HCV Essentials-HOTMA Resource - Key Upcoming Changes

HOTMA Resource - Key Upcoming Changes

Pdf Summary

HOTMA Sections 102 and 104 must be fully implemented by January 1, 2027, though agencies may need to begin using the new rules as early as September 2026 because of processing timelines.<br /><br />Key eligibility changes include a net asset limit of $105,574 for 2026, adjusted annually. Certain accounts such as IRAs, 401(k)s, 529s, ABLE accounts, and Coverdells are excluded. Families are also ineligible if they own qualifying real property they can live in and sell, with exceptions for domestic violence survivors, some manufactured homes, jointly owned property, and property listed for sale. At admission, denial is mandatory if over the limit; at recertification, agencies may choose full, limited, or no enforcement.<br /><br />For annual reexaminations, agencies use a three-step look-back process relying on the EIV report, prior HUD forms, prior certifications, and family-reported income history. If nothing has changed, prior-year income may be used. If an interim occurred and nothing else changed, that interim income can be reused. If changes are reported, verification rules apply.<br /><br />Income from assets remains anticipated. SSA/SSI COLAs always count as income changes. The 2026 passbook rate is 0.40%, and the inflationary asset threshold is $52,787. Families at or below the threshold may self-certify asset values.<br /><br />Deduction updates include inflation-adjusted figures of $500 per dependent and $550 for elderly/disabled families. The unreimbursed medical/disability expense threshold rises to 10% of annual income, with a phased-in relief schedule for certain households and optional general hardship relief.<br /><br />For interim reexaminations, most income changes require action only if they exceed a PHA-set threshold no higher than 10% of adjusted income, but any household composition change requires an interim with no threshold. Certain changes are handled only at the next annual or qualifying interim review, with some program-specific exceptions.

Keywords

HOTMA

Section 102

Section 104

asset limit

annual reexamination

interim reexamination

HUD eligibility

income verification

medical expense deduction

PHA threshold