Affordable Senior Housing News 2026May07

HUD Considers Postponing HOTMA Compliance, Updates Reexamination Guidance

During LeadingAge’s Leadership Summit in mid-April, leadership from the Department of Housing and Urban Development (HUD) shared plans for the Multifamily Housing portfolio, including next steps on implementing the Housing Opportunity Through Modernization Act (HOTMA). HOTMA is a major rule change for affordable housing communities that impacts who is eligible for housing assistance, how much rent they pay, and how housing providers comply with HUD rules. HUD has been rolling out HOTMA-related technical assistance and requirements but has been delayed in full implementation. The current compliance date for HOTMA is still January 1, 2027, but the agency is now saying there is a good chance they will again delay compliance. In the meantime, HUD’s Offices of Multifamily Housing and Public and Indian Housing issued a joint Notice revised standards for owners to use when conducting an interim reexamination of income and household composition, as required under Section 102 of HOTMA. The previous version of guidance, published on February 2, 2024, is now superseded; owners must follow the new guidance once they move forward with HOTMA implementation. Currently, most owners are still following pre-HOTMA rules in their housing communities. For questions, please contact your local HUD field office or email MFH_HOTMA@hud.gov.

LeadingAge Urges HUD to Reverse Course on Work Requirements, Time Limits

In comments to the Department of Housing and Urban Development’s (HUD) on its proposed rule, "Establishing Flexibility for Implementation of Work Requirements and Term Limits," LeadingAge on May 1, 2026, urged the agency to withdraw the rule, which would allow work requirements and time limits in affordable housing programs, citing the harm to older adults and the workforce that serves them, as well as the burden and cost on housing providers. Currently, there are generally no work hours requirements or time limits on HUD assisted housing. HUD’s proposal would allow certain housing providers participating in HUD’s Multifamily Housing programs, as well as Public Housing Authorities (PHAs), to establish work requirements of up to 40 hours per week as a condition of continued receipt of housing assistance. The proposal would also allow housing providers and PHAs to set time limits of as little as two years on HUD assistance. While most older adults would need to be exempt from the requirements, LeadingAge has identified scenarios where older adults would be impacted, including in mixed age households. The aging services workforce would also be directly impacted by housing instability under the current proposal. LeadingAge urged the agency to withdraw the rule, describing the harm on older adults and the workforce that serves them, as well as the burden and cost on housing providers. Read LeadingAge’s comments here.

HUD Revamps Service Coordinator Grant Process

Following a change in leadership overseeing Resident Service Coordinator (RSC) grants at the Department of Housing and Urban Development (HUD), the agency is now projecting full-year renewal funds for Calendar Year 2026 grants by early June. Service Coordinators assist older adults in accessing services and supports as they age in affordable housing communities. Despite the critical nature of Service Coordination work at affordable senior housing communities, the funds for annual grant renewals have historically been paid up to ten months late to housing providers. In conversations with LeadingAge, HUD’s Multifamily Housing leadership has confirmed that agency staff are overhauling the grant administration process, including stepping away from the contract with the software system previously used to administer the program and at least temporarily reverting back to a “direct to grantee” approach. In lieu of using a software platform for grants administration, HUD grant specialists across the country have instead begun reaching out to grantees directly to sign their Notices of Award (HUD Form 1044). Rather than submitting budgets for HUD to review, grantees will receive a budget based on the grantee’s previous calendar year budget, plus a 2.8% cost of living adjustment allotted to the salaries line item. LeadingAge has expressed the need for grantees to adjust their budgets higher in certain circumstances, and HUD is working on a solution. As of early May, several HUD Multifamily Housing regions have already begun to issue 40% of the grantees’ payments, with a second 60% payment distribution expected by June via a separate 1044 – far quicker than the agency’s previous time lime, which for years led to payments as late as September or October, despite the grant performance year (and grantee costs) beginning months earlier in January. LeadingAge applauds HUD for taking long-overdue steps to improve the program. More information is available here.



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