HUD PIH Notice § 2011-45
Parameters for Local, Non-Traditional Activities under the Moving to Work Demonstration Program (HUD PIH Notices)
HUD guidance — not codified law
In Force
Verified 10/14/2026 · Next check 10/21/2026
effective 10/14/2026FederalAffordable Housing ProgramsOperative Text
HUD PIH Notice § 2011-45
U.S. Department of Housing and Urban Development
Office of Public and Indian Housing
SPECIAL ATTENTION OF: NOTICE PIH-2011-45 (HA)
Regional and Field Office Directors of Public Issued:
August 15, 2011
Housing; Section 8 Financial Management Center;
Moving to Work Public Housing Agencies Expires: This notice will remain
in effect until supplemented
by subsequent HUD directive or
guidance.
_______________________________
Cross References: PIH
Notice 2011-31
Subject: Parameters for Local, Non-Traditional Activities under the Moving
to Work Demonstration Program
1. Purpose. This notice clarifies HUD policies, Federal statutes and
regulations that apply to local, non-traditional activities implemented
under the Moving to Work (MTW) demonstration program.
2. Applicability. This notice applies to all MTW PHAs that have been
authorized through their MTW Agreements to implement local, non-
traditional activities, defined as those which use MTW funds provided
under the MTW block grant for activities outside of the Housing Choice
Voucher and public housing programs established in Sections 8 and 9 of
the U.S. Housing Act of 1937 (1937 Act).
• Activities Implemented Prior to Issuance of this Notice
• HUD will work with MTW PHAs to bring into compliance any
activities that were approved prior to issuance of this
notice and that are not in compliance with the parameters
set forth in this notice.
• MTW PHAs that have undertaken local, non-traditional
development activities prior to issuance of this notice
will not face penalty for failure to comply with the
parameters set forth in this notice. This exemption does
not apply to civil rights laws and regulations.
3. Background. MTW agencies have the authority to use their MTW funds to
implement local, non-traditional activities, as long as they have this
authority formalized in their Standard MTW Agreement (MTW Agreement),
serve exclusively families at or below 80% of area median income (AMI)
and use the MTW funds for activities that 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. Per the MTW
Agreement, MTW agencies prepare and submit an Annual MTW Plan. The
Department must approve each Annual MTW Plan, and accordingly has broad
authority to accept or reject provisions of the Plan that fail to comport
with other applicable laws and such terms as the Secretary may require.
An MTW PHA may combine its public housing and Housing Choice Voucher
funding, as provided under Sections 8 and 9 of the 1937 Act, in order to
provide housing assistance and services for low-income families. The MTW
statute (Section 204(a) of the Omnibus Consolidated Rescissions and
Appropriations Act of 1996, Pub. L. 104-134) in part states:
“Under the demonstration, notwithstanding any provision of the United
States Housing Act of 1937 except as provided in subsection (e), an
agency may combine operating assistance provided under section 9 of
the United States Housing Act of 1937, modernization assistance
provided under section 14 of such Act, and assistance provided under
section 8 of such Act for the certificate and voucher programs, to
provide housing assistance for low-income families, as defined in
section 3(b)(2) of the United States Housing Act of 1937, and services
to facilitate the transition to work on such terms and conditions as
the agency may propose and the Secretary may approve.”
The Department has interpreted this statute broadly to mean that public
housing and Housing Choice Voucher funding may be used to provide housing
assistance and services to low-income families outside of the public
housing and Housing Choice Voucher regulations, and the Department
granted the authority to use MTW funds in this way to several MTW PHAs
pursuant to their Original MTW Agreements.
When transitioning to the Standard MTW Agreement in 2008, the Department
made a policy decision that only those MTW agencies implementing local,
non-traditional activities pursuant to their Original MTW Agreements
would be allowed to retain this authorization under the Standard MTW
Agreement. Several other MTW agencies requested to have the authority to
implement local, non-traditional activities in order to serve more
families through activities such as leasing additional MTW vouchers,
offering residents stronger supportive services through partnerships with
providers, and using tax credit programs to provide more affordable
housing units.
In October 2010, HUD made the decision to allow all MTW agencies to use
their MTW funds to implement local, non-traditional activities, provided
those activities continue to serve families at or below 80% AMI and meet
one of the three MTW statutory objectives. HUD sent a letter to all MTW
agencies that did not already have this authority in their MTW Agreement,
informing them of the decision, outlining the administrative procedures
for requesting the authority to implement local, non-traditional
activities, and explaining how to amend the MTW Agreement to add the
following standard language:
“The Agency and HUD acknowledge that Section 204(a) of the Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Pub. L. 104-
134) provides that an agency participating in the MTW demonstration
program may combine public housing operating and capital funds
provided under Section 9 of the U.S. Housing Act of 1937 (the “1937
Act”) and voucher program funds provided under Section 8 of the 1937
Act “to provide housing assistance for low-income families, as defined
in section 3(b)(2) of the 1937 Act, and services to facilitate the
transition to work on such terms and conditions as the agency may
propose and the Secretary may approve.
Notwithstanding any language to the contrary, those provisions in this
Agreement or its attachments that restrict the use of funds to
Sections 8 and 9 are repealed, and the Agency may use MTW Funds to
provide housing assistance for low-income families, as defined in
section 3(b)(2) of the 1937 Act, and services to facilitate the
transition to work, whether or not any such use is authorized by
Sections 8 or 9 of the 1937 Act, provided such uses are consistent
with other requirements of the MTW statute [i.e., including but not
limited to the requirements to maintain a comparable mix of families
and serve substantially the same number of families as would have been
assisted if the Agency were not in the MTW demonstration, assuring
that housing assisted under the demonstration meets housing quality
standards established or approved by the Secretary, that at least 75
percent of the families assisted be very low income families, that the
agency has established a reasonable rent policy that is designed to
encourage employment and self-sufficiency by participating families,
that the requirements of sections 12 of the 1937 Act are applied to
any housing assisted under the demonstration other than housing
assisted solely because of occupancy by families receiving tenant-
based assistance, and that Section 18 of the 1937 Act shall continue
to apply to public housing notwithstanding the use of any use of the
housing under the demonstration] and have been proposed in an Agency’s
Annual MTW Plan and approved by HUD.
Notwithstanding the above, such funds remain Federal funds, and are
subject to any and all other Federal requirements outside of the 1937
Act (e.g., including but not limited to Appropriations Acts,
competitive HUD notices of funding availability under which the Agency
has received an award, state and local laws, Federal statutes other
than the 1937 Act, and OMB Circulars and requirements), as modified
from time to time.”
MTW PHAs whose MTW Agreements do not have the above language may not
implement local, non-traditional activities. However, all MTW agencies
may at any time request the authority to implement local, non-traditional
activities by following the administrative procedures detailed in Section
6 of this Notice.
4. Examples of Local, Non-Traditional Activities. MTW Funds awarded to a
PHA under Sections 8(o), 9(d), and 9(e) of the 1937 Act 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 use of these funds
outside of the allowable uses listed in the 1937 Act constitutes a local,
non-traditional activity.
HUD organizes local, non-traditional activities into four categories.
The table below defines each category and provides examples of possible
activities, though the list of possible activities is not exhaustive.
MTW agencies with the authorization to implement local, non-traditional
activities are at liberty to propose a large variety of concepts, which
HUD reviews and approves via the Annual MTW Plan.
|Category |Definition |Examples |
|Rental Subsidy |Programs that use MTW funds |Supportive housing |
|Programs |to provide a rental subsidy |programs and services |
| |to a third-party entity |Homeless/transitional |
| |(other than a landlord or |housing programs and |
| |tenant) who manages intake |services |
| |and administration of the |Support of existing |
| |subsidy program. |local rental subsidy |
| | |programs |
| | |Creation of unique |
| | |local rental subsidy |
| | |programs to address |
| | |special needs |
| | |populations |
|Homeownership |Programs in which a PHA uses |Homeownership |
|Programs |MTW funds to act as a |assistance programs in |
| |mortgager in providing |which the PHA |
| |homeownership assistance to |guarantees a mortgage |
| |low-income families. |or acts as a mortgager |
|Housing |Programs that use MTW funds |Gap financing for |
|Development |to acquire, renovate and/or |non-PHA development of |
|Programs |build units that are not |affordable housing |
| |public housing or Housing |Tax credit partnerships|
| |Choice Voucher units. | |
|Service |The provision of HUD-approved|Services for residents |
|Provision |self-sufficiency or |of other PHA-owned or |
| |supportive services that are |managed affordable |
| |not otherwise permitted under|housing that is not |
| |the public housing and |public housing or |
| |Housing Choice Voucher |Housing Choice Voucher |
| |programs, or that are |assistance |
| |provided to eligible |Services for low-income|
| |individuals who do not |non-residents |
| |receive either public housing|Supportive services |
| |or Housing Choice Voucher |subsidies or budgets |
| |assistance from the PHA. |for low-income families|
5. Parameters on Local, Non-Traditional Activities. Parameters, for
purposes of this Notice, are defined as the regulations, statutes and
guidelines that cannot be waived under MTW, and which serve as the
boundaries in implementing all MTW activities, including local, non-
traditional activities.
A. General Parameters. These parameters apply to all local, non-
traditional activities implemented under MTW.
• Statutory objectives. Any proposed activity has to meet at least
one of the three MTW statutory objectives listed in the MTW
Statute, and must receive HUD approval via the Annual MTW Plan
prior to implementation.
• Income eligibility. MTW funds can be used only to serve eligible
families at or below 80% of AMI, consistent with other
requirements (see the last bullet of this section).
• Fair housing and equal opportunity. Recipients of MTW funds for
local, non-traditional activities are considered recipients of
federal financial assistance and must comply with civil rights
requirements in 24 CFR 5.105(a), including, but not limited to,
the Fair Housing Act; Title VI of the Civil Rights Act of 1964;
Section 504 of the Rehabilitation Act of 1973; Title II of the
American Disabilities Act of 1990; and regulations to
affirmatively further fair housing. It is the duty of the MTW
PHA to ensure that recipients of funds for local, non-
traditional activities are in compliance with civil rights laws
and regulations.. The Office of Public and Indian Housing (PIH)
and the Office of Fair Housing and Equal Opportunity (FHEO) have
jointly published a notice, PIH Notice 2011-31/FHEO Notice 2011-
1, that provides detailed information regarding which statutes
and regulations are applicable.
• Labor standards. Davis-Bacon labor requirements, pursuant to
Section 12 of the 1937 Act, continue to apply at both public
housing and non-public housing homeownership properties (at 24
CFR 906.37) as well as at all units acquired, renovated and/or
built using MTW funds.
• Economic Opportunities for Low- and Very low-Income Persons
(Section 3). Section 3 of the Housing and Urban Development Act
of 1968 requires recipients to ensure, to the greatest extent
feasible, that training, employment, and contracting will be
directed to low- and very low-income persons, particularly those
who are recipients of government assistance for housing, and to
business concerns that provide economic opportunities to low-
and very-low income persons in the area in which the project is
located. Recipients of covered funding are required to comply
with the requirements of 24 CFR part 135, particularly subpart B
– Economic Opportunities for Section 3 Residents and Section 3
Business Concerns, and Subpart E – Reporting and Recordkeeping.
Additional information on the requirements can be found at:
http://www.hud.gov/offices/fheo/section3/section3.cfm.
• Community service requirement. The community service
requirement, detailed in Section 12 of the 1937 Act, applies
only to non-exempt adult residents of a public housing project
and thus does not apply to non-public housing families assisted
through local, non-traditional MTW programs, except for those
exempted under Section 12(c) of the Act. However, if an MTW
agency creates units through its local, non-traditional MTW
authority which are later added to the public housing inventory,
families residing in such units would then become subject to the
community service requirement.
• Court orders. The PHA will comply with the terms of any
applicable court orders, consent decrees or Voluntary Compliance
Agreements that are in existence or may come into existence
during the term of the PHA’s participation in MTW.
• Inspections. For any unit receiving assistance from a PHA, the
PHA must ensure that the property is safe, decent, sanitary, and
in good repair, according to an inspection protocol established
or approved by the Secretary. This does not preclude the PHA
from using approved alternate MTW inspection protocols as long
as such protocol meets the housing quality standards established
or approved by the Secretary. Further, this requirement does
not necessitate units meeting HUD inspection standards prior to
the completion of rehabilitation work, as long as the units are
not occupied during the rehabilitation period.
PHAs are still subject to state and local building codes, and
housing codes, and state and local public housing law on
inspections. Projects must meet HUD Housing Quality Standards
(HQS) performance requirements (as provided in 24 CFR 982.401),
both at commencement of occupancy and throughout the term of the
time restriction on affordable units. This requirement applies
to all local, non-traditional MTW units/subsidies, including
assistance provided to projects as gap financing.
• Expenditure of Federal funds. PHAs must maintain documentation
which verifies compliance with their General Depository
Agreement (HUD-51999) and any other Treasury expenditure
requirements related to the expenditure of Federal funds upon
drawdown from the Line of Credit Control System (LOCCS).
• Other requirements. Other federal, state and local requirements
applicable to all federally assisted housing shall continue to
apply notwithstanding any term contained in a PHA’s MTW
Agreement or any authorization granted thereunder. Accordingly,
if any requirement applicable to public housing contains a
provision that conflicts or is inconsistent with any
authorization granted in its MTW Agreement, the MTW PHA remains
subject to the terms of that requirement. Such requirements
include, but are not limited to, the following: Appropriations
Acts, competitive HUD notices of funding availability under
which the PHA has received an award, state and local laws,
Federal statutes other than the 1937 Act, and OMB Circulars and
requirements (including regulations promulgated by HUD
thereunder in 24 C.F.R. part 85).
B. Rental Subsidy Programs. These parameters apply to all local, non-
traditional MTW rental subsidy programs.
• Hardship policy for rent reform activities. MTW PHAs must
provide a hardship policy for all rent policies that deviate
from the regulations in terms of the way rent is calculated for
an assisted household (See 24 C.F.R. 960, Subpart C. Rent and
Reexamination for regulations pertaining to the public housing
program and 24 C.F.R. 982, Subpart K. Rent and Housing
Assistance Payment for regulations pertaining to the Housing
Choice Voucher program).
• Calculation of income for eligibility and rents. The MTW statute
allows HUD to provide MTW PHAs with relief from portions of the
1937 Act and its implementing regulations. However, housing
assistance and services can only be provided to low-income
families, as defined in section 3(b)(2) of the United States
Housing Act of 1937. Additionally, the MTW statute at Section
204(c)(3)(A) states that 75 percent of the families assisted by
participating demonstration public housing authorities shall be
very low-income families, as defined in section 3(b)(2) of the
United States Housing Act of 1937. Finally, the MTW statute
also requires that the PHA continue to “assist substantially the
same total number of eligible low-income families” (Section
204(c)(3)(C)).
An interpretation of very low-income and low- income to include
additional income sources could disqualify families eligible
under the section 3(b)(2) definition as being over-income, and
conversely excluding income sources could qualify otherwise
ineligible families. HUD has defined “Annual Income” at 24 CFR
5.609. This regulation defines what annual income includes and
does not include. To ensure that the above referenced
requirements are met; MTW agencies must determine the
eligibility of families in accordance with the provisions of
that regulation.
However, MTW agencies do have the ability under the MTW statute
and their MTW Agreements to calculate rents at variance with
statute and regulation, and this could include interpretations
of annual income as set forth at 24 CFR 5.609.
Notwithstanding the above, HUD does not have the authority to
waive other Federal statutes, so annual income calculations for
individuals assisted under MTW programs can not include amounts
specifically excluded by any other Federal statute from
consideration as income for the purposes of determining either
eligibility or rents. Consequently, for any rental subsidy
program created with local, non-traditional MTW flexibility, the
regulation pertaining to the calculation of income found in 24
CFR 5.609(c)(17) must apply to both eligibility and rent
determinations.
C. Homeownership Programs. These parameters apply to all programs in
which a PHA uses MTW funds to act as a mortgager in providing
homeownership assistance to low-income families.
• Principal Residence Requirement. The property sold to an
eligible family must be used as the principal residence of the
family, and homeownership assistance may only be paid while the
family is residing in the home. (See public housing
homeownership regulations at 24 CFR 906.15b and Section 8
homeownership regulations at 24 CFR 982.633a.)
• Financial capacity requirement. Eligibility for MTW
homeownership programs must be limited to families who are
capable of assuming the financial obligations of homeownership,
under minimum income standards for affordability, taking into
account the unavailability of financial assistance from the PHA.
A homeownership program may, however, take account of any
available subsidy from other sources. (See public housing
homeownership regulations at 24 CFR 906.15c.)
D. Housing Development Programs. These parameters apply to activities
that involve the development of local, non-traditional affordable
units, including the provision of MTW funds to acquire, renovate
and/or build units that are not public housing or Housing Choice
Voucher units. Local, non-traditional affordable units are defined as
units that will be rented to or sold to families whose incomes are at
or below 80% of AMI, but that are not public housing or project-based
Housing Choice Voucher units. If a project includes the development
of public housing units, these parameters do not apply and the PHA
must follow the regulations for public housing development, as
provided in 24 CFR 941. These parameters also do not apply to the
allowable use of MTW funds to pay for operating costs related to
affordable housing.
• Allowable Uses of MTW Funds for Development
1) MTW funds may be used to acquire, renovate and/or develop
local, non-traditional affordable units.
2) The local, non-traditional affordable units may be either
owned by the PHA, an affiliate or instrumentality of the PHA,
or by another public or private entity.
3) MTW funds may be spent directly by a PHA to acquire,
renovate or build local, non-traditional affordable units, or
MTW funds may be granted or loaned by a PHA to another entity
which will acquire, renovate or develop and own the local, non-
traditional affordable units. Such units are made available
in the project, by regulatory and operating agreement, master
contract, individual lease, condominium or cooperative
agreement, or equity interest.
• Limitations on the Use of MTW Funds for Development
1) As discussed earlier in this notice, the MTW statute only
permits MTW funds to be used to fund affordable units. HUD
requires MTW agencies to utilize a pro rata calculation to
ensure that the percent of MTW funds contributed to total
project cost does not exceed the percentage of affordable
units in the project (including public housing, Housing Choice
Voucher, and local, non-traditional affordable units). For
example, if there are 120 units in a project and 50 are
affordable, the amount of MTW funds contributed to the project
cannot exceed 42% of the total project cost.
2) Projects must be within the HUD Total Development Cost and
Housing Cost Cap Limits imposed on the development of
affordable units in a project or within a PHA’s alternate cost
formula for development and redevelopment activities, if
approved by HUD. (See also HUD PIH Notice 2010-20, which
establishes public housing development cost limits.) All MTW
funds being put into the project must be included in the TDC
analysis.
3) Projects must comply with the HUD Cost Control and Safe
Harbor Standards for Rental Mixed-Finance Development, dated
April 2003
(http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_9880.p
df).
4) Any housing not developed as public housing within a PHA’s
Faircloth limit (i.e., the statutory limit pursuant to Section
9(g)(3)(B) of the United States Housing Act of 1937, which
states that PHAs cannot receive funding for units that they
construct, acquire or rehabilitate that exceed the number of
units the PHA had as of October 1, 1999 ) will not be included
as additional public housing units in future Operating Subsidy
or Capital Fund calculations.
• Time Restrictions on Local, Non-Traditional Affordable Units.
PHAs using MTW funds for acquisition, renovation or construction
of local, non-traditional affordable units must ensure that the
units remain affordable for a specified amount of time. The
time restriction may vary from project to project, given the
goals of a PHA, the project economics, market conditions and
other factors. The following are minimum guidelines:
1) Local, non-traditional affordable units must remain
affordable for a minimum of 30 years, unless otherwise
approved by HUD.
2) If there is a loan of MTW funds to the project, the local,
non-traditional affordable units must remain affordable for
the longer of either the term of the loan or 30 years, unless
otherwise approved by HUD. For a shorter term to be
considered by HUD, the loan of MTW funds to the property would
need to be repaid in full by the conclusion of the shortened
term.
• Legally Binding Commitments. PHAs must record a use agreement,
covenant, or other document acceptable to HUD on the property
where the local, non-traditional affordable units are located,
which sets forth the conditions imposed on the units. If there
is an existing agreement or covenant recorded on the property
related to the local, non-traditional affordable units, with HUD
approval, the PHA may rely on this document rather than record
its own.
• Continuing Requirements. PHAs developing local, non-traditional
affordable units through acquisition, renovation or new
construction must comply with the following provisions, which
cannot be waived through a PHA’s MTW status. PHAs must maintain
documentation which verifies compliance with the following:
1) Environmental Review, pursuant to 24 CFR part 58 or part 50,
as detailed in Section VII of the FHEO and PIH joint notice
on non-discrimination and equal opportunity requirements for
PHAs, PIH Notice 2011-31/FHEO Notice 2011-1.
2) Site and Neighborhood Standards, pursuant to 24 CFR 941.202
or any alternate MTW standards for determining the location
of existing, newly constructed, or substantially
rehabilitated housing to receive subsidy approved by HUD.
Any alternate site and neighborhood standards for the
location of existing, newly constructed, or substantially
rehabilitated housing to receive subsidy must be in
compliance with Title VI of the Civil Rights Act of 1964 and
Section 504 of the Rehabilitation Act of 1973. Please see
joint PIH-FHEO notice 2011-31.
3) Subsidy Layering Review in relation to the provision of
Housing Choice Vouchers and the use of Low Income Housing Tax
Credits
4) Demolition and disposition requirements pursuant to Section
18 of the 1937 Act and 24 CFR 970, as applicable to an
existing public housing property being demolished or
disposed.
E. Service Provision. These parameters apply to the provision of HUD-
approved self-sufficiency or supportive services that are not
permitted under the public housing and Housing Choice Voucher
programs, or that are provided to eligible individuals who do not
receive either public housing or Housing Choice Voucher assistance
from the PHA.
• General parameters in Section 5.A. of this Notice apply. HUD
has not developed additional parameters at this time.
6. HUD Approval Process. PHAs proposing local, non-traditional activities
must comply with the following:
• Authority to Implement Local, Non-Traditional Activities. PHAs
must first receive authority from HUD prior to implementing
local, non-traditional MTW activities.
If a PHA does not already have this authorization, the PHA must
submit a proposal to HUD describing: a) the proposed local, non-
traditional activities, including parameters for implementation,
b) how this activity relates to at least one of the three
statutory MTW objectives, c) whether more families will be
served, d) how the activity will be evaluated e) certifying that
the funds will be used to serve families under 80% of AMI, and
f) a risk assessment for each non-traditional activity including
a cost benefit analysis.. The PHA should (to the extent
feasible) include in the proposal information on specific
properties identified for acquisition, renovation and/or
development. Properties identified for development in the
future should be reflected in the MTW Plan and/or MTW Report, as
indicated below. No additional proposal will be required.
HUD will review the proposal and, if approved, HUD will produce
an Amendment to the PHA’s MTW Agreement authorizing the PHA to
implement local, non-traditional activities. PHAs must then
follow the amendment and public hearing requirements outlined in
Section V.A of the MTW Agreement
(http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_10240.pd
f) prior to executing the Amendment. Once the Amendment is
fully executed by HUD, PHAs will have the authorization
available in the MTW Agreement to implement local, non-
traditional activities. PHAs can begin implementation of
specific activities upon approval of the activities via the
Annual MTW Plan (see below).
• Inclusion of Local, Non-Traditional Activities in the Annual MTW
Plan (HUD Form 50900). PHAs must include all proposed local,
non-traditional activities as Proposed Activities in their
Annual MTW Plans. This should include a description of the
activity being proposed (including the scope of the activity and
the ways in which the activity will comply with applicable HUD
requirements), how the activity conforms to at least one of the
MTW statutory objectives, and all other required information
from HUD-50900.
• Term of Local, Non-Traditional Authority. MTW PHAs are only
provided approval for the implementation of local, non-
traditional MTW activities during the term of the MTW Agreement.
At such time as the MTW Agreement expires or is terminated, the
PHAs authority to enact such activities is void. If an MTW PHA
contemplates a local, non-traditional MTW activity that would
require entering into any agreement that extends past the term
of the agreement, the PHA should contact the MTW Office to
discuss the viability of such an action.
Section V.C. of the MTW Agreement requires MTW PHAs to submit a
transition plan to HUD no later than one year prior to the
expiration of the MTW Agreement. The termination of all local,
non-traditional MTW activities should be articulated in this
plan.
7. Reporting Requirements. PHAs must report to HUD on the details of
approved local, non-traditional activities through the following
mechanisms:
• Annual MTW Report. PHAs must include in their Annual MTW Report
information on all local, non-traditional activities, including
the number of families served and level of assistance provided.
For development activities, PHAs must also provide information
on each specific property acquired, renovated and/or developed
as part of a local non-traditional activity and as included in
the PHA’s approved MTW Plan. The information should be provided
as required in Attachment B of the MTW Agreement (HUD Form
50900). HUD will use information in the Report to verify that
the PHA has complied with all HUD requirements.
• Housing Financial Reports. All local, non-traditional
activities are still subject to the same financial accounting
and reporting standards as all other MTW activities, and must
follow the same GASB and FASB pronouncements. PHAs must keep
project level budgeting and accounting, report financial
statements in the Financial Data Schedule (FDS), and abide by
project level management reviews and fees. PHAs are authorized
but not required to establish separate books of account under
enterprise fund accounting rules for each non-traditional
activity. Such activities also must be included in the annual A-
133 audit required by the Office of Management and Budget.
PHAs are reminded that any approved non-traditional activities
are funded with Federal funds, and thus are subject to any and
all other Federal requirements outside of the 1937 Act, as well
as other 1937 Act requirements not authorized in its MTW
Agreement and approved in its Annual MTW Plan.
• Public and Indian Housing Information Center (PIC). PHAs must
submit HUD-50058 or HUD-50058 MTW (or their replacement forms)
data into HUD’s Public and Indian Housing Information Center
(PIC) system, or its successor, for all households receiving
assistance through the use of MTW funds. Instructions on
including households served through local, non-traditional
activities are forthcoming from HUD.
8. Paperwork Reduction Act. The information collection requirements
contained in this notice have been approved by the Office of Management
and Budget (OMB) under the Paperwork Reduction Act of 1995(22 U.SC. 3501-
3520) and assigned OMB control number 2577-0216. In accordance with the
Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is
not required to respond to, a collection of information unless the
collection displays a currently valid OMB control number.
9. Further Information. For further information on the applicability of
this notice or questions relating to its requirements, contact Ivan Pour,
MTW Program Director at (202) 402-2488. General information regarding
the MTW Demonstration can be found at: www.hud.gov/mtw.
/s/
Sandra B. Henriquez, Assistant Secretary for
Public and Indian Housing
Source: Legislative text reproduced verbatim
Plain English
PIH Notice § 2011-45 establishes the boundaries within which Moving to Work (MTW) public housing agencies may use their block-grant funds for activities outside the standard public housing and Housing Choice Voucher programs. These "local, non-traditional" activities—such as rental subsidy programs, homeownership assistance, housing development, and supportive services—must serve families at or below 80% of area median income and meet at least one of three statutory MTW objectives. Civil rights requirements, labor standards, inspection protocols, and other federal obligations remain in force regardless of any MTW flexibility granted.
Written by anthropic/claude-sonnet-4.6 · Reviewed on October 14, 2026
Plain English — not legal advice.
For Property Managers
Under PIH Notice § 2011-45, property owners and developers who receive MTW funds through a local, non-traditional program are treated as recipients of federal financial assistance and must comply with fair housing, Davis-Bacon labor standards, and HUD Housing Quality Standards. Operators of units developed with these funds are generally expected to maintain affordability restrictions—typically for a minimum of 30 years—documented through a recorded use agreement or covenant. Financial reporting, environmental review, and site and neighborhood standards also apply to any project receiving MTW development funds.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For Tenants
PIH Notice § 2011-45 requires that MTW-funded local, non-traditional programs serve only income-eligible families and maintain housing quality standards, meaning tenants in these programs retain baseline protections similar to those in standard public housing or voucher programs. Civil rights laws—including the Fair Housing Act and Section 504 of the Rehabilitation Act—apply fully and cannot be waived under MTW authority. Tenants who believe a program is not meeting these requirements may contact HUD's Office of Fair Housing and Equal Opportunity or a local tenant-rights organization to explore available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
Expression #1
Oct 6, 2026
Current
Oct 14, 2026
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