Updated October 2025

Disclaimer:

  • MRI is not providing a comprehensive list of HUD/compliance changes.
  • Any compliance changes noted herein may not apply to all agencies, programs or organizations. 
  • News is changing daily so please keep an eye out on the HUD website for updates.

Public Housing Compliance Updates

NSPIRE (National Standards for Physical Inspection of Real Estate) — NEW!
HUD PIH Notice 2025-19 – EHV to HCV Transition Guidance

HUD has issued Notice 2025-19 to guide Public Housing Agencies (PHAs) in transitioning families from the Emergency Housing Voucher (EHV) program into the regular Housing Choice Voucher (HCV) program. This comes as HUD has announced it will no longer provide renewal funding for EHVs beyond September 30, 2025. The notice outlines how PHAs can ensure families continue receiving housing assistance without disruption.

Key points include:

  • EHV funding will end on September 30, 2025 — no additional renewal funding will be provided by HUD.
  • PHAs can use regular HCV funding to continue assistance for current EHV families.
  • Families may remain in their current units without needing a new HAP contract or tenancy addendum.
  • PHAs are encouraged to adjust waiting list preferences and screening policies to prioritize these transitions.
  • EHV service fees must be spent within 60 days of the notice date (by August 19, 2025).
  • All related reporting must be completed within 120 days (by October 18, 2025).
HOTMA (Housing Opportunities through Modernization Act)
  • Certain provisions of HOTMA, specifically Sections 102 and 104, had a compliance date of July 1, 2025. However, many provisions are still on hold due to existing PIC errors and the inability to make changes to IMS PIC.
  • A blog post from Nan McKay provides a clear outline of what must be done, what may be done, and what is on hold. The blog post is particularly useful for understanding the current status of HOTMA provisions and what actions need to be taken by agencies. Click here to access other resources from Nan McKay's HOTMA Resource Page.
    • What must be done: These are the provisions that are mandatory and have a compliance date.
    • What may be done: These are optional provisions that agencies can choose to implement.
    • What is on hold: These are provisions that cannot be implemented due to existing PIC errors and the inability to make changes to IMS PIC.
  • This FAQ document from HUD outlines the HOMTA requirements in further detail.
HIP (Housing Information Portal)
  • Experiencing delays and issues with the HIP test site, including performance issues and the resignation of key team members.
    • Resignation of Key Team Members: At the beginning of January, it was announced that some high-level team members specifically working on HIP had resigned. This has put vendor meetings on hold and created uncertainty about the project's future.
    • Performance Issues: The HIP test site was experiencing significant performance issues. The validation process for submissions to HIP was taking about 30 seconds per 50058 form, which was not feasible given the volume of submissions (about seven million 50058s on PIC daily). This led to the decision to push the test site availability to at least April.
    • Executive Order for Gender DEI Changes: Due to an executive order for gender/DEI changes, the 2024 HUD 50058 form and the technical reference guide were pulled from the HUD site in late January. This means that software developers cannot write the necessary changes to make the new form submit to HIP because the technical reference guide, which serves as a map for data submission, is unavailable.
    • Unavailability of the Test Site: The test site for HIP is still unavailable, and vendor meetings have been on hold for about a month. Without key members who were advocates for the agencies and vendors, the status of the HIP team is uncertain.
  • These issues have created a state of flux for the HIP project, and it is unclear when the test site will be available or when the project will move forward.
Public Housing Product Updates
  • All Public Housing software packages are up to date to meet the 2024-38 PIH notice.
  • PHA Pro, Lindsay Software, Tenmast: These software packages did not require changes to support PIH Notice 2024-38. They are ready to implement the minor policy changes outlined in the notice, which must be implemented by July 1, 2025.
  • HIP Readiness: All software packages are prepared to test with the original 50058 form, but the 2024 version is on hold due to the lack of a final technical reference guide.
  • HOTMA Changes: The implementation of HOTMA changes is on hold until the new version of the 2024 form and HIP are ready.

Affordable Housing Compliance Updates

HOTMA (Housing Opportunities through Modernization Act)
  • Implementation of Sections 102 and 104 of HOTMA have a compliance date of January 1, 2026; however, many provisions are on hold due to existing PIC errors and the inability to make changes to IMS PIC.
  • The provisions available to implement in PIH Notice 2024-38 are those that have no real impact on the 50058 rent calculations. These are more agency policy changes.
TRACS 203A
  • The specification guide for TRACS 203A was rescinded in October, with new dates set for January, March, and April. HUD has indicated that full compliance is expected by January 2026.
  • Compliance Timeline: Normally, HUD provides six months' notice before requiring full compliance. However, based on conversations with HUD, it is expected that the compliance date may be changed.
  • Program Enhancements: We have made 65 program enhancements, equating to almost a year's worth of work, to ensure compliance with TRACS 203A.
  • Gender/DEI Policies: There are questions about whether the new gender options will need to be removed due to DEI policies.
    • Current DEI Administration Protocol: For example, the 50059 field 44 now includes two more variables: "owner agent didn't ask for the gender" and "non-binary".
  • Waiting for Specifications: Waiting for updated forms, specifications, and OMB approval before finalizing the rollout plan and providing training.
  • We are prepared to implement the changes quickly and efficiently once the specifications are released.
  • 30 Day Notice of Proposed Information Collection: HUD is seeking approval from the Office of Management and Budget (OMB) for information collection. In accordance with the Paperwork Reduction Act, HUD is requesting comments from all interested parties on the proposed collection of information. The purpose of this notice is to allow for 30 days of public comment. Forms include 50059, 27061-H (Race and Ethnic Data Reporting), and HUD-91067 (Lease Addendum). The link can be found here.
About the HUD Website
  • Removal of Previous Specifications: HUD has removed all previous specifications from their website. This means that even if they wanted to refer back to the previous specifications for TRACS 203A and HOTMA, they cannot do so because the pages are no longer available.
  • Waiting for Updated Forms and Specifications: We are waiting for updated forms, specifications, and OMB approval before they can finalize the rollout plan and provide training. This delay is causing uncertainty and hindering progress.
Affordable Housing Product Updates
  • Compliance with Regulatory Guidelines: USDA has set an implementation date of 7/1/2025 and the Affordable Housing product has been updated to accommodate the changes to the Rural Development program relating to the HOTMA updates.
  • Tax Credit Forms: Many states have already adopted changes to LIHTC rules related to the HOTMA updates. As such, Tenant Income Certification (TIC) forms have been updated. We have prioritized these forms and are working to get them implemented into our system. To date, we have implemented eight new TIC forms to service our existing clients.
  • Parity Between Bostonpost and MRI Affordable Housing: There is a focus on ensuring parity between Bostonpost and MRI Affordable Housing. This means that whatever can be done in Bostonpost should also be possible in MRI Affordable Housing, with the goal of making the systems better, faster, and more efficient.
  • Enhancing the Product: Product enhancements are driven by client feedback. At Ascend, client responses were collected and applied to the roadmap for future enhancements.
  • Program Enhancements: We have made more than 70 program enhancements, equating to almost a year's worth of work. This includes more than 1,750 man-hours of programming to ensure compliance and improve the product.

Federal Funding Updates

August 2025 Federal Funding Update

As of July 1, 2025, major federal legislative moves are reshaping the affordable and public housing landscape. This month’s key updates focus on the Senate’s finish line for the “One Big, Beautiful Bill” (OBBB) and the FY 2026 federal budget outlook.

"One Big, Beautiful Bill" 

The OBBB was signed into law on July 4, 2025.

Housing Takeaway: The package includes the most significant affordable housing tax-credit expansion in decades, potentially enabling half a million to over a million new units.

Summary of Senate-Passed LIHTC Expansion Provisions
  • Permanent Increase in Housing Tax Credits: Makes a 50% increase in LIHTC funding permanent for states (instead of just for two years). States get a lot more money every year to fund affordable housing projects. This means more apartments can get built or preserved, especially where demand is highest.
  • Lower Requirement for Bond Financing (for 4% Credits): Cuts in half the amount of bond funding a project must use to qualify for the 4% housing credit—from 50% down to 25%. It’s now much easier for housing developers to qualify for this important funding tool. That opens the door for more rehab and preservation projects, not just new builds.
  • Extra Incentives for the Most Underserved Areas: Gives a 50% funding boost for developments that house extremely low-income families. Gives a 30% boost to projects on tribal lands or in Native communities. These areas often get overlooked because rents are so low, the math doesn’t work for developers. These boosts make those projects financially viable, helping ensure the most vulnerable get safe, affordable homes.
  • Built-In Protections for Residents: Strengthens protections for renters—especially veterans, survivors of domestic violence, and others at risk of discrimination or eviction. These protections make sure people living in LIHTC housing can stay safe, stable, and housed, even in tough personal circumstances. It also ensures housing providers follow fair housing rules.
  • Projected National Impact Experts estimate the expanded LIHTC could fund 1.22 million new affordable homes over the next 10 years (2026–2035). If you live in or near a city with rising rents, this could bring more affordable apartments online faster — and help reduce housing instability and homelessness.
FY 2026 Federal Housing Appropriations – Government Shutdown

As of October 1, 2025, the U.S. federal government has entered a shutdown following a lapse in funding. The duration remains uncertain—past shutdowns have ranged from a few days to over a month, with the longest lasting 35 days.

MRI Software is closely monitoring developments and remains committed to supporting our Affordable and Public Housing clients through this period. Below is a high-level summary of what this means for your operations and how MRI is responding.

Operational Impacts for Subsidized Housing Organizations:

  • Public Housing Authorities
    • Most HUD staff are currently furloughed, slowing or pausing routine functions such as contract renewals, funding approvals, and certain compliance reviews. PHAs can continue essential operations, but federal approvals and guidance may be delayed.
  • Affordable Housing Owners and Operators
    • Properties that rely on federal subsidies (e.g., Project-Based Section 8) may experience payment delays if the shutdown continues. While short-term reserves often cover immediate needs, prolonged disruptions could create cash flow pressure for owners and affect tenant services.
  • Section 8 Voucher Programs (PHA Pro)
    • Housing Choice Voucher payments typically continue for a limited time beyond the start of a shutdown using existing reserves. However, an extended lapse in appropriations could delay subsidy disbursements to landlords.
Next Steps

While many program operations continue in the short term, this is a good time to ensure your teams and systems are ready for potential delays or changes in funding. MRI recommends the following actions:

  1. Stay Informed: Monitor communications from HUD, USDA, or your contract administrators for updates on funding timelines and contingency plans. MRI will share key developments that impact client operations.
  2. Review Cash Flow and Reserves: Assess your organization’s ability to manage delayed payments or reimbursements. Consider modeling different shutdown durations to identify potential risk points.
  3. Document Operational Priorities: Identify critical functions that must continue—such as rent collection, compliance submissions, and resident communication—and ensure MRI systems are configured to support these workflows.
  4. Leverage MRI Support: Our support and client success teams remain fully operational. Please reach out for help optimizing system performance or adjusting workflows.
  5. Plan for Post-Shutdown Activity: Once appropriations are restored, there may be a rush to process backlogged actions. MRI can help ensure your systems and staff are ready to move quickly when that window opens.

MRI Software's Strategic Response

In light of these developments, MRI Software is committed to supporting our clients in navigating the evolving housing landscape. Our solutions are designed to enhance operational efficiency and reduce dependency on federal funding:

  • PHA Pro: Streamlines public housing authority operations, improving management and compliance.
  • MRI Affordable Housing: Facilitates the development and management of affordable housing projects.
  • Assistance Connect & WaitlistCheck: Enhance communication and transparency in tenant assistance programs.
  • Secure Sign & The Work Number: Simplify documentation and verification processes.
  • MRI Energy & Accounting Services: Optimize energy usage and financial management.

These tools are not merely supplementary; they are essential for housing agencies aiming to maintain service levels amidst funding uncertainties.

For more information on operational best practices and software products helping MRI clients navigate the federal funding uncertainty, read our latest blog: A Strategic Ascent for Affordable and Public Housing Organizations Amid Federal Budget Challenges.

Stay Informed

For ongoing updates and detailed analyses, consider following reputable sources such as the National Low Income Housing Coalition and Novogradac. These organizations provide in-depth coverage and expert insights into housing policy and funding developments.

Should you have questions or need further information on how these changes may affect your operations, please do not hesitate to contact us.