HUD Releases New HOTMA 102 and 104 Compliance Guidance
By: Richa Goel, Policy & Legislative Affairs Data Analyst
On December 17th, HUD released PIH Notice 2024-38 titled “Housing Opportunity Through Modernization Act (HOTMA) Sections 102 and 104: Updated Guidance to Public Housing Agencies (PHAs) on Compliance”.
This notice details specific income and asset provisions from Sections 102 and 104 of HOTMA that PHAs must comply with by July 1, 2025. HUD previously established a deadline of January 1, 2025 for full HOTMA final rule compliance. However, PHA compliance will not be enforced by January 1, 2025 for provisions not identified in this notice. HUD will issue further guidance on compliance deadlines for any outstanding provisions once a HIP completion and PHA migration timeline has been established.
HUD will enforce compliance for the following provisions:
HUD Enforcement Prior to July 1, 2025
- Earned Income Disregard (EID) – January 1, 2024
- PHAs are expected to have ceased enrollment into EID as of December 31, 2023.
- Use of Form HUD-9886-A – No later than February 1, 2025
- Form HUD-9886-A will be the only approved version of the authorization for release of information form following the expiration of HUD-9886 on January 31, 2025
HUD Enforcement No Later than July 1, 2025
All transactions with an effective date on or after July 1, 2025 must comply with the following provisions. Since the reexamination process typically starts 90-120 days before the effective date, PHAs may need to comply with these provisions as soon as March 3, 2025
- Income Exclusions
- PHAs must utilize the list of income exclusions noted in 24 CFR 5.609(b) for all income examinations with an effective date on or after July 1, 2025.
- Definitions
- PHAs must use definitions identified in this notice for all transactions with an effective date on or after July 1, 2025
- De Minimis Errors
- Refer to PIH Notice 2023-27 for guidance on de minimis errors.
The full notice can be read here.