On December 8, HUD issued a final rule [90 FR 56683] intended to make clarifying amendments and correct technical errors within the Housing Opportunity Through Modernization Act of 2016 (HOTMA) final rule previously published on May 7, 2024. This rule is effective January 7, 2026.
On December 17, HUD issued a notice extending the compliance date from January 1, 2026 to January 1, 2027, for all owners participating in HUD Multifamily project-based rental assistance programs.
- Section 102 addresses income reviews, including the frequency of income reviews, and revises the definitions of income and assets.
- Section 104 sets asset limits for both Section 8 Project-Based Rental Assistance and Section 202 programs.
Owners may become fully compliant with HOTMA rules and regulations prior to January 1, 2027, by using the rent override function in the Tenant Rental Assistance Certification System (TRACS). Owners should continue to follow their existing Tenant Selection Plans (TSP) and Enterprise Income Verification (EIV) policies and procedures until they are fully compliant with HOTMA. For questions regarding this notice please contact [email protected].
Beginning January 1, 2026, the published 2026 Annual Inflationary Adjustments and Passbook Rate will become effective. HUD programs subject to HOTMA rules and regulations must utilize the HUD-published values to determine income, net family assets, and adjusted income for income examinations, in accordance with the HOTMA final rule and Implementation Guidance: Sections 102 and 104.
