The premise
behind the Colorado Association of Realtors Housing
Opportunity Foundation (CARHOF) is that interest can be earned
on real estate trust accounts in Colorado if the money is used
for affordable housing projects in the State in a manner
approved by the Colorado Real Estate Commission. CARHOF was
set up to provide a vehicle for funding of community-based
affordable housing projects from trust account interest.
For the
convenience of the financial institutions, the bank enrollment
and reporting procedures have been set up in a similar manner
to the attorneys’ foundation (COLTAF) with which most banks
are familiar. Unlike COLTAF, CARHOF is completely
voluntary.
In order to
qualify, both the Realtor who owns the trust account and the
bank where the account is maintained must agree to participate
by filling out the appropriate enrollment forms. The name of
the account at the bank should be changed to indicate that
CARHOF is an "interest beneficiary only" (IBO) and
CARHOF’s federal tax identification number (84-1152732)
should be used on the account for reporting interest.
Example:
The
account: |
|
Became: |
|
|
The
Cottage Realty
K Cook Brkr/Sales Trust Acct
PO Box 1020
Berthoud, CO 80513
Cottage Tax ID# |
|
CARHOF(IBO)Cottage
Realty
K Cook Brkr/Sales Trust Acct
PO Box 1020
Berthoud, CO 80513
84-1152732
(CARHOF Tax#) |
And: |
|
Became: |
|
|
The
Cottage Realty
K Cook Brkr/Sec Dep Trust
PO Box 1020
Berthoud, CO 80513
Cottage Tax ID# |
|
CARHOF(IBO)Cottage
Realty
K Cook Brkr/Sec Dep Trust
PO Box 1020
Berthoud, CO 80513
84-1152732
(CARHOF Tax#) |
|