2025 COLA AnnouncedSocial Security benefits and Supplemental Security Income payments will increase by 2.5% in 2025, Social Security announced today. If owner/agents have not implemented new HOTMA requirements related to COLA increases, owner/agents will refer to HH 4350.3 Paragraph 9-6 when creating Annual Recertifications effective before 4/1/2025. 1. Use the current value shown on the EIV Income Report (which will be updated in December) 2. Use a 2025 award letter showing the change (can be used for the entire year) 3. Use Streamlined Verification of the new award amount by taking the 2024 award amount and applying the COLA. If you have adopted Streamlined Determination of Fixed Income, and if you are in Year 2 or Year 3 of Streamlining, you need only print the COLA Announcement, attach it to the EIV printout or last year's award letter and calculate the 2025 benefit amount. Remember, don't round until the end of the calculation. Example Streamlined Determination of Fixed Income: Resident’s February 2024 Annual Recertification 2024 SSA Income Richard Resident $1214.00 * 12 = $14568.00 Raquel Resident $1181.00 * 12 = $14172.00 New SSA Income with 2025 COLA (2.5%) Resident’s February 2025 Annual Recertification Richard Resident $1,214.00 + 2.5% ($30.35) = $1,244.35 $1,244.35 x 12 = $14,932.20 (1/1/2025 AR - SS Annual Income - $14,932) Raquel Resident $1,181.00 + 2.5% ($29.53) = 1210.53 $1,210.53 * 12 = $14,526.36 (1/1/2025 AR - SS Annual Income - $14,526) There is no requirement to correct completed 2025 Annual Recertifications to incorporate this change unless the household income increase equals at least $200 per month (Pre-HOTMA). Alternatively, owner/agents may implement the new HOTMA requirement to include the 2025 COLA the day after the COLA is announced - for any incomplete certifications effective in the new award year (2025). Remember, HUD has specified that, if an owner/agent has implemented a HOTMA change, the owner/agent must document the tenant file. See our free form Note To File for HOTMA Changes Implemented Before 203A Site Software available on our HOTMA Resources Page. For new Move-ins and Initial Certifications, effective after the COLA increase is announced, owner/agents should use the current SS income for the remainder of 2024 and should incorporate the COLA increase for the appropriate months in 2025. For example - using November 1, 2024 as the MI date when the current SS award is $1,115. $1,115.00 * 2 (November & December 2024) = $2,230.00 $1,115.00 + 2.5% = $1,142.88 $1,142.88 * 10 (Remaining Months in Certification Cycle) = $11,428.80 $2,230.00 + $11,428.80 = $13,658.80 SS Annual Income = $13,659 |