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Final Rule

Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining Changes

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This is a final rule published in the Federal Register by Housing and Urban Development Department. Final rules have completed the public comment process and establish legally binding requirements.

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Yes. This rule has been finalized. It has completed the notice-and-comment process required under the Administrative Procedure Act.

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Consult the full text of this document for specific applicability provisions. The affected parties depend on the regulatory scope defined within.

When does it take effect?

This document has been effective since June 6, 2024.

Why it matters: This final rule amends regulations in multiple CFR parts.

📋 Related Rulemaking

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Regulatory History — 3 documents in this rulemaking

  1. May 7, 2024 2024-08601 Final Rule
    Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher ...
  2. May 28, 2024 2024-11629 Final Rule
    Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher ...
  3. Dec 8, 2025 2025-22157 Final Rule
    Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher ...

Document Details

Document Number2024-08601
TypeFinal Rule
PublishedMay 7, 2024
Effective DateJun 6, 2024
RIN2577-AD06
Docket IDDocket No. FR-6092-F-03
Text FetchedYes

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Related Documents (by RIN/Docket)

Doc #TypeTitlePublished
2025-22157 Final Rule Housing Opportunity Through Modernizatio... Dec 8, 2025
2024-11629 Final Rule Housing Opportunity Through Modernizatio... May 28, 2024

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Full Document Text (130,520 words · ~653 min read)

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<RULE> DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT <CFR>24 CFR Parts 5, 8, 42, 50, 91, 92, 93, 247, 290, 882, 888, 891, 903, 908, 943, 945, 960, 972, 982, 983, 985, and 1000</CFR> <DEPDOC>[Docket No. FR-6092-F-03]</DEPDOC> <RIN>RIN 2577-AD06</RIN> <SUBJECT>Housing Opportunity Through Modernization Act of 2016—Housing Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining Changes</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Office of the Assistant Secretary for Public and Indian Housing, HUD. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> This final rule amends HUD's regulations to implement changes to the Housing Choice Voucher (HCV) tenant-based program and the Project-Based Voucher (PBV) program made by the Housing Opportunity Through Modernization Act of 2016 (HOTMA). HOTMA made several amendments to the HCV and PBV programs, including establishing a statutory definition of public housing agency (PHA)-owned housing, and amending several elements of both programs. In response to public comments, HUD has also included additional regulatory changes in this final rule that are intended to reduce the burden on public housing agencies, by either modifying requirements or simplifying and clarifying existing regulatory language. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> <E T="03">Effective date:</E> June 6, 2024, except the following sections, which are delayed indefinitely: instruction 69, § 982.451(c); instruction 98, § 983.154(g) and (h); instruction 100, § 983.157; and instruction 103, § 983.204(e). For more information, <E T="03">see</E> <E T="02">SUPPLEMENTARY INFORMATION</E> . <E T="03">Compliance dates:</E> Compliance with this rule is required no later than June 6, 2024, except for the following requirements: 1. <E T="03">90 days after effective date.</E> PHAs are not required to comply with changes to the requirements in the following sections until September 4, 2024: 24 CFR 982.301; 24 CFR 982.503; 24 CFR 982.625-641; 24 CFR 983.58(b); 24 CFR 983.252; 24 CFR 983.260; and 24 CFR 985.3. 2. <E T="03">180 days after effective date.</E> PHAs are not required to comply with the new requirements in the following section until December 3, 2024: 24 CFR 982.505. 3. <E T="03">One year after the effective date.</E> Several sections in this final rule require PHAs to update their Administrative Plans. PHAs are not required to update their Administrative Plans in compliance with these new requirements until June 6, 2025. Additionally, PHAs are not required to comply with the new requirements in the following sections until June 6, 2025: 24 CFR 983.57; 24 CFR 983.155(b); 24 CFR 983.251(e); and 24 CFR 983.262. </EFFDATE> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Ryan Jones, Director, Housing Voucher Management and Operations Division, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20011; telephone number 202-708-1112 (this is not a toll-free number); email <E T="03">HOTMAVoucher@hud.gov.</E> HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as from individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">I. Background</HD> <HD SOURCE="HD2">The HOTMA Statute</HD> On July 29, 2016, HOTMA was signed into law (Pub. L. 114-201, 130 Stat. 782). HOTMA makes numerous significant changes to statutes that govern HUD programs, including section 8 of the United States Housing Act of 1937 (1937 Act) (42 U.S.C. 1437f). <HD SOURCE="HD2">The Proposed Rule</HD> On October 8, 2020, HUD issued a proposed rule  <SU>1</SU> <FTREF/> to codify the HOTMA provisions that HUD implemented through the HOTMA Implementation Notices  <SU>2</SU> <FTREF/> in the <E T="04">Federal Register</E> . The proposed rule also sought to make changes to regulatory provisions unrelated to HOTMA to eliminate obsolete regulatory provisions and reduce the burden on public housing agencies, by either modifying requirements or simplifying and clarifying existing regulatory language. The proposed rule sought to codify the following HOTMA provisions: <FTNT> <SU>1</SU>  Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining Changes, 85 FR 63664 (Oct. 8, 2020). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See</E> 81 FR 73030 (Oct. 24, 2016); 82 FR 5458 (Jan. 18, 2017); 82 FR 32461 (Jul. 14, 2017); additional guidance was provided in Notices PIH 2017-18, PIH 2017-20, and PIH 2017-21. </FTNT> • <E T="03">Section 101:</E> In accordance with HOTMA section 101(a)(1), the proposed rule included a provision regarding non-life-threatening deficiencies and an alternative inspections requirement in HOTMA section 101(a)(1) at §§ 982.405, 982.406, and 983.103. The proposed rule also proposed to revise the definition of life-threatening deficiencies at § 982.401. Additionally, the proposed rule sought to include regulations to enforce Housing Quality Standards (HQS) in section 101(a)(3) at §§ 982.404 and 983.208. • <E T="03">Section 105:</E> In accordance with HOTMA section 105, the proposed rule sought to modify and align the definition of “PHA-owned unit” with HOTMA's revised definition of the term at §§ 982.4 and 983.3. • <E T="03">Section 106:</E> In alignment with HOTMA sections 106(a)(2) and 106(a)(3), the proposed rule proposed to include regulations on PBV program cap, PBV units not subject to project cap or program cap, and PBV project cap in §§ 983.6, 983.54, and 983.59. • <E T="03">Section 106:</E> Additionally, to conform to the changes in HOTMA section 106(a)(4), the proposed rule included regulations on entering into a PBV Housing Assistance Payments (HAP) contract for rehabilitated and newly constructed housing projects without an agreement to enter into HAP contract at § 983.154. The proposed rule sought to codify regulations surrounding PBV additional contract conditions and tenant-based assistance for families at termination/expiration without renewal of PBV HAP contract; PBV priority of assistance contracts; PBV adding units to HAP contract without competition; and PBV initial term of HAP contract and extension of term, in sections 106(a)(4) and 106(a)(5) throughout Part 983. The proposed rule sought to codify regulations that allow for rent adjustments using an operating cost adjustment factor (OCAF) in HOTMA section 106(a)(6) at § 983.302. • <E T="03">Section 106:</E> Further, to conform to the changes in HOTMA sections 106(a)(7) through (a)(9), the proposed rule sought to codify HOTMA's changes to PBV preference for voluntary services in section 106(a)(7) at § 983.251 and owner-maintained waiting lists in section 106(a)(7) at § 983.251. The proposed rule also sought to codify changes to environmental requirements for existing housing in section 106(a)(8) at § 983.56 and attaching PBVs to projects where the PHA has an ownership interest in section 106(a)(9) at § 983.51. The proposed rule also sought to implement the following HOTMA HCV provision: • <E T="03">Section 112:</E> In accordance with HOTMA section 112, the proposed rule proposed to include the manufactured home space rent calculation in section 112 at § 982.623, and to address the PHA option to make housing assistance payments directly to families instead of an owner for manufactured home space rentals in a proposed change to § 982.623. HUD also proposed changes that were not statutorily required, to better clarify or revise existing regulatory requirements, including changing the current requirements to refine the Davis-Bacon wage requirements and inserting references to obligations under Section 504 of the Rehabilitation Act of 1973 (Section 504) and the Americans with Disabilities Act (ADA). Through these changes, HUD sought to improve the administration of the program, simplify program rules, and reduce administrative burden and cost. For additional information, please see the proposed rule. <SU>3</SU> <FTREF/> <FTNT> <SU>3</SU>  85 FR 63664 (Oct. 8, 2020), <E T="03">https://www.federalregister.gov/documents/2020/10/08/2020-21400/housing-opportunity-through-modernization-act-of-2016-housing-choice-voucher-hcv-and-project-based.</E> </FTNT> HUD received 44 comments on the proposed rule, which were considered and are discussed in Section IV of this preamble. Additional details about the proposed changes may be found in the “Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining Changes” proposed rule at 85 FR 63664 (Oct. 8, 2020). <HD SOURCE="HD2">The NSPIRE Rulemaking</HD> On May 11, 2023, after the proposed rule was published, HUD published the “Economic Growth Regulatory Relief and Consumer Protection Act: Implementation of National Standards for the Physical Inspection of Real Estate (NSPIRE) final rulemaking (“the NSPIRE final rule”). <SU>4</SU> <FTREF/> The NSPIRE final rule established a new approach to defining and assessing housing quality by consolidating and modernizing inspection standards for public housing, multifamily housing, Community Planning and Development programs, and the HCV and PBV programs. Several of the changes made in this final rule from the proposed rule are designed to incorporate or be consistent with the NSPIRE final rule, and some additional changes are made to build upon changes made by the NSPIRE final rule. <FTNT> <SU>4</SU>  See 88 FR 30442. </FTNT> <HD ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 858k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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