On December 17, 2024, HUD released a notice called “Housing Opportunity Through Modernization Act (HOTMA) Sections 102 and 104: Updated Guidance to Public Housing Agencies (PHAs) on Compliance.”
This notice, PIH Notice 2024-38, details the income and asset provisions with which PHAs must comply by July 1, 2025. The previous deadline for full HOTMA final rule compliance was January 1, 2025.
HUD will issue further guidance on compliance deadlines for any outstanding HOTMA provisions once a HIP completion and PHA migration timeline have been set. As of the date of his notice, only the provisions discussed in the notice will be enforced as of January 2025.
Timeline for HUD enforcement of the following provisions:
HUD Enforcement Before July 1, 2025
- Ending Earned Income Disregard (EID) was due on January 1, 2024. PHAs must ensure they ceased enrollment into EID as of December 31, 2023.
- Use of Form HUD-9886-A – No later than February 1, 2025. The updated Form HUD-9886-A will be the only approved version of the authorization for release of information form following the expiration of HUD-9886 on January 31, 2025
HUD Enforcement No Later than July 1, 2025
All transactions with an effective date on or after July 1, 2025, must comply with the following provisions. Since the reexamination process typically starts 90-120 days before the effective date, PHAs need to comply with these provisions no later than March 3, 2025
- Income Exclusions: PHAs must utilize the list of 28 income exclusions noted in 24 CFR 5.609(b) for all income examinations effective on or after July 1, 2025.
- Definitions: As part of the updates in 24 CFR 5.100, 5.403,5.603 – PHAs must use seven updated definitions identified in this notice for all transactions effective on or after July 1, 2025. These updated definitions affect how household members are defined, how certain workers are defined and treated, and a revised definition of household medical expenses.
- De Minimis Errors: See PIH Notice 2023-27 for guidance on de minimis errors, which includes guidance on when PHAs must take correction action to credit or repay a family.
