Under the Housing Opportunity Through Modernization Act (HOTMA), HUD introduced Section 8 Asset Restrictions making applicants and residents ineligible for assistance if:
This rule applies to all Section 8 programs including PBRA RAD and 202/8.
In HUD's revised HSG Notice 2023-10, HUD has altered previous guidance.
Once an owner/agent implements HOTMA, when reviewing applicant eligibility, the owner/agent must deny admission and/or assistance to applicants who own real property suitable for occupancy and/or applicants whose net cash value of included assets exceed $100,000 (as adjusted).
Note: Special Rules apply for PBRA RAD Conversions.
For existing residents, owners have discretion with respect to the application of the Asset Restrictions at Annual Recertification or Interim Recertification. Owner/agents may adopt a written policy of total non-enforcement, enforcement, or limited enforcement, as described in the Notice.
Policies explaining application of Section 8 Asset Restrictions for applicants and existing residents must be described in the TSP no later than 3/31/2024. However, new TSPs are not to be implemented until site software is updated.
Owner/agents who have already advised residents that they may no longer be eligible for housing assistance based on HUD's previous guidance, who have determined that they will NOT enforce the Section 8 Asset Restrictions for existing residents, should contact those residents and advise them of the change to HUD's guidance. We have created a sample Notice, available on our HOTMA Resources Page, to assist you with creation of your own Notice.
When discussing HOTMA changes, keep in mind that while the changes are effective on 1/1/2024, HUD has extended the implementation deadline so that owner/agents have until site software is updated to comply with HOTMA changes. Site software updates must be implemented no later than 1/1/2025.
HOTMA Today 2024 will include a complete and comprehensive review of changes to HUD’s Multifamily Housing occupancy requirements that must be implemented in 2024 (many changes will be implemented when site software is updated).
And then there was one...seats are still available for the HOTMA Today 2024 class scheduled for March 26, 27 & 28.
We will be talking about HOTMA implementation strategies in the HOTMA Today 2024 Online Training Workshops offered in February and March.