HOTMA Resources

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OHFA Housing Opportunity Through Modernization Act of 2016 (HOTMA) Guidance

Background

The Ohio Housing Finance Agency (OHFA) like all other housing finance agencies (HFAs) has been waiting for the U.S. Department of Housing and Urban Development (HUD) to release guidance on when and how to implement the HOTMA final rule since it was officially published on February 14, 2023.

OHFA's Guidance

HUD issued a delay in HOTMA implementation for sections 102 and 104 through Notice H 2023.10/ PIH 2023-27 on September 29, 2023. In this notice, HUD instructed owners must bring their programs into compliance with the HOTMA final rule as quickly as possible, but no later than January 1, 2025. Compliance means administering all aspects of the affected programs in accordance with the HOTMA final rule.

On September 20, 2024, HUD issued a Notice found HERE delaying HOTMA for Multifamily programs, pending the release of TRACS 203A. The previous deadline to come into compliance from the most recent version of HUD Notice H 2023-10 was January 1, 2025. The new deadline is July 1, 2025. HUD guidance for HOME, the NHTF, and other HUD grant programs is still pending.

While HUD has delayed implementation and in the absence of IRS guidance, OHFA will implement HOTMA on January 1, 2025. However, mandatory use of HOTMA rules will only be applicable for initial tenant certifications and recertifications effective May 1, 2025, onward. Because all verifications must be dated within 120 days of the effective dates of household certifications, those effective between January 1 and April 30, 2025, may use "pre-HOTMA" rules. For example, if a certification is due in April 2025, the paperwork should be started in December 2024 and can use pre-HOTMA rules. For a certification effective May 1, 2025, the paperwork should be started February 1, 2025, and must use HOTMA rules.

All move-in certifications and recertifications effective prior to January 1, 2025, should be conducted using pre-HOTMA rules for OHFA-funded projects or until the owner's software is HOTMA compliant. However, OHFA will not prohibit owners from implementing all or parts of the HOTMA rule prior to 2025.

  • If an owner decides to implement some of the HOTMA final rule (i.e., hybrid approach) regarding income and asset calculations (Sections 102 and 104) prior to January 1, 2025, an OHFA clarification record must be placed in the tenant file explaining which parts of the HOTMA final rule were used to certify the tenant.
  • If an owner decides to implement all of the HOTMA final rules prior to January 1, 2025, an OHFA clarification record must be placed in the tenant file stating certification was conducted using HOTMA final rules.

Importantly, OHFA will not enforce HOTMA-related file errors (i.e., will not issue 8823's) discovered prior to July 1, 2025.

HOTMA forms can be found under our HOTMA Form webpage. The use of HOTMA forms is mandatory for initial certifications or recertifications with an effective date of May 1, 2025.

HOTMA Resources

Webinars from HUD on HOTMA Related Topics

OHFA Help Desk

Compliance Links