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 Hardship Exemptions
We understand there has been some confusion about the Financial Hardship Exemption (General Relief) and the Childcare Hardship Exemptions of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). To clarify, both of these exemptions are required. While Owners have some discretion as to how the exemptions are offered, they must offer these exemptions. When reviewing an Owner’s Tenant Selection Plan after they have elected to implement the exemptions, you should verify that the exemptions are clearly laid out and in line with the below requirements.
For the Child-Care Expense Deduction, outlined in C.5 of Notice H 2023-10, Owners must offer a deduction for any reasonable child-care related expenses for the care of children under 13 when the care is necessary to enable a family member to be employed or to further his or her education and the expense is not reimbursed by an agency or individual outside the household. Owners should develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. The Owner may also extend the hardship exemption for additional 90-day periods based on family circumstances as stated in their written policies.
For General Relief, Owners must describe their policy for determining eligibility for general hardship in their updated Tenant Selection Plans.
If you have any questions, please contact MFH_HOTMA@hud.gov.
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