TREASURY TO AMEND SECTION 1602 DISBURSEMENT DEADLINE

Friday, August 28, 2009 - 8:00AM

An interim final rule scheduled for publication on August 31 will amend the Treasury Department’s policy regarding the time limitation within which state housing credit agencies must disburse funds received under Section 1602 of the American Recovery and Reinvestment Tax Act of 2009. The Treasury Department says it has determined that the requirement that state agencies must disburse Section 1602 low-income housing tax credit (LIHTC) exchange program funds by Dec. 31, 2010 is overly restrictive and may preclude funding of otherwise eligible projects that may not reach final completion by the end of 2010. Therefore, an interim final rule will be published in the August 31 Federal Register that will allow state housing credit agencies, under certain conditions, to disburse exchange program funds to subawardees through Dec. 31, 2011.

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