The U.S. Department of Housing and Urban Development (HUD) has issued updated guidance (Notice H 2026-05) related to the Housing Opportunity Through Modernization Act (HOTMA) Sections 102 and 104. This update revises the rules that Multifamily Housing (MFH) Owners must follow when determining whether to complete an interim reexamination of a household’s income or composition.

What’s Changing:

• HUD once again requires MFH Owners to conduct an interim reexamination whenever a household adds or removes a member. This includes family members, foster adults, foster children, and live‑in aides.
• This requirement applies even if the change does not affect the household’s income.
• If a MFH Owner has a written policy stating that income‑related interim reexaminations are not completed within the last 3 months of the recertification cycle, they may also defer household‑composition changes during that same period until the next annual reexamination.
• When completing an interim reexamination, MFH Owners must not count increases in earned income unless allowed under the revised HUD guidance.

HUD has republished Notice H 2023‑10 with the revised Attachment I as Revision 3 for easier reference. Questions from MFH Owners concerning this notice should be directed to their local field office or emailed to MFH_HOTMA@hud.gov