Relief for Families In Indiana and Iowa

The following notices were received from Treasury-IRS and are forwarded for your convenience:

Notice 2008-56 suspends certain requirements (income limitations, status of low-income units, and non-transient requirements) under Section 42 of the Internal Revenue Code for certain low-income housing credit properties in Indiana as a result of the devastation caused by severe storms and flooding. The IRS has determined that the Indiana Housing and Community Development Authority (Authority) may provide approval to project owners to provide temporary emergency housing for displaced individuals in accordance with this notice. Notice 2008-56 will appear in I.R.B. 2008-28, dated July 14, 2008.

Notice 2008-58 suspends certain requirements (income limitations, status of low-income units, and non-transient requirements) under Section 42 of the Internal Revenue Code for certain low-income housing credit properties in Iowa as a result of the devastation caused by severe storms, tornadoes, and flooding. The IRS has determined that the Iowa Finance Authority (Authority) may provide approval to project owners to provide temporary emergency housing for displaced individuals in accordance with this notice. Notice 2008-58 will appear in Internal Revenue Bulletin 2008-28, dated July 14, 2008.

MID-year Change for IRS Mileage Rates

Recognizing the skyrocketing gas prices consumers are facing at the pumps, the Internal Revenue Service announced that it is raising the standard mileage deductible rate by 8 cents to 58.5 cents a mile, a rare midyear adjustment by the federal agency.

The new optional rate goes into effect July 1 and is scheduled through the end of the year. Workers who use their vehicles for business can use the standard mileage rate or deduct their actual expenses on tax returns. The federal government and many private employers use the IRS rate when reimbursing workers who use their cars on the job.

Besides the business mileage rate, the IRS also yesterday increased the mileage rate for deductible medical or moving expenses to 27 cents a mile, up 8 cents.

The rate for providing services for charitable organizations, which is set by Congress, remains at 14 cents a mile.

Please be sure to use the new mileage amount when calculating medical expense deductions for qualified households. See HUD Handbook 4350.3 Revision 1, Change 2, Exhibit 5-3 for additional information.

RBD Lease Version Correction

When RBD re-posted the Word versions of the lease, a core group of RBD customers worked together to recheck the leases. As a result, we noticed that the word “flees” was missing from the Word version of the HUD Model Lease – Appendix 4A created by RBD in May of 2008. This is in Paragraph 23 – c – 7. If you are using the Word version of the HUD model lease posted on our web site in May, please be sure to download the latest version. We apologize for any inconvenience this may have caused.

HUD leases are also available in many of the software solutions you use. HUD leases can be downloaded from the HUD web site at http://www.hud.gov/offices/adm/hudclips/forms/hud9.cfm. PDF and Word versions are available on the HUD web site.

Attention 236 Property Managers

As part of HUD’s implementation of the Government Paperwork Elimination Act, the Department is changing reporting and collection processes related to Section 236 Excess Income from paper to an electronic Internet site operated by the Department of Treasury.

On September 1, 2008 (or immediately at your option), reporting and processing of Form HUD-93104 Monthly Report of Excess Income will become electronic through a secured Internet site operated by the Department of Treasury: https://www.Pay.gov/paygov

The content of the existing Form HUD-93104 was altered to remove data inputs not required for on-line submissions. For example, the HUD lockbox address and return address are absent as they are not required when submitting on-line.

If you own and or manage a 236 property, you should read the entire notice which can be found on the HUD web site at: http://www.hud.gov/local/shared/working/r10/mf/236income.pdf

IMPORTANT REMINDER

FOR ALL MULTIFAMILY HOUSING ENTERPRISE INCOME

VERIFICATION (EIV) SYSTEM USERS

EIV 8.1 INSTRUCTION COURSE ANNOUNCEMENT

Don’t forget to tune in to the in-depth, two-day EIV instructional course.

Course Date: July 8 and 9, 2008

Course Hours: 11:00 a.m. – 4:00 p.m. (Eastern Time Zone)

Delivery Method: Via HUD Web cast at http://www.hud.gov/webcasts/index.cfm.

Owners and management agents (O/As), contract administrators, and HUD staff are invited to attend the course. The course will be delivered by HUD Headquarters staff and will provide information on gaining and retaining EIV access, security of EIV data, using EIV information and reports and monitoring compliance of O/As using the EIV system. The revised agenda for the scheduled course is attached.

Prior to the course, the course materials, including Power Point presentations and case studies, will be posted to the EIV Training and Outreach for Multifamily Housing Programs web page at http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivtraining.cfm for review and downloading.

Questions concerning the instructional course should be directed to Kevin Garner, Housing Program Manager, who can be reached by telephone at (202) 402-2057 or by email at Kevin.X.Garner@hud.gov.

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.