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

Presentation - HOTMA In Depth Review

Pdf Summary

This document is a NAHRO training guide, “HOTMA: An In-Depth Review of Programmatic Changes,” designed to help Public Housing Authorities (PHAs) and Multifamily Housing (MFH) owners understand and implement HUD’s Housing Opportunity Through Modernization Act (HOTMA). It explains HOTMA’s structure, phased rollout, and the difference between effective dates and compliance deadlines, distinguishing mandatory requirements from discretionary policy options that must be adopted in written agency policies.<br /><br />Key eligibility and admissions updates include expanded definitions of “family” (including certain foster youth) and new definitions for foster adults/children as household members (affecting unit size but excluding their income and related payments). HOTMA introduces asset-based admission limitations: applicants may be ineligible if net family assets exceed a HUD-set threshold or if they own real property suitable for habitation, subject to specific exemptions.<br /><br />The guide outlines new inspection flexibilities (optional) such as allowing occupancy before a unit passes inspection when deficiencies are non-life-threatening, using alternative inspections completed within 24 months, and clarified repair timelines and life-threatening conditions.<br /><br />Verification changes include optional “safe harbor” income verifications from other means-tested programs, expanded self-certification options (SSN, zero income, no property ownership), revised third-party verification timing, and increased thresholds for asset self-certification with triennial verification rules. New one-time consent forms (HUD-9886-A/9887-A) replace annual signatures.<br /><br />Income and asset rules are significantly updated: revised income definitions, narrower nonrecurring income exclusion, new exclusions (e.g., certain VA aid and attendance, kinship payments, home-based care payments), revised student financial aid treatment (Title IV HEA always excluded), and expanded asset exclusions (retirement accounts, ABLE, 529s, FSS, tax refunds for 12 months). Asset categories now include necessary vs non-necessary personal property with thresholds; asset income rules change for actual and imputed income.<br /><br />Adjusted income changes include inflation-adjusted deductions, a higher (phased-in) 10% medical/disability threshold with hardship relief options, and childcare hardship provisions. Interim and annual reexamination rules are revised with 10% thresholds, new “non-interim” transactions, and updated EIV requirements. The guide also covers public housing over-income limits, de minimis income errors, PHA-owned housing definitions, PBV caps, and program-specific applicability.

Keywords

HOTMA

Housing Opportunity Through Modernization Act

HUD

NAHRO training guide

Public Housing Authorities (PHAs)

Multifamily Housing (MFH) owners

income and asset calculations

eligibility and admissions updates

verification and self-certification

reexamination and EIV requirements