HUD Pushes Housing Rules Deadline to 2027 for Smoother Prep
Published Date: 12/30/2025
Rule
Summary
HUD is giving more time for housing programs to follow new rules about income and assets by extending the deadline to January 1, 2027. This affects programs like HOME, HOPWA, CDBG, and others that help communities and people in need. The extra time helps everyone get ready and update their systems without rushing or losing funding.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
HOTMA Compliance Date Delayed
HUD is pushing back the compliance deadline for the Housing Opportunity Through Modernization Act (HOTMA) changes for CPD programs to January 1, 2027. This extension applies to HOME, HOME-American Rescue Plan (HOME-ARP), Housing Trust Fund (HTF), HOPWA, CDBG, ESG, Continuum of Care (CoC), and CPD competitive programs so grantees can finish system updates and prepare.
Optional Early Use of Income Safe Harbors
Until January 1, 2027, HUD allows Community Planning and Development (CPD) grantees to choose to implement the income safe harbors in 24 CFR 5.609(c)(3) before the full HOTMA compliance date. Grantees may adopt these safe harbors early to simplify income determinations for program participants.
HOME PJs May Use Expanded Safe Harbors
HUD permits HOME participating jurisdictions (PJs) to implement all expanded income safe harbors and flexibilities described in 24 CFR 92.203 from the 2025 HOME final rule without adopting other HOTMA provisions. The 2025 HOME rule expanded accepted forms of public assistance and reduced income determination frequency in some TBRA programs.
Must Use Latest Income Exclusions
HUD reminds CPD grantees and project owners to use the Federally Mandated Exclusions from Income published in FR-6410-N-01 on January 31, 2024 when making income determinations. Grantees should apply those exclusions even if they have not yet implemented the HOTMA final rule.
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