I had the same problem and just fixed it. For me it was using the "Houdini Engine for Unity/Unreal" instead of the "Houdini Engine Indie" license.
I checked my licenses on the website: https://www.sidefx.com/services/licenses/ [www.sidefx.com] and saw that this was the case.
I ran License Administrator on my machine and went to File/ Install Licenses...
Then I set the quantity for "Houdini Engine Indie" to 1 and hit install.
I don't know if it will make a difference but I then returned the "Houdini Engine for Unity/Unreal" license because I don't need it and I was worried about a compatibility issue between the two licenses for houdini engine being active. This is the problem mattw mentioned.
I restarted Unreal and it seems to have been fixed.
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Houdini Engine for Unreal » Purchased Indie, and now UE4 does not allow me to use .HDALC
- HBark3D
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