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July 2004 Counsellor Housing and Development Law Inst THE COUNSELLOR VOLUME 4, ISSUE 1 HDLI: A Legal Resource to Public Agencies MARCH 31, 2006 Calendar of Events: CHARITABLE CONTRIBUTIONS TO PUBLIC HDLI’s 2006 Spring HOUSING AUTHORITIES CLE Conference May 4-5, 2006 Washington Marriott By Steven J. Riekes, Esq. Washington, D.C. HDLI board member and partner, Marks Clare & Richards, L.L.C., Omaha, NE On occasion, a public housing is so classified. A State, a possession of the Inside this Issue: authority may receive an inquiry United States, or any politi- from a potential donor wanting to However, a public housing author- cal subdivision of any of the President’s Message 2 know if a charitable donation can ity is not a 501(c)(3) organiza- foregoing, or the United be made to the authority. The tion. Many people assume that States or the District of A Letter from the inquisitive donor, who most likely they are, but, in fact, they are not. Columbia, but only if the Executive Director wishes to take a charitable That does not mean, however, contribution or gift is made & General Counsel 3 deduction from his or her taxes, that the donor may not be able to for exclusively public pur- or a private foundation con- take a charitable deduction in poses. Recent HUD Notices 9 cerned about the status of its making a gift to a housing potential beneficiaries, may in- authority. But, to achieve that § 170(c)(1). Case Corner 13 quire as to the authoritys status result, a somewhat different legal as a 501(c)(3) organization. course must be followed. The The first issue is whether a public This reference is made to Section purpose of this paper is to explain housing authority can qualify as a THE COUNSELLOR is 501 of the Internal Revenue Code how that might be accomplished. political subdivision. This published by the Housing exempting Corporations, and issue involves both federal law and Development Law any community chest, fund, or Section 170 of the Internal and state law. With few Institute (included in foundation, organized and oper- Revenue Code provides: exceptions, public housing au- membership dues), ated exclusively for religious, thorities are products of state charitable, scientific, testing for 170(a) Allowance of deduc law. For purposes of this 630 Eye Street, NW public safety, literary, or educa- tion. -- discussion, however, instead of Washington, D.C. 20001 tional purposes . The usual examining the public housing ph: (202) 289-3400 charitable donee, such as a (1) General rule. There shall authority statutes of all 50 fax: (202) 289-3401 church, school, museum, or the be allowed as a deduction states, I will refer to Nebraska e-mail: [email protected] like, is classified under this any charitable contribution law. I do so for a number of website: www.hdli.org section of the Code. Charitable (as defined in subsection (c)) reasons. First, Nebraska public Editor: donors are accustomed to this payment of which is made housing authority law was rewrit- Lisa Walker Scott, Esq. form of procedure, and if they within the taxable year. ten in light of the Model Housing want proof of the status of the Assistant Editor: donee, they usually ask for a In the definition section referred to Timothy P. Coyle copy of the donees letter from above, appears the following: the I.R.S. showing that the donee continued on page 4 PAGE 2 THE COUNSELLOR VOLUME 4, ISSUE 1 President’s Message A NEW YEAR OF OPPORTUNITIES! Dear Members: Forum luncheon. HDLI is working now to formulate a position paper to submit to HUD Going into the second year of my term as HDLI suggesting ways that HUD can provide better HDLI President President, 2006 promises to be a very guidance and workable regulations on issues Mattye Gouldsby Jones, Esq. challenging and equally rewarding year for our such as the Bond Amendment and eminent Dallas, TX organization. We have a major marketing effort domain, the Violence Against Women Act, Vice President underway, and we are trying more earnestly than procurement of legal counsel, and ways in which Mary McKenzie James ever to spread the good news about HDLIs HUD can be more transparent to US - the housing Santa Cruz, CA unsurpassed networking, educational, and bar. In the third quarter of this year, we plan to Secretary-Treasurer advocacy services. No where else can the convene another General Counsel Forum to Barbara Huppee housing bar receive high level training and follow-up on the topics addressed in January and Lawrence, KS exposure to the myriad of legal issues that we to discuss and strategize on other pressing Board of Directors face on a daily basis. In reaching out to new issues that surface during the year. So, whether Vivian Bryant, Esq. Orlando, FL members, we not only want to focus on our or not you were able to make the January Forum, traditional market of housing agencies and their please plan to participate later this year. We Susan C. Cohen, Esq. Boston, MA lawyers, but we want to recruit other stakeholders would like to receive your input. We also urge you David C. Condon, Esq. in the industry who can both add another to alert colleagues in private corporate Owensboro, KY dimension to the discussions at our conferences organizations of the benefits of membership as Kurt Creager and also benefit by our unique services. These we expand member categories. We trust you will Vancouver, WA prospects would include landlords, managers, join the directors of the Board in communicating Ricardo L. Gilmore, Esq. Tampa, FL developers, financial institutions, and even this opportunity. We believe the housing industry will be enriched by the association. Cynthia D. Jones, Esq. individuals, working in the public and affordable Denver, CO housing industry. I hope that we can count on Carol A. Kubic, Esq. your help in promoting the value of membership in I am really looking forward to seeing you May 4- Minneapolis, MN HDLI to all of your colleagues, affiliates, 5, 2006 in Washington for HDLIs annual Spring Thomas E. Lewis, Esq. contractors, financiers, and lawyers who do Conference entitled Navigating The New World of Merced, CA business for your agency. If you know of any Affordable and Public Housing: Legal Strategies George K. Martin, Esq. Richmond, VA prospects in these areas, please take a minute to for Conquering New Financing, Management, and Margaret McFarland, Esq. send our staff an e-mail or note with their contact Operational Rules. In her Executive Directors Washington, D.C. information. Your active assistance will make all Letter, Lisa Walker Scott lays out the many C. Michael McInnish, Esq. the difference in ensuring that we can continue to important panel discussions that we are putting Montgomery, AL provide a high level of service for the housing bar. together surrounding this theme. With the Ricardo Elias Morales, Esq. timeliness of the issues and the incorporation of New York, NY I am so excited about HDLIs newest member the panel of HUD officials, this will be one of our Saul N. Ramirez, Jr. Washington, D.C. service: the General Counsel Forum. Like HDLIs best conferences yet! Michael H. Reardon, Esq. other conferences and trainings, we are looking Washington, D.C. for ways to provide additional forums for Many of the membership enjoy a collegial and Steven J. Riekes, Esq. thoughtful discussion and strategy, and the personal camaraderie with fellow HDLI members, Omaha, NE General Counsel Forum held January in Tampa thus the members of HDLI welcome your Executive Director & participation and ideas to bring you continued General Counsel was just that for PHA in-house general counsel and outside lawyers functioning in that capacity. excellent programming and member services. If Lisa Walker Scott, Esq. We were honored to have current and former HUD there is anything that the board or staff of HDLI Director of Administration General Counsel Keith Gottfried and Nelson Diaz can do to assist you, please do not hesitate to call participate and give key note addresses at the Timothy P. Coyle upon us. PAGE 3 THE COUNSELLOR VOLUME 4, ISSUE 1 A Letter from the Executive Director and General Counsel challenges, and more. year. We will provide more details later this year. * HUDs Proposed Extension of the Lisa Walker Scott, Esq. Property Management Fee Structure to the IN THIS ISSUE: I would like to highlight that Section 8 and Capital Fund Programs - the featured article in this issue was written HDLIs SPRING CONFERENCE is MAY 4 AND 5, property management fees, front-line by long-time HDLI board member, Steven 2006! This years Spring Conference will be fees, strengths and weaknesses. Riekes of Marks Clare & Richards, L.L.C. in on of our best ones yet! Entitled Omaha, Nebraska. Many of you have NAVIGATING THE NEW WORLD OF AFFORD- * The Effect of the Violence Against interacted with Steve over the years at our ABLE AND PUBLIC HOUSING: Legal Women and Department of Justice conferences, during the drafting of HDLI/ Strategies for Conquering New Financing, Reauthorization Act of 2005 on Public NAHROs Model Public Housing Agency Management, and Operational Rules, the Housing Evictions and Other Operations; statute, and other activities. Steve and I were conference will be held May 4 and 5, 2006 at tackling the issue of charitable contributions our usual locale, the Washington, D.C. * Project-Based Vouchering Getting the to PHAs and tax-exemption issues, when we Marriott. Believe me, you really wont want to Most Out of HUDs Final Rule. decided that all of you would benefit by miss this conference. Given the depth of better understanding the issue.
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