Message of the Month
*Are you planning on implementing the 2027 HOTMA updates or have you implemented the 2026 HOTMA changes of 0.40% Passbook Rate, the $550 Elderly Deduction, or the $500 Dependent Deduction? If so, you must update Item 109 (TTP before Override) on the Form HUD-50059 to reflect what the TTP would have been under pre‑HOTMA rules. When the HOTMA-calculated TTP differs from the pre‑HOTMA TTP, the Rent Override function is required. Item 108 (TTP) should reflect the revised HOTMA calculation, while Item 109 must reflect the pre‑HOTMA TTP used for comparison. Please refer to HUD guidance in Rent_Override.pdf (https://www.hud.gov/sites/dfiles/Housing/documents/Rent_Override.pdf) for full requirements.
*HOTMA Compliance Deadline has been extended, again! On 12/18/25, HUD released Notice H 2025–07 –HSGN-07.pdf (https://www.hud.gov/sites/default/files/hudclips/documents/HSGN-07.pdf), which is extending the deadline for compliance with Sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 to January 1, 2027. You may continue to use the current pre-HOTMA regulations to process your certifications, and we encourage you to not make Tenant Rent Override changes to your certs in your software and to wait until all of the spec changes for 203A/HOTMA have been fully implemented with TRACS and site software, since we have no approved forms or MAT guide that have been released. If you have any questions related to HOTMA and or its compliance, HUD encourages you to contact them at: MFH_HOTMA@hud.gov. Although HUD has not issued an extension, EPS believes that there will be an extension of the January 1, 2027 requirement.
*NEW HUD released the 2027 Inflationary Adjustments – Inflationary Adjustments for HUD Housing Programs | HUD USER (https://www.huduser.gov/portal/datasets/inflationary-adjustments-notifications.html)
- Eligibility restriction on net family assets will increase from $105,574 to $ $109,797. Asset limitations for Section 8 PBRA, 202/8, HCV, Public Housing, Section 8 Mod Rehab, Section 8 Mod Rehab SRO, HOPWA
- Threshold for cash value of non-necessary personal property to be included in net assets will increase from $52,787 to $54,898. Annual income for Section 8 PBRA, 202/8, 202/811 PRAC, 236 IRP, 811 PRA, SPRAC, HCV, Public Housing, Section 8 Mod Rehab, Section 8 Mod Rehab SRO, HOPWA, HOME, HTF
- Deduction for each dependent will increase from $500 to $525. Adjusted income for Section 8 PBRA, 202/8, 202/811 PRAC, 236 IRP, 811 PRA, SPRAC, HCV, Public Housing, Section 8 Mod Rehab, Section 8 Mod Rehab SRO, HOPWA, HOME, HTF
- Income exclusion for earned income of dependent full-time students will increase from $500 to $525. Annual income for Section 8 PBRA, 202/8, 202/811 PRAC, 236 IRP, 811 PRA, SPRAC, HCV, Public Housing, Section 8 Mod Rehab, Section 8 Mod Rehab SRO, HOPWA, HOME, HTF
- Income exclusion for adoption assistance payments will increase from $500 to $525. Annual income for Section 8 PBRA, 202/8, 202/811 PRAC, 236 IRP, 811 PRA, SPRAC, HCV, Public Housing, Section 8 Mod Rehab, Section 8 Mod Rehab SRO, HOPWA, HOME, HTF
- Deduction for elderly and disabled households will increase from $550 to $575. Adjusted income for Section 8 PBRA, 202/8, 202/811 PRAC, 236 IRP, 811 PRA, SPRAC, HCV, Public Housing, Section 8 Mod Rehab, Section 8 Mod Rehab SRO, HOPWA, HOME
- The HUD Passbook Savings Rate will adjust from 0.40% to 0.38% as of January 1, 2027. Passbook savings rate for Section 8 PBRA, 202/8, 202/811 PRAC, 236 IRP, 811 PRA, SPRAC, HCV, Public Housing, Section 8 Mod Rehab, Section 8 Mod Rehab SRO, HOPWA, HOME, HTF
Note: If your agency/property/program administrator is not yet complying with Sections 102 and 104 of HOTMA, you will not utilize this table. Annual inflationary adjustments, the new thresholds (e.g., asset limitation), and the requirement to use this passbook rate are among the provisions of Sections 102 and 104 of HOTMA.