IRS to Publish Final Regulations for Amended LIHTC Compliance Monitoring Regulations

Friday, February 22, 2019 - 2:15pm

The Internal Revenue Service will publish in Tuesday’s Federal Register final regulations to amend compliance monitoring regulations for low-income housing tax credit (LIHTC) properties concerning physical inspections and the review of documentation. The regulations adopt temporary regulations published Feb. 25, 2016. The final regulations provide that the minimum number of units that must undergo physical inspection is the of low-income units listed in the reference chart in  Rev. Proc. 2016-15. The state housing agency can choose different units for physical inspection and for low-income certification review, as long as both meet the minimum. The requirement that all buildings in a low-income property be inspected is amended to include that if the randomly selected minimum number of low-income units doesn’t include every building, some aspect of each omitted building must be inspected. Inspections must begin by the end of the second calendar year following the year the property is placed in service and continue at least every three years thereafter.