HUD Issues Initial Guidance on Housing Opportunity through Modernization Act (HOTMA)

The Housing Opportunity through Modernization Act of 2016 (HOTMA), signed into law in late July, authorizes a number of reforms to federal housing programs, including public housing and the Housing Choice Voucher program.  On October 24, HUD published initial implementation guidance detailing the changes that can be effected immediately and those that require rulemaking or other actions by HUD first.  Changes to the project-based voucher program fall into the latter category.  Changes effective immediately include:

• Allowing PHAs to establish a payment standard of up to 120% of the FMR as a reasonable accommodation
• Where FMRs fall, allowing PHAs to use the previous payment standard for families who continue to reside in the same unit
• Extending Family Unification Program (FUP) eligibility for youths aging out of foster care, raising the age to not more than 24 and the maximum term of assistance to 36 months.