The U.S. Department of Housing and Urban Development (HUD) has released the inflation-adjusted values and the revised passbook rate for 2025. These adjustments are effective from January 1, 2025, and are essential for compliance with Sections 102 and 104 of the Housing Opportunity Through Modernization Act (HOTMA). The critical updates include new thresholds for asset limitations and annual income and mandatory deductions and exclusions. These adjustments apply to many HUD programs, including Section 8 Project-Based Rental Assistance (PBRA), Public Housing, and Housing Choice Voucher (HCV).
To view this document, please click here to download the PDF provided by HUD.
Key Adjustments and Their Implications
Asset Limitation
- Eligibility Restriction on Net Family Assets: The threshold will be $103,200.
- Income Threshold for Imputed Returns on Assets: Adjusted to $51,600.
- Inclusion Threshold for Non-Necessary Personal Property: Also set at $51,600.
- Self-Certification of Net Assets: Families can self-certify if their net assets are below $51,600.
Passbook Savings Rate
The passbook savings rate, used to calculate imputed income from assets, is now 0.45%.
The following factors will see no adjustments in 2025:
Annual Income Caps
- Income Exclusion for Earned Income of Dependent Full-Time Students: $480.
- Income Exclusion for Adoption Assistance Payments: $480.
Flat Deductions
- Mandatory Deduction for Elderly and Disabled Families: $525.
- Mandatory Deduction for Dependents: $480.
Want to learn more?
Understanding and implementing the new HUD regulations can be complex and challenging. NCHM’s HOTMA Compliance training course is designed to provide housing professionals with the knowledge and tools needed to navigate these changes effectively. HOTMA Compliance covers all aspects of HOTMA Sections 102 and 104, including the latest adjustments and regulatory references. Learn from industry experts who bring real-world experience and insights, and have your learning supported by a live teaching assistant. Upon completing the HOTMA Compliance training course, you’ll receive a designation demonstrating your proficiency in HOTMA compliance, enhancing your professional credentials.
For more information about HOTMA and the HOTMA Compliance course, please visit our HOTMA HQ today. There, you will find up-to-date news and a list of upcoming training sessions.