HUD PIH Notice § 2024-19

                                 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                                               WASHINGTON, DC 20410-5000

OFFICE OF PUBLIC AND INDIAN HOUSING




SPECIAL ATTENTION OF:                           NOTICE PIH 2024-19
Office Directors of Public Housing;             Issued: June 5, 2024
Regional Directors; Public Housing              Expires: This notice remains in effect until
Agencies; Property Owners and                   amended, superseded or rescinded.
Landlords Participating in any HCV
Program                                         Cross References: 24 CFR 5, 8, 42, 50, 91, 92, 93,
                                                247, 290, 882, 888, 891, 903, 908, 943, 945, 960,
                                                972, 982, 983, and 985, and 1000
                                                Notice PIH 2023-13
                                                Notice PIH 2023-06
                                                Notice PIH 2018-01
                                                Notice PIH 2017-18
                                                Notice PIH 2017-20
                                                Notice PIH 2017-21
                                                Notice PIH 2016-22
                                                Notice PIH 2011-28




SUBJECT: HOTMA HCV and PBV Final Rule – Guidance on Effective and Compliance
Dates and PHA Implementation Preparation

1. Purpose

The purpose of this notice is to provide initial guidance to Public Housing Agencies (PHAs)
administering Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) programs on
the final rule entitled “Housing Opportunity Through Modernization Act of 2016—Housing
Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining
Changes” (hereinafter, the “HOTMA voucher final rule"). The HOTMA voucher final rule was
published in the Federal Register on May 7, 2024, and can be found at 89 FR 38224.

This notice provides information on the various effective dates and compliance dates set forth in
the HOTMA voucher final rule. Additionally, this notice provides guidance to PHAs regarding
necessary administrative preparation required for timely implementation of changes brought
about by the HOTMA voucher final rule.
2. Background

The Housing Opportunity Through Modernization Act of 2016 (HOTMA)1 made significant
changes to statutes that govern HUD programs, including the authorizing statute for the HCV
and PBV programs found at Section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f). HUD implemented several of HOTMA’s HCV and PBV provisions through Federal
Register notices issued in 2016 and 2017.2 In 2020, HUD issued a proposed rule to update its
voucher program regulations in accordance with HOTMA.3 Additionally, HUD issued a final
rule on Sections 102, 103, and 104 of HOTMA related to income and assets, which is outside the
scope of this Notice.4

On May 7, 2024, HUD published the HOTMA voucher final rule. The HOTMA voucher final
rule amends HUD’s regulations to incorporate HOTMA provisions HUD had previously
implemented via Federal Register notice, implements additional changes to HCV and PBV
programs required by HOTMA, and makes additional regulatory changes that are intended to
reduce the burden on PHAs.

3. Effective Dates

The HOTMA voucher final rule is effective June 6, 2024, except for the provisions for which the
effective date has been delayed indefinitely as provided below in paragraphs 3.a and 3.b. PHAs
must not implement any changes due to the HOTMA voucher final rule prior to the effective date
of the provision at issue.

    a. PHA-owned certification and PHA-owned agreement certification: The HOTMA
       voucher final rule establishes regulations permitting a PHA to execute HUD-prescribed
       certifications in lieu of a Housing Assistance Payments (HAP) contract (for HCV or
       PBV) or agreement to enter into a HAP contract (AHAP) (for PBV) in the case of certain
       PHA-owned units. HUD has delayed the effective dates of these provisions indefinitely
       in order to publish the required certification forms. As a result, PHAs must not begin to
       use the flexibilities provided in the following regulations until they become effective on
       the date published with the required certification forms: 24 CFR 982.451(c); 24 CFR
       983.154(h), and 24 CFR 983.204(e).
    b. PBV HAP contract rider: The HOTMA voucher final rule establishes regulations
       permitting a PHA to execute a HAP contract, subject to a rider, for rehabilitated housing
       before the rehabilitation is complete. HUD has delayed the effective dates of these
       provisions indefinitely in order to publish the required rider. As a result, PHAs must not
       begin to use the flexibilities provided in the following regulations until they become
       effective on the date published with the required rider: 24 CFR 983.154(g) and 24 CFR
       983.157.


1
  Public Law 114–201, 130 Stat. 782.
2
  81 FR 73030 (Oct. 24, 2016); 82 FR 5458 (Jan. 18, 2017); 82 FR 32461 (Jul. 14, 2017); additional guidance was
provided in Notices PIH 2017-18, PIH 2017-20, and PIH 2017-21.
3
  85 FR 63664 (October 8, 2020).
4
  88 FR 9600 (February 14, 2023).

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4. Compliance Dates

Compliance with the HOTMA voucher final rule is required on the same date as the effective
date (June 6, 2024), except for the provisions described below in paragraphs 4.a, 4.b, and 4.c.
The compliance date is the date by which the PHA must operate according to the new regulatory
provisions. If a regulatory provision has a compliance date that differs from the provision’s
effective date, the PHA may choose whether to begin to follow the new provision beginning on
the effective date or to follow the prior provision (the provision that existed before the HOTMA
voucher final rule provision became effective) for a period until the PHA is ready to follow the
new provision (no later than the compliance date). The amount of time between the effective
dates and the compliance dates is intended to afford PHAs sufficient time to prepare for timely
compliance.

The provisions with compliance dates that are after the applicable effective date are as follows:

   a. 90 days after effective date (September 4, 2024).
        i. Information when family is selected: 24 CFR 982.301 and 24 CFR 983.252. The
           HOTMA voucher final rule changes certain requirements for the PHA to brief
           families selected for assistance. PHAs must update briefing procedures and materials
           in order to comply, no later than September 4, 2024.
       ii. Payment standards: 24 CFR 982.503. The HOTMA voucher final rule changes certain
           requirements for establishing payment standards. HUD provides for a compliance
           date of September 4, 2024, in order for PHAs to update policies and procedures to
           effectively implement changes to payment standard policies. HUD intends to publish
           consolidated payment standard guidance prior to the compliance date.
      iii. Homeownership program: 24 CFR 982.625 to 982.641. The HOTMA voucher final
           rule changes certain requirements for the homeownership program. HUD provides
           for a compliance date of September 4, 2024, to provide time for PHAs to update
           policies and procedures to effectively implement changes in the homeownership
           program.
      iv. PBV analysis of impact: 24 CFR 983.58(b). The HOTMA voucher final rule requires
           a PHA to perform an analysis of the impact prior to selecting a project for PBV
           assistance, if the PHA is project-basing 50 percent or more of the PHA’s authorized
           voucher units. HUD provides for a compliance date of September 4, 2024, in order to
           allow the PHA to transition to the new requirement without disrupting PBV planning
           efforts that are already underway.
       v. Overcrowded, under-occupied, and accessible PBV units: 24 CFR 983.260. The
           HOTMA voucher final rule updates the procedures and timeframes applicable when a
           PHA determines that a family is occupying a wrong-size unit or is occupying a unit
           with accessibility features that the family does not require, and the unit is needed by a
           family that requires the accessibility features. On the effective date of this provision,
           PHAs may have made such determinations for some families and be processing those
           families’ moves to other continued assistance. The September 4, 2024, compliance
           date for this provision serves to provide PHAs adequate time to update their
           procedures and to ensure families whose moves are in process have adequate notice
           of any change to the amount of time available to move. To prepare for impacted

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        families’ moves to be compliant with newly applicable timeframes no later than the
        compliance date, PHAs will need to complete procedural updates and family
        notifications well in advance of the compliance date. As a reminder, PHAs are also
        subject to Section 504 of the Rehabilitation Act (Section 504) and HUD’s Section 504
        regulation, which among other obligations, requires PHAs to take reasonable
        nondiscriminatory steps to maximize the utilization of accessible units in accordance
        with the requirements in part 8, and which applies in addition to this PBV provision.
   vi. Section Eight Management Assessment Program (SEMAP): 24 CFR 985.3. The
        HOTMA voucher final rule makes changes to certain SEMAP indicators that require
        changes to the HUD verification method, including the clarification that any move
        into a PBV unit is included for purposes of scoring the initial inspections indicator.
        HUD intends to issue separate guidance on how SEMAP will be conducted after
        IMS/PIC is shut down and before there is an active SEMAP module in the Housing
        Information Portal (HIP), as previously discussed in PIH Notice 2024-12, Housing
        Information Portal (HIP) Implementation, issued April 24, 2024. HUD provides for a
        compliance date of September 4, 2024.
b. 180 days after effective date (December 3, 2024). Payment standard changes: 24 CFR
    982.505. The HOTMA voucher final rule makes changes to the required procedure to
    calculate the HAP for tenant-based HCVs based on changes in the payment standards.
    HUD provides for a compliance date of December 3, 2024, in order for PHAs to update
    policies and procedures to effectively implement payment standard changes. HUD
    intends to publish consolidated payment standard guidance prior to the compliance date.
c. One year after the effective date (June 6, 2025).
     i. Independent entities for PHA-owned units: 24 CFR 983.57 and 24 CFR 983.155(b).
        The HOTMA voucher final rule changes the functions of an independent entity for
        PHA-owned units. Most notably: the independent entity must approve substantial
        improvement to PBV units under a HAP contract; the independent entity must
        confirm completion of development activity for or substantial improvement to PBV
        units; and the independent entity no longer needs to agree upon the term or extensions
        of the PBV HAP contract. To afford PHAs sufficient time to update contracts with
        independent entities (or select new independent entities in some circumstances),
        PHAs must comply with these provisions no later than June 6, 2025. However, PHAs
        must not permit substantial improvement to PBV units under a HAP contract until an
        independent entity is in place to make approvals in accordance with 24 CFR 983.212.
    ii. Removal of families from PBV waiting list: 24 CFR 983.251(e). The HOTMA
        voucher final rule addresses the impact of a family’s rejection of the offer of PBV
        assistance or the owner’s rejection of the family on the family’s position on the PBV
        waiting list. PHAs must update waiting list procedures in order to comply, no later
        than June 6, 2025.
   iii. Occupancy of PBV units under the increased program cap and project cap excepted
        units: 24 CFR 983.262. This provision of the HOTMA voucher final rule explains
        the occupancy requirements applicable to both excepted units and units under an
        increased program cap, including the permissible PHA actions if a unit is no longer
        qualified for its excepted status or the increased program cap. To afford PHAs
        sufficient time to review PBV units’ compliance with this provision, make any
        needed updates to procedures for addressing changes to units’ status, and complete


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    the necessary actions for any units that do not comply, HUD provides for a
    compliance date of June 6, 2025, for this provision.
iv. Administrative Plan. Many changes in the HOTMA voucher final rule require PHAs
    to update their Administrative Plans, depending on the circumstances of each PHA.
    While HUD’s regulations contain a centralized list of minimum voucher program-
    wide Administrative Plan policies (24 CFR 982.54) and PBV-specific Administrative
    Plan policies (24 CFR 983.10), details are located throughout 24 CFR parts 982 and
    983. PHAs may also establish additional local policies in their Administrative Plans,
    so long as the policies are consistent with voucher program rules. As a result, the
    HOTMA voucher final rule does not list the specific Administrative Plan provisions
    with a delayed compliance date.

    PHAs must update their Administrative Plans to comply with the HOTMA voucher
    final rule if their existing policies do not already comply with the HOTMA voucher
    final rule provisions or if they are implementing discretionary program flexibilities
    that require a local policy for the first time (i.e., if the PHA’s Administrative Plan did
    not previously have a policy on the subject). To allow PHAs sufficient time to
    complete the formal adoption process, PHAs must make all revisions needed to bring
    existing Administrative Plan policies into compliance with the HOTMA voucher final
    rule no later than June 6, 2025. However, when PHAs desire to use program
    flexibilities requiring adoption of new local policies not already present in the PHA’s
    Administrative Plans, PHAs must add those policies to their Administrative Plans, in
    a manner consistent with the HOTMA voucher final rule, before using those program
    flexibilities. This is also the case when the PHA’s existing Administrative Plan
    policy is not out of compliance with the HOTMA voucher final rule, but the PHA
    wishes to implement a different PHA policy in accordance with the HOTMA voucher
    final rule. Important Note: the delayed compliance date (June 6, 2025) for
    revisions to existing Administrative Plan policies does not authorize delayed
    compliance with any other provisions of the HOTMA voucher final rule. In other
    words, PHAs that choose not to bring existing Administrative Plan policies into
    compliance with the HOTMA voucher final rule until June 6, 2025, must still operate
    in a manner consistent with all provisions of the HOTMA voucher final rule as of
    each provision’s compliance date. HUD recommends that PHAs make updates to
    their Administrative Plans at their earliest opportunity.

    Examples:
     A PHA wishes to implement the new program flexibility at 24 CFR 983.251(c)(7)
       of the HOTMA voucher final rule, in order to allow an owner to maintain a
       waiting list for a PBV project. The PHA must adopt required Administrative Plan
       policies related to this waiting list change before the PHA may implement the
       change, because this is a new program flexibility never before available and for
       which no PHAs previously had Administrative Plan policies.
     A PHA’s Administrative Plan policy with respect to PBV families’ right to move
       is not compliant with the HOTMA voucher final rule requirements of 24 CFR
       983.261(c) because the PHA’s policy omits procedures for the family to contact
       the PHA. The PHA must update this Administrative Plan policy no later than

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               June 6, 2025. However, the PHA must operate in a manner consistent with the
               HOTMA voucher final rule starting on the compliance date for 24 CFR 983.261
               (June 6, 2024). This means the PHA must operate using procedures for the family
               to contact the PHA that are consistent with the HOTMA voucher final rule from
               June 6, 2024 forward, even if it does not update its Administrative Plan until June
               6, 2025.
              A PHA wishes to operate a PBV program and has never adopted Administrative
               Plan policies regarding the PBV program. The PHA must adopt any needed
               Administrative Plan policies for operating a PBV program before the PHA may
               take any action with respect to PBVs, because this PHA will be using program
               flexibilities requiring adoption of new local policies not already present in the
               PHA’s Administrative Plan.
              A PHA’s Administrative Plan policy with respect to a PHA’s offer of continued
               assistance for PBV families moving from wrong-size units is not compliant with
               the HOTMA voucher final rule requirements of 24 CFR 983.260(b) because the
               PHA’s policy provides for an offer of tenant-based assistance in a program that
               cannot be used in any other PHA’s jurisdiction. Therefore, the program does not
               meet the definition of “comparable tenant-based rental assistance” in 24 CFR
               983.3(b) of the HOTMA voucher final rule). The PHA must update this
               Administrative Plan policy no later than June 6, 2025. However, the PHA must
               operate in a manner consistent with the HOTMA voucher final rule starting on the
               compliance date for 24 CFR 983.260 (September 4, 2024). This means the PHA
               must offer continued assistance using a form of assistance allowable under 24
               CFR 983.260(b) and must not offer continued assistance using a program that is
               not comparable (the tenant-based assistance program that cannot be used in any
               other PHA’s jurisdiction), from September 4, 2024, forward, even if it does not
               update its Administrative Plan until June 6, 2026.

5. Notes Concerning Application of the HOTMA Voucher Final Rule to PBV Projects
   Underway

No change pursuant to the HOTMA voucher final rule requires a PHA, or any other party, to
repeat any stage in the selection or development process which has already been completed for a
PBV project prior to any applicable compliance date set forth in the HOTMA voucher final rule
(or as described in this notice). If, for instance, a PHA has selected a site under the prior site
selection standards (at 24 CFR 983.57, which were moved to 24 CFR 983.55 in the HOTMA
voucher final rule) before June 6, 2024, the PHA is not required to complete a new selection.

Similarly, an AHAP signed before June 6, 2024, does not need to be amended to incorporate
changes required by the HOTMA voucher final rule. If both parties wish to amend an existing
AHAP to take advantage of changes made by the HOTMA voucher final rule, such as the
changes made to include a description of broadband infrastructure work in the AHAP, nothing
prevents such an amendment after June 6, 2024. However, HUD notes that if a project is under
an AHAP as of June 6, 2024, the parties to the AHAP cannot nullify the AHAP to proceed
without an AHAP as may otherwise be allowed under the HOTMA voucher final rule when 24
CFR 983.154(f) and (g) take effect.

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6. Notes Concerning Enforcement of the Housing Quality Standards (HQS)

As required by section 101(a)(3) of HOTMA, changes to provisions regarding enforcement of
HQS (24 CFR 982.404 and 983.208) apply only to HAP contracts that are either executed,
extended, or renewed after the effective date of the HOTMA voucher final rule.

For tenant-based HCV HAP contracts, 24 CFR 982.404(f), as amended by the HOTMA voucher
final rule, specifies how to implement the changes to the HQS enforcement provision. The
revised 24 CFR 982.404 appearing in the HOTMA voucher final rule is applicable to HAP
contracts that were either executed on or after or renewed after June 6, 2024. As provided in the
HOTMA voucher final rule, a HAP contract is “renewed” if the HAP contract continues beyond
the initial term of the lease. For all other HAP contracts, 24 CFR 982.404 as in effect on June 5,
2024, remains applicable (until renewal).

For PBV HAP contracts, 24 CFR 983.208(f), as amended by the HOTMA voucher final rule,
specifies how to implement the changes to the HQS enforcement provision. The revised 24 CFR
983.208 appearing in the HOTMA voucher final rule is applicable to HAP contracts executed on
or after or extended on or after June 6, 2024. As provided in the HOTMA voucher final rule, a
HAP contract is “extended” the earlier of the effective date of the next extension period or the
date the PHA and owner agree to the next extension. For all other HAP contracts, 24 CFR
983.208 as in effect on June 5, 2024, remains applicable (until extension). However, the PHA
and owner may agree to apply the revised 24 CFR 983.208 appearing in the HOTMA voucher
final rule to a HAP contract executed before June 6, 2024, prior to extension.

7. Notices, Guidebook Chapters, and Forms Impacted by the HOTMA Voucher Final
   Rule

The HOTMA voucher final rule makes changes to the HCV and PBV programs. As a result,
certain provisions of HUD notices that were issued prior to publication of the HOTMA voucher
final rule, listed below, are outdated. HUD will issue one or more comprehensive HOTMA
voucher final rule implementation notice(s) at a later date. HUD will also update the notices
listed below to conform to the HOTMA voucher final rule. Until that time, PHAs are
responsible for compliance with the HOTMA voucher final rule provisions as described in
section 3, 4, 5, and 6 of this notice. PHAs may continue to reference the notices listed below but
must not rely on any provisions of the notices that conflict with the HOTMA voucher final rule.
Additionally, HUD will update the Housing Choice Voucher Program Guidebook Chapters
impacted by the rule, which are listed below.

Impacted notices:
             Notice PIH 2023-13
             Notice PIH 2023-06
             Notice PIH 2018-01
             Notice PIH 2017-18
             Notice PIH 2017-20
             Notice PIH 2017-21


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              Notice PIH 2016-22
              Notice PIH 2011-28

Impacted HCV Guidebook Chapters:
           Payment Standards
           Reexaminations
           Special Housing Types
           Utility Allowances

Exception payment standards based on the FY 2024 Fair Market Rents that were approved
through the waiver process set forth in PIH Notice 2023-29, “Certain Regulatory Waivers for the
Housing Choice Voucher (including Mainstream) Program and Streamlined Review Process,”
remain in effect until the approved expiration date, which may not exceed December 31, 2024.
Waivers provided under that notice to allow the PHA to apply an increase in the payment
standard during the term of the HAP contract prior to the effective date of the family’s first
regular reexamination that have not yet expired will be superseded on the HOTMA voucher final
rule compliance date for 24 CFR 982.505, which is December 3, 2024. (The HOTMA voucher
final rule changes the date by which the PHA must apply the increase in the payment standard
for units under HAP contract and allows the PHA to apply the increased payment standard
amount at any time earlier than the required date.)

Many of the changes to the HCV and PBV programs in the HOTMA voucher final rule will also
make it necessary for HUD to make updates to existing program forms (including forms
submitted electronically through HUD systems). PHAs must continue to use the existing
program forms until updated forms are published, unless directed otherwise by HUD through
written guidance. If there is an inconsistency between the language of a form and a provision in
the HOTMA voucher final rule for which the effective and compliance dates have passed, the
HOTMA voucher final rule controls.

Note: HUD recognizes that PHAs prepare PHA plans, as required by 24 CFR part 903, well in
advance of the beginning of the PHAs’ fiscal years. The HCV Annual Plan Template (form
HUD-50075-HCV) and the 5-Year Plan Template (form HUD-50075-5Y) do not contain spaces
for the PBV information required by 24 CFR 903.7(r) and 903.6(c), as they appear in the
HOTMA voucher final rule, respectively. The revised 24 CFR 903.7(r) and 903.6(c) will
become effective June 6, 2024, which may be after some PHAs have submitted PHA plans to
HUD or begun to prepare PHA plan submissions. PHAs that have submitted or begun
preparations for submitting the applicable form on their existing PHA plan submission schedule
are not required to amend the submissions if there is no new PBV activity to report. In the case
of a PHA that does have new PBV activity to report, the PHA has two options. First, the PHA
may attach the PBV information required by 24 CFR 903.7(r) and 903.6(c), as applicable, with
the PHA’s regular submission using the template (in which case all part 903 requirements apply,
including requirements for Resident Advisory Board participation and public comment).
Second, the PHA may undertake an amendment to the PHA plan (see 24 CFR 903.21) prior to
proceeding with the PBV activity.




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8. HUD Resources

HUD appreciates that implementation of the changes in the HOTMA voucher final rule will
involve significant effort on the part of PHAs. HUD is prepared to support PHAs to successfully
implement these changes and continue to best serve assisted families. As indicated above, HUD
will issue comprehensive implementation guidance on the HOTMA voucher final rule.

Please check regularly for updates on the HOTMA Resources webpage.

9. Questions

PHAs and stakeholders of the HCV and PBV programs may send HOTMA-related questions to
HOTMAVoucher@hud.gov.




                                                   Richard J. Monocchio
                                                   Principal Deputy Assistant Secretary
                                                   Public and Indian Housing




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