LIHTC PROPERTIES MAY RENT VACANT UNITS TO HOUSEHOLDS DISPLACED BY SO. CALIF. FIRES

Saturday, October 27, 2007 - 7:45AM

The California Tax Credit Allocation Committee (TCAC) yesterday published a memo to inform owners of low-income housing tax credit (LIHTC) properties of the disaster relief procedures issued by the Internal Revenue Service (IRS) earlier this year. In Revenue Procedure 2007-54, the IRS establishes a procedure for temporary relief from certain requirements of Section 42 of the Internal Revenue Code (IRC) for owners of LIHTC buildings and LIHTC agencies of states or possessions of the United States in major disaster areas declared by the president. On October 24, President George W. Bush declared a major disaster exists in California and ordered federal aid to supplement state and local recovery efforts in Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura counties. Under Rev. Proc. 2007-54, property owners are allowed to temporarily rent vacant LIHTC units to qualified low-income households and may rely on a displaced low-income individual's self-certification of income. TCAC says that owners may also elect to give priority to disaster-affected low-income households, if they so choose.

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