Key Updates and Guidance for Owner Agents

With new compliance extensions and income safe harbor provisions, owner agents must stay informed and proactive.

HUD has adjusted HOTMA compliance timelines for various stakeholders in 2025. The new dates accommodate system updates and provide additional guidance:

1. CPD Programs:
   • CPD grantees must comply with the HOTMA final rule by January 1, 2026. However, early compliance is allowed starting January 1, 2024.
   • Programs affected include HOME, Housing Trust Fund (HTF), HOPWA, and others tied to HUD’s 24 CFR part 5 income regulations.
2. PHAs and Multifamily Owners:
   • Public Housing Agencies (PHAs) must implement Sections 102 and 104 no later than January 1, 2025.
   • Multifamily housing owners must comply by July 1, 2025.

Income Safe Harbor Provisions

HUD also introduced income safe harbor options. The move aligns calculations across federal programs, easing administrative burdens and supporting early adoption:

• CPD Programs:
  Programs like ESG, HOPWA, and CoC may adopt the income determination safe harbor under 24 CFR 5.609(c)(3). This aligns income verification methods with federal assistance programs.
• HOME and HTF Provisions:
  Participating jurisdictions and HTF grantees may use safe harbor provisions outlined in 24 CFR 92.203(a) and 93.151(a). These allow acceptance of income determinations from federal or state project-based rental subsidies.

Preparing for HOTMA Compliance 2025

Owner/agents must take proactive steps to align with HUD’s revised timelines and provisions:

1. Assess Readiness:
   • Review your organization’s policies against HOTMA final rule requirements.
   • Evaluate whether early compliance or safe harbor adoption benefits your operations.
2. Revise Policies and Procedures:
   • If using safe harbor provisions, update your income determination policies to reflect these options.
   • Document and implement these changes into your workflows and software systems.
3. Leverage HUD Resources:
   • Stay updated with HUD notices, webinars, and FAQs for further clarification.
   • Seek guidance from HUD representatives if you encounter challenges.
4. Educate Staff and Residents:
   • Train your team to ensure accurate application of updated income rules.
   • Communicate these changes to residents, especially those affected by safe harbor adjustments.

Impact on Affordable Housing

The updated compliance timelines provide essential flexibility for stakeholders, allowing time to adapt while maintaining service quality. Owner agents can use this transition period to refine processes and ensure compliance. Early adoption of safe harbor provisions may also streamline operations and reduce administrative burdens.

As HOTMA compliance in 2025 approaches, proactive planning and clear communication will be crucial. By leveraging these updates, owner agents can effectively navigate the evolving regulatory landscape and continue delivering quality housing to residents.

For further details, access HUD’s HOTMA Implementation FAQs.