Know Your Limits: Income & HOTMA Final Rule

Know Your Limits: Income & HOTMA Final Rule

Last updated on June 19th, 2023

On May 15, 2023, new income limits – which are used to define low-income status and eligibility for many HUD housing assistance programs – took effect.  Limits are based on the 2021 American Community Survey (ACS), since the 2020 collection data did not meet the Census Bureau’s Statistical Data Quality Standards largely due to the impacts of COVID. This resulted in the release of the new income limits six weeks later than usual.

To see the income limits for New York, click here. For Multifamily Tax Subsidy Projects (MTSP) Income limits, click here.  For HOME Income limits (which take effect June 15, not May 15), click here.

A BETA test version of the Novogradac Rent & Income Limit Calculator© is available for “the use of housing professionals who have an understanding of income and rent limits and the program requirements for each program.”

In addition, on February 14 of this year, the final rule for the Housing Opportunity through Modernization Act of 2016 (HOTMA) provisions 102, 103 and 104 was issued. As noted by the National Low Income Housing Coalition, changes to:

  • Section 102 affect how assisted households’ income and assets are calculated for them to gain admission to and remain in assisted housing.
  • Section 103 incorporate a new rule for public housing households whose income exceeds the maximum allowed (a.k.a. over-income provisions). Additional guidance was issued in March.
  • Section 104 provide guidance on recertifying a household’s income.

Changes affect those assisted through Public Housing, House Choice Voucher, Section 8 Project-Based Rental Assistance, Section 102 Supporting Housing for the Elderly, Section 811 Supportive Housing for Persons with Disabilities, HOME Investment Partnerships (HOME), and Housing Trust Fund programs.

Mark your calendar with these important dates related to the final rule:

  • March 16, 2023 Over-income provisions in Section 103 for PHAs administering the Public Housing program took effect.
  • June 14, 2023 PHAs must implement over-income requirements and policies. (See the Section 103 Fact Sheet for more information.)
  • January 1, 2024 PHAs must implement the income and asset changes in Sections 102 and 104.

For additional resources, including recorded training webinars, visit the U.S. Department of Housing and Urban Development HOTMA Resources webpage.

While you’re getting acquainted with the new income limits and HOTMA final rule, RBT CPAs can help lighten your load by partnering with you on your accounting, tax, audit, and advisory requirements. We’re a leading CPA firm in the Hudson Valley and believe we succeed when we help our clients succeed. Plus, you can be 100% confident that your confidential data is only being handled by our local employees – we don’t outsource or offshore. To learn more, give us a call.

 

Important Note: RBT CPAs is not a law firm. Should you need legal guidance on income limits or the HOTMA Final Rule, it’s best to consult your legal resources.