HOTMA Delayed to Allow PHA’s Time to Update Software
On July 18, 2023, Richard J. Monocchio, Principal Deputy Assistant Secretary of the Office of Public and Indian Housing, announced a delay in the implementation of specific HOTMA (Housing Opportunities Through Modernization Act of 2016) regulations pertaining to income and asset regulations. It has been long anticipated that PHAs would have to fully follow HOTMA come Jan. 1, 2024. Monocchio writes:
“PIH understands that there are numerous changes associated with the regulation that require systems and policy changes that will not be able to take effect for all PHAs by January 1, 2024. For instance, PIH must update the Housing Information Portal (HIP) to reflect the final form HUD-50058, which recently completed the Paperwork Reduction Act (PRA) public process. In addition, PIH has also heard from software vendors, PHAs, and other interested parties that the implementation process will require associated PHA software changes, and this may require additional time.”
In recognition of these challenges, PIH “will establish by notice a compliance date for sections 102 and 104 of HOTMA that will permit PHAs time to work with their software vendors to enable them to submit transactions to HIP.”
Monocchio says PHAs must bring their programs into compliance with the HOTMA final rule as quickly as possible, but no later than January 1, 2025. “Compliance,” he says, means administering all aspects of the affected programs in accordance with the HOTMA final rule.
“PIH will establish by notice a compliance date for sections 102 and 104 of HOTMA that will permit PHAs time to work with their software vendors to enable them to submit transactions to HIP. Specifically, PHAs must bring their programs into compliance with the HOTMA final rule as quickly as possible, but no later than January 1, 2025.”
Compliance Advice on HOTMA Implementation Forthcoming
Even though the flexibility is granted while software companies work out kinks and new forms are finalized, PHAs are still required to complete all policy revisions, including any local notice or approval processes, by January 1, 2024
Further compliance details for the public housing, moderate rehabilitation, and HCV programs will be provided in the forthcoming PIH notice, Monocchio says. in the interim, PHAs are reminded that:
- Consistent with the requirements of the HOTMA final rule, PHAs must complete the necessary public processes to update Public Housing Admissions and Continued Occupancy Policies (ACOP) and HCV Administrative Plans to reflect HOTMA rules and discretionary decisions and submit them to PIH by the effective date of January 1, 2024. PIH will provide a list of policies that PHAs need to establish on the HOTMA Resources webpage.
- Once a PHA is ready to transition to HOTMA rules, the PHA must do so in all affected areas of operations. This includes New Admissions, Interim Reexaminations, and Annual Reexaminations. PHAs need to plan accordingly, including having Annual Reexamination and Interim Reexamination reporting forms ready before the compliance date. For example, a PHA with a May 1, 2024 compliance date will typically need to send Annual Reexamination packets reflecting the HOTMA changes in January 2024. The PHA must inform the family as to whether their income determination is being conducted under the pre-HOTMA regulations or in accordance with the HOTMA final rule.
- To further facilitate the HOTMA final rule implementation process, once HIP is available to PHAs, PIH will monitor HIP submissions and reach out to PHAs that are not yet submitting to HIP to check on their status.
What about the Multifamily HUD Program Implementation of HOTMA?
How does this notice affect HUD Multifamily Housing Programs and Low-Income Housing Tax Credits? In short, this notice does not affect any other funding programs than those governed by HUD PIH – Public and Indian Housing. It will be determined if all other programs — excluding Public Housing, voucher programs, and Mod Rehab — require delays in HOTMA implementation.
Create a Plan to Keep ACOPs Updated
How a PHA handles over-Income families and posting the new maximum income limits and alternative rents need to be added to their ACOP, as Monocchio says above. This vital change to Public Housing policy affects many parts of PHA operations, including how to handle Rent Choice, Recertifications, Interim Recertifications, and much more. US Housing Consultants is now offering a web-based ACOP and Administrative Plan option, which includes updates to PHAs as HOMTA is implemented. We can keep you up to date on implementation and new HOTMA requirements and give you the tools to enjoy the transition.
If you should have any questions about what needs to be included in the ACOP update, please contact us
