HUD tweaks Moving to Work program rules again.
Published Date: 9/1/2026
Notice
Summary
This Notice provides revisions to the Notice entitled Operations Notice for the Expansion of the Moving to Work Demonstration Program published in the Federal Register on August 28, 2020, with technical revisions published in the Federal Register on March 20, 2025.
Analyzed Economic Effects
7 provisions identified: 1 benefits, 4 costs, 2 mixed.
Local Non‑Traditional Budget Cap Removed
HUD removed the Safe Harbor limit that had capped Local Non‑Traditional activities at 10% of the Housing Assistance Payment (HAP) budget. Public housing agencies (PHAs) designated under the MTW expansion may now undertake Local Non‑Traditional activities without that 10% budget restriction.
Imputed Income Hours Increased to 40
HUD edited the Imputed Income safe harbor to increase the maximum hours counted per individual to 40 hours per week and deleted the previous safe harbor limit on maximum hours per household. This change alters how PHAs may impute income when calculating tenant contributions.
Work Requirement Safe Harbor Updated
HUD revised the Work Requirements safe harbor to increase the maximum hours per individual to 40 hours per week, removed the maximum hours per household safe harbor, and shortened the required notice period to three months. These edits change the safe harbor parameters PHAs may use when imposing work-related conditions.
Stepped Rent No Longer Unit‑Size Linked
HUD edited the Stepped Rent safe harbor so that stepped rent no longer must be tied to unit size. PHAs operating under MTW may design stepped rent schedules without linking step levels to unit size.
Minimum Term for Time‑Limited Aid Cut to Two Years
HUD edited the Term‑Limited Assistance safe harbor to decrease the minimum term of assistance to two years. PHAs may implement term‑limited assistance with a shorter minimum period of two years under the MTW safe harbor.
Disparate Impact Consideration Removed
HUD deleted the requirement to consider disparate impact in impact analyses (Appendix II) and removed related language in the MTW Self‑Sufficiency Programs section. MTW agencies will not be required by this notice to include disparate impact as an element in those analyses.
Alternative Income Rules Extend to Elderly/Disabled
HUD edited the Alternative Income Inclusions/Exclusions safe harbor to allow the policy to apply to elderly and/or disabled individuals when there is no detrimental effect. This permits PHAs to adopt these income rules for elderly or disabled households in appropriate cases.
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Key Dates
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