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Part of Affordable Housing Compliance Guide: LIHTC, HUD, USDA and HOTMA

TRACS 203A: what changes from 202D

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Team Fortress OS6 min read
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TRACS Release 203A is the planned HUD release of TRACS built to implement HOTMA, and HUD's draft guide sets out new fields, records and voucher changes. Comments closed October 2, 2026. HUD has published no release date. TRACS 202D stays in production.

Key takeaways

  • HUD's draft 203A package proposes new fields, new records and voucher changes. HUD says it is not final and not every change is listed.

  • TRACS 202D stays in production. HUD's route for owners who adopt HOTMA early is the rent override function in 202D.

  • The draft says current HUD guidance is for 203A to be in use by 1/1/2027. HUD has published no release date.

  • Under the draft, a 203A certification carries a Y or N field that says whether 202D rules apply. BMIR projects always follow 202D rules.

  • A move of the Multifamily HOTMA date to January 1, 2028 is reported but is not in a HUD notice. HUD's page still shows January 1, 2027.

TRACS Release 203A is the planned HUD release of the multifamily TRACS system, built to implement HOTMA. HUD circulated a draft guide for it in a stakeholder notice dated September 2, 2026. The draft proposes new fields, new records and changes to the HAP voucher.

HUD's notice says HOTMA provisions tied to 203A cannot be implemented until HUD publishes the release and its related documents. Until then, TRACS 202D stays in production. Teams that run certifications in affordable housing compliance software need to know which of the two releases their tool is built to.

What changes between TRACS 202D and 203A?

The draft proposes changes in six areas. HUD says not all 203A changes are listed in the draft, and items in it are not final.

TRACS 202D and the draft 203A, area by area
Area202DDraft 203A
How a certification is flaggedRecords carry version 2.0.2.DRecords carry version 2.0.3.A, plus a required 202D Rules Apply field set to Y or N
AssetsPre-HOTMA asset rulesThree new asset fields: Income Type, Asset Type, and Verification Type. Imputed income is figured at the level of the individual asset
New fieldsPre-HOTMA values, for example 480 and 400 for the two deductions, are filled in for certifications that follow 202D rulesNew fields including Asset Cap, Imputed Asset Threshold, Dependent Deduction Value, and Elderly Disabled Deduction Value
HardshipMinimum rent hardship exemption codeTwo hardship exemptions, one for child care and one general. The phase-in exemption does not apply to 203A
VouchersMAT30 Section 3 reports occupied assisted unitsNew MAT30 fields. Each unit under contract is reported. Section 7 becomes Repayments and Escrows, with baseline records on the first 203A voucher
FormsCurrent 202D versions of forms are used when printingRevised HUD-50059 and HUD-52670 forms, plus a revised Part 6 of the HUD-52670-A

How does HUD tell 203A and 202D certifications apart?

HUD's draft tells them apart with a version number and a field. A 203A record carries the release number "2.0.3.A". It also carries a mandatory field called 202D Rules Apply. The owner fills it with Y if the certification follows 202D rules and N if 203A and HOTMA rules apply. Per the draft:

  • Certifications effective before the HOTMA effective date follow 202D rules.
  • Corrections to those certifications also follow 202D rules.
  • BMIR projects always follow 202D rules, no matter the certification effective date. The draft states that HOTMA does not apply to BMIR projects.

What does the draft say about 203A timing?

The draft says "The current HUD guidance is for 203A to be in use by 1/1/2027." That sentence sits in the draft's Revised 6/30/2026 version, section 1.3. The same section's schedule and testing text is a placeholder that reads "To be included in the final release of the MAT guide."

The draft also says 203A will require "a transition period during which TRACS and CAs will receive data under both" the 202D and 203A formats. The draft does not state how long the transition lasts or when 202D submissions stop. HUD has published no 203A release date.

A move of the Multifamily HOTMA date to January 1, 2028 is reported from HUD staff remarks, but no HUD notice exists. HUD's own page still shows January 1, 2027, so watch it for a notice.

How do owners use the rent override until 203A is released?

HUD tells an owner who implements HOTMA before 203A is released to use the rent override function in TRACS. The override applies when a family's HOTMA tenant rent differs from the pre-HOTMA tenant rent. HUD's rent override one-pager lays out the steps.

  1. Submit accurate Sections B and C of the HUD-50059.
  2. Enter Sections D, E, and F from the family's most recent reexamination.
  3. Submit non-interim transactions as interims.

HUD's Multifamily HOTMA page adds that owners adopting before January 1, 2027 may calculate family incomes and tenant rents by hand. They then enter the result into TRACS version 202D. HUD says specific, limited discrepancy codes may be disregarded, and it told Contract Administrators to process vouchers despite them.

HUD also requires the owner to annotate the tenant file. The note covers four things:

  • The HOTMA provisions implemented
  • How income, assets, and mandatory deductions were determined
  • What the tenant rent would have been before HOTMA
  • The HOTMA rent entered through the override

To check the rent math on a single file, try the Section 8 rent calculator.

When does the rent override workaround end?

HUD has not said when this workaround ends. HUD's page ties it to owners who implement HOTMA before 203A is released.

What happens to certifications completed under 202D?

Under HUD's draft, certifications effective before the HOTMA effective date follow 202D rules, and so do corrections to those certifications. The draft also says "there is no requirement for previously submitted certifications to be corrected to add new data or new fields."

The draft's wording on corrections is not consistent. Its Appendix B says corrected certifications "recalculate the certification using the new rules once the site or CA software or TRACS has been updated to the latest version." That sits alongside the draft's statement that corrections to pre-HOTMA certifications follow 202D rules.

The draft also creates a HOTM reversal code for one case. That case is a certification submitted under 202D, then corrected under 203A. The correction raises the household's total tenant payment only because of the new HOTMA rules. The draft limits the reversal to the 30-day notice period and describes the qualifying certifications two different ways. Chapter 5 of the draft flags the code with "MAY NOT BE NEEDED depending on the final transition rules."

All of this comes from a draft that HUD says is not final. Check the published release before changing how your team handles corrections.

Where does HUD stand on 203A as of October 22, 2026?

HUD has published a draft 203A guide and no release date.

HUD notices and drafts on HOTMA and TRACS 203A
DateSourceWhat it says
December 17, 2025Notice H 2025-07 and the HUD Multifamily HOTMA pageSets January 1, 2027 for full Multifamily HOTMA compliance. Supersedes H 2024-09 and H 2025-03
May 14, 2026Notice PIH 2026-15Covers public housing, which is separate from Multifamily. HUD enforces from January 1, 2027
Revised June 30, 2026HUD draft TRACS Release 2.0.3.A Industry SpecificationsDraft Version For Comment. Proposes the 203A changes. Says current guidance is for 203A to be in use by 1/1/2027
September 2, 2026HUD IMAX stakeholder noticeAnnounces the draft 203A MAT Guide for review. Comments were due October 2, 2026
Reported, as of September 30, 2026HUD Office of Housing staff at the PHADA Legislative Forum, per US Housing ConsultantsMultifamily may move to January 1, 2028. No HUD notice exists, and HUD's page still shows 2027

For the full date history and how each program differs, see our affordable housing compliance guide.

What does Fortress do today for TRACS work?

Fortress HUD vouchering is built to the TRACS 202D spec and does not support TRACS 203A. HUD Vouchering & TRACS Integration, part of Fortress Compliance, has been in beta since September 28, 2026, and no general availability date is set. It generates HUD-52670 content and MAT30 output.

The full walk-through is in how HUD vouchering works in Fortress. If you are choosing a tool, what to ask a HUD voucher software vendor includes asking which TRACS release the tool is built to, in writing.

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When is TRACS 203A required?

HUD has published no release date for TRACS 203A. HUD's draft says the current guidance is for 203A to be in use by 1/1/2027, and the draft's own schedule section is a placeholder. Watch HUD's Multifamily HOTMA page for the notice.

Can I implement HOTMA before 203A is released?

An owner can implement HOTMA before 203A, per HUD, by using the rent override function in TRACS 202D. The override applies when a family's HOTMA tenant rent differs from the pre-HOTMA tenant rent. The owner must also annotate the tenant file with what was implemented and how the figures were found.

What happens to certifications I already submitted under 202D?

Under HUD's draft, certifications effective before the HOTMA effective date follow 202D rules, and the draft has no requirement to correct previously submitted certifications to add new fields. The draft also says corrected certifications recalculate under the new rules once software or TRACS is updated. Items in the draft are not final.

Does my software need to change for 203A?

Software that sends data to TRACS needs to support whichever release HUD requires, and the draft proposes new fields and records. Ask your vendor which TRACS release it is built to, in writing. If the vendor gives a 203A date, ask who set it, because HUD has published none.

What is a MAT file?

A MAT file is a Monthly Activity Transmission, the format owners use to send records to TRACS. MAT10 carries full certifications. MAT15 carries address changes, MAT40 move-outs, MAT65 terminations, and MAT70 unit transfers and gross rent changes. MAT30 is the HAP voucher.

What is the rent override in TRACS?

The rent override is a TRACS function HUD tells early HOTMA adopters to use in 202D. The owner submits accurate Sections B and C of the HUD-50059 and enters Sections D, E, and F from the most recent reexamination. Non-interim transactions go in as interims.

What is the draft TRACS 203A MAT Guide?

HUD circulated a draft 203A MAT Guide for comment through a stakeholder notice dated September 2, 2026. The package includes an Industry Specifications document titled TRACS Release 2.0.3.A Industry Specifications, Draft Version For Comment, and HUD marks items in it as not final. Comments were due October 2, 2026.

Is TRACS 202D still in use?

TRACS 202D is still in production. HUD tells owners who adopt HOTMA early to enter results into 202D through the rent override. HUD has published no 202D end date, and the draft does not state the length of the transition between the two formats.

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