News

Notice PIH 2024-38: Housing Opportunity Through Modernization Act (HOTMA) Sections 102 and 104

The U.S. Department of Housing and Urban Development (HUD) has issued updated guidance to Public Housing Agencies (PHAs) on compliance with the Housing Opportunity Through Modernization Act (HOTMA) Sections 102 and 104. HUD will enforce compliance with provisions that can be accurately implemented and reported in the Inventory Management System/Public and Indian Housing (IMS/PIC) Information Center.

Key Compliance Requirements by July 1, 2025:

  • New Income Exclusions: PHAs must use the new income exclusions as specified in 24 CFR 5.609(b).
  • Updated Definitions: PHAs must adopt select definitions from 24 CFR 5.100, 5.403, and 5.603.
  • De Minimis Errors Policies: PHAs must implement policies related to de minimis errors.

Income Exclusions Table:

CategoryExclusionCFRDescription
OtherFederally Mandated Income Exclusions24 CFR 5.609(b)(22)Amounts that must be excluded by federal statute. HUD will publish a Federal Register notice that includes the qualifying benefits.
AssetsImputed Income from Assets24 CFR 5.609(b)(1)Any imputed return on an asset when net family assets total $50,000 (adjusted annually) or less and no actual income from the net family assets can be determined.
Non-recurring incomeNon-recurring income24 CFR 5.609(b)(24)Income that will not be repeated in the coming year based on information provided by the family.
Self-employmentGross Self-employment Income24 CFR 5.609(b)(28)Gross income received through self-employment or operation of a business.
DependentsMinors (children under the age of 18 years)24 CFR 5.609(b)(3)All earned income of all children under the age of 18, including foster children.
DependentsAdoption assistance payments24 CFR 5.609(b)(15)Adoption assistance payments for a child in excess of the amount of the dependent deduction.
StudentsEarned Income of Dependent Students24 CFR 5.609(b)(14)Earned income of dependent full-time students in excess of the amount of the dependent deduction.
StudentsTitle IV HEA Assistance24 CFR 5.609(b)(9)(i)Any assistance that Section 479B of the Higher Education Act (HEA) of 1965, as amended, requires to be excluded from a family’s income.
StudentsOther Student Financial Assistance24 CFR 5.609(b)(9)(ii)Student financial assistance, not excluded under the HEA, for actual covered costs of higher education.
StudentsEducational Savings Account24 CFR 5.609(b)(10)Income and distributions from any Coverdell educational savings account or any qualified tuition program under IRS section 530 or any qualified tuition program under section 529.
Baby bondsBaby bonds24 CFR 5.609(b)(10)Income earned by government contributions to, or distributions from, ‘baby bond’ accounts created, authorized, or funded by federal, state, or local government.
Foster children / adultsPayments for Foster Children / Adults24 CFR 5.609(b)(4)Payments received for the care of foster children or adults, including State kinship, guardianship care payments, or tribal kinship payments.
Foster children / adultsIncome of foster children / adults24 CFR 5.609(b)(8)Income of a live-in aide, foster child, or foster adult as defined in 24 CFR 5.403 and 5.603.
Live-in AideIncome of a Live-in Aide24 CFR 5.609(b)(8)Income of a live-in aide, foster child, or foster adult.
People with DisabilitiesABLE accounts24 CFR 5.609(b)(22)Will be included in federally mandated excluded amounts. Notice PIH 2019-09/H-2019-06 details when ABLE account income is excluded.
People with DisabilitiesState Payments to Allow Individuals with Disabilities to Live at Home24 CFR 5.609(b)(19)Payment made by an authorized state Medicaid managed care system or other state agency to a family to enable a family member to live in the family’s assisted unit.
People with DisabilitiesPlan to Attain Self-Sufficiency (PASS)24 CFR 5.609(b)(12)(i)Amounts set aside for use under a Plan to Attain Self-Sufficiency (PASS).
People with DisabilitiesReimbursements for Health and Medical Care Expenses24 CFR 5.609(b)(6)Amounts for, or in reimbursement of, health and medical care expenses for any family member.

For more detailed information, please refer to the full guidance document or call your assigned Occupancy caseworker.