[Federal Register Volume 82, Number 85 (Thursday, May 4, 2017)]
[Notices]
[Pages 20912-20916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09139]



[[Page 20912]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5994-N-02]


Operations Notice for the Expansion of the Moving To Work 
Demonstration Program Solicitation of Comment; Waiver Revision and 
Reopening of Comment Period

AGENCY: Office of Public and Indian Housing, HUD.

ACTION: Notice.

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SUMMARY: This notice revises the parameters of three waiver provisions 
and reopens the comment period for HUD's January 23, 2017 Federal 
Register notice entitled ``Operations Notice for the Expansion of the 
Moving To Work Demonstration Program Solicitation of Comment.''

DATES: Comment due date: The comment deadline for the January 23, 2017 
notice, as revised by this notice, is June 5, 2017.

FOR FURTHER INFORMATION CONTACT: Marianne Nazzaro, Office of Public and 
Indian Housing, Department of Housing and Urban Development, 451 7th 
Street SW., Room 4130, Washington, DC 20410; email address [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The MTW demonstration program was established under Section 204 of 
Title II of section 101(e) of the Omnibus Consolidated Rescissions and 
Appropriations Act of 1996, Public Law 104-134 (approved April 26, 
1996). The demonstration was significantly expanded under the 2016 MTW 
expansion statute, Section 239 of Division L, Title IV of the 
Consolidated Appropriations Act, 2016, Public Law 114-113 (approved 
December 18, 2015) (2016 MTW expansion). The 2016 MTW expansion 
authorizes HUD to expand the MTW demonstration program from the current 
level of 39 PHAs to an additional 100 PHAs over a period of seven 
years.
    On January 23, 2017 (82 FR 8056), HUD published in the Federal 
Register a notice that sought comment on the proposed methods of 
operations for PHAs joining the MTW demonstration through the 2016 MTW 
expansion. Included in that notice are appendices that list available 
waivers, and the parameters of those waivers. These include Appendix A, 
``General Waivers'' (82 FR 8071 et seq.), and Appendix B, ``Conditional 
Waivers'' (82 FR 8076 et seq.). General waivers are those that will be 
granted without HUD review beyond the MTW application review. 
Conditional waivers are those waivers that will be granted following 
additional HUD review and approval.
    This notice makes a revision to one of the Appendix A waivers, and 
two of the Appendix B waivers.

II. Revisions to Parameters of Waivers

A. Appendix A: General Waivers

    For the waiver entitled ``Authorizations Related to Family Self 
Sufficiency,'' one of the available activities listed in the fourth 
column is: ``The Agency is authorized to develop its own recruitment 
and selection procedures for its FSS program(s).'' In the fifth column, 
``Parameters,'' the corresponding statement as originally published (82 
FR 8072 (January 23, 2017)) reads:

    Recruitment, eligibility, and selection policies and procedures 
must be consistent with the Department's nondiscrimination and equal 
opportunity requirements. Agency may not require families to 
participate in the program as a condition of receiving housing 
assistance. Agency may not include current work status, work history 
and/or source of income as part of the selection criteria. 
``Family'' is not limited to families with a member who is able to 
work full time, but is defined broadly so as not to exclude families 
with a member who is disabled but able to work, disabled but unable 
to work, or working as a caregiver for a family member with a 
disability.

This statement is revised by this notice to remove the second sentence 
and add two new sentences in its place, so that the statement reads 
(emphasis added):

    Recruitment, eligibility, and selection policies and procedures 
must be consistent with the Department's nondiscrimination and equal 
opportunity requirements. A PHA may make FSS participation mandatory 
by waiving the statutory and regulatory definition of FSS family or 
participating family which is ``a family that resides in public 
housing or receives assistance under the rental certificate or 
rental voucher programs, and that elects to participate in the FSS 
program'' (24 CFR 984.103(b)). The Agency may not make FSS 
participation mandatory for individuals that do not meet the 
definition of an eligible family at Section 23(n)(3) of the U.S. 
Housing Act of 1937 (1937 Act), 42 U.S.C. 1437u(n)(3), and those 
exempted from the Community Service Requirement under Section 
12(c)(2)(A), (B), (D) and (E) of the 1937 Act, 42 U.S.C. 
1437j(c)(2)(A), (B), (D), and (E). If the Agency requires FSS 
participation as a condition for housing subsidy, the Agency must 
develop and adopt a non-compliance policy and a hardship exemption 
policy and conduct an impact analysis in accordance with MTW 
guidance prior to the implementation of the activity. If an Agency 
terminates the housing subsidy or tenancy of a family for alleged 
violation of mandatory FSS participation, it will provide a notice 
at least 60 days prior to the date of termination informing the 
family that it is entitled to a hearing under the procedures stated 
in the Agency's Grievance Procedure (24 CFR part 966, subpart B). 
Any resulting termination of assistance or tenancy must be based on 
the noncompliance policy, and there shall be no termination of 
tenancy or assistance if such action would result in hardship for 
the family under the hardship policy. The noncompliance policy may 
not include minor infractions of FSS as a basis for termination of 
tenancy or subsidy. An Agency may not include current work status, 
work history and/or source of income as part of the selection 
criteria. ``Family'' is not limited to families with a member who is 
able to work full time, but is defined broadly so as not to exclude 
families with a member who is disabled but able to work, disabled 
but unable to work, or working as a caregiver for a family member 
with a disability.

B. Appendix B: Conditional Waivers

    For waiver 3 under the ``Activities Related to Public Housing'' 
heading, entitled ``PH--Work Requirements,'' the first sentence of the 
``Available Activities'' statement as originally published (82 FR 8079 
(January 23, 2017)) reads:

    Work Requirement (PH): The Agency may implement a work 
requirement for public housing residents between the ages of 18 and 
54.

This sentence is revised to read:

    Work Requirement (PH): The Agency may implement a work 
requirement for public housing residents between the ages of 18 and 
61.

    For waiver 6 under the ``Activities Related to Housing Choice 
Vouchers'' heading, entitled ``HCV & PBV--Work Requirements,'' the 
first sentence of the ``Available Activities'' statement as originally 
published (82 FR 8079 (January 23, 2017)) reads:

    Work Requirement (HCV & PBV): The Agency may implement a work 
requirement for HCV and PBV residents between the ages of 18 and 54.

This sentence is revised to read:

    Work Requirement (HCV & PBV): The Agency may implement a work 
requirement for HCV and PBV residents between the ages of 18 and 61.

    Dated: May 2, 2017.
Jemine A. Bryon,
General Deputy Assistant Secretary for Public and Indian Housing.

[[Page 20913]]



                                                                   Appendix A Excerpt
 [Note: Comments are being accepted on the original notice and appendices published at 82 FR 8056 (January 23, 2017) until the comment deadline in this
                notice. These excerpts from Appendices A and B are provided to show the context of the changes described in this notice]
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         No.                Waiver name            Waiver description        Regulations waived      Available activities             Parameters
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                                            Activities Related to Public Housing and Housing Choice Vouchers
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3...................  Authorizations Related  The Agency is authorized to  Certain provisions of  Waive Operating a Required  Recruitment, eligibility,
                       to Family Self          operate any of its           Section 23 of the      FSS Program (Both): The     and selection policies
                       Sufficiency.            existing self-sufficiency    1937 Act and 24 CFR    Agency is authorized to     and procedures must be
                                               and training programs,       984.                   waive its requirement to    consistent with the
                                               including its Family Self-                          operate the traditional     Department's
                                               Sufficiency (FSS) Program                           FSS program.                nondiscrimination and
                                               and any successor programs                         Alternative to Program       equal opportunity
                                               exempt from certain HUD                             Coordinating Committee      requirements. A PHA may
                                               program requirements. If                            (Both): The Agency is       make FSS participation
                                               the Agency receives                                 authorized to create an     mandatory by waiving the
                                               dedicated funding for an                            alternative structure for   statutory and regulatory
                                               FSS coordinator, such                               securing local resources    definition of FSS family
                                               funds must be used to                               to support an FSS program.  or participating family
                                               employ a self-sufficiency                          Alternative Family           which is ``a family that
                                               coordinator. In developing                          Selection Procedures        resides in public housing
                                               and operating such                                  (Both): The Agency is       or receives assistance
                                               programs, the Agency is                             authorized to develop its   under the rental
                                               authorized to establish                             own recruitment and         certificate or rental
                                               strategic relationships                             selection procedures for    voucher programs, and
                                               and partnerships with                               its FSS program(s).         that elects to
                                               local private and public                                                        participate in the FSS
                                               agencies and service                                                            program'' (24 CFR
                                               providers to leverage                                                           984.103(b)). The Agency
                                               expertise and funding. In                                                       may not make FSS
                                               implementing this waiver,                                                       participation mandatory
                                               the Agency must execute a                                                       for individuals that do
                                               contract of participation,                                                      not meet the definition
                                               or other locally developed                                                      of an eligible family at
                                               agreement, that is at                                                           Section 23(n)(3) of the
                                               least 5 years but no more                                                       U.S. Housing Act of 1937
                                               than 10 years. However,                                                         (1937 Act) (42 U.S.C.
                                               notwithstanding the above,                                                      1437u(n)(3)), and those
                                               any funds granted pursuant                                                      exempted from the
                                               to a competition must be                                                        Community Service
                                               used in accordance with                                                         Requirement under Section
                                               the NOFA and the approved                                                       12(c)(2)(A), (B), (D) and
                                               application and work plan.                                                      (E) of the 1937 Act, 42
                                                                                                                               U.S.C. 1437j(c)(2)(A),
                                                                                                                               (B), (D), and (E). If the
                                                                                                                               Agency requires FSS
                                                                                                                               participation as a
                                                                                                                               condition for housing
                                                                                                                               subsidy, a hardship
                                                                                                                               policy and impact
                                                                                                                               analysis must be
                                                                                                                               developed and adopted in
                                                                                                                               accordance with MTW
                                                                                                                               guidance prior to the
                                                                                                                               implementation of the
                                                                                                                               activity. If an Agency
                                                                                                                               terminates the housing
                                                                                                                               subsidy or tenancy of a
                                                                                                                               family for alleged
                                                                                                                               violation of mandatory
                                                                                                                               FSS participation, the
                                                                                                                               family will be entitled
                                                                                                                               to a hearing under the
                                                                                                                               Agency's Grievance
                                                                                                                               Procedure (24 CFR part
                                                                                                                               966, subpart B). An
                                                                                                                               Agency may not include
                                                                                                                               current work status, work
                                                                                                                               history and/or source of
                                                                                                                               income as part of the
                                                                                                                               selection criteria.
                                                                                                                               ``Family'' is not limited
                                                                                                                               to families with a member
                                                                                                                               who is able to work full
                                                                                                                               time, but is defined
                                                                                                                               broadly so as not to
                                                                                                                               exclude families with a
                                                                                                                               member who is disabled
                                                                                                                               but able to work,
                                                                                                                               disabled but unable to
                                                                                                                               work, or working as a
                                                                                                                               caregiver for a family
                                                                                                                               member with a disability.
                                                                                                  Modify or Eliminate the     The Agency may modify the
                                                                                                   Contract of Participation   terms of the contract of
                                                                                                   (Both): The Agency is       participation to align
                                                                                                   authorized to modify the    with adjustments made to
                                                                                                   terms of, or eliminate      its FSS program(s) using
                                                                                                   the contract of             MTW flexibility. Further,
                                                                                                   participation, in lieu of   the Agency may
                                                                                                   a local form.               discontinue use of the
                                                                                                                               contract of participation
                                                                                                                               and instead employ a
                                                                                                                               locally-developed
                                                                                                                               agreement that codifies
                                                                                                                               the terms of
                                                                                                                               participation.

[[Page 20914]]

 
                                                                                                  Policies for Addressing     Consistent with the goals
                                                                                                   Increases in Family         and structure of its MTW
                                                                                                   Income (Both): The Agency   FSS program, the Agency
                                                                                                   is authorized to set its    can set policies for
                                                                                                   own policies for            whether income increases
                                                                                                   addressing increases in     are recognized for
                                                                                                   family income during        purposes of increasing
                                                                                                   participation in the FSS    rent or changing the
                                                                                                   program.                    amount of funds moved to
                                                                                                                               escrow/savings through
                                                                                                                               the program. The Agency
                                                                                                                               may not use income
                                                                                                                               increases during
                                                                                                                               participation in the FSS
                                                                                                                               program to change a
                                                                                                                               family's eligibility
                                                                                                                               status for purposes of
                                                                                                                               participation in the FSS
                                                                                                                               program or for the
                                                                                                                               receipt public housing or
                                                                                                                               HCV assistance.
                                                                                                  Calculating FSS Credits     The Agency may set
                                                                                                   (Both): The Agency is       policies to defer income
                                                                                                   authorized to create        increases to savings OR
                                                                                                   alternative methods for     to allow participants to
                                                                                                   computing the family's      earn savings deposits
                                                                                                   FSS credit.                 based on meeting certain
                                                                                                                               program milestones. Such
                                                                                                                               policies must be made
                                                                                                                               clear to participants in
                                                                                                                               writing prior to starting
                                                                                                                               their participation in
                                                                                                                               the program.
                                                                                                  Disbursement of Savings     Consistent with the goals
                                                                                                   (Both): The Agency may      and structure of its MTW
                                                                                                   set its own policies for    FSS program, the Agency
                                                                                                   when savings funds can be   can set policies for when
                                                                                                   disbursed to participants.  savings are disbursed to
                                                                                                                               participants. This could
                                                                                                                               mean all funds are
                                                                                                                               disbursed at once, or at
                                                                                                                               certain key points of
                                                                                                                               participation. Such
                                                                                                                               policies must be made
                                                                                                                               clear to participants in
                                                                                                                               writing prior to starting
                                                                                                                               their participation in
                                                                                                                               the program.
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[[Page 20915]]


                                                                   Appendix B Excerpt
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         No.                Waiver name            Waiver description        Regulations waived      Available activities             Parameters
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                                                          Activities Related to Public Housing
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3...................  PH--Work Requirements.  The Agency is authorized to  Certain provisions of  Work Requirement (PH): The  Residents must have the
                                               implement a requirement      Section 3 of the       Agency may implement a      opportunity to utilize
                                               that a specified segment     1937 Act and 24 CFR    work requirement for        the provisions of the
                                               of its public housing        960.206.               public housing residents    Agency's Grievance
                                               residents work as a                                 between the ages of 18      Procedure to resolve a
                                               condition of tenancy                                and 61. The requirement     dispute regarding a
                                               subject to subject to all                           shall be no less than 15    determination that a
                                               applicable Fair Housing                             hours of work per week      resident has failed to
                                               Requirements and the                                and no more than 30 hours   comply with the work
                                               mandatory admission and                             of work per week. Work      requirement. The Agency
                                               prohibition requirements                            requirements shall not be   must update its ACOP to
                                               imposed by sections 576-                            applied to exclude, or      include a description of
                                               578 of the Quality Housing                          have the effect of          the circumstances in
                                               and Work Responsibility                             excluding, the admission    which residents shall be
                                               Act of 1998 and Section                             of or participation by      exempt for the
                                               428 of Public Law 105-276.                          persons with disabilities   requirement and hardship
                                               Those individuals exempt                            or families that include    policies. The ACOP should
                                               from the Community Service                          persons with                include a description of
                                               Requirement in accordance                           disabilities. Work          what is considered work
                                               with Section 12(c)(2)(A),                           requirements shall not      as well as other
                                               (B), (D) and (E) of the                             apply to person with        activities that shall be
                                               1937 Act are also exempt                            disabilities or families    considered acceptable
                                               from the Agency's work                              that include persons with   substitutes for work.
                                               requirement.                                        disabilities. However,      Services, or referrals to
                                                                                                   persons with disabilities   services, must be
                                                                                                   and families that include   provided by the Agency to
                                                                                                   persons with disabilities   support preparing
                                                                                                   must have equal access to   families to comply with
                                                                                                   the full range of program   this requirement. The
                                                                                                   services and other          hardship policy in the
                                                                                                   incentives.                 ACOP should apply to
                                                                                                                               residents who are
                                                                                                                               actively trying to comply
                                                                                                                               with the Agency's work
                                                                                                                               requirement, but are
                                                                                                                               having difficulties
                                                                                                                               obtaining work or an
                                                                                                                               acceptable substitute.
                                                                                                                               The ACOP should also
                                                                                                                               describe the consequences
                                                                                                                               of failure to comply with
                                                                                                                               the work requirement.
                                                                                                                               Agencies may not
                                                                                                                               implement the PH-Work
                                                                                                                               Requirements Waiver on
                                                                                                                               individuals exempted from
                                                                                                                               the Community Service
                                                                                                                               Requirement under Section
                                                                                                                               12(c)(2)(A), (B), (D) and
                                                                                                                               (E).
                                                                                                                              While the work
                                                                                                                               requirements do not apply
                                                                                                                               to persons with
                                                                                                                               disabilities or families
                                                                                                                               that include a person
                                                                                                                               with disabilities, such
                                                                                                                               persons and families are
                                                                                                                               not precluded from
                                                                                                                               working or engaging in
                                                                                                                               substitute activities
                                                                                                                               (such as caring for a
                                                                                                                               family member who is
                                                                                                                               disabled). Regardless of
                                                                                                                               the level of engagement
                                                                                                                               with work or substitute
                                                                                                                               activities, persons and
                                                                                                                               families that include
                                                                                                                               persons with disabilities
                                                                                                                               must have equal access to
                                                                                                                               services or referral to
                                                                                                                               services to support their
                                                                                                                               efforts to obtain work or
                                                                                                                               an acceptable substitute,
                                                                                                                               and any other services or
                                                                                                                               other incentives
                                                                                                                               associated with the
                                                                                                                               program.
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[[Page 20916]]

 
                                                      Activities Related to Housing Choice Vouchers
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6...................  HCV & PBV--Work         The Agency is authorized to  Certain provisions of  Work Requirement (HCV &     The Agency must update its
                       Requirements.           implement a requirement      Sections 8(o)(7)(a),   PBV): The Agency may        Administrative Plan to
                                               that a specified segment     8(o)(13)(F), and       implement a work            include a description of
                                               of its HCV and PBV           8(o)(13)(G) of the     requirement for HCV and     the circumstances in
                                               residents work as a          1937 Act and 24 CFR    PBV residents between the   which families shall be
                                               condition of tenancy         982.303, 982.309 and   ages of 18 and 61. The      exempt from the
                                               subject to all applicable    983 Support F.         requirement shall be no     requirement. The
                                               Fair Housing Requirements.                          less than 15 hours of       Administrative Plan must
                                                                                                   work per week and no more   also include a hardship
                                                                                                   than 30 hours of work per   policy. The
                                                                                                   week. The Agency shall      Administrative Plan
                                                                                                   provide supportive          should include a
                                                                                                   services to assist          description of what is
                                                                                                   families obtain             considered work as well
                                                                                                   employment or an            as other activities that
                                                                                                   acceptable substitute.      shall be considered
                                                                                                   Work requirements shall     acceptable substitutes
                                                                                                   not be applied to           for work. Services, or
                                                                                                   exclude, or have the        referrals to services,
                                                                                                   effect of excluding, the    must be provided by the
                                                                                                   admission of or             Agency to support
                                                                                                   participation by persons    preparing families for
                                                                                                   with disabilities or        the termination of
                                                                                                   families that include       assistance. The hardship
                                                                                                   persons with                policy in the
                                                                                                   disabilities. Work          Administrative Plan
                                                                                                   requirements shall not      should apply to families
                                                                                                   apply to persons with       who are actively trying
                                                                                                   disabilities or families    to comply with the
                                                                                                   that include persons with   Agency's work
                                                                                                   disabilities. However,      requirement, but are
                                                                                                   persons with disabilities   having difficulties
                                                                                                   and families that include   obtaining work or an
                                                                                                   persons with disabilities   acceptable substitute.
                                                                                                   must have equal access to   The Administrative Plan
                                                                                                   the full range of program   should also describe the
                                                                                                   services and other          consequences of failure
                                                                                                   incentives.                 to comply with the work
                                                                                                                               requirement.
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[FR Doc. 2017-09139 Filed 5-3-17; 8:45 am]
 BILLING CODE 4210-67-P