Date of Publication: 2025-08-13**HUD Implements Dual Rent Incentive Structures for Jobs Plus Program, Mandating HOTMA Compliance for Future Grants**
The U.S. Department of Housing and Urban Development (HUD) has announced significant changes to the rent incentive structure for its Jobs Plus initiative program, effective for Fiscal Year (FY) 2025 and beyond. This crucial update, stemming from the Housing Opportunity Through Modernization Act of 2016 (HOTMA), establishes a new framework while maintaining the existing Jobs Plus Earned Income Disregard (JPEID) for all previously awarded grants.
Since its inception in FY 2014, the Jobs Plus program has been instrumental in fostering partnerships between public housing authorities (PHAs), local workforce investment boards, and other organizations to empower public housing residents through employment and increased earnings. This latest notice modifies the operational landscape for grant administrators managing these vital programs.
While this notice introduces a new structure, the provided summary does not specify any new funding amounts or specific dollar allocations for the Jobs Plus program. Similarly, no individual states, cities, or tribes are named as specific grantees; the provisions apply broadly to all public housing authorities, workforce investment boards, and their partners involved in the Jobs Plus initiative.
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**Key Takeaways**
* A new rent incentive structure, in alignment with the Housing Opportunity Through Modernization Act of 2016 (HOTMA), will apply to all Jobs Plus grants awarded for Fiscal Year 2025 and future funding cycles. (The Notice)
* Jobs Plus grants awarded in Fiscal Year 2023-2024 and all prior fiscal years will remain subject to the established 24 CFR 960.255(e)(2) regulations and must continue to implement the Jobs Plus Earned Income Disregard (JPEID) structure. (The Notice)
* This notice supersedes the rent incentive provisions outlined in the previous Federal Register notice published on March 29, 2018, specifically for new grants, by introducing the HOTMA-compliant framework. (The Notice)
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**Why This Matters**
This dual-track approach to rent incentives presents a critical administrative challenge and opportunity for disaster recovery managers and grant administrators. Understanding which incentive structure applies to a specific grant year is paramount for accurate financial calculations, resident eligibility, and program compliance. Failure to correctly apply the appropriate rent incentive—either the new HOTMA-based structure or the legacy JPEID—could lead to audit findings, compliance issues, and disruption in services for public housing residents striving for economic self-sufficiency. This requires a meticulous review of existing grant agreements and a proactive approach to adopting new requirements for future funding.
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**What Actions to Take Now**
* **Audit Current Grants:** Immediately review all active Jobs Plus grants to confirm their award fiscal year and identify which rent incentive structure (JPEID or the new HOTMA-compliant structure) applies.
* **Update Policies & Procedures:** Amend internal policies, procedures, and training materials to reflect the two distinct rent incentive frameworks and their applicability based on grant award dates.
* **Plan for Future Applications:** For any upcoming Jobs Plus grant applications for FY 2025 and beyond, ensure your proposed program design and financial projections strictly adhere to the new HOTMA-compliant rent incentive structure.
* **Stakeholder Communication:** Develop clear communication plans to inform program staff, participating residents, and partners about these changes and how they impact earnings calculations and rent responsibilities.
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CATEGORY: Notices – Administrative Order
