The CA Quarterly Review

Fall 2024 Edition

Welcome

 

HOTMA Change of Date

 

HOTMA Highlights

Full compliance with the HOTMA final rule is mandatory effective July 1, 2025. HUD provided a wealth of information in Notice H 2023-10 to help MFH Owners prepare and subsequently implement the many program changes brought about by the Housing Opportunity Through Modernization Act of 2016 (HOTMA) sections 102 and 104 and detailed in the Final Rule published in the Federal Register on February 14, 2023.

New HUD Resources

Most recently, HUD has released training videos covering the below topics which are posted on HUD’s Multifamily HOTMA Website:

Implementation Overview Net Family Assets Determining Income Mandatory Deductions & Hardships Annual Reexaminations Verifications & Other Related Topics Interim Reexaminations Asset Limitation

 

· Owners may choose not to conduct an interim reexamination during the last three months of a certification period if a family reports an increase in income within three months of the next annual reexamination effective date.

 

Verification – The final rule updated verification of income requirements. All applicants must sign the consent form at admission, and participants must sign the consent form no later than their next interim or regularly scheduled income reexamination. After an applicant or participant has signed and submitted a consent form either on or after January 1, 2024, they do not need to sign and submit subsequent consent forms at the next interim or regularly scheduled income examination except under the following circumstances:

                        · When any person 18 years or older becomes a member of the family;

                        · When a member of the family turns 18 years of age; and

                        · As required by HUD or the PHA in administrative instructions.

The regulation clarifies that Owners must use EIV to verify tenant employment and income information at annual and streamlined reexaminations of family composition and income.  However, Owners are no longer required to use EIV to verify tenant employment and income information during an interim reexamination of family composition and income. Lastly, HUD is adjusting what the Department considers acceptable documentation of SSN to make it easier for applicants to access programs even if they do not have access to their Social Security card or other documentation acceptable to HUD.

 

These training videos can be accessed under the Implementation Guidance section on the website.

Review of HOTMA Changes (from Notice H 2023-10)

Asset Limitation –If the family owns real property that is suitable for occupancy by the family as a residence or has assets in excess of $100,000, they will not be eligible for assistance (Owners are given discretion at reexamination when enforcing the asset limitation).

Calculating Income –At Annual Reexaminations, Owners must first determine the family’s income for the previous 12-month period (with attention being paid to current income) and use this amount as the family income. New Admissions and Interim Reexaminations will remain consistent with the pre-HOTMA process.

-When calculating income, Owners will not be considered out of compliance solely due to de minimis errors in calculating family income (errors no more than $30 per month in monthly adjusted income or $360 in annual adjusted income). While de minimis errors will not result in a finding, Owners are required to correct the error retroactively.

Deductions and Expenses –

-The elderly/disabled family deduction will increase from $400 to $525.

-The sum of unreimbursed health and medical care and reasonable attendant care and auxiliary expenses will change to what exceeds 10 percent of the family’s annual income can be deducted from annual income.

-Some financial hardship exemptions will be available for eligible families.

Imputed Income –Imputed income from assets is no longer determined based on the greater of actual or imputed income from the assets. Instead, imputed asset income must be calculated for specific assets when three conditions are met:

                        · The value of net family assets exceeds $50,000 (as adjusted for inflation);

                        · The specific asset is included in net family assets; and

                        · Actual asset income cannot be calculated for the specific asset.

 

Income Exclusions – HUD is clarifying and adding some exclusions when it comes to a family’s Net Family Assets. One example is the nonrecurring income exclusion which replaces the former exclusion for temporary, nonrecurring, and sporadic income (including gifts), but it provides a narrower definition of excluded income.

Inflationary Adjustments – HUD will annually publish the eight inflation-adjusted. Click here to view the most recent published list that will be effective January 1, 2025 – Or, when the property implements HOTMA rules.

Interim Reexaminations – The final rule changes the conditions under which interim reexaminations must be conducted, codifies when interim reexaminations should be processed and made effective, and requires related changes for annual reexaminations and streamlined income determinations.

-Owners must conduct an interim reexamination of family income when they become aware that a family’s annual adjusted income has changed by an amount that the Owner estimates will result in a decrease of 10 percent or more in annual adjusted income or a lower threshold set by HUD or the Owner in their TSP.

-Owners must also conduct an interim reexamination of family income when the Owner becomes aware that the family’s adjusted income has changed by an amount that the Owner estimates will result in an increase of 10 percent or more in annual adjusted income or another amount established through a HUD notice, with the following exceptions:

· Owners may not consider any increases in earned income when estimating or calculating whether the family’s adjusted income has increased, unless the family has previously received an interim reduction during the same reexamination cycle; and 

· Owners may choose not to conduct an interim reexamination during the last three months of a certification period if a family reports an increase in income within three months of the next annual reexamination effective date.

 

Verification – The final rule updated verification of income requirements. All applicants must sign the consent form at admission, and participants must sign the consent form no later than their next interim or regularly scheduled income reexamination. After an applicant or participant has signed and submitted a consent form either on or after January 1, 2024, they do not need to sign and submit subsequent consent forms at the next interim or regularly scheduled income examination except under the following circumstances:

                        · When any person 18 years or older becomes a member of the family;

                        · When a member of the family turns 18 years of age; and

                        · As required by HUD or the PHA in administrative instructions.

The regulation clarifies that Owners must use EIV to verify tenant employment and income information at annual and streamlined reexaminations of family composition and income.  However, Owners are no longer required to use EIV to verify tenant employment and income information during an interim reexamination of family composition and income. Lastly, HUD is adjusting what the Department considers acceptable documentation of SSN to make it easier for applicants to access programs even if they do not have access to their Social Security card or other documentation acceptable to HUD.

Coming Soon: TRACS 203A Update

While HUD has not published any new updates to the timetable for the release of TRACS 203A, the deadline for MFH Owners to be in full HOTMA Compliance is July 1, 2025. Here is a reminder of what the update will entail:

 

The current TRACS Version 202D, is being upgraded to 203A in order for HUD to accept data from Multifamily Housing (MFH) business partners that complies with updated policies and procedures. This upgrade will also encompass all requirements and changes under the Housing Opportunity Through Modernization Act of 2016 (HOTMA) Final Rule published in ther Federal Register on February 14, 2023 Federal Register Volume 88, Issue 30.

 

TRACS Version 203A Rollout—

TRACS 203A MAT User Guide – Specifications and Edits to the MAT Guide:

When completed, will be posted to TRACS Documents page: Multifamily Housing - TRACS Documents - HUD. OMB has to approve all Voucher forms (50059, 50059-A, 52670, and Special Claim forms).

 

203A Go Live Transition

Go Live date is tentative as it is dependent on OMB forms approval. TRACS and CA software begins accepting both 202D and 203A Voucher and Certification transmissions. OA transition period will be determined and announced later. All certifications entered after 203A is fully up and running must follow HOTMA rules.

203A Testing – TRACS Database made available for both CA and OA software testing.

Test phases will be rolled out in Sprints to encompass all 203A changes and HOTMA requirements.

HUD Expands Housing Counseling Services to More Americans

The Department celebrates Housing Counseling by introducing new initiatives, including a partnership with Zillow, and the use of virtual methods to broaden access and reach more Americans seeking housing assistance.

HUD announced a series of new actions to expand housing counseling services and strengthen pathways to homeownership for Americans. HUD is also launching a new partnership with Zillow to help attract the next generation of homebuyers. HUD also published a final rule to allow additional flexibilities to housing counseling agencies when delivering critical housing counseling services to potential homebuyers, homeowners, and renters. Today’s announcements reflect the Biden-Harris Administration and HUD’s commitment to expanding access to homeownership, particularly for disadvantaged communities and first-time homebuyers, and communities who have typically been shut out of homeownership opportunities.

“Every day, HUD’s counselors provide thousands of Americans with trusted advice about buying a home, avoiding foreclosure, and locating and sustaining affordable housing. But we know we can help even more people” said HUD Acting Secretary Adrianne Todman. “Today’s announcements will help us do just that. Together, we will reach a new generation of homeowners, help more families build generational wealth, and continue our work to help Americans historically left out of the homebuying process.”

“We’re excited to raise awareness about the availability and benefits of housing counseling,” said Federal Housing Commissioner Julia Gordon. “These initiatives make it easier for households to access the assistance they need to navigate the homebuying process or to secure safe, affordable and stable housing.”

Partnership with Zillow to Broaden Reach of HUD’s Let’s Make Home the Goal campaign

Zillow—which reaches 217 million visitors a month—will display “Let’s Make Home the Goal” advertisements on its digital platforms. The multi-year “Let’s Make Home the Goal” campaign generates awareness of the availability and benefits of pre-purchase housing counseling provided by HUD-certified housing counselors and is designed to reach communities of color that have historically faced more difficulties with the homebuying process due to systemic barriers. Access to quality housing counseling services helps bridge the racial homeownership and knowledge gap for first-time homebuyers and communities of color seeking to buy a home and build generational wealth.

Originally launched in June 2023, the “Let’s Make Home the Goal” campaign has reached nearly 5 million diverse, prospective homebuyers in 15 media markets. This year’s initiative, with the support of Zillow, intends to reach more than 8 million potential homeowners across 42 media markets.

“We are thrilled to partner with Zillow to expand our reach and tout the importance of comprehensive housing counseling services,” said Deputy Assistant Secretary of Housing Counseling David Berenbaum. “This collaboration allows us to use Zillow's innovative platform, ensuring that more individuals and families receive the support they need to achieve their housing goals.”

“At Zillow, we are committed to getting more people home. We were founded with a focus on transparency and providing access to the data and information needed to find housing. We’re expanding on that foundation by helping consumers get connected to the right resources, helping to reduce the barriers they face to securing affordable housing,” said Jennifer Butler, Vice President of Government Affairs at Zillow. “Partnering with HUD on their 'Let’s Make Home the Goal' campaign and increasing access to quality credit counseling services is an important step to help bridge the homeownership gap and build generational wealth for more families."

New Final Rule to Expand Critical Offerings at Housing Counseling Agencies

The Modernizing the Delivery of Housing Counseling Services final rule now allows HUD-approved housing counseling agencies to use alternative communication methods, including meeting virtually and by phone, to engage and educate homebuyers and renters seeking support with their housing needs. Implementing the rule will increase accessibility for people who have difficulty obtaining in-person services due to linguistic, physical, geographic or other barriers such as transportation and childcare costs. Expanding these options is also a more cost-effective and efficient way for housing counseling agencies to meet with their clients, as they no longer need to maintain multiple facilities for in-person engagements. Participating agencies that are unable to provide virtual and/or remote meeting flexibilities or in person counseling to clients who need them are required to refer those in need of services to other agencies. Industry and public feedback on the rule indicated an overwhelming preference to be able to provide online education and counseling virtually or by telephone.

The effective date of the rule is October 16, 2024.

HUD Provides New Resources for Owners Interested in Solar Projects Tax Credits

In order to assist Owners of HUD-assisted multifamily housing properties, HUD has launched a new video as part of its series of recordings that aim to provide a better understanding of the new tax credit program that can help fund 50% of solar project costs at Federally-assisted residential properties.

The video provides a twenty-minute overview of the basic requirements of the program and explains the benefits of this unique and new opportunity. HUD plans to release more videos in the coming months to add to their playlist. Read below a summary of the program:

The Low-Income Communities Bonus Credit Program, administered by the Department of Energy (DOE), promotes cost-saving solar or wind investments in low-income communities, on Indian land, as part of affordable housing developments, and benefitting low-income households. The Low-Income Communities Bonus Credit supplements the existing Clean Electricity Investment Tax Credit (ITC) (sometimes referred to as “48E”). The standard 48E credit provides owners with a base credit of up to 30% of the cost of a renewable energy project. In particular, the Low-Income Communities Bonus Credit (also referred to as the “Low-Income or EJ Adder”) can add 20 percentage points to the base credit for solar or wind installations at low-income residential buildings considered eligible covered housing under Category 3 (Qualified Low-Income Residential Project), which includes most HUD-assisted multifamily housing properties. Therefore, the base ITC, when combined with this bonus, can fund 50% of a residential solar project. If a project qualifies for additional ITC bonuses, an owner can potentially fund up to 70% of the costs of a solar facility.

HUD has also provided a Section 48(e) Overview Slide Deck.

HUD Publishes Several Updated Forms

HUD has made updates to and released several forms over the past few months. Be sure to ensure you are using the most up-to-date-forms with the OMB exp. date of 04/30/2027. Here is a comprehensive list of those newly released forms:

 

HUD – 52522a: Housing Assistance Payments Contract Section 8 Housing Assistance Payments Program (Part l)

 

 

HUD – 9651: Consent to Assignment of HAP Contract as Security for FNMA Financing

 

HUD – 9649a: Consent to Assignment of Senior Preservation Rental Assistance Contract (SPRAC) as Security for Financing

 

HUD – 9649: Consent to Assignment of HAP Contract as Security for Financing

 

HUD – 9648d: Consent to Assignment of HAP Contract to FNMA as Security for FNMA Credit Enhancement

 

HUD – 9648a: Consent to Assignment of HAP Contract as a Security for Freddie Mac Financing

 

HUD – 9647: Housing Assistance Payments Program Housing Finance & Development Agencies Extension Amendment to Old Regulation State Agency Housing Assistance Payments Contract HAP Contract Extension to Original Maturity of Permanent Financing

 

HUD – 9644: Project-Based Section 8 Housing Assistance Payments Contract for Previous Mod Rehab Projects

 

HUD – 9643: Project-Based Section 8 Housing Assistance Payments Watch List Renewal Contract

 

HUD – 9642: Project-Based Section 8 Housing Assistance Payments Full Mark-to-Market Renewal Contract

 

HUD – 9641: Project-Based Section 8 Housing Assistance Payments Interim (Lite) Mark-to-Market Renewal Contract

 

HUD – 9640: Project-Based Section 8 Housing Assistance Payments Interim (Full) Mark-to-Market Renewal Contract

 

HUD – 9639: Project-Based Section 8 Housing Assistance Payments Preservation Renewal Contract

 

HUD – 9638: Project-Based Section 8 Housing Assistance Payments Renewal Contract for Mark-Up-to-Market Project

 

HUD – 9637: Project-Based Section 8 Housing Assistance Payments Basic Renewal Contract Multi-Year Term

 

HUD – 9636: Project-Based Section 8 Housing Assistance Payments Basic Renewal Contract One-Year Term

 

HUD – 9635: Projects Preparing a Budget-Based Rent Increase

 

HUD – 9634: Sample Use Agreement Mark-up-to-Market Where a For-Profit Owner is Transferring the Property to a Non-Profit Owner or Budget-Based Rent Increase for Capital Repairs for a Nonprofit Owner

 

HUD – 9630: Request to Renew Using Fair Market Rents (FMRs) as Market Ceiling

 

HUD – 9629: Request to Renew Using Non–Section 8 Units in the Section 8 Project as a Market Rent Ceiling

 

HUD – 9627: Letter to Owners/Agents Options 2 and 4

 

HUD – 9626: Letter to Owners/Agents Options 1 and 3

 

HUD – 9625: OCAF Rent Adjustment Worksheet Multifamily Section 8 Contracts

 

HUD – 9624: Contract Renewal Request Form Multifamily Section 8 Contracts

 

HUD – 93185b: Amendment to Project-Based Section 8 Housing Assistance Payments Contract Pursuant to Section 8(bb)(1) of the United States Housing Act of 1937

 

HUD – 93185a: Amendment to Project-Based Section 8 Housing Assistance Payments Contract Pursuant to Section 8(bb)(1) of the United States Housing Act of 1937

 

HUD – 93184: Rider to Original Section 8 Housing Assistance Payments Contract

 

HUD – 93182: Project-Based Section 8 Housing Assistance Payments Addendum to Renewal Contract under Option One or Option Two for Capital Repairs and/or Acquisition: Post-Rehabilitation Rents at Closing

 

HUD – 93181: Project-Based Section 8 Housing Assistance Payments Addendum to Renewal Contract under Option One or Option Two for Capital Repairs and/or Acquisition Costs

 

HUD – 92273-S8: RCS Rent Grid

 

HUD – 90055: Use Agreement Section 8 Use Agreement

 

HUD – 5988: Assignment, Assumption, and Amendment of Section 8 Housing Assistance Payments Contract

 

HUD – 52522b: Housing Assistance Payments Contract Section 8 Housing Assistance Payments Program (Part II)

If there are any questions regarding these forms, the updates or anything related, please contact Jennifer Lavorel at: Jennifer.C.Lavorel@hud.gov or AssetManagementPolicy@hud.gov.

HUD Publishes Technical Review Guidance and Step-by-Step Instructions on How to Submit Appeals in the NSPIRE IT System

After receiving feedback from Owners about issues they were experiencing when submitting appeals in the NSPIRE IT system, HUD responds with publishing Technical Review Guidance. This guidance provides detailed instructions for how to submit an appeal in the system.
 
As a reminder, if a Property Owner/Agent believes that a property's inspection results and score should be reviewed due to verifiable reasons, they may request a technical review. They should submit the request electronically through the NSPIRE system within 45 calendar days following the day HUD provides the inspection report.
 
A request for a technical review must be accompanied by evidence supporting the claim. HUD recommends seeking a technical review only if the correction will result in a significant improvement in the overall score of the property, such as an increase to 60 or above or a change in the inspection frequency.
 
Please email HUD at NSPIRE@hud.gov, or call the Technical Assistance Center (TAC) at 1-888-245-4860, with any questions.

Be Proactive in Your Pest Control

Being proactive when it comes to pest control can not only ensure a pest-free living environment for residents but also minimizes the need for extensive pest control interventions throughout the year. Here are some preventative measures to consider, especially as the weather outside begins to change:

Exterior of Property—

Maintaining the exterior of your property is crucial in preventing pest entry. Seal up any cracks or crevices, clear any debris (such as leaves) away, and ensure doors and windows (including screens) are properly in place and sealed.

Yard Maintenance—

Regular yard and grounds maintenance can also play a role in pest control. Keeping grass cut and vegetation trimmed as well as ensuring no standing water exists on the property can make a big difference.

Indoor Cleanliness—

A great practice, if not already done on a regular basis, is to perform monthly pest/housekeeping inspections of units as indoor cleanliness is paramount in pest prevention (especially has temperatures go down outside). Inspections can also facilitate prompt intervention to prevent any infestations from spreading if pest are already present in a unit.

Tenant Education and Communication—

Education tenants and keeping lines of communication open can play crucial roles in maintain a pest-free environment. Ensuring tenants understand basic pest-control preventive measures and know how to contact the office if evidence of pests is observed can enhance overall pest management efficiency.

The goal is early pest detection, prevention, and swift resolution of any issues in order to uphold a decent, safe, and sanitary living environment for all residents. So be sure to be proactive!

FY2025 FMR & SAFMR

Click here for FY25 FMR

Click here for FY25 SAFMR

 

Contact Center Posting/Information

All Residents of HUD Subsidized Properties (Click here for pdf printable version)

CGI provides Performance-Based Contract Administration (PBCA) services to the Tennessee Housing Development Agency (THDA) and is responsible for responding to resident concerns. The CGI Contact Center has a team of Customer Relation Specialists (CRS) who will receive, investigate and document questions and concerns you may have, such as, but not limited to the following:

• Questions or concerns regarding work order follow-up.
• Questions regarding the calculation of your rent.
• Address health & safety and HUD Handbook 4350.3 concerns.

 

Call Center Purpose:

• Call Center aids in ensuring HUDs mission of providing Decent, Safe and Sanitary Housing.
• Serve as a neutral third party to residents, owners and the public.
• Assist with clarifying HUD Occupancy Handbook 4350.3 requirements.

 

Call Center Contact Information and Business Hours:

• Hours of Operation: Monday-Friday, 8:00am to 5:00pm (Central; 9:00am -6pm Eastern
• Contact Numbers: 888-384-3540 fax: 614-985-1502 (leave message after hours)
• Written Summaries: 107 South High Street, 2nd Floor, Columbus, Ohio 43215
• Email: PBCAContactCenter@cgifederal.com
• Website: www.TNPBCA.com

 

Concerns can be submitted by the following:

• Phone
• Fax
• Mail
• Email
• Voicemail
• FOIA- Freedom of Information Act request must be submitted directly to HUD

 

Required Information to open an inquiry:

• Property name
• Caller’s name (anonymous calls accepted)
• Caller’s telephone number with area code
• Caller’s address including apartment number
• A brief, detailed description of the caller’s concern(s)

 

                                                                                                                       CGI Federal
                                                                                      2630 Elm Hill Pike • Suite 115  • Nashville, TN • 37214
                                                                                       Contact center TTY: 800-848-0298 • Spanish TTY: 866-503-0263

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