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

HOTMA Resource - Key Upcoming Changes

Pdf Summary

HOTMA compliance becomes mandatory by January 1, 2027 for new admissions, annual recertifications, and interim reexaminations, though many agencies may need to begin using the new rules by September 2026 to allow for processing time.<br /><br />Key eligibility changes include a new asset limit: a family is ineligible if net assets exceed the statutory cap or if they own disqualifying real property they can live in and sell. Some property types are exempt, such as those for domestic violence survivors or certain jointly owned or HUD-assisted manufactured homes. At admission, agencies must deny applicants over the limit; at recertification, agencies may choose full, limited, or no enforcement.<br /><br />Annual reexaminations now follow a three-step look-back using EIV income data, the most recent HUD form, and family-certified prior-year income. If nothing changed, prior-year income can be used. If an interim reexam already occurred and nothing else changed, that income may be reused. Otherwise, the family’s reported prior-year income and any permanent changes must be verified. Asset income is always anticipated, SSA/SSI COLAs are always treated as changes, and income from assets below the threshold is counted only as actually earned.<br /><br />For deductions, the dependent deduction is $500 and the elderly/disabled family deduction is $550 for 2026. The medical/disability expense threshold increases to 10% of annual income, with phased relief for some households and a general hardship option above 5%.<br /><br />For interim reexaminations, most income changes use a PHA-set threshold up to 10% of adjusted income, but household composition changes always require an interim with no threshold. Certain updates, such as hardship relief or some program-specific changes, are handled only at the next annual or qualifying interim reexamination.

Keywords

HOTMA

housing compliance

asset limit

annual recertification

interim reexamination

eligibility rules

income verification

medical expense deduction

PHA threshold

HUD regulations