Key takeaways from IREM’s Affordable Housing Advisory Council dialogue with HUD

The IREM Affordable Housing Advisory Council (AHAC) recently met with leaders from HUD’s Office of Multifamily Housing and Public and Indian Housing (PIH) to discuss operational challenges, regulatory timelines, and opportunities to reduce administrative burden across HUD programs.

These conversations reflect ongoing transition within HUD and highlight several issues that directly impact day-to-day operations for building owners and property managers.

Below are the key takeaways and what they mean for you.

1. HUD staffing constraints continue to impact operations
2. CARES Act 30‑day nonpayment notice: Enforcement is ending, but the statute still exists
3. HOTMA timeline hinges on form approval - training is crucial
4. The opportunity to reduce administrative burden
5. NSPIRE implementation remains inconsistent
6. Financial health of RAD and voucher program
7. Proposed rule on citizenship and eligible status still under review 

HUD staffing constraints continue to impact operations

HUD acknowledged significant staffing losses due to early retirements and resignations and confirmed the agency is prioritizing external-facing work such as closings, contract actions, and compliance, while reducing internal administrative tasks.

What this means for IREM members:

While service delivery remains a priority, resource constraints may still lead to delays or inconsistencies across regions.

Member action:

• Proactively escalate time-sensitive issues, especially those tied to closings or compliance deadlines.
• Engage regional and asset management leadership early. HUD emphasized these teams remain accessible and responsive.
• Maintain clear documentation of delays that could impact operations.
  

CARES Act 30‑day nonpayment notice: Enforcement is ending, but the statute still exists

HUD confirmed it has moved forward with a final rule rescinding enforcement of the CARES Act’s 30‑day notice requirement for nonpayment of rent. Once finalized, HUD will instruct Performance-Based Contract Administrators (PBCAs) that the requirement is no longer enforced on HUD’s behalf. However, HUD was clear that the underlying CARES Act provision remains in federal law.

What this means for members:
There is reduced federal enforcement risk, but legal ambiguity remains, particularly for properties with layered financing or overlapping program requirements.

Member action:

• Monitor HUD guidance and updates from IREM Government Affairs.
• Consult legal counsel when revising nonpayment policies.
• Exercise caution in jurisdictions or properties where multiple rules may apply.
  

HOTMA timeline hinges on form approval - training is crucial

HUD reaffirmed a preliminary target of January 1, 2027, for Housing Opportunity Through Modernization Act (HOTMA) compliance, but noted that timing is dependent on OMB approval and release of final forms. Delays remain possible.

Council members also raised concerns about inconsistent interpretation of interim recertification requirements and the need for clearer, nationwide training.

What this means for members:
HOTMA is coming, but timelines remain fluid and successful implementation will depend on clear guidance and training.

Member action:

• Begin planning for HOTMA training in 2026.
• Identify internal process gaps early, especially around interim recertifications.
• Share implementation challenges and questions with IREM so they can be elevated directly to HUD.
  

The opportunity to reduce administrative burden

HUD acknowledged ongoing industry concerns about complex application processes and duplicative documentation requirements, particularly for properties with multiple funding sources. The agency expressed openness to streamlining efforts, including technology-driven solutions.

What this means for members:
HUD is actively seeking ideas to reduce administrative burden without compromising compliance.

Member action:

• Document specific pain points in applications, recertifications, and file retention.
• Identify duplicative requirements across programs (HUD, LIHTC, RD, etc.).
• Share practical, solution-oriented recommendations with IREM.
  

NSPIRE implementation remains inconsistent

HUD confirmed ongoing delays and uncertainty related to National Standards for the Physical Inspection of Real Estate (NSPIRE) implementation for certain programs, including HOME and HTF. Broader questions around inspection timelines and alignment across programs remain unresolved.

What this means for members:
Operators may continue to face varying inspection standards depending on program type and funding source.

Member action:

• Monitor Federal Register notices and agency guidance.
• Coordinate with state and local housing agencies for program-specific expectations.
• Plan for continued variability in inspection processes.
  

Financial health of RAD and voucher program

HUD provided updates on Rental Assistance Demonstration (RAD) conversions and highlighted ongoing financial challenges within the Housing Choice Voucher program. Rising per-unit costs continue to outpace funding projections, contributing to shortfalls and increased pressure on Public Housing Agencies (PHAs).

What this means for members:
Financial constraints at the PHA level may influence leasing decisions, payment standards, and overall program stability.

Member action:

• Stay engaged with local PHAs on voucher utilization and policy changes.
• Monitor guidance related to leasing and payment standards.
• Incorporate financial risk considerations into portfolio planning.

Proposed rule on citizenship and eligible status still under review

HUD confirmed that it’s reviewing public comments on the proposed rule related to citizenship and eligibility for federal rental assistance and is not yet working on implementation.

The agency noted the rule would affect a relatively small percentage of households overall, but acknowledged that the practical impact could still be significant.

What this means for members:
No immediate operational changes are required, but potential impacts, particularly for mixed-status households, could be meaningful.

Member action:

• Monitor rulemaking progress and IREM updates.
• Avoid making policy changes until final guidance is issued.
• Prepare for potential interim certification and occupancy impacts if the rule advances.

Bottom line for members:
HUD is navigating a period of transition marked by staffing constraints, evolving regulations, and implementation challenges across key programs. At the same time, the agency is actively seeking industry feedback, creating an important opportunity for IREM members to shape policy and operational improvements.

What you should do now:

• Stay informed and engaged with IREM Government Affairs updates.
• Prepare for upcoming regulatory changes, particularly HOTMA.
• Elevate operational challenges and solutions through IREM.
• Engage early and often with HUD field leadership on critical issues.