OHS Pauses Full Enrollment Initiative • Head Start Final Rule on DRS Flexibilities in Certain Emergencies • Ensuring Equal Access to CAA Programs • Low-Income Housing Tax Credit Guidance • Form 990 Data on IRS Exempt Organization Website 

OHS Pauses Full Enrollment Initiative 

On January 7, 2022, OHS issued an Update on the Full Enrollment Initiative announcing that it will not resume its evaluation of programs entering the Full Enrollment Initiative in January 2022. This decision was made in light of recent surges in COVID-19 cases across the country, and it represents a change from OHS’s plan to resume evaluations for full enrollment beginning in January 2022 as announced in Program Instruction ACF-PI-HS-21-04 issued in May 2021.

Head Start Final Rule on DRS Flexibilities in Certain Emergencies  

As the Office of Head Start (OHS) announced in Program Instruction ACF-PI-HS-22-01, the amendments to the Head Start Program Performance Standards (HSPPS) allowing OHS the flexibility to make designation renewal (DRS) determinations during declared emergencies, when CLASS score data is not available to support such decisions, are now final. These amendments to HSPPS § 1304.17 were first issued as an interim final rule on December 7, 2020, and took effect immediately (see CAPLAW alert). However, the Office of Head Start solicited public comment on the rule. OHS adopted the final rule, without change, on October 6, 2021.

The Program Instruction notes that in light of the ongoing federally declared public health emergency, OHS cannot conduct CLASS reviews safely and accurately during the 2021-2022 program year. Under the Head Start Act, OHS may not extend grants beyond five years to allow more time to collect CLASS data. Thus, OHS will rely on the flexibility in HSPPS § 1304.17 to proceed with DRS determinations in the absence of CLASS scores.

Ensuring Equal Access to CAA Programs 

How does a CAA ensure that all individuals, including those with disabilities, are afforded the same opportunity to participate in its programs? This article focuses on the Section 504 requirements to make benefits and services offered by a CAA accessible.

Building the 4% Floor: IRS Issues Low-Income Housing
Tax Credit Guidance

In December 2021, affordable housing development projects received new guidance from the Internal Revenue Service (IRS) related to stimulating the development of affordable housing by increasing the Low-Income Housing Tax Credit (LIHTC) available to certain project developers. The IRS issued Revenue Ruling 2021-20 and Revenue Procedure 2021-43 to analyze the application of a new 4% minimum tax credit for certain types of affordable housing projects.

Form 990 Data Now Available on IRS Exempt Organization Website 

As of December 31, 2021, publicly-available Form 990 data is available solely on the Tax Exempt Organization Search (TEOS) webpage on IRS.gov. The IRS announced this change, noting that it will no longer update the Form 990 series data on Amazon Web Services. This change is meant to provide and consolidate access to public data for organizations with tax-exempt status in one location.

The information disclosed in a nonprofit CAA’s Form 990 is often used by donors, funding sources, and other members of the public to understand the organization’s programs and operations. CAAs may themselves use Form 990 information about other nonprofit organizations they are considering as a partner or subrecipient. The IRS redacts personally identifiable tax-identification numbers to prevent the data's misuse.

As a reminder, tax-exempt organizations – including CAAs – must file a Form 990 information return annually with the IRS. Form 990s are due on the 15th day of the 5th month of the CAA’s taxable year, and CAAs may request a 6-month extension by filing a Form 8868 by May 16, 2022, or the 15th day of the 4th month of the organization’s tax year.

This Legal Update is part of the Community Services Block Grant (CSBG) Legal Training and Technical Assistance (T/TA) Center. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Award Number 90ET0482-02. Any opinion, findings, conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.

The contents of this publication are intended to convey general information only and do not constitute legal advice. Any communication through this publication or through CAPLAW’s website does not constitute or create an attorney-client relationship. If you need legal advice, please contact CAPLAW or another attorney directly.