Attention Developers:
As a result of the Presidential declaration of a major disaster for the State of New Jersey (FEMA-4488-DR, COVID-19 pandemic), NJHMFA (“Agency”) is permitted to grant temporary relief from certain requirements of §42 of the Internal Revenue Code to affected owners.
As outlined in
IRS Revenue Procedure 2014-49
, the Agency is granting two forms of relief to all owners of 9% Low Income Housing Tax Credit (LIHTC) properties with
2018 and 2019
credits.
10% Test:
The deadline to submit evidence that 10% requirement of §42(h)(1)(E)(ii) was met is now
12 months
after the date the carryover agreement was signed.
Placed-In-Service Deadline:
The deadline to place affected projects in service has been extended by 12 months following the end of the two-year period described in §42(h)(1)(E)(i).
Projects with 2018 Credits: Deadline is now
12/31/21
Projects with 2019 Credits: Deadline is now
12/31/22
This relief applies to projects with 2018 and 2019 credits only; please note that those credits years do not necessarily coincide with the year the tax credits were awarded. Additionally, these deadlines do not apply to projects with 4% tax credits. Owners may refer to their signed carryover agreements or contact the Tax Credit division to confirm the credit years for their projects. Prior to the end of the year, the Agency’s Tax Credit Division will contact each affected owner individually to confirm the applicability of the relief provisions above.
The relief granted in this bulletin is subject to any superseding guidance issued by the Department of the Treasury or the Internal Revenue Service.
