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

Participant Guide - HOTMA In Depth

Pdf Summary

This participant guide provides a comprehensive review of programmatic changes under the Housing Opportunity Through Modernization Act (HOTMA). It includes six activities designed to help housing agency staff and multifamily housing owners understand and apply new eligibility and income verification rules effectively.<br /><br />Activity 1 focuses on determining asset limits and property ownership rules. It clarifies that families with net assets above $100,000 (adjusted annually for inflation) are ineligible for assistance. Ownership of suitable property disqualifies families only if all four conditions—ownership interest, right to reside, authority to sell, and property suitability—are met. Various property exemption scenarios are presented to test eligibility.<br /><br />Activity 2 explains Safe Harbor income verification, allowing Public Housing Agencies (PHAs) and multifamily housing owners to use income determinations from federally means-tested programs such as TANF, SNAP, Medicaid, SSI, and others. Verification must be recent, comprehensive, third-party verified, and reflect total gross income for all household members.<br /><br />Activity 3 addresses calculating net family assets and asset income. It guides distinguishing necessary from non-necessary assets, applying a $50,000 threshold for including non-necessary assets in annual income determinations, and calculating associated income from those assets.<br /><br />Activity 4 covers medical and disability expense deductions and hardship relief. It illustrates the phased implementation of increased thresholds for allowable unreimbursed medical expense deductions, rising from 3% to 10% of annual income, and outlines how hardship exemptions may temporarily lower thresholds.<br /><br />Activity 5 provides guidance on interim reexaminations triggered by income changes, specifying thresholds (typically 10%) for required interims, exceptions for increases in earned income, and timing considerations relative to scheduled annual reexaminations. Several scenarios illustrate when and how reexaminations should be conducted.<br /><br />Activity 6 focuses on verifying and calculating annual household income using HUD’s verification hierarchy and tools like the Enterprise Income Verification (EIV) system. It includes examples of applying cost-of-living adjustments, validating earned and unearned income, and reconciling reported versus verified income sources for annual reexamination effective dates.<br /><br />Overall, this guide equips housing professionals with detailed, scenario-based instruction to comply with HOTMA programmatic changes, supporting accurate eligibility determinations and income calculations essential for fair and lawful housing assistance administration.

Keywords

Housing Opportunity Through Modernization Act

HOTMA

programmatic changes

income verification

asset limits

property ownership rules

Safe Harbor income verification

medical expense deductions

interim reexaminations

Enterprise Income Verification system