Sign Up For Novogradac Industry Alert Emails

HUD Publishes Final Rule Implementing Portions of HOTMA

Tuesday, May 7, 2024 - 11:45AM

The U.S. Department of Housing and Urban Development (HUD) published a final rule in today’s Federal Register implementing changes made through the Housing Opportunity Through Modernization Act (HOTMA) of 2016. The final rule makes amendments to the housing choice voucher (HCV) and project-based voucher (PBV) programs and establishes a definition of public housing agency (PHA)-owned housing. The changes allow PBV assistance to be paired with manufactured housing, establish local project-specific waiting lists, provide PHAs additional flexibilities for rent and codify tenant protections for families in areas of inspections and property and contract dispositions. HUD also made regulatory changes intended to reduce the burden on PHAs. The rule is effective June 6, with a few exceptions noted in the final rule.

A column by Michael Novogradac in February’s Novogradac Journal of Tax Credits highlights the major changes to low-income housing tax credit (LIHTC) tenant qualification brought about by the implementation of HOTMA.

Learn more about Novogradac's expertise and many services