WHAT IS GOING ON WITH FEDERALLY ASSISTED HOUSING?

by Thomas D. Begley, Jr., Esquire, CELA

The federal government has assisted individuals and families with payment for housing since the Great Depression.  Section 8 began in 1974.  In 2016, Congress passed the “Housing Opportunity Through Modernization Act,” referred to as HOTMA, to modernize the Section 8 program.  Ten years later, a great deal of confusion remains concerning HOTMA.  Section 8 is administered by local housing authorities.  Before HOTMA, tenant’s income was considered for eligibility, but assets were not so long as the assets had not been given away in the previous two years.

For 2026, the maximum asset test is $105,574.00.  Assets include bank and investment accounts.  Some assets are excluded such as retirement accounts, ABLE accounts, and 529 Plans.  Personal property, such as furniture and automobiles, are not counted.  Assets held in a properly-drafted Special Needs Trust, over which the household has no control, are not countable.

Income includes wages, Social Security, pensions, and imputed income on family assets in excess of $52,787.00 for 2026.  The Trust should not make regular payments directly to a beneficiary.