2/20/2014
Several improvements in functionality have been included in this maintenance release of 9.1. Please check the following release notes for all other enhancements and changes delivered with 9.1:
· Household Detail
§ Forms
o IR 72933 – This IR has corrected four issues within the Kansas TIC. First, the effective date has been changed to the correct date. Second, in Section D, households that receive subsidies now have the correct box marked. Third, in Section D, households with employed members now have the correct box marked and have the correct number of employed household members listed. Fourth, for households with only checking, savings, and real estate assets, Section E has been updated to correctly leave Box 12 blank.
o IR 75602 – The Kansas TIC and Kansas Self TIC have been updated to maintain compliance.
§ Members
o IR 75363 – Impact of Change 4 Foster Guidance on the HUD 50059 Form
In August, with the release of Change 4 to the HUD Handbook 4350.3, HUD changed the status of foster children and foster adults to family members from non-family members. As detailed in the revised transmittal for Change 4 issued in November, HUD delayed implementation of the new foster rules so that software could be updated by March 1, 2014.
This change has many implications to fields within the sections of the 50059 form detailed below, and many of the changes will have a direct impact on the TTP, Tenant Rent, Utility Reimbursement and the Assistance Payment fields. The low income housing tax credit program follows HUD rules and this change impacts tax credit TICs as well. The changes do not apply to HOME, PHA, or USDA funding programs. The term “foster” includes both foster children and foster adults when used below.
50059—Section C: Household Information
♦ Field 38—Relationship Code: Until TRACS 202D is in effect, foster children will continue to be reported as F and foster adults as L on the form. Through its internal foster adult relation code, Bostonpost Property Manager knows who the foster adults are. Beginning with 202D, both foster children and adults will be reported as F. Fosters may never be counted as dependents.
♦ Fields 40-41—Race and Ethnicity: Indicate race and ethnicity data for fosters. With 202D, there will no change in how TRACS handles the Race field and the Ethnicity field as it has always stored that information.
♦ Field 43—Special Status Code: These codes include ones that may be applicable to fosters such as S, for full-time student, and H, for handicapped. A foster adult who is a full-time student and who has employment income is subject to the $480 cap on earned income specified in the regulations. However, such a person will not be listed on the 50059 form as a dependent and will not receive a dependent allowance.
♦ Field 44—Student Status: This field will be filled for fosters but not for live-in aides.
♦ Field 46—Eligibility Code: Since fosters are family members, they are subject to the noncitizen rule for Section 8, Rent Supplement, RAP, and Section 236. Previously, the XX (not applicable) code was used for fosters; now, a valid code must be used in these programs. XX continues to be proper for live-in aides.
♦ Field 49—Work Code: Fosters are now eligible for handicap and medical deductions when the household is eligible for them. Include foster adults when assigning these codes if the adult’s employment income is enabled.
♦ Fields 50-52—Family is Mobility Impaired?, Family is Hearing Impaired?, and Family is Visually Impaired?: Indicate which fosters, if any, have mobility, hearing, or visual disabilities as that information will be used when filling these fields.
♦ Field 53—Number of Family Members: Fosters are now part of this count for income limit purposes. In addition, foster children as expected family additions are now included when determining income limits. This can have a major impact on tax credit communities.
♦ Field 54—Number of Non-Family Members: Fosters are no longer counted here, and this number only counts members who are live-in aides.
♦ Field 56—Number of Eligible Members: This field is tied to the noncitizen rule proration for all programs except those not subject to the rule (PRAC, PAC, and 221(d)(3) BMIR). Include fosters with Citizen Codes of EC, EN, and PV.
50059 Section F. Allowances & Rent Determination
♦ Fields 87-89—Low Income Limit, Very Low Income Limit, and Extremely Low Income Limit: The limit displayed is determined based on the count of family members, including fosters, and the expected family addition counts in Fields 57-59.
♦ Field 96—Household Assistance Status: Include fosters when determining the proper code. Additionally, the status of fosters will impact the calculation of income when prorating, as fosters can contribute to both the numerator and denominator of the proration fraction.
♦ Fields 98-99—Child Care Expense (work) and Child Care Expense (school): Deductions for child care expenses are unaffected by this change as they have previously been allowed for foster children.
♦ Field 101—Disability Expense: Include disability assistance expenses incurred by fosters.
♦ Field 102—Disability Deduction: Include foster disability assistance expenses in the calculation.
♦ Field 103—Medical Expense: Include expenses incurred by fosters if the household is eligible for the medical expense deduction.
♦ Field 104—Medical Deduction: Include foster expenses in the calculation if the household is eligible for the medical expense deduction.