Revision Provides Greater Flexibility to HAs
On February 2, HUD published a revised version of Notice PIH-2023-27, “Implementation Guidance: Sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA).” The revised notice clarifies implementation guidance for the Section 104 asset limit, makes numerous technical corrections, and clarifies language throughout the document.
Importantly for HAs and the families they serve, HUD has revised its interpretation of the HOTMA asset limit. As a reminder, the provision prohibits HAs from assisting households with over $100,000 in net family assets (adjusted annually for inflation and excluding retirement and college savings accounts) or who own real property suitable for occupancy. The Department’s initial guidance stated that HAs had little discretion in enforcing the asset limit for either new admissions or currently assisted families.
The Association is pleased to see that, consistent with our advocacy, HUD’s revised guidance provides HAs with greater flexibility, including the ability to not enforce the asset limit for either some or all currently assisted families.
Last August, PHADA – along with other housing industry groups – wrote to HUD arguing that the Department’s Section 104 interpretation was contrary to statutory intent, which clearly provides HAs with the flexibility to implement the asset limit for existing tenants. The Association is pleased to see that, consistent with our advocacy, HUD’s revised guidance provides HAs with greater flexibility, including the ability to not enforce the asset limit for either some or all currently assisted families.
Consistent with the HOTMA statute, however, HAs do not have this flexibility for new admissions and must enforce the asset limit in those circumstances.
PHADA will provide greater detail on the revised HOTMA implementation notice in the next edition of the Advocate. HUD has also recently posted several informational videos on the HOTMA resources page that members may consult for additional implementation guidance.