HOTMA Go-Live Checklist for an IHA

Written By Kanso

1. Policy & Administrative Preparation (Outside the Software)

☐ Update the Administrative Plan / ACOP

  • Incorporate HOTMA-required policy changes (income calculations, assets, hardship policies, etc.)

☐ Board Approval of Policy Changes

  • Present and approve updated policies before implementation.

☐ Determine Local Discretion Policies
 Examples:

  • Hardship exemptions for health & medical deductions

  • Interim reexamination thresholds

  • Asset verification policies

  • Student rules

☐ Set the HOTMA Effective Date

  • Choose the agency’s implementation date (HUD requires full compliance once adopted).

☐ Update Forms and Notices
 Update any forms referencing:

  • Income definitions

  • Asset thresholds

  • Deduction rules

  • Tenant notices

☐ Train Staff
 Train staff on:

  • New income calculation rules

  • Asset thresholds

  • New deduction rules

  • Verification changes

  • Interim reexam triggers

☐ Notify Participants & Landlords (optional but recommended)
 Explain upcoming changes to income rules and deductions.

2. Data & Operational Preparation (Outside the Software)

☐ Review Existing Tenant Data

  • Identify households that may be affected by:

    • Asset limits

    • New income inclusions/exclusions

    • Medical deductions

☐ Plan Transition Strategy

  • Determine whether HOTMA rules apply:

    • At next annual reexamination

    • Or immediately

☐ Prepare Verification Procedures

  • Update verification checklists and workflows.

☐ Coordinate with Finance / Accounting

  • Ensure rent calculations and tenant charges align with HOTMA rules.

3. Software Configuration Tasks (Inside the Software)

☐ Enable HOTMA Settings in the System
 Examples:

  • Asset threshold rules

  • Deduction calculations

  • New income categories

☐ Update Deduction Rules

  • Standard deductions

  • Health/medical threshold deductions

  • Elderly/disabled allowances

☐ Configure Asset Rules

  • Asset threshold enforcement

  • Imputed income calculations

☐ Update Income Definitions
 Ensure system reflects HOTMA definitions of:

  • Earned income

  • Excluded income

  • Lump sums

  • Asset income

☐ Update Interim Reexam Rules

  • Configure interim thresholds (if software supports them).

☐ Update Validation Rules
 Ensure system checks for:

  • Asset cap

  • Income exclusions

  • Deduction limits

4. Compliance & HUD Reporting (Software + Operational)

☐ Ensure 50058 Form Updates

  • System must generate HOTMA-compliant 50058 submissions.

☐ Test PIC / IMS Submissions

  • Submit test certifications if available.

☐ Run Test Calculations
 Verify:

  • Rent calculations

  • Deductions

  • Asset income calculations

☐ Validate Reports
 Ensure reports still produce:

  • Correct income totals

  • Correct rent calculations

5. Go-Live Execution

☐ Finalize software configuration

☐ Complete staff refresher training

☐ Process first HOTMA reexaminations

☐ Submit first HOTMA-compliant 50058 forms

☐ Monitor first month for calculation errors

6. Post-Go-Live Monitoring

☐ Audit first 10–20 certifications

☐ Verify rent calculations

☐ Review rejected 50058 submissions

☐ Adjust policies or workflows if needed

Simplified rule of thumb for PHAs:

HOTMA go-live requires three things:

  1. Policy changes approved

  2. Staff trained and processes updated

  3. Software configured to calculate income/assets correctly and submit 50058s.

Kanso