Understanding the HOTMA Extension Impact

The U.S. Department of Housing and Urban Development (HUD) recently announced an extension of the compliance date for the Housing Opportunity Through Modernization Act (HOTMA). This extension is crucial for Community Planning and Development (CPD) programs, and as a result, offers more time for implementation and transition.

Key Elements of the HOTMA Extension

1. Extended Compliance Date: The new deadline is January 1, 2025. This applies to programs like HOME, HOPWA, CDBG, ESG, and CoC. In addition, the extension also affects other CPD-funded initiatives.
2. Flexibility for Implementation: The extension allows jurisdictions, participants, and grantees to adapt HUD’s income and asset requirements more efficiently.
3. Support for Diverse Beneficiaries: CPD programs cater to a wide range of activities, such as housing development and assistance, public services, and infrastructure improvement.

Impact and Preparations for the HOTMA Extension

• Comprehensive Planning: CPD program administrators need to update guidelines, policies, and systems to align with new requirements.
• Training and Outreach: Essential to ensure staff, subrecipients, and housing partners are well-versed in these changes.
• Additional Guidance: HUD plans to provide further instructions to assist in the smooth transition of these regulations.

Detailed Instructions for CPD Programs

HUD has provided specific guidance for CPD programs:

• Conduct any public process necessary so that you are able to comply with the consolidated plan requirements.
• Update program guidelines, policies and procedures, templates, income and asset forms, and applications.
• Conduct internal and external system and software updates.
• Update income and asset regulator citations and requirements in written agreement templates.
• Require owners to notify tenants of any expected changes to leases or rents required by the HOTMA final rule.
• Train staff, sub-recipients, and contractors on the new income requirements and perform outreach to housing partners (e.g., project owners) to implement the HOTMA final rule.

“HUD also intends to publish, through a Federal Register notice, guidance on implementing HOTMA standards applicable to the HOPWA program.”

Federal Register / Vol. 88, No. 235 / Friday, December 8, 2023 / Notices

Get in Touch for More Information about HOTMA Extension

For further queries or detailed information, contact Vickie Bell at vbell@navigatehousing.com. Additionally, visit our comprehensive HOTMA page for more insights: Navigate Housing HOTMA Page.

Preparing for 2025

Lastly, the extension to January 1, 2025, offers a significant period for CPD grantees to prepare for the full implementation of the HOTMA final rule. This strategic move by HUD ensures a more seamless transition, benefiting the entire housing industry.