HUD Publishes First Guidance on New HOTMA HCV-PBV Rule

By: Tushar Gurjal, Senior Policy Manager

On June 5, HUD published a notice titled “HOTMA HCV and PBV Final Rule – Guidance on Effective and Compliance Dates and PHA Implementation Preparation” (Notice PIH 2024-19). This notice serves as the initial guidance for PHAs that are implementing the new Housing Opportunity Through Modernization Rule of 2016 (HOTMA) Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) rule. The notice provides additional supplementary information on the effective and compliance dates that were in the final rule.

The HOTMA HCV and PBV final rule is effective on June 6, 2024, except for the provisions listed below.

• Provisions delayed indefinitely.
  • PHA-owned certification and PHA-owned agreement certification – The final rule allows PHAs to execute HUD certifications instead of Housing Assistance Payment (HAP) contracts of an agreement to enter into a HAP (AHAP) contract for PBV units. This provision is delayed until HUD can publish the required certification forms.
  • PBV HAP contract rider – PHAs may execute HAP contracts before a rehabilitation is complete in certain scenarios subject to a rider. This provision is delayed until the  rider can be published.
• Provisions that have compliance dates of Sept. 4, 2024.
  • Information when family is selected – PHAs must update briefing procedures and materials to meet new requirements.
  • Payment standards – the final rule changes certain requirements for payment standards. The Department will publish consolidated payment standard guidance prior to the compliance date.
  • Homeownership program – the final rule makes changes related to the homeownership program that require updates to policies and procedures.
  • PBV Analysis of Impact – in instances where the housing agency is project-basing more than 50% of their authorized vouchers, the PHA must conduct an analysis of impact before selecting a project to which to attach PBVs.
  • Overcrowded, under-occupied, and accessible PBV units – the final rule updates the procedures that must be followed when a family is occupying an incorrectly sized unit or is occupying a unit with accessibility features not required by the family when another family needs a unit with those features.
  • Section Eight Management Assessment Program (SEMAP) – the final rule makes certain changes to HUD verification methods for SEMAP indicators. Additional guidance on how SEMAP will be conducted during the coming shutdown of IMS/PIC and before the start of HIP will be provided.
• Provisions that have compliance dates of Dec. 3, 2024.
  • Payment Standards – changes to how HAP is calculated becomes effective in Dec.
• Provisions that have compliance dates of June 6, 2025.
  • Independent entities and PHA-owned units – changes to the duties of independent entities go into effect on this date.
  • Removal of families from PBV waiting list – housing agencies must update their procedures for when families reject PBV housing.
  • Occupancy of PBV units under the increase program cap and project cap excepted units – this explains occupancy requirements for units exempted and excepted from the PBV portfolio caps. It also discusses permissible PHA actions for units that no longer qualify as excepted or exempted from the portfolio caps.
  • Administrative Plan – housing agencies must update their administrative plan by June 6 in a variety of ways, if their existing policies do not comply with new program requirements. The delayed compliance for revisions to existing administrative plans does “not authorize delayed compliance with any other provisions of the HOTMA [HCV-PBV] final rule.”

The full notice can be found here.