HOTMA: Policy Impact and Analysis Workshop-Presentation

Presentation - HOTMA Policy Impact

Pdf Summary

The National Association of Housing and Redevelopment Officials (NAHRO) provides comprehensive training on the Housing Opportunity Through Modernization Act (HOTMA) and its impact on HUD housing programs, notably the Housing Choice Voucher (HCV) Program. HOTMA, enacted in 2016, introduced significant amendments to the Housing Act of 1937, affecting income calculation, asset definitions, inspections, tenant eligibility, and program operations across various HUD offices including Public and Indian Housing (PIH), Multifamily Housing (MFH), and Community Planning and Development (CPD).<br /><br />Key training objectives include understanding HOTMA's mandatory and discretionary provisions, updating agency policies in compliance with HUD timelines, and revising Administrative Plans accordingly. PHAs must distinguish between effective dates (when regulations take effect) and compliance dates (deadlines for full implementation).<br /><br />Key provisions already in effect include self-implementing rules such as allowing reasonable accommodation payment standards up to 120% of Fair Market Rent (FMR), changes in FMR publication and the option to not decrease payment standards when FMR decreases, and expanded Family Unification Program eligibility. Notable operational flexibilities include approving tenancy for units failing inspection if only non-life-threatening deficiencies exist, and utilizing alternative inspections conducted within 24 months.<br /><br />HOTMA also redefines PHA-owned housing with stricter controlling interest thresholds, alters Project-Based Voucher (PBV) program caps, and revises Manufactured Home HAP calculations to include mortgage and associated payments.<br /><br />Income and asset reviews under HOTMA update definitions, phase out Earned Income Disallowance, introduce new income exclusions (e.g., certain lump sums, VA aid), and impose net family asset limits (currently $100,000, adjusted annually) with rules on suitable property ownership.<br /><br />Verification processes have been streamlined: self-certification is allowed for assets below $50,000; the HUD-9886-A consent form now requires less frequent signatures; and Safe Harbor income verifications from federal assistance programs are permissible. PHAs must also incorporate inflation adjustments to deductions and codify hardship exemptions for medical and childcare expenses.<br /><br />Interim reexamination policies have been clarified with threshold changes—interim reviews are mandatory for income changes of 10% or more, with specific rules for timing and exemptions. Non-interim reexaminations allow certain updates without a full review.<br /><br />PHAs must update agency plans to implement these changes, notify participants before policy activation, and manage policy adoption processes including public notices.<br /><br />Overall, the training equips HUD housing agencies to ensure regulatory compliance, update program operations, and effectively administer housing assistance under the evolving HOTMA framework.

Keywords

Housing Opportunity Through Modernization Act

HOTMA

HUD housing programs

Housing Choice Voucher Program

Public Housing Agencies

income calculation changes

asset definition updates

inspection flexibilities

Project-Based Voucher caps

interim reexamination policies