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

HOTMA Resource - Key Upcoming Changes 8.18.27

Pdf Summary

HOTMA compliance for HUD housing programs becomes mandatory by January 1, 2027, with agencies likely needing to begin implementing changes as early as September 2026 due to processing lead times. The document outlines major rule changes for eligibility, annual and interim reexaminations, income calculation, and deductions.<br /><br />For eligibility, a family is ineligible if its net assets exceed the 2027 limit of 109,797 or if it owns disqualifying real property it can live in and sell. Certain assets are excluded, such as retirement and education accounts. At admission, over-limit households must be denied; at recertification, agencies may choose among strict, limited, or no enforcement policies.<br /><br />Annual reexaminations now use a three-step look-back process based on EIV reports, prior HUD records, prior-year certifications, and family confirmation of changes. If nothing has changed, prior-year income may be used; otherwise, current income must be verified. Income from assets is always anticipated, SSA/SSI COLAs must be applied, and asset income is treated differently depending on whether assets are below or above the threshold. Families below the asset threshold may self-certify asset values.<br /><br />HOTMA also updates deductions. The dependent deduction is 525 per dependent and the elderly/disabled family deduction is 575. Medical and disability expense deductions now apply only to expenses above 10% of annual income, though some households transition through a 24-month phased schedule and there is a separate hardship relief option.<br /><br />For interim reexaminations, most income changes require an interim only if they exceed a PHA-set threshold of up to 10% of adjusted income. Any household composition change requires an interim with no threshold. Several changes are handled outside interim processing, including certain hardship updates, minimum rent hardship, and some citizenship status changes. Program-specific rules also apply for HCV and MFH programs.

Keywords

HOTMA compliance

HUD housing programs

eligibility rules

annual reexaminations

interim reexaminations

income calculation

asset limits

deductions

medical expense deduction

PHA threshold