In these #TuesdayTips, Corporate Trainer Vickie Bell responds to the most asked HOTMA related questions.
HOTMA Questions
Q: Should Owner Agents notify residents on waiting lists of the new changes? If so, where do we begin?
A: According to Vickie, there is currently no HUD requirement to do so. However, it is suggested to let recent applicants know when they receive an application. Perhaps it is time to purge waiting lists for your properties. As you go through this process inform them of HUD changes since the submission of the original application. You can always text, call, e-mail, or direct applicants to websites for further communication.
Q: If a company executes a lease before HOTMA software is implemented, do we explain that at the end of their one year leasing period residents will have to sign another lease?
A: Yes! Vickie strongly recommends that you explain another lease will be required. Additionally, inform residents they will receive a 60 day notice before the original lease ends with new terms and changes. A signature on this lease is required within 30 days of receiving the notice. Should the resident not want to sign a new lease, they will have 30 days to relocate.
Q: What is the new HOTMA rule on the HUD 9887 and 9887A forms?
A: After January 1, 2025, this form will only have to be signed once by everyone in the household over the age of 18. The 9887A should be a separate form for each household member.
*Please Note*
If families refuse to sign consent forms, HUD’s policy did not change. The family cannot participate in the Assisted Housing Program. Tenant Selection Plans must clearly state what the policy is if families revoke consent. HUD shares these four suggestions.
Notify the family housing assistance will cease and they will go to market rent.
Continue to provide assistance through the next IR or AR.
Terminate tenancy for a PRAC contract.
Terminate assistance for any other multifamily contracts.
Q: Can I not implement or enforce asset restrictions of $100,000 cap or the real property rule?
A: When HOTMA is implemented, all section 8 owners must enforce new asset restrictions on new move-in admissions. Discretionary Implementation is limited to in-place households only. It does not apply to new move-ins.
Q: Is it true that once HOTMA is implemented that we only have to collect one bank statement for checking accounts and not six?
A: Yes! This is meant to alleviate administrative burdens of asset verifications. However, this must be written somewhere in your tenant selection plans, house rules, etc.
Q: Once I give the 60 day lease notice do I have to wait another 60 days for the new lease to be signed?
A: No, once the 60 Day lease notice is given the resident has 30 days to accept the lease or give managements a 30-day notice of Intent to vacate. This can only take place at the end of the original 365 lease.
