The Internal Revenue Service is extending timelines for performing some of the actions associated with the low-income housing tax credit and bonds for qualified residential rental projects to give businesses more time during the COVID-19 pandemic.
The IRS issued
For some of the time-sensitive actions that are scheduled to be performed and requirements to be met on or after April 1, 2020 and before Dec. 31, 2020, owners and operators now have until Dec. 31, 2020 to perform the actions and satisfy the requirements.
In addition, between April 1, 2020 and Dec. 31, 2020, owners of qualified low-income housing projects aren’t required to perform some of the income recertifications or decrease the eligible basis in a building because of the temporary closure of an amenity or common area due to the novel coronavirus pandemic, and state agencies that have jurisdiction over the projects aren’t required to do compliance-monitoring.
On top of that, between April 1, 2020 and Dec. 31, 2020, owners and operators of such projects, issuers, and state agencies can treat medical personnel and other essential workers offering services during the COVID-19 pandemic as if they were “displaced individuals,” as defined in Rev. Procs. 2014-49 and 2014-50, and thus can provide emergency housing for them as described in revenue procedures.
More details about
An industry group, the Affordable Housing Tax Credit Coalition, welcomed the regulatory relief and predicted it would help keep low-income housing development on track during the pandemic. The group said the measures would address some of the obstacles to building and preserving affordable housing during the COVID-19 crisis, at a time when affordable housing is needed more than ever. The new IRS guidance will provide needed deadline extensions, compliance and review moratoriums, and added flexibility to address some of the challenges that have emerged, such as social distancing policies.
“Prior to the COVID-19 crisis, nearly 11 million renter households were spending more than half of their income on rent, and now millions more are facing economic hardship, compounding the need for affordable housing,” said AHTCC executive director Emily Cadik in a statement Thursday. “These flexibilities will allow us to keep developments moving forward more efficiently so the Housing Credit can continue to provide homes to those in need.”
The group pointed out that the IRS guidance includes many of the
“We thank the IRS for recognizing the immediate need for greater flexibility on behalf of providers of affordable housing and the low-income families we serve,” said Michael Gaber, president of the AHTCC board of directors and executive vice president of WNC, Inc., in a statement Thursday. “These are common-sense measures that will have a significant impact as we work to provide homes across the country.”
The AHTCC is asking for further relief in a set of legislative proposals and national affordable housing
