IRS Extends Temporary Relief for LIHTC Properties due to COVID-19 Pandemic

Friday, January 15, 2021 - 2:45pm

The Internal Revenue Service (IRS) today issued a notice extending temporary relief for low-income housing tax credit (LIHTC) properties from COVID-19-related difficulties and providing new relief. Notice 2021-12 extends certain deadlines in previous notices from Dec. 31, 2020. Among the extensions are the 10% test for carryover allocations and the 24-month minimum rehabilitation expenditure period, both of which are extended until Sept. 30. The deadline for income recertifications and compliance monitoring is extended until Oct. 1 and the placed-in-service deadline is extended to Dec. 31. Qualified allocation plan meetings may be held by telephone through Sept. 30 and medical personnel or other essential workers who provide services during the pandemic may receive emergency housing in LIHTC properties through Sept. 30. The notice extended or created several other deadlines.

The COVID-19 pandemic and affordable housing will be a theme at the Novogradac 2021 Affordable Housing Conference April 29-30. Novogradac offers extensive LIHTC services.