HOTMA 102 & 104 compliance deadline for Yardi clients

HUD has set the HOTMA Sections 102 and 104 compliance deadline for January 1, 2027. Learn what this means for Yardi users, including software updates and steps agencies should take.

HOTMA 102 and 104 compliance deadline for Yardi clients

Most public housing authorities should begin preparing now for upcoming HOTMA sections 102 and 104 compliance requirements.

According to the U.S. Department of Housing and Urban Development (HUD), all applicable 50058 submissions with an effective date on or after January 1, 2027, must comply with the new HOTMA 102 and 104 requirements. While the deadline is set for the first of the year, Yardi recommends that agencies plan for policy and software changes by fall to ensure sufficient testing and implementation.

Keep in mind, these changes will impact agency operations, rent calculations and the software used to process HUD data.

What is HUD changing under HOTMA sections 102 & 104?

HOTMA sections 102 and 104 introduce significant changes to how agencies calculate household income, determine asset eligibility and calculate asset income. These updates directly affect rent calculations and subsidy determinations, which is why these are significant HOTMA changes for public housing agencies.

These updates include:

  • New 50058 form
  • Income and asset calculation rule changes​
  • Transition of the IMS/PIC file format from ASCII to JSON

What does the HOTMA 102 & 104 compliance deadline mean for Yardi users?

Yardi is actively updating its software to support HOTMA Sections 102 and 104 requirements. Most rule changes related to income and asset calculations have already been built into the software. However, agencies will need to complete the required Yardi upgrade to enable these changes and prepare their systems for compliance.

  Current Yardi development efforts include:

  • Plugin upgrades to enable required settings
  • Support for the new 50058 form
  • Updates related to income and asset calculations
  • Changes to interim processing procedures

We are still awaiting the new 50058 Instruction Booklet from HUD​ before completing remaining updates.

How can agencies prepare for these changes?

With the deadline approaching, agencies should begin preparing now for the operational and technical changes associated with HOTMA 102 and 104. Yardi recommends that agencies focus on the following areas:

Ensure that your policies are up to date

Review HOTMA policy updates and ensure your agency has the capacity and resources to implement these changes.

Train your staff ahead of time

Make sure your staff is educated on changes to income calculations, asset rules and interim procedures so they can apply new requirements accurately.

Monitor Yardi updates

Yardi will continue sharing implementation guidance and product updates as they become available.

Stay tuned for an upcoming webinar series with Gabrielle Van Horn, senior director at Yardi, where she will share additional guidance on HOTMA changes and what agencies should expect. You can also stay up to date on Yardi’s LinkedIn account for Affordable Housing and PHA.



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AUTHOR

Niki is a marketing writer for Yardi’s public housing team, focused on housing innovation and industry trends. Her work is driven by her commitment to safe, affordable housing and the resilience of our communities and planet. Niki is based in Santa Barbara, California.

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