News | HUD PIH Delays HOTMA Implementation

HUD's Office of Public and Indian Housing has updated implementation guidance for HUD PIH programs in a HOTMA FAQ. THE HUD PIH software system HIP is not ready for a January 1, 2025 implementation, resulting in revised HOTMA implementation guidance. It is important to note that this only applies to PIH programs, not HUD Multifamily (MFH) programs. The industry eagerly awaits the MFH guidance and the MFH software TRACS 203A to begin implementing HOTMA for Section 8 PBRA and other MFH programs. At the time of the writing of this article, MFH has been silent on the impending January 1,  2025, deadline to implement HOTMA for MFH properties. As TRACS 203A has not been released, it is beginning to appear to be a certainty that some sort of extension will be necessary.

Important summary of points from the FAQ

• The Earned Income Disregard (EID) was terminated on January 1, 2024 regardless of the upcoming HOTMA compliance date. The EID will not apply to any family not already participating in the disallowance as of December 31, 2023.
• PIH will be providing additional guidance on the implementation of some HOTMA Income and Assets provisions before the PHA transitions to the HUD PIH software system HIP.
• HUD has determined that some HOTMA policies are not dependent on systems and can be easily isolated from other HOTMA policy changes. The following HOTMA provisions may be implemented before HIP is ready and the rest of HOTMA is applied [references to PIH Notice 2023-27 have been provided]. 
  • Consent Form. PHAs were allowed to have the Authorization for the Release of Information (Forms HUD-9886-A) starting on January 1, 2024. [see Section J.1 (24 CFR 5.230) of Notice PIH 2023-27]
  • Safe Harbor Income Verifications. PHAs may use income determinations from other means-tested federal public assistance programs to verify annual income. PHAs that choose to adopt this policy before migrating to HIP must list the annual income from the other program’s determination in Section 7 of the HUD-50058 for the Head of Household using the “Other Non-Wage Sources” income code. [see Section J.4 (24 CFR 5.609(c)(3)) of Notice PIH 2023-27]
  • Verification Hierarchy. HUD updated the guidance for Level 4 documentation (Written, Third-Party Verification) to include an original or authentic document generated by a third-party source dated within 120 days of the date received by the PHA. This can be applied now. [see Section J.5 of Notice PIH 2023-27] 
  • Fixed income sources. PHAs may accept a statement dated within the appropriate benefit year for fixed income sources. • Verification of Social Security Number (SSN). [see Section J.5 of Notice PIH 2023-27]
  • SSN Verication. HUD has adjusted what the Department considers acceptable documentation of a person's SSN to include self-certification with other documentation in some cases. [see Section J.6 of Notice PIH 2023-27]
  • Zero Income Reviews. PHAs are not required to conduct periodic zero income reviews. HUD also clarified that PHAs may accept selfcertification as the highest form of verification for zero income. [see Section J.8 of Notice PIH 2023-27]

Since compliance with certain income and assets requirements of HOTMA requires access to the HOTMA-compliant HUD-50058 in HIP, PHAs cannot determine the date they will come into compliance with all HOTMA provisions and be able to transmit HOTMA-compliant transactions to HUD. PHAs have been instructed in the past that they may update their Administrative Plan or ACOP documents before determining the date at which they will transition to all HOTMA policies. In order to update their policy documents for HOTMA in this circumstance, PHAs may create an appendix to an Administrative Plan or ACOP that contains the HOTMA policies that will be incorporated at a later date. The PHA should note explicitly that they will inform all program participants of the date at which the HOTMA policies will become effective. Program participants must be informed of the date the PHA will transition to HOTMA policies before the PHA starts to conduct reexaminations using those HOTMA policies. The following are two options:

• An appendix could contain just those policies that are relevant to Sections 102 or 104 of HOTMA.
• Alternatively, the PHA could put a complete revision of the Administrative Plan or ACOP into such an appendix, indicating that when they transition to the HOTMA policies, the Administrative Plan or ACOP in the appendix will replace the current Administrative Plan or ACOP.

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