On February 14, as anticipated, the Department of Housing and Urban Development (HUD) published the final rule to implement Sections 102, 103, and 104 of the 2016 Housing Opportunity Through Modernization Act (HOTMA). Sections 102 and 104 apply to HUD multifamily owners. Section 102 addresses income reviews, making modifications to such things as the frequency of income reviews and the definitions of income and assets. Section 104 establishes an asset limitation for families assisted under the Project-Based Rental Assistance program while also implementing deductions and exceptions for certain investments, including retirement savings and modest increases in income.

This final rule is effective January 1, 2024. Owners may not implement these provisions prior to their effective dates. HUD has updated its HOTMA Multifamily webpage with the final rule. This spring and summer, HUD will issue comprehensive implementation guidance and offer webinars and other materials. In the meanwhile, HUD has posted a new “HOTMA Training Series: Introduction to HOTMA for [Multifamily Housing] Programs” video.