Attention Owners and Property Managers:
In response to the ongoing Coronavirus Disease 2019 (COVID–19) pandemic, the Internal Revenue Service issued Notice 2020-53, which provides temporary relief from certain requirements under § 42 of the Internal Revenue Code (Code).
As authorized under the Notice, the Agency is granting the following relief, excerpted from the Notice below:
GRANT OF RELIEF PURSUANT TO §1.42-13(a)
A. INCOME RECERTIFICATIONS
An Owner of a low-income building is not required to perform income recertifications under § 1.42-5(c)(1)(iii) in the period beginning on April 1, 2020, and ending on December 31, 2020. The Owner must resume the income recertifications as due under § 1.42-5(c)(1)(iii) after December 31, 2020.
- Please note that this relief applies only to income Recertifications for the Low Income Tax Credit (LIHTC) program. Other funding sources may have different requirements. Move In and Initial Tenant Income Certifications (TICs) are still required as well as student status verifications.
For purposes of § 1.42-5, an Agency is not required to conduct compliance-monitoring inspections or reviews in the period beginning on April 1, 2020, and ending on December 31, 2020. The Agency must resume compliance-monitoring inspections or reviews as due under § 1.42-5 after December 31, 2020.
All file audits and physical inspections that were not yet completed in 2020 have been cancelled. Compliance staff is continuing to review annual tax credit compliance submissions for calendar year 2019 and expects that annual compliance letters will be issued before year-end.
- Please be advised that this relief only applies to the Agency and does not absolve owners or managers from compliance during this time of suspended audits/ inspections.
C. COMMON AREAS AND AMENITIES
If an amenity or common area in a low-income building or project is temporarily unavailable or closed during some or all of the period from April 1, 2020 to December 31, 2020, in response to the COVID-19 pandemic, and not because of other noncompliance for § 42 purposes, this temporary closure does not result in a reduction of the eligible basis of the building.
- Please note this does not apply to laundry facilities and computer rooms; however, limitations for use and social distancing protocols should be in place.
The relief granted in this bulletin is subject to any superseding guidance issued by the Department of the Treasury or the Internal Revenue Service.