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

Participant Guide - HOTMA In Depth

Pdf Summary

This participant guide for “HOTMA: An In-Depth Review of Programmatic Changes” is a training worksheet focused on how HUD’s HOTMA rules affect income and asset calculations for housing program participants.<br /><br />It includes four main activities:<br /><br />1. Safe Harbor Income Verification  <br />   Participants review sample verification documents for four families (Smith, Brown, Lee, and Osei) and determine whether each document meets HUD Safe Harbor requirements. The checklist asks whether the document is dated within 12 months of receipt, states total family size, includes the entire family, and lists total annual income. The guide emphasizes that Safe Harbor documentation only needs to show total family income, not income by person or source.<br /><br />2. Net Family Assets and Actual Income  <br />   Using the 2027 HUD asset threshold of 54,898, participants evaluate five families (Bennett, Barber, McNeil, Whitmore, and Harper). They classify assets as necessary or non-necessary personal property, decide what counts toward net family assets, and determine any actual asset income. Examples include bank accounts, boats, jewelry, stock portfolios, tax refunds, furniture, and recreational vehicles.<br /><br />3. Calculating Imputed and Final Asset Income  <br />   Participants calculate actual and imputed income for four families (Nightshade, Dahlia, Magnolia, and Poinsetta). This section again uses the 2027 HUD asset threshold of 54,898 and the 2027 passbook rate of 0.38%. It tests whether families exceed the threshold and how to compute total asset income when assets do not generate actual income.<br /><br />4. Calculating the Interim Change Threshold  <br />   Participants compute percentage changes in adjusted income to determine whether an interim reexamination is required. Six scenarios involve changes such as reduced work hours, new child-care expenses, added household members, household members moving out, and multiple income decreases over a cycle.<br /><br />Overall, the guide is a practical exercise set designed to help staff apply HOTMA rules to real-world income, assets, and interim reexamination situations.

Keywords

HOTMA

HUD

income verification

safe harbor

net family assets

imputed income

asset threshold

passbook rate

interim reexamination

housing program