News and Announcements

HOTMA Changes
09/09/2024

/upload/page/0062/Letter regarding HOTMA changes.docx

New Changes – Housing Opportunities through Modernization Act – HOTMA

Implementation of Sections 102 & 104

Housing & Urban Development (HUD) has implemented new guidelines under the Housing Opportunities through Modernization Act (HOTMA). Some of the following changes are effective at your annual re-certification beginning October 1, 2024, other implementations are applicable

upon further guidance from Housing & Urban Development:

Household Income – changed exclusion of income for Independent Contractor, Day Laborer, Seasonal Worker, all household income is included (24 CFR 5.609(b)(24) and 5.603(b).

Unless specifically excluded (24 CFR 5.100) (24 CFR 5.609(b)24(i) – (b)(24)(vii).                                            

Earned Income Disallowance – No longer applicable. Removed as of January 1, 2024.

Elderly Deduction – changed from $400 to $525 for an elderly/disable household (24 CFR 5.611(a)(2).

New Higher Threshold for Deducting Health and Medical Care Expensed and Unreimbursed Reasonable Attendant Care and Auxiliary Apparatus Expenses- changed from 3% to 10%. Medical expenses must exceed 10% of annual income (24 CFR §5.611(a)(3)(i)-(ii). This change will be phased in over 2 years (5% in year 1, 7.5% in year 2; 10% after 24 months, unless family qualifies for a new exemption). 

Employment verifications cannot be more than 120 days of receipt. A statement dated within the appropriate benefit year for fixed income sources i.e. Social Security Income, Pension.

Self-Certification for Assets – If net family assets are $50.000.00 or less. Imputed return on assets over $50,000.00 based on passbook savings rate as determined by Housing & Urban Development (24 CFR 5.609(a)(2) and (b)(1).

Change in rent – If income decreases, there will not be an interim change, unless the reduction

of income results in tenant portion of rent decreasing by more than 10%.  There will not be an interim change, unless the increase in tenant portion of rent increases by more than 10%.

The Higher Educating Act requires that all assistance under Title IV of the HEA and Bureau of Indian Affairs student financial assistance is excluded.

Income determination is being made using pre-Housing Opportunities through Modernization Act (HOTMA) regulations.


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