The Housing Opportunity Through Modernization Act (HOTMA) brings exciting updates to HUD’s multifamily housing programs, making them more efficient, transparent, and fair for both housing providers and residents. With streamlined income calculations, modernized asset policies, and simplified recertification processes, HOTMA reduces administrative burdens while ensuring housing assistance reaches those who need it most. For property owners and managers, HOTMA reduces compliance risks, introduces self-certification options for smaller assets, and establishes a de minimis error policy, ensuring minor miscalculations don’t lead to penalties. With a focus on efficiency, HOTMA updates HUD verification processes, including the use of Enterprise Income Verification (EIV), reducing administrative workload. These changes create a more effective and responsive housing system, balancing regulatory oversight with greater flexibility for both housing providers and residents. As HUD continues to roll out updates and guidance, now is the time to prepare, adapt, and take advantage of these improvements to create stronger, more sustainable housing communities. HOTMA is here to bring modernization, opportunity, and growth to affordable housing.
• Understand the Key Changes Under HOTMA and the major modifications to HUD regulations, particularly regarding income determination, asset limitations, and recertifications.
• Identify New Income Exclusions and Deductions by recognizing the types of income that are now excluded from calculations, such as nonrecurring income, trust distributions, and gifts, and explain the revised medical expense deductions.
• Describe the Impact of HOTMA on Asset Calculations by understanding the new rules for net family assets, including imputed asset income, self-certification for assets, and the implications of asset ownership limits.
• Explain Changes to Recertification and Verification Processes by detailing how anticipated and prior-year income is used for recertifications and discuss the new policies on interim recertifications (IR), consent forms, and Enterprise Income Verification (EIV).
• Discuss Implementation and Compliance Requirements for HUD Programs by summarizing the steps that multifamily property owners need to take to comply with HOTMA regulations, including updates to policies, procedures, and required forms.
Rhanda McKown is a seasoned affordable housing professional with over 20 years of experience in the industry. Currently, she serves as Director of Affordable Housing for a non-profit organization covering four states. She spent 15 years working for a Performance Based Contract Administrator (PBCA), where she conducted Management and Occupancy Reviews across Florida and the U.S. Virgin Islands. Rhanda has developed specialized expertise in processing Auto-OCAF rent adjustments, Special Claims, Budget-Based Rent Adjustments, and Contract Renewals. Her background in HUD funded multifamily affordable housing subsidy programs is extensive, with a specialization in properties that follow HUD…