BREAKING NEWS
HUD has extended the HOTMA compliance deadline for Multifamily Project-Based Rental Assistance (PBRA) owners. The new deadline is January 1, 2028, a one-year extension.
Owners must fully comply with HOTMA’s final rule and discretionary policies for certifications dated January 1, 2028, or later.
What Does the HOTMA Extension Mean for Owners?
Owners now have more time to prepare. However, they can also implement HOTMA before the new deadline.
HUD allows owners to use the rent override function in the Tenant Rental Assistance Certification System (TRACS) to support early compliance.
HUD also clarified how Contract Administrators will handle HOTMA-related tenant file errors during Management and Occupancy Reviews (MORs).
Before January 1, 2028, Contract Administrators will not penalize owners for these errors. Instead, they will issue observations and require corrective actions.
What Should Owners Do Now?
Owners should continue following their existing Tenant Selection Plans (TSPs) and Enterprise Income Verification (EIV) policies and procedures until they fully implement HOTMA.
Meanwhile, owners should review HUD’s updated guidance and continue preparing for the transition.
The bottom line: Owners should use this extra time to prepare. Review HUD’s guidance, coordinate with software providers, and plan for the January 1, 2028 HOTMA compliance deadline.
