[Congressional Record Volume 152, Number 76 (Wednesday, June 14, 2006)]
[Senate]
[Pages S5876-S5877]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SUNUNU (for himself, Mr. Santorum, and Mr. Carper):
  S. 3508. A bill to authorize the Moving to Work Charter program to 
enable public housing agencies to improve the effectiveness of Federal 
housing assistance, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. SUNUNU. Mr. President, I rise today to introduce the Moving to 
Work Charter Program Act--legislation that would expand the successful 
Moving to Work demonstration project. Unfortunately, today's housing 
programs do not always meet the needs of local communities, and public 
housing agencies are subjected to one-size-fits-all regulations. 
National rent policies often times do not satisfy distinct 
characteristics of individual housing markets. Therefore, my 
legislation will increase flexibility for PHAs to address their local 
housing needs.
  Congress authorized the Moving to Work demonstration program in 1996, 
and the program has received temporary extensions since then. While the 
demonstration was originally intended to only be authorized for 3 
years--its success has led to continued support from Congress. Moving 
to Work, or MTW, has been successful due its innovative and locally-
designed approach to housing. Under the program, agencies are given 
appropriate flexibility to design programs that not only provide 
affordable housing, but aid residents in becoming self-sufficient. When 
MTW

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was established there were three main goals--achieving greater cost-
effectiveness, giving housing residents tools to become self-
sufficient, and increasing housing choices for low-income families. 
When one looks at the accomplishments of the agencies that have 
participated in the program, it is clear that MTW was instrumental in 
their success in meeting these goals. For this reason, I am eager to 
apply MTW's proven model to worthy agencies across the country.
  My legislation would establish a permanent Moving to Work Charter 
Program that would include up to 250 PHAs. Participating agencies would 
possess the same flexibility to design and implement innovative 
approaches as current MTW participants. While PHAs would have broader 
discretion, they would still be required to assist substantially the 
same number of low-income families they currently serve. The local 
flexibility and independence permitted under MTW will allow agencies to 
be more responsive to their local conditions, demands, and priorities. 
Every community has its unique housing needs that are not always best 
addressed by current HUD regulations.
  When looking at current national rent policies, it is evident we have 
a system in place that encourages dependency, by creating disincentives 
for individuals to work. Under current law, when an individual's income 
increases, their rent automatically increases. In essence we are 
punishing residents for earning more money--money that allows them to 
live more responsibly and independently. MTW gives agencies the ability 
to establish rent policies that will encourage residents to increase 
their income, because they can keep more of their income. In my own 
state of New Hampshire, the Keene Housing Authority has created a step 
rent program where tenant contributions to rent are increased on a 
yearly basis. While their income may increase, their rent will not. 
This creates an environment where residents are encouraged to work. 
Increases in tenant rent contributions are phased in each year, 
providing more certainty for tenants. At the same time, they are 
preparing residents for entry into the housing market by giving them 
job training support, tools for financial planning, and homeownership 
opportunities. This program has resulted in real income growth for 
residents, without a significant increase to their rents.
  The results speak for themselves. At the Keene Housing Authority 46 
percent of families were working full time when their MTW program 
started. Today, 65 percent are working full time. They have also issued 
more section 8 subsidies than before and have assisted more families in 
need. MTW has allowed Keene Housing Authority to meet the immediate 
housing needs of their tenants, while also helping their tenants become 
more independent.
  The MTW program also gives PHAs the ability to merge their funding 
streams--which is ideal for modernizing or redeveloping their housing 
stock. PHAs can combine these funds so long as they maintain assistance 
to the same number of families, and use their funds to continue their 
efforts to provide affordable housing. Through merging funding streams, 
Philadelphia has been able to better leverage their federal dollars, 
and in turn construct hundreds of additional units.
  Through community partnerships and innovative thinking at the local 
level, the Philadelphia PHA has been able to reach more low-income 
residents, while at the same time reinvigorating community development 
initiatives. Every community has distinctive housing needs--no one 
knows those local needs better than the housing agencies that are 
working every day to provide affordable housing options for community 
members. MTW allows its participants to maximize efficiency and direct 
resources where they feel they are most needed to address specific 
local needs. I specifically want to thank Senator Santorum for working 
with me on this legislation. Obviously, he has seen first hand the 
success of MTW in this State of Pennsylvania, and I appreciate his 
input on this bill.
  Additionally, I would like to thank Senator Carper for his support of 
this legislation. He has also witnessed the benefits of the MTW program 
in the State of Delaware. The Delaware State Housing Authority's MTW 
program has been tremendously successful in providing families with the 
tools to become more independent while still providing affordable 
housing. I look forward to working with both Senator Santorum and 
Carper in moving this legislation forward.
  By bringing more PHAs into MTW under my bill, more agencies will 
benefit from streamlined annual reporting and administrative 
procedures. By doing so, PHAs can focus more of their attention on 
meeting the housing needs of those they serve. Redundant and burdensome 
reporting requirements are time-consuming and unnecessary and take the 
attention away from residents. Under this legislation, PHAs will be 
able to work with HUD to develop more appropriate reporting 
requirements that compliment their housing services. For example, PHAs 
will have the ability to merge their waiting lists, modify inspection 
standards, and modify lease requirements. Small PHAs and large PHAs are 
vastly different--HUD should be able to work in collaboration with 
individual PHAs to determine which requirements pertain to certain 
agencies. Streamlined reporting will enable PHAs to establish local 
benchmarks and more purposefully evaluate their programs' effectiveness 
in providing affordable housing.
  My legislation has the support of the local agencies across my State, 
as well as the endorsement of the Public Housing Authorities Directors 
Association, the Council of Large Public Housing Authorities, and the 
National Association of Housing and Redevelopment Officials. I remain 
committed to working with the PHAs throughout the legislative process 
to achieve greater flexibility, while ensuring that individuals and 
families have continued access to affordable housing.
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