New Income Exclusions and Definitions Must Be Implemented by July 1, 2025
On December 17, HUD published Notice PIH 2024-38, establishing a phased implementation schedule for certain provisions in Sections 102 and 104 of the Housing Opportunity through Modernization Act of 2016 (HOTMA). Implementation of HOTMA Sections 102 and 104 is contingent on the rollout of the Housing Information Portal (HIP), the successor system to IMS/PIC. The HIP rollout has been plagued by miscommunication and delays, and this has in turn led to several postponements to the HOTMA compliance date.
The notice establishes two mandatory compliance dates for certain HOTMA provisions that the Department believes do not require HIP to implement. These include:
- By February 1, 2025: HAs must be using the new HUD consent/information release form (HUD-9886-A) and must have instituted new consent policies surrounding the use of this form.
- By July 1, 2025: HAs must be compliant with HOTMA provisions on income exclusions, definitions, and de minimis errors.
The notice also reiterates that HAs should not enroll families in the Earned Income Disregard (EID) after January 1, 2024. Families already receiving the disregard on that date may continue benefitting from the EID until their 24-month term expires.
Members should consult the HOTMA implementation notice (PIH 2023-27) for more information on these policies. HUD is encouraging HAs to contact their software vendors to ensure that their systems can submit 50058 forms that comply with the phased-in provisions.
PHADA is disappointed that the Department has placed this additional implementation burden on HAs, especially given the challenges facing agencies around inadequate funding, increasing costs, and elevated tenant accounts receivable. The Association has consistently argued that HUD should finalize development of HIP and ensure its effective rollout before mandating HOTMA compliance. Members interested in learning all the latest around HOTMA and HIP should plan to attend “HOTMA – Understanding the Operational Shifts” at PHADA’s upcoming Commissioners’ Conference in Miami.