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Moving to Work (MTW) Guidance on Capital Fund and Replacement Housing Factor Funding for MTW Demonstration Sites

The following guidance provides clarification of the provisions in Notice PIH 2003-10 (HA), Capital Fund - Replacement Housing Factor Funding-Instructions, which was issued April 4, 2003. It clarifies how public housing agencies (PHAs) that have Moving-to-Work (MTW) agreements with HUD, qualify to continue to receive RHF Funding.

For a PHA to be eligible to continue to receive RHF Funding, the Notice specifies requirements for planning, leveraging, and compliance with obligation and expenditure deadlines. In addition, the PHA must request continued RHF Funding for a second 5-Year Increment.

According to the Notice, PHAs receiving RHF Funding were to submit RHF Plan(s) by May 30, 2003. If the PHA had received less than 5 years of RHF Funding, the PHA was to submit an RHF Plan for the first 5-Year Increment to the HUD Field Office for review and approval. If the PHA had received 5 years of RHF Funding and wanted a second 5-Year Increment of RHF Funding, the PHA was to submit the RHF Plan for the first 5-Year Increment to the HUD Field Office, and an RHF Plan for the second 5-Year Increment to both the Office of Capital Improvements and to the HUD Field Office. The RHF Plans were to detail how the PHA met the three requirements for continued RHF Funding. If a PHA submitted RHF Plan(s) as called for in the Notice, in spite of exemptions or waivers in its MTW agreement, that PHA will likely have fulfilled the requirements of the Notice, and be entitled to continued RHF Funding. If a PHA believed that its MTW agreement exempted it from complying with the RHF Notice, and it failed to submit the RHF Plan or to otherwise fulfill requirements of the Notice, that PHA should submit a letter requesting continued funding, as detailed below.

The chart attached (in pdf format) details how each category of MTW PHA can satisfy each of the three requirements to continue to receive RHF Funding. If a PHA is an MTW Plan and Report Agency (2nd column), for the first five-year increment of RHF Funding, the PHA need not submit an RHF Plan, but must meet and report obligation and expenditure deadlines in required MTW Plans and Reports, and, make a letter request for continued funding. The same PHA, for a second five-year increment of RHF Funding, must follow the same procedures, but must, in addition, demonstrate leveraged funding for the second increment, equivalent to one-third of the total RHF Funding received during the first increment, and make a letter request for a second five-year increment of RHF Funding.

If a PHA is exempt from one or more of the required components by provisions of the PHA's MTW agreement, the PHA should request the continued RHF Funding in a letter to the U.S. Department of Housing and Urban Development, Office of Capital Improvements [Room 4146], 451 Seventh Street, SW, Washington, DC 20410, with a copy to the HUD Field Office. The letter should detail how the PHA fulfills each of the three requirements, or how and why the PHA is exempt from meeting particular requirements of the Notice. This letter request should be submitted to the Office of Capital Improvements by October 15, 2003.

Contact for More Information

William Thorson, Director of the Office of Capital Improvements
202-708-0614, extension 4999
Email: William_C._Thorson@hud.gov