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February 6, 2024 | |||||
chfa multifamily program compliance updatesNew HUD Passbook RateHUD published an adjusted passbook savings rate of 0.40 percent, effective January 1, 2024. The new passbook rate is now required for all HTC and CHFA Loan tenant income certifications. CHFA has revised our current Tenant Income Certification (TIC) form so that owners may apply the current rate. CHFA is not requiring the new rate to be applied retroactively, but it must be updated with new certifications. Further changes to the TIC will be made later this spring to align with all applicable HOTMA updates. HOTMA UpdatesThe Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law in 2016. HOTMA makes numerous amendments to the United States Housing Act of 1937, including significant changes to income calculation, net family assets, and income reviews. HUD finalized HOTMA rulemaking in 2023. The new regulations will be mandatory in Housing Tax Credit, CHFA Loan, and Section 8 properties monitored by CHFA no later than January 1, 2025. See below for further details by program type. Housing Tax Credit and CHFA Loan ProgramsWhile not all provisions of HUD’s final HOTMA regulations apply to the Housing Tax Credit and CHFA Loan programs, many changes to income calculation, treatment of assets, and verification rules do apply. CHFA’s Program Compliance Team is currently in the process of updating various forms, trainings and our Compliance Manual to fully reflect the changes required by HOTMA that will be mandatory for all developments to comply with beginning no later than January 1, 2025. Once CHFA’s updated guidance is published, owners and management agents will have the ability to transition their policies and procedures at any point in time, so long as the changes are effective no later than January 1, 2025. Due to the extensive nature of the regulation changes, CHFA anticipates publishing detailed guidance and updated training materials and forms in the late spring of 2024. In the meantime, to learn more and view HUD’s resources on HOTMA, visit HUD’s website. How CHFA will monitor HOTMA in Housing Tax Credit and CHFA Loan compliance prior to January 1, 2025:Prior to January 1, 2025, non-compliance findings will not be issued for HOTMA-related tenant file errors during Program Compliance reviews. Instead, the Program Compliance Officer will issue observations. Project-Based Section 8HUD is in the process of updating the Tenant Rental Assistance Certification System (TRACS) to version 203.A to accommodate the various changes required by HOTMA. While HUD has stated HOTMA compliance is mandatory effective January 1, 2025, they have not yet stated a date for the release of TRACS 203A. HUD has stated that more information will be forthcoming soon. Compliance Date and Required Actions for MFH Owners (Office of Multifamily Housing)By March 31, 2024:
What MFH Owners must do once their software is HOTMA compliant:Once a MFH Owner’s software is HOTMA compliant (i.e., TRACS 203A system requirements have been fully implemented), the following things must happen:
How HUD will monitor MFH Owner compliance prior to January 1, 2025:Prior to January 1, 2025, MFH Owners will not be penalized for HOTMA-related tenant file errors during Management and Occupancy Reviews (MORs). Instead, the Contract Administrator will issue observations with corrective actions. By January 1, 2025:Full compliance with the HOTMA final rule is mandatory effective January 1, 2025. How HUD will monitor owner compliance on or after January 1, 2025:
More information can be found on the HUD HOTMA website: Housing Opportunity Through Modernization Act | HUD.gov / U.S. Department of Housing and Urban Development (HUD). Below are links to the notice and a list of discretionary policies to implement under HOTMA.
TrainingsKeep your eye out for HOTMA related trainings offered via chfareach. Questions?Please reach out to your Program Compliance Officer or Section 8 MOR Officer for more information. |
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