Free Decision Sheet

The elections you must record17

1. 01Whether to enforce the $100,000 net-asset limit24 CFR 5.618(a)(1)(i), (c)/ACOP + HCV Administrative Plan

   When recertifying a family whose net assets exceed the limit, will your agency enforce the restriction, decline to enforce it, or enforce it with written exceptions?

   This is an election. HOTMA 102 bars assistance to a family whose net assets exceed $100,000 (adjusted annually by CPI-W). But § 5.618(c) lets the agency decline to enforce that at recertification, or carve out exceptions — and only if it has adopted a policy saying so. No policy means no discretion.

   • Enforce the restriction as writtenAssistance ends for families over the limit. Simplest to administer; hardest on long-tenured families who have saved.
   • Do not enforce at recertificationPermitted by § 5.618(c)(1) but only pursuant to an adopted policy. The restriction still applies at admission.
   • Enforce, with written exceptions§ 5.618(c)(3) permits criteria based on family type, age, disability, income, ability to find alternative housing, and whether supportive services are provided. Must conform to fair housing law.

   When recertifying the income of a family that is subject to the restrictions in paragraph (a) of this section, a PHA or owner may choose not to enforce such restrictions, or alternatively, may establish exceptions to the restrictions based on eligibility criteria. ... The PHA or owner may choose not to enforce the restrictions in paragraph (a) of this section or establish exceptions to such restrictions only pursuant to a policy adopted by the PHA or owner.

   The chapter must state the election, and if exceptions are chosen, list the eligibility criteria explicitly. § 5.618(c)(3) allows separate treatment by family type; the policy must say which factors it uses rather than leaving it to staff judgment.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

2. 02Real-property ownership restriction and its exceptions24 CFR 5.618(a)(1)(ii), (a)(2), (b)(2)/ACOP + HCV Administrative Plan

   How will your agency apply the bar on assisting a family that owns real property suitable for occupancy?

   This is an election. The rule itself lists four exceptions (homeownership-option property, jointly-owned property where the non-household co-owner lives there, victims of domestic violence, and property offered for sale) and five grounds on which a family can show a property is NOT suitable. Staff need written guidance on how a family demonstrates each, and on whether the agency accepts a self-certification of no ownership.

   • Accept a family self-certification of no ownership interestExpressly permitted by § 5.618(b)(2). Lowest administrative burden.
   • Verify ownership through a records checkHigher burden; the rule does not require it.
   • Accept self-certification, verify on a defined sample or triggerThe policy must define the sample or trigger rather than leaving it to staff discretion.

   A property will be considered “suitable for occupancy” under paragraph (a)(1)(ii) of this section unless the family demonstrates that it: (i) Does not meet the disability-related needs for all members of the family ...; (ii) Is not sufficient for the size of the family; (iii) Is geographically located so as to be a hardship for the family ...; (iv) Is not safe to reside in because of the physical condition of the property ...; or (v) Is not a property that a family may reside in under the State or local laws of the jurisdiction where the property is located.

   Whatever is chosen, the chapter must also carry the § 5.2007 confidentiality handling for a family asking about the domestic-violence exception — the agency MUST accept a self-certification there and may not demand more.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

3. 03Delay before eviction or termination for asset noncompliance24 CFR 5.618(d)/ACOP + HCV Administrative Plan

   Will your agency use the permitted delay before starting eviction or termination for a family over the asset limit, and for how long?

   This is an election. The rule caps the delay at six months but sets no floor and requires no delay at all. An agency with no stated period will be asked by its auditor what it does, and inconsistent answers across families are a fair-housing exposure.

   • No delay — proceed immediatelyPermitted.
   • Delay the full 6 monthsThe maximum the rule allows.
   • A shorter stated periodState the number of months in the policy so it is applied uniformly.

   The PHA or owner may delay for a period of not more than 6 months the initiation of eviction or termination proceedings of a family based on noncompliance under this provision unless it conflicts with other provisions of law.

   State the period as a fixed number of months, not 'up to six months at the discretion of the Executive Director' — a discretionary ceiling is not a policy and invites inconsistent application.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

4. 04Self-certification of net family assets at or under $50,00024 CFR 5.618(b)(1); 24 CFR 982.516(a)(3)/ACOP + HCV Administrative Plan

   Will your agency accept a family's declaration that its net assets are $50,000 or less without further verification?

   This is an election. This is the single biggest workload lever in HOTMA 102. Accepting the declaration removes asset verification for most families. The threshold is adjusted annually by CPI-W, so the policy should reference the adjusted amount rather than hard-code $50,000.

   • Accept the declaration without further verificationFor HCV, § 982.516(a)(3) still requires third-party verification of all family assets every 3 years.
   • Verify assets for every family regardlessPermitted, but forgoes the workload relief HOTMA was written to give.

   A PHA or owner may determine the net assets of a family based on a certification by the family that the net family assets (as defined in § 5.603) do not exceed $50,000, which amount will be adjusted annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, without taking additional steps to verify the accuracy of the declaration. The declaration must state the amount of income the family expects to receive from such assets; this amount must be included in the family's income.

   Two things must appear in the chapter and are routinely missed: the declaration must state the income the family expects from those assets (and that income still counts), and for HCV the 3-year third-party verification cycle under § 982.516(a)(3) still runs.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

5. 05Permissive additional deductions from annual income24 CFR 5.611(b)(1)/ACOP + HCV Administrative Plan

   Will your agency adopt any additional deductions from annual income beyond the mandatory ones?

   This is an election. HOTMA lets a PHA adopt its own deductions, but it must absorb the cost: no increase in Capital Fund or Operating Fund formula grants for public housing, and no increase in HCV renewal funding. For a small agency this is usually a decision to decline, and the file should show it was considered.

   • Adopt no additional deductionsThe common election. The chapter should still say so explicitly.
   • Adopt one or more additional deductionsRequires a written policy (public housing) or inclusion in the Administrative Plan (HCV), and the agency funds the cost itself.

   For public housing, the Housing Choice Voucher (HCV) and the Section 8 moderate rehabilitation programs ... a PHA may adopt additional deductions from annual income. (i) Public housing. A PHA that adopts such deductions will not be eligible for an increase in Capital Fund and Operating Fund formula grants based on the application of such deductions. The PHA must establish a written policy for such deductions.

   If none are adopted, say so in one sentence rather than omitting the topic — an absent section reads to an auditor as an unmade decision.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

6. 06Definition of hardship and of inability to pay rent24 CFR 5.611(e)(1)/ACOP + HCV Administrative Plan/WRITTEN POLICY REQUIRED

   How will your agency define what constitutes a hardship, including a family's inability to pay rent?

   A written policy is required here. This one is not optional. The regulation requires the responsible entity to establish the policy. An agency that adopts the hardship relief provisions without defining the terms they turn on has an unenforceable chapter.

   • A stated rent-burden thresholde.g. rent exceeding a defined share of monthly adjusted income. Objective and easy to apply consistently.
   • An enumerated list of qualifying circumstancese.g. loss of employment, death in the household, a documented increase in medical expense.
   • Both — a threshold plus an enumerated listMost defensible: an objective floor with named circumstances that also qualify.

   Responsible entity determination of family's inability to pay the rent. The responsible entity must establish a policy on how it defines what constitutes a hardship under paragraphs (c) and (d) of this section, which includes determining the family's inability to pay the rent, for purposes of determining eligibility for a hardship exemption under paragraph (d) of this section.

   § 5.611(e)(2) additionally requires prompt WRITTEN notice to the family of the changed adjusted income and rent, and of when the exemption begins and expires. The notice obligation belongs in the same chapter section as the definition.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

7. 07Extending health/medical and attendant-care hardship relief24 CFR 5.611(c)(2)(ii)/ACOP + HCV Administrative Plan

   Will your agency extend general hardship relief beyond the initial 90 days, and in how many additional periods?

   This is an election. HOTMA raised the health and medical expense deduction threshold from 3% to 10% of annual income. General hardship relief drops the family back to a 5% threshold, but it expires after 90 days unless the agency extends it — and extension is discretionary, in 90-day blocks.

   • No extension — relief ends at 90 daysPermitted. Note the family may reapply if circumstances change again.
   • Extend in 90-day periods while the condition continuesRequires re-verification at each renewal; state what evidence is required.
   • Extend, up to a stated maximum number of periodsState the cap in the policy.

   The family will receive a deduction for the sum of the eligible expenses in paragraph (a)(3) of this section that exceed 5 percent of annual income. ... The family's hardship relief ends when the circumstances that made the family eligible for the relief are no longer applicable or after 90 days, whichever comes earlier. However, responsible entities may, at their discretion, extend the relief for one or more additional 90-day periods while the family's hardship condition continues.

   Keep this distinct from the phase-in relief at § 5.611(c)(1), which is a separate, non-discretionary transition for families who held the deduction at the 3% threshold as of 1 January 2024 and steps 5% → 7.5% → 10% over 24 months. The pack writes both, and conflating them is the most common drafting error in this area.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

8. 08Extending the child care expense deduction hardship exemption24 CFR 5.611(d)/ACOP + HCV Administrative Plan

   Will your agency extend the child care deduction hardship exemption beyond the initial 90 days?

   This is an election. A family losing the child care deduction can ask to keep it if it cannot pay the rent without it and the expense is still necessary. The exemption runs up to 90 days; extending it is the agency's call.

   • No extension beyond 90 daysPermitted.
   • Extend in additional 90-day periodsState what the family must demonstrate at each renewal.

   The hardship exemption and the resulting alternative adjusted income calculation must remain in place for a period of up to 90 days. Responsible entities, at their discretion, may extend such hardship exemptions for additional 90-day periods based on family circumstances.

   The family must show BOTH that it cannot pay the rent without the deduction AND that the child care expense is still necessary even though the family member is no longer employed or in school. Both limbs belong in the chapter.

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

9. 09Interim reexamination threshold for income decreases24 CFR 960.257(b)(2); 24 CFR 982.516(c)(2)/ACOP + HCV Administrative Plan

   Will your agency use the 10% floor for declining an interim reexamination on a decrease, or a lower threshold?

   This is an election. The agency MAY decline an interim reexamination when it estimates the family's adjusted income will fall by less than 10%. Setting a lower threshold means processing more interims and giving relief to more families sooner; keeping 10% means less work.

   • Decline below a 10% decreaseThe regulatory default and the lightest workload.
   • Adopt a lower thresholdState the percentage. More interims to process, faster relief to families.
   • Conduct an interim on any decreaseMost generous; heaviest workload. Effectively a 0% threshold.

   The PHA may decline to conduct an interim reexamination of family income if the PHA estimates the family's adjusted income will decrease by an amount that is less than ten percent of the family's annual adjusted income (or a lower amount established by HUD by notice), or a lower threshold established by the PHA.

   Note the direction of the discretion: the agency may decline BELOW the threshold, and must conduct AT OR ABOVE it. A chapter that says 'interims are conducted for decreases of 10% or more' is correct; one that says 'decreases under 10% are not considered' overstates it, because a family may still request one under § 960.257(b)(1).

   Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

10. 10Counting earned-income increases after an interim decrease24 CFR 960.257(b)(3)(i); 24 CFR 982.516(c)(3)(i)/ACOP + HCV Administrative Plan

    After processing an interim decrease, will your agency consider subsequent increases in earned income within the same reexamination cycle?

    This is an election. HOTMA generally bars counting earned-income increases between annual reexaminations. The public housing rule opens one narrow exception — but only on the agency's established written policy. No policy, no exception.

    • Never count earned-income increases between annualsSimplest, and the strongest work incentive.
    • Count them only after an interim decrease in the same cycleThe exception the rule permits. Requires the written policy to exist first.

    The PHA may not consider any increase in the earned income of the family when estimating or calculating whether the family's adjusted income has increased, except that, based on the PHA's established written policy, the PHA may consider increases in earned income if the PHA has processed an interim reexamination for a decrease in the family's income under paragraph (b)(1) of this section within the same annual or biennial reexamination cycle.

    The public housing wording (§ 960.257) and the HCV wording (§ 982.516) differ slightly in how the exception is framed. A Combined agency should not copy one chapter into the other verbatim — the pack writes each from its own citation.

    Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

11. 11Interim reexaminations in the last three months of the certification period24 CFR 960.257(b)(3)(ii); 24 CFR 982.516(c)(3)(ii)/ACOP + HCV Administrative Plan

    Will your agency conduct interim reexaminations for income increases during the final three months of a family's certification period?

    This is an election. Declining these avoids doing an interim and then an annual within weeks of each other. The public housing rule conditions the choice on the agency having an established written policy.

    • Do not conduct interims in the last three monthsAvoids duplicated work immediately before the annual.
    • Conduct them regardlessPermitted; more accurate rents, more processing.

    The PHA may choose not to conduct an interim reexamination in the last three months of a family's certification period, in accordance with the PHA's established written policy.

    This election covers increases the agency becomes aware of. A family may still request an interim under § 960.257(b)(1) at any time, including in the final three months.

    Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

12. 12When families must report changes in income or composition24 CFR 960.257(b)(5)/ACOP + HCV Administrative Plan/WRITTEN POLICY REQUIRED

    What will your agency require families to report, and within what time?

    A written policy is required here. Required, not optional — and it is load-bearing. Whether a rent increase is applied prospectively or retroactively turns on whether the family reported 'in a timely manner according to the PHA's policies'. With no policy there is no such thing as an untimely report, and the retroactive provisions cannot be applied at all.

    • Within 10 calendar days of the changeState the count and whether it is calendar or business days.
    • Within 30 calendar days of the changeMore forgiving; fewer retroactive increases.
    • Another stated periodState it precisely; 'promptly' is not a period.

    The PHA must adopt policies consistent with this section prescribing when and under what conditions the family must report a change in family income or composition.

    State the reporting window, the method (in writing / on a form / by portal), and what counts as the date of the change. These three feed directly into the effective-date rules at § 960.257(b)(6).

    Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

13. 13Retroactive application of rent decreases24 CFR 960.257(b)(6)(ii), (iii); 24 CFR 982.516(c)(4)(ii)/ACOP + HCV Administrative Plan

    When a family reports late, will your agency apply the resulting rent decrease retroactively?

    This is an election. Late reporting makes rent INCREASES retroactive automatically. Making decreases retroactive is discretionary and only available under conditions the agency has written down.

    • Never apply decreases retroactivelyDecrease takes effect no later than the first rent period after the reexamination is completed.
    • Apply retroactively under stated conditionsState the conditions. § 960.257(b)(6)(iii) caps how far back it may reach.
    • Always apply retroactivelyMost generous to families; still bounded by the (b)(6)(iii) floor.

    However, a PHA may apply rent decreases retroactively at the discretion of the PHA, in accordance with the conditions established by the PHA in written policy and subject to paragraph (b)(6)(iii) of this section.

    § 960.257(b)(6)(iii) is a hard floor whatever the election: a retroactive decrease may not reach earlier than the later of the first of the month following the date of the change, or the effective date of the family's most recent previous reexamination. The pack states that limit alongside the election.

    Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

14. 14Streamlined income determination for families on fixed income24 CFR 960.257(c); 24 CFR 982.516(b)/ACOP + HCV Administrative Plan

    Will your agency elect the streamlined income determination for families receiving fixed income?

    This is an election. For an agency whose population is largely elderly or disabled and on Social Security or a pension, this is the second-biggest workload lever after asset self-certification: apply a COLA rather than re-verify every source every year.

    • Elect the streamlined determinationThird-party verification of all income amounts is still required every 3 years.
    • Do not elect itFull verification every year.

    A PHA may elect to apply a streamlined income determination to families receiving fixed income, as described in paragraph (c)(3) of this section.

    The chapter must reproduce the 90% split: at 90% or more fixed income the agency applies COLAs and need not separately determine non-fixed income; below 90% it applies COLAs to each fixed source and determines everything else normally. It must also state the 3-year third-party verification cycle.

    Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

15. 15Using other means-tested programs' income determinations24 CFR 5.609(c)(3)/ACOP + HCV Administrative Plan

    Will your agency accept income determinations made for other federal means-tested programs?

    This is an election. HOTMA 102 lets an agency take a determination already made in the previous 12 months for TANF, Medicaid, SNAP, EITC, LIHTC, WIC, SSI and certain other programs, instead of re-deriving income itself.

    • Use them where availableState which programs the agency will accept from.
    • Determine income independently in all casesPermitted.

    The PHA or owner may, using the verification methods in paragraph (c)(3)(ii) of this section, determine the family's income prior to the application of any deductions applied in accordance with § 5.611 based on income determinations made within the previous 12-month period for purposes of the following means-tested forms of Federal public assistance ...

    Two limits belong in the chapter: the determination must be obtained by appropriate third-party verification, and if that verification is unavailable or the family disputes the figure, the agency must calculate income under part 5 subpart F itself.

    Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.

16. 16Continued occupancy policy for over-income families24 CFR 960.507(a), (b), (d)/ACOP/WRITTEN POLICY REQUIRED

    After 24 consecutive months over the income limit, will your agency terminate the tenancy or charge the alternative non-public-housing rent?

    A written policy is required here. There is no third option and no option to do nothing — the rule says the PHA must do one or the other, according to its continued occupancy policy. The over-income limit is 2.4 times the very-low-income limit, and the clock runs 24 consecutive months with written notices at the initial determination, 12 months and 24 months.

    • Charge the alternative non-public-housing rentThe family stays. Requires a new lease under § 960.509, executed within 60 days of the 24-month notice or at the next renewal, whichever is sooner.
    • Terminate the tenancy§ 960.507(d)(2) governs the timing.

    Families participating in the public housing program must not have incomes that exceed the over-income limit, as determined by paragraph (b) of this section, for more than 24 consecutive months. ... The over-income limit is determined by multiplying the applicable income limit for a very low-income family as defined in § 5.603(b) of this title, by a factor of 2.4.

    The three notices are where agencies actually fail this. Each is due no later than 30 days after the income examination that triggered it, each must state the consequence of continuing over-income for 24 months, and each must offer the § 966 subpart B hearing opportunity. The 12-month notice must also carry an estimate of the alternative rent if that is the agency's election. Note too that over-income families may not sit on a resident council and may not receive a utility allowance.

    Applies to public housing only. Written into your ACOP.

17. 17Whether this amendment is a significant amendment under your own criteria24 CFR 903.21(a), (b); 24 CFR 903.7(s)(2)(ii)/ACOP + HCV Administrative Plan/WRITTEN POLICY REQUIRED

    Do your agency's published significant-amendment criteria capture a HOTMA policy rewrite of this size?

    A written policy is required here. This decides whether the whole procedural chain applies. If the amendment is significant, it cannot be adopted except at a duly called board meeting open to the public, and it is subject to the Resident Advisory Board consultation and the 45-day-notice public hearing. The criteria are the agency's OWN — HUD does not set them, so nobody outside the agency can answer this for it.

    • Yes — treat it as a significant amendmentThe full chain applies: RAB consultation, 45-day notice, public hearing, board resolution.
    • No — our criteria do not capture itBoard adoption of the ACOP / Administrative Plan is still required as a matter of the agency's own governance.
    • Our criteria do not clearly address itThe safe course is to run the full process. It is far cheaper than re-adopting after a challenge.

    If the amendment or modification is a significant amendment or modification, as defined in § 903.7(r)(2), the PHA: (1) May not adopt the amendment or modification until the PHA has duly called a meeting of its board of directors (or similar governing body) and the meeting, at which the amendment or modification is adopted, is open to the public ... (b) Each significant amendment or modification to a plan submitted to HUD is subject to the requirements of §§ 903.13, 903.15, and 903.17.

    § 903.21 still cross-references paragraph (r)(2); the criteria requirement now sits at § 903.7(s)(2)(ii) after redesignation. Cite both so a reader checking the CFR does not think the citation is wrong.

    Applies to public housing and Housing Choice Voucher. Written into your ACOP and HCV Administrative Plan.