Section 8 Housing Choice Vouchers: Implementation of the Housing Choice Voucher Mobility Demonstration, Restrictions on Participating in the Mobility Demonstration and the Moving to Work Demonstration Expansion, 558-560 [2020-29266]

Download as PDF 558 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices Management Agency, 500 C Street SW, Washington, DC 20472, (202) 646–2833. SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency (FEMA) hereby gives notice that pursuant to the authority vested in the Administrator, under Executive Order 12148, as amended, Brian Schiller, of FEMA is appointed to act as the Federal Coordinating Officer for this disaster. This action terminates the appointment of Steven W. Johnson as Federal Coordinating Officer for this disaster. The following Catalog of Federal Domestic Assistance Numbers (CFDA) are to be used for reporting and drawing funds: 97.030, Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling; 97.033, Disaster Legal Services; 97.034, Disaster Unemployment Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048, Disaster Housing Assistance to Individuals and Households In Presidentially Declared Disaster Areas; 97.049, Presidentially Declared Disaster Assistance— Disaster Housing Operations for Individuals and Households; 97.050, Presidentially Declared Disaster Assistance to Individuals and Households—Other Needs; 97.036, Disaster Grants—Public Assistance (Presidentially Declared Disasters); 97.039, Hazard Mitigation Grant. Pete Gaynor, Administrator, Federal Emergency Management Agency. [FR Doc. 2020–29292 Filed 1–5–21; 8:45 am] BILLING CODE 9111–23–P DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency [Internal Agency Docket No. FEMA–4575– DR; Docket ID FEMA–2020–0001] Oklahoma; Major Disaster and Related Determinations Federal Emergency Management Agency, DHS. ACTION: Notice. AGENCY: This is a notice of the Presidential declaration of a major disaster for the State of Oklahoma (FEMA–4575–DR), dated December 21, 2020, and related determinations. DATES: The declaration was issued December 21, 2020. FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and Recovery, Federal Emergency Management Agency, 500 C Street SW, Washington, DC 20472, (202) 646–2833. SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter dated jbell on DSKJLSW7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 December 21, 2020, the President issued a major disaster declaration under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ‘‘Stafford Act’’), as follows: (Presidentially Declared Disasters); 97.039, Hazard Mitigation Grant. I have determined that the damage in certain areas of the State of Oklahoma resulting from a severe winter storm during the period of October 26 to October 29, 2020, is of sufficient severity and magnitude to warrant a major disaster declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ‘‘Stafford Act’’). Therefore, I declare that such a major disaster exists in the State of Oklahoma. In order to provide Federal assistance, you are hereby authorized to allocate from funds available for these purposes such amounts as you find necessary for Federal disaster assistance and administrative expenses. You are authorized to provide Public Assistance in the designated areas and Hazard Mitigation throughout the State. Consistent with the requirement that Federal assistance be supplemental, any Federal funds provided under the Stafford Act for Public Assistance and Hazard Mitigation will be limited to 75 percent of the total eligible costs. Further, you are authorized to make changes to this declaration for the approved assistance to the extent allowable under the Stafford Act. BILLING CODE 9111–23–P The Federal Emergency Management Agency (FEMA) hereby gives notice that pursuant to the authority vested in the Administrator, under Executive Order 12148, as amended, Traci L. Brasher, of FEMA is appointed to act as the Federal Coordinating Officer for this major disaster. The following areas of the State of Oklahoma have been designated as adversely affected by this major disaster: Caddo, Canadian, Cleveland, Dewey, Grady, Kingfisher, Kiowa, Logan, Noble, Oklahoma, Payne, Pottawatomie, and Roger Mills Counties for Public Assistance. All areas within the State of Oklahoma are eligible for assistance under the Hazard Mitigation Grant Program. The following Catalog of Federal Domestic Assistance Numbers (CFDA) are to be used for reporting and drawing funds: 97.030, Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling; 97.033, Disaster Legal Services; 97.034, Disaster Unemployment Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048, Disaster Housing Assistance to Individuals and Households In Presidentially Declared Disaster Areas; 97.049, Presidentially Declared Disaster Assistance— Disaster Housing Operations for Individuals and Households; 97.050, Presidentially Declared Disaster Assistance to Individuals and Households—Other Needs; 97.036, Disaster Grants—Public Assistance PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 Pete Gaynor, Administrator, Federal Emergency Management Agency. [FR Doc. 2020–29282 Filed 1–5–21; 8:45 am] DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–6191–N–04] Section 8 Housing Choice Vouchers: Implementation of the Housing Choice Voucher Mobility Demonstration, Restrictions on Participating in the Mobility Demonstration and the Moving to Work Demonstration Expansion Office of the Assistant Secretary for Public and Indian Housing (PIH), Department of Housing and Urban Development (HUD). ACTION: Notice of restrictions. AGENCY: On July 15, 2020, HUD published a notice (‘‘HCV Mobility Demonstration Notice’’) implementing the Housing Choice Voucher (HCV) mobility demonstration (‘‘HCV mobility demonstration’’) authorized by the Consolidated Appropriations Act, 2019. Through that Notice, HUD is making available up to $50,000,000 to participating Public Housing Agencies (‘‘PHAs’’) throughout the country to implement housing mobility programs by offering mobility-related services to increase the number of voucher families with children living in opportunity areas. HUD now supplements the July 15, 2020 notice to partially restrict participation in both the HCV mobility demonstration program and the Moving to Work demonstration expansion (‘‘MTW expansion’’) program. These restrictions are necessary to ensure the integrity of the Congressionallymandated evaluations of both demonstrations. This notice also provides two minor technical corrections to definitions provided in the July 15, 2020, HCV Mobility Demonstration Notice. FOR FURTHER INFORMATION CONTACT: Rebecca Primeaux, Director, Housing Voucher Management and Operations Division, Department of Housing and Urban Development, 451 Seventh Street SW, Room 4214, Washington, DC 20410, telephone number (202) 708–1112. (This is not a toll-free number.) Individuals with hearing or speech impediments may access this number via TTY by calling the Federal Relay during working hours at 800–877–8339. (This SUMMARY: E:\FR\FM\06JAN1.SGM 06JAN1 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices is a toll-free number). HUD encourages submission of questions about the demonstration be sent to: HCVmobilitydemonstration@hud.gov. jbell on DSKJLSW7X2PROD with NOTICES SUPPLEMENTARY INFORMATION Additional Requirements On July 15, 2020, HUD published its HCV Mobility Demonstration Notice in the Federal Register (85 FR 42890), implementing the HCV mobility demonstration. Through that Notice, HUD is making available approximately $50,000,000 for grants to Public Housing Authorities (PHAs) under a demonstration program authorized by statute. HUD has been directed by Congress to evaluate the demonstration. On August 28, 2020, HUD published the ‘‘Operations Notice for the Expansion of the Moving to Work Program’’ (‘‘MTW Operations Notice’’) in the Federal Register (85 FR 53444). HUD intends to designate 100 PHAs for the expansion of the MTW demonstration in five separate and distinct cohorts. For each cohort of the MTW expansion, HUD will conduct a rigorous evaluation of a specific policy change. HUD issued PIH Notices for the first two of the five cohorts to solicit applications from eligible PHAs for participation in the MTW expansion. The PIH Notices describe specific application submission requirements, evaluation criteria, and the process HUD will use when selecting PHAs for cohorts one and two of the MTW expansion. PIH Notices for the remaining three cohorts will be issued at a later date. The evaluation of the first cohort, MTW flexibility on small PHAs, will evaluate the overall impact of MTW flexibilities on PHAs with less than 1,000 units. The evaluation of the second cohort, rent reform, will evaluate the impacts of different rent structures. The third cohort will focus on work requirements and the fourth cohort will examine landlord incentives. The fifth cohort, MTW flexibility on PHAs with fewer than 27,000 units, will be similar to the first cohort. After careful consideration, HUD’s office of Policy Development and Research (PD&R), which has been directed by Congress to evaluate both the HCV mobility demonstration and the MTW expansion, has determined that the Congressionally mandated rigorous evaluation of the demonstrations create significant barriers for PHAs to participate fully in both programs. More specifically, without these reasonable and tailored restrictions of MTW participation, the evaluations could become so skewed VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 that it would defeat the legislative mandate to conduct an objective analysis of the mobility demonstration. This is because MTW agencies already have flexibility to engage in their own directed mobility programs that nonMTW PHAs are currently unlikely to be able to implement with their existing federal funds. Therefore, HUD is establishing additional requirements for participation in the HCV mobility demonstration. Restrictions on Participation in the MTW Expansion and the HCV Mobility Demonstration PHAs may apply to all cohorts the MTW expansion and also apply to the HCV mobility demonstration. However, HUD will restrict participation for PHAs selected for both the MTW expansion and the HCV mobility demonstration programs as follows: • PHAs selected for cohorts one and five (MTW flexibilities) may participate in both the HCV mobility demonstration and the MTW expansion. However, they must agree to limit the adoption of certain MTW flexibilities, for the HCV program only, during the term of HCV mobility demonstration participation described in the initial HCV Mobility Demonstration Notice. HUD will document these limitations in the HCV mobility demonstration memorandum of understanding (‘‘MOU’’) to be executed between the PHA and HUD. There will be no restriction on the public housing activities the PHA may undertake. • PHAs may not participate in both the HCV mobility demonstration and cohorts two (rent reform), three (work requirements) or four (landlord incentives) of the MTW expansion. Æ Applications for cohort two (rent reform) are due on January 8, 2021. If a PHA is selected for both cohort two (rent reform) and the HCV mobility demonstration, the PHA must choose which demonstration to participate in and withdraw from the other demonstration within 21 calendar days after notifications of selection have been made for both programs. Æ For cohorts three and four, if a PHA has already been selected for the HCV mobility demonstration, it may not apply for cohort three (work requirements) or cohort four (landlord incentives) of the MTW expansion. In the unlikely event that selection notifications for the HCV mobility demonstration have not been made by the application due date for cohorts three and four, PHAs may submit an application for those MTW expansion cohorts. If a PHA is selected for either cohort three (work requirements) or PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 559 cohort four (landlord incentives) and the HCV mobility demonstration, the PHA must choose which demonstration to participate in and withdraw from the other demonstration within 21 calendar days after notifications of selection have been made for both programs. Restrictions on MTW Expansion Cohorts One and Five (MTW Flexibilities) PHAs participating in cohorts one and five of the MTW expansion are allowed to adopt MTW flexibilities as outlined in the MTW Operations Notice. HUD is restricting certain MTW flexibilities for PHAs participating in both the HCV mobility demonstration and cohorts one and five (MTW flexibilities) of the MTW expansion for three primary reasons: • Potential for offering additional services to families in the HCV mobility demonstration treatment and control groups that would result in a noncomparable intervention when compared to other HCV mobility demonstration sites; • Potential to influence residential locational choices for families based on unit rents and required family rent share; and • Potential for interfering with the PHA being able to meet the minimum enrollment requirements for the HCV mobility demonstration treatment and control groups. For PHAs participating in MTW expansion cohorts one and five and in the HCV mobility demonstration, the following MTW flexibilities may not be implemented without the express written permission of HUD: Work requirements, vacancy loss, damage claims, other landlord incentives, prequalifying unit inspections, and reasonable penalty payments for landlords may not be implemented due to the potential for the offering of additional services to families and landlords in the HCV mobility demonstration treatment and control groups that would result in noncomparable intervention when compared to other HCV mobility demonstration sites. Additionally, PHAs may not make Family Self-Sufficiency (‘‘FSS’’) programs mandatory under ‘‘alternative family selection procedures’’ for MTW self-sufficiency programs or FSS programs with MTW flexibility for similar reasons. PHAs that operate a mandatory FSS program also will not be allowed to waive operating the FSS program for the HCV program. However, service provision under local nontraditional activities could potentially be implemented with prior approval by HUD. E:\FR\FM\06JAN1.SGM 06JAN1 560 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices PHAs participating in the HCV mobility demonstration and the MTW expansion cohort one or cohort five may not implement the following MTW flexibilities without the express written permission of HUD: Term limits, tenant payment as a modified percentage of income, fixed subsidy, initial rent burden, and imputed income activities. This is due to the potential to influence residential locational choices for families based on unit rents and required family rent share. HUD has not fully determined whether PHAs would be able to limit portability for projectbased voucher (‘‘PBV’’) units and will work with the research team to make a final determination. MTW flexibilities related to short term assistance and increasing the PBV program cap may be implemented as long as HUD provides prior approval. These activities may be restricted due to the potential for interfering with the PHA being able to meet the minimum enrollment requirements for the HCV mobility demonstration. jbell on DSKJLSW7X2PROD with NOTICES Restrictions on Cohorts Two (Rent Reform), Three (Work Requirements), and Four (Landlord Incentives) PHAs may not participate in cohorts two (rent reform), three (work requirements), or four (landlord incentives) of the MTW expansion and the HCV mobility demonstration. The evaluation in cohorts two (rent reform) and three (work requirements) will require family level randomization, which will create significant conflicts for the integrity of the HCV mobility demonstration evaluation, which also requires family level randomization. Inclusion of PHAs in the MTW expansion cohort four (landlord incentives) and the mobility demonstration would also create significant research complications, due to the HCV mobility demonstration requiring a standard set of landlord incentives which would likely differ from the landlord incentive research requirements of the MTW expansion. New Policy Changes for PHAs After Selection in the HCV Mobility Demonstration After selection, and for the duration of participation in the HCV mobility demonstration, PHAs that participate in cohorts one and five of the MTW expansion, legacy MTW PHAs, and all non-MTW PHAs, must also work closely with HUD and the evaluator before any new policy changes can be implemented. The process and terms for adoption of new policy changes will be described in the HCV mobility demonstration MOU executed between VerDate Sep<11>2014 19:08 Jan 05, 2021 Jkt 253001 HUD and the PHA. This is consistent with the initial HCV Mobility Demonstration Notice, which asked PHAs to identify any potential conflicts between their programs and the HCV mobility demonstration. The initial HCV Mobility Demonstration Notice states, ‘‘After the program and research design is finalized, HUD will draft a memorandum of understanding (MOU) that outlines roles, responsibilities, the program and research design, services to be offered, and descriptions of administrative policies, among other things. HUD also will draft a performance standards agreement that outlines programmatic goals, recapture and reallocation terms, a budget, and a payment schedule for mobility-related services.’’ In other words, and similar to other evaluations conducted by HUD, PHAs that participate in the HCV mobility demonstration will not be permitted to adopt any policy changes during the duration of their participation that conflict with the HCV mobility demonstration implementation and research. Selection for MTW Expansion Cohorts One (MTW Flexibilities) and Two (Rent Reform) HUD anticipates that the announcement of the selection of PHAs for the HCV mobility demonstration and the first and second cohorts of the MTW expansion will happen around the same time in early 2021. PHAs that are selected for the HCV mobility demonstration and cohort one of the MTW expansion will be required to limit certain MTW flexibilities in order to participate in both programs. HUD will document these limitations in the HCV mobility demonstration memorandum of understanding to be executed between the PHA and HUD. PHAs selected for cohort two (rent reform) of the MTW expansion and the HCV mobility demonstration will be asked to decide which program the PHA will participate in and withdraw from the other program. The PHA must choose which demonstration to participate in and withdraw from the other demonstration within 21 calendar days after notifications of selection have been made for both programs. If a PHA applied as a single PHA or as part of a joint application to the HCV mobility demonstration and decides to participate in cohort two (rent reform) of MTW expansion, the application to the HCV mobility demonstration will be withdrawn. Given the extensive nature of both applications, HUD strongly encourages PHAs that are part of a joint HCV mobility demonstration PO 00000 Frm 00061 Fmt 4703 Sfmt 9990 application to discuss whether any of the PHAs intend to participate in the MTW expansion. However, PHAs submitting a joint application to the HCV mobility demonstration with a PHA that also is applying for cohort two (rent reform) of the MTW expansion may submit a second application for the HCV mobility demonstration if they otherwise qualify under one of the statutory eligibility categories. HUD will score second applications along with the rest of the applications, but would only consider the score of the second application (which may be different than the score of the first application) if a PHA as part of a joint application chooses to participate in cohort two (rent reform) of the MTW expansion rather than the HCV mobility demonstration. No applications will be considered after the application deadline. Technical Corrections In FR Notice 6191–N–01, published in the Federal Register on July 15, 2020 (85 FR 42890) Section VII Application Format, Part K, Category A of the HCV Mobility Demonstration Notice, HUD inadvertently defined ‘‘an adequate number of moderately priced rental units in high-opportunity areas’’ incorrectly. The correct definition is ‘‘a selected service area where at least 20 percent of the standard-quality rental stock within that service area is located in [zip code tabulated areas] ZCTAs where the [small area fair market rent] SAFMR is more than 110 percent of the Metropolitan Area FMR.’’ The data tool provided by HUD to calculate this for PHAs is correct and has been using this correct definition. In FR Notice 6191–N–01, Section VII Application Format, Part 3, Capacity of the Organization of the Mobility Demonstration Notice, HUD requested PHAs to submit, ‘‘Number of recertifications completed for families with children between January 1, 2010 and December 31, 2019.’’ PHAs should submit the number of recertifications completed for families with children between January 1, 2019 and December 31, 2019. R. Hunter Kurtz, Assistant Secretary for Public and Indian Housing. [FR Doc. 2020–29266 Filed 1–5–21; 8:45 am] BILLING CODE 4210–67–P E:\FR\FM\06JAN1.SGM 06JAN1

Agencies

[Federal Register Volume 86, Number 3 (Wednesday, January 6, 2021)]
[Notices]
[Pages 558-560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29266]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6191-N-04]


Section 8 Housing Choice Vouchers: Implementation of the Housing 
Choice Voucher Mobility Demonstration, Restrictions on Participating in 
the Mobility Demonstration and the Moving to Work Demonstration 
Expansion

AGENCY: Office of the Assistant Secretary for Public and Indian Housing 
(PIH), Department of Housing and Urban Development (HUD).

ACTION: Notice of restrictions.

-----------------------------------------------------------------------

SUMMARY: On July 15, 2020, HUD published a notice (``HCV Mobility 
Demonstration Notice'') implementing the Housing Choice Voucher (HCV) 
mobility demonstration (``HCV mobility demonstration'') authorized by 
the Consolidated Appropriations Act, 2019. Through that Notice, HUD is 
making available up to $50,000,000 to participating Public Housing 
Agencies (``PHAs'') throughout the country to implement housing 
mobility programs by offering mobility-related services to increase the 
number of voucher families with children living in opportunity areas. 
HUD now supplements the July 15, 2020 notice to partially restrict 
participation in both the HCV mobility demonstration program and the 
Moving to Work demonstration expansion (``MTW expansion'') program. 
These restrictions are necessary to ensure the integrity of the 
Congressionally-mandated evaluations of both demonstrations. This 
notice also provides two minor technical corrections to definitions 
provided in the July 15, 2020, HCV Mobility Demonstration Notice.

FOR FURTHER INFORMATION CONTACT: Rebecca Primeaux, Director, Housing 
Voucher Management and Operations Division, Department of Housing and 
Urban Development, 451 Seventh Street SW, Room 4214, Washington, DC 
20410, telephone number (202) 708-1112. (This is not a toll-free 
number.) Individuals with hearing or speech impediments may access this 
number via TTY by calling the Federal Relay during working hours at 
800-877-8339. (This

[[Page 559]]

is a toll-free number). HUD encourages submission of questions about 
the demonstration be sent to: [email protected].

SUPPLEMENTARY INFORMATION 

Additional Requirements

    On July 15, 2020, HUD published its HCV Mobility Demonstration 
Notice in the Federal Register (85 FR 42890), implementing the HCV 
mobility demonstration. Through that Notice, HUD is making available 
approximately $50,000,000 for grants to Public Housing Authorities 
(PHAs) under a demonstration program authorized by statute. HUD has 
been directed by Congress to evaluate the demonstration.
    On August 28, 2020, HUD published the ``Operations Notice for the 
Expansion of the Moving to Work Program'' (``MTW Operations Notice'') 
in the Federal Register (85 FR 53444). HUD intends to designate 100 
PHAs for the expansion of the MTW demonstration in five separate and 
distinct cohorts. For each cohort of the MTW expansion, HUD will 
conduct a rigorous evaluation of a specific policy change.
    HUD issued PIH Notices for the first two of the five cohorts to 
solicit applications from eligible PHAs for participation in the MTW 
expansion. The PIH Notices describe specific application submission 
requirements, evaluation criteria, and the process HUD will use when 
selecting PHAs for cohorts one and two of the MTW expansion. PIH 
Notices for the remaining three cohorts will be issued at a later date.
    The evaluation of the first cohort, MTW flexibility on small PHAs, 
will evaluate the overall impact of MTW flexibilities on PHAs with less 
than 1,000 units. The evaluation of the second cohort, rent reform, 
will evaluate the impacts of different rent structures. The third 
cohort will focus on work requirements and the fourth cohort will 
examine landlord incentives. The fifth cohort, MTW flexibility on PHAs 
with fewer than 27,000 units, will be similar to the first cohort.
    After careful consideration, HUD's office of Policy Development and 
Research (PD&R), which has been directed by Congress to evaluate both 
the HCV mobility demonstration and the MTW expansion, has determined 
that the Congressionally mandated rigorous evaluation of the 
demonstrations create significant barriers for PHAs to participate 
fully in both programs. More specifically, without these reasonable and 
tailored restrictions of MTW participation, the evaluations could 
become so skewed that it would defeat the legislative mandate to 
conduct an objective analysis of the mobility demonstration. This is 
because MTW agencies already have flexibility to engage in their own 
directed mobility programs that non-MTW PHAs are currently unlikely to 
be able to implement with their existing federal funds. Therefore, HUD 
is establishing additional requirements for participation in the HCV 
mobility demonstration.

Restrictions on Participation in the MTW Expansion and the HCV Mobility 
Demonstration

    PHAs may apply to all cohorts the MTW expansion and also apply to 
the HCV mobility demonstration. However, HUD will restrict 
participation for PHAs selected for both the MTW expansion and the HCV 
mobility demonstration programs as follows:
     PHAs selected for cohorts one and five (MTW flexibilities) 
may participate in both the HCV mobility demonstration and the MTW 
expansion. However, they must agree to limit the adoption of certain 
MTW flexibilities, for the HCV program only, during the term of HCV 
mobility demonstration participation described in the initial HCV 
Mobility Demonstration Notice. HUD will document these limitations in 
the HCV mobility demonstration memorandum of understanding (``MOU'') to 
be executed between the PHA and HUD. There will be no restriction on 
the public housing activities the PHA may undertake.
     PHAs may not participate in both the HCV mobility 
demonstration and cohorts two (rent reform), three (work requirements) 
or four (landlord incentives) of the MTW expansion.
    [cir] Applications for cohort two (rent reform) are due on January 
8, 2021. If a PHA is selected for both cohort two (rent reform) and the 
HCV mobility demonstration, the PHA must choose which demonstration to 
participate in and withdraw from the other demonstration within 21 
calendar days after notifications of selection have been made for both 
programs.
    [cir] For cohorts three and four, if a PHA has already been 
selected for the HCV mobility demonstration, it may not apply for 
cohort three (work requirements) or cohort four (landlord incentives) 
of the MTW expansion. In the unlikely event that selection 
notifications for the HCV mobility demonstration have not been made by 
the application due date for cohorts three and four, PHAs may submit an 
application for those MTW expansion cohorts. If a PHA is selected for 
either cohort three (work requirements) or cohort four (landlord 
incentives) and the HCV mobility demonstration, the PHA must choose 
which demonstration to participate in and withdraw from the other 
demonstration within 21 calendar days after notifications of selection 
have been made for both programs.

Restrictions on MTW Expansion Cohorts One and Five (MTW Flexibilities)

    PHAs participating in cohorts one and five of the MTW expansion are 
allowed to adopt MTW flexibilities as outlined in the MTW Operations 
Notice. HUD is restricting certain MTW flexibilities for PHAs 
participating in both the HCV mobility demonstration and cohorts one 
and five (MTW flexibilities) of the MTW expansion for three primary 
reasons:
     Potential for offering additional services to families in 
the HCV mobility demonstration treatment and control groups that would 
result in a noncomparable intervention when compared to other HCV 
mobility demonstration sites;
     Potential to influence residential locational choices for 
families based on unit rents and required family rent share; and
     Potential for interfering with the PHA being able to meet 
the minimum enrollment requirements for the HCV mobility demonstration 
treatment and control groups.
    For PHAs participating in MTW expansion cohorts one and five and in 
the HCV mobility demonstration, the following MTW flexibilities may not 
be implemented without the express written permission of HUD: Work 
requirements, vacancy loss, damage claims, other landlord incentives, 
pre-qualifying unit inspections, and reasonable penalty payments for 
landlords may not be implemented due to the potential for the offering 
of additional services to families and landlords in the HCV mobility 
demonstration treatment and control groups that would result in 
noncomparable intervention when compared to other HCV mobility 
demonstration sites.
    Additionally, PHAs may not make Family Self-Sufficiency (``FSS'') 
programs mandatory under ``alternative family selection procedures'' 
for MTW self-sufficiency programs or FSS programs with MTW flexibility 
for similar reasons. PHAs that operate a mandatory FSS program also 
will not be allowed to waive operating the FSS program for the HCV 
program. However, service provision under local non-traditional 
activities could potentially be implemented with prior approval by HUD.

[[Page 560]]

    PHAs participating in the HCV mobility demonstration and the MTW 
expansion cohort one or cohort five may not implement the following MTW 
flexibilities without the express written permission of HUD: Term 
limits, tenant payment as a modified percentage of income, fixed 
subsidy, initial rent burden, and imputed income activities. This is 
due to the potential to influence residential locational choices for 
families based on unit rents and required family rent share. HUD has 
not fully determined whether PHAs would be able to limit portability 
for project-based voucher (``PBV'') units and will work with the 
research team to make a final determination.
    MTW flexibilities related to short term assistance and increasing 
the PBV program cap may be implemented as long as HUD provides prior 
approval. These activities may be restricted due to the potential for 
interfering with the PHA being able to meet the minimum enrollment 
requirements for the HCV mobility demonstration.

Restrictions on Cohorts Two (Rent Reform), Three (Work Requirements), 
and Four (Landlord Incentives)

    PHAs may not participate in cohorts two (rent reform), three (work 
requirements), or four (landlord incentives) of the MTW expansion and 
the HCV mobility demonstration. The evaluation in cohorts two (rent 
reform) and three (work requirements) will require family level 
randomization, which will create significant conflicts for the 
integrity of the HCV mobility demonstration evaluation, which also 
requires family level randomization.
    Inclusion of PHAs in the MTW expansion cohort four (landlord 
incentives) and the mobility demonstration would also create 
significant research complications, due to the HCV mobility 
demonstration requiring a standard set of landlord incentives which 
would likely differ from the landlord incentive research requirements 
of the MTW expansion.

New Policy Changes for PHAs After Selection in the HCV Mobility 
Demonstration

    After selection, and for the duration of participation in the HCV 
mobility demonstration, PHAs that participate in cohorts one and five 
of the MTW expansion, legacy MTW PHAs, and all non-MTW PHAs, must also 
work closely with HUD and the evaluator before any new policy changes 
can be implemented. The process and terms for adoption of new policy 
changes will be described in the HCV mobility demonstration MOU 
executed between HUD and the PHA. This is consistent with the initial 
HCV Mobility Demonstration Notice, which asked PHAs to identify any 
potential conflicts between their programs and the HCV mobility 
demonstration. The initial HCV Mobility Demonstration Notice states, 
``After the program and research design is finalized, HUD will draft a 
memorandum of understanding (MOU) that outlines roles, 
responsibilities, the program and research design, services to be 
offered, and descriptions of administrative policies, among other 
things. HUD also will draft a performance standards agreement that 
outlines programmatic goals, recapture and reallocation terms, a 
budget, and a payment schedule for mobility-related services.''
    In other words, and similar to other evaluations conducted by HUD, 
PHAs that participate in the HCV mobility demonstration will not be 
permitted to adopt any policy changes during the duration of their 
participation that conflict with the HCV mobility demonstration 
implementation and research.

Selection for MTW Expansion Cohorts One (MTW Flexibilities) and Two 
(Rent Reform)

    HUD anticipates that the announcement of the selection of PHAs for 
the HCV mobility demonstration and the first and second cohorts of the 
MTW expansion will happen around the same time in early 2021. PHAs that 
are selected for the HCV mobility demonstration and cohort one of the 
MTW expansion will be required to limit certain MTW flexibilities in 
order to participate in both programs. HUD will document these 
limitations in the HCV mobility demonstration memorandum of 
understanding to be executed between the PHA and HUD. PHAs selected for 
cohort two (rent reform) of the MTW expansion and the HCV mobility 
demonstration will be asked to decide which program the PHA will 
participate in and withdraw from the other program. The PHA must choose 
which demonstration to participate in and withdraw from the other 
demonstration within 21 calendar days after notifications of selection 
have been made for both programs.
    If a PHA applied as a single PHA or as part of a joint application 
to the HCV mobility demonstration and decides to participate in cohort 
two (rent reform) of MTW expansion, the application to the HCV mobility 
demonstration will be withdrawn. Given the extensive nature of both 
applications, HUD strongly encourages PHAs that are part of a joint HCV 
mobility demonstration application to discuss whether any of the PHAs 
intend to participate in the MTW expansion.
    However, PHAs submitting a joint application to the HCV mobility 
demonstration with a PHA that also is applying for cohort two (rent 
reform) of the MTW expansion may submit a second application for the 
HCV mobility demonstration if they otherwise qualify under one of the 
statutory eligibility categories. HUD will score second applications 
along with the rest of the applications, but would only consider the 
score of the second application (which may be different than the score 
of the first application) if a PHA as part of a joint application 
chooses to participate in cohort two (rent reform) of the MTW expansion 
rather than the HCV mobility demonstration. No applications will be 
considered after the application deadline.

Technical Corrections

    In FR Notice 6191-N-01, published in the Federal Register on July 
15, 2020 (85 FR 42890) Section VII Application Format, Part K, Category 
A of the HCV Mobility Demonstration Notice, HUD inadvertently defined 
``an adequate number of moderately priced rental units in high-
opportunity areas'' incorrectly. The correct definition is ``a selected 
service area where at least 20 percent of the standard-quality rental 
stock within that service area is located in [zip code tabulated areas] 
ZCTAs where the [small area fair market rent] SAFMR is more than 110 
percent of the Metropolitan Area FMR.'' The data tool provided by HUD 
to calculate this for PHAs is correct and has been using this correct 
definition.
    In FR Notice 6191-N-01, Section VII Application Format, Part 3, 
Capacity of the Organization of the Mobility Demonstration Notice, HUD 
requested PHAs to submit, ``Number of recertifications completed for 
families with children between January 1, 2010 and December 31, 2019.'' 
PHAs should submit the number of recertifications completed for 
families with children between January 1, 2019 and December 31, 2019.

R. Hunter Kurtz,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 2020-29266 Filed 1-5-21; 8:45 am]
BILLING CODE 4210-67-P