Public Housing Essentials (Previously known as Public Housing Occupancy, Eligibility, Income, and Rent Calculation (PHOEIR))-HOTMA Resource

HOTMA Resource - Key Upcoming Changes

Pdf Summary

HOTMA Sections 102 and 104 must be fully implemented by January 1, 2027, though many agencies may need to begin applying the new rules as early as September 2026 due to processing timelines. The guidance covers eligibility, income calculations, deductions, and interim reexaminations.<br /><br />For eligibility, a family is ineligible if net assets exceed the statutory limit or if they own disqualifying real property they could live in and sell. Some exceptions apply, including for domestic violence survivors and certain jointly owned or manufactured homes. At admission, agencies must deny over-limit families. At recertification, agencies may choose full enforcement, limited enforcement, or no enforcement.<br /><br />Annual reexaminations now use a three-step look-back process: review the EIV Income Report, prior HUD records, and the family’s prior-year certification; then check whether an interim reexam occurred; if needed, ask the family about prior-year income and permanent changes. If nothing changed, prior-year documentation may be used.<br /><br />Income from assets is always anticipated. SSA/SSI COLAs are treated as income changes. Asset rules include a 2026 asset threshold of 52,787 and a passbook rate of 0.40%. Families below the threshold may self-certify asset values; those at or below the threshold may also self-certify that they own no real property unless contradicted.<br /><br />For deductions, 2026 inflation-adjusted amounts are 500 per dependent and 550 for elderly/disabled families. The unreimbursed medical/disability expense threshold increased to 10% of annual income, with a general hardship option above 5% and a phased-in schedule for certain households transitioning from earlier rules.<br /><br />Interim reexaminations are required for income changes only when the change meets a PHA-set threshold up to 10% of adjusted income; household composition changes always require an interim with no threshold. Some items are handled only at annual or qualifying interim reviews, and several program-specific exceptions apply for HCV and multifamily housing.

Keywords

HOTMA

eligibility

income calculations

deductions

interim reexaminations

asset threshold

annual reexamination

SSA COLA

medical expense threshold

HUD guidance