U.S. Department of Housing and Urban Development

OFFICE OF HOUSING

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Special Attention of: Notice H 92-99 (HUD)

Regional Administrators Issued: 12/18/92

All Regional Directors of Expires: 12/31/93

CPD and Housing
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All Field Office Managers Cross References:

All CPD Division Directors 24 CFR Part 291,

All Chief Property Officers Subpart E: Housing

Notices 91-91/92-83

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Subject: Requirement to Provide State and Local Tax

Information to Providers in the Single Family

Homeless Initiative Program and Start of FY\' 93

Inventory Guidelines by Region

This Notice provides guidance for the implementation of

Section 1407(c) of the Housing and Community Development Act of

1992, and also gives beginning of fiscal year inventory figures

by region against which limitations on leasing properties to

homeless providers for Fiscal Year 1993 may be measured.

Guidance on the implementation of Section 1407 (a) and (b) will

be forthcoming after the Department issues a proposed rule for

public comment and determines appropriate procedures.

Implementation of Section 1407(c)

This provision of the new Act stipulates that HUD shall,

upon request, provide information on State and local taxes by

jurisdiction to homeless providers. Information disseminated

shall identify and describe any exemptions or reductions relating

to payment of property taxes under State and local laws in the

jurisdictions for which the lessee, or applicant, may be leasing

properties from HUD.

Further, to the extent a provider may be exempt from a

requirement to pay State or local taxes, or a reduction in the

amount of such taxes, HUD may not require the provider to pay or

deposit such amounts for the payment of taxes in an escrow

account.

CPD staff in the appropriate Field Office is responsible for

researching State and local tax exemption procedures and

providing the tax information to all program participants

requesting it.

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HSIP: Distribution: W-3-1, W-2(OGC)(H)(Z), W-3(A)(H)(ZAOO), W-4(H), R-1,

R-2, R-3, R-3-1(H)(CPD)(RC), R-3-2, R-3-3, R-6, R-6-1, R-6-2, R-7,

R-7-1, R-7-2, R-8, R-8-1

Previous Editions Are Obsolete HUD 21 B(3-80)

GPO 871 902

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Inventory by Region at Start of FY \'93

As stipulated at 24 CFR Section 291.400(c), HUD shall make

available for leasing to homeless providers up to 10 percent of

its total inventory of eligible properties as of October 1. On

October 1, 1992, the HUD owned single family inventory nationwide

was 32,590. Therefore, Field Offices may have under lease a

total of 3,259 properties to homeless providers this fiscal year.

This total breaks down by region as follows:

Region Inventory as of 10/1/92 Lease

Limit

Boston 681 68

New York 843 84

Philadelphia 2,801 280

Atlanta 7,682 768

Chicago 5,201 520

Ft. Worth 7,628 763

Kansas City 1,078 108

Denver 3,073 307

San Francisco 3,321 332

Seattle 282 28

A Field Office need not confine its leasing program to 10

percent of its own inventory, as long as the region is willing to

transfer authority from another Field Office not using its full

allocation. Regional Directors of Housing have discretion to

allocate the number of properties to be leased by each Field

Office as long as the total leased within the region is within 10

percent of the total regional inventory on October 1st. Where

authorization has been given, or leases currently exceed 10

percent of inventory, it is not necessary to make a reduction in

a leasing program to conform to the above guidelines. Finally,

Regional Directors may also request a reallocation from

Headquarters, which may re-assign additional authority for

leasing from another region not using its full allocation of

authority in the program.

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Arthur J. Hill Randall Erben

Assistant Secretary for Housing Acting Assistant Secretary

\- Federal Housing Commissioner for CPD