IRS Further Extends Relief from LIHTC and PAB Deadlines, Compliance Requirements Due to COVID-19
The Internal Revenue Service (IRS) will release a notice in Friday’s Internal Revenue Bulletin extending widespread temporary relief from certain requirements for low-income housing tax credit (LIHTC)-financed and private activity bond (PAB)-financed properties due to the COVID-19 pandemic. Notice 2022-05 extends previous relief for the 10% test for carryover allocations, the 24-month minimum rehabilitation period, the placed-in-service deadline, the reasonable period for restoration or replacement in the event of casualty loss, and agency correction periods. The notice also provides an extension to satisfy occupancy obligations. Concerning compliance, Notice 2022-05 provides an extension of the requirement for a 30-day notice for state agency reviews of tenant files through the end of 2022 and allows state agencies to defer physical inspections through June 30, 2022, with the option to extend that through the end of 2022 in consultation with local public health experts. The closure of amenities or common areas in LIHTC properties due to COVID-19 will not result in a reduction of eligible basis and essential workers may be provided emergency housing in LIHTC properties.
The ongoing effects of the pandemic on affordable housing will be discussed at the virtual Novogradac 2022 Affordable Housing Developers Conference, beginning Thursday.