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President’s Forum: PHADA, Other Groups Meet With HUD Secretary Todman

HOTMA, NSPIRE, TARs on the Agenda

PHADA President Mark Gillett.

I was pleased along with other industry group leaders to meet with Acting HUD Secretary Adrianne Todman on Friday, May 3. The meeting stemmed from the joint letter PHADA, NAHRO, CLPHA, and the MTW Collaborative sent to the Secretary last month. In addition to PHADA’s Executive Director Tim Kaiser and I, participants included: CLPHA President Jeff Patterson and Executive Director Sunia Zaterman; NAHRO President George Guy and CEO Mark Thiele; and the MTW Collaborative’s President, Tracey Scott, and Nicole Barrett, Program Director.

The group’s April 9 correspondence stated that: “substantial and numerous changes continue to undermine the effectiveness and efficiency of housing authority operations… and can negatively impact residents.” More specifically, we noted the present NSPIRE-V implementation timeline may negatively affect landlord participation in the voucher program. We further expressed concerns that HOTMA and the intertwined HIP implementation have significantly disrupted agency operations. We also discussed our worries about the financial solvency of many HAs resulting from increased Tenant Accounts Receivable (TARs) and the impact of HUD’s related rule on the 30-day notice for nonpayment of rent.

Having served as an industry leader for decades, Secretary Todman is quite familiar with the issues. We appreciated the candid discussion and her willingness to consider our concerns. Below is a short synopsis of each topic.



Some public housing and multifamily inspections using the new NSPIRE protocol have commenced. However, little is known yet from the results and questions remain about inspector training, interpretation of standards, tenant-caused damages, and the appeals process. We suggested the Department take the time to get it right for voucher program implementation by deferring the final implementation date of October 1, 2024.

PHADA has repeatedly pointed out the alarming statistics that HUD’s own data shows more than 5,000 owners annually left the voucher program in a recent decade. The last thing HUD and we want is to lose even more owners, but many fear a premature implementation of NPIRE V could lead to that outcome. We recommended that HUD instead work with HAs, owners, and others to resolve NSPIRE issues in the public and multifamily housing programs first. We appreciate that HUD is investigating whether a deferral might be possible under existing statutes and regulations.



The groups are concerned that HUD continues to maintain next January 1 as the HOTMA compliance date. In our opinion, the Department simply is not ready, especially as it relates to Information Technology (IT) challenges.

During the meeting, we all noted that the implementation of the Housing Information Portal (HIP) and the constant “pump-fake” rollout of HOTMA has been disruptive to HAs and their business operations. We conveyed that HAs should have sufficient time to acclimate to the HIP system, conduct resident messaging on new HOTMA income rules, and train their staff.

HUD’s representatives listened to our concerns and may defer the compliance date, but also noted that some housing providers want to implement HOTMA income and asset provisions as soon as possible. They asked for some additional feedback from the groups regarding optimal timing.

PHADA’s perspective is that those who wish to move forward with HOTMA sooner can do so once the necessary systems and forms are in place, but HUD should first do ample testing to ensure HIP works correctly when it becomes operational later this year. Our Board of Trustees felt strongly, asking PHADA staff to write HUD months ago that it delay the compliance date until January 2026. We will continue to press this point and remain actively engaged with HUD and others in furtherance of a workable solution.


Tenant Accounts Receivable

We relayed our concerns that, for a couple of years now, about 20 percent of HAs have been “severely impacted” (HUD’s definition) by rent collection problems. This is creating the possibility of more insolvent housing agencies with demand for shortfall funds rising from just $25 million to almost $400 million in the last few years. In addition, the Department’s 30-day notice requirement exacerbates rent revenue problems. Although we asked HUD to drop that proposed rule, it seems doubtful the Department will take that step.

Both HUD and the industry have requested additional supplemental funding for shortfall HAs in the past couple of years. Because of strict budget caps and other factors, Congress has not heeded that request. In any case, we remain deeply concerned about the situation and PHADA will continue to raise the alarm on this issue at HUD and on Capitol Hill.



Some other topics included impediments with the Moving to Work program expansion, the need for more housing production and preservation, and the 2025 HUD budget process. Again, we appreciated the attentiveness of Secretary Todman. It is refreshing and helpful to have someone with her knowledge and experience at the Department’s helm. We look forward to other productive sessions with the Secretary and her team.


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