Rule2025-23989
Housing Opportunity Through Modernization Act: Implementation of Sections 102 and 104; Further Extension of Compliance Date
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 30, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
This document further extends the compliance date for HUD's final rule entitled Housing Opportunity Through Modernization Act of 2016: Implementation of Sections 102 and 104 (HOTMA final rule) for Community Planning and Development (CPD) programs. Specifically, HUD is extending the compliance date for the HOME Investment Partnerships program (HOME), HOME-American Rescue Plan program, Housing Trust Fund (HTF), Housing Opportunities for Persons With AIDS (HOPWA), Community Development Block Grant program (CDBG), Emergency Solution Grants (ESG), Continuum of Care (CoC) programs, and CPD programs funded through competitive processes (Competitive Programs). This action is necessary to allow additional time for HUD to finalize necessary system updates and for CPD grantees to fully incorporate the new income and asset requirements into their programs.
Full Text
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<title>Federal Register, Volume 90 Issue 246 (Tuesday, December 30, 2025)</title>
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[Federal Register Volume 90, Number 246 (Tuesday, December 30, 2025)]
[Rules and Regulations]
[Pages 61062-61063]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23989]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 92, 93, 570, and 574
[Docket No. FR-6057-N-07]
RIN 2577-AD03
Housing Opportunity Through Modernization Act: Implementation of
Sections 102 and 104; Further Extension of Compliance Date
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, U.S. Department of Housing and Urban Development (HUD).
ACTION: Final rule; extension of compliance date.
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SUMMARY: This document further extends the compliance date for HUD's
final rule entitled Housing Opportunity Through Modernization Act of
2016: Implementation of Sections 102 and 104 (HOTMA final rule) for
Community Planning and Development (CPD) programs. Specifically, HUD is
extending the compliance date for the HOME Investment Partnerships
program (HOME), HOME-American Rescue Plan program, Housing Trust Fund
(HTF), Housing Opportunities for Persons With AIDS (HOPWA), Community
Development Block Grant program (CDBG), Emergency Solution Grants
(ESG), Continuum of Care (CoC) programs, and CPD programs funded
through competitive processes (Competitive Programs). This action is
necessary to allow additional time for HUD to finalize necessary system
updates and for CPD grantees to fully incorporate the new income and
asset requirements into their programs.
DATES: The compliance date for the final rule published February 14,
2023, at 88 FR 9600, as previously extended, is further extended until
January 1, 2027.
FOR FURTHER INFORMATION CONTACT: For HOME and the HTF, Milagro Fisher,
Senior Affordable Housing Specialist, Office of Affordable Housing
Programs, at telephone (202) 708-2684, Room 7160; for HOPWA, Lisa
Steinhauer, Senior Program Specialist, Office of HIV/AIDS Housing, at
telephone (215) 861-7651, Room 7248; for CDBG, B. Cory Schwartz, Deputy
Director, Office of Block Grant Assistance, at telephone (202) 402-
4105, Room 7282; for the ESG and CoC programs: Norm Suchar, Director,
Office of Special Needs Assistance Programs (SNAPs), telephone (202)
708-5015, Room 7262. The mailing address for each office contact is
Department of Housing and Urban Development, 451 Seventh Street SW,
Washington, DC 20410-7000. HUD welcomes and is prepared to receive
calls from individuals who are deaf or hard of hearing, as well as
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit: <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
On February 14, 2023, HUD published the HOTMA final rule (88 FR
9600), which established revisions to HUD's income regulations at 24
CFR parts 5, 92, 93, 570, and 574, affecting various CPD programs. The
effective date for these revisions was January 1, 2024.
Due to delays in the necessary updates to HUD's internal systems
and providing CPD grantees with sufficient time to incorporate the
changes into their program policies, HUD previously published two
extensions. The most recent extension, published on December 31, 2024
(89 FR 106998), extended the compliance date for CPD grantees to
January 1, 2026. In addition, HUD permitted CPD grantees the
flexibility to implement applicable HOTMA income safe harbors (e.g., 24
CFR 5.609(c)(3), 24 CFR 92.203(a) or 24 CFR 93.151(a)) prior to full
implementation deadline of the HOTMA final rule.
On January 6, 2025, HUD published the final rule (FR-6144-F-03),
titled ``HOME Investment Partnerships Program: Program Updates and
Streamlining'' (the 2025 HOME final rule). This rule extended the HOTMA
compliance date for the HOME program until February 5, 2026, or later,
as determined by HUD in 24 CFR 92.3. On February 3, 2025, HUD delayed
the effective date of some elements of the HOME final rule, including
changes to the income regulations at 24 CFR 92.203, until April 20,
2025, and delayed the required compliance date of those provisions
until April 20, 2026.
The 2025 HOME final rule expanded the income safe harbors in 24 CFR
92.203 to include additional forms of public assistance and expanded
the entities from which PJs may accept income determinations for rental
projects, including small scale projects and HOME funded tenant-based
rental assistance programs. Additionally, it reduced the frequency of
income determinations in TBRA programs.
II. Further Extensions of the HOTMA Final Rule Compliance Date and
Expanded Income Safe Harbors
HUD has determined that a further extension of the HOTMA final rule
is necessary. Despite the prior extension of the HOTMA final rule,
additional time is required for HUD to complete the complex programming
and testing of its systems that support CPD programs to ensure full
compliance with all of the HOTMA final rule provisions. Furthermore,
CPD grantees will require additional time after HUD's system updates
and final guidance are released to integrate these changes into their
local program operations, update their own software, and train staff.
Therefore, in recognition of these ongoing operational issues and
the need for a smooth, effective transition, HUD is exercising its
authority to further extend the compliance deadline for the HOTMA final
rule. CPD grantees may continue to set their own compliance dates as
early as January 1, 2024, but must be in full compliance no later than
the date established by this document.
As in the prior extension of the HOTMA final rule's compliance
date, HUD is permitting CPD grantees the choice to implement applicable
income safe harbors in 24 CFR 5.609(c)(3). Additionally, HUD is
permitting HOME PJs the choice to implement all expanded income safe
harbors and flexibilities described in 24 CFR 92.203 of the 2025 HOME
final rule without implementing the remaining provisions of the
regulations updated by the HOTMA final rule.
Lastly, HUD reminds CPD grantees and project owners to comply with
the most recent publication of the Federally Mandated Exclusions from
Income (FR-6410-N-01), published on January 31, 2024, when making
income determinations, even if they have not yet implemented the HOTMA
final rule.
[[Page 61063]]
III. Conclusion
Accordingly, HUD extends the January 1, 2026, compliance date for
implementing the changes made by the HOTMA final rule to 24 CFR parts
5, 92, 93, 570, and 574 for the CPD programs described in this document
until January 1, 2027. Until this date, CPD grantees may continue to
adhere, as applicable, to the requirements found in both their program
regulations and the regulations at 24 CFR 5.603, 24 CFR 5.609, 24 CFR
5.611, and 24 CFR 5.617 as they existed prior to January 1, 2024.
Authority: 42 U.S.C. 3535(d).
Bryan W. Horn,
Acting Principal Deputy Assistant Secretary for Community Planning and
Development, Office of Community Planning and Development.
[FR Doc. 2025-23989 Filed 12-29-25; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on December 30, 2025.
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