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We’ll break down the new HOTMA methodology, explain the two categories of student financial assistance, and show you how to calculate what counts as income. We’ll also go over considerations for applicants with Section 8 assistance versus those without.
Due to a regulatory freeze by President Trump, the final rule for the HOME Investment Partnerships Program has been delayed until April 20, 2025. Make sure your site is prepared to implement the expanded tenant protections if and when the changes take full effect. These include detailed explanations about lease nonrenewals, proposed evictions, and required tenant rights to contest or remedy these situations.
HUD recently issued a final rule titled “30-Day Notification Requirements Prior to Termination of Lease for Nonpayment of Rent.” This regulation standardizes the eviction notice process for PHAs and certain Project-Based Rental Assistance (PBRA) properties. This rule is HUD’s latest effort to decrease housing instability and address increasing rates of homelessness among low-income families. The rule became effective on Jan. 13, 2025.
Get up to speed before the compliance date .... HUD’s Office of Multifamily Programs recently released a series of frequently asked questions (FAQ) concerning the implementation of provisions of the Housing Opportunity Through Modernization Act (HOTMA) of 2016. The FAQ includes information on the phased-in medical hardship relief provision as detailed in the HOTMA final rule, HOTMA-compliant Tenant Selections Plans at Management and Occupancy Reviews, and use of the ren...
New guidance explains the process for technical reviews.
HUD recently issued guidance for making appeals or technical reviews of the NSPIRE housing inspection protocol. According to HUD, public housing authorities (PHAs) and owners have experienced issues when submitting appeals in the National Standards for the Physical Inspection of Real Estate (NSPIRE) IT system.
Under the Section 8 program, employed residents are required to provide their last four to six consecutive pay stubs to enable the owner/agent to calculate annual employment income.
HUD provides the following conversion schedule to enable the annualization of employment income:
According to HUD, an individual under 24 years of age and enrolled in an institution of higher education is ineligible for Section 8 benefits unless the student meets at least one of the following six preliminary exceptions:
During the certification process, owners are required to determine the value of eligible household assets and any income derived from such assets. Any asset income is included in the annual income calculation for the household.
Owners need to verify, among other things, the following asset information:
Any site risk mitigation strategy should include a procedure to track and review Certificates of Insurance (COI). The appropriate site manager should ensure that a COI is collected from any vendor and contractor working on your site as well as any tenant with a renter’s insurance policy.
The COI is usually issued by an insurance broker on an Acord 25 (Certificate of Liability Insurance) form to confirm the existence...