Norfolk Redevelopment and Housing Authority

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HOTMA Changes May Affect Your Rental Assistance Beginning Jan. 1, 2027

NRHA HOTMA informational graphic explaining changes under the Housing Opportunity Through Modernization Act that take effect Jan. 1, 2027. The graphic advises residents and Housing Choice Voucher participants to report income changes immediately and outlines new asset limits, recertification requirements, income calculation methods, and deduction updates that may affect rental assistance.

Attention NRHA Residents and Housing Choice Voucher Participants!
Upcoming HOTMA Changes Could Affect Your Rental Assistance

What is HOTMA?

A 2016 federal law that altered many of HUD’s Public Housing and HCV rules to allow changes that modernize, simplify and standardize how housing authorities and owners determine eligibility, calculate income and rent, and process recertifications.

When do new changes go into effect?

This goes into effect on Jan. 1, 2027.

What should residents and HCV participants do?

Immediately report income decreases or increases to your property management office/HCV case manager. Failure to do so could result in lease and program violations.

Be on the lookout for notices of upcoming informational meetings.

What does this mean for NRHA residents and HCV participants?

  • New asset limits of $50,000 or more for assisted households must be reported and verified.
  • Limits on assistance for families with substantial assets or certain real property ownership above HUD’s threshold of $100,000 may be ineligible for assistance at new admission.
  • Income decreases must be reported immediately. Income increases may be reviewed based on program guidelines and may not result in an immediate rent change.
  • Annual recertifications will be calculated using the previous 12-month period. That means a household’s actual income received during the previous 12 months will be calculated instead of projecting future income prior to HOTMA.
  • Updated medical and disability expense deductions will go from 3% to tiers of 5%, 7.5%, and 10%.
  • Elderly and disabled family deduction will increase to $525.

For more information or questions, please contact your HCV case manager and/or property manager.