Innovations in the Moving to Work Demonstration December 2014 Sponsored by: Public and Affordable Housing Research Corporation, a HAI Group company Cheshire, CT Authors: Jill Khadduri Melissa Vandawalker Rebecca Cohen Jeffrey Lubell With: Larry Buron Lesley Freiman Eliza Kean Abt Associates Cambridge, MA and Bethesda, MD Acknowledgements Authors Jill Khadduri, Melissa Vandawalker, Rebecca Cohen, Jeffrey Lubell With Larry Buron, Lesley Freiman, Eliza Kean Document Collection Larry Buron, Lesley Freiman, Jill Hamadyk, Eliza Kean, Amar Patel, Louise Rothschild, Galen Savidge- Wilkins, Melissa Vandawalker Case Study Site Visitors Larry Buron, Eliza Kean, Jill Khadduri, Jeffrey Lubell, Melissa Vandawalker The authors would like to thank Keely Stater, the study’s project officer at HAI Group and the advisors from the public housing industry who helped shape this study. They would also like to thank the internal Abt Associates quality reviewer, Jennifer Turnham. CONTENTS Table of Contents Executive Summary ....................................................................................................................................... 1 MTW Innovations ...................................................................................................................................... 1 Increasing Cost Effectiveness ................................................................................................................ 2 Increasing the Quality and Quantity of Affordable Housing ................................................................. 3 Increasing Self-Sufficiency .................................................................................................................... 4 Promoting Residential Stability for Targeted Households .................................................................... 5 Expanding the Geographic Scope of Assisted Housing ......................................................................... 6 Case Study PHAs ....................................................................................................................................... 7 Focus of Innovations at the Case Study PHAs ....................................................................................... 7 Evolution of Participation in MTW ........................................................................................................ 8 Changes to Agency Culture and Decision-Making ................................................................................ 8 Performance Measurement .................................................................................................................. 9 Next Steps ............................................................................................................................................... 10 Chapter 1. Introduction ................................................................................................................................ 1 The Moving to Work Program .................................................................................................................. 2 MTW Statutory Provisions .................................................................................................................... 2 HUD Implementation of MTW .............................................................................................................. 3 Evaluations of MTW .............................................................................................................................. 4 Study Design ............................................................................................................................................. 5 Defining “Innovation” ........................................................................................................................... 6 Web Survey ........................................................................................................................................... 6 Document Review ................................................................................................................................. 8 Interviews with MTW Agency Staff ....................................................................................................... 9 MTW Case Studies .............................................................................................................................. 10 Chapter 2. Innovations that Increase Cost Effectiveness ........................................................................... 12 Changing the Timing of Recertification ................................................................................................... 13 Simplifying the Treatment of Income and Assets ................................................................................... 16 Asset Verification and Use in Income Calculations ............................................................................. 20 Income Deductions and Exclusions ..................................................................................................... 20 Simplified Rent Calculation ................................................................................................................. 21 Simplifying the Inspection Process ......................................................................................................... 23 Alternative Inspection Schedules ........................................................................................................ 26 Inspecting Project-Based Units Owned by the PHA ............................................................................ 27 Abt Associates Moving to Work Innovations Report ▌pg. i CONTENTS Landlord Self-Certification .................................................................................................................. 27 Alternative Inspection Standards ........................................................................................................ 28 Modifying the Rent Reasonableness Process ......................................................................................... 28 Simplifying Utility Allowances ................................................................................................................. 29 Documenting and Using Administrative Cost Savings ............................................................................ 30 Problems with Measuring Cost Savings .............................................................................................. 30 Offsets to Cost Savings ........................................................................................................................ 30 Using Cost Savings to Provide Better Service ..................................................................................... 31 Chapter 3. Innovations that Increase the Quality and Quantity of Affordable Housing ............................ 32 Increasing the Number of Households Served by Lowering Per-Unit Costs ........................................... 32 Increasing the Quality of Public Housing by Investing in Modernization and Revitalization Activities .. 34 Preserving Subsidized Rental Housing that is At-Risk ............................................................................. 36 Using Project-Based Vouchers to Expand the Supply of Dedicated, Quality Affordable Rental Housing ................................................................................................................................................................ 38 Using MTW Single-Fund Flexibility to Invest in Other Forms of Affordable Housing ............................. 42 Serving More Households over Time by Adopting Self-Sufficiency or Time Limit Policies .................... 42 Chapter 4. Innovations that Increase Self-Sufficiency ................................................................................ 43 Rent Reform and Incentivizing Work ...................................................................................................... 45 Work Requirements ............................................................................................................................ 49 Time Limits .......................................................................................................................................... 50 Other Changes to the Rules of Housing Subsidies .............................................................................. 51 Services Supporting Work ....................................................................................................................... 51 Modifications to the Family Self-Sufficiency Program’s Escrow Policies ................................................ 53 Designing New Self-Sufficiency Policies .................................................................................................. 55 Aligning Housing Assistance with Welfare Reform ............................................................................. 55 Creating Exemptions for Households Not Expected to Work ............................................................. 55 Serving More Households with the Same Budget .............................................................................. 55 Protecting the Housing Authority’s Budget ........................................................................................ 56 Addressing Hardships for Particular Households ................................................................................ 56