Implementing MTW Initiatives in a State-Wide Program Massachusetts Department of Housing & Community Development April

Mass Dept. Housing & Community Development Community Services CDBG CAP Agencies LIHEP State and Federal Resources Homeless Services (right to Shelter state) Housing Development Low Income Housing Tax Credits State Funded Housing Development Programs (State Bonds, Trust Funds and other Housing Production Resources) Public Housing & Rental Assistance State-funded Public Housing State Funded Rental Assistance Federal Rental Assistance 2

Bureau of Rental Assistance  20,000 vouchers across the state 3,000 Project Based Vouchers Special Programs NED, VASH FUP FUP-AOP Massachusetts State Rental Voucher Program (MRVP)  8,000 vouchers $90 million Alternative Housing Voucher Program (AHVP)  1500 vouchers $2.5 million 3 Federal Housing Choice Voucher Program State Rental Assistance Programs

MTW HCV Administration State-Wide  Regional Administrating Agencies: Network of Eight Large, regionally based non-profit organizations One Public Housing Authority Administer both the state and Federal rental assistance programs  DHCD Central Staff oversees : Program development Quality control/Training IT services – Centralized data base HUD reporting 4

Voucher distribution ProgramBHDCCTIHACHAPMBHPRCAPSMOCHSSMAll RAAs Standard HCV MTW Total 435 1, ,018 4,746 1,750 1,036 1,570 14,895 Project Based Voucher Total ,030 Special Programs Total , ,358 Total Voucher Allocation 558 2,267 1,008 3,930 6,503 2,210 1,837 1,970 20,283 5

RAA Characteristics  Large Geographic Regions  Varying levels of external and internal resources  Mix of Urban and Rural Cities and towns  Areas of high poverty and areas of opportunity within the same region  Range of housing stock and availability Aging multi-family, suburban zoning/single family  FMRs do not reflect wide range of rents across the state and within regions 6

State-Wide Program Management Strengths  Strong Partnerships in place for 30 years (evolved with HCV program)  Regional Administrating Agency (RAA’s) infrastructure offers efficiencies:  Human Resources  Training  Complimentary Services  Centralized Database links all activities to DHCD’s Central Office staff for monitoring  RAAs can develop local programs using MTW flexibilities based on regional needs and resources  RAAs are allies in our efforts to move the MTW program forward Challenges  Geography of Regions –size and diversity  Implementation of MTW initiatives made more complex by 9 partners  Impact of potential MTW policies varies widely across state- resulting in complex modelling and impact analysis  Size and scale of state-wide program means local, regional and state politics all at play  Lack of DHCD control over day- to-day operations:  reinforcement of training  maintaining new initiatives 7

MTW Activity Self Certification of Assets Administrative Efficiency  Self-certification of Assets under $50,000 Streamline processing Reduce paperwork burden for participant and staff Success/Challenge File reviews reveal RAA staff default to pre-MTW requirements 8

MTW Activity Biennial Recertification Administrative Efficiency  Biennial recerts for all MTW households  Limit to two voluntary interim recerts between biennial recerts with the exception of: Elderly/Disabled households PBV households in expiring use properties Success/Challenge Systems Issues Reprogramming MIS Ongoing training and implementation issues Desired savings in staff time not yet fully realized 9

MTW activity Utility Allowances Administrative Efficiency Streamlined Utility Allowance Payments Eliminate UA payments under $25. Apply the UA for the smaller of the unit size and voucher DHCD used a weighted average of the two highest fuel types by bedroom size. DHCD will revise UA model to include a utility allowance for other electricity which will be the same across all DHCD jurisdictions Success/Challenge  Systems programming  Staff training  Communication with tenants  Advocates very concerned  Since implementation this MTW initiative has: Reduced error rates Reduced costs No reported impact on participants as reported by tenant advocates 10

MTW Activity : Rent simplification Not Yet Implemented 2016 Approved Plan  Tiered Rent  Greater of 100% of SAFMR or 110% of Large Area FMR  $750 Working Family Deduction  Phase out MTW EID activity  Exclude all full-time student income  Tiered unreimbursed childcare expense deductions  Tiered unreimbursed medical expense deductions  Retain $480 dependent and increase elderly/disabled deduction to $800  Mixed families pay additional 10% of table rent 2017 Proposed Plan  Apply 100% of the SAFMR except: Where an approved exception payment standard is in place, i.e. Cambridge Where the LAFMR exceeds the SAFMR, use the LAFMR (TBD)  Exclude all full-time student income  Return MTW EID activity 11