The Internal Revenue Service (IRS) on July 2 provided COVID-19-related tax compliance relief for projects funded by Low-Income Housing Tax Credits (LIHTC) and exempt facility bonds. Specifically, Notice 2020-53:
- Suspends to December 31, 2020, certain time-sensitive actions and requirements that must be performed or met between April 1, 2020, and December 31, 2020. These include the 10-percent test for carryover allocations and the 24-month minimum rehabilitation expenditure period, among others;
- Suspends income recertifications and compliance-monitoring inspections or reviews until after December 31, 2020. Additionally, projects do not need to reduce basis to account for amenities closed during some or all of the period between April 1, 2020, and December 31, 2020, due to COVID-19-related reasons; and
- Enables medical personnel and other essential workers to be treated as Displaced Individuals and receive emergency housing between April 1, 2020, and December 31, 2020.
NMHC on April 8 joined other organizations to endorse a National Council of State Housing Agencies letter requesting many of these beneficial changes.
For more information on LIHTC, please visit the NMHC Advocacy webpage. For additional updates on actions related to COVID-19, visit the NMHC COVID-19 Hub.
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