Bulletin No. 2008-40 October 6, 2008

ment are not required to be reported under the WHFIT reporting rules.

Notice 2008–79, page 815. This notice provides guidance relating to amendments made by certain provisions of the Housing Assistance Tax Act of 2008. The notice provides allocations of the temporary increase in volume cap, procedures for filing the carryforward elections with respect to this volume cap as well as for reporting bonds issued pursuant to this volume cap, and clarification that mortgage credit certificates may be used to refinance subprime mortgage loans and may utilize the temporary increase in volume cap. The notice provides a list of certain military installations that are eligible for an exception from income determinations of payments of the basic housing allowance. The notice also provides guidance on the temporary exception from the prohibition against federal guarantees of tax-exempt bonds for guarantees provided by Federal Home Loan Banks. Notice 88–80 modified.

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Announcement of Declaratory Judgment Proceedings Under Section 7428 begins on page 844. Finding Lists begin on page ii.

Notice 2008–80, page 820. This notice proposes a revenue procedure that would modify Rev. Proc. 2003–84, 2003–2 C.B. 1159, by providing additional criteria that must be met in order for tax-exempt bond partnerships to be eligible to make an election that enables the partners to take into account monthly the inclusions required under sections 702 and 707(c) of the Code, including specifying a minimum gain share that must be paid upon disposition of the tax-exempt obligations and providing that the tax-exempt bond partnership must provide certain partners a right, exercisable by the date that represents 80% of the weighted average maturity of the bonds, to require a sale, redemption, or other disposition of the tax-exempt bonds held by the partnership. The proposed revenue procedure would also provide certain characteristics of tax-exempt bond partnerships, including noting that the put rights or guarantees for the benefit of certain partners of these partnerships are inapplicable in certain very limited circumstances.