Housing Opportunity Through Modernization Act of 2016 (HOTMA)
The Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law July 29, 2016. Its goal is to modernize and streamline various aspects of housing policies by amending sections of the United States Housing Act of 1937. HUD published the HOTMA final rule on February 14, 2023, and has authorized public housing authorities (PHA) to implement several aspects of HOTMA.
HUD Publications
Click the links below for notices published by HUD regarding PHA authorized HOTMA changes.
Authorized HOTMA Changes affecting Recertifications
HUD has authorized PHA’s to implement several HOTMA changes that will affect how the PHA handles annual recertifications. Here is a summary of the most impactful changes:
HACA has implemented the following HOTMA policies effective January 1, 2024:
- Stopped providing the Earned Income Disallowance (EID) to new families
- Any income currently being excluded through EID will end no later than 12/31/2025.
- Started using the new HUD authorization Form 9886-A as part of the annual recertification packet.
Beginning with annual recertifications effective July 1, 2025, and later, HACA must apply the following HOTMA changes:
- New definition of the following terms: family, dependent, minor, and foster child and foster adult.
- New definitions of “earned income” and “unearned income”.
- New definitions of “day laborer” and “independent contractor”
- New definition of “health and medical care expenses”
- New income/asset exclusions including, but not limited to:
- Non-recurring income sources
- Home Care Payments for a family member(s) with one or more Disabilities
- Income received by IHSS to care for a family member living in the subsidized unit is now excluded.
- Student Financial Assistance
- New calculation when assistance is received from Higher Education Act (HEA) funds
- Veteran’s regular aid and Attendance
For more detailed information, and the full list of income exclusions, click HERE.
Policies related to authorized HOTMA changes will be updated in HACA’s Administrative Plan after Board approval in June 2025.
Continue to visit this webpage for HOTMA related updated.
