EIV User Certification – Don’t Lose Access

EIV Users (not coordinators) must be re-certified quarterly. The next User re-certification deadline is January 30, 2008.

This means that all active users must request recertification using the User Access Request option. Coordinators must certify each user for each property – we would suggest that this is done by January 29 - by using the User Certification Option under User Administration. This will ensure that users do not experience an interruption to EIV system access. Coordinators must certify annually. The December EIV update allows coordinators to monitor certification deadlines using new EIV features.

News about REAC

Starting January 1, 2008, all REAC inspections must be conducted according to the standards and practices outlined in the REAC Compilation Bulletin, Revision 1.

A link to this document is available at: http://www.hud.gov/offices/reac/products/pass/pass_bulletin.cfm.

New Mileage Rate for Medical Expense Deductions

The Internal Revenue Service issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

· 50.5 cents per mile for business miles driven;

· 19 cents per mile driven for medical or moving purposes; and

· 14 cents per mile driven in service of charitable organizations

The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.

Please keep in mind that mileage expenses can be used as part of the medical expense deduction. (See Exhibit 5-3 of HUD Handbook 4350.3 Revision 1, Change 2).

HUDClips Moves to HUD.gov

Many of use HUDClips as the web resource to find HUD forms, handbooks, and notices. Please note that the HUDClips web site has been re-designed with a new look and feel. The content from the previous HUDClips site has been moved to HUD’s official web site www.hud.gov. The redesign will make it easier to find forms, handbooks, and notices on the web.

You can now obtain HUD Forms at www.hud.gov/forms. All remaining content is in the process of being converted into the new format and transferred to the HUD.gov server. The new HUDClips Web site launched January 1, 2008.

Funding Update

A Consolidated Appropriations Act to fund government agencies in 2008 has been signed by President Bush. The appropriations act includes:

· $6.13 billion for project-based Section 8, and $14.69 for tenant-based Section 8

· $482 million for Rural Development’s Rental Assistance Program, as well as funding for the Multifamily Housing Revitalization Program Account.

· $380,000 available to HUD for the creation and promotion of translated materials and other programs that support the assistance of persons with limited English proficiency.

* In addition, a key portion of the HUD appropriations legislation follows:

Sec. 235. (a) Required Submissions for Fiscal Years 2007 and 2008-

(1) IN GENERAL- Not later than 60 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall submit to the relevant authorizing committees and to the Committees on Appropriations of the Senate and the House of Representatives for fiscal year 2007 and 2008--

(A) a complete and accurate accounting of the actual project-based renewal costs for project-based assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f);

(B) revised estimates of the funding needed to fully fund all 12 months of all project-based contracts under such section 8, including project-based contracts that expire in fiscal year 2007 and fiscal year 2008; and

(C) all sources of funding that will be used to fully fund all 12 months of the project-based contracts for fiscal years 2007 and 2008.

A link to the full appropriations bill text is http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h2764eah.txt.pdf.

(It’s a large PDF file and may take a while to load into your browser.) Thanks to the National Affordable Housing Management Association for keeping us up-to-date on the workings of Congress. For additional information about NAHMA, visit their web site at www.nahma.org.

Changes to the Student Rule for Tax Credit Properties

H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007, which includes a change to the Low Income Housing Tax Credit program’s student eligibility rules, has been passed.

Previously, under the LIHTC law, a tax credit unit occupied entirely by full-time students would continue to be a qualified low-income unit only if:

· Those full-time students were single parents and their children (none of which could be claimed as a dependent of another individual) or

· If the full-time students were married and filing a joint tax return.

Section 6 of H.R. 3648 changes this provision to allow children of single parents to be dependents of the other parent.

RBD does not act as a legal advisor nor as a regulatory governing agency. The recipient should understand that any materials or comments contained herein are not designed for, nor should be relied upon as a source of legal guidance or as a final authority with respect to any particular circumstance. Ross Business Development, Inc. makes no warranty of merchantability or fitness for a particular purpose or any other warranty of any type. Owners and management should seek competent legal advice in developing and carrying out policies and procedures. While we have been diligent in our efforts to provide comprehensive and accurate regulatory information, Ross Business Development, Inc. shall not be responsible for errors or inaccuracies.