Washington D.C., June 24, 2025 – The Rural Housing Service (RHS) Office of the Multifamily Housing (MFH) is announcing the July 1, 2025, effective implementation date of the Housing Opportunity Through Modernization Act (HOTMA). To accommodate the required HOTMA changes, Rural Development (RD) published updates to Chapter 6 Handbook 2-3560 on June 13, 2025. All MFH tenant certifications effective on or after July 1, 2025, must comply with HOTMA requirements. However, between July 1, 2025, and January 1, 2026, RD will not penalize MFH owners for HOTMA-related tenant file errors during supervisory reviews.
HOTMA was signed into law on July 29, 2016, directing HUD to update income calculation rules from the Housing Act of 1937. To implement HOTMA changes, HUD published a Final Rule on February 14, 2023, which updated regulations found in 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.
For previously published Rural Development guidance related to HOTMA, please refer to the following:
- Unnumbered Letter published August 19, 2024, HOTMA Overview and projected timeline, with notable changes:
- On October 3, 2024, MFH announced a delay in the implementation of HOTMA from January 1, 2025, to July 1, 2025.
- RD has made a change in how unborn children are considered. Unborn children will be considered when determining household eligibility in regard to income. A pregnant women will be considered a two-person household and will qualify under the income limits of a two-person household. The household will not receive a $480 deduction until after the child is born. This aligns RD with other affordable housing programs like HUD and LIHTC.
- The updated Form RD 3560-8 Tenant Certification was published on December 6, 2024 (revised on April 18, 2025) and is available on the eForms The previous form has been re-numbered RD3560-8A to be used for tenant certifications effective prior to July 1, 2025.
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