HOTMA

PUBLIC NOTICE
Peekskill Housing Authority – Policy Changes & Public Comment PeriodThe Peekskill Housing Authority (PHA) is proposing updates to its Public Housing policies under the Housing Opportunity Through Modernization Act (HOTMA), effective July 1, 2025.A 45-day public comment period will run from May 14 to June 26, 2025.
Draft changes are available at the PHA office (807 Main Street) or by request at housing@peekskillha.com.A Public Hearing will be held on June 26, 2025 at 7:00 PM at Dunbar Heights, before the regular board meeting.For more info or to submit comments, contact (914) 739-1700.

Here’s a side-by-side summary of how HUD’s 24 CFR 5.609(b) – Income Exclusions changed under HOTMA (effective July 1, 2025), based on HUD guidance:

📅 Summary of Pre vs Post

Provision	Pre-HOTMA	Post-HOTMA (by July 1, 2025)
Income Exclusions	Limited, less defined	Expanded list of 28 items; explicit enumerations
Definitions	Narrow employment/family terms	7 updated terms for clarity and compliance
De Minimis Errors	No formal policy; minor errors penalized	≤ $30/month errors forgiven; credit/refund required

 

Here’s a clearer breakdown of the new HOTMA-mandated changes effective July 1, 2025, compared to what the regulation required previously:

📝 Expanded Income Exclusions (28 Explicit Items)

Pre-HOTMA (under § 5.609(c)):

• Exclusions were scattered—covering things like lump sums, student aid, etc.—but lacked clarity and consistency.

HOTMA Updates (§ 5.609(b)): PHAs must now exclude 28 clearly defined income sources, including:

1. Child earnings (under 18)
2. Foster child/adult earnings
3. Live-in aide income
4. Trust distributions
5. Medical reimbursements
6. Insurance settlements
7. Adoption assistance
8. Dependent student earnings
9. Title IV HEA assistance
10. Other student financial aid
11. Educational savings/529 & baby bonds
12. Plan to Attain Self-Sufficiency/Stipends
13. Resident service stipends (≤ $200/mo)
14. Employment training earnings
15. Family Self-Sufficiency earnings
16. Housing gap payments
17. Deferred SSI, Social Security, VA disability
18. Hostile fire military pay
19. Veteran aid & attendance
20. State payments for disabled living support
21. Lawsuit/workers comp settlements
    22–25. Various statutory settlements (civil rights, reparations, tribal claims, Nazi-era reparations)
22. Retirement plan distributions (principal)
23. Non-recurring income
24. Imputed asset income when net assets ≤ threshold

This shift moves from a vague model to a comprehensive, standardized list, reducing confusion and increasing fairness

🆚 Updated Definitions (7 Key Terms)

Pre-HOTMA:

• Definitions (in 24 CFR 5.100, 5.403, 5.603) were more limited—focused on “family,” “dependent,” etc., without addressing modern employment or family structures.

HOTMA Updates (required as of July 1, 2025):

• Family now includes youth up to age 24 who have aged out of foster care.
• Employment terms clarified: day laborer, independent contractor, seasonal worker.
• Broader definitions for dependent, foster child/adult, and health & medical care expenses.
  These changes ensure policies reflect current family/employment realities