On Dec. 6, 2024, HUD sent an email announcing that the agency has created a webpage to answer frequently asked questions about HOTMA.
As background, HOTMA was signed into law on July 29, 2016. 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.
The FAQ page includes information on the phase-in hardship relief provision as detailed in the HOTMA final rule, HOTMA-compliant Tenant Selections Plans at Management and Occupancy Reviews, and use of the rent override function in TRACS 202D up until the newly established July 1, 2025, compliance date.
These are the particular questions answered in the FAQ:
- Can Multifamily Housing (MFH) Owners implement HOTMA provisions prior to the release of the HOTMA-compliant version of TRACS (TRACS 203A)?
- During a Management and Occupancy Review (MOR), will the prior Tenant Selection Plan (TSP) or the newly updated Tenant Selection Plan be used for the review, and will any HOTMA related findings or observations be issued?
- What if my TSP has been updated for HOTMA but during an MOR, the Contract Administrator issues a finding for minor mistakes?
- When will the newly revised model leases be available to MFH Owners?
- Will MFH Owners be able to use the new forms and model leases if they are made available before the July 1, 2025, compliance date?
- What is the expected release date for TRACS 203A?
- How do MFH Owners implement the inflationary adjustments if they have or have not implemented HOTMA at their property? What about the Passbook Savings Rate?
- When may I start implementing the safe harbor provision of HOTMA?
- What do I do if I become aware of the need to correct a TRACS 202D certification after I’ve adopted TRACS 203A?
- When can I start implementing the new HOTMA compliant tenant consent form (HUD 9887/9887A)?
- Do I have discretion in implementing the phased-in medical hardship date set at explicitly January 1, 2024, in the HOTMA final rule?
For further information on HOTMA and how US Housing Consultants can help you navigate its ins and outs, please visit our website to see all our upcoming HOTMA Training Events.
