In this week’s Tuesday Tip, Corporate Trainer Pam K. discusses streamlining under HOTMA. Specifically, this tip reviews the simplification of tenant verification, to self-certifying income and assets to updated utility reimbursements.

What Is Streamlining Tenant Verification?

Streamlining refers to HUD’s initiative to reduce the administrative burden involved in verifying tenant income and assets, while still ensuring program integrity. This approach allows for adjustments in verification frequency and requirements, especially for specific income and asset categories.

1. Self-Certification Options
   • HUD’s guidance permits self-certification for certain tenants, reducing the need for frequent or extensive verifications.
   • For tenants with 90% or more fixed income, annual self-certification is sufficient.
   • For those with less than 90% fixed income, annual income must still undergo traditional verification.
2. Simplified Asset Verification
   • Tenants with assets totaling under $5,000 can self-certify these amounts.
   • While self-certifications must include all necessary information, notarization is not required.
3. Utility Reimbursements
   • Property managers can now distribute utility reimbursements on a quarterly basis, simplifying monthly processes while maintaining tenant support.

HOTMA’s Impact on Verification Processes

The Housing Opportunity Through Modernization Act (HOTMA) will soon introduce significant changes to tenant verification requirements. These adjustments are expected to further streamline processes, though property owners and managers should prepare for shifts in compliance measures.

What This Means for Property Managers

Streamlining under HOTMA will allow property managers to enhance efficiency without compromising accuracy. It’s essential to stay updated on HUD’s guidance, implement effective self-certification protocols, and prepare for upcoming HOTMA changes.