Title
Resolution to Adopt Amendments to the Housing Choice Voucher Administrative Plan and FSS Action Plan
..Memorandum
On February 14, 2023, HUD published the Final Rule implementing sections 102, 103, and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). On, September 29, 2023, HUD Notice PIH 2023-27 to provide guidance to PHAs on how to implement the HOTMA regulations described in the final rule. HUD then issued a revised version on February 2, 2024. On February 29, 2024, we were notified by HUD that agencies cannot implement the income and asset requirements in Sections 102 and 104 of HOTMA without having access to the revised HUD-50058 in HIP.
Finally, on December 18, 2024, HUD published Notice PIH 2024-38, which identifies provisions in HOTMA 102/104 that PHAs must comply with no later than July 1, 2025. HUD will not enforce compliance with all Section 102 and 104 income and assets provisions by January 1, 2025. PHAs will not have software capable of submitting HOTMA-compliant forms to HIP by January 1, 2025, because HIP development has not been completed. The IMS/PIC legacy system reflects pre-HOTMA requirements in many places. When the timeline for completion of HIP development and PHA migration is known, HUD will issue further guidance on the deadline to comply with any outstanding provisions of Sections 102 and 104. HUD will provide regular updates on the progress of systems development.
These program regulation changes must be included in the agency’s Administrative Plan, which describes the policy and procedure for administering the Housing Choice Voucher program. Staff recommend changes to the entire Administrative Plan which include plan organization changes, clarification to regulations, and policy changes. Administrative Plan revision include varied implementation timelines for NSPIRE and for certain provisions of HOTMA. The full compliance date for some previsions of HOTMA 102/104 remains unknown, and other provisions of HOTMA 102/104 must be implemented no later than July 1, 2025. For this reason, the proposed revisions are set up to be applicable both in the meantime and upon HOTMA 102/104 full compliance. This means that in some cases, we provide two versions of certain chapters, and per HUD’s recommendation. The attached HOTMA appendix points out the HOTMA 102/104 policies that we have also explicitly called out throughout the document. In addition, the Family Self-Sufficiency (FSS) Action Plan revision contains all policies necessary to be compliant with the FSS Final Rule, HUD’s FAQ on final rule implementation, and HUD’s HOTMA implementation guidance found in Notice PIH 2023-27, among other requirements.
Once HUD release use of the HIP system, the PHA’s policies have been updated and the PHA’s software is able to submit transactions to HIP, the PHA may begin fully implementing HOTMA. The PHA selects a date for full compliance with HOTMA, no later than January 1, 2025. All transactions with an effective date on or after the PHA’s compliance date must follow HOTMA regulations and the PHA’s updated HOTMA policies.
Staff
Prepared By: Weneshia Brand, Deputy Director, Ann Arbor Housing Commission
Approved By: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Body
Whereas, HUD published the Final Rule implementing the Housing Opportunity Through Modernization Act of 2016 (HOTMA), in February 2023;
Whereas, on February 29, 2024, PHAs were notified by HUD that agencies cannot implement the income and asset requirements in Sections 102 and 104 of HOTMA without having access to the revised HUD-50058 in HIP;
Whereas, on March 20, 2024, the Board approved amendment of the HCV Administrative Plan to implement the HOTMA provisions: to stop enrolling new families in the Earned Income Disallowance EID and may immediately implement other HOTMA changes not dependent on transitioning to the HIP system, Form HUD-9886-A, Safe Harbor income verifications, verification hierarchy, self-certification of SSN along with a third-party document as a last resort, and stop periodic zero income reviews and allow self-certification verification for zero income; and
Whereas, on November 20, 2024, the Board approved amendment of the HCV Administrative Plan to implement the HOTMA provisions: which details several amended regulations of the RAD PBV program including: treatment of zero-HAP families; HUD revised Implementation of Special Purpose Voucher Program: HUD-VASH; PHA’s ability to request waivers and HUD alternative requirements for Special Purpose Voucher Program: Mainstream Vouchers; and
Whereas, on December 18, 2024, HUD published Notice PIH 2024-38, which identifies provisions in HOTMA 102/104 that PHAs must comply with no later than July 1, 2025; and
Whereas, Nan McKay provide the revised Administrative Plan January 21, 2025; which incorporates changes to the Family Self-Sufficiency (FSS) Action Plan; and
Whereas, Nan McKay provide the revised Administrative Plan February 19, 2025; which incorporates the above HUD regulation revisions including provisions in HOTMA 102/104 that PHAs must comply with no later than July 1, 2025.
NOW, THEREFORE BE IT RESOLVED that the Board of the Ann Arbor Housing Commission accept and approve the Admin Plan revisions as provided by Nan McKay and attached hereto, which will be effective July 1, 2025.