Innovations in the Moving to Work Demonstration By Public and Affordable Housing Research

235 Pages·2015·2.41 MB·English

by  Melissa Vandawalker

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
Implementing Rent Reform in Phases ................................................................................................ 57
Administrative Challenges to Changing the Rules of Housing Assistance .............................................. 57
Administering Parallel Programs ......................................................................................................... 58
Making Changes to IT Systems ............................................................................................................ 58
Training and Aligning Staff .................................................................................................................. 58
Changes to Policies Following Implementation ...................................................................................... 58
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CONTENTS
Changes to the Terms of Work Requirements .................................................................................... 58
Changes to the Terms of Rent Calculations ........................................................................................ 59
Changes to Time Limits on Assistance ................................................................................................ 59
Adding Financial Support and Supportive Services ............................................................................ 59
Chapter 5. Innovations that Promote Residential Stability for Targeted Households ............................... 61
Use of MTW Authority ............................................................................................................................ 62
Set-Asides of Housing Assistance ........................................................................................................ 63
Project-Based Vouchers ...................................................................................................................... 66
Sponsor-Based Housing Assistance ..................................................................................................... 69
Alternative Forms of Subsidy .............................................................................................................. 73
Chapter 6. Innovations that Expand the Geographic Scope of Assisted Housing ...................................... 76
Use of MTW Flexibility ............................................................................................................................ 78
Changes to Payment Standards .......................................................................................................... 79
Lifting the 40 Percent Cap on Initial Rent Levels ................................................................................ 82
Landlord Recruitment and Retention Incentives ................................................................................ 82
Other Measures to Encourage Landlord Participation ....................................................................... 84
Services to Help Voucher Holders Access Opportunity Areas ............................................................ 84
Expanded Project-Basing of Vouchers in Opportunity Areas ............................................................. 86
Chapter 7. Cambridge Housing Authority ................................................................................................... 88
Overview of PHA and Community .......................................................................................................... 89
City of Cambridge ................................................................................................................................ 89
CHA Inventory and Households .......................................................................................................... 90
Evolution of MTW at the PHA ................................................................................................................. 93
Decision to Apply to MTW .................................................................................................................. 93
Evolution of MTW Goals and Plan ...................................................................................................... 93
MTW Decision-Making Process........................................................................................................... 95
Major Policy Changes enabled by MTW ................................................................................................. 97
Increasing the Quality and Quantity of Affordable Housing ............................................................... 99
Increasing Cost Effectiveness ............................................................................................................ 103
Increasing Economic Self-Sufficiency ................................................................................................ 105
Promoting Residential Stability for Targeted Households ................................................................ 107
Expanding Geographical Choices of Assisted Households ................................................................ 108
CHA’s Transformation through MTW ................................................................................................... 108
MTW as a Testing Ground ................................................................................................................. 110
Conclusion ......................................................................................................................................... 111
Abt Associates Moving to Work Innovations Report ▌pg. iii
CONTENTS
Chapter 8. Home Forward (Portland, OR)................................................................................................. 112
Overview of Home Forward Programs and the Housing Market it Serves ........................................... 113
Households Served ............................................................................................................................... 114
Goals and Evolution of MTW at the PHA .............................................................................................. 117
MTW Decision-Making Process ............................................................................................................ 120
Performance Measurement and Evaluation ......................................................................................... 121
Major Policy Changes Enabled by MTW ............................................................................................... 122
Summary of Home Forward Innovations .............................................................................................. 122
Rent reform ....................................................................................................................................... 123
GOALS Program (Modified Family Self-Sufficiency) .......................................................................... 124
Housing Subsidies Aligned with Other Systems ................................................................................ 125
Expanding the Number of Households Served ................................................................................. 126
Administrative Efficiencies and Subsidy Savings Enabled by MTW ...................................................... 127
Changes in PHA Culture ........................................................................................................................ 128
Conclusion ......................................................................................................................................... 128
Chapter 9. King County Housing Authority ............................................................................................... 129
Overview of PHA’s Participation in MTW ............................................................................................. 129
Overview of PHA and Community ........................................................................................................ 130
PHA Inventory ................................................................................................................................... 130
Households Served............................................................................................................................ 132
PHA Community ................................................................................................................................ 132
MTW Participation ................................................................................................................................ 133
Goals and Evolution of MTW at the PHA .......................................................................................... 133
MTW Decision-Making Process......................................................................................................... 135
Performance Measurement and Evaluation ..................................................................................... 136
Major Policy Changes enabled by MTW ............................................................................................... 138
Increasing Cost Effectiveness ............................................................................................................ 140
Increasing the Quantity and Quality of Affordable Housing ............................................................. 141
Increasing Economic Self-Sufficiency ................................................................................................ 141
Promoting Residential Stability for Targeted Households ................................................................ 142
Expanding Geographical Choices of Assisted Households ................................................................ 144
Administrative Efficiencies Enabled by MTW ....................................................................................... 144
Changes in PHA Culture ........................................................................................................................ 145
Conclusion ......................................................................................................................................... 147
Chapter 10. Lawrence-Douglas County Housing Authority ...................................................................... 148
Abt Associates Moving to Work Innovations Report ▌pg. iv
CONTENTS
Overview of LDCHA Programs and the Housing Market It Serves ........................................................ 148
PHA Inventory ....................................................................................................................................... 149
Households Served ............................................................................................................................... 149
Goals and Evolution of MTW at the PHA .............................................................................................. 151
MTW Decision-Making Process ............................................................................................................ 153
Major Policy Changes enabled by MTW ............................................................................................... 154
Increasing Self-Sufficiency ................................................................................................................ 156
Increasing Cost Effectiveness ............................................................................................................ 158
Increase Number of Households Provided with Affordable Housing ............................................... 159
Changes in PHA Culture ........................................................................................................................ 159
Performance Measurement and Evaluation ......................................................................................... 160
Conclusion ......................................................................................................................................... 161
Chapter 11. San Diego Housing Commission ............................................................................................ 162
Overview of SDHC and the Housing Market It Serves .......................................................................... 163
Households Served............................................................................................................................ 165
Overview of PHA and Community .................................................................................................... 165
Goals and Evolution of MTW at the PHA .............................................................................................. 166
MTW Decision-Making Process......................................................................................................... 168
Performance Measurement and Evaluation ..................................................................................... 169
Major Policy Changes Enabled by MTW ............................................................................................... 169
Increasing Self-Sufficiency ................................................................................................................ 171
Housing Efforts for Targeted Populations ......................................................................................... 173
Expanding Geographical Choices of Assisted Households ................................................................ 176
Increased the Number of Households Provided with Affordable Housing ....................................... 177
Administrative Efficiencies enabled by MTW ....................................................................................... 178
Changes in PHA Culture ........................................................................................................................ 179
Conclusion ......................................................................................................................................... 180
Chapter 12. Implications for the Development of Performance Measures ............................................. 181
Next Steps ............................................................................................................................................. 184
Appendix A: Innovations Identified in Survey by Category ...................................................................... 185
Appendix B: MTW Innovations Identified in Document Review .............................................................. 190
Exhibit 1: Innovations to Increase Cost Effectiveness....................................................................... 190
Exhibit 2: Innovations to Increase the Quality and Quantity of Assisted Housing ........................... 197
Exhibit 3: Innovations to Increase Self-Sufficiency ........................................................................... 200
Exhibit 4: Innovations to Increase the Geographic Scope of Assisted Housing ................................ 207
Abt Associates Moving to Work Innovations Report ▌pg. v
CONTENTS
Exhibit 5: Innovations to Increase Assisted Housing for Targeted Populations ............................... 209
Appendix C: Surveys Conducted with MTW Agencies by Innovation Type .............................................. 213

Abt Associates Moving to Work Innovations Report ▌pg. vi
CONTENTS
Exhibits
Exhibit ES-1: Summary of MTW Innovations to Increase Cost Effectiveness ............................................... 2
Exhibit ES-2: Summary of MTW Changes to Project Basing Vouchers ......................................................... 4
Exhibit ES-3: Summary of MTW Innovations to Increase Self-Sufficiency .................................................... 4
Exhibit ES-4: Summary of Innovative Uses of Housing Subsidies for Targeted Households ........................ 5
Exhibit ES-5: Summary of MTW Innovations to Expand the Geographic Scope of Assisted Housing .......... 6
Exhibit 1-1: MTW Agencies and Date Original Agreement Signed ............................................................... 3
Exhibit 1-2: MTW Agency Survey Responses ................................................................................................ 7
Exhibit 2-1: Recertification Schedules of MTW Agencies ........................................................................... 14
Exhibit 2-2: MTW Agency Changes to the Treatment of Income and Assets ............................................. 18
Exhibit 2-3: MTW Agency Changes to Rent Calculation ............................................................................. 21
Exhibit 2-4: Example of Flat Rents within Income Bands ............................................................................ 22
Exhibit 2-5: Inspection Schedules and Procedures of MTW Agencies ........................................................ 24
Exhibit 2-6: MTW Rent Reasonableness Policies ........................................................................................ 28
Exhibit 3-1: MTW PHA Changes to Project-based Voucher Rules .............................................................. 39
Exhibit 3-2: Goals for the Use of Project-Based Vouchers by Moving to Work Agencies .......................... 41
Exhibit 4-1: Rent Reform and Self-Sufficiency Requirements at MTW PHAs ............................................. 46
Exhibit 5-1: Set-Asides of Vouchers or Public Housing for Targeted Populations ...................................... 64
Exhibit 5-2: Project-Based Vouchers for Targeted Populations .................................................................. 68
Exhibit 5-3: Sponsor-Based Assistance for Targeted Populations .............................................................. 70
Exhibit 5-4: Alternative Forms of Subsidy for Targeted Populations .......................................................... 75
Exhibit 6-1: Innovations by MTW PHAs to Expand the Geographic Scope of Assisted Housing ................ 78
Exhibit 7-1: CHA Inventory, MTW and Non-MTW Units and Vouchers ...................................................... 91
Exhibit 7-2: CHA Characteristics of MTW Households ................................................................................ 92
Exhibit 7-3: CHA MTW Innovations by Type ............................................................................................... 98
Exhibit 7-4: CHA Units and Vouchers Authorized, 1999 and 2004 ........................................................... 100
Exhibit 8-1: Home Forward Inventory of Assisted and Affordable Housing ............................................. 114
Exhibit 8-2: Home Forward Households Served by Housing Choice Vouchers and Public Housing ......... 115
Exhibit 8-3: Rents, Rental Vacancy Rates, and Poverty Rates in the Portland Metropolitan Area........... 116
Exhibit 8-4: Home Forward Key Events during MTW Participation .......................................................... 119
Exhibit 8-5: Home Forward MTW Initiatives by Type ............................................................................... 122
Exhibit 9-1: KCHA Inventory in FY 2012 (Public Housing, HCV, Other-HUD and Local programs) ............ 131
Exhibit 9-2: KCHA Households Served ...................................................................................................... 132
Exhibit 9-3: KCHA Key Dashboard Outcomes............................................................................................ 137
Exhibit 9-4: KCHA Operational Excellence Measures................................................................................ 137
Abt Associates Moving to Work Innovations Report ▌pg. vii
CONTENTS
Exhibit 9-5: Summary of KCHA’s MTW Innovations.................................................................................. 138
Exhibit 10-1: LDCHA Inventory .................................................................................................................. 149
Exhibit 10-2: LDCHA Households Served by Tenant-Based Vouchers and Public Housing ....................... 150
Exhibit 10-3: LDCHA MTW Activities by Year ............................................................................................ 152
Exhibit 10-4: LDCHA Innovations Enabled by MTW .................................................................................. 155
Exhibit 11-1: San Diego Housing Commission Inventory .......................................................................... 164
Exhibit 11-2: San Diego Housing Commission Households Served ........................................................... 165
Exhibit 11-3: San Diego Timeline of MTW Participation ........................................................................... 168
Exhibit 11-4: San Diego Housing Commission Innovations by Type ......................................................... 170
Exhibit 11-5: San Diego Housing Commission Project-Based Vouchers ................................................... 178

Appendices
Appendix A: Innovations Identified in Survey by Category ...................................................................... 185
Appendix B: MTW Innovations Identified in Document Review .............................................................. 190
Appendix C: Surveys Conducted with MTW Agencies by Innovation Type .............................................. 213

Abt Associates Moving to Work Innovations Report ▌pg. viii