HUD Considers Postponing HOTMA Compliance, Updates Reexamination Guidance

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The Department of Housing and Urban Development is contemplating a delay in HOTMA compliance for Multifamily Housing providers. In the meantime, the agency issued new guidance for conducting resident reexaminations under HOTMA once implemented.

During LeadingAge's Leadership Summit in mid-April, leadership from the Department of Housing and Urban Development (HUD) shared plans for the Multifamily Housing portfolio, including next steps on implementing the Housing Opportunity Through Modernization Act (HOTMA).

HOTMA is a major rule change for affordable housing communities that impacts who is eligible for housing assistance, how much rent they pay, and how housing providers comply with HUD rules. HUD has been rolling out HOTMA-related technical assistance and requirements but has been delayed in full implementation.

The current compliance date for housing providers participating in HUD's Multifamily Housing programs to comply with HOTMA is still January 1, 2027, but the agency now says there is a good chance they will again delay compliance.

In the meantime, HUD's Offices of Multifamily Housing and Public and Indian Housing issued a joint Notice with revised standards for owners to use when conducting an interim reexamination of income and household composition, as required under Section 102 of HOTMA. The previous version of guidance, published on February 2, 2024, is now superseded; owners must follow the new guidance once they move forward with HOTMA implementation.

Currently, most owners are still following pre-HOTMA rules in their housing communities. For questions, please contact your local HUD field office or email [email protected].