The CA Quarterly Review (Fall 2026)

 NEWS & INFORMATION QUARTERLY FOR OWNERS & AGENTS OF THE PERFORMANCE BASED CONTRACT ADMINISTRATOR FOR NORTHERN CALIFORNIA

Falling into focus—welcome to our Fall Quarterly Newsletter

 

 

HOTMA Resource Reminder

Full compliance with the HOTMA final rule is mandatory effective January 1, 2027. HUD provided implementation guidance in Notice H 2023-10 (Revision 3) to help Owners prepare and subsequently implement the many program changes brought about by the Housing Opportunity Through Modernization Act of 2016 (HOTMA) sections 102 and 104 and detailed in the Final Rule published in the Federal Register on February 14, 2023.

HOTMA Webpage
HUD’s HOTMA Webpage provides implementation guidance:

 

Guidance for Implementing HOTMA Provisions Prior to TRACS 203A Update
An owner who implements HOTMA prior to the release of TRACS version 203A must utilize the “rent override” function in TRACS if a family’s HOTMA‑calculated tenant rent differs from their pre‑HOTMA calculated tenant rent. An owner employing the rent override function can follow the directions here.

Additionally, owners who implement HOTMA prior to the release of TRACS version 203A must annotate tenant files according to the change that was implemented following the directions here.

HUD Publishes FY2027 Fair Market Rents (FMR) and Small Area Fair Market Rents (SAFMR)

Click here for FY27 FMR

Click here for FY27 SAFMR

The FY27 FMRs and SAFMRs are effective October 1, 2026.

HUD Publishes 2027 Annual Inflationary Adjustments and Passbook Rate

NOTE: These values are used only if the OA has implemented HOTMA provisions and overrides TRACS.

HUD’s Offices of Multifamily Housing Programs, Public and Indian Housing, and Community Planning and Development have published the 2027 Annual Inflationary Adjustments and Passbook Rate, effective January 1, 2027.

These HUD‑published values are used to determine income, net family assets, and adjusted income during income examinations for programs subject to the Housing Opportunity Through Modernization Act of 2016 (HOTMA) rules and regulations, consistent with the HOTMA Final Rule and Attachment H of the HOTMA Implementation Guidance.

For questions regarding the Inflationary Adjustments, please contact mfh_hotma@hud.gov.

Be Proactive in Your Pest Control

Taking proactive steps in pest control helps maintain a comfortable, pest‑free environment for residents and reduces the need for major treatments throughout the year. As seasonal changes approach, it’s a great time to put a few preventative measures in place:

• Exterior of the Property
  Maintaining the outside of your building is essential in keeping pests from finding their way indoors. Seal any cracks or openings, clear away debris such as leaves, and check that all doors, windows, and screens are properly fitted and sealed.
• Yard Maintenance
  Regular upkeep of your grounds can significantly support your pest‑control efforts. Keeping grass trimmed, vegetation neat, and eliminating any standing water can greatly reduce the likelihood of pests settling in.
• Indoor Cleanliness
  If you’re not already doing so, consider implementing monthly housekeeping or pest inspections within units. A clean indoor environment is one of the most effective ways to prevent pests—especially as temperatures begin to drop. Regular inspections also allow for quick action if pests are detected, helping prevent issues from spreading.
• Tenant Education and Communication
  Educating tenants and keeping communication open are key components of effective pest control. Make sure residents understand preventive best practices and know how to report any signs of pests promptly. Clear communication supports faster response times and better overall outcomes.

By focusing on early detection, prevention, and swift resolution, you can ensure a safe, sanitary, and comfortable living environment for everyone. A proactive approach truly makes all the difference!

HOTMA Interim Reexamination Reminder

As updated in Notice H 2026-05 and related to the Housing Opportunity Through Modernization Act (HOTMA) Sections 102 and 104 (Notice H 2023-10 Revision 3 Attachment I), HUD has outlined specific expectations for Multifamily Housing (MFH) Owners when determining whether to complete an interim reexamination of a household’s income or composition.

HOTMA clarifies when interim reexaminations must be conducted, formalizes how they should be processed and applied, and requires PHAs/MFH Owners to use the updated income definition for streamlined income determinations.

When a Household Adds or Removes Household Members

• Owners must conduct interim reexaminations when a household adds or removes household members, including family members, foster adults, foster children, and live‑in aides, whether the change results in a decrease, increase, or no change in the family’s annual adjusted income –
  • Owners with a written policy to not conduct interim reexaminations for increases in annual adjusted income during the last 3 months of a recertification period are not required to conduct interim reexaminations due to the addition or removal of a household member in that period; instead, they will report such change at the next annual reexamination;
  • When conducting an interim reexamination for an increase due to the addition or removal of a household member, the Owner must not consider increases in earned income, when estimating or calculating whether the family’s adjusted income has increased, unless the family has previously received an interim reduction during the same reexamination cycle.

Decreases in Annual Adjusted Income

• Owners may decline to conduct an interim reexamination if the Owner estimates that the family’s annual adjusted income will decrease by an amount that is less than 10 percent of the family’s annual adjusted income (apart from circumstances in which household members are added or removed). Generally, Owners have the discretion to set a lower percentage threshold, unless specified by HUD via notice, in which case the lower percentage threshold must be included in the Owner’s Tenant Selection Plan.
• Upon the request of the family, Owners must conduct an interim reexamination when a family’s annual adjusted income has changed by an amount that the Owner estimates will result in a decrease of 10 percent or more in annual adjusted income or a lower threshold set by HUD or by the Owner in their Tenant Selection Plan.
• In addition to decreases in family income, increases in a family’s deductions may produce a sufficient decrease in annual adjusted income to require an interim reexamination.

Increases in Annual Adjusted Income

• Owners must conduct an interim reexamination when the Owner becomes aware that the family’s adjusted income has changed by an amount that the Owner estimates will result in an increase of 10 percent or more in annual adjusted income or another amount established by HUD through a notice, with the following exceptions:
  • Owners may not consider any increases in earned income when estimating or calculating whether the family’s annual adjusted income has increased, unless the family has previously received an interim reduction during the same reexamination cycle; and
  • Owners may choose not to conduct an interim reexamination during the last three months of a certification period if a family reports an increase in income within three months of their next annual reexamination effective date.
• Owners must not process interim reexaminations for income increases that result in less than a 10‑percent increase in annual adjusted income (with the exception of circumstances in which household members are added or removed). A series of smaller reported increases in adjusted income may cumulatively meet or exceed the 10‑percent increase threshold, at which point the Owner must conduct an interim reexamination.
• If a family previously received an interim reexamination that resulted in a decrease to their annual adjusted income during the same annual cycle, an Owner has the discretion to choose whether or not to conduct an interim for subsequent increases in earned income of 10 percent or more during the same annual cycle. Owners must identify in their Tenant Selection Plans if they perform interim reexaminations for earned income increases subsequent to an interim decrease –
  • If an Owner has a policy of considering increases in earned income after an interim is conducted for a decrease in income, and the family’s annual adjusted income has increased by 10 percent or more, the Owner must conduct an interim reexamination in accordance with their local policies. Conversely, Owners that adopt local policies to never consider increases in earned income must not perform an interim reexamination under these circumstances.

HUD recommends as a best practice that Owners maintain documentation of all reported changes in the family’s file, including those that did not result in an interim reexamination. HUD also recommends reviewing the applicable regulations to ensure that any program‑specific reexamination requirements are followed.

HUD Releases Updated VAWA Forms

HUD’s Violence Against Women Act (VAWA) forms help ensure applicants and residents are informed of their rights and that housing providers follow consistent, compliant processes—especially when VAWA protections or emergency transfers are involved.

HUD has released updated VAWA forms, now available on the HUDCLIPS Forms webpage. These updates were formally announced to industry partners on April 17, 2026, through a bulletin from HUD’s Office of Housing. The announcement confirms that the revised forms replace expired versions and are intended for use by Contract Administrators (CAs) and HUD Multifamily Housing staff, including during Management and Occupancy Reviews (MORs).

To support compliant implementation of the updated forms, remember to maintain strict confidentiality when handling any VAWA‑related information and to provide the applicable notices and forms at the appropriate points in the process.

For questions about the updated forms, please contact your local HUD Field Office contact, and copy HUD’s Office on Gender‑Based Violence (OGBV) at ogbv@hud.gov.

Reminder: Timely Submission of HAP Vouchers

As part of your responsibilities in managing a Section 8 Multifamily Housing property, it’s essential to follow HUD’s monthly HAP Voucher submission requirements. To help ensure smooth and timely processing each month, the PBCA offers the following recommendations:

Submit by the 10th of Each Month
HUD requires all vouchers to be submitted by the 10th. Many vouchers need draft reconciliation before final approval, and delays in submitting can extend processing time. Please submit your vouchers promptly to avoid unnecessary holdups.

Review for Accuracy Before Transmission
Carefully audit your monthly HAP voucher and all related certifications before sending them through TRACS. Accurate billing helps prevent errors and reduces the likelihood of reconciliation delays.

Verify Tenant Eligibility and Payments
Owners are responsible for ensuring that each tenant’s eligibility and assistance payment is calculated according to HUD regulations, administrative procedures, and the terms of the HAP Contract.

Respond Quickly to Draft Reconciliation Requests
If you receive a draft reconciliation report, please submit any requested corrections within three business days to keep the process moving.

Stay in Communication with Your Contract Specialist
If you encounter processing issues or have questions related to your voucher, reach out to your Contract Specialist early—and as often as needed. Their goal is to approve assistance payments for each occupied subsidized unit whenever possible. Providing proactive communication and submitting all required certifications or repayment agreements helps support timely voucher approval.

Reminder to Register Unique Entity Identifier Annually

Per HUD NOTICE H 2023‑01 all Section 8 Project‑Based Rental Assistance (PBRA) Programs must be registered in SAM.gov and always maintain an active SAM registration.

Entity registrations expire annually and therefore require annual renewal. Expiration dates are listed in entity records at sam.gov.

For the annual renewal of existing UEIs, the General Services Administration, which maintains SAM.gov, recommends that an entity begin the registration process at least 45 days prior to the UEI’s expiration date.

It is vital to maintain active SAM registration to avoid HAP payment suspension or delays in Contract Renewals and Rent Adjustments processing. To track your registration status visit the SAM.gov Status Tracker.

The Importance of a Thorough Property Walkthrough

Property walkthroughs play a vital role in understanding how well a community is maintained and how effectively daily operations are being managed. From security practices to energy efficiency, many key insights can be gathered simply by taking a careful look around the property.

During an On‑site Review, the walkthrough allows the Reviewer to observe the overall condition of the community firsthand. It also provides Owners and Management Agents a valuable opportunity to highlight their work, demonstrate operational strengths, and discuss any ongoing or upcoming improvements.

A complete property walkthrough is essential for ensuring an accurate and fair evaluation. To meet review requirements, the following areas must be included:

• Two vacant units (if available)
• Maintenance area
• Management office
• Hallways, elevators, and stairwells
• All building entrances and exits, including fire exits
• Interior and exterior common areas
• Building exteriors
• Garbage and recycling areas
• Parking lot
• Laundry room (if applicable)
• Overall property grounds

A well‑executed walkthrough ensures the Reviewer gains a clear understanding of how the property is being managed, and it helps ensure the final MOR Report accurately reflects the community’s true condition. It’s also a great chance for the Owner/Agent—and even maintenance team members—to share context, highlight improvements, and celebrate the hard work that goes into keeping the property running smoothly.

Partner Spotlight - LCS - Jessica Berry

 

Explain your position with CGI?      

I serve as a Remote Local Contract Specialist (LCS) supporting Northern California. In this role, I conduct Management & Occupancy Reviews (MORs) for Section 8 properties to ensure they meet HUD’s standards for safety, maintenance, and tenant eligibility.

How long have you been with CGI?  

I joined CGI in May of this year.

What was your background prior to joining CGI?

Before CGI, I worked in foster care as a Compliance and Special Projects Office Manager. I supported multiple locations of a foster family agency, overseeing administrative operations, regulatory compliance, and a variety of special projects.

What are your hobbies?  Things you enjoy doing after you leave the office?

I love going to rock concerts with my son, road trips, reading, and baking sourdough bread.

What brings you the most satisfaction in your day-to-day tasks?  

I get a lot of joy from checking things off my to‑do list! 

What is the best piece of advice that you could provide to an owner/agent?  

Document, document, document! Thorough documentation is your best friend when it comes to compliance. Tackling small issues early, keeping communication clear, and maintaining organized records helps prevent minor concerns from becoming major challenges.

                                                                                           

Contact Center Poster/Information

ALL RESIDENTS OF H.U.D. SUBSIDIZED PROPERTIES   

(Click here for a printable .pdf English version)   (Click here for a printable .pdf Spanish version)

California Affordable Housing Initiatives (CAHI) is the HUD Contract Administrator and is responsible for responding to resident concerns. CAHI Call Center has a team of Customer Relation Specialist (CRS) that will receive, investigate and document concerns such as, but not limited to the following:

• Questions or concerns regarding work order follow-up.
• Questions regarding the calculation of your rent.
• Address health & safety and HUD Handbook 4350.3 concerns.

Call Center Purpose:

• Call Center aids in ensuring HUDs mission of providing Decent, Safe and Sanitary Housing.
• Serve as a neutral third party to residents, owners and the public.
• Assist with clarifying HUD Occupancy Handbook 4350.3 requirements.

Call Center Contact Information and Business Hours:

• Hours of Operation: Monday-Friday, 8:00am to 5:00pm
• Contact Numbers: 800-982-5221 fax: 614-985-1502 (leave message after hours)
• Written Summaries: 107 South High Street, 2nd Floor, Columbus, Ohio 43215
• Email: PBCAContactCenter@cgifederal.com
• Website: www.cahi-oakland.org

àTo access the CAHI website scan this QR code with your smartphone    

Concerns can be submitted by the following:

• Phone
• Fax
• Mail
• Email
• Voicemail
• FOIA- Freedom of Information Act request must be submitted directly to HUD

Required Information to open an inquiry:

• Property name
• Caller’s name (anonymous calls accepted)
• Caller’s telephone number with area code
• Caller’s address including apartment number
• A brief, detailed description of the caller’s concern(s)

 

EQUAL HOUSING OPPORTUNITY
1550 Parkside Drive • Suite 150 • Walnut Creek, CA • 94596
Tel: 800-982-5221 • English TTY: 800-735-2929 • Spanish TTY: 800-855-3000 • PBCA@cahi-oakland.org

 

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