NAHMA HUD Update: HUD Releases Proposed HOTMA Rule for Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) Implementation

October 9, 2020

Dear NAHMA Members:

Today, HUD published a rule titled “Housing Opportunity Through Modernization Act (HOTMA) of 2016—Housing Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining Changes.” As provided in the rule, this proposed rule does a number of things: First, it proposes codification of the HOTMA provisions that have been implemented via past notices, taking into account public comments received in response to HUD's January 18, 2017, implementation notice. Second, it proposes to implement several HOTMA provisions that have not yet been implemented. Third, it contains several proposed changes to regulatory provisions unrelated to HOTMA, in order to reduce the regulatory burden on PHAs and owners by clarifying, simplifying, and, in some instances, eliminating HUD-imposed requirements. Finally, the rule also proposes elimination of obsolete regulatory provisions.

As outlined in the Summary of Changes section, HUD also proposes to implement the HOTMA HCV provisions that have not yet been implemented as part of this rule, including:

  • Enforcement of Housing Quality Standards (HQS)
  • Manufactured home space rental—PHA option to make single assistance payment to family instead of owner
  • Entering into a PBV HAP Contract for rehabilitation and new construction projects without an Agreement to Enter a HAP Contract
  • Providing rent adjustments using an operating cost adjustment factor (OCAF)
  • Owner-maintained site-based waiting lists
  • Environmental requirements for existing housing

In addition to the HOTMA changes, HUD is also proposing numerous non-HOTMA related changes. In some cases, these changes are to better clarify existing regulatory requirements. In other circumstances, HUD is seeking to improve the administration of the program, simplify program rules, or reduce administrative burden and cost. For example, in this rule HUD is proposing to change the current requirements to reflect a determination that PBV existing housing is not subject to Davis-Bacon wage requirements (see the discussion in subsection 44 of the preamble).

The rule can be found HERE.  Members can provide NAHMA staff comments by Friday, December 4, 2020.