A. J. Johnson to Offer Live Webinar on Assistance Animals

HUD Issues Final Rule Updating HOME Investment Partnerships Program

The U.S. Department of Housing and Urban Development (HUD) has announced a significant update to the HOME Investment Partnerships (HOME) program regulations. This final rule, which will be published in the Federal Register on January 6, 2025, aims to modernize and streamline program requirements and ensure better alignment with other federal housing initiatives. Here is a detailed overview of the changes and their implications for stakeholders. Key Highlights of the Final Rule Simplification and Streamlining: The updated regulations are designed to reduce administrative burden and complexity, making it easier for participants to navigate the program requirements. Changes include clarified guidelines and updated processes to improve efficiency and accessibility. Alignment with Other Federal Housing Programs: The revisions harmonize HOME program regulations with other federal housing initiatives, such as the Community Development Block Grant (CDBG) and Section 8 Housing Choice Voucher programs. This alignment facilitates cohesive and complementary use of federal housing resources. Implementation of Recent Statutory Amendments: The final rule incorporates recent amendments to the HOME statute, ensuring compliance with current legislative mandates. Applicability: The revised regulations apply to developments for which HOME funds are committed on or after 30 days following the publication date effectively starting February 5, 2025. Background on the Final Rule The final rule follows the publication of a proposed rule on May 29, 2024. HUD received and reviewed extensive feedback from stakeholders during the comment period, resulting in adjustments to ensure the regulations address both practical challenges and statutory requirements. Minor revisions were also made to CDBG and Section 8 program regulations to align with the updated HOME program rules. Implications for Affordable Housing Stakeholders For Developers: Developers planning to utilize HOME funds for projects must familiarize themselves with the updated requirements to ensure compliance. Streamlined processes may expedite project approvals and reduce administrative delays. For Public Housing Agencies (PHAs) and Local Governments: Agencies administering HOME funds will benefit from more precise regulations and enhanced alignment with other federal housing programs. Training and resources may be required to adapt to the new requirements. For Tenants and Communities: The updates aim to enhance the efficiency and effectiveness of HOME-funded projects, resulting in improved housing opportunities for low-income families. Next Steps HUD encourages all stakeholders to review the final rule in detail and assess its impact on their operations and strategies. Additional guidance and training materials are expected to be released to assist in the transition to the updated regulations. Conclusion The final rule represents a significant step forward in modernizing the HOME program and optimizing its role in addressing the nation s affordable housing needs. Stakeholders must promptly align with the updated requirements and capitalize on the improved processes. Shortly, I will post an article on the A. J. Johnson Consulting Services website outlining the most significant HOME rules changes, especially those that will impact management operations at projects utilizing HOME funds.

HUD Extends HOTMA Compliance Deadline for Community Planning and Development Programs to 2026

The U.S. Department of Housing and Urban Development (HUD) has announced an extension of the compliance deadline for implementing specific provisions of the Housing Opportunity Through Modernization Act (HOTMA) final rule for Community Planning and Development (CPD) programs. This extension will be official when published in the Federal Register on December 31, 2024. Key Points: The extension applies to multiple programs including HOME Investment Partnerships, HOME-American Rescue Plan, Housing Trust Fund (HTF), Housing Opportunities for Persons With AIDS (HOPWA), Community Development Block Grant (CDBG), Emergency Solution Grants (ESG), and Continuum of Care (CoC) programs. CPD grantees must comply with the HOTMA final rule by January 1, 2026, but they may choose to implement the changes earlier, starting from January 1, 2024. HUD cited delays in updating its systems and the need to provide grantees additional time to incorporate new income and asset requirements into their programs as reasons for the extension. Safe Harbor Provisions: The notice also allows certain CPD grantees to implement income safe harbor provisions before the extended compliance date: HOPWA, ESG, and CoC program grantees may use the safe harbor provision at 24 CFR 5.609(c)(3). HOME and HTF grantees can implement specific safe harbor provisions under their regulations. Grantees must update their program guidelines and establish appropriate policies before using these provisions. Background: This extension follows earlier announcements affecting other HUD programs: In September 2024, the Office of Public and Indian Housing (PIH) announced that Public Housing Agencies would not need to implement certain HOTMA provisions by January 2025. The Office of Housing issued a similar notification extending the deadline to July 1, 2025 for multifamily owners. Until their new compliance dates, CPD grantees must continue following existing regulations as they were before January 1, 2024, while having the option to implement the new safe harbor provisions described in the notice. The extension aims to ensure a smoother transition to the new requirements while reducing the administrative burden on grantees who may otherwise need to maintain two different income requirements for the same units.

Rural Development Updates Form 3560-8, Tenant Income Certification

On December 10, 2024, the Rural Housing Service (RHS) Office of Multifamily Housing (MFH) announced an updated Form RD 3560-8 Tenant Certification for the July 1, 2025, implementation of the changes to income and asset calculations due to the Housing Opportunity Through Modernization Act (HOTMA).  On October 3, 2024, RHS Multifamily Housing extended the implementation of applicable HOTMA regulations to July 1, 2025.  Effective on or after July 1, 2025, all MFH tenant certifications must comply with HOTMA requirements. Rural Development has updated Form RD 3560-8 Tenant Certification to accommodate HOTMA changes. The revised Form was published on December 06, 2024, and is available on the United States Department of Agriculture s (USDA) eForms website. Since tenant certifications can be submitted to the Agency up to 90 days before their effective date, please note the following: The updated Form RD 3560-8 is for tenant certifications with an effective date of July 1, 2025, or after. The previous Form RD 3560-8 has been renamed Form RD 3560-8A and will be used for tenant certifications effective before July 1, 2025. Both forms can be found on the eForms website. For previously published Rural Development guidance related to HOTMA, please refer to the following: Unnumbered Letter published March 4, 2024 Unnumbered Letter published August 19, 2024 MFH Stakeholder Announcement HOTMA Implementation update October 3, 2024 Unnumbered Letter published November 14, 2024 (Passbook Savings Rate update)

Trump Nominates Scott Turner as HUD Secretary

In a significant move relating to affordable housing, former President Donald Trump has nominated Scott Turner as Secretary of the U.S. Department of Housing and Urban Development (HUD). Known for his leadership and commitment to community development, Turner brings a dynamic blend of experiences to the role. Scott Turner is an American politician and former professional football player who has served in various public service roles. He played as a defensive back in the NFL from 1995 to 2003 with the Washington Redskins, San Diego Chargers, and Denver Broncos. After his NFL career, Turner entered politics in Texas. From 2013 to 2019, he served as a Republican in the Texas House of Representatives for District 33. During his time in the state legislature, he focused on economic development and education initiatives. In 2019, Turner was appointed Executive Director of the White House Opportunity and Revitalization Council under President Trump. There, he implemented and oversaw Opportunity Zones across the country, a program designed to spur economic development and job creation in economically distressed communities. Turner has been known for focusing on economic development, particularly in underserved communities, and has frequently spoken about the importance of creating pathways to prosperity through public-private partnerships. As HUD Secretary, Turner s priorities are expected to align with his previous initiatives. These include expanding affordable housing options, strengthening public-private partnerships to revitalize urban areas, and addressing systemic challenges such as homelessness and housing insecurity. His nomination comes at a critical time as the nation grapples with escalating housing costs, supply shortages, and the lingering effects of the COVID-19 pandemic on vulnerable populations. Supporters of Turner s nomination laud his hands-on approach and ability to engage with local leaders, community organizations, and private investors to drive meaningful progress. However, critics have raised concerns about the long-term impacts of Opportunity Zones, particularly regarding potential displacement and gentrification in some areas. Turner s ability to address these concerns while fostering equitable development will likely be a focal point during his confirmation hearings. Senate confirmation of Turner is expected, and no significant objections to the appointment have yet been raised.