Following strong advocacy by LeadingAge, HUD’s updated guidance allows owners to adopt a total non-enforcement policy of the new HOTMA asset limitations for currently served residents.
We applaud HUD for correcting their interpretation of the new asset restrictions; the updated policy will help improve housing stability for HUD-assisted older adults.
HOTMA Implementation Guidance: Revised Notice H 2023-10
Under HOTMA, HUD’s project-based Section 8 program eligibility is subject to new asset limitations related to net household assets and real property owned by household. This means that households with over a certain amount of assets or who own real property that is suitable for occupancy are ineligible to receive rental assistance through HUD’s project-based Section 8 programs.
Despite earlier indications that HUD would not provide asset limit-exemptions for currently served residents, HUD’s new guidance aligns with LeadingAge advocacy to allow discretionary enforcement at resident recertification (annual and interim). Under the new guidance, owners can adopt non-enforcement policies that exempt all currently residents (vs. new applicants) from the asset limits. The non-enforcement policies must be included in the property’s Tenant Selection Plan (TSP).
If adopted and maintained by the property, these non-enforcement policies apply to residents who are receiving HUD rental assistance at the time of HOTMA implementation, as well as moving forward to already served residents whose assets change while receiving HUD assistance (for example through an inheritance). As expected, the guidance does not allow non-enforcement at admission for any new applicants.
LeadingAge welcomes both the updates to asset limitation discretionary enforcement and the technical corrections. Further LeadingAge analysis is forthcoming.
HOTMA Implementation: Next Steps for Mission-Driven Housing Providers
To avoid housing instability for HUD-assisted older adults, LeadingAge urges our affordable housing members to adopt asset limit non-enforcement policies for currently served residents. This approach will help older adults with low incomes continue to receive housing assistance and will reduce asset verification burden on housing providers.
In order to decline enforcing the new asset limits at recertification, Multifamily Housing providers need to include a written non-enforcement policy in the TSP. HUD is requesting that providers update HOTMA-compliant TSPs by March 31, 2024.
Stay tuned for additional implementation support from LeadingAge, including a checklist of recommended discretionary components under HOTMA.
HOTMA Learning Opportunities
February 12, 12:30-1:30 p.m. ET: LeadingAge Housing Network Call LeadingAge housing experts will discuss HUD’s revised HOTMA implementation guidance during our call with the Housing Network—a group of LeadingAge affordable senior housing providers who meet on Mondays to hear updates and discuss operations. To join, contact Linda (firstname.lastname@example.org) or Juliana (email@example.com).
February 28, 1:30-3:00 p.m. ET: LeadingAge HOTMA Implementation Q&A 3.0 LeadingAge is hosting our third members-only Q&A session with Jenny DeSilva, president of DeSilva Housing Group. Participation is capped at 100 people. Contact Juliana (firstname.lastname@example.org) with questions.