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

HOTMA Resource _ Key Upcoming Changes

Pdf Summary

The document summarizes HOTMA compliance requirements effective January 1, 2027, with agencies likely needing to begin implementation by September 2026 due to processing lead times. It explains that families are ineligible if their net assets exceed the 2027 statutory limit of $109,797 or if they own disqualifying real property, subject to exceptions. At admission, agencies must deny applicants over the limit, while at recertification agencies may choose among full enforcement, limited cure periods, or no enforcement.<br /><br />For annual reexaminations, HOTMA uses a three-step look-back process based on EIV income data, prior HUD records, and family-certified prior-year income. If nothing has changed, prior-year documentation may be used; if changes occurred, normal verification rules apply. Asset income is always anticipated, SSA/SSI COLAs must be applied for reexams effective January 1 or later, and new admissions/interims still use anticipated income. The 2027 inflationary asset threshold is $54,898, and the passbook rate is 0.38%. Families below the threshold may self-certify assets, and may also self-certify that they own no real property unless contradicted.<br /><br />The document also updates deductions: the dependent deduction is $525 and the elderly/disabled family deduction is $575 for 2027. The unreimbursed medical/disability expense deduction threshold rises from 3% to 10% of annual income. A 24-month phase-in applies for certain households already receiving such deductions, starting at 5%, then 7.5%, then the full 10% threshold. General hardship relief may allow deductions above 5% for renewable 90-day periods.<br /><br />For interim reexaminations, most income changes trigger an interim only if they exceed a PHA-set threshold, which cannot be more than 10% of adjusted income; household composition changes always require an interim. Several changes are not processed as interim transactions and instead wait for the next annual or qualifying interim review.

Keywords

HOTMA

2027 compliance

asset limit

annual reexamination

income verification

passbook rate

self-certification

medical expense deduction

interim reexamination

PHA threshold