Attention Owners and Property Managers:
In response to the ongoing Coronavirus Disease 2019 (COVID–19) pandemic, the Internal Revenue Service issued Notice 2021- 12, which provides temporary relief from certain requirements under § 42 of the Internal Revenue Code (Code) and extends certain relief provisions previously granted under Notice 2020-53.
As authorized under the Notice, the Agency is granting the following relief, excerpted from the Notice below:
10% TEST FOR CARRYOVER ALLOCATIONS
For 2020 projects with a 10% test due by June 30, 2021, the deadline is now September 30, 2021.
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 September 30, 2021. The Owner must resume the income recertifications as due under § 1.42-5(c)(1)(iii) not later than October 1, 2021.
- 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 September 30, 2021. The Agency must resume compliance-monitoring inspections or reviews as due under § 1.42-5 not later than October 1, 2021.
- Compliance staff is continuing to review annual tax credit compliance and social services submissions for calendar years 2019 and 2020.
- 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 September 30, 2021, 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.