The Department of Housing and Urban Development (HUD) has officially delayed compliance with new rules under the Housing Opportunity Through Modernization Act (HOTMA) until January 1, 2027 for affordable housing properties subsidized through HUD’s Multifamily Housing programs.

HOTMA is a major rule change for affordable housing providers that adjusts who is eligible for federally-subsidized housing, how much rent they pay, and how rent amounts are calculated by the housing provider. The agency had previously required compliance by January 1, 2026.

The new compliance date allows the agency to complete implementation tools for HOTMA compliance, including new housing forms and new rent software used by federally-assisted housing communities. LeadingAge will continue working with housing providers to prepare for HOTMA compliance.

In the meantime, housing providers should continue to follow their pre-HOTMA property policies, including their pre-HOTMA tenant selection plans, which do not restrict occupancy based on assets.

Read HUD’s memo here.

Keep up with LeadingAge’s HOTMA updates here.