AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Public Housing Admissions and Continued Occupancy Policy (ACOP) Update
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Alica Arnold, Director, Housing and Community Development
Angela Gerald, Housing Officer II, Housing and Community Development
Andrea Mebane, Housing Officer I, Housing and Community Development
STAFF RECOMMENDATION*
Staff recommend that Council approve the Public Housing ACOP with the new Housing Opportunity Through Modernization Act of 2016 (HOTMA) 102/104 changes effective January 1, 2027.
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LEGISLATIVE CONTEXT*
The Town Council serves as the board of the Town’s Public Housing Authority (PHA), which oversees the Town’s public housing program. A PHA board is responsible for overseeing the department’s operations and governance of a local housing authority, including setting policies, approving budgets, and ensuring compliance with federal regulations.
BACKGROUND AND CONTEXT*
Housing Opportunity Through Modernization Act of 2016 (HOTMA)
On July 29, 2016, HOTMA was signed into law and made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact public housing authority (PHA) programs.
The Final Rule implementing broad changes to income and assets in Sections 102 and 104 of HOTMA, and for PHAs that administer the public housing program over-income provisions in Section 103, was officially published in the Federal Register on February 14, 2023. On September 29, 2023, HUD issued notice PIH 2023-27, which provided guidance to PHAs on the implementation of the program changes described in the Final Rule. HUD issued a revised version of the notice on February 2, 2024.
On May 14, 2026, HUD published Notice PIH 2026-15. The notice announced that, as of January 1, 2027, compliance with sections 102 and 104 of the HOTMA is mandatory for all PHAs, except PHAs who participate in the Moving to Work (MTW) demonstration and PHAs who exclusively use the HUD Family Reporting Software (FRS). For PHAs subject to this compliance deadline, all Form HUD-50058 transactions with an effective date of January 1, 2027, and later must be HOTMA-compliant.
Proposed Changes to the ACOP for HOTMA Compliance
The ACOP is a component of the Annual Plan. This document outlines PHA policies such as eligibility, tenant selection, admissions preferences, waitlist procedures, rent determination, utilities, occupancy guidelines, grievance procedures, pet ownership, and community service requirements. The ACOP was previously approved by Council on March 25, 2026. On May 14, 2026, HUD published Notice PIH 2026-15. The notice announced that, as of January 1, 2027, compliance with sections 102 and 104 of the HOTMA is mandatory for all PHAs
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Eligibility Criteria |
Previous Policy |
Proposed Change |
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Tenants may request a maximum of 3 instances to receive a waiver for late rent payment. This must be approved by the Director of PH. A 4th request of late payment in the fiscal year July 1 - June 30 will result in eviction proceedings (Lease) |
This was the previous policy |
Reinstate policy |
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Tenants must keep their unit clean, safe, and sanitary. If the Town has reason to believe the unit is not meeting housekeeping standards, an inspection will be scheduled with at least 48 hours’ notice. If the unit fails the inspection, tenants will have an opportunity to correct the issue before a reinspection. Failure or refusal to comply may result in a serious lease violation and possible eviction. Free housekeeping education is available for tenants. |
This was the previous policy |
Reinstate policy |
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The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability, or national origin (called “protected classes”). Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18. (Ch. 2) |
The PHA will not discriminate based on marital status, gender identity, or sexual orientation [24 CFR 5.105(a)(2)]. Enforcement of the Equal Access to Housing in HUD Program Regardless of Sexual Orientation or Gender Identity Final Rule has been halted. HUD has proposed the elimination of the Equal Access Rule regulation at 24 CFR 5.105(a)(2) to harmonize HUD regulations with Executive Order 14168. HUD has already rescinded Notice PIH 2014-20 regarding Equal Access Rule enforcement and has removed references to the rule from the HCV Guidebook. As of Spring 2026, elimination of the regulation is currently under review by OMB |
The PHA will not discriminate based on marital status, gender identity, or sexual orientation as currently required under 24 CFR 5.105(a)(2). HUD enforcement of the Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule has been halted. HUD rescinded Notice PIH 2014-20 regarding Equal Access Rule enforcement and has removed references to the rule from the HCV Guidebook. On April 28, 2026, HUD published a proposed rule that seeks to eliminate references to “gender” and “gender identity” with “sex” as defined by Executive Order 14168. This rule has not yet been finalized or codified. Protections for gender and gender identity vary significantly by state |
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The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability, or national origin (called “protected classes”). (Ch. 2) |
n/a |
In July 2025, the Office of the Attorney General issued guidance stating that language ability (LEP status) is not protected under Title VI as an aspect of national origin. HUD’s FHEO will focus enforcement on cases where language is used intentionally as a proxy for national origin discrimination. |
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Elaborated language for applicants or tenants on how to file fair housing complaint with HUD (Ch. 2) |
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The PHA investigates discrimination complaints within 10 business days and works to resolve them. Families are informed of their right to file a fair housing complaint with HUD’s FHEO, and instructions are posted in PHA lobbies |
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Clarification regarding background checks. (Ch. 3) |
Arrest records cannot be used as the sole basis for denial of admission or tenancy |
Evidence of such criminal activity includes, but is not limited to any record of convictions, arrests, or evictions for suspected drug-related or violent criminal activity of household members within the past three years |
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Qualifying families are those with unreimbursed medical or disability-related expenses. To request a general relief hardship, the family must show that these expenses have increased and that the financial hardship results from a change in circumstances (Ch. 6) |
The PHA may grant 90-day hardship extensions for up to 12 months, but families must request each extension before the period ends. After 12 months, families move to the 10 percent threshold unless they qualify for continued relief, in which case they must file a new hardship request |
Families can request a hardship exemption extension before their current period ends. The PHA may grant 90-day extensions if the family still qualifies and provides updated verification. Additional extensions may be approved case-by-case, and the PHA can end the exemption if the family no longer qualifies |
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Deceased Tenant Report (Ch. 7) |
Public Housing Agencies must promptly verify deaths reported through the Deceased Tenants Report by contacting the head of household or, if they are deceased, the emergency contact. In public housing, a home visit is required to confirm whether the unit is occupied. Once the death is confirmed, the PHA must record the family’s move-out date as the earliest of: the date keys are returned and a vacate notice is signed, the date the lease is terminated, or the date the PHA legally regains possession of the unit |
PHAs must request confirmation of a reported death within 24 hours, and document all attempts in the tenant file. Notices may be sent by mail, email, or hand delivery to the head of household, or to an emergency contact if the head of household is deceased and no other adult is present. Families or emergency contacts have 30 days to provide written confirmation; if no response is received, the PHA may presume the death is accurate and proceed with removing the individual from the household. PHAs must also conduct a home visit to verify whether the unit is occupied. If the deceased was the head of household and eligible adult family members remain, the PHA must follow its administrative policies to designate a new head of household and determine continued eligibility for assistance |
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The family is required to notify the PHA when all family members will be absent from the unit for any period greater than 30 calendar days. Written notice must be provided to the PHA at the start of the extended absence (Ch. 13) |
Abandonment of the unit. If the family appears to have vacated the unit without giving proper notice, the PHA will follow state and local landlord-tenant law pertaining to abandonment before taking possession of the unit. If necessary, the PHA will secure the unit immediately to prevent vandalism and other criminal activity |
If a family is absent from the public housing unit for more than 180 consecutive days, and the family does not adequately verify that they are living in the unit, the PHA will terminate the lease for other good cause |
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Changes in conducting tenant interim reexaminations (Ch. 9) |
Interim reexams are conducted anytime there is an increase or decrease in the household income. If the change is reported within 10-days, the decrease in income will be effective the following month of the change and if there is an increase the change in rent will be effective the 2nd month from the change |
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COMMUNITY ENGAGEMENT
We held two required public meetings to receive input on the proposed HOTMA changes to the ACOP (September 29 and October 9). Comments received from the meeting will be attached to our submission of the plan to HUD by October 12, 2026.
ATTACHMENTS
Resolution
Admissions and Continued Occupancy Policy (ACOP)
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