Does a non-profit seeking approval from HUD need to have a IRS 501 (c) (3) certificate?
Eligible nonprofits must have two years 501(c)(3) IRS tax-exempt status. Non-profit must submit to FHA their IRS letter of determination to prove their 501(c)(3) tax-exempt status. In addition, non-profits must certify compliance with IRS regulations that require nonprofits to notify the IRS of any substantial and material changes in the nonprofit’s character, purpose, or methods of operation [IRS Reg. 1.501(a)-1(a)(2)601.201(h)(3)(ii)]. Finally, non-profits may not assume the name and employer identification number (EIN) of another dormant or defunct nonprofit. See Mortgagee Letter 2002-01 for more information on IRS 501 (c) (3) requirements.
Related Questions
- Why does my non-profit agencies approval letter have a limitation on it that restricts the number of HUD Homes we can buy and/or the number FHA Mortgages that we can have in force at any one time?
- Does a non-profit seeking approval from HUD need to have a IRS 501 (c) (3) certificate?
- What is an Approval Certificate?
