to this rule for Moving to Work (MTW) PHAs?Yes, an MTW PHA may use Public Housing funds (and Housing Choice Voucher funds) after closing to support a converted RAD PBV project, as this would be an allowable use of MTW funding flexibility (i.e., fungibility) under the MTW Agreement. The MTW Agreement allows MTW PHAs to use Public Housing Funds for an eligible Section 8 purpose. These planned expenditures must be included in the MTW PHA’s approved Annual MTW Plan in Section V – MTW Sources and Uses of Funds under “Planned Use of Single Fund Flexibility.”
Submission of Amendment to MTW Plan for MTW PHAs
I am an MTW PHA. What process should I follow for submitting and receiving approval of the amendment to my MTW Plan as required by the RAD Notice?A RAD conversion, as noted in Section 1.5(E) of PIH Notice 2012-32, REV 2, requires an amendment to the MTW Plan for MTW agencies. The PHA's MTW representative should send the RAD MTW Plan revisions to the MTW Office and copy the Field Office. The PHA must also upload a memo noting their submission and date to the RAD Resource Desk. For MTW PHAs submitting a regularly scheduled MTW Plan, the Public Housing Field and MTW Offices should follow their regular Plan review and approval process. The MTW Office will send an approval letter, or comments that need to be addressed in the Plan, to the MTW PHA, with a copy to the appropriate Public housing Field Office director and RAD TM, within 75 days of submission. The MTW PHA will upload the approval letter to the RAD Resource Desk. Note that the RADPHAPlan@hud.gov inbox is no longer in service and should not be utilized.
MTW Fungibility
The Notice (REV-2, pages 48-49) specifies that "MTW Fungibility" (the ability of the MTW agency to use its block grant funds to set initial contract rents) is available only if the PHA has submitted RAD applications for two or more projects. Is OK if one project is the first phase and the second project is the second phase, of the same overall project?Yes, that is OK so long as the two projects (phase one and phase two) are separate AMPs within PIC.
Utilizing MTW Funds to Supplement Rents After Conversion
If an MTW Agency sets a rent for the HAP contract at the time of conversion, can the Agency go back at a future date (say, year 5) and increase the rent for the HAP contract beyond the standard OCAF adjustments?No. The RAD Notice (Section 1.6.B.6) and the HAP contracts require that contract rents may only be adjusted by the OCAF. The RAD notice further specifies that MTW agencies may not alter this requirement.