The Final Rule Implementing HOTMA Sections 102, 103, and 104 was released by HUD on 9/29/2023. This new regulation is effective January 1, 2024, with full implementation and compliance with HOTMA expected on January 1, 2025. HUD communicated they were planning to release subsequent guidance on the implementation of HOTMA no later than December 31, 2023, however supplemental guidance has not yet been released by HUD. Until such time as supplemental guidance is issued by HUD, owners and Agents must continue to process tenant certifications and vouchers under current HUD regulations following the HUD Handbook 4350.3 Rev. 1, Change 4 and the TRACS 202D MAT User Guide.

Some Contract Administrators, but not all, have communicated they are requiring Owners and Agents to use the updated HUD Passbook rate of 0.4% for imputing income from assets greater than $5,000 on Tenant Certifications effective 1/1/2024 and after. We suggest Owners and Agents reach out to Contract Administrators in their state to determine if they are required to use the new HUD Passbook rate of 0.4% on tenant certifications completed 1/1/2024 and after. Owners and Agents will also need to communicate with their compliance software providers to determine if and when the new HUD passbook rate can be updated in their software.

There are many moving parts and questions which must be clarified and answered by HUD prior to full implementation of Sections 102, 103, and 104 of HOTMA. PMCS is dedicated to working diligently to provide continued quality products and services during this year of HUD regulatory change.

Please note that we are awaiting issuance of supplemental guidance from HUD on the implementation of HOTMA prior to updating our forms, policies, and procedures. HUD previously stated that project Tenant Selection Plans (TSP) and EIV policies and Procedures must be updated no later than March 31, 2024, however these updated policies cannot be implemented until such time as the property’s HUD Compliance Software is TRACS 203A and HOTMA compliant.

If we have prepared your policies and procedures, including the Tenant Selection Plan and EIV Policies and Procedures, we will be reaching out to you soon with guidance for this process.