IRS Publishes COVID-19 Guidance on Low-Income Housing Tax Credit

The IRS issued Notice 2020-53 on July 1 providing COVID-19-related guidance impacting owners and residents of Low-Income Housing Tax Credit developments.

The notice addresses various deadlines for LIHTC properties, including:

  • Extending the deadline for an owner of a building with a carryover allocation to meet the 10 percent test
  • Extending the minimum rehabilitation expenditure period
  • Extending the reasonable restoration period in the event of casualty loss or prior major disaster
  • Extending the transition period to meet the tax-exempt bond set-aside
  • Extending the tax-exempt bond rehabilitation expenditure period
  • Suspending the owner requirement to perform tenant income recertifications
  • Suspending the Housing Credit allocating agency requirement to conduct compliance monitoring inspections or reviews
  • Allowing temporary closure of property amenities or common areas in response to the COVID-19 pandemic without resulting in a reduction of the eligible basis of the building
  • Allowing medical personnel or other essential workers providing services during the COVID-19 pandemic to temporarily occupy Housing Credit units

Read the IRS Notice at: