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HOTMA

The Housing Opportunity Through Modernization Act of 2016 (Pub. L. 114-201). Reforms tenant screening, income calculation, asset rules, and over-housing standards in HUD-subsidized properties. Compliance extended to January 1, 2027.

Also known as: Housing Opportunity Through Modernization Act, HOTMA 2016

Definition

The Housing Opportunity Through Modernization Act of 2016 (HOTMA; Pub. L. 114-201, 130 Stat. 782) represents the most significant reform to HUD's rental assistance programs since the 1998 Quality Housing and Work Responsibility Act.

Legislative Background

Signed July 29, 2016, HOTMA emerged from bipartisan concerns about administrative burden, housing choice limitations, and regulatory inconsistencies across HUD programs.

Core Provisions

Income and Asset Calculation (§ 102)

  • Simplified income verification: Streamlined documentation requirements
  • Asset threshold increase: Raised from $5,000 to $25,000 for imputed income calculation
  • Triennial recertification: Extended intervals for elderly/disabled households

Over-Housing Standards (§ 103)

  • Family break-up prevention: Allows continued assistance when family composition changes
  • Right-sizing flexibility: Graduated implementation for under-occupied units

Tenant Screening (§ 104)

  • Criminal background standards: Limits on lookback periods and offense types
  • Appeals process: Due process protections for adverse determinations

Implementation Timeline

Initial effective date: October 1, 2018 (§ 108) Multifamily extension: January 1, 2024 (later extended to January 1, 2027 via 89 FR 18462)

HUD issued comprehensive implementing regulations at 24 CFR Parts 5, 200, 236, 880, 881, 882, 883, 884, 886, 891, and 982 (89 FR 18324, March 14, 2024).

Sources

Frequently asked questions

What is the legal framework for HOTMA?

Signed July 29, 2016, HOTMA emerged from bipartisan concerns about administrative burden, housing choice limitations, and regulatory inconsistencies across HUD programs.

Core Provisions

Simplified income verification: Streamlined documentation requirements Asset threshold increase: Raised from $5,000 to $25,000 for imputed income calculation Triennial recertification: Extended intervals for elderly/disabled households Family break-up prevention: Allows continued assistance when family composition changes Right-sizing flexibility: Graduated implementation for under-occupied units Criminal background standards: Limits on lookback periods and offense types Appeals process: Due process protections for adverse determinations

When does HOTMA take effect?

Initial effective date: October 1, 2018 (§ 108) Multifamily extension: January 1, 2024 (later extended to January 1, 2027 via 89 FR 18462) HUD issued comprehensive implementing regulations at 24 CFR Parts 5, 200, 236, 880, 881, 882, 883, 884, 886, 891, and 982 (89 FR 18324, March 14, 2024).

Sources

Pub. L. 114-201, Federal Register (89 FR 18324) — federal-register CFR Part 5, eCFR — ecfr HUD Exchange: HOTMA — hud-exchange

Sources and citations