Sec. 504. New Moving to Work cohort

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In this section: The term Moving to Work demonstration means the Moving to Work demonstration authorized under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note). The term Secretary means the Secretary of Housing and Urban Development. After the completion of the initial report required under subsection (h)(2), the Secretary may add up to an additional 25 public housing agencies that are designated as high performing agencies under the Public Housing Assessment System or the Section 8 Management Assessment Program to participate in a new cohort as part of the Moving to Work demonstration.

The new cohort authorized under paragraph

(1)shall be entitled the Economic Opportunity and Pathways to Independence Cohort . Subject to paragraph (2), the authority of the Secretary to grant waivers to agencies admitted to the Moving to Work demonstration under this section or to designate policy changes as part of a cohort design under this section shall be limited to the waivers codified as of January 2025 in Appendix I of the document of the Department of Housing and Urban Development entitled Operations Notice for the Expansion of the Moving to Work Demonstration Program (FR–5994–N–05) published in the Federal Register on August 28, 2020, as amended by the notice entitled Operations Notice for Expansion of the Moving to Work Demonstration Program Technical Revisions (FR–5994–N–06) published in the Federal Register on March 20, 2025. Under paragraph (1), the Secretary may not grant waivers 1c, 1d, 1e, 1f, 1k, 1l, 1o, 1p, 1q, 6, 7, 9a, 9h, or 12 in the document described in paragraph (1), including modifications of or safe harbor requirement waivers for such waivers. In carrying out the Moving to Work demonstration cohort established under this section, the Secretary may consider policy options to provide opt-out savings or escrow accounts and report positive rental payments to consumer reporting agencies (as defined in section 603 of the Fair Credit Reporting Act ( 15 U.S.C. 1681a )) with resident consent. Public housing agencies in the cohort authorized under this section may expend not more than 5 percent of the amounts those public housing agencies receive in any fiscal year for housing assistance payments under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ) for purposes other than such housing assistance payments. Such other uses of amounts described in paragraph

(1)shall comply with all other applicable requirements. The amount of funding public housing agencies receive for renewal of housing assistance payments under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ) shall be determined according to the same funding formula applicable to public housing agencies that do not participate in the Moving to Work demonstration, except that the Secretary shall provide public housing agencies funding to renew any funds expended under this subsection, with an adjustment for inflation. The amount of funding public housing agencies receive for administrative fees under section 8(q) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(q) ), public housing operating subsidies under section 9(e) of the United States Housing Act of 1937 ( 42 U.S.C. 1437g(e) ), and public housing capital funding under section 9(d) of the United States Housing Act of 1937 ( 42 U.S.C. 1437g(d) ) shall be determined according to the same funding formula applicable to public housing agencies that do not participate in the Moving to Work demonstration. The Secretary shall select public housing agencies designated under this section through a competitive process, as determined by the Secretary, with the following parameters: No public housing agency shall be granted this designation under this section that administers more than 27,000 aggregate housing vouchers and public housing units. Of the public housing agencies selected under this section, not more than 10 shall administer 1,000 or fewer aggregate housing vouchers and public housing units, not more than 6 shall administer between 1,001 and 6,000 aggregate housing vouchers and public housing units, and not more than 4 shall administer between 6,001 and 27,000 aggregate housing vouchers and public housing units. Selection of public housing agencies under this section shall be based on ensuring the geographic diversity of Moving to Work demonstration public housing agencies. Within the requirements under paragraphs

(1)through (3), the Secretary shall prioritize selecting public housing agencies that serve families with children and youth aging out of foster care at a rate above the national average. Consistent with section 204(c)(3) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note), public housing agencies selected for the Moving to Work demonstration under this section shall— ensure that not less than 75 percent of the families assisted are very low-income families, as defined in section 3(b)(2)(B) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b)(2)(B) ); establish a reasonable rent policy, which shall be designed to encourage employment and self-sufficiency by participating families, consistent with the purpose of the Moving to Work demonstration, such as by excluding some or all of a family’s earned income for purposes of determining rent; continue to assist substantially the same total number of eligible low-income families as would have been served had the amounts not been combined; maintain a comparable mix of families (by family size) as would have been provided had the amounts not been used under the Moving to Work demonstration; and assure that housing assisted under the Moving to Work demonstration meets housing quality standards established or approved by the Secretary. If the Secretary finds that a public housing agency participating in the cohort authorized under this section is not in compliance with the requirements under this section, the Secretary shall make a determination of noncompliance. Upon making a determination under paragraph (1), the Secretary shall develop a process to bring the public housing agency into compliance. If a public housing agency cannot be brought into compliance under the process developed under paragraph (2), the Secretary shall remove the participating public housing agency from the cohort and replace it with a similarly qualified public housing agency currently not in the cohort chosen in the manner described in subsection (e). Upon removing a public housing agency under paragraph (3), the Secretary shall immediately submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives— a notification of the removal; and a report on the active steps the Secretary is taking to replace the public housing agency with a new public housing agency. The Secretary shall continue ongoing research investigations commenced as part of the assessment of the cohorts established under section 239 of the Department of Housing and Urban Development Appropriations Act, 2016 ( 42 U.S.C. 1437f note; Public Law 114–113 ), make public all products completed as part of those investigations, and keep such products online for at least 5 years. The Secretary shall coordinate with the advisory committee established under section 239 of the Department of Housing and Urban Development Appropriations Act, 2016 ( 42 U.S.C. 1437f note; Public Law 114–113 ) to establish a research program to evaluate the outcomes and efficacy of the following for all Moving to Work demonstration agencies designated under the authority under such section and this section: The waivers granted to each cohort and whether those waivers accomplish the goals of achieving greater cost effectiveness and administrative capacity, incentivizing families to become economically self-sufficient, and increasing housing choice. The additional flexibilities granted to individual public housing agencies under each cohort. How the flexibilities described in clause

(ii)were used for local, non-traditional activities. Not later than 180 days after the date of enactment of this Act, and annually thereafter, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that contains the following for each Moving to Work demonstration cohort under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note), section 239 of the Department of Housing and Urban Development Appropriations Act, 2016 ( 42 U.S.C. 1437f note; Public Law 114–113 ), and this section: The annual administrative plans of each Moving to Work demonstration public housing agency. Assessments of longitudinal data, including data on units, households, and outcomes, which shall be evaluated to compare changes in the following trends before and after Moving to Work demonstration designation: Impacts on tenants based on the following, disaggregated by the public housing program and the housing choice voucher program: Eviction rates. Hardship policy usage. Share of rent covered by a household. Turnover, including the number of household moves with or without continued assistance. Reasons for exit from the program. The number and characteristics of households served, including households with a non-elderly family member with a disability, 3 or more minors, homelessness status at the time of admission, and average and median income as a percent of area median income. Impacts on public housing agency operations based on the following: The number of units, broken down by type. The size, including the number of bedrooms per unit, accessibility, affordability, and quality of units. The length of each waitlist maintained and average wait times. Changes in capital backlog needs and surplus fund and reserve levels. The number of public housing units undergoing a conversion under the rental assistance demonstration program authorized under the Department of Housing and Urban Development Appropriations Act, 2012 ( Public Law 112–55 ; 125 Stat. 673) or demolition or disposition projects under section 18 of the United States Housing Act of 1937 ( 42 U.S.C. 1437p ), including the number of units lost and the location of any replacement housing resulting from demolition or disposition. The share of project-based vouchers compared to tenant-based vouchers. The following annual housing choice voucher data: Voucher unit utilization rates. Voucher budget utilization rates. Annualized voucher success rate. Demographic composition of households issued vouchers compared to utilized vouchers. Average time to lease-up. Average cost per voucher. Average cost per landlord incentive. Ratio of the proportion of voucher households living in concentrated low-income areas to the proportion of renter-occupied units in concentrated low-income areas. Characteristics of census tracts where voucher recipients reside. How the public housing agency met each of the statutory requirements in section 204(c)(3) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note). Impacts on public housing staffing and capacity, including the average public housing agency operating, administrative, and housing assistance payment expenditures per household per month. Legislative recommendations for flexibilities that could be expanded to all public housing agencies and how each flexibility enhances housing choice, affordability, and administrative capacity and efficiency for public housing agencies. The Secretary shall maintain all reports submitted pursuant to this section in a manner that is publicly available, accessible, and searchable on the website of the Department of Housing and Urban Development for not less than 5 years. Annually, the Secretary shall make the annual plan of the Moving to Work demonstration, the Section 8 administrative plan, and the admission and continued occupancy policy publicly available in 1 location on the website of the Department of Housing and Urban Development for not less than 5 years. The Secretary may establish a searchable database on the website of the Department of Housing and Urban Development to track the types of flexibilities into which Moving to Work demonstration public housing agencies have opted or for which a waiver was approved by the Secretary, disaggregated by year such flexibilities were adopted or approved.

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