Overcoming Challenges: Practical Solutions for PHAs and Owners

After extensive public comments and review, the Department of Housing and Urban Development (HUD) has unveiled its final rule for implementing the Housing Opportunity Through Modernization Act (HOTMA). Signed into law in 2016, HOTMA makes numerous changes to the statutes governing HUD’s rental assistance programs, including Section 8, as well public housing, with the goal of streamlining administration and easing the burden on private owners and public housing authorities (PHAs).

The changes under HOTMA touch upon multiple areas, including standards for income determination, resident self-certification, and interim re-examinations One reason that it’s important to align the different regulations is that many PHAs operate more than traditional public housing. They also have units that have converted to Section 8 under the Rental Assistance Demonstration program, low-income housing tax credit developments, and other properties.

The new rule helps raise the standard deduction for everyone but then also raises the threshold above which public housing and Section 8 residents can deduct additional medical expenses, according to Douglas Rice, special policy adviser at HUD.

 “It reduces the amount of paperwork and figuring out the medical deductions for those households,” he says. The Final Rule implementing Sections 102, 103, and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA) delivers important benefits to tenants and reduces administrative burdens for public housing agencies (PHAs), multifamily housing owners (MFH owners), and participating jurisdictions.

There are a number of changes here that are of piece. It’s around streamlining and aligning the public housing and multifamily programs, so they will have implications for owners. They will also have implications for residents, overall making things like income determinations and asset tests easier to implement and simpler to do. It will also encourage asset building among residents, to make it easier for them to accumulate wealth and to fulfill the promise that affordable housing has always offered of giving people a platform upon which to build economically.

Webinar Objectives

This webinar by Paul Flogstad aim to comprehensively cover the changes introduced by the new ruling under the Housing Opportunity Through Modernization Act (HOTMA) that benefit tenants and simplify processes for landlords. These changes consolidate various rules into one standard, enhancing efficiency and clarity in program administration.

Additionally, paul will discuss how several improvements will be adjusted for inflation over time, reducing the need for frequent updates. While the final rule is pending publication in the Federal Register, it's crucial to note that different components of HOTMA have varying start times, with key rules related to tenant income and assets taking effect in 2024. This timeline provides Public Housing Authorities (PHAs), the Department of Housing and Urban Development (HUD), and owners with an opportunity to prepare, including making necessary changes to their IT systems.

Join us as we delve into these changes in detail, providing insights to help you maintain compliance with this evolving program.

Webinar Highlights

• Simplified Income Reviews: Learn how the self-certification process can streamline income verification, reducing paperwork and administrative burden.
• Streamlined Verification: Discover best practices for streamlining verification processes, ensuring accuracy while saving time.
• Use of Income Determinations from Other Programs: Understand how aligning income determinations can improve efficiency and accuracy across programs.
• Increased Standard Deduction: Explore how the increase in standard deduction benefits both tenants and landlords, promoting compliance and ease of reporting.
• Medical Disability Expenses: Gain insights into the rules surrounding medical expense deductions for seniors and individuals with disabilities.
• Higher Threshold for Imputing Income: Learn about the impact of the higher threshold for imputing income on residents and program administration.
• Hardship Relief: Discover how the final rule provides hardship relief for vulnerable individuals, ensuring they receive necessary assistance.
• Asset Limits: Understand the changes to asset limits and how they affect eligibility and program participation.
• Exclusions to Income: Explore the clarifications on income exclusions, ensuring accurate income calculations and eligibility determinations.
• Q&A Session: Get your questions answered and gain further insights into the implications of the HOTMA final rule for your organization.

Who Should Attend

• Individuals involved or interested in housing policies, public housing agencies (PHAs)
• Multifamily housing owners (MFH owners)
• Policymakers
• Advocacy groups working on housing and disability issues
• Senior citizen organizations
• Social Worker
• Anyone concerned about the welfare and rights of seniors and people with disabilities in relation to housing and medical expense deductions.