August 27, 2024

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HUD Issues 2025 HOTMA Adjustment Factor Amounts — Get Ready!

On July 31, 2024, HUD issued new adjustment factor amounts that become effective on January 1 of each year. As such, the new adjustment amounts will be effective January 1, 2025. Owners of OHFA-funded LIHTC, HOME, HOME-ARP, NHTF, and 811 projects must use the HUD-published values when determining income, net family assets, and adjusted income (if applicable) for income certifications. 

The following tables summarize the new adjustment rates:

Adjustment factors applicable to HUD-subsidized programs

For further information on the new adjustment factors, reference: 

• HUD’s 2025 HOTMA adjustment factors webpage may be found here.
• A PDF of the adjustment factors can be downloaded from here.

HUD’s Passbook Rate Changes from 0.40% to 0.45% Effective January 1, 2025.

In addition to the inflationary adjustments, HUD will also annually publish a passbook rate to become effective on January 1 of each year. The passbook rate is based on the Federal Deposit Insurance Corporation (FDIC) National Deposit Rate for savings accounts, which is an average of national savings rates published monthly. The new passbook rate of 0.45% will go into effect on January 1, 2025. OHFA’s TIC will continue to reflect the 0.40% passbook rate until January 1, 2025. On and after this date, OHFA’s TIC will reflect the new passbook rate of 0.45%.

HUD Extends NSPIRE Until October 1, 2025!

On July 5, 2024, HUD extended the implementation date for NSPIRE to October 1, 2025. Further information may be found here. The extension applies for Housing Choice Voucher (HCV) and Project Based Voucher (PBV) programs, HOME, Housing Trust Fund (HTF), Housing Opportunities for Persons With AIDS (HOPWA), Emergency Solution Grants (ESG), and Continuum of Care (COC) programs (CPD programs). 

HUD’s extension allows industry partners additional time to implement the NSPIRE standards and train staff. 

Importantly, even with HUD’s extension, OHFA plans to implement NSPIRE standards by the end of calendar year 2024 for all OHFA-funded projects including LIHTC.  

HOTMA Implementation Reminder

Several recent file audits have found management companies who have implemented HOTMA are not using OHFA’s clarification record in the tenant files. Owners/management agents are reminded if they implement some of the HOTMA rules (i.e. hybrid approach) regarding income and asset calculations (Section 102 of HOTMA) prior to January 1, 2025, an OHFA clarification record must be placed in the tenant file explaining which parts of the HOTMA rule were used to certify the tenant. If an owner/management agent implements all of the HOTMA rules prior to January 1, 2025, a clarification record must be placed in the tenant file outlining the tenant certification was conducted using HOTMA rules. 

Carbon Monoxide and Smoke Alarm Requirements

Even though NSPIRE implementation has been extended to October 1, 2025, OHFA reminds industry partners the statutory requirements for installing carbon monoxide (CO) devices and smoke alarms still apply as implemented under the Consolidated Appropriations Act, 2021 and 2023. All smoke detectors must be hardwired OR the sealed 10-year battery type by December 29, 2024. Further information may be found here. 

Remember CO detectors are also required for both new and existing buildings. Refer to the code for reference. For a full analysis of all CO-related Ohio Fire Code (OFC) provisions, reference Carbon Monoxide Detectors (Now Required by the OFC)

and Carbon Monoxide Detectors in New and Existing Buildings.

OHFA recommends owners/management agents begin installing NSPIRE compliant smoke and CO detectors now to ensure compliance by December 29, 2024. It is also recommended that a tracking log be kept for each unit as to when compliant smoke/CO detectors are installed. 

New OHFA Compliance Staff

OHFA is pleased to welcome Kathy Carroll as a new compliance manager to the compliance team: 

Kathy recently worked for FPI Management where she was a Compliance Area Supervisor. 

Stay Informed! 

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