HOTMA ended the era of indefinitely over-income households in public housing. The framework now runs on a defined income threshold and a clock.
The threshold and the clock
A public housing family is "over-income" when income exceeds the applicable limit (set at 120% of area median income, with HUD adjustments for high- and low-cost areas). Once a family exceeds it, a two-year clock starts. If they remain over-income for two consecutive years, the PHA must either terminate the tenancy within six months or charge the alternative rent — the higher of fair market rent or the subsidy-cost-based amount.
What PHAs must track
- Income limit determinations at each reexamination against the current over-income limit
- The date a family first exceeded the limit (the clock's start)
- Notices to the family at the required points
- The action taken at the two-year mark, documented
Where compliance breaks
The findings pattern is predictable: PHAs that identify over-income families but never start or track the clock; clocks that reset incorrectly when income dips briefly; and missing notices. The rule is mechanical — the failures are recordkeeping.
Policy requirements
Your ACOP must reflect the over-income framework, including which option (termination vs. alternative rent) your PHA applies and how notices flow.
Tracking a specific over-income case? 59AI answers public housing HOTMA questions instantly — $19.99/month.
FAQ
Does a brief income spike start the clock? The determination is made at examination against the over-income limit; consult the current rule for how intervening dips are treated before resetting anything.
Do these rules apply to Section 8? This framework is specific to public housing; assisted multifamily and HCV follow their own HOTMA provisions.
59AI's accredited courses cover HOTMA across every program type.