Since HUD announced an extension of the deadline to fully implement HOTMA (to January 1, 2025), we have been fielding a variety of HOTMA questions from our customers.
In response, I'll be sending out new HUDBlasts to provide answers to commonly asked questions. We will be covering all of the latest news in all three HOTMA Today 2024 classes beginning in February. PLEASE NOTE THAT THE FEBRUARY CLASS IS ALMOST SOLD OUT.
HOTMA introduces a change to the Streamlined Verification of Assets that many owner/agents are excited to embrace. The biggest change, that owner/agents may implement now or when site software is updated, is that, when the net cash value of assets totals $50,000 or less, owner/agents may choose to conduct third-party verification of the cash value of the assets and income from the assets once every three years instead of every year. Owner/agents may accept self-certification of assets and income from assets in the subsequent two years.
Prior to 1/1/2024 and the implementation of HOTMA, HUD allowed owner/agents to use Streamlined Verification of Assets when the net cash value of assets totaled $5,000 or less.
Until site software is updated, owner/agents will use the same method to determine income from assets.
For those of you who wish to start using Streamlined Verification of Assets, we offer a Self-certification Form as part of our HOTMA FASTForms Package or you may purchase the Self-Certification Asset FASTForm individually.
Once site software is updated, you will note that Included Assets and Determination of Income from Assets will change.
Another exciting change!!! When verifying the cash value of checking accounts, owner/agents may use a single, current bank statement rather than collecting six bank statements and determining an average balance.
Many owner/agents have expressed a desire to collect more than one statement and, if you want to do so, there is nothing prohibiting you from establishing your own policy and collecting one, two or three current consecutive statements. Just remember, you should have a formal policy and it must be applied consistently.
We will provide more information in our HOTMA Today 2024 class.
We will also issue more information in the coming months, as we get closer to site software release dates.
Confused? Need more information? We will be talking about this, and other HOTMA implementation strategies, in the HOTMA Today 2024 Online Training Workshops offered in February and March.