Closing the 2025 Chapter What the HOTMA Transition Means for You

Affording Housing and HOTMA Compliance

Background:

This class explains the differences between the original 2016 HOTMA law and the proposed 2025 updates. Since taxation rules for low-income residents will change, the IRS must revise its guidance and processing procedures.

The Housing Opportunity Through Modernization Act (HOTMA), passed in 2016, is primarily managed by the U.S. Department of Housing and Urban Development (HUD). The new updates significantly change the original law, requiring HUD staff to create new protocols and auditing procedures.

HOTMA was designed to simplify procedures for people relying on Public Housing and Section 8 programs. Although it will eventually streamline processes, there will be a learning curve. HUD staff face challenges in assisting people without finalized regulations.

The phased-in implementation began in 2017 and will continue to accommodate the recent updates. Full implementation is now expected on January 1, 2026.

The main updates include higher asset limits and increased certification thresholds. These changes will slightly reduce HUD’s administrative workload and shorten the time residents spend having their assets verified by third parties.

Income calculations will now be based on the previous year, simplifying the process and reducing errors in calculations and decision-making.

The 2025 updates will change deductions for elderly residents and those who are physically, mentally, or emotionally disabled. Medical expense deductions will also change. The passbook rate (expected income from assets) will increase. There will be gradual relief from medical expenses, and the deduction rates for both students and minors will change.

Adoption expense deductions will also change. Foster youth will now receive consideration under the new plan up to age 24. This is similar to the Affordable Care Act (Obamacare), which allows children to stay on their parents’ health insurance until age 26 (instead of 22).

The updates also clarify income exclusions. Every existing tenant will need to sign a new HOTMA lease, but less frequently. HUD can now begin enforcing HOTMA more effectively, as the transition phase nears completion.

The class will also cover the impact of HOTMA and LIHTC updates on compliance, HUD program efficiency, and successful implementation. It will include best practices for auditing tenant eligibility, covering initiation, authorization, organization, funding, audit execution, reporting, and corrective actions.

The session will describe documentation and reporting requirements under the new rules. As with all new laws, staff must be trained on the changes and how to apply them at the micro level.

Some training will be provided by independent contractors, which means procurement staffing will temporarily increase during the learning phase.

Training will also cover the removal of the earned income disregard program.

This class will discuss the challenges and certainties landlords face when renting to public housing tenants, including income loss due to fewer potential tenants, lower rent, higher turnover costs, and decreased property equity.

The 2025 updates could reduce the number of vouchers issued, making it harder for low-income residents to pay rent and possibly leading to homelessness and employment difficulties.

The new rules are complex and can be hard to interpret, making it more challenging for HUD employees to work efficiently. This can lead to frustration and performance issues.

The changes will also affect agencies like the IRS, USDA, and state and local organizations managing Section 8 and public housing programs. These agencies, required to follow HUD’s criteria, must now create new guidance reflecting these rules.

HOTMA was passed in 2016, managed by HUD, and aimed to help low-income individuals in Public Housing and Section 8. HUD began implementing HOTMA between 2017 and 2023, and published the final rule for key sections in 2023, effective January 1, 2024. Full implementation is expected on January 1, 2026.

Why should you Attend?

• INVESTORS: Property owners who rent to Section 8 tenants could lose income due to fewer potential tenants, lower rent, and reduced property equity.
  
  
  
• TENANTS: The 2025 updates may result in fewer vouchers, making it harder for low-income families to pay rent or mortgages.
  
  
  
• HUD EMPLOYEES AND CONTRACTORS: The complex 2025 rules will make their jobs harder and less efficient.
  
  
  
• OTHER FEDERAL, STATE, AND LOCAL AGENCIES: The changes will affect organizations like the IRS, USDA, Housing Trust Fund, and Housing Opportunities for Persons with AIDS.

Areas Covered in the Session:

• Changes in calculation methods for tenant eligibility
• Best practices for eligibility audits
• Identification of new documentation requirements
• Requirements for additional training for HUD staff
• Requirements for subsidized HOTMA housing
• Changes to income, asset, and rent limits
• Removal of earned income disregard program
• Extended compliance deadline
• How these changes affect landlords
• How these changes affect tenants
• How these changes affect the IRS
• How these changes affect the USDA

Learning Objectives:

• Understand Section 8 and public housing legislation
• Understand the 2016 HOTMA legislation
• Know what the 2025 changes are
• Understand how these will affect low-income residents
• Understand how these changes affect tenants with increased income
• Know why these changes will affect the IRS
• Know how these changes will affect the USDA

Who will Benefit?

• Accountants
• Architects
• Attorneys (family law)
• Attorneys (tenant rights)
• Attorneys (taxation)
• Building inspectors
• Civil/structural engineers
• Health departments
• HUD leadership team
• HUD purchasing agents
• HUD staff
• Instructors
• Insurance companies
• IRS staff
• Lenders
• Maintenance staff
• Real estate investors
• Realtors
• Social workers
• Tenant advocacy groups
• Training managers
• USDA staff

Target Associations/Societies

• American Association of Retired Persons
• American Institute of Architects
• American Society of Civil Engineers
• Equal Employment Opportunity Commission
• HUD
• IRS
• Local housing authorities
• National Association of Realtors
• National Real Estate Association
• State Housing Authorities
• USDA
• IRS

Speaker Profile:

Keith Warwick, PE
Civil Engineer

EDUCATION:

• Bachelor of Science in Civil Engineering, University of California at Davis
  

LICENSES:

• California: Professional Civil Engineer
• Illinois: Professional Engineer
• New York: Professional Engineer
  

ENGINEERING EXPERIENCE:

• Owner, WARWICK EDUCATION AND TRAINING (2025–present)
• Webinars
• Writing
  Owner, PATTY & KEITH INC. (2011–2023)
  Civil engineering
• Real estate due diligence
• Site assessments
  Civil Engineer, Federal Government (1988–2011)
• Structural evaluations
• Environmental, safety, and health
• Civil engineering

INSTRUCTOR EXPERIENCE:

• Oakton and Kankakee Colleges: Civil Engineering (2025–present)
• LORMAN: Civil Engineering (2019–present)
• Edumind/School of P.E.: Exam preparation (2015–present)
• University of Washington: Construction Management (2017)
• Yuba College: Civil Engineering (2015–2016)

After Registration:
Once you register, you’ll receive a confirmation email with your login credentials and access to downloadable presentation materials. These resources can also be shared with your team for internal training and reference.

System Requirements:
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Audio: Use a working headset or speaker with a microphone for clear audio, especially during interactive sessions.

Session Cancellation Policy:
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What Attendees Are Saying:

Very helpful! Covered everything from listings to client relations—I feel more

confident tackling deals now. - Emily Brooks, Real Estate Broker

Really practical tips here. I love learning strategies that I can immediately apply

in property management. - Darnell Washington, Disposition Manager

Great insights! The Q&A was especially helpful—the speaker cleared all my doubts

about mortgage processes in a simple way. - Sophia Martinez, Mortgage Broker

Informative and engaging. Walked away knowing exactly what to focus on for

smoother title processing. - Kevin Patel, Title Examiner