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IRS RELEASES DISASTER HOUSING GUIDANCE

Tuesday, November 6, 2012 - 8:00AM

The Internal Revenue Service (IRS) today released Notice 2012-68, which provides additional details about yesterday’s announcement that certain requirements of the low-income housing tax credit (LIHTC) program will be temporarily suspended to expand disaster housing availability. Under the notice, state housing agencies may approve LIHTC property owners in their respective states to provide temporary emergency housing for displaced individuals. This approval may be given to properties in any state, regardless of whether a major disaster declaration has been issued for that state as long as the displaced individual being housed in the LIHTC property resided in a jurisdiction designated for Individual Assistance and was displaced because his or her residence was destroyed or damaged as a result of the devastation caused by Hurricane Sandy. Displaced individuals temporarily occupying vacant units will not be treated as low-income tenants; however, the IRS said it will continue to treat the units as vacant and owners are not required to attempt to rent them to low-income individuals during the temporary housing period. State agencies will determine the period of temporary housing for each property, not to extend beyond Nov. 30, 2013.

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