HCV Essentials-HOTMA Resource - Key Upcoming Changes

HOTMA Resource - Key Upcoming Changes

Pdf Summary

HOTMA Sections 102 and 104 require full compliance by January 1, 2027, though many agencies may need to begin using the new rules as early as September 2026 because of processing lead times.<br /><br />Key eligibility changes:<br />- A family is ineligible if its net assets exceed the 2026 limit of $105,574, excluding retirement and education savings accounts.<br />- Families are also ineligible if they own disqualifying real property they could live in and sell, with exceptions such as domestic violence survivors and certain manufactured homes or jointly owned property.<br />- At admission, agencies must deny over-limit applicants with no discretion. At recertification, agencies may choose full enforcement, limited enforcement (up to 6 months to cure), or no enforcement.<br /><br />Annual reexaminations now follow a three-step look-back process using the EIV Income Report, the most recent HUD-50058/50059, and prior-year certified income. If nothing has changed, prior-year income may be used. If an interim reexam occurred and nothing else changed, that interim income may be reused. Otherwise, agencies must verify current income.<br /><br />Other income rules:<br />- Income from assets is always anticipated.<br />- SSA/SSI COLAs are always treated as income changes.<br />- The 2026 passbook rate is 0.40%, and the inflationary asset threshold is $52,787.<br />- Households at or below the threshold may self-certify asset values; they may also self-certify that they own no real property unless contradicted.<br /><br />Deduction updates:<br />- Dependent deduction: $500 per dependent.<br />- Elderly/disabled family deduction: $550.<br />- The medical/disability expense threshold rises to 10% of annual income.<br />- Some households receive a 24-month phase-in from 5% to 7.5% to 10%.<br /><br />Interim reexams are required for most income changes only when the change exceeds a PHA-set threshold of up to 10% of adjusted income. Any household composition change requires an interim reexamination. Certain items, such as hardship status changes or some program-specific rent/SSN updates, are handled outside interim reexams.

Keywords

HOTMA

Section 102

Section 104

eligibility rules

net assets limit

real property

annual reexaminations

income verification

deduction updates

interim reexaminations