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: https://tinyurl.com/y8ods6wh