1099 Issue: Further Update
This Private Letter Ruling indicates that CFSIC is not required to provide homeowner claimants with a 1099. The IRS has determined that CFSIC does not collect, as part of its application process, the kind of information that would enable it to determine the tax basis of any individual homeowner, whether receiving funds directly from CFSIC as a Type 2 claimant or indirectly as a Type 1 claimant.
PLEASE NOTE: What CFSIC has received is a Private Letter Ruling dealing only with what CFSIC is required to do…homeowners are well-advised to seek guidance on any personal tax implication they may have from the direct or indirect receipt of CFSIC funds.
Where We Are
The Superintendent has countersigned a total of 318 Participation Agreements for Type 1 and Type 2 claimants.
We remain in suspension for the taking of new applications. What will enable us to open our doors again for new application activity will be either or both of the following:
– the value of our held claim reserves is reduced through executed construction contracts by a minimum of $5 million;
– our current sunset date of June 30, 2022 is extended, enabling us to take revenue credit for additional homeowner policy surcharge revenue past June 30, 2022.
CFSIC’s Superintendent continues to countersign Participation Agreements at a rate of three per week in order to ration existing cash through the fiscal year ending June 30, 2022.
Good News for Condos
The first condo association to become fully eligible for assistance will move into line this week to eventually receive a Participation Agreement.
Construction bids are in and have been approved. A contractor has been selected. We’re pleased that the first group of what we hope will be many condominium units will shortly be scheduled for remediation.
The CHFA Credit Enhancements Program
You should go here to learn more about the CHFA credit enhancements program as it is now constituted. Please note that it currently does not apply to condominiums. CFSIC did not create and is not administering the loan program, and the ESIS claim team cannot advise you in any way about the terms and conditions of any aspect of the program. The link noted in this section will take you to an outline of the program, as well as to a section marked “Frequently Asked Questions.” We also recommend contacting the Homeowner Advocate using the contact information on the Department of Housing website for more assistance.
CFSIC’s Annual Report
CFSIC’s 2019 Audited Financial
If you have any questions about the operation of the program, ESIS is your best source of information on your claim, and their phone number and email are shown below.
As you work through the information and application process (understanding that we are in suspension for the taking of new applications), here’s how you can get help:
– Call ESIS (the claim adjuster) at: 844-763-1207
– Email ESIS at: email@example.com
– Email CFSIC at: firstname.lastname@example.org