The U.S. Department of Housing and Urban Development (HUD) recently announced significant updates to the Housing Opportunity Through Modernization Act (HOTMA) that will take effect on January 1, 2025. These changes impact various programs, including Public and Indian Housing, Section 8 Project-Based, RAD, Vouchers, Low-Income Housing Tax Credits (LIHTC), HOME, Trust Fund, and Rural Development 515. Whether you’re involved in public housing, rental assistance, or affordable housing initiatives, understanding these updates is crucial for effective compliance and management.
What is HOTMA?
The Housing Opportunity Through Modernization Act of 2016 (HOTMA) was enacted to streamline and modernize various aspects of HUD’s housing programs. HOTMA introduced new provisions to improve the efficiency of public housing and Section 8 programs, enhance rental assistance, and ensure better use of resources. Over the years, HUD has continued to adjust and update HOTMA to reflect economic changes and to make the regulations more effective.
Key Changes for 2025
As of January 1, 2025, HUD will implement the following updates to HOTMA
- Asset Limitation Increase for Public Housing and Section 8:
- The asset limitation for individuals participating in Public Housing and Section 8 programs will increase from $100,000 to $103,200. This adjustment accounts for inflation and aims to provide more flexibility to households with modest savings.
- Self-Certification and Imputed Income Changes
- The threshold for self-certification of assets, imputing income from assets, and counting assets from unnecessary personal property will rise from $50,000 to $51,600. This change affects participants in HUD, Low-Income Housing Tax Credit (LIHTC), and other similar programs, making it easier for households with limited assets to navigate the certification process.
- Deductions for Minors, Students, and the Elderly
- The deductions and income exclusions for minors, full-time students, and adoption assistance will remain unchanged at $480 for 2025. Similarly, the elderly deduction will continue to be $525. These stable figures help maintain consistency in determining income eligibility and benefits.
- Passbook Rate Increase
- The passbook rate, used to estimate income from assets when actual income information is unavailable, will increase from 0.4% to 0.45%. This slight adjustment reflects changes in economic conditions and ensures a more accurate calculation of imputed income from assets.
Get Trained on HOTMA with Spectrum Seminars
Staying updated on these changes is crucial for compliance and effective management within the affordable housing sector. Spectrum Seminars offers live HOTMA training seminars across the U.S., where you can learn more about these updates in detail. To make this training more accessible, we’ve lowered the cost from $500 to $200 per person. Whether you’re interested in HOTMA training or seeking certification through our C3P Tax Credit Training to become a Certified Credit Compliance Professional, Spectrum Seminars has you covered.
Visit Spectrum Seminars to find out where our upcoming seminars are being held and secure your spot today. Don’t miss this opportunity to enhance your knowledge and ensure you’re fully prepared for the 2025 HOTMA changes.
