us-irs-revenue-procedures-irb-2011-15-pdf•Internal Revenue Bulletin 2011-15 (PDF rendition): IRS Revenue Procedures
Internal Revenue Bulletin 2011-15 (PDF rendition): IRS Revenue Procedures
us-irs-revenue-procedures-irb-2011-15-pdfInternal Revenue Bulletin 2011-15 (PDF rendition): IRS Revenue ProceduresGuidance
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Bulletin No. 201 1-15 April 11, 2011 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. EMPLOYEE PLANS T.D. 9517, page 610. Final regulations under section 3042 of ERISA by the Joint Board for the Enrollment of Actuaries update the requirements for initial enrollment and for re-enrollment (including changes to the continuing professional education requirement) and update the standards for performance for enrolled actuaries. EXEMPT ORGANIZATIONS Announcement 2011–27, page 651. A list is provided of organizations now classified as private foun- dations. ADMINISTRATIVE Rev. Proc. 2011–23, page 626. This procedure provides issuers of qualified mortgage bonds (QMBs) and qualified mortgage credit certificates (MCCs) with average area purchase price safe harbors for statistical areas in the United States and with a nationwide average purchase price for residences in the United States for purposes of the QMB rules under section 143 of the Code and the MCC rules under section 25. Rev. Proc. 2010–25 obsoleted in part. Finding Lists begin on page ii. The IRS Mission Provide Americ a’s taxpayers top-quality service by helping them understa nd and meet their tax responsibilities and en- force the law wi th integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conven- tions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis. It is the policy of the Service to publish in the Bulletin all sub- stantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, mod- ify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indi- cated. Procedures relating solely to matters of internal man- agement are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—19 86 Code. This part i ncludes rulings and decisions based on provisions of the Intern al Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Leg- islation and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rul- ings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secre- tary (Enforcement). Part IV .—Items of General Interest. This par t includes notices of proposed rulemakings, disbar- ment an d suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. The c ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402. April 11, 20112011–15 I.R.B. Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 3042. —Joint Board for the E nrollment of Actuaries 20 CFR Part 901 T.D. 9517 Regulations Governing the Performance of Actuarial Services Under the Employee Retirement Income Security Act of 1974 AGENCY: Joint Board for the Enrollment of Actuaries. ACTION: Final regulations. SUMMARY: This document contains final regulations under section 3042 of the Em- ployee Retirement Income Security Act of 1974 (ERISA) relatingtotheenrollment of actuaries. These regulations update the eligibility requirements for performing ac- tuarial services for ERISA-covered em- ployee pension benefit plans, including the continuing professional education require- ments, and the standards for performing such actuarial services. These regulations will affect employee pension benefit plans and the actuaries providing actuarial ser- vices to those plans. DATES:Effective date:These regulations are effective on April 29, 2011. FOR FURTHER INFORMATION CONTACT: Patrick McDonough, Execu- tive Director, Joint Board for the Enroll- ment of Actuaries, at (202) 622–8229 (not a toll-free number). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The collections of information con- ta ined in these final regulations have been re viewed and approved by the Office of Ma nagement and Budget in accordance wi th the Paperwork Reduction Act of 1995 (4 4 U.S.C. 3507(d)) under control number 1 545–0951. The collectio ns of information in the regulat ions are in sections 901.1(i), 901 .1(j), 901.10, 901.11(d), 901.11(f)(2 )(D), 901.11(f)(2)(G) and (H), 901.11( f)(3)(ii), 901.11(g)(3), 901.11(j)(1 ), 901.11(j)(2), 901.11(k), 901.11(l)(4 )(v), 901.12(e), and 901.54. These colle ctions of information are re- quired in or der for the Joint Board to carry out it s function under section 3042 of ERISA, wh ich provides that the Joint Board shall , by regulations, establish rea- sonable st andards and qualifications for persons pe rforming actuarial services with respect to plans subject to ERISA and, upon appli cation by any individual, shall enroll su ch individual if the Joint Board finds tha t such individual satisfies such standard s and qualifications, and also pro- vides tha t the Joint Board may, after notice and an opp ortunity for a hearing, suspend or termi nate the enrollment of an indi- vidual w ho fails to discharge his duties under ER ISA or who does not satisfy the require ments for enrollment. An agenc y may not conduct or sponsor, and a per son is not required to respond to, a collec tion of information unless it displays avalid control number. Backgr ound This do cument contains final regu- lation s under section 3042 of the Em- ployee Retirement Income Security Act of 1974 (8 8 Stat. 829), Public Law 93–406 (ERISA ). Section 3042 of ERISA provides that t he Joint Board for the Enrollment of Actua ries (Joint Board) shall, by regula- tions , establish reasonable standards and quali fications for persons performing actu- arial services with respect to plans subject to ER ISA and, upon application by any indi vidual, shall enroll such individual if the J oint Board finds that such individual sati sfies such standards and qualifications. Sect ion 3042 also provides that the Joint Boa rd may, after notice and an opportu- nit y for a hearing, suspend or terminate the enrollment of an individual who fails to d ischarge his duties under ERISA or who does not satisfy the requirements for enr ollment. Consistent wi th section 3042, the Joint Board has prom ulgated regulations at 20 CFR Part 901, a ddressing eligibility for enrollment, requirements for continuing professiona l education of enrolled actu- aries, profe ssional standards for perfor- mance of actu arial services under ERISA, bases for di sciplinary actions and the pro- cedures to b efollowedintakingthose actions. Th e Joint Board last issued com- prehensive amendments to the regulations regarding s ection3042in1988(53FR 34484). In anticipation of amending the Joint Boar d regulations, the Joint Board issued a Re quest for Information (RFI) which was p ublished in theFederal Reg- isteron J une 30, 2004 (69 FR 39376). On December 21, 2007, the Joint Board issued final reg ulations relating to user fees for the initi al enrollment and reenrollment as an enroll ed actuary in theFederal Reg- ister(7 2 FR 72606). On September 21, 2009, th e Joint Board issued proposed regulat ions under section 3042 (74 FR 48030). Written public comments were receiv ed on the proposed regulations, and apubli c hearing was held on February 25, 2010. Explan ation of Provisions I.Over view These r egulations finalize the rules propos ed in (REG–159704–03, 2009–46 I.R.B. 632) (published September 21, 2009), with certain modifications high- light ed in this preamble. II.El igibility for Initial Enrollment These regulations provide that an indi- vidua l applying to be an enrolled actuary must f ulfill (1) an experience requirement, (2) a b asic actuarial knowledge require- ment, and (3) a pension actuarial knowl- edge requirement. All applicants for en- roll mentmustagreetocomplywiththese regu lations and with any other guidance as requ ired by the Joint Board. Thes e regulations provide two alterna- tive ways of satisfying the experience re- quir ement. Within the 10-year period im- medi ately preceding the date of the appli- cat ion, the applicant must have completed 2011–15 I.R.B.610April 11, 2011 either (1) at least 36 months of certified re- sponsible pension actuarial experience, or (2) at least 18 months of certified responsi- ble pension actuarial experience if the ap- plicant has a total of 60 months of certified responsible actuarial experience. These regulations retain the definitions of responsible actuarial experience and responsible pension actuarial experience. Responsible actuarial experience means actuarial experience (1) involving partic- ipation in making determinations that the methods and assumptions adopted in the procedures followed in actuarial services are appropriate in the light of all pertinent circumstances, and (2) demonstrating a thorough understanding of the principles and alternatives involved in such actuarial services. Responsible pension actuarial experience means responsible actuarial experience involving valuations of the liabilities of pension plans, wherein the performance of such valuations requires the application of principles of life con- tingencies and compound interest in the determination, under one or more stan- dard actuarial cost methods, of such of the following as may be appropriate in the particular case: (1) normal cost; (2) accrued liability; (3) payment required to amortize a liability or other amount over a period of time; and (4) actuarial gain or loss. These regulations definecertified re- sponsible actuarial experienceto mean re- sponsible actuarial experience of an indi- vidual that has been certified in writing by the individual’s supervisor. These regula- tions definecertified responsible pension actuarial experienceto mean responsible pension actuarial experience of an individ- ual that has been certified in writing by the individual’s supervisor if the supervisor is an enrolled actuary. If the individual’s su- pervisor is not an enrolled actuary, these regulations provide that the pension actu- arial experience must be certified in writ- ing by both the supervisor and an enrolled actuary with knowledge of the individual’s pension actuarial experience. One commenter requested greater flex- ibility in satisfying the experience require- ments for enrollment based on experience in more specialized pension areas of prac- tice. These regulations retain the require- ment that enrolled actuaries have certified responsible pensionactuarial experience as previously defined because the Joint Board believes that a broad base of pension knowledge is necessaryto recognize issues that may arise even in a specialized area of practice. Nonetheless, the Joint Board rec- ognizes that the broad base of experience needed to become an enrolled actuary does not qualify an enrolled actuary to do every type of work for which an enrolled actuary is required. In response to the proposed regula- tion, one commenter suggested that, given the pace of change and for consistency with the experience requirement for return from inactive status, all of an applicant’s responsible pension experience should be completed within 5 years preceding enrollment (rather than 10 years). The commenter pointed out that for reenroll- ment under the proposed regulations, an inactive enrolled actuary would need more recent experience. These regulations re- tain the rule in the current regulations that requires the experience for initial enroll- ment to have been completed within the previous 10 years, and, as explained in more detail in section IV of this preamble (Inactive Enrolled Actuaries), they retain the requirements in the proposed regula- tions for an enrolled actuary who wishes to return to active status from inactive status that depends on how long the actuary has been on the inactive roster. The difference in the timing of the required experience for initial enrollment and for returning from inactive status reflects the different purposes served by the two requirements. The Joint Board requires enrolled actu- aries who let their enrollment lapse into inactive status to demonstrate their return to active practice with more recent expe- rience. It can be expected that, in general, such actuaries are farther along in their careers and are more likely to quickly build up, or return to, an active indepen- dent practice. For such actuaries, the Joint Board believes that recent pension expe- rience is paramount. In contrast, it can be expected that newly enrolled actuaries will take longer to develop active independent practices. For these actuaries, the Joint Board believes that a longer look-back period is reasonable. In response to the proposed regulations, one commenter suggested that, in order to make sure that an actuary does not lose the opportunity to get credit for responsi- ble actuarial and responsible pension actu- arial experience, enrolled actuaries should be required to certify the experience of po- tential candidates annually and when the potential candidate changes supervisor or employer. The Joint Board feels it is not necessary to add this additional paperwork requirement for enrolled actuaries who su- pervise and train actuaries who are not yet enrolled. The Joint Board will address on a case-by-case basis situations involving the inability of the Executive Director to ob- tain certification of an applicant’s experi- ence. These regulations do not amend the def- inition of basic actuarial knowledge re- quired for initial enrollment. Basic actuar- ial knowledge may be obtained in one of three ways— successful completion of a Joint Board basic examination; successful completion of one or more proctored ex- aminations which are given by an actuarial organization and which the Joint Board has determined cover substantially the same subject areas, have at least comparable lev- els of difficulty, and require at least the same competence as the Joint Board basic examination; or receipt of a bachelor’s or higher degree in either actuarial mathemat- ics or another area which include at least as many semester hours or quarter hours as required by the Joint Board in mathemat- ics, statistics, actuarial mathematics, and other areas determined by the Joint Board. These regulations provide that an ap- plicant may demonstrate pension actuar- ial knowledge through successful comple- tion, within the 10-year period immedi- ately preceding the date of the application for enrollment, of either the Joint Board pension examination (currently adminis- tered as the EA–2A and EA–2B), or an approved pension examination, or exam- inations, given by an actuarial organiza- tion which the Joint Board has determined cover substantially the same subject areas, have at least comparable levels of diffi- culty, and require at least the same com- petence as the Joint Board pension exami- nation. For this purpose, these regulations provide that the date of successful comple- tion of an examination is generally the date a candidate sits for the examination, pro- vided that the candidate receives a passing grade on that examination. However, an applicant who sat for a given examination prior to the effective date of these regula- tions will be deemed to have sat for such examination on the effective date. April 11, 20116112011–15 I.R.B. III.Eligibility for Re-enrollment A.Requirement to file an application for renewal These regulations do not change the re- quirement that an enrolled actuary seeking to renew his or her enrollment must file an application for renewal of enrollment between October 1, 2010 and March 1, 2011, and between October 1 and March 1 of every third year thereafter. An enrolled actuary seeking renewal must complete the required continuing professional education hours prior to submitting an application for renewal, but in no event later than the December 31 immediately preceding the March 1 due date for the application for renewal. These regulations continue to provide that the effective date for renewal of enrollment for individuals who are currently enrolled (and in active status) and who file complete renewal applications by the March 1 due date shall be the April 1 immediately following the March 1 due date. The effective date of renewal of enrollment for an individual who files a complete renewal application after the March 1 due date is the later of the April 1 immediately following the due date of application and the date of the notice of renewal. B.Continuing professional education requirement 1.Number of hours required These regulations retain the general re- quirement that an enrolled actuary earn 36 hours of continuing professional education during each full enrollment cycle. These regulations define theenrollment cycleto mean the three-year period from January 1, 2011, to December 31, 2013, and every three-year period thereafter. Several commenters suggested that the time period for earning continuing profes- sional education credit should extend be- yond the end of the enrollment cycle. The Joint Board decided that it is reasonable to expect enrolled actuaries to make time for satisfying their continuing professional education requirement during the enroll- ment cycle and that extending the end of each enrollment cycle so that it overlaps with the beginning of the next enrollment cycle would create an unnecessary com- plication. However, an enrolled actuary who does not complete the required hours by December 31 of the enrollment cycle maysubmitanapplicationtoreturntoac- tive status after completing the required hours. Such an individual’s reenrollment will be effective on the later of (1) the April 1 immediately following the end of the enrollment cycle or (2) the date that the Joint Board grants the application. These regulations include examples that illustrate when an enrolled actuary’s reenrollment will be effective. These regulations make no change to the rule that newly enrolled actuaries who are initially enrolled during the first year of an enrollment cycle must complete 24 hours of continuing professional educa- tion hours in the enrollment cycle during which they are enrolled. Newly enrolled actuaries who are initially enrolled dur- ing the second year of an enrollment cy- cle must complete 12 hours of continuing professional education hours in the enroll- ment cycle during which they are enrolled. Newly enrolled actuaries who are initially enrolled during the last year of an enroll- ment cycle are exempt from the continu- ing education requirements until the next enrollment cycle, but must file a timely ap- plication for renewal. These regulations require at least 18 hours of continuing professional education in core subject matter during the enroll- ment cycle that ends December 31, 2010, for all enrolled actuaries enrolled during the entire cycle. Thereafter, for actuaries who have already been enrolled for at least one full enrollment cycle before the start of a new enrollment cycle, these regula- tions provide that only 12 of the 36 hours of required continuing professional educa- tion during the new enrollment cycle must consist of core subject matter. These regulations provide that the re- quired continuing professional education hours must be earned after January 1 of the year the enrolled actuary becomes enrolled. Half of the required hours for newly enrolled actuaries must be com- prised of core subject matter. The Joint Board received comments both in favor of and against the proposed two-tiered requirement that 18 hours of continuing professional education be core subject matter for enrolled actuaries dur- ing their first full enrollment cycle but only 12 hours be core subject matter for each subsequent enrollment cycle. In light of the complexity and rapid changes in core subject matter, the Joint Board feels that some ongoing education in core sub- ject matter is always necessary. On the other hand, the Joint Board wishes to en- courage enrolled actuaries at every level of experience to satisfy a portion of their continuing professional education require- ment through participation in non-core programs that are designed to enhance their knowledge in matters related to the performance of pensionactuarial services. The Joint Board feels that the two-tiered approach is the best way to achieve that re- sult. Accordingly, these regulations adopt the two-tiered requirement as proposed. For each full enrollment cycle begin- ning after December 31, 2010, these reg- ulations require at least 2 of the required core hours of continuing professional edu- cation to relate to ethical standards. Some commenters suggestedeither not treating continuing professional education on ethi- cal standards as core subject matter or in- creasing the number of hours required to consist of core subject matter by 2 hours to account for the ethics requirement. The Joint Board feels that fidelity to the high ethical standards of practice is as essential for enrolled actuaries as is knowledge of the technical rules studied in other core ar- eas. Ethics have always been considered to be core subject matter, and an enrolled actuary who wishes to increase the num- ber of hours spent studying the core techni- cal rules may always undertake more than the minimum number of core hours. Ac- cordingly, the Joint Board feels that includ- ing ethical standards as part of the required hours of core subject matter is appropriate. In response to comments, these regula- tions clarify that when core subject mat- ter hours are required (including when an individual seeks to return to active status from inactive status), an individual must complete a minimum of two hours of con- tinuing professional education credit relat- ing to ethical standards, regardless of the total number of core hours required. The regulations require an enrolled ac- tuary to retain certainrecords evidencing completion of continuing professional ed- ucation for three years after the end of the enrollment cycle for which the enrolled ac- tuary claims the credit. To receive credit based on participation in a qualifying pro- gram, the regulations require the enrolled actuary to retain the certificate of comple- 2011–15 I.R.B.612April 11, 2011 tion or certificate of instruction, as appli- cable. To receive credit for publications, these regulations require the enrolled ac- tuary to retain the name of the publisher, the title and author of the publication, a copy of the publication, the date of pub- lication, the total credit hours earned, and the total core and non-core credit hours earned. To receive credit for service on a Joint Board advisory committee, for prepa- ration of Joint Board examinations, for passing examinations sponsored by pro- fessional organizations or societies, or for passing the Joint Board pension examina- tion, these regulations require the enrolled actuary to retain sufficient documentation to establish completion of such hours. 2.Subject matter of continuing professional education— Core and Non-Core Subject Matter All continuing professional education must be in either core or non-core subject matter. The Joint Board received a num- ber of comments requesting expansion and clarification of the content that would be classified as core or non-core credit. These regulations adopt the same definition of core and non-core continuing professional education material as proposed. The Joint Board recognizes that more specific rules proscribing the required content could pro- vide greater certainty for qualifying spon- sors and enrolled actuaries regarding the designation of credits as core and non- core. However, given the frequent changes in pension law, the impact of new court de- cisions, and other changing factors that af- fect an enrolled actuary’s practice, it is im- portant to keep the definition of the content requirement somewhat flexible. The Joint Board relies on the integrity and judgment of the qualifying sponsors to provide ap- propriate material and to appropriately cat- egorize the material as core or non-core. Similarly, a number of commenters re- quested a more specific definition of ethi- cal standards for purposes of meeting the ethics requirement of the continuing ed- ucation requirement. Although the Joint Board has not amended the regulation, it notes that courses that include discussion of actuarial codes of conduct, actuarial re- sponsibilities and any actions discussed in section 901.20 of the regulations would comply with this requirement. These regulations redefine core subject matter as program content and knowledge that is integral and necessary to the sat- isfactory performance of pension actuar- ial services and actuarial certification un- der ERISA and the Internal Revenue Code. Such core subject matter includes the char- acteristics of actuarial cost methods under ERISA, actuarial assumptions, minimum funding standards, titles I, II, and IV of ERISA, requirements with respect to the valuation of plan assets, requirements for qualification of pension plans, maximum deductible contributions, tax treatment of distributions from qualified pension plans, excise taxes related to the funding of quali- fied pension plans and standards of perfor- mance (including ethical standards) for ac- tuarial services. These regulations further specify that core subject matter includes all materials included on the syllabi of any of the pension actuarial examinations of- fered by the Joint Board during the current enrollment cycle and the enrollment cycle immediately preceding the current enroll- ment cycle. These regulations retain the definition of non-core subject matter as program con- tent designed to enhance the knowledge of an enrolled actuary in matters related to the performance of pension actuarial services. These regulations provide that examples of non-core subject matter include econom- ics, computer programming, pension ac- counting, investment and finance, risk the- ory, communication skills, and business and general tax law. 3.Qualifying Program Requirement These regulations do not change the re- quirement that a program used to earn con- tinuing professional education credit must be a qualifying program. These regula- tions modify the definition of qualifying program to be a course of learning that— (A) is conducted by a qualifying sponsor who identifies the program as a qualifying program; (B) is developed by individual(s) qualified in the subject matter; (C) covers current subject matter; (D) includes writ- ten outlines or textbooks; (E) is taught by instructors, discussion leaders, and speak- ers qualified with respect to the course content; (F) includes means for evaluation by the Joint Board of technical content and presentation; (G) provides a certificate of completion to those who have successfully completed the program; and (H) provides a certificate of instruction to those who have served as instructors, discussion leaders, or speakers. These regulations provide that qualify- ing sponsors are sponsors recognized as such by the Executive Director and whose programs offer opportunities for contin- uing professional education in subject matter within the scope of the continu- ing professional education requirement. In response to comments, these regula- tions have been changed so that they do not prohibit a sole proprietor from being a qualifying sponsor. These regulations provide that those seeking recognition as a qualifying sponsor must file a request with the Executive Director and must pro- vide all information deemed necessary for approval by the Executive Director, including information to establish that all programs identified as qualifying pro- grams by the qualifying sponsor will satisfy the requirements for qualifying programs. These regulations provide that recognition as a qualifying sponsor by the Executive Director shall be effective when approved unless the Executive Di- rector provides that it shall be effective on a different date, and shall terminate at the end of the sponsor enrollment cy- cle. The sponsor enrollment cycles are three-year periods that begin one-year later than the enrollment cycles, starting with the sponsor enrollment cycle begin- ning on January 1, 2012. For qualifying sponsors approved on or after January 1, 2008, and before January 1, 2012, the applicable sponsor enrollment cycle will end December 31, 2011. These regulations provide that a pro- gram’s qualifying sponsor shall furnish each individual who successfully com- pleted the qualifying program with a certificate listing the name of the partici- pant, the name of the qualifying sponsor, the title, location, and speaker(s) of each session, the date(s) of participation, the total credit hours earned, how many of those hours consisted of core and non-core subject matter, how many of those hours relate to ethics, and how many of the hours were earned for a formal program with respect to the participant. In response to comments, these regulations clarify that it is only the qualifying sponsor of a program that may issue a certificate of participa- tion. April 11, 20116132011–15 I.R.B. These regulations provide that qualify- ing sponsors shall provide each instructor, discussion leader, or speaker with a certifi- cate of instruction that lists the name of the instructor, discussionleader, or speaker, the name of the qualifying sponsor, the title and location of each session at which the individual was an instructor, discus- sion leader, or speaker, the date(s) of the program, the total credit hours earned, how many of those hours consisted of core and non-core subject matter, how many of those hours relate to ethics, and whether the program is a formal program with re- spect to the instructor. The proposed regulations would have defined separate types of qualifying pro- grams for formal programs, correspon- dence and individual study programs, and teleconferencing programs. These regula- tions do not segregate qualifying programs into these types. Instead, these regulations provide that certain qualifying programs qualify as formal programs. Each type of program that would have been separately defined under the proposed regulations may still satisfy the requirements of a qualifying program. In response to comments, the Joint Board notes that the qualifying sponsor must take reasonable steps to verify par- ticipation. The nature of the program will affect the means by which the qualifying sponsor verifies participation. Under this approach, a qualifying program that is either a teleconference or a program at- tended in person may be a formal program but the manner in which the qualify- ing sponsor verifies participation will be different depending on the manner of par- ticipation. In contrast, a correspondence or individual study program would never be a formal program but could nonetheless be a qualifying program if the qualifying sponsor verifies participation (for exam- ple, with a written examination). In response to comments, these regu- lations clarify that a qualifying sponsor must maintain records to verify that each program it sponsors is a qualifying pro- gram, including the certificates of comple- tion, certificates of instruction, and out- lines and course material. In the case of programs with more than one session, the qualifying sponsor must keep records to verify which session(s) each participant completed. These regulations clarify that all of these records are required to be main- tained for six years after the end of the sponsor enrollment cycle in which the pro- gram was held. Several commenters asked for clarifica- tion on the ability to use emerging tech- nologies for record retention and transmis- sion. The regulations do not specify the format in which records must be main- tained or provided but merely require that copies be provided and produced upon re- quest. Accordingly, records may be main- tained electronically so long as a copy can be produced upon request. 4.Formal programs These regulations require at least one- third of the required hours to consist of participation in a formal program. In re- sponse to comments on the proposed regu- lations, these regulations expand the def- inition of a formal program to take into account modern technologies that permit participation and interaction among partic- ipants who are in different locations. Under these regulations, whether a program qualifies as a formal program is determined on a participant-by-participant basis. These regulations provide that a qualifying program qualifies as a formal program with respect to a participant only if the participant simultaneously partici- pates in the program in the same physical location with at least twoother participants engaged in substantive pension service. The participants with respect to whom the program is a formal program must also have the opportunity to interact with an- other individual qualified with respect to the course content who serves as an in- structor, whether or not the instructor is in the same physical location as the partici- pants. Groups of three or more participants who are in the same physical location may participate in a formal program in person, via the internet, videoconferenc- ing, or teleconferencing. If the qualifying program is pre-recorded, to qualify as a formal program there must be a qualified individual who serves as the instructor and is available to answer questions immedi- ately following the pre-recorded program. Under these regulations, a qualifying program is a formal program with respect to the instructor only if the instructor is in the physical presence of at least three other individuals engaged in substantive pension service. 5.Alternate ways of earning continuing professional education credit These regulations provide six ways to satisfy the continuing professional educa- tion requirement otherthan through partic- ipation in a qualifying program. First, up to half of the required hours may be sat- isfied by serving as an instructor, discus- sion leader, or speaker at a qualifying pro- gram. For this purpose the instructor, dis- cussion leader, or speaker is credited with 4 hours of continuing professional educa- tion credit for each 50 minutes completed during a qualifying program. In response to a comment, these regulations clarify that if the program is a formal program with re- spect to the instructor, only the time spent during the actual program is counted to- ward satisfaction of the formal program re- quirement. The nature of the subject mat- ter will determine whether the credit hours consist of core or non-core subject mat- ter. These regulations expressly provide that panelists, moderators, and others who are not required to prepare substantive sub- ject matter for their portion of the program are not entitled to credit as an instructor, discussion leader, or speaker, but they may qualify for participation in the program. Second, up to 25 percent of the required hours may be awarded to the author, co-au- thor, or a person listed as a major contrib- utor for each hour spent on the creation of peer-reviewed material for publication or distribution on matters directly related to core or non-core subject matter. To qual- ify, the material must be available on rea- sonable terms for acquisition and use by all enrolled actuaries. If the material is re-published or re-dis- tributed, credit will be awarded only for time spent revising a substantial portion of the material; for example, to reflect changes in law or practices relative to the performance of pensionactuarial services. Third, these regulations permit the Joint Boardtoawardcontinuing professional education credit for service on (any of) its advisory committee(s), to the extent that the Joint Board considers awarding such credit is warranted by the service rendered. This provision recognizes the fact that the work done by the members of the advisory committee involves detailed review of materials that constitute core subject matter. 2011–15 I.R.B.614April 11, 2011 Fourth, these regulations permit the Joint Board to award education credit for participation in drafting questions for use on Joint Board examinations or in pretesting its examinations, to the extent that the Joint Board considers awarding such credit appropriate. These regulations limit the education credit for preparation of Joint Board examinations to 50 percent of the continuing professional education requirement for the applicable enrollment cycle. One commenter suggested that the reg- ulations should specify the number of con- tinuing professional education credits that may be granted for service on an Advisory Committee to the Joint Board and other committees involved in the preparation of enrollment examinations, and to eliminate the 50 percent limit on continuing pro- fessional education requirements that can be satisfied by service on an examination writing committee. The regulations retain the Joint Board’s authority to determine how many credits are granted for service rendered. In the Board’s experience, most actuar- ies who serve on an examination writing committeetendtoworkononlyoneof the examinations; the Board believes that the scope of the material covered on a given examination is not broad enough for service on a writing committee to count toward more than 50% of the continu- ing professional education requirements for a given enrollment cycle. Therefore, although the Board appreciatively ac- knowledges the substantial time and effort expended by members of the writing com- mittees, the final regulations retain the 50% limit. The commenter also suggested that service on an Advisory Committee to the Joint Board throughout an entire en- rollment cycle fulfill all the continuing professional education requirements for that cycle, including the requirement to earn credits related to ethical standards. However, the Board does not believe that the exam syllabus or other work typically done by an Advisory Committee includes enough material directly related to ethical standards to fulfill the requirement for this type of credit. Therefore, the Board does not anticipate that credits related to ethical standards would be granted on the basis of service on an Advisory Committee. Fifth, these regulations provide that individuals may earn continuing profes- sional education credit for achieving a passing grade on proctored examinations sponsored by a professional organization or society recognizedby the Joint Board. Separate provisions, described in the next paragraph, apply to the Joint Board’s ex- aminations. These regulations further provide that such credit is limited to the number of hours scheduled for the exami- nation that are attributable to content that qualifies as either core or non-core subject matter and that, regardless of the nature of the content, none of the credit counts toward the core credit requirement. All of an enrolled actuary’s non-core credit re- quirement may be satisfied with this type of credit. Sixth, these regulations provide that en- rolled actuaries who are enrolled prior to the beginning of an enrollment cycle may satisfy the entire continuing professional education requirement for the enrollment cycle by both (1) achieving a passing score on the Joint Board pension examination administered during the enrollment cy- cle and (2) completing a minimum of 12 hours of continuing professional education through participation in formal programs during the enrollment cycle. 6.Waivers These regulations permit the Execu- tive Director to waive all or part of an enrolled actuary’s continuing professional education requirement. An enrolled actu- ary seeking such a waiver must submit a request for a waiver to the Executive Di- rector. This request must contain evidence sufficient to demonstrate that the enrolled actuary made every effort throughout the enrollment cycle to participate in one or more qualifying programs that would have satisfied the continuing professional edu- cation requirements. The enrolled actuary is required to submit supporting documen- tation with the waiver application as well as any additional documentation or expla- nation deemed necessary by the Executive Director. The proposed regulations would have imposed a deadline on the waiver application. Instead, these regulations provide that the enrolled actuary seeking to rely on a waiver must receive the waiver from the Executive Director before filing an application for renewal of enrollment. IV.Inactive Enrolled Actuaries These regulations provide that the Ex- ecutive Director shall maintain a roster of individuals who are in inactive status, in addition to rosters of individuals who are duly enrolled and those whose enrollment has been suspended or terminated. These regulations also give the Executive Direc- tor explicit permission to publish any or all of the rosters, including display on the Joint Board’s web site, to the extent per- mitted by law. These regulations extend the period of time that an individual may remain on the roster of inactive enrolled actuaries from three years to up to three enrollment cy- cles. Under these regulations, a person who is on the roster of inactive enrolled ac- tuaries for three enrollment cycles without returning to active status must satisfy the requirements for initial enrollment to be- come an active enrolled actuary. For this purpose, these regulations provide a transi- tion rule that treats enrolled actuaries who are inactive or retired as of April 1, 2010 as if they were placed on the roster of in- active enrolled actuaries on that date. To remain on the roster of active en- rolled actuaries, an enrolled actuary must submit a timely application for renewal showing satisfaction of the requirements for reenrollment, including completion of the required continuing professional edu- cation hours within the appropriate time frame. The Executive Director will automati- cally move enrolled actuaries who do not submit a timely application for reenroll- ment and enrolled actuaries who submit an application that on its face does not show information sufficient to satisfy the requirements for renewal (for example, an application that does not show sufficient continuing professional education credits). Such enrolled actuaries will be placed on the roster of inactive enrolled actuaries as of April 1 following the March 1 due date for the application. Enrolled actuaries who submit an application that on its face does not show information sufficient to satisfy the requirements for renewal will not be entitled to a refund of the application fee. Enrolled actuaries who submit an applica- tion that on its face does not show informa- tion sufficient to satisfy the requirements for renewal will be considered inactive as of the April 1 immediately following the April 11, 20116152011–15 I.R.B. March 1 due date for the application even if the Executive Director does not become aware of the insufficiency of the applica- tionuntilafterApril1. In addition, the Executive Director may audit renewal applications to verify the in- formation submitted. If the Executive Di- rector determines that the information on the application is inaccurate, the Execu- tive Director will move the enrolled actu- ary to the roster of inactive enrolled actu- aries only after notifying the enrolled ac- tuary of the Executive Director’s intent to do so and giving the enrolled actuary 60 days to respond. The Executive Director will consider any written response in mak- ing a final determination as to eligibility for renewal of enrollment. The Execu- tive Director will notify the enrolled actu- ary by mail of the final determination as to whether or not to place the enrolled actu- ary on the inactive roster at that time. If the Executive Director makes a final determi- nation to place an individual on the roster of inactive enrolled actuaries, the individ- ual may seek review of the determination from the Joint Board by submitting a re- quest to the Joint Board within 30 days of the notice of final determination. These regulations provide that while an individual remains on the roster of inac- tive enrolled actuaries, such person may not indicate to others that he or she is an enrolled actuary and is not eligible to per- form actuarial services as an enrolled actu- ary under ERISA or the Internal Revenue Code. These regulations provide that an individual still on the roster of inactive en- rolled actuaries who wishes to return to ac- tive status may file an application for re- newal of enrollment, but the requirements for reenrollment are different depending on whether the applicant is in the first, sec- ond, or third enrollment cycle on the roster of inactive enrolled actuaries. These regulations provide that individ- uals who apply for renewal of enrollment during their first enrollment cycle on the inactive roster must complete 36 hours of continuing professional education be- tween the beginning of the prior enroll- ment cycle and the date of the application for renewal. These regulations provide that individ- uals who apply for renewal of enrollment during their second enrollment cycle on the inactive roster must complete 48 hours of continuing professional education credit plus demonstrate 18 months of certified responsible pension actuarial experience. These regulations provide that the con- tinuing professional education credit must have been earned since the beginning of the applicant’s first enrollment cycle on the inactive roster. The qualifying responsi- ble pension actuarial experience must have occurred after the beginning of the appli- cant’s first enrollment cycle on the inactive list. These regulations provide that individ- uals who apply for renewal of enrollment during their third enrollment cycle on the inactive roster must complete 60 hours of continuing professional education credit plus demonstrate 18 months of certified responsible pension actuarial experience. For this purpose, these regulations provide that the continuing professional education credit must have been earned since the beginning of the applicant’s second en- rollment cycle and the qualifying actuarial experience must have occurred after the beginning of the applicant’s second enroll- ment cycle on the inactive list. Regardless of when the inactive en- rolled actuary applies for renewal, these regulations provide that any continuing professional education credit used to qual- ify for reenrollment may not also be used to satisfy the continuing professional edu- cation requirement during the applicant’s first enrollment cycle back on the active roster. V.Standards of Performance These regulations also expand upon the standards of performance of actuarial ser- vices. These regulations add a requirement that an enrolled actuary shall perform actu- arial services only in accordance with all of the duties and requirements for such per- sons under applicable law and consistent with relevant generally accepted standards for professional responsibility and ethics. Several comments were received with respect to the standards of practice provi- sions that were modeled on the obligations set forth in Circular 230 of all persons practicing before the IRS. The Joint Board believes that the rules in Circular 230 pertaining to due diligence, solicitations, prompt disposition of pending matters, and the return of client records are equally pertinent to practice before the PBGC and DOL, as well as the IRS. These provisions have been retained unchanged from the proposal, except that with respect to the return of client records. With respect to the return of client records, a commenter asked that the provision be clarified to provide the ability to retain records that implicate intellectual property rights. The Board believes that the duty to return or make available records to the client should not be made narrower than the scope of the provision in Circular 230. Nonetheless, to conform more specifically to the concept of Circular 230 and the pur- pose of incorporating the provisions into these regulations, the provision regarding “Records of the client” for this purpose has been modified to provide only for the return of documents necessary to comply with legal obligations under ERISA and the Internal Revenue Code. These final regulations modify the rules regarding conflicts of interest. The Joint Board received several comments on the proposed rule to require that dis- closure of conflicts of interest be made in writing to all affected parties and that the affected parties agree in writing to the enrolled actuary performing the services. After consideration of these comments, the Joint Board has determined that it will adopt rules that are similar to the con- flict of interest rules that apply to those practicing before the Internal Revenue Service. See Treasury Department Circu- lar No. 230, 31 C.F.R. 10.29. Accordingly, the regulations provide that, unless an exception applies, anenrolled actuary shall not perform actuarial services for a client if the representation involves a conflict of interest. A conflict of interest exists if either (1) the representation of one client will be directly adverse to another client; or (2) there is a significant risk that the representation of one or more clients will be materially limited by the enrolled actuary’s responsibilities to another client, a former client, or by a personal interest of the enrolled actuary. Notwithstanding the existence of a conflict of interest, the enrolled actuary may represent a client if (1) the enrolled actuary reasonably believes that the enrolled actuary will be able to provide competent and diligent representation to each affected client, (2) the representation is not prohibited by law, and (3) each affected client waives the conflict of interest and gives informed consent, at the time the existence of 2011–15 I.R.B.616April 11, 2011 the conflict of interest is known by the enrolled actuary. Nothing in these final regulations is in- tended to alter the rules for practice before the Internal Revenue Service under Trea- sury Department Circular No. 230. The proposed regulations would have imposed a requirement that, upon learn- ing of another enrolled actuary’s material violation of the standards of performance of actuarial services, an enrolled actuary report the violation to the Executive Direc- tor. The Joint Board received many com- ments in response to this proposal. Several commenters suggested the elimination of the proposed reporting requirement. In the alternative, commenters asked that the requirement be significantly modi- fied. Commenters were concerned that the reporting requirement would discourage cooperation and sharing of information among enrolled actuaries and that it would conflict with other rules that require en- rolled actuaries not to disclose confidential or privileged information. Commenters also suggested that an enrolled actuary should not be required to report violations that are resolved through discussion with the other enrolled actuary. Finally, com- menters asked for a clarification of the term material violation. In light of the comments received, the Joint Board decided not to include the pro- posed reporting requirement as part of the standards of performance for enrolled ac- tuaries. Without amendment, the regula- tions already include a rule that if an offi- cer or employee of the Department of Trea- sury, the Department of Labor, the Pension Benefit Guaranty Corporation, or a mem- ber of the Joint Board has reason to be- lieve that an enrolled actuary has violated any provision of the regulations, or if such person receives information to that effect, he or she may informthe Executive Direc- tor. Without amendment, the regulations already provide that others may make such a report to the Executive Director, an offi- cer or employee of the Department of Trea- sury, the Department of Labor, the Pension Benefit Guaranty Corporation, or a mem- ber of the Joint Board. These regulations amend that provision only to provide that the optional report should be made directly to the Executive Director. Self-policing is an important part of maintaining the high standards of the profession, and the Joint Board encourages enrolled actuaries to re- port violations of the regulations to the Executive Director. However, in light of the concerns raised by commenters, the Joint Board decided not to change the ex- isting rule except to provide that any report should be made directly only to the Exec- utive Director. In response to comments, these regu- lations clarify that the requirement for an enrolled actuary to ensure that the actu- arial assumptions are reasonable individ- ually and in combination, and the actuar- ial cost method and the actuarial method of valuation of assets are appropriate applies unless the actuarialassumptions or meth- odsaremandatedbylaw. Special Analyses Executive Orders 13563 and 12866 direct agencies to assess all costs and ben- efits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has been designated a “significant regulatory action” although not econom- ically significant, under section 3(f) of Executive Order 12866. Accordingly, the rule has been reviewed by the Office of Management and Budget. It also has been determined that sec- tion 553(b) of the Administrative Proce- dure Act (5 U.S.C. chapter 5) does not ap- ply to these regulations. It is hereby certi- fied that the collection of information im- posed by these regulations will not have a significant economic impact on a sub- stantial number of small entities. There are presently only about 4000 enrolled ac- tuaries and the changes made by the final regulations will reduce the overall collec- tion of information burden by removing the requirement for participants in continu- ing education courses to keep course mate- rials. Qualified sponsors of continuing ed- ucation courses, a few of which are small entities, have a paperwork burden under these regulations that is substantially the same as the pre-existing burden. There- fore, the economic impact of the collection of information requirement will not be sig- nificant and the number of small entities affected by the collection of information requirement will not be substantial. Ac- cordingly, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. The notice of proposed rulemaking was sub- mitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. Drafting Information The principal author of these regula- tions is Michael P. Brewer, IRS Office of Division Counsel/Associate Chief Coun- sel (Tax Exempt and Government Enti- ties). However, other personnel from the Joint Board and the IRS participated in their development. ***** Adoption of Amendments to the Regulations Accordingly, 20 CFR part 901 is amended as follows: PART 901—REGULATIONS GOVERNING THE PERFORMANCE OF ACTUARIAL SERVICES UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 Paragraph 1. The authority citation for part 901 continues to read in part as fol- lows: Authority: These rules are issued under authority of 88 Stat. 1002; 29 U.S.C. 1241, 1242. See also 5 U.S.C. 301; 31 U.S.C. 330; and 31 U.S.C. 321. §901.0 [Amended] Par. 2. Section 901.0 is amended by removing the phrase “subpart D of this part is reserved and will setforth” and adding in its place the phrase “subpart D sets forth” in the second sentence. Par. 3. Section 901.1 is amended by: A. Amending paragraph (g) by remov- ing the phrase “approved by the Joint Board (or its designee) to perform” and adding in its place the phrase “approved by the Joint Board for the Enrollment of Ac- tuaries (the Joint Board), or its designee, to perform”. B. Adding new paragraphs (i), (j) and (k) to read as follows: April 11, 20116172011–15 I.R.B. §901.1 Definitions. ***** (i)Certified responsible actuarial expe- riencemeans responsible actuarial experi- ence of an individual that has been certi- fied in writing by the individual’s supervi- sor. (j)Certified responsible pension actu- arial experiencemeans responsible pen- sion actuarial experience of an individual that has been certified in writing by the in- dividual’s supervisor if the supervisor is an enrolled actuary. If the individual’s super- visor is not an enrolled actuary, the pen- sion actuarial experience must be certified in writing by both the supervisor and an en- rolled actuary with knowledge of the indi- vidual’s pension actuarial experience. (k)Enrollment cyclemeans the three- year period from January 1, 2011, to De- cember 31, 2013, and every three-year pe- riod thereafter. §901.10 [Amended] Par. 4. Section 901.10 is amended by: A. Amending paragraph (a) by remov- ing the phrase “shall agree to comply with the regulations of the Joint Board” and adding in its place the phrase “shall agree to comply with these regulations and any other guidance as required by the Joint Board”. B. Adding a second sentence to para- graph (a) to read “A reasonable non-re- fundable fee may be charged for each ap- plication for enrollment filed.” Par. 5. Section 901.11 is amended by: A. Revising the first sentence of para- graph (a). B. Revising paragraphs (c) and (d). C. Revising paragraphs (e) introductory text, (e)(1) and (e)(2)(i). D. Revising the last sentence of para- graph (e)(2)(ii). E. Adding new paragraphs (e)(2)(iv), (v), and (vi). F. Removing paragraph (e)(3). G. Revising paragraphs (f)(1) and (f)(1)(i). H. Revising the second sentence of paragraph (f)(1)(ii), and paragraph (f)(1)(iv). I. Revising paragraph (f)(2). J. Adding paragraph (f)(3). K. Revising paragraph (g). L. Removing the last two sentences of paragraph (h)(2). M. Removing paragraph (l). N. Redesignating paragraphs (i), (j), and (k) as paragraphs (j), (k), and (l), re- spectively. O. Adding and reserving new paragraph (i). P. Revising newly redesignated para- graphs (j) and (k). Q. Revising the first sentences of newly redesignated paragraphs (l)(1) and (l)(2), and the second sentence of newly redesig- nated paragraph (l)(3). R. Revising newly redesignated para- graphs (l)(4), (l)(5), (l)(6), and (l)(7), and the first sentence of newly redesignated paragraph (l)(9). S. Revising paragraph (n). T. Adding new paragraphs (o) and (p). The revisions and additions read as fol- lows: §901.11 Enrollment procedures. (a)Enrollment. The Joint Board shall enroll each applicant it determines has met the requirements of these regulations, and any other guidance as required by the Joint Board, and shall so notify the applicant. *** ***** (c)Rosters—(1)Maintenance of ros- ters. The Executive Director shall main- tain rosters of— (i) All actuaries who are duly enrolled under this part; (ii) All individuals whose enrollment has been suspended or terminated; and (iii) All individuals who are in inactive status. (2)Publication of Rosters. The Exec- utive Director may publish any or all of the rosters, including display on the Joint Board’s Web site, to the extent permitted by law. (d)Renewal of enrollment. To maintain active enrollment to perform actuarial ser- vices under ERISA, each enrolled actuary is required to have his/ her enrollment re- newed as set forth herein. (1) Each enrolled actuary must file an application for renewal of enroll- ment on the prescribed form no ear- lier than October 1, 2010, and no later than March 1, 2011, and no earlier than October 1 and no later than March 1 of every third year thereafter. If March 1 is a Saturday, Sunday, or holiday, the due date shall be the next day that is not a Saturday, Sunday, or holiday. (2) The effective date of renewal of en- rollment for an individual who files a com- plete renewal application within the time period described in paragraph (d)(1) of this section is the April 1 immediately follow- ing the date of application. The effective date of renewal of enrollment for an indi- vidual who files a complete renewal appli- cation after the due date described in para- graph (d)(1) of this section is the later of the April 1 immediately following the due date of application and the date of the no- tice of renewal. (3) Forms required for renewal may be obtained from the Executive Director. (4) A reasonable non-refundable fee may be charged for each application for renewal of enrollment filed. (e)Condition for renewal: Continuing professional education. Toqualifyforre- newal of enrollment, an enrolled actuary must certify, on the form prescribed by the Executive Director, that he/she has com- pleted the applicable minimum number of hours of continuing professional education credit required by this paragraph (e) and satisfied the recordkeeping requirements of paragraph (j) of this section. (1)Transition rule for renewal of enrollment effective April 1, 2011.(i) A minimum of 36 hours of continuing professional education credit must be completed between January 1, 2008 and December 31, 2010. Of the 36 hours, at least 18 must consist of core subject matter; the remainder may be non-core subject matter. (ii) An individual who received ini- tial enrollment in 2008 must complete 24 hours of continuing professional educa- tion by December 31, 2010. An individual who received initial enrollment in 2009 must complete 12 hours of continuing professional education by December 31, 2010. In either case, at least one-half of the applicable hours must consist of core subject matter; the remainder may consist of non-core subject matter. For purposes of this paragraph (e)(1)(ii), credit will be awarded for continuing professional education completedafter January 1 of the year in which initial enrollment was received. (iii) An individual who receives initial enrollment during 2010 is exempt from the 2011–15 I.R.B.618April 11, 2011 continuing professional education require- ments during 2010, but must file a timely application for renewal during the time pe- riod described in paragraph (d)(1) of this section. (2)For renewal of enrollment effec- tive April 1, 2014, and every third year thereafter. (i) A minimum of 36 hours of continuing professional education credit must be completed between January 1, 2011 and December 31, 2013, and between January 1 and December 31 for each three-year period subsequent thereto. (ii) * * * For purposes of this paragraph (e)(2)(ii), credit will be awarded for con- tinuing professional education completed after January 1 of the year in which initial enrollment was received. ***** (iv) For an individual who was initially enrolled before January 1, 2008 (and who has therefore completed at least one full enrollment cycle as of January 1, 2011), at least 12 hours of the 36 hours of con- tinuing professional education required for each enrollment cycle must consist of core subject matter; the remainder may consist of non-core subject matter. (v) For an individual who was initially enrolled on or after January 1, 2008, at least 18 hours of his or her 36 hours of con- tinuing professional education required for the first full enrollment cycle must con- sist of core subject matter. Thereafter, for such individuals, for each subsequent en- rollment cycle at least 12 hours of the 36 hours must consist of core subject matter. In each instance, the remainder may con- sist of non-core subject matter. (vi) When core subject matter hours are required (including when an individual seeks to return to active status from inac- tive status), an individual must complete a minimum of two hours of continuing pro- fessional education credit relating to ethi- cal standards, regardless of the total num- ber of core hours required. (f)Qualifying continuing professional education—(1)In general. To qualify for continuing professional education credit an enrolled actuary must complete his/her hours of continuing professional education credit under a qualifying program, within the meaning of paragraph (f)(2) of this section, consisting of core and/or non-core subject matter. In addition, a portion of the continuing professional education credit may be earned under the provisions of paragraph (g) of this section. In any event, no less than 1/3 of the total hours of continuing professional education credit required for an enrollment cycle must be obtained by participation in a formal pro- gram or programs, within the meaning of paragraph (f)(2)(ii)(A) of this section. (i) Core subject matter is program con- tent and knowledge that is integral and necessary to the satisfactory performance of pension actuarial services and actuar- ial certification under ERISA and the In- ternal Revenue Code. Such core subject matter includes the characteristics of actu- arial cost methods under ERISA, actuarial assumptions, minimum funding standards, titles I, II, and IV of ERISA, requirements with respect to the valuation of plan assets, requirements for qualification of pension plans, maximum deductible contributions, tax treatment of distributions from quali- fied pension plans, excise taxes related to the funding of qualified pension plans and standards of performance (including ethi- cal standards) for actuarial services. Core subject matter includes all materials in- cluded on the syllabi of any of the pension actuarial examinations offered by the Joint Board during the current enrollment cycle and the enrollment cycle immediately pre- ceding the current enrollment cycle. (ii) * * * Examples include econom- ics, computer programming, pension ac- counting, investment and finance, risk the- ory, communication skills, and business and general tax law. ***** (iv) The same course of study cannot be used more than once within a given 36-month period to satisfy the continu- ing professional education requirements of these regulations. A program or session bearing the same or a similar title to a pre- vious one may be used to satisfy the re- quirements of these regulations if the ma- jor content of the program or session dif- fers substantively from the previous one. (2)Qualifying Program—(i)In gen- eral. A qualifying program is a course of learning that— (A) Is conducted by a qualifying spon- sor, within the meaning of paragraph (f)(3) of this section, who identifies the program as a qualifying program; (B) Is developed by individual(s) qual- ified in the subject matter; (C) Covers current subject matter; (D) Includes written outlines or text- books; (E) Is taught by instructors, discussion leaders, and speakers qualified with re- spect to the course content; (F) Includes means for evaluation by the Joint Board of technical content and presentation; (G) Provides a certificate of comple- tion, within the meaning of paragraph (f)(3)(iv) of this section, to each person who successfully completed the program; and (H) Provides a certificate of instruction, within the meaning of paragraph (f)(3)(v) of this section, to each person who served an instructor, discussion leader, or speaker. (ii)Formal programs—(A)Partici- pants. Formal programs are programs that meet all of the requirements of this paragraph (f)(2)(ii) and paragraph (f)(2)(i) of this section. Whether a program qual- ifies as a formal program is determined on a participant-by-participant basis. A qualifying program qualifies as a formal program with respect to a participant if the participant simultaneously participates in the program in the same physical location with at least two other participants en- gaged in substantive pension service, and the participants have the opportunity to interact with another individual qualified with respect to the course content who serves as an instructor, whether or not the instructor is in the same physical loca- tion. Groups of three or more participants who are in the same physical location may participate in a formal program in person or via the internet, videoconferenc- ing, or teleconferencing. If the qualifying program is pre-recorded, to qualify as a formal program, there must be a qualified individual who serves as the instructor and is available to answer questions immedi- ately following the pre-recorded program. (B)Instructor. A qualifying program is a formal program with respect to the in- structor only if the program is a formal pro- gram under paragraph (f)(2)(ii)(A) of this section with respect to at least three partic- ipants and the instructor is in the physical presence of at least three other individuals engaged in substantive pension service. (3)Qualifying sponsors—(i)In gen- eral. Qualifying sponsors are organiza- tions recognized by the Executive Director whose programs offer opportunities for April 11, 20116192011–15 I.R.B. continuing professional education in sub- ject matter within the scope of this section. (ii)Recognition by the Executive Direc- tor. An organization requesting qualifying sponsor status shall file a sponsor agree- ment request with the Executive Director and furnish information in support of such request as deemed necessary for approval by the Executive Director. Such informa- tion shall include sufficient information to establish that all programs designated as qualifying programs offered by the quali- fying sponsor will satisfy the requirements of paragraph (f)(2) of this section. Recog- nition as a qualifying sponsor by the Exec- utive Director shall be effective when ap- proved, unless the Executive Director pro- vides that it shall be effective on a differ- ent date, and shall terminate at the end of the sponsor enrollment cycle. The Exec- utive Director may publish the names of such sponsors on a periodic basis. (iii)Sponsor enrollment cycle—(A) Transition sponsor enrollment cycle.The transition sponsor enrollment cycle is the period beginning on January 1, 2008 and ending December 31, 2011. (B)Subsequent sponsor enrollment cycles. After the transition sponsor en- rollment cycle, the sponsor enrollment cycle means the three-year period from January 1, 2012, to December 31, 2014, and every three-year period thereafter. (iv)Certificates of completion.Upon verification of successful completion of a qualifying program, the program’s quali- fying sponsor shall furnish each individual who successfully completed the qualifying program with a certificate listing the fol- lowing information: (A) The name of the participant. (B) The name of the qualifying sponsor. (C) The title, location, and speaker(s) of each session attended. (D) The dates of the program. (E) The total credit hours earned, the to- tal core and non-core credit hours earned, and how many of those hours relate to ethics. (F) Whether or not the program is a for- mal program with respect to the partici- pant. (v)Certificates of instruction. The pro- gram’s qualifying sponsor shall furnish to each instructor, discussion leader, or speaker, a certificatelisting the following information: (A) The name of the instructor, discus- sion leader, or speaker. (B) The name of the qualifying sponsor. (C) The title and location of the pro- gram. (D) The dates of the program. (E) The total credit hours earned and the total core and non-core credit hours earned for the program, and how many of those hours relate to ethics. (F) Whether or not the program is a for- mal program with respect to the instructor. (g)Alternative means for completion of credit hours—(1)In general. In addition to credit hours completed under paragraph (f) of this section, an enrolled actuary may be awarded continuing professional edu- cation credit under the provisions of this paragraph (g). (2)Serving as an instructor, discussion leader or speaker. (i) Four credit hours (that is, 200 minutes) of continuing profes- sional education credit will be awarded for each 50 minutes completed as an instruc- tor, discussion leader, or speaker at a qual- ifying program which meets the continu- ing professional education requirements of paragraph (f) of this section. If the qualify- ing program is a formal program with re- spect to the instructor, only the time spent during the actual program is counted to- ward satisfaction of the formal program re- quirement. (ii) The credit for instruction and prepa- ration may not exceed 50 percent of the continuing professional education require- ment for an enrollment cycle. (iii) Presentation of the same material as an instructor, discussion leader, or speaker more than one time in any 36-month period will not qualify for continuing professional education credit. A program will not be considered to consist of the same material if a substantial portion of the content has been revised to reflect changes in the law or practices relative to the performance of pension actuarial service. (iv) Credit as an instructor, discussion leader, or speaker will not be awarded to panelists, moderators, or others who are not required to prepare substantive sub- ject matter for their portion of the pro- gram. However, such individuals may be awarded credit for attendance, provided the other provisions of this section are met. (v) The nature of the subject matter will determine if credit will be of a core or non- core nature. (3)Credit for publications. (i) Con- tinuing professional education credit will be awarded for the creation of peer-re- viewed materials for publication or distri- bution with respect to matters directly re- lated to the continuing professional educa- tion requirements of this section. Credit will be awarded to the author, co-author, or a person listed as a major contributor. (ii) One hour of credit will be allowed for each hour of preparation time of the material. It will be the responsibility of the person claiming the credit to maintain records to verify preparation time. (iii) Publication or distribution may uti- lize any available technology for the dis- semination of written, visual or auditory materials. (iv) The materials must be available on reasonable terms for acquisition and use by all enrolled actuaries. (v) The credit for the creation of ma- terials may not exceed 25 percent of the continuing professional education require- ment of any enrollment cycle. (vi) The nature of the subject matter will determine if credit will be of a core or non-core nature. (vii) Publication of the same material more than one time will not qualify for continuing professional education credit. A publication will not be considered to consist of the same material if a substantial portion has been revised to reflect changes in the law or practices relative to the per- formance of pension actuarial service. (4)Service on Joint Board advisory committee(s). Continuing professional ed- ucation credit may be awarded by the Joint Board for service on (any of) its advisory committee(s), to the extent that the Joint Boardconsiderswarrantedbytheservice rendered. (5)Preparation of Joint Board exami- nations. Continuing professional educa- tion credit may be awarded by the Joint Board for participation in drafting ques- tions for use on Joint Board examinations or in pretesting its examinations, to the ex- tent the Joint Board determines suitable. Such credit may not exceed 50 percent of the continuing professional education requirement for the applicable enrollment cycle. (6)Examinations sponsored by profes- sional organizations or societies. Individ- uals may earn continuing professional edu- cation credit for achieving a passing grade 2011–15 I.R.B.620April 11, 2011 on proctored examinations sponsored by a professional organization or society recog- nized by the Joint Board. Such credit is limited to the number of hours scheduled for each examination and may be applied only as non-core credit provided the con- tent of the examination is core or non-core. No credit may be earned for hours attribut- able to any content that is neither core nor non-core. (7)Joint Board pension examination. Individuals may establish eligibility for re- newal of enrollment for any enrollment cy- cle by— (i) Achieving a passing score on the Joint Board pension examination, as de- scribed in §901.12(d)(1)(i), administered under this part during the applicable en- rollment cycle; and (ii) Completing a minimum of 12 hours of qualifying continuing professional edu- cation by attending formal program(s) dur- ing the same applicable enrollment cycle. This option of satisfying the continuing professional education requirements is not available to those who receive initial en- rollment during the enrollment cycle. ***** (i) [Reserved]. (j)Recordkeeping requirements—(1) Qualifying sponsors. A qualifying spon- sor must maintain records to verify that each program it sponsors is a qualifying program within the meaning of paragraph (f)(2) of this section, including the cer- tificates of completion, certificates of instruction, and outlines and course mate- rial. In the case of programs of more than one session, records must be maintained to verify each session of the program that is completed by each participant. Records required to be maintained under this para- graph must be retained by the qualifying sponsor for a period of six years following the end of the sponsor enrollment cycle in which the program is held. (2)Enrolled actuaries—(i)Qualify- ing program credits as a participant.To receive continuing professional educa- tion credit for completion of hours of continuing professional education under paragraph (f) of this section, an enrolled actuary must retain all certificates of com- pletion evidencing completion of such hours for the three-year period following the end of the enrollment cycle in which the credits are earned. (ii)Qualifying program credits as an in- structor, discussion leader, or speaker.To receive continuing professional education credit for completion of hours earned un- der paragraph (g)(2) of this section, an en- rolled actuary must retain all certificates of instruction evidencing completion of such hours for the three-year period following the end of the enrollment cycle in which the credits are earned. (iii)Credit for publications. To receive continuing professional education credit for a publication under paragraph (g)(3) of this section, the following information must be maintained by the enrolled actu- ary for the three-year period following the end of the enrollment cycle in which the credits are earned: (A) The name of the publisher. (B) The title and author of the publica- tion. (C) A copy of the publication. (D) The date of the publication. (E) The total credit hours earned, and the total core and non-core credit hours earned, and how many of those hours relate to ethics. (iv)Other credits. To receive continu- ing professional education credit for hours earned under paragraphs (g)(4) through (g)(7) of this section, an enrolled actuary must retain sufficient documentation to establish completion of such hours for the three-year period following the end of the enrollment cycle in which the credits are earned. (k)Waivers. (1) Waiver from the continuing professional education re- quirements for a givenperiodmaybe granted by the Executive Director only under extraordinary circumstances, and upon submission of sufficient evidence that every effort was made throughout the enrollment cycle to participate in one or more qualifying programs that would have satisfied the continuing professional education requirements. (2) A request for waiver must be ac- companied by appropriate documentation. The individual will be required to furnish any additional documentation or explana- tion deemed necessary by the Executive Director. (3) The individual will be notified by the Executive Director of the disposition of the request for waiver. If the waiver is not approved, and the individual does not oth- erwise satisfy the continuing professional education requirements within the allotted time, the individual will be placed on the roster of inactive enrolled individuals. (4)Individualsseekingtorelyona waiver of the continuing professional ed- ucation requirements must receive the waiver from the Executive Director before filing an application for renewal of enroll- ment. (l)Failure to comply. (1) Compliance by an individual with the requirements of this part shall be determined by the Exec- utive Director. * * * (2) The Executive Director may require any individual, by first class mail sent to his/her mailing address of record with the Joint Board, to provide copies of any records required to be maintained under this section. * * * (3)***Arequestforreviewandthe reasons in support of the request must be filed with the Joint Board within 30 days of the date of the notice of failure to comply. (4)Inactive status—(i)Automatic placement on the inactive roster.To remain on the roster of active enrolled actuaries, an enrolled actuary must submit a timely application for renewal show- ing satisfaction of the requirements for reenrollment, including completion of the required continuing professional educa- tion hours, within the appropriate time frame. The Executive Director will move an enrolled actuary who does not sub- mit such an application for reenrollment from the roster of enrolled actuaries to the roster of inactive enrolled actuaries as of April 1 following the March 1 due date for the application. However, if an enrolled actuary completes the required number of continuing professional education hours after the close of the enrollment cycle, submits an application for reenrollment, and is informed by the Executive Director before April 1st that the enrollment has been renewed, then the Executive Director will not move such individual to the roster of inactive enrolled actuaries at that time. (ii)Placement on the inactive roster af- ter notice and right to respond. The Exec- utive Director will move an enrolled actu- ary who does submit a timely application of renewal that shows timely completion of the required continuing professional ed- ucation to the inactive roster only after giv- ing the enrolled actuary 60 days to respond as described in paragraph (l)(1) of this sec- tion. April 11, 20116212011–15 I.R.B. (iii)Length on time on inactive roster. An individual may remain on the roster of inactive enrolled actuaries for a period up to three enrollment cycles from the date renewal would have been effective. (iv)Consequence of being on the inac- tive roster. An individual in inactive status will be ineligible to perform pension ac- tuarial services as an enrolled actuary un- der ERISA and the Internal Revenue Code. During such time in inactive status or at any other time an individual is ineligible to perform pension actuarial services as an enrolled actuary, theindividual shall not in any manner, directly or indirectly, in- dicate he or she is so enrolled, or use the term ’’enrolled actuary,’’ the designation ’’E.A.,’’ or other form of reference to eligi- bility to perform pension actuarial services as an enrolled actuary. (v)Returning to active status.Anin- dividual placed in inactive status may re- turn to active status by filing an applica- tion for renewal of enrollment (with the appropriate fee) and providing evidence of the completion of all required continuing professional education hours and of sat- isfaction of any applicable requirements for qualifying experience under paragraph (l)(7) of this section.If an application for return to active status is approved, the indi- vidual will be eligible to perform services as an enrolled actuary effective with the date the notice of approval is mailed to that individual by the Executive Director. (5)Time for return to active enrollment. (i) An individual placed in inactive status must file an application for return to active enrollment, and satisfy the requirements for return to active enrollment as set forth in this section, within three enrollment cy- cles of being placed in inactive status. Oth- erwise, the name of such individual will be removed from the inactive enrollment ros- ter and his/her enrollment will terminate. (ii) For purposes of paragraph (l)(5)(i) of this section, an individual who is in in- active or retired status as of April 1, 2010, will be deemed to have been placed in in- active status on April 1, 2010. (6) An individual in inactive status may satisfy the requirements for return to active enrollment at any time during his/her pe- riod of inactive enrollment. If only com- pletion of the continuing professional ed- ucation requirement is necessary, the ap- plication for return to active enrollment may be filed immediately upon such com- pletion. If qualifying experience is also required, the application for return to ac- tive enrollment may not be filed until the completion of both the continuing profes- sional education and qualifying experience requirements set forth in this subsection. Continuing professional education credits applied to meet the requirements for reen- rollment under this paragraph (l)(6) may notbeusedtosatisfytherequirementsof the enrollment cycle in which the individ- ual has been placed back on the active ros- ter. (7)Continuing professional education requirements for return to active enroll- ment from inactive status.(i)Duringthe first inactive enrollment cycle; 36 hours of qualifying continuing professional ed- ucation as set forth in paragraph (e)(2) of this section, without regard to paragraph (e)(2)(ii) or (e)(2)(iii) of this section, must be completed. Any hours of continuing professional education credit earned dur- ing the immediately prior enrollment cycle may be applied in satisfying this require- ment. (ii) During the second inactive enroll- ment cycle; four-thirds of the qualifying continuing professional education require- ments as set forth in paragraph (e)(2) of this section (that is, 48 hours), without re- gard to paragraph (e)(2)(ii) or (e)(2)(iii) of this section, plus eighteen months of cer- tified responsible pension actuarial expe- rience, must be completed since the start of the first inactive enrollment cycle. Any hours of continuing professional education credit earned during the first inactive en- rollment cycle may be applied in satisfying this requirement. (iii) During the third inactive enroll- ment cycle: five-thirds of the qualifying continuing professional education require- ments as set forth in paragraph (e)(2) of this section, (that is, 60 hours), without re- gard to paragraph (e)(2)(ii) or (e)(2)(iii) of this section plus eighteen months of certi- fied responsible pension actuarial experi- ence, must be completed since the start of the second inactive enrollment cycle. Any hours of continuing professional education credit earned during the second inactive enrollment cycle may be applied in satis- fying this requirement. No hours earned during the first inactive enrollment cycle may be applied in satisfying this require- ment. ***** (9) An individual who has certified in good faith that he/she has satisfied the continuing professional education re- quirements of this section will not be considered to be in non-compliance with such requirements on the basis of a pro- gram he/she has attended later being found inadequate or not in compliance with the requirements for continuing professional education. * * * ***** (n)Verification. The Executive Di- rector or his/her designee may request and review the continuing professional education records of an enrolled actuary, including programs attended, in a manner deemed appropriate to determine compli- ance with the requirements and standards for the renewal of enrollment as provided in this section. The Executive Director may also request and review the records of any qualifying sponsor in a manner deemed appropriate to determine compli- ance with the requirements of paragraphs (f)(3) and (j)(1) of this section. (o)Examples. The following exam- ples illustrate the application of the rules of paragraph (l)(7) of this section and the effective date of an enrolled actuary’s re- newal: Example 1. Individual E, who was initially en- rolled before January 1, 2008, completes 12 hours of core continuing professional education credit and 24 hours of non-core continuing professional education credit between January 1, 2011, and December 31, 2013. E files a complete application for reenrollment on February 28, 2014. E’s reenrollment is effective as of April 1, 2014. Example 2. Individual F, who was initially en- rolled before January 1, 2008, also completes 12 hours of core continuing professional education credit and 24 hours of non-core continuing profes- sional education credit between January 1, 2011, and December 31, 2013. However, F does not file an application for reenrollment until March 20, 2014. The Joint Board notifies F that it has granted F’s application on June 25, 2014. Accordingly, effective April 1, 2014, F is placed on the roster of inactive enrolled actuaries. F returns to active status as of June 25, 2014. F is ineligible to perform pension ac- tuarial services as an enrolled actuary under ERISA and the Internal Revenue Code from April 1 through June 24, 2014. Example 3. Individual G, who was initially enrolled before January 1, 2008, completes only 8 hours of core continuing professional education credit and 24 hours of non-core continuing profes- sional education credit between January 1, 2011, and December 31, 2013. G completes another 6 hours of core continuing professional education on January 15, 2014, and files an application for return to active status on January 20, 2014. G’s 2011–15 I.R.B.622April 11, 2011 application shows the timely completion of 32 hours of continuing professional education plus the additional 4 hours of continuing professional education earned after the end of the enrollment cycle. The Joint Board notifies G that it has granted the application on April 20, 2014. Accordingly, effective April 1, 2014, G is placed on the roster of inactive enrolled actuaries. G returns to active status as of April 20, 2014. G is ineligible to perform pension actuarial services as an enrolled actuary under ERISA and the Internal Revenue Code from April 1 through April 19, 2014. Of the 6 hours of continuing professional education earned by G on January 15, 2014, only 2 hours may be applied to the enrollment cycle that ends December 31, 2016. Example 4. (i) Individual H, who was initially enrolled before January 1, 2008, completes 5 hours of core continuing professional education credit and 10 hours of non-core continuing professional education credit between January 1, 2011, and December 31, 2013. Accordingly, effective April 1, 2014, E is placed on the roster of inactive enrolled actuaries and is ineligible to perform pension actuarial services as an enrolled actuary under ERISA and the Internal Revenue Code. (ii) H completes 7 hours of core continuing pro- fessional education credit and 14 hours of noncore continuing professional education credit between January 1, 2014, and May 24, 2016. Because H has completed 12 hours of core continuing professional education and 24 hours of non-core continuing pro- fessional education during the last active enrollment period and the initial period when on inactive status, H has satisfied the requirements for reenrollment during the first inactive cycle. Accordingly, H may file an application for return to active enrollment on May 24, 2016. If this application is approved, H will be eligible to perform pension actuarial services as an enrolled actuary under ERISA and the Internal Rev- enue Code, effective with the date of such approval. (iii) Because H used the 21 hours of continuing professional education credit earned after January 1, 2014, for return from inactive status, H may not apply any of these 21 hours of core and non-core continuing professional education credits towards the require- ments for renewed enrollment effective April 1, 2017. Accordingly, H must complete an additional 36 hours of continuing professional education (12 core and 24 non-core) prior to December 31, 2016, to be eligible for renewed enrollment effective April 1, 2017. Example 5. (i) The facts are the same as inExam- ple 4except H completes 2 hours of core continuing professional education credit and 8 hours of non-core continuing professional education credit between January 1, 2014, and December 31, 2016. Thus, because H did not fulfill the requirements for return to active status during his first inactive cycle, H must satisfy the requirements of paragraph (l)(7)(ii) of this section in order to return to active status. (ii) Accordingly, in order to be eligible to file an application for return to active status on or before De- cember 31, 2019, H must complete an additional 38 hours of continuing professional education credit (of which at least 14 hours must consist of core subject matter) between January 1, 2017, and December 31, 2019, and have 18 months of certified responsible pension actuarial experience during the period begin- ning on January 1, 2014. (iii) Note that the 5 hours of core continuing professional education credit and the 10 hours of non-core continuing professional education credit that H completes between January 1, 2011, and December 31, 2013, are not counted toward H’s return to active status and are also not taken into account toward the additional hours of continuing professional education credit that H must complete between January 1, 2017, and December 31, 2019, in order to apply for renewal of enrollment effective April 1, 2020. Example 6. (i)ThefactsarethesameasinEx- ample 4except H completes 2 hours of core con- tinuing professional education credit and 8 hours of non-core continuing professional education credit be- tween January 1, 2014, and December 31, 2016, and 12 hours of core continuing professional education credit and 24 hours of non-core continuing profes- sional education credit between January 1, 2017, and December 31, 2019. Thus, because H did not fulfill the requirements for return to active status during his first or second inactive cycles, H must satisfy the re- quirements of paragraph (l)(7)(iii) of this section in order to return to active status. (ii) Accordingly, in order to be eligible to file an application for return to active status on or before De- cember 31, 2022, H must complete an additional 24 hours of continuing professional education credit (of which, at least 8 hours must consist of core subject matter) between January 1, 2020 and December 31, 2022, and have at least 18 months of certified respon- sible pension actuarial experience during the period beginning on January 1, 2017. (iii) Note that the total of 15 hours of con- tinuing professional education credit that E com- pletes between January 1, 2011, and December 31, 2013, as well as the 10 hours of continuing profes- sional education credit between January 1, 2014, and December 31, 2016, are not counted toward H’s return to active status and are not taken into account toward the additional hours of continuing professional education credit that H must complete between January 1, 2020, and December 31, 2022, in order to be eligible to file an application for renewal of enrollment active status effective April 1, 2023. Example 7. (i) Individual J, who was initially en- rolled July 1, 2012, completes 1 hour of core con- tinuing professional education credit and 2 hours of non-core continuing professional education credit be- tween January 1, 2012, and December 31, 2013. Ac- cordingly, effective April 1, 2014, J is placed on the roster of inactive enrolled actuaries and is ineligible to perform pension actuarial services as an enrolled actuary under ERISA and the Internal Revenue Code. (ii) F completes 5 hours of core continuing profes- sional education credit and 4 hours of non-core con- tinuing professional education credit between Jan- uary 1, 2014, and October 6, 2014. Because J did not complete the required 12 hours of continuing pro- fessionaleducation(ofwhichatleast6hoursmust consist of core subject matter) during F’s initial en- rollment cycle, J is not eligible to file an application for a return to active enrollment on October 6, 2014, notwithstanding the fact that had J completed such hours between January 1, 2012, and December 31, 2013, J would have satisfied the requirements for re- newed enrollment effective April 1, 2014. (iii) Accordingly, J must complete an additional 24 hours of continuing professional education (of which at least 12 hours must consist of core subject matter) during his/her first inactive enrollment cycle before applying for renewal of enrollment. Example 8. ThefactsarethesameasinExam- ple 7except that J completes 17 hours of core con- tinuing professional education credit and 16 hours of non-core continuing professional education credit be- tween January 1, 2014, and February 12, 2015. Ac- cordingly, because as of February 12, 2015, J satisfied the continuing professional education requirements as set forth in paragraph (e)(2) of this section with- out regard to paragraph (e)(2)(ii) thereof, J may file an application for return to active enrollment status on February 12, 2015. (p) With the exception of paragraphs (e)(1) and (f)(3)(iii) of this section, this section applies to the enrollment cycle be- ginning January 1, 2011, and all subse- quent enrollment cycles. §901.12 [Removed] Par. 6. Section 901.12 is removed. §901.13 [Redesignated as §901.12] Par. 7. Section 901.13 is redesignated as §901.12. Par. 8. Newly redesignated §901.12 is amended by revising the section heading and paragraphs (a), (b), (d), and (e) to read as follows: §901.12 Eligibility for enrollment. (a)In general. An individual applying to be an enrolled actuary must fulfill the experience requirement of paragraph (b) of this section, the basic actuarial knowledge requirement of paragraph (c) of this sec- tion, and the pension actuarial knowledge requirement of paragraph (d) of this sec- tion. (b)Qualifying experience. Within the 10-year period immediately preceding the date of application, the applicant shall have completed either— (1) A minimum of 36 months of certi- fied responsible pension actuarial experi- ence; or (2)Aminimumof60monthsofcer- tified responsible actuarial experience, including at least 18 months of certified responsible pension actuarial experience. ***** (d)Pension actuarial knowledge.(1) The applicant shall demonstrate pension actuarial knowledge by one of the follow- ing: (i)Joint Board pension examination. Successful completion, within the 10-year April 11, 20116232011–15 I.R.B. period immediately preceding the date of the application, to a score satisfactory to the Joint Board, of an examination pre- scribed by the Joint Board in actuarial mathematics and methodology relating to pension plans, including the provisions of ERISA relating to the minimum funding requirements and allocation of assets on plan termination. (ii)Organization pension examina- tions. Successful completion, within the 10-year period immediately preceding the date of the application, to a score satis- factory to the Joint Board, of one or more proctored examinations which are given by an actuarial organization and which the Joint Board has determined cover sub- stantially the same subject areas, have at least a comparable level of difficulty, and require at least the same competence as the Joint Board pension examination referred to in paragraph (d)(1)(i) of this section. (2) For purposes of this section, the date of successful completion of an examina- tion is generally the date a candidate sits for the examination, provided that the can- didate receives a passing grade on that ex- amination. However,an applicant who sat for an examination prior to the effective date of these regulations will be deemed to have sat for such examination on the effec- tive date. (e)Form; fee. An applicant who wishes to take an examination administered by the Joint Board under paragraph (c)(1) or (d)(1) of this section shall file an appli- cation on a form prescribed by the Joint Board. Such application shall be accom- panied by payment in the amount set forth on the application form. The amount rep- resents a fee charged to each applicant for examination and is designed to cover the costs for the administration of the exami- nation. The fee shall be retained whether or not the applicant successfully completes the examination or is enrolled. ***** Par. 9. Section 901.20 is amended as follows: A. Revising paragraphs (b), (d), (e), (f), and (g). B. Redesignating paragraph (h) as para- graph (k), and adding new paragraph (h). C. Adding and reserving paragraph (i). D. Adding new paragraphs (j) and (l). The revisions and additions read as fol- lows: §901.20 Standards of performance of actuarial services. ***** (b)Professional duty. (1) An enrolled actuary shall perform actuarial services only in a manner that is fully in accordance with all of the duties and requirements for such persons under applicable law and consistent with relevant generally accepted standards for professional re- sponsibility and ethics. (2) An enrolled actuary shall not per- form actuarial services for any person or organization which he/she believes, or has reasonable grounds to believe, may utilize his/her services in a fraudulent manner or in a manner inconsistent with law. ***** (d)Conflicts of interest. (1) Except as provided in paragraph (d)(2) of this sec- tion, an enrolled actuary shall not perform actuarial services for a client if the repre- sentation involves a conflict of interest. A conflict of interest exists if— (i) The representation of one client will be directly adverse to another client; or (ii) There is a significant risk that the representation of one or more clients will be materially limited by the enrolled ac- tuary’s responsibilities to another client, a former client, or by a personal interest of the enrolled actuary. (2) Notwithstanding the existence of a conflict of interest under paragraph (d)(1) of this section, the enrolled actuary may represent a client if— (i) The enrolled actuary reasonably be- lieves that he or she will be able to pro- vide competent and diligent representation to each affected client; (ii) The representation is not prohibited by law; and (iii) Each affected client waives the conflict of interestand gives informed consent at the time the existence of the conflict of interest is known by the en- rolled actuary. (e)Assumptions, calculations and rec- ommendations. (1) The enrolled actuary shall exercise due care, skill, prudence and diligence when performing actuarial ser- vices under ERISA and the Internal Rev- enue Code. In particular, in the course of preparing a report or certificate stating ac- tuarial costs or liabilities, the enrolled ac- tuary shall ensure that— (i) Except as mandated by law, the ac- tuarial assumptions are reasonable individ- ually and in combination, and the actuar- ial cost method and the actuarial method of valuation of assets are appropriate; (ii) The calculations are accurately car- ried out and properly documented; and (iii) The report, any recommendations, and any supplemental advice or explana- tion relative to the report reflect the results of the calculations. (2) An enrolled actuary shall include in any report or certificate stating actuar- ial costs or liabilities, a statement or refer- ence describing or clearly identifying the data, any material inadequacies therein and the implications thereof, and the actuarial methods and assumptions employed. (f)Due diligence. (1) An enrolled actu- ary must exercise due diligence— (i) In preparing or assisting in the prepa- ration of, approving, and filing tax returns, documents, affidavits, and other papers re- lating to the Department of the Treasury, the Department of Labor, the Pension Ben- efit Guaranty Corporation, or any other ap- plicable Federal or State entity; (ii) In determining the correctness of oral or written representations made by the enrolled actuaryto the Department of the Treasury, the Department of Labor, the Pension Benefit Guaranty Corporation, or any other applicable Federal or State en- tity; and (iii) In determining the correctness of oral or written representations made by the enrolled actuary to clients. (2) An enrolled actuary advising a client to take a position on any document to be filed with the Department of the Treasury, the Department of Labor, the Pension Ben- efit Guaranty Corporation, or any other ap- plicable Federal or State entity (or prepar- ing or signing such a return or document) generally may rely in good faith without verification upon information furnished by the client. The enrolled actuary may not, however, ignore the implications of infor- mation furnished to, or actually known by, the enrolled actuary, and must make rea- sonable inquiries if the information as fur- nished appears to be incorrect, inconsistent with an important fact or another factual assumption, or incomplete. (g)Solicitations regarding actuarial services. An enrolled actuary may not in any way use or participate in the use of any form of public communication or pri- 2011–15 I.R.B.624April 11, 2011 vate solicitation related to the performance of actuarial services containing a false, fraudulent, or coercive statement or claim, or a misleading or deceptive statement or claim. An enrolled actuary may not make, directly or indirectly, an uninvited written or oral solicitation of employment related to actuarial services if the solicitation vi- olates Federal or State law, nor may such person employ, accept employment in partnership form, corporate form, or any other form, or share fees with, any individ- ual or entity who so solicits. Any lawful solicitation relatedto the performance of actuarial services made by or on behalf of an enrolled actuary must clearly identify the solicitation as such and, if applicable, identify the source of the information used in choosing the recipient. (h)Prompt disposition of pending mat- ters. An enrolled actuary may not un- reasonably delay the prompt disposition of any matter before the Internal Revenue Service, the Department of Labor, the Pen- sion Benefit Guaranty Corporation, or any other applicable Federal or State entity. (i) [Reserved]. (j)Return of client’s records. (1) In gen- eral, an enrolled actuary must, at the re- quest of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her le- gal obligations. The enrolled actuary may retain copies of the records returned to a client. The existence of a dispute over fees generally does not relieve the enrolled actuary of his or her responsibility under this section. Nevertheless, if applicable state law allows or permits the retention of a client’s records by an enrolled actuary in the case of a dispute over fees for ser- vices rendered, the enrolled actuary need only return those records that must be at- tached to the client’s required forms un- der ERISA and the Internal Revenue Code. The enrolled actuary, however, must pro- vide the client with reasonable access to review and copy any additional records of the client retained by the enrolled actuary under state law that are necessary for the client to comply with his or her obliga- tions under ERISA and the Internal Rev- enue Code. (2) For purposes of this section, records of the client include all documents or writ- ten or electronic materials provided to the enrolled actuary, or obtained by the en- rolled actuary in the course of the enrolled actuary’s representation of the client, that preexisted the retention of the enrolled ac- tuary by the client. The term ’’records of the client’’ also includes materials that were prepared by the client or a third party (not including an employee or agent of the enrolled actuary) at any time and provided to the enrolled actuary with respect to the subject matter of the representation. The term “records of the client” also includes any return, claim for refund, schedule, af- fidavit, appraisal or any other document prepared by the enrolled actuary, or his or her employee or agent, that was presented to the client with respect to a prior repre- sentation if such document is necessary for the taxpayer to comply with his or her cur- rent obligations under ERISA and the In- ternal Revenue Code. The term ’’records of the client’’ does not include any return, claim for refund, schedule, affidavit, ap- praisal or any other document prepared by the enrolled actuary or the enrolled actu- ary’s firm, employees or agents if the en- rolled actuary is withholding such docu- ment pending the client’s performance of its contractual obligation to pay fees with respect to such document. ***** (l) The rules of this section apply to all actuarial services and related acts per- formed on or after April 29, 2011. Par. 10. Section 901.31 is amended by revising paragraphs (a) and (c) to read as follows: §901.31 Grounds for suspension or termination of enrollment. (a)Failure to satisfy requirements for enrollment. The enrollment of an actuary may be terminated if it is found that the ac- tuary did not satisfy the eligibility require- ments set forth in §901.11 or §901.12. ***** (c)Disreputable conduct. The enroll- ment of an actuary may be suspended or terminated if it is found that the actuary has, at any time after he/she applied for en- rollment, engaged in any conduct set forth in §901.12(f) or other conduct evidencing fraud, dishonesty, or breach of trust. Such other conduct includes, but is not limited to, the following: ***** Par.11.Section901.32isamendedby revising the last sentence to read as fol- lows: §901.32 Receipt ofinformation concerning enrolled actuaries. ***Ifanyotherpersonhasinformation of any such violation, he/ she may make a report thereof to the Executive Director. Par. 12. Section 901.47 is amended by revising the last sentence to read as fol- lows: §901.47 Transcript. ***Copiesofexhibitsintroducedatthe hearing or at the taking of depositions will be supplied to parties upon the payment of a reasonable fee (31 U.S.C. 9701). Par. 13. Section 901.72 is added to read as follows: §901.72 Additional rules. The Joint Board may, in notice or other guidance of general applicability, provide additional rules regarding the enrollment of actuaries. Approved March 2, 2011. Carolyn Zimmerman, Chairman, Joint Board for the Enrollment of Actuaries. April 11, 20116252011–15 I.R.B. Part III. Administrative, Procedural, and Miscellaneous 26 CFR 601.201: Rulings and determination letters. (Also: Part I, §§ 25, 103, 143.) Rev. Proc. 2011–23 SECTION 1. PURPOSE This revenue procedure provides is- suers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in section 25(c), with (1) the nationwide average purchase price for residences located in the United States, and (2) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam. SECTION 2. BACKGROUND .01 Section 103(a) provides that, except as provided in section 103(b), gross in- come does not include interest on any state or local bond. Section 103(b)(1) provides that section 103(a) shall not apply to any private activity bond that is not a “qualified bond” within the meaning of section 141. Section 141(e) provides, in part, that the term “qualified bond” means any private activity bond if such bond (1) is a quali- fied mortgage bond under section 143, (2) meets the volume cap requirements under section 146, and (3) meets the applicable requirements under section 147. .02 Section 143(a)(1) provides that the term “qualified mortgage bond” means a bond that is issued as part of a qualified mortgage issue. Section 143(a)(2)(A) pro- vides that the term “qualified mortgage is- sue” means an issue of one or more bonds by a state or political subdivision thereof, but only if: (i) all proceeds of the issue (ex- clusive of issuance costs and a reasonably required reserve) are to be used to finance owner-occupied residences; (ii) the issue meets the requirements of subsections (c), (d), (e), (f), (g), (h), (i), and (m)(7) of sec- tion 143; (iii) the issue does not meet the private business tests of paragraphs (1) and (2) of section 141(b); and (iv) with respect to amounts received more than 10 years after the date of issuance, repayments of $250,000 or more of principal on mortgage financing provided by the issue are used by the close of the first semiannual period be- ginning after the date the prepayment (or complete repayment) is received to redeem bonds that are part of the issue. Average Area Purchase Price .03 Section 143(e)(1) provides that an issue of bonds meets the purchase price requirements of section 143(e) if the ac- quisition cost of each residence financed by the issue does not exceed 90 percent of the average area purchase price applicable to such residence. Section 143(e)(5) pro- vides that, in the case of a targeted area res- idence (as defined in section 143(j)), sec- tion 143(e)(1) shall be applied by substi- tuting 110 percent for 90 percent. .04 Section 143(e)(2) provides that the term “average area purchase price” means, with respect to any residence, the average purchase price of single-family residences (in the statistical area in which the resi- dence is located) that were purchased dur- ing the most recent 12-month period for which sufficient statistical information is available. Under sections 143(e)(3) and (4), respectively, separate determinations are to be made for new and existing resi- dences, and for two-, three-, and four-fam- ily residences. .05 Section 143(e)(2) provides that the determination of the average area purchase price for a statistical area shall be made as of the date on which the commitment to provide the financing is made or, if earlier, the date of the purchase of the residence. .06 Section 143(k)(2)(A) provides that the term “statistical area” means (i) a metropolitan statistical area (MSA), and (ii) any county (or the portion thereof) that is not within an MSA. Section 143(k)(2)(C) further provides that if suf- ficient recent statistical information with respect to a county (or portion thereof) is unavailable, the Secretary may sub- stitute another area for which there is sufficient recent statistical information for such county (or portion thereof). In the case of any portion of a State which is not within a county, section 143(k)(2)(D) provides that the Secretary may designate as a county any area that is the equivalent of a county. Section 6a.103A–1(b)(4)(i) of the Temporary Income Tax Regulations (issued under section 103A of the Internal Revenue Code of 1954, the predecessor of section 143) provides that the term “State” includes a possession of the United States and the District of Columbia. .07 Section 6a.103A–2(f)(5)(i) pro- vides that an issuer may rely upon the aver- age area purchase price safe harbors pub- lished by the Department of the Treasury for the statistical area in which a residence is located. Section 6a.103A–2(f)(5)(i) further provides that an issuer may use an average area purchase price limitation different from the published safe harbor if the issuer has more accurate and compre- hensive data for the statistical area. Qualified Mortgage Credit Certificate Program .08 Section 25(c) permits a state or political subdivision to establish a quali- fied mortgage credit certificate program. In general, a qualified mortgage credit certificate program is a program under which the issuing authority elects not to issue an amount of private activity bonds that it may otherwise issue during the calendar year under section 146, and in their place, issues mortgage credit certifi- cates to taxpayers in connection with the acquisition of their principal residences. Section 25(a)(1) provides, in general, that the holder of a mortgage credit certificate may claim a federal income tax credit equal to the product of the credit rate specified in the certificate and the interest paid or accrued during the tax year on the remaining principal of the indebtedness incurred to acquire the residence. Section 25(c)(2)(A)(iii)(III) generally provides that residences acquired in connection with the issuance of mortgage credit cer- tificates must meet the purchase price requirements of section 143(e). Income Limitations for Qualified Mortgage Bonds and Mortgage Credit Certificates .09 Section 143(f) imposes limitations on the income of mortgagors for whom financing may be provided by qualified mortgage bonds. In addition, section 25(c)(2)(A)(iii)(IV) provides that holders of mortgage credit certificates must meet 2011–15 I.R.B.626April 11, 2011 the income requirement of section 143(f). Generally, under sections 143(f)(1) and 25(c)(2)(A)(iii)(IV), the income require- ment is met only if all owner-financing under a qualified mortgage bond and all mortgage credit certificates issued under a qualified mortgage credit certificate pro- gram are provided to mortgagors whose family income is 115 percent or less of the applicable median family income. Section 143(f)(5), however, generally provides for an upward adjustment to the percent- age limitation in high housing cost areas. High housing cost areas are defined in section 143(f)(5)(C) as any statistical area for which the housing cost/income ratio is greater than 1.2. .10 Under section 143(f)(5)(D), the housing cost/income ratio with respect to any statistical area is determined by divid- ing (a) the applicable housing price ratio for such area by (b) the ratio that the area median gross income for such area bears to the median gross income for the United States. The applicable housing price ratio is the new housing price ratio (new hous- ing average area purchase price divided by the new housing average purchase price for the United States) or the existing hous- ing price ratio (existing housing average area purchase price divided by the existing housing average purchase price for the United States), whichever results in the housing cost/income ratio being closer to 1. Average Area and Nationwide Purchase Price Limitations .11 Average area purchase price safe harbors for each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam were last published in Rev. Proc. 2010–25, 2010–27 I.R.B. 16. .12 The nationwideaverage purchase price limitation was last published in section 4.02 of Rev. Proc. 2010–25. Guidance with respect to the United States and area median grossincome figures that aretobeusedincomputingthehousing cost/income ratio described in section 143(f)(5) was last published in Rev. Proc. 2010–23, 2010–24 I.R.B. 762. .13 This revenue procedure uses FHA loan limits for a given statistical area to calculate the average area purchase price safe harbor for that area. FHA sets lim- its on the dollar value of loans it will in- sure based on median home prices and conforming loan limits established by the Federal Home Loan Mortgage Corpora- tion. In particular, FHA sets an area’s loan limit at 95 percent of the median home sales price for the area, subject to certain floors and caps measured against conform- ingloanlimits. .14 To calculate the average area pur- chase price safe harbors in this revenue procedure, the FHA loan limits are ad- justed to take into account the differences between average and median purchase prices. Because FHA loan limits do not differentiate between new and existing residences, this revenue procedure con- tains a single average area purchase price safe harbor for both new and existing residences in a statistical area. The Trea- sury Department and the Internal Revenue Service have determined that FHA loan limits provide a reasonable basis for de- termining average area purchase price safe harbors. If the Treasury Department and the Internal Revenue Service become aware of other sources of average purchase price data, including data that differentiate between new and existing residences, con- sideration will be given as to whether such data provide a more accurate method for calculating average area purchase price safe harbors. .15 The average area purchase price safeharborslistedinsection4.01ofthis revenue procedure are based on FHA loan limits released December 01, 2010. FHA loan limits are available for statistical ar- eas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam. See section 3.03 of this revenue procedure with respect to FHA loan lim- its revised after December 01, 2010. .16 OMB Bulletin No. 03–04, dated and effective June 6, 2003, revised the def- initions of the nation’s metropolitan areas and recognized 49 new metropolitan sta- tistical areas. The OMB bulletin no longer includes primary metropolitan statistical areas. SECTION 3. APPLICATION Average Area Purchase Price Safe Harbors .01 Average area purchase price safe harbors for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam are set forth in section 4.01 of this revenue procedure. Average area purchase price safe harbors are provided for single-family and two to four-family residences. For each type of residence, section 4.01 of this revenue procedure contains a single safe harbor that may be used for both new and existing residences. Issuers of qualified mortgage bonds and issuers of mortgage credit certificates may rely on these safe harbors to satisfy the requirements of sec- tions 143(e) and (f). Section 4.01 of this revenue procedure provides safe harbors for MSAs and for certain counties and county equivalents. If no purchase price safe harbor is available for a statistical area, the safe harbor for “ALL OTHER AREAS” may be used for that statistical area. .02IfaresidenceisinanMSA,thesafe harbor applicable to it is the limitation of that MSA. If an MSA falls in more than one state, the MSA is listed in section 4.01 of this revenue procedure under each state. .03 If the FHA revises the FHA loan limit for any statistical area after Decem- ber 01, 2010, an issuer of qualified mort- gage bonds or mortgage credit certificates may use the revised FHA loan limit for that statistical area to compute (as provided in the next sentence) a revised average area purchase price safe harbor for the statisti- cal area provided that the issuer maintains records evidencing the revised FHA loan limit. The revised average area purchase price safe harbor for that statistical area is computed by dividing the revised FHA loan limit by .9875. .04 If, pursuant to section 6a.103A–2(f)(5)(i), an issuer uses more accurate and comprehensive data to determine the average area purchase price for a statistical area, the issuer must make separate average area purchase price determinations for new and existing resi- dences. Moreover, when computing the average area purchase price for a statistical area that is an MSA, as defined in OMB April 11, 20116272011–15 I.R.B. Bulletin No. 03–04, the issuer must make the computation for the entire applicable MSA. When computing the average area purchase price for a statistical area that is not an MSA, the issuer must make the computation for the entire statistical area and may not combine statistical areas. Thus, for example, the issuer may not combine two or more counties. .05 If an issuer receives a ruling permit- ting it to rely on an average area purchase price limitation that is higher than the applicable safe harbor in this revenue procedure, the issuer may rely on that higher limitation for the purpose of satis- fying the requirements of section 143(e) and (f) for bonds sold, and mortgage credit certificates issued, not more than 30 months following the termination date of the12-monthperiodusedbytheissuerto compute the limitation. Nationwide Average Purchase Price .06 Section 4.02 of this revenue proce- dure sets forth a single nationwide average purchase price for purposes of computing the housing cost/income ratio under sec- tion 143(f)(5). .07 Issuers must use the nationwide av- erage purchase price set forth in section 4.02 of this revenue procedure when com- puting the housing cost/income ratio un- der section 143(f)(5) regardless of whether they are relying on the average area pur- chase price safe harbors contained in this revenue procedure or using more accurate and comprehensive data to determine av- erage area purchase prices for new and ex- isting residences for a statistical area that are different from the published safe har- bors in this revenue procedure. .08 If, pursuant to section 6.02 of this revenue procedure, an issuer relies on the average area purchase price safe harbors contained in Rev. Proc. 2010–25, the is- suer must use the nationwide average pur- chase price set forth in section 4.02 of Rev. Proc. 2010–25 in computing the housing cost/income ratio under section 143(f)(5). Likewise, if, pursuant to section 6.05 of this revenue procedure, an issuer relies on the nationwide average purchase price published in Rev. Proc. 2010–25, the is- suer may not rely on the average area pur- chase price safe harbors published in this revenue procedure. SECTION 4. AVERAGE AREA AND NATIONWIDE AVERAGE PURCHASE PRICES .01 Average area purchase prices for single-family and two to four-family resi- dences in MSAs, and for certain counties and county equivalents are set forth be- low. The safe harbor for “ALL OTHER AREAS” (found at the end of the table below) may be used for a statistical area that is not listed below. 2011 Average Area Purchase Prices for Mortgage Revenue Bonds County NameStateOne-Unit Limit Two-Unit Limit Three-Unit Limit Four-Unit Limit ALEUTIANS WESTAK $361,013$462,127$558,633$694,228 ANCHORAGEAK $351,899$450,481$544,557$676,709 DENALIAK $320,253$409,975$495,544$615,848 DILLINGHAMAK $336,709$431,038$521,013$647,494 FAIRBANKS NORTHAK $320,253$409,975$495,544$615,848 JUNEAUAK $403,797$516,911$624,861$776,557 KETCHIKAN GATEWAK $326,076$417,418$504,557$627,089 KODIAK ISLANDAK $334,228$427,848$517,165$642,734 MATANUSKA-SUSITAK $351,899$450,481$544,557$676,709 NOMEAK $278,329$356,304$430,684$535,241 NORTH SLOPEAK $310,937$398,025$481,165$597,975 SITKAAK $436,709$559,038$675,797$839,848 VALDEZ-CORDOVAAK $274,835$351,848$425,266$528,506 YAKUTAT CITYAK $393,620$503,899$609,114$756,962 BALDWINAL $288,608$369,468$446,582$554,987 RUSSELLAL $293,468$375,696$454,127$564,354 2011–15 I.R.B.628April 11, 2011 APACHEAZ $284,810$364,608$440,709$547,696 COCONINOAZ $455,696$583,342$705,165$876,354 GILAAZ $329,114$421,316$509,266$632,911 MARICOPAAZ $350,633$448,861$542,582$674,278 MOHAVEAZ $326,582$418,076$505,367$628,051 NAVAJOAZ $312,658$400,253$483,797$601,266 PIMAAZ $320,253$409,975$495,544$615,848 PINALAZ $350,633$448,861$542,582$674,278 YAVAPAIAZ $394,937$505,570$611,139$759,494 ALAMEDACA $738,987$946,025$1,143,544$1,421,165 ALPINECA $554,430$709,772$857,924$1,066,228 AMADORCA $449,367$575,241$695,342$864,152 BUTTECA $405,063$518,532$626,785$778,987 CALAVERASCA $468,354$599,544$724,759$900,709 COLUSACA $402,532$515,291$622,886$774,076 CONTRA COSTACA $738,987$946,025$1,143,544$1,421,165 DEL NORTECA $315,190$403,494$487,747$606,127 EL DORADOCA $587,342$751,899$908,861$1,129,519 FRESNOCA $386,076$494,228$597,418$742,430 GLENNCA $291,139$372,709$450,532$559,899 HUMBOLDTCA $398,734$510,430$617,013$766,785 IMPERIALCA $329,114$421,316$509,266$632,911 INYOCA $443,038$567,139$685,570$852,000 KERNCA $373,418$478,025$577,823$718,127 KINGSCA $329,114$421,316$509,266$632,911 LAKECA $406,329$520,152$628,759$781,418 LASSENCA $288,608$369,468$446,582$554,987 LOS ANGELESCA $738,987$946,025$1,143,544$1,421,165 MADERACA $430,380$550,937$665,975$827,646 MARINCA $738,987$946,025$1,143,544$1,421,165 MARIPOSACA $417,722$534,734$646,380$803,291 MENDOCINOCA $518,987$664,405$803,089$998,076 MERCEDCA $478,481$612,557$740,405$920,152 MONOCA $535,696$685,772$828,962$1,030,177 MONTEREYCA $738,987$946,025$1,143,544$1,421,165 NAPACA $738,987$946,025$1,143,544$1,421,165 NEVADACA $569,620$729,215$881,468$1,095,443 ORANGECA $738,987$946,025$1,143,544$1,421,165 April 11, 20116292011–15 I.R.B. PLACERCA $587,342$751,899$908,861$1,129,519 PLUMASCA $415,190$531,494$642,481$798,430 RIVERSIDECA $506,329$648,203$783,494$973,722 SACRAMENTOCA $587,342$751,899$908,861$1,129,519 SAN BENITOCA $738,987$946,025$1,143,544$1,421,165 SAN BERNARDINOCA $506,329$648,203$783,494$973,722 SAN DIEGOCA $706,329$904,253$1,093,013$1,358,329 SAN FRANCISCOCA $738,987$946,025$1,143,544$1,421,165 SAN JOAQUINCA $494,937$633,620$765,873$951,797 SAN LUIS OBISPOCA $696,203$891,241$1,077,316$1,338,886 SAN MATEOCA $738,987$946,025$1,143,544$1,421,165 SANTA BARBARACA $738,987$946,025$1,143,544$1,421,165 SANTA CLARACA $738,987$946,025$1,143,544$1,421,165 SANTA CRUZCA $738,987$946,025$1,143,544$1,421,165 SHASTACA $429,114$549,316$664,000$825,215 SIERRACA $308,608$395,038$477,519$593,468 SISKIYOUCA $297,468$380,810$460,304$572,051 SOLANOCA $564,557$722,734$873,620$1,085,722 SONOMACA $670,886$858,835$1,038,177$1,290,177 STANISLAUSCA $429,114$549,316$664,000$825,215 SUTTERCA $430,380$550,937$665,975$827,646 TEHAMACA $316,456$405,114$489,671$608,557 TULARECA $329,114$421,316$509,266$632,911 TUOLUMNECA $443,038$567,139$685,570$852,000 VENTURACA $738,987$946,025$1,143,544$1,421,165 YOLOCA $587,342$751,899$908,861$1,129,519 YUBACA $430,380$550,937$665,975$827,646 ADAMSCO $411,392$526,633$636,608$791,139 ARAPAHOECO $411,392$526,633$636,608$791,139 ARCHULETACO $321,519$411,595$497,519$618,278 BOULDERCO $465,823$596,304$720,810$895,797 BROOMFIELDCO $411,392$526,633$636,608$791,139 CHAFFEECO $283,544$362,987$438,734$545,266 CLEAR CREEKCO $411,392$526,633$636,608$791,139 DENVERCO $411,392$526,633$636,608$791,139 DOUGLASCO $411,392$526,633$636,608$791,139 EAGLECO $738,987$946,025$1,143,544$1,421,165 EL PASOCO $329,114$421,316$509,266$632,911 2011–15 I.R.B.630April 11, 2011 ELBERTCO $411,392$526,633$636,608$791,139 GARFIELDCO $430,380$550,937$665,975$827,646 GILPINCO $411,392$526,633$636,608$791,139 GRANDCO $360,759$461,823$558,228$693,772 GUNNISONCO $439,241$562,278$679,696$844,709 HINSDALECO $564,557$722,734$873,620$1,085,722 JEFFERSONCO $411,392$526,633$636,608$791,139 LA PLATACO $449,367$575,241$695,342$864,152 LAKECO $738,987$946,025$1,143,544$1,421,165 LARIMERCO $316,456$405,114$489,671$608,557 MESACO $375,949$481,266$581,772$722,987 MINERALCO $303,797$388,911$470,076$584,203 OURAYCO $488,608$625,519$756,101$939,646 PARKCO $411,392$526,633$636,608$791,139 PITKINCO $738,987$946,025$1,143,544$1,421,165 ROUTTCO $683,544$875,038$1,057,772$1,314,532 SAN JUANCO $430,380$550,937$665,975$827,646 SAN MIGUELCO $659,494$844,253$1,020,506$1,268,253 SUMMITCO $738,987$946,025$1,143,544$1,421,165 TELLERCO $329,114$421,316$509,266$632,911 WELDCO $422,785$541,215$654,228$813,063 FAIRFIELDCT $717,722$918,835$1,110,633$1,380,253 HARTFORDCT $445,570$570,380$689,468$856,861 LITCHFIELDCT $379,747$486,127$587,646$730,278 MIDDLESEXCT $445,570$570,380$689,468$856,861 NEW HAVENCT $392,405$502,329$607,190$754,633 NEW LONDONCT $403,797$516,911$624,861$776,557 TOLLANDCT $445,570$570,380$689,468$856,861 WINDHAMCT $275,949$353,266$426,987$530,684 DISTRICT OF COLDC $738,987$946,025$1,143,544$1,421,165 KENTDE $381,013$487,747$589,570$732,709 NEW CASTLEDE $425,316$544,456$658,127$817,924 SUSSEXDE $379,747$486,127$587,646$730,278 BAKERFL $392,405$502,329$607,190$754,633 BAYFL $401,266$513,671$620,911$771,646 April 11, 20116312011–15 I.R.B. BREVARDFL $294,937$377,570$456,405$567,190 BROWARDFL $429,114$549,316$664,000$825,215 CHARLOTTEFL $300,000$384,051$464,203$576,911 CLAYFL $392,405$502,329$607,190$754,633 COLLIERFL $537,975$688,709$832,456$1,034,582 DUVALFL $392,405$502,329$607,190$754,633 FLAGLERFL $291,139$372,709$450,532$559,899 FRANKLINFL $308,861$395,392$477,924$593,975 HERNANDOFL $296,203$379,190$458,329$569,620 HILLSBOROUGHFL $296,203$379,190$458,329$569,620 INDIAN RIVERFL $287,342$367,848$444,608$552,557 LAKEFL $358,228$458,582$554,329$688,911 LEEFL $360,759$461,823$558,228$693,772 MANATEEFL $448,101$573,620$693,418$861,722 MARTINFL $379,747$486,127$587,646$730,278 MIAMI-DADEFL $429,114$549,316$664,000$825,215 MONROEFL $738,987$946,025$1,143,544$1,421,165 NASSAUFL $392,405$502,329$607,190$754,633 OKALOOSAFL $316,456$405,114$489,671$608,557 ORANGEFL $358,228$458,582$554,329$688,911 OSCEOLAFL $358,228$458,582$554,329$688,911 PALM BEACHFL $429,114$549,316$664,000$825,215 PASCOFL $296,203$379,190$458,329$569,620 PINELLASFL $296,203$379,190$458,329$569,620 SARASOTAFL $448,101$573,620$693,418$861,722 SEMINOLEFL $358,228$458,582$554,329$688,911 ST. JOHNSFL $392,405$502,329$607,190$754,633 ST. LUCIEFL $379,747$486,127$587,646$730,278 SUMTERFL $282,278$361,367$436,810$542,835 VOLUSIAFL $307,595$393,772$475,949$591,544 WALTONFL $367,382$470,278$568,506$706,481 BARROWGA $350,633$448,861$542,582$674,278 BARTOWGA $350,633$448,861$542,582$674,278 BRANTLEYGA $279,747$358,127$432,861$537,975 BUTTSGA $350,633$448,861$542,582$674,278 CARROLLGA $350,633$448,861$542,582$674,278 CHATTAHOOCHEEGA $293,468$375,696$454,127$564,354 CHEROKEEGA $350,633$448,861$542,582$674,278 2011–15 I.R.B.632April 11, 2011 CLARKEGA $302,532$387,291$468,152$581,772 CLAYTONGA $350,633$448,861$542,582$674,278 COBBGA $350,633$448,861$542,582$674,278 COWETAGA $350,633$448,861$542,582$674,278 DAWSONGA $350,633$448,861$542,582$674,278 DEKALBGA $350,633$448,861$542,582$674,278 DOUGLASGA $350,633$448,861$542,582$674,278 FAYETTEGA $350,633$448,861$542,582$674,278 FORSYTHGA $350,633$448,861$542,582$674,278 FULTONGA $350,633$448,861$542,582$674,278 GLYNNGA $279,747$358,127$432,861$537,975 GREENEGA $670,886$858,835$1,038,177$1,290,177 GWINNETTGA $350,633$448,861$542,582$674,278 HARALSONGA $350,633$448,861$542,582$674,278 HARRISGA $293,468$375,696$454,127$564,354 HEARDGA $350,633$448,861$542,582$674,278 HENRYGA $350,633$448,861$542,582$674,278 JASPERGA $350,633$448,861$542,582$674,278 LAMARGA $350,633$448,861$542,582$674,278 MADISONGA $302,532$387,291$468,152$581,772 MARIONGA $293,468$375,696$454,127$564,354 MCINTOSHGA $279,747$358,127$432,861$537,975 MERIWETHERGA $350,633$448,861$542,582$674,278 MUSCOGEEGA $293,468$375,696$454,127$564,354 NEWTONGA $350,633$448,861$542,582$674,278 OCONEEGA $302,532$387,291$468,152$581,772 OGLETHORPEGA $302,532$387,291$468,152$581,772 PAULDINGGA $350,633$448,861$542,582$674,278 PICKENSGA $350,633$448,861$542,582$674,278 PIKEGA $350,633$448,861$542,582$674,278 ROCKDALEGA $350,633$448,861$542,582$674,278 SPALDINGGA $350,633$448,861$542,582$674,278 WALTONGA $350,633$448,861$542,582$674,278 HAWAIIHI $626,582$802,127$969,620$1,204,962 HONOLULUHI $803,797$1,012,658$1,243,848$1,545,772 KALAWAOHI $725,316$928,557$1,122,380$1,394,886 KAUAIHI $783,544$1,003,089$1,212,506$1,506,835 MAUIHI $800,000$1,012,658$1,237,975$1,538,481 April 11, 20116332011–15 I.R.B. ADAID $307,595$393,772$475,949$591,544 ADAMSID $277,215$354,886$428,962$533,114 BLAINEID $738,987$946,025$1,143,544$1,421,165 BOISEID $307,595$393,772$475,949$591,544 CANYONID $307,595$393,772$475,949$591,544 GEMID $307,595$393,772$475,949$591,544 KOOTENAIID $289,873$371,089$448,557$557,418 OWYHEEID $307,595$393,772$475,949$591,544 TETONID $702,532$899,342$1,087,139$1,351,038 VALLEYID $468,354$599,544$724,759$900,709 BONDIL $284,810$364,608$440,709$547,696 BOONEIL $343,544$439,797$531,595$660,658 CALHOUNIL $284,810$364,608$440,709$547,696 CLINTONIL $284,810$364,608$440,709$547,696 COOKIL $415,190$531,494$642,481$798,430 DEKALBIL $415,190$531,494$642,481$798,430 DUPAGEIL $415,190$531,494$642,481$798,430 GRUNDYIL $415,190$531,494$642,481$798,430 JERSEYIL $284,810$364,608$440,709$547,696 KANEIL $415,190$531,494$642,481$798,430 KENDALLIL $415,190$531,494$642,481$798,430 LAKEIL $415,190$531,494$642,481$798,430 MACOUPINIL $284,810$364,608$440,709$547,696 MADISONIL $284,810$364,608$440,709$547,696 MCHENRYIL $415,190$531,494$642,481$798,430 MONROEIL $284,810$364,608$440,709$547,696 ST. CLAIRIL $284,810$364,608$440,709$547,696 WILLIL $415,190$531,494$642,481$798,430 WINNEBAGOIL $343,544$439,797$531,595$660,658 CLARKIN $306,329$392,152$474,025$589,114 DEARBORNIN $341,772$437,519$528,861$657,266 FLOYDIN $306,329$392,152$474,025$589,114 FRANKLININ $341,772$437,519$528,861$657,266 HARRISONIN $306,329$392,152$474,025$589,114 JASPERIN $415,190$531,494$642,481$798,430 LAKEIN $415,190$531,494$642,481$798,430 NEWTONIN $415,190$531,494$642,481$798,430 2011–15 I.R.B.634April 11, 2011 OHIOIN $341,772$437,519$528,861$657,266 PORTERIN $415,190$531,494$642,481$798,430 WASHINGTONIN $306,329$392,152$474,025$589,114 BOONEKY $341,772$437,519$528,861$657,266 BRACKENKY $341,772$437,519$528,861$657,266 BULLITTKY $306,329$392,152$474,025$589,114 CAMPBELLKY $341,772$437,519$528,861$657,266 GALLATINKY $341,772$437,519$528,861$657,266 GRANTKY $341,772$437,519$528,861$657,266 HENRYKY $306,329$392,152$474,025$589,114 JEFFERSONKY $306,329$392,152$474,025$589,114 KENTONKY $341,772$437,519$528,861$657,266 MEADEKY $306,329$392,152$474,025$589,114 NELSONKY $306,329$392,152$474,025$589,114 OLDHAMKY $306,329$392,152$474,025$589,114 PENDLETONKY $341,772$437,519$528,861$657,266 SHELBYKY $306,329$392,152$474,025$589,114 SPENCERKY $306,329$392,152$474,025$589,114 TRIMBLEKY $306,329$392,152$474,025$589,114 ASCENSIONLA $283,544$362,987$438,734$545,266 EAST BATON ROUGLA $283,544$362,987$438,734$545,266 EAST FELICIANALA $283,544$362,987$438,734$545,266 IBERVILLELA $283,544$362,987$438,734$545,266 JEFFERSONLA $291,139$372,709$450,532$559,899 LIVINGSTONLA $283,544$362,987$438,734$545,266 ORLEANSLA $291,139$372,709$450,532$559,899 PLAQUEMINESLA $291,139$372,709$450,532$559,899 POINTE COUPEELA $283,544$362,987$438,734$545,266 ST. BERNARDLA $291,139$372,709$450,532$559,899 ST. CHARLESLA $291,139$372,709$450,532$559,899 ST. HELENALA $283,544$362,987$438,734$545,266 ST. JOHN THE BALA $291,139$372,709$450,532$559,899 ST. TAMMANYLA $291,139$372,709$450,532$559,899 WEST BATON ROUGLA $283,544$362,987$438,734$545,266 WEST FELICIANALA $283,544$362,987$438,734$545,266 April 11, 20116352011–15 I.R.B. BARNSTABLEMA $468,354$599,544$724,759$900,709 BRISTOLMA $481,013$615,797$744,354$925,013 DUKESMA $738,987$946,025$1,143,544$1,421,165 ESSEXMA $530,380$678,987$820,709$1,019,949 FRANKLINMA $322,785$413,215$499,494$620,759 HAMPDENMA $322,785$413,215$499,494$620,759 HAMPSHIREMA $322,785$413,215$499,494$620,759 MIDDLESEXMA $530,380$678,987$820,709$1,019,949 NANTUCKETMA $738,987$946,025$1,143,544$1,421,165 NORFOLKMA $530,380$678,987$820,709$1,019,949 PLYMOUTHMA $530,380$678,987$820,709$1,019,949 SUFFOLKMA $530,380$678,987$820,709$1,019,949 WORCESTERMA $389,873$499,089$603,291$749,772 ANNE ARUNDELMD $567,089$725,975$877,519$1,090,582 BALTIMOREMD $567,089$725,975$877,519$1,090,582 BALTIMORE CITYMD $567,089$725,975$877,519$1,090,582 CALVERTMD $738,987$946,025$1,143,544$1,421,165 CARROLLMD $567,089$725,975$877,519$1,090,582 CECILMD $425,316$544,456$658,127$817,924 CHARLESMD $738,987$946,025$1,143,544$1,421,165 FREDERICKMD $738,987$946,025$1,143,544$1,421,165 GARRETTMD $443,038$567,139$685,570$852,000 HARFORDMD $567,089$725,975$877,519$1,090,582 HOWARDMD $567,089$725,975$877,519$1,090,582 KENTMD $348,101$445,620$538,633$669,418 MONTGOMERYMD $738,987$946,025$1,143,544$1,421,165 PRINCE GEORGE’SMD $738,987$946,025$1,143,544$1,421,165 QUEEN ANNE’SMD $567,089$725,975$877,519$1,090,582 SOMERSETMD $332,911$426,177$515,139$640,203 ST. MARY’SMD $405,063$518,532$626,785$778,987 TALBOTMD $449,367$575,241$695,342$864,152 WASHINGTONMD $382,278$489,367$591,544$735,139 WICOMICOMD $332,911$426,177$515,139$640,203 WORCESTERMD $443,038$567,139$685,570$852,000 CUMBERLANDME $341,772$437,519$528,861$657,266 HANCOCKME $275,949$353,266$426,987$530,684 KNOXME $282,987$362,278$437,873$544,203 2011–15 I.R.B.636April 11, 2011 LINCOLNME $322,785$413,215$499,494$620,759 SAGADAHOCME $341,772$437,519$528,861$657,266 YORKME $341,772$437,519$528,861$657,266 BERRIENMI $302,532$387,291$468,152$581,772 KALAMAZOOMI $289,873$371,089$448,557$557,418 LAPEERMI $301,266$385,671$466,177$579,342 LENAWEEMI $301,266$385,671$466,177$579,342 LIVINGSTONMI $301,266$385,671$466,177$579,342 MACOMBMI $301,266$385,671$466,177$579,342 MONROEMI $301,266$385,671$466,177$579,342 OAKLANDMI $301,266$385,671$466,177$579,342 ST. CLAIRMI $301,266$385,671$466,177$579,342 VAN BURENMI $289,873$371,089$448,557$557,418 WASHTENAWMI $349,367$447,241$540,608$671,848 WAYNEMI $301,266$385,671$466,177$579,342 ANOKAMN $369,620$473,165$571,949$710,785 CARVERMN $369,620$473,165$571,949$710,785 CHISAGOMN $369,620$473,165$571,949$710,785 COOKMN $300,000$384,051$464,203$576,911 DAKOTAMN $369,620$473,165$571,949$710,785 HENNEPINMN $369,620$473,165$571,949$710,785 ISANTIMN $369,620$473,165$571,949$710,785 RAMSEYMN $369,620$473,165$571,949$710,785 SCOTTMN $369,620$473,165$571,949$710,785 SHERBURNEMN $369,620$473,165$571,949$710,785 WASHINGTONMN $369,620$473,165$571,949$710,785 WRIGHTMN $369,620$473,165$571,949$710,785 CRAWFORDMO $284,810$364,608$440,709$547,696 FRANKLINMO $284,810$364,608$440,709$547,696 JEFFERSONMO $284,810$364,608$440,709$547,696 LINCOLNMO $284,810$364,608$440,709$547,696 ST. CHARLESMO $284,810$364,608$440,709$547,696 ST. LOUISMO $284,810$364,608$440,709$547,696 ST. LOUIS CITYMO $284,810$364,608$440,709$547,696 WARRENMO $284,810$364,608$440,709$547,696 WASHINGTONMO $284,810$364,608$440,709$547,696 April 11, 20116372011–15 I.R.B. CARBONMT $294,937$377,570$456,405$567,190 FLATHEADMT $305,114$390,582$472,152$586,734 GALLATINMT $391,139$500,709$605,266$752,203 JEFFERSONMT $345,570$442,380$534,734$664,557 LAKEMT $305,063$390,532$472,051$586,633 LEWIS AND CLARKMT $345,570$442,380$534,734$664,557 MADISONMT $285,316$365,266$441,519$548,658 MISSOULAMT $294,937$377,570$456,405$567,190 RAVALLIMT $307,595$393,772$475,949$591,544 SWEET GRASSMT $350,633$448,861$542,582$674,278 YELLOWSTONEMT $294,937$377,570$456,405$567,190 ANSONNC $307,595$393,772$475,949$591,544 BRUNSWICKNC $307,595$393,772$475,949$591,544 BUNCOMBENC $307,595$393,772$475,949$591,544 CABARRUSNC $307,595$393,772$475,949$591,544 CAMDENNC $738,987$946,025$1,143,544$1,421,165 CARTERETNC $291,139$372,709$450,532$559,899 CHATHAMNC $338,886$433,823$524,405$651,696 CURRITUCKNC $464,658$594,835$719,038$893,570 DARENC $465,823$596,304$720,810$895,797 DURHAMNC $338,886$433,823$524,405$651,696 FRANKLINNC $298,734$382,430$462,278$574,481 GASTONNC $307,595$393,772$475,949$591,544 HAYWOODNC $307,595$393,772$475,949$591,544 HENDERSONNC $307,595$393,772$475,949$591,544 HYDENC $489,114$626,127$756,861$940,608 JOHNSTONNC $298,734$382,430$462,278$574,481 MADISONNC $307,595$393,772$475,949$591,544 MECKLENBURGNC $307,595$393,772$475,949$591,544 NEW HANOVERNC $307,595$393,772$475,949$591,544 ONSLOWNC $310,127$397,013$479,899$596,405 ORANGENC $338,886$433,823$524,405$651,696 PASQUOTANKNC $738,987$946,025$1,143,544$1,421,165 PENDERNC $307,595$393,772$475,949$591,544 PERQUIMANSNC $738,987$946,025$1,143,544$1,421,165 PERSONNC $338,886$433,823$524,405$651,696 TRANSYLVANIANC $297,468$380,810$460,304$572,051 UNIONNC $307,595$393,772$475,949$591,544 2011–15 I.R.B.638April 11, 2011 WAKENC $298,734$382,430$462,278$574,481 WATAUGANC $288,608$369,468$446,582$554,987 BELKNAPNH $284,810$364,608$440,709$547,696 GRAFTONNH $284,810$364,608$440,709$547,696 HILLSBOROUGHNH $407,595$521,772$630,734$783,848 MERRIMACKNH $306,329$392,152$474,025$589,114 ROCKINGHAMNH $530,380$678,987$820,709$1,019,949 STRAFFORDNH $530,380$678,987$820,709$1,019,949 ATLANTICNJ $459,494$588,203$711,038$883,646 BERGENNJ $738,987$946,025$1,143,544$1,421,165 BURLINGTONNJ $425,316$544,456$658,127$817,924 CAMDENNJ $425,316$544,456$658,127$817,924 CAPE MAYNJ $493,671$632,000$763,899$949,367 CUMBERLANDNJ $410,127$525,013$634,633$788,709 ESSEXNJ $738,987$946,025$1,143,544$1,421,165 GLOUCESTERNJ $425,316$544,456$658,127$817,924 HUDSONNJ $738,987$946,025$1,143,544$1,421,165 HUNTERDONNJ $738,987$946,025$1,143,544$1,421,165 MERCERNJ $445,570$570,380$689,468$856,861 MIDDLESEXNJ $738,987$946,025$1,143,544$1,421,165 MONMOUTHNJ $738,987$946,025$1,143,544$1,421,165 MORRISNJ $738,987$946,025$1,143,544$1,421,165 OCEANNJ $738,987$946,025$1,143,544$1,421,165 PASSAICNJ $738,987$946,025$1,143,544$1,421,165 SALEMNJ $425,316$544,456$658,127$817,924 SOMERSETNJ $738,987$946,025$1,143,544$1,421,165 SUSSEXNJ $738,987$946,025$1,143,544$1,421,165 UNIONNJ $738,987$946,025$1,143,544$1,421,165 WARRENNJ $407,595$521,772$630,734$783,848 LOS ALAMOSNM $385,468$493,468$596,456$741,266 SAN JUANNM $284,810$364,608$440,709$547,696 SANTA FENM $432,911$554,177$669,873$832,506 TAOSNM $276,000$353,316$427,089$530,785 CARSON CITYNV $403,797$516,911$624,861$776,557 CLARKNV $405,063$518,532$626,785$778,987 April 11, 20116392011–15 I.R.B. DOUGLASNV $474,684$607,696$734,532$912,861 ELKONV $329,114$421,316$509,266$632,911 EUREKANV $329,114$421,316$509,266$632,911 LYONNV $335,443$429,418$519,089$645,063 NYENV $329,114$421,316$509,266$632,911 STOREYNV $408,861$523,392$632,658$786,278 WASHOENV $408,861$523,392$632,658$786,278 ALBANYNY $316,456$405,114$489,671$608,557 BRONXNY $738,987$946,025$1,143,544$1,421,165 COLUMBIANY $279,747$358,127$432,861$537,975 DUTCHESSNY $449,367$575,241$695,342$864,152 ERIENY $279,747$358,127$432,861$537,975 KINGSNY $738,987$946,025$1,143,544$1,421,165 MADISONNY $284,810$364,608$440,709$547,696 NASSAUNY $738,987$946,025$1,143,544$1,421,165 NEW YORKNY $738,987$946,025$1,143,544$1,421,165 NIAGARANY $279,747$358,127$432,861$537,975 ONONDAGANY $284,810$364,608$440,709$547,696 ORANGENY $449,367$575,241$695,342$864,152 OSWEGONY $284,810$364,608$440,709$547,696 PUTNAMNY $738,987$946,025$1,143,544$1,421,165 QUEENSNY $738,987$946,025$1,143,544$1,421,165 RENSSELAERNY $316,456$405,114$489,671$608,557 RICHMONDNY $738,987$946,025$1,143,544$1,421,165 ROCKLANDNY $738,987$946,025$1,143,544$1,421,165 SARATOGANY $316,456$405,114$489,671$608,557 SCHENECTADYNY $316,456$405,114$489,671$608,557 SCHOHARIENY $316,456$405,114$489,671$608,557 SUFFOLKNY $738,987$946,025$1,143,544$1,421,165 ULSTERNY $411,392$526,633$636,608$791,139 WESTCHESTERNY $738,987$946,025$1,143,544$1,421,165 ASHTABULAOH $294,937$377,570$456,405$567,190 ATHENSOH $437,975$560,658$677,722$842,278 BROWNOH $341,772$437,519$528,861$657,266 BUTLEROH $341,772$437,519$528,861$657,266 CARROLLOH $281,013$359,747$434,835$540,405 CLERMONTOH $341,772$437,519$528,861$657,266 2011–15 I.R.B.640April 11, 2011 CUYAHOGAOH $302,532$387,291$468,152$581,772 DELAWAREOH $345,570$442,380$534,734$664,557 FAIRFIELDOH $345,570$442,380$534,734$664,557 FRANKLINOH $345,570$442,380$534,734$664,557 GEAUGAOH $302,532$387,291$468,152$581,772 GREENEOH $274,684$351,646$425,063$528,253 HAMILTONOH $341,772$437,519$528,861$657,266 LAKEOH $302,532$387,291$468,152$581,772 LICKINGOH $345,570$442,380$534,734$664,557 LORAINOH $302,532$387,291$468,152$581,772 MADISONOH $345,570$442,380$534,734$664,557 MEDINAOH $302,532$387,291$468,152$581,772 MERCEROH $296,203$379,190$458,329$569,620 MIAMIOH $274,684$351,646$425,063$528,253 MONTGOMERYOH $274,684$351,646$425,063$528,253 MORROWOH $345,570$442,380$534,734$664,557 PICKAWAYOH $345,570$442,380$534,734$664,557 PORTAGEOH $334,177$427,797$517,114$642,633 PREBLEOH $274,684$351,646$425,063$528,253 STARKOH $281,013$359,747$434,835$540,405 SUMMITOH $334,177$427,797$517,114$642,633 UNIONOH $345,570$442,380$534,734$664,557 VAN WERTOH $305,063$390,532$472,051$586,633 WARRENOH $341,772$437,519$528,861$657,266 BENTONOR $341,772$437,519$528,861$657,266 CLACKAMASOR $424,051$542,835$656,203$815,494 CLATSOPOR $351,899$450,481$544,557$676,709 COLUMBIAOR $424,051$542,835$656,203$815,494 CURRYOR $355,696$455,342$550,430$684,051 DESCHUTESOR $453,165$580,101$701,215$871,494 HOOD RIVEROR $398,734$510,430$617,013$766,785 JACKSONOR $427,848$547,696$662,076$822,785 JOSEPHINEOR $329,114$421,316$509,266$632,911 LANEOR $348,101$445,620$538,633$669,418 LINCOLNOR $316,456$405,114$489,671$608,557 MARIONOR $298,734$382,430$462,278$574,481 MULTNOMAHOR $424,051$542,835$656,203$815,494 April 11, 20116412011–15 I.R.B. POLKOR $298,734$382,430$462,278$574,481 TILLAMOOKOR $348,101$445,620$538,633$669,418 WASHINGTONOR $424,051$542,835$656,203$815,494 YAMHILLOR $424,051$542,835$656,203$815,494 ALLEGHENYPA $331,646$424,557$513,215$637,772 ARMSTRONGPA $331,646$424,557$513,215$637,772 BEAVERPA $331,646$424,557$513,215$637,772 BERKSPA $303,797$388,911$470,076$584,203 BUCKSPA $425,316$544,456$658,127$817,924 BUTLERPA $331,646$424,557$513,215$637,772 CARBONPA $407,595$521,772$630,734$783,848 CENTREPA $283,544$362,987$438,734$545,266 CHESTERPA $425,316$544,456$658,127$817,924 DELAWAREPA $425,316$544,456$658,127$817,924 FAYETTEPA $331,646$424,557$513,215$637,772 LANCASTERPA $388,608$497,468$601,316$747,342 LEHIGHPA $407,595$521,772$630,734$783,848 MONTGOMERYPA $425,316$544,456$658,127$817,924 NORTHAMPTONPA $407,595$521,772$630,734$783,848 PHILADELPHIAPA $425,316$544,456$658,127$817,924 PIKEPA $738,987$946,025$1,143,544$1,421,165 WASHINGTONPA $331,646$424,557$513,215$637,772 WESTMORELANDPA $331,646$424,557$513,215$637,772 YORKPA $430,380$550,937$665,975$827,646 BRISTOLRI $481,013$615,797$744,354$925,013 KENTRI $481,013$615,797$744,354$925,013 NEWPORTRI $481,013$615,797$744,354$925,013 PROVIDENCERI $481,013$615,797$744,354$925,013 WASHINGTONRI $481,013$615,797$744,354$925,013 BEAUFORTSC $392,405$502,329$607,190$754,633 BERKELEYSC $339,241$434,278$524,962$652,405 CHARLESTONSC $339,241$434,278$524,962$652,405 DORCHESTERSC $339,241$434,278$524,962$652,405 GEORGETOWNSC $400,000$512,051$618,987$769,215 GREENVILLESC $298,734$382,430$462,278$574,481 HORRYSC $289,873$371,089$448,557$557,418 2011–15 I.R.B.642April 11, 2011 JASPERSC $392,405$502,329$607,190$754,633 LAURENSSC $298,734$382,430$462,278$574,481 PICKENSSC $298,734$382,430$462,278$574,481 YORKSC $307,595$393,772$475,949$591,544 CANNONTN $437,975$560,658$677,722$842,278 CHEATHAMTN $437,975$560,658$677,722$842,278 DAVIDSONTN $437,975$560,658$677,722$842,278 DICKSONTN $437,975$560,658$677,722$842,278 HICKMANTN $437,975$560,658$677,722$842,278 MACONTN $437,975$560,658$677,722$842,278 ROBERTSONTN $437,975$560,658$677,722$842,278 RUTHERFORDTN $437,975$560,658$677,722$842,278 SMITHTN $437,975$560,658$677,722$842,278 SUMNERTN $437,975$560,658$677,722$842,278 TROUSDALETN $437,975$560,658$677,722$842,278 WILLIAMSONTN $437,975$560,658$677,722$842,278 WILSONTN $437,975$560,658$677,722$842,278 ATASCOSATX $336,709$431,038$521,013$647,494 BANDERATX $336,709$431,038$521,013$647,494 BASTROPTX $292,405$374,329$452,456$562,329 BEXARTX $336,709$431,038$521,013$647,494 CALDWELLTX $292,405$374,329$452,456$562,329 COMALTX $336,709$431,038$521,013$647,494 GUADALUPETX $336,709$431,038$521,013$647,494 HAYSTX $292,405$374,329$452,456$562,329 JEFF DAVISTX $274,684$351,646$425,063$528,253 KENDALLTX $336,709$431,038$521,013$647,494 MEDINATX $336,709$431,038$521,013$647,494 TRAVISTX $292,405$374,329$452,456$562,329 WILLIAMSONTX $292,405$374,329$452,456$562,329 WILSONTX $336,709$431,038$521,013$647,494 DAGGETTUT $306,278$392,101$473,924$589,013 DAVISUT $402,532$515,291$622,886$774,076 JUABUT $327,848$419,696$507,291$630,481 KANEUT $388,608$497,468$601,316$747,342 MORGANUT $402,532$515,291$622,886$774,076 April 11, 20116432011–15 I.R.B. RICHUT $300,456$384,608$464,911$577,772 SALT LAKEUT $738,987$946,025$1,143,544$1,421,165 SUMMITUT $738,987$946,025$1,143,544$1,421,165 TOOELEUT $738,987$946,025$1,143,544$1,421,165 UTAHUT $327,848$419,696$507,291$630,481 WASATCHUT $436,709$559,038$675,797$839,848 WASHINGTONUT $377,215$482,886$583,696$725,418 WEBERUT $402,532$515,291$622,886$774,076 ALBEMARLEVA $442,532$566,532$684,759$851,038 ALEXANDRIAVA $738,987$946,025$1,143,544$1,421,165 AMELIAVA $542,684$694,734$839,747$1,043,646 AMHERSTVA $295,797$378,684$457,722$568,810 APPOMATTOXVA $295,797$378,684$457,722$568,810 ARLINGTONVA $738,987$946,025$1,143,544$1,421,165 BEDFORDVA $295,797$378,684$457,722$568,810 BEDFORD INDVA $295,797$378,684$457,722$568,810 BOTETOURTVA $283,544$362,987$438,734$545,266 CAMPBELLVA $295,797$378,684$457,722$568,810 CAROLINEVA $542,684$694,734$839,747$1,043,646 CHARLES CITYVA $542,684$694,734$839,747$1,043,646 CHARLOTTESVILLEVA $442,532$566,532$684,759$851,038 CHESAPEAKEVA $464,658$594,835$719,038$893,570 CHESTERFIELDVA $542,684$694,734$839,747$1,043,646 CLARKEVA $738,987$946,025$1,143,544$1,421,165 COLONIAL HEIGHTVA $542,684$694,734$839,747$1,043,646 CRAIGVA $283,544$362,987$438,734$545,266 CULPEPERVA $387,342$495,848$599,392$744,911 CUMBERLANDVA $542,684$694,734$839,747$1,043,646 DINWIDDIEVA $542,684$694,734$839,747$1,043,646 ESSEXVA $379,747$486,127$587,646$730,278 FAIRFAXVA $738,987$946,025$1,143,544$1,421,165 FAIRFAX INDVA $738,987$946,025$1,143,544$1,421,165 FALLS CHURCHVA $738,987$946,025$1,143,544$1,421,165 FAUQUIERVA $738,987$946,025$1,143,544$1,421,165 FLUVANNAVA $442,532$566,532$684,759$851,038 FRANKLINVA $283,544$362,987$438,734$545,266 FREDERICKVA $481,013$615,797$744,354$925,013 FREDERICKSBURGVA $738,987$946,025$1,143,544$1,421,165 2011–15 I.R.B.644April 11, 2011 GILESVA $295,797$378,684$457,722$568,810 GLOUCESTERVA $464,658$594,835$719,038$893,570 GOOCHLANDVA $542,684$694,734$839,747$1,043,646 GREENEVA $442,532$566,532$684,759$851,038 HAMPTONVA $464,658$594,835$719,038$893,570 HANOVERVA $542,684$694,734$839,747$1,043,646 HARRISONBURGVA $280,658$359,291$434,278$539,696 HENRICOVA $542,684$694,734$839,747$1,043,646 HIGHLANDVA $291,139$372,709$450,532$559,899 HOPEWELLVA $542,684$694,734$839,747$1,043,646 ISLE OF WIGHTVA $464,658$594,835$719,038$893,570 JAMES CITYVA $464,658$594,835$719,038$893,570 KING AND QUEENVA $542,684$694,734$839,747$1,043,646 KING GEORGEVA $391,139$500,709$605,266$752,203 KING WILLIAMVA $542,684$694,734$839,747$1,043,646 LANCASTERVA $551,899$706,532$854,025$1,061,367 LEXINGTONVA $300,000$384,051$464,203$576,911 LOUDOUNVA $738,987$946,025$1,143,544$1,421,165 LOUISAVA $542,684$694,734$839,747$1,043,646 LYNCHBURGVA $295,797$378,684$457,722$568,810 MADISONVA $281,013$359,747$434,835$540,405 MANASSASVA $738,987$946,025$1,143,544$1,421,165 MANASSAS PARKVA $738,987$946,025$1,143,544$1,421,165 MATHEWSVA $464,658$594,835$719,038$893,570 MIDDLESEXVA $334,177$427,797$517,114$642,633 MONTGOMERYVA $295,797$378,684$457,722$568,810 NELSONVA $442,532$566,532$684,759$851,038 NEW KENTVA $542,684$694,734$839,747$1,043,646 NEWPORT NEWSVA $464,658$594,835$719,038$893,570 NORFOLKVA $464,658$594,835$719,038$893,570 NORTHUMBERLANDVA $397,468$508,810$615,038$764,354 ORANGEVA $335,443$429,418$519,089$645,063 PETERSBURGVA $542,684$694,734$839,747$1,043,646 POQUOSONVA $464,658$594,835$719,038$893,570 PORTSMOUTHVA $464,658$594,835$719,038$893,570 POWHATANVA $542,684$694,734$839,747$1,043,646 PRINCE GEORGEVA $542,684$694,734$839,747$1,043,646 PRINCE WILLIAMVA $738,987$946,025$1,143,544$1,421,165 April 11, 20116452011–15 I.R.B. PULASKIVA $295,797$378,684$457,722$568,810 RADFORDVA $295,797$378,684$457,722$568,810 RAPPAHANNOCKVA $364,506$466,633$564,051$700,962 RICHMONDVA $303,797$388,911$470,076$584,203 RICHMOND INDVA $542,684$694,734$839,747$1,043,646 ROANOKEVA $283,544$362,987$438,734$545,266 ROANOKE INDVA $283,544$362,987$438,734$545,266 ROCKINGHAMVA $280,658$359,291$434,278$539,696 SALEMVA $283,544$362,987$438,734$545,266 SPOTSYLVANIAVA $738,987$946,025$1,143,544$1,421,165 STAFFORDVA $738,987$946,025$1,143,544$1,421,165 SUFFOLKVA $464,658$594,835$719,038$893,570 SURRYVA $464,658$594,835$719,038$893,570 SUSSEXVA $542,684$694,734$839,747$1,043,646 VIRGINIA BEACHVA $464,658$594,835$719,038$893,570 WARRENVA $738,987$946,025$1,143,544$1,421,165 WILLIAMSBURGVA $464,658$594,835$719,038$893,570 WINCHESTERVA $481,013$615,797$744,354$925,013 YORKVA $464,658$594,835$719,038$893,570 BENNINGTONVT $280,658$359,291$434,278$539,696 CHITTENDENVT $322,785$413,215$499,494$620,759 FRANKLINVT $322,785$413,215$499,494$620,759 GRAND ISLEVT $322,785$413,215$499,494$620,759 LAMOILLEVT $279,494$357,772$432,506$537,468 ORANGEVT $284,810$364,608$440,709$547,696 WINDSORVT $284,810$364,608$440,709$547,696 BENTONWA $278,481$356,506$430,937$535,544 CHELANWA $347,038$444,253$537,013$667,392 CLALLAMWA $388,962$497,924$601,873$748,000 CLARKWA $424,051$542,835$656,203$815,494 DOUGLASWA $347,038$444,253$537,013$667,392 FRANKLINWA $278,481$356,506$430,937$535,544 ISLANDWA $386,076$494,228$597,418$742,430 JEFFERSONWA $443,038$567,139$685,570$852,000 KINGWA $574,684$735,696$889,266$1,105,165 KITSAPWA $481,013$615,797$744,354$925,013 KITTITASWA $332,911$426,177$515,139$640,203 2011–15 I.R.B.646April 11, 2011 MASONWA $313,924$401,873$485,772$603,696 PIERCEWA $574,684$735,696$889,266$1,105,165 SAN JUANWA $601,266$769,722$930,430$1,156,304 SKAGITWA $378,481$484,506$585,671$727,848 SKAMANIAWA $424,051$542,835$656,203$815,494 SNOHOMISHWA $574,684$735,696$889,266$1,105,165 THURSTONWA $365,823$468,304$566,076$703,494 WHATCOMWA $379,747$486,127$587,646$730,278 COLUMBIAWI $297,468$380,810$460,304$572,051 DANEWI $297,468$380,810$460,304$572,051 IOWAWI $297,468$380,810$460,304$572,051 KENOSHAWI $415,190$531,494$642,481$798,430 MILWAUKEEWI $318,987$408,354$493,620$613,418 OZAUKEEWI $318,987$408,354$493,620$613,418 PIERCEWI $369,620$473,165$571,949$710,785 ST. CROIXWI $369,620$473,165$571,949$710,785 WALWORTHWI $282,278$361,367$436,810$542,835 WASHINGTONWI $318,987$408,354$493,620$613,418 WAUKESHAWI $318,987$408,354$493,620$613,418 BERKELEYWV $382,278$489,367$591,544$735,139 HAMPSHIREWV $481,013$615,797$744,354$925,013 JEFFERSONWV $738,987$946,025$1,143,544$1,421,165 MORGANWV $382,278$489,367$591,544$735,139 SHERIDANWY $275,949$353,266$426,987$530,684 SUBLETTEWY $302,532$387,291$468,152$581,772 TETONWY $702,532$899,342$1,087,139$1,351,038 MANUAAS $308,861$395,392$477,924$593,975 GUAMGU $659,494$844,253$1,020,506$1,268,253 NORTHERN ISLANDMP $612,658$784,304$948,051$1,178,228 ROTAMP $479,747$614,177$742,380$922,582 SAIPANMP $617,722$790,785$955,899$1,187,949 TINIANMP $621,519$795,646$961,772$1,195,241 April 11, 20116472011–15 I.R.B. AGUAS BUENASPR $613,924$785,924$950,025$1,180,658 AIBONITOPR $613,924$785,924$950,025$1,180,658 ARECIBOPR $613,924$785,924$950,025$1,180,658 BARCELONETAPR $613,924$785,924$950,025$1,180,658 BARRANQUITASPR $613,924$785,924$950,025$1,180,658 BAYAMONPR $613,924$785,924$950,025$1,180,658 CAGUASPR $613,924$785,924$950,025$1,180,658 CAMUYPR $613,924$785,924$950,025$1,180,658 CANOVANASPR $613,924$785,924$950,025$1,180,658 CAROLINAPR $613,924$785,924$950,025$1,180,658 CATANOPR $613,924$785,924$950,025$1,180,658 CAYEYPR $613,924$785,924$950,025$1,180,658 CEIBAPR $329,114$421,316$509,266$632,911 CIALESPR $613,924$785,924$950,025$1,180,658 CIDRAPR $613,924$785,924$950,025$1,180,658 COMERIOPR $613,924$785,924$950,025$1,180,658 COROZALPR $613,924$785,924$950,025$1,180,658 DORADOPR $613,924$785,924$950,025$1,180,658 FAJARDOPR $329,114$421,316$509,266$632,911 FLORIDAPR $613,924$785,924$950,025$1,180,658 GUAYNABOPR $613,924$785,924$950,025$1,180,658 GURABOPR $613,924$785,924$950,025$1,180,658 HATILLOPR $613,924$785,924$950,025$1,180,658 HUMACAOPR $613,924$785,924$950,025$1,180,658 JUNCOSPR $613,924$785,924$950,025$1,180,658 LAS PIEDRASPR $613,924$785,924$950,025$1,180,658 LOIZAPR $613,924$785,924$950,025$1,180,658 LUQUILLOPR $329,114$421,316$509,266$632,911 MANATIPR $613,924$785,924$950,025$1,180,658 MAUNABOPR $613,924$785,924$950,025$1,180,658 MOROVISPR $613,924$785,924$950,025$1,180,658 NAGUABOPR $613,924$785,924$950,025$1,180,658 NARANJITOPR $613,924$785,924$950,025$1,180,658 OROCOVISPR $613,924$785,924$950,025$1,180,658 QUEBRADILLASPR $613,924$785,924$950,025$1,180,658 RIO GRANDEPR $613,924$785,924$950,025$1,180,658 SAN JUANPR $613,924$785,924$950,025$1,180,658 SAN LORENZOPR $613,924$785,924$950,025$1,180,658 TOA ALTAPR $613,924$785,924$950,025$1,180,658 2011–15 I.R.B.648April 11, 2011 TOA BAJAPR $613,924$785,924$950,025$1,180,658 TRUJILLO ALTOPR $613,924$785,924$950,025$1,180,658 VEGA ALTAPR $613,924$785,924$950,025$1,180,658 VEGA BAJAPR $613,924$785,924$950,025$1,180,658 YABUCOAPR $613,924$785,924$950,025$1,180,658 ST. CROIXVI $331,899$424,861$513,570$638,278 ST. JOHN, VIVI $631,190$808,051$976,709$1,213,823 ST. THOMASVI $451,848$578,430$699,190$868,962 All other areas (floor): $274,481$351,392$424,709$527,848 .02 The nationwideaverage purchase price (for use in the housing cost/income ratio for new and existing residences) is $220,000. SECTION 5. EFFECT ON OTHER DOCUMENTS Rev. Proc. 2010–25 is obsolete except as provided in section 6 of this revenue procedure. SECTION 6. EFFECTIVE DATES .01 Issuers may rely on this revenue procedure to determine average area pur- chase price safe harbors for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the period that begins on March 22, 2011, and ends on the date as of which the safe harbors contained in section 4.01 of this revenue procedure are rendered obsolete by a new revenue procedure. .02 Notwithstanding section 5 of this revenue procedure, issuers may continue to rely on the average area purchase price safe harbors contained in Rev. Proc. 2010–25, with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, be- fore April 21, 2011, if the commitments to provide financing or issue mortgage credit certificates are made on or before May 21, 2011. .03 Except as provided in section 6.04, issuers must use the nationwide average purchase price limitation contained in this revenue procedure for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the pe- riod that begins on March 22, 2011, and ends on the date when the nationwide av- erage purchase price limitation is rendered obsolete by a new revenue procedure. .04 Notwithstanding sections 5 and 6.03 of this revenue procedure, issuers may continue to rely on the nationwide average purchase price set forth in Rev. Proc. 2010–25 with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, before April 21, 2011, if the commitments to provide financing or issue mortgage credit certificates are made on or before May 21, 2011. SECTION 7. REQUEST FOR COMMENTS The Treasury Department and the IRS are reviewing the available data sources and method used to determine the aver- age area purchase price safe harbors listed in section 4.01 of this revenue procedure and are considering possible changes in the data used to determine these safe harbors beginning in 2012. The alternative method under consideration would involve the use of certain current available data from the Department of Housing and Urban De- velopment (“HUD”) regarding county me- dian housing purchase prices instead of the FHA loan limits. For example, the 2011 single unit purchase price limit for Elmore County, Alabama is $274,481 based on the FHA loan limit of $271,050. According to HUD, the median housing price in Elmore County was $141,727 for January through August 2010. However, Elmore County is part of the Montgomery metropolitan area and Autauga County in that metropolitan area had the highest median price for that period of $150,000. Since $150,000 is a median value, dividing by .79 converts ittoameanvalueforasingleunitlimit of $189,873. Applying factors based on the minimum FHA loan limit amounts by property size, the limit would be $243,075 for two-units, $293,790 for three-units, and $365,145 for four-units. Similarly, the 2011 single unit purchase price for Wicomico County, Maryland is $332,911 based on the FHA loan limit of $328,750. According to HUD, the me- dian housing pricein Wicomico County was $155,000 for January through August 2010. Although Wicomico is in the Salis- bury metropolitan area, it has the highest median price for that period for the area. Since $155,000 is a median value, dividing by .79 converts it to a mean value for a sin- gle-unit limit of $196,203. Applying fac- tors based on the minimum FHA loan limit amounts by property size, the limit would be $251,179 for two-units, $303,585 for three-units, and $377,318 for four-units. The Treasury Department and the IRS solicit public comments on this alterna- tive method using current HUD data on county median housing purchase prices or whether other data or methods should be used to calculate these safe harbors. Comments should be submitted in writing and can be e-mailed to April 11, 20116492011–15 I.R.B. notice.comments@irscounsel.treas.gov (include “Rev. Proc. 2011–23” in the subject line) or mailed to Office of Associate Chief Counsel (Financial Institutions & Products), Re: Rev. Proc. 2011–23, CC:FIP:B5, Room 3547, 1111 Constitution Avenue, NW, Washington, DC 20224. The due date for the public comments is June 15, 2011. Comments that are submitted will be made available to the public. SECTION 8. PAPERWORK REDUCTION ACT The collection of information con- tained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accor- dance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1877. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. This revenue procedure contains a col- lection of information requirement in sec- tion 3.03. The purpose of the collection of information is to verify the applica- ble FHA loan limit that issuers of quali- fied mortgage bonds and qualified mort- gage certificates have used to calculate the average area purchase price for a given metropolitan statistical area for purposes of section 143(e) and 25(c). The collec- tion of information is required to obtain the benefit of using revisions to FHA loan limits to determine average area purchase prices. The likely respondents are state and local governments. The estimated total annual reporting and/or recordkeeping burden is: 15 hours. The estimated annual burden per re- spondent and/or recordkeeper: 15 minutes. The estimated number of respondents and/or recordkeepers: 60. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. SECTION 9. DRAFTING INFORMATION The principal authors of this rev- enue procedure are David E. White and Timothy L. Jones of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure, contact David E. White at (202) 622–3980 (not a toll-free call). 2011–15 I.R.B.650April 11, 2011 Part IV. Items o fGeneralInterest Foundations S tatus of Certain Organization s Announcement 2011–27 The following organizations have failed to establish o r have been unable to main- tain their st atus as public charities or as op- erating foun dations. Accordingly, grantors and contribu tors may not, after this date, rely on previ ous rulings or designations in the Cumul ative List of Organizations (Publicati on 78), or on the presumption arising fro m the filing of notices under sec- tion 508(b) of the Code. This listing does notindica te that the organizations have lost their stat us as organizations described in section 50 1(c)(3), eligible to receive de- ductible c ontributions. Former Pub lic Charities. The follow- ing organi zations (which have been treated as organi zations that are not private foun- dations d escribed in section 509(a) of the Code) are now classified as private foun- dations: Aid for As ian Women, West Hills, CA America f or Ghana, Deltona, FL Beacon Hi ll Community Improvement Associat ion, Homewood, IL Bewear Pr ison Ministry, Inc., Houston, TX Crenshaw Economic Outreach, Inc., Montgome ry, AL Cutting E dge Empowerment, Fresno, CA Dallas Ne ighbors — A Non Profit Corporat ion, Dallas, TX Divine Commun ity Growth Corporation, East Saint Lou is, IL Foundation fo r Research in Ebony Economics, In c., Huntsville, AL Gods House of R ecovery, Cleveland, OH Hamilton Healt h Center Foundation, Harrisburg, P A Hawaii Kai Edu cational Foundation, Honolulu, HI Insight Found ation, Inc., Camden, NJ Internationa l Institute for Trade and Education, In c., Allston, MA James and Nanc y Barber Foundation, Dallas, TX Kelting Found ation, Inc., Palm City, FL Kollel Mekor H abrachah, Inc., Flushing, NY Lebanese-Ame rican Foundation for the Handicapped, Inc., Southlake, TX Mensana Found ation, Inc., Opa Locka, FL New West Balle t Association, Vista, CA Patrick Usher Ministries, Inc., Winston Salem ,NC Project New Be ginnings, Chicago, IL Promise Learni ng Initiative, Inc., Toledo, OH Provenance Pr oductions, Inc., New York, NY Regency Trade Core International of North Carolin a, Inc., Fayetteville, NC Rushford-Pet erson Scholarship Trust Fund, Rushfor d, MN Sae-Mar Farmw orker and Community Housing Devel opment,Seattle,WA Shadrack, Inc ., New Rochelle, NY St. Mark Famil y Life Center, Inc., Orlando, FL Sulufaiga O Sa moa Coalition, Salida, CA Tabor Holding C ompany, Inc., Dallas, TX TNT Family Deve lopment Corporation, Kenner, LA Tulsa Senior Wo men’s Basketball, Inc., Tulsa, OK Ukraine Proje ct, Inc., New York, NY United Parents Association, Denver, CO Village Resour ce Ministries, Chicago, IL Visual Manna Ac ademy Ministries, Raymore, MO Wildlands Fore ver Trust Incorporated, Tampa, FL Weeksville Com munity Development Corporation, E lizabeth City, NC Words of Wisdom , Inc., Fort Wayne, IN If an organizat ion listed above submits information t hat warrants the renewal of its classific ation as a public charity or as a private oper ating foundation, the Inter- nal Revenue Se rvicewillissuearulingor determinatio nletterwiththerevisedclas- sification a s to foundation status. Grantors and contribu tors may thereafter rely upon such ruling o r determination letter as pro- vided in sect ion 1.509(a)–7 of the Income Tax Regulat ions. It is not the practice of the Service to announce such revised clas- sification of foundation status in the Inter- nal Revenue Bulletin. April 11, 20116512011–15 I.R.B. Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the ef- fect: Amplifieddescribes a situation where no change is being made in a prior pub- lished position, but the prior position is be- ingextendedtoapplytoavariationofthe fact situation set forth therein. Thus, if an earlier ruling held that a principle ap- plied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare withmodi- fied,below). Clarifiedis used in those instances where the language in a prior ruling is be- ing made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously pub- lished ruling and points out an essential difference between them. Modifiedis used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare withamplifiedandclarified, above). Obsoleteddescribes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rul- ings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revokeddescribes situations where the position in the previously published ruling is not correct and the correct position is beingstatedinanewruling. Supersededdescribes a situation where the new ruling does nothing more than re- state the substance and situation of a previ- ously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same po- sition published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single rul- ing a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new rul- ing does more than restate the substance of a prior ruling, a combination of terms is used. For example,modifiedandsu- persededdescribes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously pub- lished ruling is first modified and then, as modified, is superseded. Supplementedis used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original rul- ing has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the ad- ditions, and supersedes all prior rulings in the series. Suspendedis used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. Abbreviations The fol lowing abbreviations in current use and for merly used will appear in material publis hedintheBulletin. A—Individual. Acq.—A cquiescence. B—Individual. BE—Beneficiary. BK—Bank . B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cu mulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Coo perative. Ct.D.—Court Decision. CY—County. D—Decede nt. DC—Dummy Corporation. DE—Donee. Del. Order —Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Emp loyer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduc iary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Fo reign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Fed eral Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grante e. GP—General Partner. GR—Grantor. IC—Insura nce Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—No nacquiescence. O—Organization. P—Parent Corporation. PHC—Persona l Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Pa rtnership. PTE—Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Re al Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsi diary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Trans feree. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpay er. TR—Trust. TT—Trustee. U.S.C.—Uni ted States Code. X—Corporation. Y—Corporation. Z—Corporat ion. 2011–15 I.R.B.iApril 11, 2011 Numerical Finding List 1 Bulletin 2011–1 through 2011–15 Announcements: 2011-1, 2011-2 I.R.B.304 2011-2, 2011-3 I.R.B.324 2011-3, 2011-3 I.R.B.324 2011-4, 2011-4 I.R.B.424 2011-5, 2011-4 I.R.B.430 2011-6, 2011-4 I.R.B.433 2011-7, 2011-5 I.R.B.446 2011-8, 2011-5 I.R.B.446 2011-9, 2011-7 I.R.B.499 2011-10, 2011-7 I.R.B.499 2011-11, 2011-7 I.R.B.500 2011-12, 2011-9 I.R.B.532 2011-13, 2011-8 I.R.B.525 2011-14, 2011-9 I.R.B.532 2011-15, 2011-8 I.R.B.526 2011-16, 2011-7 I.R.B.500 2011-17, 2011-9 I.R.B.532 2011-18, 2011-12 I.R.B.567 2011-19, 2011-11 I.R.B.553 2011-20, 2011-10 I.R.B.542 2011-21, 2011-12 I.R.B.567 2011-23, 2011-12 I.R.B.568 2011-24, 2011-12 I.R.B.569 2011-25, 2011-14 I.R.B.608 2011-26, 2011-14 I.R.B.608 2011-27, 2011-15 I.R.B.651 Notices: 2011-1, 2011-2 I.R.B.259 2011-2, 2011-2 I.R.B.260 2011-3, 2011-2 I.R.B.263 2011-4, 2011-2 I.R.B.282 2011-5, 2011-3 I.R.B.314 2011-6, 2011-3 I.R.B.315 2011-7, 2011-5 I.R.B.437 2011-8, 2011-8 I.R.B.503 2011-9, 2011-6 I.R.B.459 2011-10, 2011-6 I.R.B.463 2011-11, 2011-7 I.R.B.497 2011-12, 2011-8 I.R.B.514 2011-13, 2011-9 I.R.B.529 2011-14, 2011-11 I.R.B.544 2011-15, 2011-10 I.R.B.539 2011-17, 2011-10 I.R.B.540 2011-18, 2011-11 I.R.B.549 2011-19, 2011-11 I.R.B.550 2011-22, 2011-12 I.R.B.557 2011-23, 2011-13 I.R.B.588 2011-24, 2011-14 I.R.B.603 2011-25, 2011-14 I.R.B.604 Proposed Regulations: REG-140108-08, 2011-13 I.R.B.591 REG-149335-08, 2011-6 I.R.B.468 REG-146097-09, 2011-8 I.R.B.516 REG-153338-09, 2011-14 I.R.B.606 REG-124018-10, 2011-2 I.R.B.301 REG-131151-10, 2011-8 I.R.B.519 REG-131947-10, 2011-8 I.R.B.521 REG-132724-10, 2011-7 I.R.B.498 Revenue Procedures: 2011-1, 2011-1 I.R.B.1 2011-2, 2011-1 I.R.B.90 2011-3, 2011-1 I.R.B.111 2011-4, 2011-1 I.R.B.123 2011-5, 2011-1 I.R.B.167 2011-6, 2011-1 I.R.B.195 2011-7, 2011-1 I.R.B.233 2011-8, 2011-1 I.R.B.237 2011-9, 2011-2 I.R.B.283 2011-10, 2011-2 I.R.B.294 2011-11, 2011-4 I.R.B.329 2011-12, 2011-2 I.R.B.297 2011-13, 2011-3 I.R.B.318 2011-14, 2011-4 I.R.B.330 2011-15, 2011-3 I.R.B.322 2011-16, 2011-5 I.R.B.440 2011-17, 2011-5 I.R.B.441 2011-18, 2011-5 I.R.B.443 2011-19, 2011-6 I.R.B.465 2011-20, 2011-11 I.R.B.551 2011-21, 2011-12 I.R.B.560 2011-23, 2011-15 I.R.B.626 Revenue Rulings: 2011-1, 2011-2 I.R.B.251 2011-2, 2011-2 I.R.B.256 2011-3, 2011-4 I.R.B.326 2011-4, 2011-6 I.R.B.448 2011-5, 2011-13 I.R.B.577 2011-6, 2011-10 I.R.B.537 2011-7, 2011-10 I.R.B.534 2011-8, 2011-12 I.R.B.554 2011-9, 2011-12 I.R.B.554 2011-10, 2011-14 I.R.B.597 Treasury Decisions: 9507, 2011-3 I.R.B.305 9508, 2011-7 I.R.B.495 9509, 2011-6 I.R.B.450 9510, 2011-6 I.R.B.453 9511, 2011-6 I.R.B.455 9512, 2011-7 I.R.B.473 9513, 2011-8 I.R.B.501 9514, 2011-9 I.R.B.527 Treasury Decisions— Continued: 9515, 2011-14 I.R.B.599 9516, 2011-13 I.R.B.575 9517, 2011-15 I.R.B.610 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin 2010–52, dated December 27, 2010. April 11, 2011ii2011–15 I.R.B. Finding List of Current Actions on Previously Published Items 1 Bulletin 2011–1 through 2011–15 Announcements: 85-88 Obsoleted by Rev. Proc. 2011-10, 2011-2 I.R.B.294 2008-11 Modified by Ann. 2011-6, 2011-4 I.R.B.433 2009-62 Obsoleted by Rev. Proc. 2011-10, 2011-2 I.R.B.294 Notices: 2006-87 Superseded by Notice 2011-8, 2011-8 I.R.B.503 2007-25 Superseded by Notice 2011-8, 2011-8 I.R.B.503 2007-77 Superseded by Notice 2011-8, 2011-8 I.R.B.503 2008-107 Superseded by Notice 2011-8, 2011-8 I.R.B.503 2009-23 Modified by Notice 2011-24, 2011-14 I.R.B.603 2009-24 Modified by Notice 2011-24, 2011-14 I.R.B.603 2009-83 Modified by Notice 2011-25, 2011-14 I.R.B.604 2010-27 Superseded by Notice 2011-8, 2011-8 I.R.B.503 2010-59 Modified by Notice 2011-5, 2011-3 I.R.B.314 2010-71 Modified and superseded by Notice 2011-9, 2011-6 I.R.B.459 2010-79 Clarified and modified by Notice 2011-4, 2011-2 I.R.B.282 Proposed Regulations: REG-132554-08 Corrected by Ann. 2011-11, 2011-7 I.R.B.500 REG-149335-08 Hearing scheduled by Ann. 2011-26, 2011-14 I.R.B.608 Revenue Procedures: 72-50 Modified and superseded by Rev. Proc. 2011-10, 2011-2 I.R.B.294 76-34 Modified and supersed by Rev. Proc. 2011-10, 2011-2 I.R.B.294 83-23 Modified and superseded by Rev. Proc. 2011-15, 2011-3 I.R.B.322 94-17 Modified and superseded by Rev. Proc. 2011-15, 2011-3 I.R.B.322 97-27 Clarified and modified by Rev. Proc. 2011-14, 2011-4 I.R.B.330 2001-10 Modified by Rev. Proc. 2011-14, 2011-4 I.R.B.330 2002-28 Modified by Rev. Proc. 2011-14, 2011-4 I.R.B.330 2003-21 Modified and superseded by Rev. Proc. 2011-15, 2011-3 I.R.B.322 2004-34 Modified by Rev. Proc. 2011-14, 2011-4 I.R.B.330 Modified and clarified by Rev. Proc. 2011-18, 2011-5 I.R.B.443 2006-44 Modified by Ann. 2011-6, 2011-4 I.R.B.433 2006-56 Modified by Rev. Proc. 2011-14, 2011-4 I.R.B.330 2008-52 Modified by Notice 2011-4, 2011-2 I.R.B.282 Rev. Proc. 2011-17, 2011-5 I.R.B.441 Superseded in part by Rev. Proc. 2011-14, 2011-4 I.R.B.330 Revenue Procedures— Continued: 2009-39 Superseded in part by Rev. Proc. 2011-14, 2011-4 I.R.B.330 2009-44 Modified by Ann. 2011-6, 2011-4 I.R.B.433 2010-1 Superseded by Rev. Proc. 2011-1, 2011-1 I.R.B.1 2010-2 Superseded by Rev. Proc. 2011-2, 2011-1 I.R.B.90 2010-3 Superseded by Rev. Proc. 2011-3, 2011-1 I.R.B.111 2010-4 Superseded by Rev. Proc. 2011-4, 2011-1 I.R.B.123 2010-5 Superseded by Rev. Proc. 2011-5, 2011-1 I.R.B.167 2010-6 Superseded by Rev. Proc. 2011-6, 2011-1 I.R.B.195 2010-7 Superseded by Rev. Proc. 2011-7, 2011-1 I.R.B.233 2010-8 Superseded by Rev. Proc. 2011-8, 2011-1 I.R.B.237 2010-9 Superseded by Rev. Proc. 2011-9, 2011-2 I.R.B.283 2010-15 Updated by Rev. Proc. 2011-13, 2011-3 I.R.B.318 2010-18 Amplified and modified by Rev. Proc. 2011-21, 2011-12 I.R.B.560 2010-25 Obsoleted in part by Rev. Proc. 2011-23, 2011-15 I.R.B.626 2011-1 Corrected by Ann. 2011-7, 2011-5 I.R.B.446 2011-8 Corrected by Ann. 2011-8, 2011-5 I.R.B.446 1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin 2010–52, dated December 27, 2010. 2011–15 I.R.B.iiiApril 11, 2011 Revenue Procedures— Continued: 2011-11 Corrected by Ann. 2011-9, 2011-7 I.R.B.499 Revenue Rulings: 81-100 Modified by Rev. Rul. 2011-1, 2011-2 I.R.B.251 2004-67 Modified by Rev. Rul. 2011-1, 2011-2 I.R.B.251 2008-40 Modified by Rev. Rul. 2011-1, 2011-2 I.R.B.251 2011-3 Corrected by Ann. 2011-16, 2011-7 I.R.B.500 Treasury Decisions: 9391 Corrected by Ann. 2011-12, 2011-9 I.R.B.532 9505 Corrected by Ann. 2011-10, 2011-7 I.R.B.499 April 11, 2011iv2011–15 I.R.B. 2011–15 I.R.B.April 11, 2011 April 11, 20112011–15 I.R.B. 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