| HOTMA Final Rule Published in the Federal Register in February 2023 |
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HOUSING OPPORTUNITY THROUGH MODERNIZATION ACT (HOTMA) RESOURCES
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 the Section 8 and Public Housing programs. Asset limits do not apply to the Section 202/8, Section 202/162 Project Assistance Contract (PAC), 202/811 Project Rental Assistance Contract (PRAC), Senior Rental Preservation Assistance Contract (SPRAC), or the Section 811 Project Rental Assistance (PRA) programs.
Fact Sheet
A one-page summary of the key HOTMA changes to Multifamily Housing programs can be found here.
HOTMA Talking Points and Q&A for Multifamily Programs can be found here.
Get Ready!
The effective date of the HOTMA provisions will be January 1, 2024. Owners may not implement these provisions prior to their effective dates.
Implementation Notice (Coming Spring/Summer 2023!)
The Offices of Multifamily Housing and Public and Indian Housing will publish a joint supplemental notice in Spring/Summer 2023 to provide comprehensive implementation instructions to Multifamily Owners and Public Housing Agencies (PHAs).
For more information about the applicability of HOTMA to PHAs, click here.
HOTMA Webinars
The Office of Multifamily Housing will publish a pre-recorded webinar to this page introducing stakeholders to HOTMA. Additional webinars will be posted prior to the effective date of the final rule addressing topics including new requirements related to income/adjusted income, assets, mandatory deductions, and interim reexaminations.
Sign up for the Office of Housing’s mailing list below to stay up to date on webinars and additional resources.
To view the first pre-recorded webinar in the series, click here: Introduction to HOTMA
In-depth HOTMA Topics: (Coming Spring/Summer 2023!)
Background
On July 29, 2016, the Housing Opportunity through Modernization Act of 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 changes to income calculation and reviews.
On September 17, 2019, HUD issued a proposed rule to implement Sections 102, 103, and 104 of HOTMA. However, only Sections 102 and 104 apply to Multifamily Housing programs.
Updates to TRACS and HUD Forms
The Office of Multifamily Housing will be updating the Tenant Rental Assistance Certification System (TRACS) and HUD forms frequently used by owners/agents and HUD (e.g., Form HUD-50059, Form HUD-50059A, Form HUD-9887/9887A, Form HUD-9834, Model Leases, etc.) to conform with HOTMA’s requirements.
Check the TRACS webpage for additional details on systems updates.
Want to Stay Informed?
Please subscribe to the Office of Housing’s mailing list.
Have a Question?
Please send your questions to MFH_HOTMA@hud.gov