HOTMA: An In-Depth Review of Programmatic Changes-Handout

Handout - HOTMA-PIH 2024-38

Pdf Summary

The document provides updated guidance from the National Association of Housing & Redevelopment Officials concerning Sections 102 and 104 of the Housing Opportunity Through Modernization Act (HOTMA) as per HUD Notice PIH 2024-38, issued on December 17, 2024. The guidance outlines compliance deadlines and changes for Public Housing Agencies (PHAs).

Key compliance requirements include:

1. <strong>Ceasing Enrollment into Earned Income Disregard (EID):</strong> Effective January 1, 2024, PHAs must stop enrolling tenants into EID, and the practice will end entirely by December 31, 2025.

2. <strong>Use of HUD-9886-A Form:</strong> Starting January 1, 2024, all reexaminations require the new HUD-9886-A form for Authorization for the Release of Information. This form must be signed at the first annual or interim examination. It needs to be re-signed if someone turns 18 or is newly added to the household.

3. <strong>Income Exclusions and Definitions:</strong> By July 1, 2025, PHAs must adhere to updated income exclusion policies and definitions of family and income. Family definitions now include individuals regardless of sexual orientation, gender identity, or marital status.

4. <strong>De Minimis Errors:</strong> Adjustments are required for identified errors in income/rent calculations. If the PHA identifies an error, it must correct it from the error's effective date. Overcharged families must be reimbursed, though undercharged families are not obligated to repay back rent. Errors within a $30 margin are considered "de minimis."

The document also states that PHAs may regulate consent revocation to access financial records, possibly leading to denial or termination of assistance. Furthermore, health expenses adhering to IRS Publication 502 could be considered for medical deductions. PHAs need to update their administrative plans accordingly to reflect these changes.

Keywords

HOTMA

HUD Notice PIH 2024-38

Public Housing Agencies

Earned Income Disregard

HUD-9886-A Form

Income Exclusions

De Minimis Errors

Compliance Deadlines

Family Definitions

Medical Deductions