Moving to Work Program for Housing Authorities

September 15, 2025

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Moving to Work (MTW) is a demonstration program that offers participating public housing authorities (PHAs) increased flexibility in using federal housing funds to address local housing needs. This program is an integral part of a larger initiative to modernize public housing, with the goal of better serving its residents.

This article discusses the benefits of the MTW program for both residents and housing authorities, its key features, and the associated risks

What is the Moving to Work Program

Introduced by the U.S. Department of Housing and Urban Development (HUD) in 1996, MTW enables participating agencies to exempt themselves from certain federal rules and regulations. This empowers them to design and test new approaches that promote self-sufficiency and expand housing options for residents.

The MTW program is designed to enhance the cost-effectiveness of federal spending, incentivize economic self-sufficiency for families with children, and expand housing options for low-income families. As a testament to the program’s success, it has expanded to 139 agencies by 2025.

Benefits of the MTW Program

The MTW program offers several benefits for both residents and housing authorities, such as:

For Residents:
- Improved self-sufficiency: Empowers residents to find employment and enhance their financial stability through incentives, such as excluding certain earned income from rent calculations for a specified period.
- Increased housing choices: Allows housing authorities to increase the supply of affordable housing and adopt policies that make it easier for families to find housing in neighborhoods with greater opportunities. This is achieved through new construction or by providing more project-based vouchers.
- Greater empowerment: Enables residents to become self-sufficient and take control of their futures, shifting the relationship between the housing authority and the resident from one of dependence to a more partnership-based approach.
For Housing Authorities:
- Flexibility in administration: The housing authority has the flexibility to combine funds from different federal programs and use them where they are most needed. Doing so enables them to utilize funds where they are most needed, including the development of new housing, the improvement of existing residential units, or the funding of support services for residents.
- Lowers bureaucracy: Since housing authorities under MTW can bypass certain federal rules, they can act as mentors for residents and work for their betterment rather than as auditors.
- Supports local innovation: MTW provides housing authorities with the freedom to test local solutions to housing challenges, enabling them to pilot ideas such as reforms in the rent policies to align payments with local markets, landlord incentive programs to increase participation in voucher systems, and more. Some of these initiatives have later been adopted on a national scale.

The Moving to Work (MTW) program is transforming how housing authorities use federal funds to better serve their communities

MTW gives agencies the flexibility to foster self-sufficiency, expand housing options, and cut through red tape. Residents benefit from greater stability and empowerment, while housing authorities gain room for innovation and smarter resource management.

As the program grows, so do the challenges, from oversight and funding allocation to ensuring residents have the support they need. Looking to navigate Moving to Work successfully? Contact us today.

Key Features of the MTW Program

There are several key features of the MTW program, such as:

Offers flexibility in funding: Typically, housing authorities receive funds from different streams for different programs. However, under MTW, these funds can be combined into a single block grant. This provides housing authorities with the freedom to decide how best to allocate the received funds. For example, instead of spending on rent subsidies, they can use the funds for job training or housing development.
Provides flexibility in policy making: Participating housing authorities can request waivers from HUD regulations to test alternative policies. These policies can include creating different rent structures, simplifying application procedures to cut down on bureaucracy, implementing time limits on housing assistance to promote employment, and other measures.
Enforcing accountability: Although housing authorities enjoy considerable freedom, they are still required to submit regular HUD reports (plans, evaluations, and assessments) to monitor outcomes, such as housing stability and tenant satisfaction. This oversight prevents flexibility from compromising tenant protections or program integrity.

Challenges of the MTW Program

While the program provides valuable flexibility, it also presents potential risks:

Risk of misuse: Funds may be misused or allocated inefficiently.
Varying results: Program outcomes may differ considerably between different housing authorities.
Complex oversight: The program’s flexibility makes oversight and compliance challenging.
Application and compliance: Housing authorities must carefully manage the complex process of applying for and maintaining MTW status, ensuring it aligns with the program’s statutory goals.
Policy risk management: New policies, such as changes in rent structures or work requirements, must be designed with consideration for potential risks and their associated impacts.
Resident support: Robust support systems are crucial for helping residents adapt and progress toward greater self-sufficiency.

Despite these challenges, MTW’s expansion shows its recognized value as a model for public housing. This can catalyze fostering economic independence and community improvement, rather than just providing shelter.

MTW: Shaping the Next Phase of Affordable Housing

As the United States increasingly grapples with rising rents, a limited housing stock, and a growing homelessness crisis, the Moving to Work program has the potential to create stronger, more adaptive, and community-driven housing solutions across the country. With the program fast becoming a cornerstone of modern housing policy, it can serve as a blueprint for addressing broader housing challenges and providing affordable housing.