HOTMA Compliance Deadline Extended: What Multifamily Owners Need to Know
Posted On: September 20, 2024
The HOTMA compliance deadline extension for multifamily housing is good news for owners! HUD has extended the compliance date for implementing Sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). Initially scheduled for January 1, 2025, the new deadline is now July 1, 2025. This gives property owners six months to align their operations with the updated income and asset documentation requirements.
HOTMA, enacted in 2016, aims to streamline and modernize federal housing programs. It impacts various programs, including income certification and recertification processes for multifamily housing owners. Specifically, Sections 102 and 104 of HOTMA require owners to update their documentation and reporting protocols to comply with HUD’s final rule
What’s Changing?
Under the revised rule, multifamily owners must adopt new income and asset verification processes. This ensures that income certifications are accurate and transparent, helping HUD assess tenant eligibility and rent determinations more effectively.
The latest HOTMA compliance deadline extension provides breathing room, but it is vital to use this extra time to make the necessary changes.
Revised Compliance Date: July 1, 2025
In Notice H 2024-09, HUD officially moved the compliance deadline from January 1, 2025, to July 1, 2025. The HOTMA compliance deadline extension for multifamily housing allows owners to ensure their systems and staff are fully equipped to meet the updated requirements. Failure to comply by the revised date may lead to penalties, so timely action is critical.
What Should Multifamily Owners Do Now?
With this new deadline in place, now is the time to review your current income certification procedures. Ask yourself the following questions:
Are my staff trained on the new income documentation standards?
Have I updated my software to meet the new requirements?
Am I clear on which programs are affected by HOTMA?
Taking these steps now ensures you’re prepared well ahead of the July 1, 2025 deadline.
Further Information For any questions related to HOTMA compliance, HUD encourages multifamily owners to reach out via email at MFH_HOTMA@hud.gov.
The compliance extension is an excellent opportunity to finalize any lingering updates to your income and asset documentation processes. Stay ahead of the curve by using this extra time wisely to fully align with HOTMA requirements.
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