National Advocacy Win: HUD Delays HOTMA for Multifamily Housing, Adjusts Asset Limit Enforcement
Following advocacy by LeadingAge National, the U.S. Department of Housing and Urban Development (HUD) has delayed implementation of the Housing Opportunity Through Modernization Act (HOTMA) for multifamily housing (MFH) providers. HUD also agreed with LeadingAge National that owners should have discretion in enforcing new asset limits for current residents, helping to prevent evictions among older adults served by HUD’s rental assistance programs.
HUD originally required MFH providers to comply with HOTMA beginning Jan. 1, 2024. However, in a letter to HUD dated Sept. 12th, LeadingAge National noted that HUD had not yet given providers the tools, systems, or guidance needed to set up compliance processes and urged HUD to delay the Jan. 1st compliance date.
HUD’s new implementation notice, published Sept. 29th, gives owners until March 31, 2024 to implement certain new policies, and until Jan. 1, 2025, to reach full compliance with HOTMA. In addition, relating to asset limits for current residents, the new guidance states: “MFH Owners are given discretion at reexamination in enforcing the asset limitation on eligibility for assistance...HUD will issue additional guidance on the use of this discretionary authority.” The new asset limits apply to project-based Section 8 properties and Section 202/8s, but not to Section 202 Project Rental Assistance Contracts (PRACs).
LeadingAge National applauds HUD for making the decision to delay HOTMA implementation and allow for discretion in enforcing asset limits for currently served residents, and will continue to work with providers and HUD to ensure a smooth transition to HOTMA rules. Access all of LeadingAge National’s HOTMA updates, trainings, tools, and resources for affordable housing providers here.
Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866