Section 239 of the Fiscal Year 2016 Appropriations Act, P.L. 114-113 (2016 MTW Expansion Statute), authorizes HUD to expand the Moving to Work (MTW) demonstration program from the current size of 39 Public Housing Agencies (PHAs) to an additional 100 agencies over a period of 7 years. The Statute directs HUD to add new MTW PHAs in cohorts, with each cohort testing a specific policy change so that HUD can conduct a rigorous evaluation of that policyâs effects. A copy of the relevant section of law authorizing the Department to undertake âsuch programs of research, studies, testing, and demonstration relating to the mission and programs of the Departmentâ (12 USC 1701z-1 et seq.) is included as Appendix H.
The second cohort of MTW Expansion PHAs will test alternative ways of setting rents in the public housing and housing choice voucher programs. The traditional rent policy (the Brooke rent) typically sets each householdâs rent at 30 percent of their adjusted monthly income. This rent policy is administratively complex and burdensome for PHAs and assisted households. The Brooke rent is hypothesized to be a disincentive for households to increase their earnings, as $100 dollars of increased income would result in $30 of increased rent.
In this projectâthe Stepped and Tiered Rent Demonstration (STRD)âPHAs will implement alternative rents that might be easier to administer and might incentivize assisted households to increase their earnings. Five PHAs will implement a stepped rent, under which a householdâs rent will increase modestly each year regardless of their income. Five PHAs will implement a tiered rent, under which households are assigned to income-based tiers and rents are set based on the tier. Both policies will enable households to increase their income without causing an immediate rent increase. Both policies include hardship provisions to prevent high rent burdens. And both policies include less frequent income reexaminations, to reduce the amount of PHA staff time required to administer the program.
The STRD will be implemented as a randomized controlled trial (RCT); eligible households (limited to non-elderly, non-disabled households) will be randomly assigned to the new rent policy, or to remain on the traditional rent policy. This design is the gold standard for program evaluation and will enable HUD to conclude whether the new rent policies caused any differences observed between the two groups over time. HUDâs evaluation is expected to last 6 years.
HUD has contracted with MDRC to carry out the first phase of HUDâs evaluation, to launch the STRD and lay the foundation for a long-term evaluation. HUD has also allocated resources to support software modifications required by the PHAs to implement the STRD Demonstration. This new information collection has the following components in this collection, all of which are necessary for the evaluation to succeed.
US Code:
12 USC 1701z-1
Name of Law: Research and Demonstrations
The second cohort of MTW Expansion PHAs is testing alternative ways of setting rents in the public housing and housing choice voucher programs. The traditional rent policy (the Brooke rent) typically sets each householdâs rent at 30 percent of their adjusted monthly income. This rent policy is administratively complex and burdensome for PHAs and assisted households. The Brooke rent is hypothesized to be a disincentive for households to increase their earnings, as $100 dollars of increased income would result in $30 of increased rent.
In this projectâthe Stepped and Tiered Rent Demonstration (STRD)âPHAs are implementing alternative rents that might be easier to administer and might incentivize assisted households to increase their earnings. Five PHAs are implementing a stepped rent, under which a householdâs rent will increase modestly each year regardless of their income. Five PHAs are implementing a tiered rent, under which households are assigned to income-based tiers and rents are set based on the tier. Both policies enable households to increase their income without causing an immediate rent increase. Both policies include hardship provisions to prevent high rent burdens. And both policies include less frequent income reexaminations, to reduce the amount of PHA staff time required to administer the program.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
30-Day Notice Stepped and Tiered Rent Demonstration.pdf
Final - STRD Supporting Statement Part B.docx
Housing Specialist and Property Manager Interview Guide (Round 2)