HOTMA Extension for Multifamily
Posted On: October 9, 2023
Understanding the HOTMA Extension: What Multifamily Housing Owners Need to Know
The housing landscape shifts constantly. Yet, few changes match the anticipation tied to HUD’s HOTMA. The recent HOTMA extension is a game-changer. But what does it mean?
What is the HOTMA Extension?
HOTMA is the Housing Opportunity through Modernization Act of 2016. At its core, HOTMA reforms housing assistance. The HOTMA extension pushes the final rule’s effective date. Originally set for January 1, 2024, there’s now an adjustment. Why? Let’s explore.
Why the Extension?
HOTMA brings major system changes. PHAs, MFH Owners, and families felt the weight. They need to adapt, understand, and integrate these reforms. The Housing Information Portal (HIP) and Tenant Rental Assistance Certification System (TRACS) are intricate. However, aligning them with HOTMA is not overnight work. Of course, it’s no surprise, then, that HUD decided on the HOTMA extension.
Timeline: The New Dates
March 31, 2024, is a date to mark. By then, multifamily housing (MFH) owners must act. They need to update tenant selection plans. They also have to adjust EIV policies, all to mirror HOTMA rules.
But the changes don’t stop there. When software aligns with HOTMA (specifically TRACS 203A), MFH owners have more tasks. For instance, tenants need a 60-day lease modification notice. As a result, this ensures transparency and preparation for both parties.
Moreover, all tenant data submissions must stick to HOTMA regulations. And MFH owners, it’s your duty to inform. Let families know their income will now follow the HOTMA final rule.
HUD’s Supportive Role
Until January 1, 2025, HUD is in a supportive role. They’re offering guidance through the HOTMA extension period. MFH owners, you won’t face penalties for HOTMA-related tenant file errors. Instead, expect observations. And prepare for corrective actions.
Mandatory Compliance: January 1, 2025
This is another key date. By now, HOTMA compliance is non-negotiable. HUD’s approach will shift. They’ll issue HOTMA-related findings. MFH owners, any 2024 observations need fixing. Failures to comply? They might cost you. The risk? Defaulting on business agreements with HUD.
Leases and HOTMA
The HOTMA extension affects leases. MFH owners, once you’re HOTMA compliant, a switch is necessary. Old leases shift to new, HUD-approved versions. This ensures alignment with the new rule. And families? They need HUD-approved leases in hand, 60 days before lease end.
The Future With HOTMA Extension
Change can feel daunting. The HOTMA extension, though, offers a buffer. It’s time for understanding, preparation, and alignment. For MFH owners, it means adapting. For families, it’s a fresh approach to housing assistance.
The HOTMA extension offers a roadmap. It’s not just about new dates. It’s a renewed commitment to effective housing. So, let’s embrace it. Understand it. Prepare for it. And above all, succeed with it.
Stay informed. Dive deeper. And let’s navigate the HOTMA extension together.
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