HUD’s Multifamily Office Delays Sections 102 and 104 HOTMA Implementation

By Ed Gramlich, Senior Advisor 

HUD’s Office of Multifamily Housing programs (Multifamily) has issued Notice H-2025-03 extending the date for compliance with updated resident income and asset documentation requirements called for by the “Housing Opportunity Through Modernization Act of 2016” (HOTMA) until January 1, 2026. A separate email memorandum from Multifamily states that owners of Multifamily properties may become fully compliant with HOTMA rules and regulations before January 1, 2026. It also reminds owners that they should continue to follow their existing Tenant Rental Assistance Selection Plans (TSPs) and Enterprise Income Verification (EIV) policies and procedures until they are fully compliant with HOTMA. 

In short, Section 102 of HOTMA reduces the frequency of income reviews and modifies the definition of income and assets. Section 104 sets maximum asset limits for eligibility and continued occupancy and implements deductions and exceptions for certain investments such as retirement savings. Section 102 applies to Multifamily’s Section Eight Project-Based Rental Assistance (PBRA), Section 202 Housing for Low-Income Elderly Persons, and Section 811 Housing for Low-Income Persons with Disabilities programs. Section 104 only applies to PBRA. 

Although Notice H-2025-03 only applies to Multifamily programs, readers are reminded that Sections 102 and 104 also apply to Public Housing and Housing Choice Vouchers (HCV) administered by HUD’s Office of Public and Indian Housing (PIH). On September 18, 2024, PIH distributed an email indicating that public housing agencies (PHAs) are not required to comply with Sections 102 and 104 by the previous compliance date of January 1, 2025, due to difficulties implementing technical changes to PIH systems. Some aspects of Sections 102 and 104 also apply to HOME Investment Partnerships (HOME), national Housing Trust Fund (HTF), and Housing Opportunities for Persons with AIDS (HOPWA) programs administered by HUD’s Office of Community Planning and Development (CPD).  

HUD’s Office of Multifamily programs have retained its HOTMA resource page despite HUD’s drastic reduction of useful information throughout their website. HUD’s PIH does not retain its HOTMA resource page. A distinct web platform, HUD Exchange, does have a HOTMA site, which has a box labeled “PHA Resources” that has Section 102 and104 material; however, it does not have information about other HOTMA provisions affecting PIH programs. For other HOTMA provisions impacting PHAs, users are directed to go to the crippled HUD.gov website which fails to actually provide any PIH-related HOTMA information. 

Read Notice H-2025-03 at https://tinyurl.com/dfayaw9a  

Read more about HOTMA provisions affecting PBRA on page 4-99 of NLIHC’s 2025 Advocates’ Guide. HOTMA-specific information begins on page 4-108.