Article | One "HOT" Topic - HOTMA | Part 1 | Introduction

The Housing Opportunities Through Modernization Act (HOTMA) of 2016 required the largest revision of HUD regulations in many decades. It took a while, and the regulation is over 300 pages. In this series, we will explore several of the complex provisions embedded in the HOTMA Final Rule. In this post, we will focus on when HOTMA takes effect and how HOTMA affects HOME, NHTF, and LIHTC programs.  

See our blog post announcing the new rule and a link to the entire final rule HERE,

FAQ # 1 | When will HOTMA be effective? 

Answer | Some portions relating to over-income households in public housing will be effective 30 days after the official release of the Rule in the Federal Register. The remaining provisions (including those that apply to HOME, NHTF, and the LIHTC), will be effective starting January 1st, 2024. As this is a very extensive adjustment to many HUD provisions, significant time to implement will be necessary.

FAQ # 2 | Which parts of HOTMA apply to HOME, the NHTF, and the LIHTC?

Answer | Some individual HOTMA provisions will apply, some may apply under certain circumstances, and some will not apply at all to different programs. The below chart establishes HOTMA applicability for the three programs that the question asked about. We will explore many of these provisions in future articles in this series. 

Note | HOME and NHTF applicability as listed below are established in the Final Rule. The LIHTC applicability is based on our professional opinion and long-standing regulatory applicability of HUD rules to the LIHTC. 

Next Up: What are the new restrictions on assets?