Our Travois Asset Management team would like to pass along a few important industry updates.
2015 Social Security COLA announced
The Social Security Administration has announced that beginning January 2015 all recipients of Social Security and Supplemental Security Income (SSI) will receive a 1.7 percent Cost of Living Adjustment (COLA). When completing certifications for households who have Social Security or SSI income, we will need to calculate the 1.7 percent COLA into their annual anticipated income.
For example:
John is due to move into his new unit on Nov. 1, and we have verified he receives $750 per month in Social Security benefits. In order to accurately anticipate his annual income, we must include the 1.7 percent COLA for January through October of 2015.
For November and December of 2014, we would count the $750 per month. For January through October 2015, we would count $750 + the 1.7 percent COLA ($12.75) for a total monthly benefit of $762.75.
$750 x 2 = $1,500.00
$762.75 x 10 = $7,627.50
Total annual income from Social Security = $9,127.50
The above is just an example of how to calculate annual income from Social Security or SSI adding in the COLA increase.
Recipients of Social Security and SSI benefits will soon be receiving a letter in the mail along with an updated award letter showing what their monthly benefit amount will be after the COLA increase.
NTCCP training and certification course available in December
Together with the National American Indian Housing Council, Travois will be leading a NAHASDA & Tax Credit Compliance Professional (NTCCP) training course and certification on Dec. 9-11 at the Planet Hollywood Resort in Las Vegas. Crystal Banks-Mann, assistant director of Travois Asset Management, will co-present.
Additional hotel and registration information will be available soon. For more details on the training, click here.
A proposed change to the LIHTC full-time student rule
The Housing for Homeless Students Act of 2014 was introduced July 31 in Congress. The bill would amend the Internal Revenue Code (IRC) of 1986 to allow homeless youth and veterans who are full-time students to qualify for the Low Income Housing Tax Credit (LIHTC).
Currently there are specific rules regarding full-time student household eligibility. This is in place to prevent college students with temporarily low incomes from taking advantage of a program intended for low-income individuals or families. The act would exempt homeless youth and veterans from this rule by adding that eligibility will include homeless individuals covered by the definition of homeless children and youth in the McKinney-Vento Homeless Assistance Act.
The bill would also extend eligibility to veterans who have been homeless to ensure that they have access to affordable housing while seeking an education. The bill and a summary of its provisions are available at www.taxcredithousing.com.
As always if you have questions about this information or need further assistance, please feel free to call us at 816-994-8970 or email us at assetmanagement@travois.com.