The Housing Opportunity through Modernization Act of 2016 (HOTMA)

On July 29, 2016, HOTMA was signed into law. HOTMA makes numerous amendments to Sections 3, 8, and 16 of the United States Housing Act of 1937(1937 Act), including significant changes to income calculation, net family assets, and income reviews.

HUD finalized HOTMA rulemaking in 2023 to put Sections 102, 103, and 104 into effect through revisions to HUD’s regulations found in 24 CFR Part 5 and 24 CFR Part 891.

• Section 102 addresses income reviews, including the frequency of income reviews and revises the definitions of income and assets.
• Section 103 is not applicable to multifamily housing programs.
• Section 104 sets asset limits for both Section 8 Project-Based Rental Assistance and Section 202/8 programs.

The final rule is effective on January 1, 2024. Please review Section 6.2 in the implementation notice for more information about when MFH Owners are required to become fully compliant with HOTMA.

Click on the HOTMA Quick Start icon below to read more about HOTMA and the final rule.