IRS Extends Housing Credit and Bond Deadlines and Provides Other Guidance On COVID-19
On July 1, 2020, the Internal Revenue Service published Notice 2020-53 providing temporary relief to owners and residents of housing credit and tax-exempt bond-financed developments in response to the COVID-19 pandemic. The guidance is effective immediately. Specific provisions of the notice include:
• Suspending the owner requirement to perform tenant income recertifications for the period beginning April 1, 2020, and ending December 31, 2020 (e.g. A recertification that is due on October 1, 2020, does not have to be performed. The next recertification will be due on October 1, 2021);
• Allowing temporary closure of property amenities or common areas during the period from April 1, 2020, to December 31, 2020, 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 in accordance with the emergency housing provisions of IRS Revenue Procedures 2014-49 and 2014-50 (Owners and operators of housing tax credit developments may treat these individuals as if they were Displaced Individuals under these two revenue procedures);
• Extending the reasonable restoration period in the event of casualty loss or prior major disaster to December 31, 2020, if the original deadline was on or after April 1, 2020, and before December 31, 2020
• Extending the transition period to meet the tax-exempt bond set-aside to December 31, 2020, if the original 12-month period ended on or after April 1, 2020, and before December 31, 2020.
If you plan to house medical personnel or other essential workers providing services during the COVID-19 in accordance with the emergency housing provisions of IRS Revenue Procedures 2014-49 and 2014-50, specific instructions and the applicable forms will be provided upon request. Should you have any questions, please contact Alisha Chandler, Assistant Vice President of Program Compliance at alisha.chandler@mshc.com.