HOTMA Asset Limits: The $50,000 Threshold
How the HOTMA asset limitation and $50,000 self-certification threshold work, what counts as net family assets, and how to update your recertification workflow.
Altus Compliance is an independent affordable housing compliance firm providing file reviews, audit preparation, lease-up support, ongoing monitoring, and compliance oversight for LIHTC, HUD, HOME, RD, Bond, PBV, and RAD properties nationwide.
Focus areas: HOTMA asset limits, HOTMA hud, $50,000 asset threshold, HOTMA net family assets, HOTMA self-certification, HOTMA $100,000 asset limitation, HUD asset verification.
Frequently asked questions
What is the HOTMA asset limit?
HOTMA Section 104 generally prohibits assistance where net family assets exceed $100,000, adjusted annually for inflation, or where the family has a present ownership interest in real property suitable for occupancy. A separate $50,000 threshold under Section 102 determines when self-certification of assets is allowed.
Can a household self-certify assets under $50,000?
Yes. If net family assets total $50,000 or less, the owner may accept the family's signed self-certification of asset value and asset income, unless the owner has reason to believe the certification is inaccurate.
Do retirement accounts count toward the HOTMA asset limit?
Retirement accounts recognized under the Internal Revenue Code are excluded from net family assets while the funds remain in the account. Distributions are evaluated separately under the income rules.
When do the HOTMA asset rules take effect for HUD Multifamily?
HUD Multifamily owners must be applying HOTMA Sections 102 and 104 by January 1, 2027.
Contact Altus Compliance or request a quote to scope an engagement. Email info@altuscompliance.com.