HUD Form 50059 (HOTMA 2024 edition)

Owner's Certification of Compliance with HUD's Tenant Eligibility and Rent Procedures

Required at admission and every recertification under 24 C.F.R. Parts 5, 880, 884, 891, 892, and Sec. 245.

Form 9886 Authorization Official HUDCLIPS PDF

When Form 50059 is Required

Owner shall transmit a signed Form 50059 to HUD via TRACS (Tenant Rental Assistance Certification System) within 30 days of: (a) admission of a household, (b) the annual recertification effective date, (c) any interim recertification, (d) a unit transfer, or (e) a household composition change. Late transmission triggers Special Claim retroactivity limits and may result in subsidy abatement.

Section A. Project and unit identification

Owner must complete the project name, HUD contract number, project number, property address, unit number, contract type (PBRA, Section 202, Section 811, RAD, BMIR, etc.), and the effective date of the action.

Section B. Household composition

List every household member by name, relationship to head, date of birth, sex, race (per HUD's optional self-identification table), ethnicity, citizenship status (eligible noncitizen, US citizen, ineligible noncitizen), and SSN or HUD's exception code. A minor without an SSN may be listed under exception code "Newly assigned SSN pending" for up to 90 days; a foster child may use code "Foster child age 6 and under" indefinitely.

Section C. Income (HOTMA 2024 edition)

HOTMA, codified at 24 C.F.R. Sec. 5.609 and 5.611, changed the annual-income definition effective January 1, 2024:

  • Income limit verification: Use the HUD Income Limits in effect at the time of the action, indexed by county and Family Size. Confirm Family Size includes any anticipated unborn child, foster child, or live-in aide.
  • Earned income exclusion threshold: Earned income from a household member under 18 is excluded entirely. Earned income from a household member 18 or older with a disability who returns to work after a period of receiving disability benefits is excluded for the first 12 cumulative months and 50% for the next 12 months (24 C.F.R. Sec. 5.617).
  • Asset rule (HOTMA): Assets up to $50,000 (indexed annually) are self-certified by the household; no third-party verification required at or below the threshold. Above $50,000, full third-party verification of the entire asset balance is required.
  • Net family assets: Use the GREATER of (a) actual income from assets, or (b) imputed income from assets above $50,000 multiplied by the HUD passbook savings rate (currently 0.40% per HUD Notice 2024-09).
  • Mandatory income exclusions: SSI/SS lump-sum payments, federal student aid (HEERF, Pell), payments from training programs funded by HUD, value of food stamps, value of LIHEAP utility allowance, and the first $480/year of each dependent's income.
  • Deductions (Sec. 5.611): $480 per dependent, $400 for an elderly or disabled head, medical expenses exceeding 3% of annual income (for elderly/disabled households), unreimbursed disability assistance expenses, and childcare expenses necessary for work or school.

Section D. Rent calculation

Total Tenant Payment (TTP) is the GREATER of:

  1. 30% of monthly adjusted income;
  2. 10% of monthly gross income;
  3. The welfare rent if the household receives state welfare assistance specifically designated for housing; or
  4. The minimum rent set by HUD ($25 or the minimum rent waived for hardship per Sec. 5.630).

Tenant Rent is TTP less the Utility Allowance for tenant-paid utilities (per 24 C.F.R. Sec. 5.609). If the Utility Allowance exceeds the TTP, the household receives a Utility Reimbursement Payment (URP) equal to the difference.

Section E. Special items

Indicate by Y/N or amount: live-in aide, hardship exemption (minimum rent), Earned Income Disregard status, asset-rule exception, repayment agreement balance, escrow account balance (FSS or RAD CHAP), and any tenant-paid utility deposits.

Section F. Owner certification statements

By signing Form 50059, Owner certifies that:

  1. The household is eligible for the assistance and the unit meets HUD's Housing Quality Standards or applicable inspection protocol (NSPIRE for properties transitioning per HUD Final Rule, 88 Fed. Reg. 30442).
  2. All required forms have been signed and retained in the tenant file: Form HUD-9886, the most recent Form 50059, the lease, the lease addendum, EIV verification reports (with no unresolved discrepancies), and the VAWA notice HUD-5380.
  3. Owner has not received any consideration not included on Form 50059.
  4. The unit will be Tenant's only residence and the household will live in the unit for at least 50% of the year.
  5. All members of the household are US citizens or eligible noncitizens (or the prorated assistance has been calculated for mixed-status households per Sec. 5.520).
  6. The household has been informed of the Family Self-Sufficiency program (where applicable) and the right to request reasonable accommodation under FHA / Section 504.

Section G. Penalties for false certification

Knowingly making a false or fraudulent statement on Form 50059 is punishable under 18 U.S.C. Sec. 1001 by fine and/or imprisonment for up to 5 years. HUD may pursue administrative sanctions including subsidy recapture, debarment from HUD programs, and civil money penalties under 12 U.S.C. Sec. 1735f-15.

Owner signature

Form 50059 must be signed and dated by an authorized representative of the Owner with title. Electronic signature via TRACS-Connect or an HUD-approved e-signature platform is acceptable per HUD Notice H 2014-12.

This is a plain-language summary of HUD Form 50059 incorporating the HOTMA 2024 changes effective January 1, 2024. The current official HUD-issued PDF (typically prefilled by TRACS or a HUD-approved software vendor like RealPage Onesite or Yardi Voyager) is the controlling document. Rentari.ai is not a law firm or HUD compliance vendor; consult HUD or a certified C3P/SHCM professional for advice about your specific situation.

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