The U.S. Department of Housing and Urban Development (HUD) recently announced a new HOTMA final rule. The rule revises the Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) programs. This initiative is derived from the Housing Opportunity Through Modernization Act of 2016 (HOTMA). It will significantly enhance the accessibility and sustainability of public housing nationwide.

Please note HUD made corrections to the new HOTMA final rule on May 27, 2024. You can read them here.

Streamlining Access to Affordable Housing with the HOTMA Final Rule

The new rule introduces several critical enhancements aimed at increasing the efficiency of voucher programs. By simplifying the regulatory landscape, Public Housing Agencies (PHAs) can adapt to local housing needs while ensuring tenant protections.

Key Features of the HOTMA Final Rule:

1. Flexibility for PHAs:
   The rule grants PHAs the ability to utilize Small Area Fair Market Rents (SAFMRs) in non-metropolitan areas. In essence, this flexibility helps PHAs establish rent standards that more accurately mirror the local rental market conditions. This move potentially makes more neighborhoods accessible to voucher holders.
2. Enhancements to Project-Based Vouchers:
   The changes facilitate a more significant investment in affordable housing. It allows PHAs to link long-term federal PBV rental assistance directly to specific housing units or developments. As a result of providing more certainty to investors and developers, the shift could attract more private and public financing.
3. Efficiency and Tenant Protections:
   Streamlining processes is a cornerstone of the HOTMA final rule, which aims to expedite the provision of affordable housing. It improves tenant protections by setting up local project-specific waiting lists and codifying safeguards around inspections and property management.
4. Boosting Housing Supply:
   The rule addresses the critical affordable housing shortage by facilitating both the preservation and expansion of the housing supply. HUD expects to achieve this by equipping PHAs with the tools needed to enhance community housing availability.

Collaborative Efforts Under the HOTMA Final Rule

HUD Acting Secretary Adrianne Todman highlighted this new rule “represents collaboration between HUD and our stakeholders to build more affordable housing and make existing housing more affordable.” This collaborative strategy is essential. The HOTMA final rule aligns with both national and local objectives to rapidly expand affordable housing options.