The OHA has used its MTW authority to provide "sponsor-based" PSH. The PHA provides rental assistance to an agency that then signs master-leases for apartments, or sometimes an entire building, and assumes responsibility for selecting tenants who have rental agreements with the program sponsor. The program sponsor collects tenants rent contributions and enforces the terms of rental agreements. Depending on the terms of the agreement with the property owner, the sponsor may also assume some other responsibilities related to security, maintenance or improvements. This would not be possible under the rules of the regular HCV program, under which the household is responsible for selecting the housing unit and paying the rent.
The service-provider agency selects tenants for this sponsor-based PSH that have characteristics that would lead landlords to refuse to rent to them without the master-lease. For example, they may be vulnerable homeless people living in encampments or families reunifying when the mother returns from prison.