HOTMA: An In-Depth Review of Programmatic Changes-Participant Guide

Participant Guide - HOTMA In Depth

Pdf Summary

This document is a comprehensive participant guide reviewing programmatic changes introduced by the Housing Opportunity Through Modernization Act (HOTMA). It provides detailed activities and scenarios for housing agency staff to understand and apply HOTMA requirements in eligibility, income verification, asset calculations, medical expense deductions, reexamination procedures, and income calculations.<br /><br />Key topics include:<br /><br />1. Asset Limits and Property Ownership Rules: HOTMA establishes that families with net assets over $100,000, including real property, are ineligible for assistance. Additionally, ownership of suitable property (livable, accessible, residents' rights, sale rights) disqualifies eligibility unless exemptions apply, such as for disability or co-ownership with residents or if the property is actively for sale. Several case scenarios illustrate how to determine eligibility based on property ownership and asset thresholds.<br /><br />2. Safe Harbor Income Verification: PHAs may use income determinations from certain federal means-tested assistance programs (e.g., TANF, SNAP, Medicaid, SSI) as Safe Harbor to verify income. The guide outlines criteria for acceptable verification documents and provides scenarios to decide if verification meets Safe Harbor standards.<br /><br />3. Calculating Net Family Assets and Asset Income: Guidance on classifying assets as necessary or non-necessary personal property, applying a $50,000 asset threshold, and calculating resulting income to count towards annual income. Exercises demonstrate valuation and inclusion/exclusion of assets.<br /><br />4. Medical and Disability Expense Deductions and Hardship Relief: Instructions on calculating allowable deductions for unreimbursed medical expenses and attendant care under phased-in thresholds (currently transitioning from 3% to 10% of income). Scenarios illustrate deductions and approved hardship relief processes.<br /><br />5. Applying HOTMA Rules to Interim Reexaminations: New rules require interim reexaminations only for 10% or greater decreases or increases in income, with some exceptions. Examples guide staff on when to process interim vs. non-interim reviews based on income changes and timing.<br /><br />6. Verifying and Calculating Annual Household Income: Procedures for verifying income sources using the EIV system and official documents, applying cost-of-living adjustments, reconciling self-reported and third-party data, and projecting annual income across family members. Multiple case studies illustrate detailed income calculations for annual reexaminations.<br /><br />Overall, the guide equips housing program staff with practical tools, rules, and case applications to effectively implement HOTMA’s updated requirements on eligibility, income, assets, deductions, and reexaminations in public housing and voucher programs.

Keywords

Housing Opportunity Through Modernization Act

HOTMA

asset limits

property ownership rules

safe harbor income verification

net family assets

medical expense deductions

disability expense deductions

interim reexaminations

annual household income calculation