Blog
Blog Dated [ 2024-10-29 ]
USDA/RD released a Multifamily Housing Stakeholder Announcement on October 3, 2024 that officially announced an extension of RD/MINC's full HOTMA related compliance from 01/01/2025 to 07/01/2025. It also states that all RD 3560-8 Tenant Certifications effective on or after 01/01/2025 will use the new .45 % Passbook Savings Rate for determining Imputed Income from Assets that continues to be based on the current $ 5,000 Imputed Asset Value Threshold. A PDF file copy of this document is available on our RD RELATED DOWNLOADS page.
Below is actual text from this document ...
Rural Development Multifamily Housing HOTMA Implementation Update
Washington D.C., October 03, 2024 - The Rural Housing Service (RHS) Office of the Multifamily Housing (MFH) is announcing a change in the implementation date of the Housing Opportunity Through Modernization Act (HOTMA).
On September 20, 2024, U.S. Department of Housing and Urban Development (HUD) announced that thecompliance date will be extended to July 1, 2025. To align with HUD, RHS Multifamily Housing is extending fullimplementation of applicable HOTMA regulations until July 1, 2025. All MFH tenant certifications effective on orafter July 1, 2025 must comply with HOTMA requirements.
RHS published an Unnumbered Letter (UL) on August 19, 2024 notifying MFH staff of the anticipated timeline for HOTMA implementation. As indicated in the UL, updated Management Interactive Network Connection (MINC) / Industry Interface specifications for software providers have been posted on the MINC home page. Due to the new implementation date, please note the following:
1. The updated Form RD 3560-8 is expected to be published in October 2024. Since tenant certificationscan be submitted to the Agency up to 90 days before their effective date, please note the following:
* The updated Form RD 3560-8 will be used for the submission of tenant certifications effective July 1, 2025.
* Once the updated form is published, the current Form RD 3560-8 will be renamed Form RD3560-8A and should be used for tenant certifications effective before July 1, 2025.
2. Updates to Handbook 2-3560, originally scheduled for October 2024, will be delayed until January 2025.
3. Any references to January 1, 2025 in the UL should be replaced with July 1, 2025.
4. The Passbook Savings Rate increase from 0.4% to 0.45% will be implemented January 1, 2025.
HOTMA was signed into law on July 29, 2016, and directed HUD to update income calculation rules found in theHousing Act of 1937. To incorporate the changes made by HOTMA, HUD published a Final Rule on February 14, 2023, updating the existing 24 CFR 5.609 and 24 CFR 5.611. The HOTMA changes found at 24 CFR 5.609 (a) and (b) and 24 CFR 5.611 affect the RHS Multifamily Housing portfolio. (See UL published March 4, 2024.).