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

Participant Guide - HOTMA In Depth

Pdf Summary

This participant guide provides an in-depth, scenario-based review of key programmatic changes under the Housing Opportunity Through Modernization Act (HOTMA) for HUD housing assistance. It is organized into six activities that teach how to apply new rules through eligibility determinations, verification standards, income/asset calculations, deductions, and interim reexamination requirements.<br /><br />Activity 1 explains two real-property/asset-based ineligibility tests: (1) a “net family assets” cap (example threshold shown as $100,000, adjusted annually), and (2) disqualification for owning “suitable” property only when all four conditions are met (ownership interest, right to reside, authority to sell, and suitability for occupancy). It lists common reasons a unit is not suitable (accessibility, size, distance/hardship, safety, zoning) and notes possible exemptions (e.g., domestic violence, co-ownership, active sale).<br /><br />Activity 2 covers the optional “Safe Harbor” income verification method, allowing PHAs/owners to rely on income determinations from approved federal means-tested programs (e.g., TANF, Medicaid, SNAP, EITC, WIC, SSI). It provides a checklist: determination within 12 months, third-party verification, includes all household members, and states total gross annual income.<br /><br />Activity 3 focuses on determining net family assets and asset income, distinguishing necessary vs. non-necessary personal property and applying an asset threshold example of $50,000, with scenarios involving bank accounts, valuables, stocks, and an excluded federal tax refund (12-month rule example).<br /><br />Activity 4 addresses medical and disability-related deductions under HOTMA’s higher thresholds (moving to 10%), including phased-in relief for households previously receiving deductions and hardship relief options.<br /><br />Activity 5 outlines when interims are required: generally only when adjusted income changes by 10% or more, with key exceptions for earned-income increases and timing near annual recertifications.<br /><br />Activity 6 integrates verification hierarchy and annual income projections using EIV, pay documentation, and Social Security COLAs across detailed household examples.

Keywords

HOTMA

Housing Opportunity Through Modernization Act

HUD housing assistance

PHA compliance

net family assets cap

real property ineligibility tests

Safe Harbor income verification

means-tested federal programs

medical and disability deductions 10% threshold

interim reexamination 10% adjusted income change