HUD Opens Application Process for Additional MTW Expansion Agency

By: Eric Oberdorfer, Director, Policy and Legislative Affairs

May 8, 2026 — HUD released Notice PIH 2026-13 which opens the application process for one final available spot in the Moving to Work (MTW) Expansion’s “Flexibility II” cohort. Eligible small public housing agencies, (PHAs) with 1,000 or fewer combined public housing and Housing Choice Voucher units, can apply for participation.

The Flexibility II cohort is designed to evaluate how MTW flexibilities impact agency operations, administrative efficiency, and resident outcomes. Participating agencies may test innovative locally designed policies while operating under certain exemptions from standard public housing and voucher program rules. The agency selected for this cohort is expected to implement work requirements and/or term limits for non-elderly, non-disabled adults within the first year of MTW designation.

To qualify, PHAs must meet several eligibility requirements, including maintaining High Performer status under PHAS and/or SEMAP, remaining free of unresolved civil rights findings, and demonstrating compliance with key reporting and financial requirements. If more than one eligible agency applies, HUD will select the final participant through a lottery process.

Applications must include an MTW Plan, administrative efficiencies narrative, board resolution, and documentation of a public participation process. The notice states that submissions must be sent electronically to HUD’s MTW Office via email at MTWFlexibilityII@hud.gov by 11:59pm ET on September 16, 2026.