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A combined notice regarding HOTMA was issued on September 29, 2023, for Public and Indian Housing programs as well as Multifamily programs. Multifamily housing program owners (MFH) and agents must update their tenant selection plans as well as their EIV policies and procedures. The deadline for those updates is March 31, 2024. We are still waiting for updated forms from HUD, but we highly recommend starting on your policy changes.
Below are links to the notice and a list of discretionary policies to implement under HOTMA.
from the notice
Compliance Date and Required Actions for MFH Owners (Office of Multifamily
Housing)
By March 31, 2024:
- By March 31, 2024, MFH Owners must update their Tenant Selection Plans and EIV
policies and procedures to reflect HOTMA rules and discretionary policies.
- MFH Owners must make the revised Tenant Selection Plan publicly available.
Note: MFH Owners must continue to follow their existing Tenant Selection Plans and
EIV policies and procedures until the MFH Owner’s software is compliant with TRACS
203A.
What MFH Owners must do once their software is HOTMA compliant:
Once a MFH Owner’s software is HOTMA compliant (i.e., TRACS 203A system
requirements have been fully implemented), the following things must happen:
- MFH Owners must provide tenants at least 60 days’ notice that their lease will be
modified at the end of the lease term after the expiration of the 60 days’ notice. Once
proper notice is given, MFH Owners must begin using the revised Model Leases at
the expiration of a family’s lease term.
- MFH Owners must implement their revised Tenant Selection Plans and EIV policies
and procedures.
- All tenant data submissions must comply with the HOTMA regulations. Prior to their
first reexaminations under HOTMA, MFH Owners must inform families that their
income determinations will be conducted in accordance with the HOTMA final rule.
As a best practice, HUD recommends that MFH Owners describe to families how
their income determinations will change with the implementation of the final rule.
- MFH Owners must use the revised Tenant Consent form (form HUD–9887/9887A)
and Fact Sheets (“How Your Rent is Determined”).
How HUD will monitor MFH Owner compliance prior to January 1, 2025:
Prior to January 1, 2025, MFH Owners will not be penalized for HOTMA-related
tenant file errors during Management and Occupancy Reviews (MORs). Instead,
the Contract Administrator will issue observations with corrective actions.
By January 1, 2025:
Full compliance with the HOTMA final rule is mandatory effective January 1, 2025.
How HUD will monitor owner compliance on or after January 1, 2025:
- Contractor Administrators will issue HOTMA-related findings during MORs.
- MFH Owners must correct all HOTMA-related observations that were issued by
Contract Administrators during 2024.
- MFH Owners who fail to implement HOTMA may be found in default of their
business agreements with HUD.
More information can be found on the HUD HOTMA website:
Housing Opportunity Through Modernization Act | HUD.gov / U.S. Department of Housing and Urban Development (HUD).
Kim Martin
Manager, Section 8 Compliance
303.297.7802
kmartin@chfainfo.com
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