HCV Essentials-HOTMA Resource - Key Upcoming Changes 8.18.27

HOTMA Resource - Key Upcoming Changes 8.18.27

Pdf Summary

HOTMA Sections 102 and 104 must be fully implemented by January 1, 2027, though agencies may need to begin applying the new rules as early as September 2026 due to processing timelines.<br /><br />Key eligibility changes include an asset limit of $109,797 for 2027, with retirement and education accounts excluded. Families may also be ineligible if they own disqualifying real property, subject to certain exceptions. At admission, agencies must deny over-limit households. At recertification, agencies may choose full enforcement, limited enforcement, or no enforcement.<br /><br />Annual reexaminations use a three-step look-back process that compares EIV data, prior HUD records, and the family’s prior-year certification. If nothing has changed, prior documentation may be used; if changes exist, agencies must verify current income. Income from assets is always anticipated, and SSA/SSI COLAs must be applied as income changes effective January 1 or later. The 2027 passbook rate is 0.38%, and the inflationary asset threshold is $54,898. Households below the asset limit may self-certify asset values, and may also self-certify that they own no real property unless contradicted.<br /><br />Deduction rules have changed: the dependent deduction is $525 and the elderly/disabled family deduction is $575 for 2027. The medical/disability expense threshold rises from 3% to 10% of annual income, with a general hardship option allowing relief above 5% for renewable 90-day periods. Certain households receiving these deductions will move through a 24-month phase-in before the full 10% rule applies.<br /><br />For interim reexaminations, PHAs must use a threshold no higher than 10% of adjusted income for most income changes, but any household composition change always requires an interim with no threshold. Non-interim changes are generally handled at the next annual or qualifying interim reexam, with some program-specific exceptions for HCV and MFH programs.

Keywords

HOTMA

Section 102

Section 104

asset limit

annual reexamination

income verification

passbook rate

medical expense threshold

self-certification

interim reexamination